COGEN Europe » Emissions Trading & CHP Working Group

Version 3 of draft allocation rules under revised EU ETS Directive

thomas — Tue, 27 Jul 2010 09:28:17 +0000

This document is the latest draft to come out of DG Climate Action with regards to the secondary legislation under the revised EU ETS Directive.

It describes in further detail the draft allocation rules that will apply to installations covered by the EU ETS.

BM allocation rules 100720 V3 00 clean_sent to MS and SH

Minutes of meeting with DG CLIMA on Monday 12th April on Art 10a4

thomas — Tue, 13 Apr 2010 15:17:51 +0000

Meeting with DG CLIMATE ACTION_Recap

Joint Letter sent to DG Climate Action on EU ETS Article 10a4

thomas — Tue, 13 Apr 2010 15:16:53 +0000

Joint Letter on EU ETS Art 10a4 version 8 April

EU ETS Allocation rules process

thomas — Mon, 29 Mar 2010 08:25:02 +0000

This Power Point presentation was delivered by DG Climtae Change at the ECCP’s EU ETS Working Group meeting on 17th March 2010. It describes the next steps leading up to the adoption of the Community Implementing Measures, notably on allocation of free allowances.

EU ETS process March 2010

Latest documents from Ecofys and the Commission on Benchmarking under the EU ETS

thomas — Wed, 11 Nov 2009 15:48:51 +0000

Ecofys has published its final benchmarking study for DG Environment. At the same time, the Commission has prepared a 9-page Implementing paper which effectively lays out the specific approaches to be used for allocating allowances under the revised EU ETS Directive.

Both texts are of high significance to industrial cogenerators. The key elements from a CHP perspective are:

allocation of allowances to the heat USER in instances of cross-boundary flows of heat (see both documents, in particular section 6.1 of Ecofys report for the rationale behind the choice of this option)
“at least” 93% efficient natural gas boiler as reference for the heat benchmark (see Implementing Paper)

Paul Gardiner presentation on the revised EU ETS and proposed Ecofys allocation methodologies

thomas — Tue, 20 Oct 2009 15:15:19 +0000

In this excellent presentation, Paul Gardiner interprets the text of the revised EU ETS Directive from a CHP perspective and sheds light on the different options being considered by ECofys in the draft report on allocation methodologies which will be submitted to DG ENV.

ECOFYS Draft Consultation Paper on “Free allocation methodology for the ETS post 2012″ – 19 MAY 2009

tanya — Wed, 27 May 2009 11:57:55 +0000

This Ecofys report is the first available draft of the study on a proposed allocation methodology for free allowances due at the end of September 2009.

This document is open for written comments until 1 July 2009.

090519-approach-and-general-issues

Full version of ECOFYS study on Benchmarking criteria

thomas — Wed, 25 Feb 2009 16:18:44 +0000

Final Ecofys Report (090219)

Besides setting 11 principles that will guide the drafting of the community-wide benchmarks, the Ecofys study assesses benchmarking for several sectors and includes a chapter on “Allocation for Heat” (chapter 5, pages 47-56) which focuses on CHP.

While the authors seem to favour using the reference values for separate production under the CHP Directive to derive the allocation methodology for heat, the report does not take a strong stance on this issue.

The section on “Allocation for Heat” goes on to discuss the issues of (a) heat flows between installations and (b) heat consumption by non-benchmarked products.

Benchmarks for free allocation: timeline for adoption

thomas — Wed, 25 Feb 2009 15:56:45 +0000

The EU ETS Directive (2003/87/EC) was revised on 17 December 2008. The amended Directive contains a range of measures to be adopted by the Commission after agreement by the Member States (through so called comitology procedure). One of the most important measures requires the Commission to define fully harmonised rules for free allocation of CO2 allowances, which should be based – to the extent feasible – on benchmarks.

The amended Directive gives some indications on how to determine the benchmarks. Article 10a(2) reads:

“In defining the principles for setting ex-ante benchmarks in individual sectors or sub-sectors, the starting point shall be the average performance of the 10% most efficient installations in a sector or sub-sector in the Community in the years 2007-2008. The Commission shall consult the relevant stakeholders, including the sectors concerned.”

The final benchmarks will be determined also taking into account other important considerations referred to in Article 10a(1) of the amended Directive.

The Commission shall adopt the benchmarks by 31 December 2010. Main steps in the process will include:

Informal technical working group, 1st meeting	13 February 2009
Data collection and further work of consultants	spring 2009
Stakeholder consultation (only for invited stakeholders)	30 March 2009
Informal technical working group, 2nd meeting	16 April 2009
Stakeholder consultation (only for invited stakeholders)	(tbc) 27 April 2009
Stakeholder consultations (both “bilateral” and “multilateral” consultations with industry sectors and NGOs) Informal technical working group meetings	autumn 2009-spring 2010
Draft benchmarks	spring 2010
Draft decision to Member States	September 2010
Adoption	December 2010

This timetable will be updated regularly.

The Commission has contracted a consultant (Ecofys, in cooperation with Fraunhofer Institute for Systems and Innovation Research, and Öko-Institute) to further develop the knowledge base to be used in setting the EU wide benchmarks. Industry associations representing installations covered by the ETS are encouraged to contact and cooperate with the contractor in the process of data collection and development of benchmarks.

Based on a recent exchange of emails, the work on sectoral benchmarks, including benchmarks for heat, are kicking off on Thursday (25th February).