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SEWEA conference - Clemens Plochl


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Prezentacija Klemensa Plohl, rukovodećeg partnea Energy Changes sa Prvog međunarodnog sipmozijuma "Životna sredina i energetika - Šta čeka Srbiju" - 2. mart 2012.

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SEWEA conference - Clemens Plochl

  1. 1. "Environment and Energy: What Lies Ahead for Serbia” Carbon Trading and Carbon Future (Belgrade, 2012/03/02) Clemens Plöchl
  2. 2. Carbon Trading Carbon Trading BackgroundPrice = p SMC Reducing external effects of Climate Change? PMC´ PMC Internalization of negative external effects p2 t = tax on environment p1 t = tax Tax (Pigou): internalizing external effects by increasing prices of SMB (polluting) products by tax q2 q1 Quantity = qPrice = p SMC PMC´ Standard/Price Approach PMC Regulatory Body sets goal/target p2 t = tax (see Q2 !!) based on science p1 (environment/technological/econo t = tax mical) and then either sets tax or implements Cap and Trade SMB Q2 q1 Quantity = q
  3. 3. Carbon Trading Cap and Trade Design Components • Commodity (currency of the system e.g. 1t CO2e) • Cap/Target (determining the „optimal“ quantity of pollution) • Coverage (geographical, upstream – downstream, size of installation, sectors) • Allocation Rules (grandfathering, benchmarking, auctioning;) Windfall Profits Carbon Leakage • Banking/Borrowing (banking to coming periods, borrow. from coming p.) • Trading Period • Monitoring/Verification • Administrative Bodies
  4. 4. Carbon Trading
  5. 5. Carbon Trading Cap and Trade in the EU Short History1997 Kyoto Protocol to the UNFCCC – developed countries obtain a cap on their emissions1990s first proposals for carbon emission trading2000 “Green paper” Emission trading2001 proposal of the Commission2003 EU Directive on Emission Trading accepted. Free allocation embraced as allocation mechanism that would minimize harm for companies involved in the scheme. Companies agree with this2005-2007 first period: trial and error2008-2012 second period: creating a non-zero price2013 – 2020 third period: greater emphasis on harmonized allocation rules, auctioning and inclusion of aviation;(2016) mid-term review
  6. 6. Carbon Trading Cap and Trade in the EU Kyoto eg. Austria: eg. Slovakia: AAUs AAUs has 66 Mio t AAUs has 69 Mio t needs 88 Mio t needs 49 Mio t EU ETS Industry Energy sector gets 30 Mio t EUAs EUAs gets 32 Mio t needs 32 Mio t needs 25 Mio t
  7. 7. Carbon Trading Price History EU ETS Source: Point Carbon
  8. 8. Carbon Trading Impact of EU ETS on Serbian Energy Sector• ETS will not affect the competitive position of current generation companies in Serbian market.• ETS costs in power sector will be passed fully to the consumers or socialized• Energy Intensive Industry may suffer competiveness• ETS alone will not deliver expected Source: Mid-term Kyoto Protocol Implementation Plan in the Serbian Energy Sector mitigation results unless accompanied by other changes in the sector and outside the sector.
  9. 9. Carbon Future Source: Presentation EU Commission
  10. 10. Carbon Future Potential Development of Future Carbon Markets Source: Presentation EU Commission