WP5 Polygeneration and the EU ETS


Overview:
Due to the EU emissions trading scheme (EU ETS) approximately 12,000 energy intensive installations across the EU-25 must monitor their carbon emissions and surrender an equivalent number of allowances to the national authorities. Although virtually all CO2 emission allowances have been distributed for free, they have a real value and, hence, influence the competitiveness of single installations. The allocation of allowances to existing installations and new entrants takes place at the national level. The Emissions Trading Directive only foresees that “the manner in which clean technology, including energy efficient technologies, are taken into account” needs to be reported to the European Commission. Preliminary studies on this subject suggest that the extent to which Member States have harnessed the EU ETS for the promotion of polygeneration differs substantially so far. This WP will deliver an analysis on how to more effectively use the steering power of the EU ETS for achieving related policy objectives, such as the promotion of industrial polygeneration. The need for such an analysis has been articulated by The European Commission’s DG TREN in its Green Paper on energy efficiency and subsequent policy documents.  

Tasks:

  1. A review of the treatment of cogeneration in phase-1 and phase-2 national allocation plans (NAPs) across the EU-25. This includes the analysis of allocation rules for incumbent installations and for new entrants. The work done by COGEN Europe through its EU Emission Trading Scheme Working group (at least 2 annual meetings) will be used for this task. Bidirectional flows of information between the D-ploy WP and the COGEN Europe WG will allow for an in-depth review and comparison.

  2. An identification of best practices among Member States and the creation of recommendations for policy-makers at the European and national level.