ENVIRONMENTAL DIMENSION OF THE EEP
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Filip Černoch černoch @mail.muni. cz
Climate Change
CCS
Renewables Biofuels
Energy efficiency Technology and inovation
• • •
https: / / www.voutube.com/watchPv— 6yiTZm0yl YA
it is a significant and lasting change in weather patterns over periods of time ranging from decades to milions of years. It may be a change in average weather conditions or it could be connected to more or fewer extreme weather events. Sometimes also the results of human activity are included, but not necessarily.
Caused by:
Global warming
the rise in the average temperature of Earth's atmosphere and oceans since the late 19th century and its projected continuation. Since the early 20th century, Eath's temperature has increased by about 0,8 °C, with about two-thirds of the increase occuring since 1980.
Caused by.
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Solar Radiation absorbed by Earth 235 W/m2
168
Thermal radiation into space: 195
Directly radiated from surface: 40
Greenhouse gas absorption: 350
Heat and energy in the atmosphere
324
Earth's land and ocean surface warmed to an average of 14°C
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Source of data: Boden, T.A., C. Marland, and R.J. Andres (201 0). Global, Regional, and National Fossil-Fuel CO^ Emissions. Carbon Dioxide Information Analysis Center, Oak Ridge National Laboratory, U.S. Department of Energy, Oak Ridge, Tenn., U.S.A. doi 1 0.3334,'CDIAC 00001 _V201 0.
Chart 1.2. GHG Emission 1990-2011 [Oliver JGJ, Janssens-Maenhout G and Peters]
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Melting of glaciers — Northwest passage
Up to 90 bn barels of oil and 45 bcm of natural gas in Arctic Ocean.
Rising of a sea level, changes in weather patterns — climate refugees,
Impact at the first place on the third world crop failure, lack of drinking water, illnesses____
Wars forwater and natural resources.
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Intergovernmental Panel on Climate Change - 1988.
= to provide comprehensive scientific assessments of current scientific, technical and socio-economic information about the risk of climate change, its potential environmental and socio-economic consequences and possible options for adaptin to these consequences or mitigating the effects.
Rio Summit on Earth - 1992
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UNFCCC
- 1997, in force 2005
- Existence of a generally accepted consensus on the climate change as well as the role of man in this process.
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Source: wiki
GHG (carbon dioxide, methane, nitrous oxide, sulphur haxafluoride) + hydrofluorocarbons and pefluorocarbons.
nnex I. countries (37 industrialized countries + EU15), Non-annex I. parties.
Reducing of GHG emissions by 5,2 for the period of 2008-2012. (4,2 after USA left). Base year 1990.
lexible mechanisms — Emission trading, CDM, JI.
□ Common but differentiated responsibility
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"The needs of the environment are coming together with the needs of the EU: one is a cause looking for a champion, the other a champion in search of a cause.
D.Miliband, UK environmental secretary,2006 Environmental awarenes
Preemptive environmental measures EU well equipped to adress the problem Common market
/30r (THU) Community tolicy on the
Source: D. Buchán, OIES
Raison d'etre
environment.. .shall be based on the precautionary principle and on the principles that preventive action should be taken, that environmental damage should as a priority be rectified as source and that the polluter should pay".
Federal Government imposes a carbon tax polluting industries
Industry adds the extra cost onto the price of their products so high pollution goods become more expensive to buy
3 A portion of the tax money collected is used to comensate low Income households for the price rises
5 Consumers prefer to buy low pollution products now because they are cheaper and household
emmisslons decrease.
industry has a financial incentive to reduce carbon emmissions now
4 Low pollution products become cheaper because their prices do not include the pollution tax increase
4
A portion of the funds from the carbon t ax are used for research to create green industries with new lobs.
8 carbon emmlsaons fall both in homes and industry without lobs losses
Adapted from ABC News • Carbon pricing explained I it \ p: //www abc.net. au/ne ws/event s/climat e-cfwmge/c arbot *"p*l<ing-*xpia«ned.M m
Central authority ... sets a limit .. .on the amount of pollutant to be emitted ... the cap is sold/allocated .... as permits ....companies are required to hold those permits .. .if they need to increase this volume.. .have to buy those premits.
= the buyer is paying a charge for polution = he is motivated to invest in less-poluting technologies.
How the system works?
It creates a dynamic monetary incentive so companies can sell their allowances to other producers and make profit
This incentives are based on real needs (scarcity) of allowances and on adequate monitoring and enforcement
This systém (at least in theory) offer certainity of emission reduction corresponding to the stringency of the cap.
Unlike domestric schemes effective international systems are more difficult to establish
Even a well-designed system is not to work if it is not implemented correctly by the participants in the system (MS).
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1988 EC's communication „The Greenhouse Effect and the Community"
1998 EC's communication „Climate Change - Towards an EU post-Kyoto strategy"
1999 EC's communication „Preparing for Implementation of the Kyoto Protocol"
2001 - EU ETS legal preparation launched, approved in 2003.
Designated the first period from 1.1.2005 to 31.12.2007, covering about 11.500 facilities in 25 MS = 45% CQ2 emitted in the EU.
EU firstly highly sceptical about international emission trading.
See the very concept morally wrong - trading authorizes pollution, turning it into commodity to be bought and sold
Questionable with regard to equity - that the richer industrialized countries can buy their way out of their obligations instead of lowering their disproportionate consumption of scarce sources
But - change in the possition of the U.S. placed the EU in the forefront of the climate change movement
Problems with the decentralised system of distribution Drop in the prices of allowances Very limited impact on emissions of GHG
Difficult calculations due to: Proneness to cheating Changing level of industrial production
Changes in energy prices Increasing deployment of RES
Permit stockpiling Weather
The supply of permits associated with other EU targets
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I Figure 2: EU ETS emissions allowance prices: April 2005 - December 2009 JAN 2006 JAN 2007 JAN 2008
JAN 2009
-Phase I (2005-2007) —Phase II (2008-2012)
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Country	Mil. EUA	Share of the overal amount of EUA	Number of incl. facilities	The aim of Kyoto
Belgium	188,8	2,9	363	-7,5
Czech Republic	292,8	4,4		-8
Denemark	100,5	1,5		-21
Estonia	56,85	0,9		-8
Finland	136,5	2,1	535	0
France	469,5	7,1	1 172	0
Ireland	67	1	143	+13
Italy	697,5	10,6	1 240	-6,5
Cyprus	16,98	0,3	13	
Luxembourg	10,07	0,2	19	-28
Lithuania	36,8	0,6	93	-8
Latvia	13,7	0,2		-8
				
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Considerably stricter approach of EC Relativelly stable price of allowances res sure to change the whole system
Nearly all 25 EUMS did not meet the 30 June 2006 deadline for the submission of the secondphase NAPs (only Estonia was on time). Preinfringement letters were sent by the EC to 14 MS, namely Austria, Belgium, Cyprus, the C^ech Republic, Denmark, Finland, Hungary, Eatvia, Malta, the Netherlands, Portugal, Slovenia, Slovakia and Sweden.
-Phase I (2005-2007) -Phaidl (2O08-2Q12)
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Increased coverage of GHG and activites — from 40 to 43 % of emissions
EU-wide emission cap to replace national allocation plans
Single and cetnral registry instead of national registries
Auctioning of permits, with more than 50 % being sold (compare to 5 % in previous phases).
Common auctioning platform for the sale of permits (save Germany, UK, Poland)
Distribution of auction revenues (88 % to MS, 10 to MS with low per capita income and 2 % to MS that had achieved a 20 % emission reduction in their Kyoto protocol base by 2005)
End of free permits to the power sector of most MS (drogation)
An expanded list of restrictions on the use f credits from the CDM.
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] Derogations:
countries, producing more than 60% of their electricity from coal or poorly interconnected to European grids could provide up to half of the allowances in energy sector freely
Results?
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EU ETS sector emissions (million metric tons C02)f emissions caps, and EU GDP, 1990-2015
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20 m 2015 EU SDP (SMQ*. trillion)
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Carbon leackage
Problem of companies moving out of the EU
May the EU pass the higher (power) costs on to customers without losing market share in relation to the companies without such costs to bear?
Cheating
] Surplus of 900 mil. EUA. And is groing due to three sources:
I+the selling of left-over allowances in national phase 2 new entrant reserves + early auctioning to meet sector hedging demand + the forward selling of phase 3 allowances to generate funds for the NER300 programme = total surplus of approx. 1,5 — 2 bn EUA ackloading: delaying the auctioning of emission allowances intended to be allocated in 2013-2015 until 2018-2020
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: Estimated total liability for participants under selected existing emissions trading schemes, 2015 (MtC02e)
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Quebec       Pilot Chinese regional ETSs
Trade in emissions permits, 2010 to 2012
Permit type	Volume (Mt c02e)			Value ($A million)		
	2010	2011	2012	2010	2011	2012
EUA	5,172	6,057	7,478	103,688	102,741	67,854
CER	1,508	2,012	2,408	25,934	23,926	7,604
ERU	59	101	574	731	962	1,126
AAU	63	69	119	663	545	187
North America	189	100	130	526	297	715
New Zealand	8	10	8	130	142	37
Australia	-	-	0.3	0	0	7
Other	35	25	-	297	157	0
Total	7,035	8,373	10,717	131,968	128,772	77,531
Note: EUA = EU Allowance, CER = Certified Emissions Reduction, AAU = Assigned Amount Unit, ERU = Emission Reduction Units.
Source: Point Carbon, 'Carbon market monitor: A review of 2012', 7 February 2013. Australian dollar value estimated by the Parliamentary Library based on average exchange rate data for each year as published by the Reserve Bank of Australia
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Map showing countries with an ETS and their populations
Source: Map generated by the Parliamentary Library; sources for population data: CIA World Factbook and census data for US, Canada and Japan.