Sara Stefanini provides a written summary of our panel discussion held on 31st March 2022, âOptions to Reform the EU ETSâ. Itâs a full summary of the 90 minute discussion (with a link to the video), but it begins conveniently with a summary of the highlights, leading with the role of financial players, who they are, the causes of price volatility, what reforms can create stability, and the cost of decarbonisation. The main concern is speculation … [Read more...]
Russia-Ukraine crisis: reforming the EU ETS is a matter of energy security, says PGE
European leaders are now rushing to make decisions on how to drastically cut dependence on Russian fossil energy imports. Russiaâs invasion of Ukraine has exposed Europeâs energy security vulnerabilities like nothing else could have. It also means Europeâs clean energy transition will need an overhaul, and a newly designed optimal pathway created, and fast. Wojciech DÄ browski, President at PGE Polska Grupa Energetyczna, explains that it must also … [Read more...]
Germany suspends Nord Stream 2: Q&A on what happens next
Following Russiaâs invasion of Ukraine, Germany has suspended the go-ahead of the switch-on of Nord Stream 2, the new pipeline for Russian gas imports. What does this mean for the pipeline and Germanyâs â and the EUâs â energy strategy? With events moving so rapidly, the full picture cannot be clear. So Kerstine Appunn, Benjamin Wehrmann and Julian Wettengel at Clean Energy Wire raise the big questions and summarise the answers being given. Those … [Read more...]
EU Taxonomy: labelling Gas âgreenâ is a gift to Putin
Many of todayâs clean energy technologies were given their first boost in the wake of the 1973 oil crisis, explains William Todts at T&E. He now hopes the current confrontation between NATO and Russia over Ukraine will shake up and deepen Europeâs commitment to the energy transition. But entirely the wrong signal was sent over the New Year, says Todts. He describes the European Commissionâs inclusion of gas in the EU Taxonomy for sustainable … [Read more...]
Intelligent, flexible Sector Coupling in cities can double the potential for Wind and Solar
This week the European Commission tabled the Energy Performance of Buildings Directive (EPBD) which should accelerate the decarbonisation of buildings. Buildings and cities play a key role in the energy transition. And the target high shares of variable renewable power supply will be much more easily achieved if the sectors using them display demand flexibility. In essence, that means using or storing the excess wind and solar generation … [Read more...]
Electricity Market Reform: ACER must empower consumers, not just network operators
ACER, the EU Agency for the Cooperation of Energy Regulators, has delivered to the EC its preliminary assessment of Europe's high energy prices and the current wholesale electricity market design. Simon Skillings and Lisa Fischer at E3G interpret ACERâs assessment as showing it wants to maintain the status quo. However, long-term changes in market design are inevitable. The authors want ACER to accept this reality and ensure the changes are … [Read more...]
COP26: a strategy for tackling âimported deforestationâ
Palm oil, beef, cocoa, coffee, soy, and other agricultural products are responsible for deforestation in the producing countries. Of the 10m hectares of tropical forest lost each year, two-thirds can be unambiguously attributed to agricultural expansion and international trade is responsible for about half of this. The EC is due in December to unveil a legislative proposal to address the issue. Alain Karsenty and Nicolas Picard, writing for IFRI, … [Read more...]
CBAM needs universal adoption of methods for measuring carbon intensity
Europe needs to account for the emissions of imported goods. That cannot happen without the international agreement on standards and certification systems for the carbon intensity of all steps in the value chain for all relevant products. Dolf Gielen and Francisco Boshell at IRENA and Massamba Thioye at the UNFCCC explain that several such systems exist around the world, but they need to be harmonised and widely adopted to truly reflect what is … [Read more...]
‘Fit for 55’ should prioritise decarbonisation of laggards: buildings, transport, industry, agriculture
Todayâs long-awaited "Fit for 55" legislative package from the European Commission will trigger intense and difficult negotiations that will last two years, says Nicolas Berghmans at IDDRI. Its scope is wide and inevitably interconnected. The twelve legislative proposals include adjustments to existing measures (renewable energy, energy efficiency, carbon market/EU ETS, energy taxation, climate effort sharing between Member States/ESR, land use … [Read more...]
Land Use and Forestry: existing LULUCF rules allow EUâs carbon sink to decrease. Change them
The EUâs current Regulations for Land Use, Land Use Change and Forestry (LULUCF) allow the regionâs carbon sink to decrease, explains Ulriikka Aarnio at CAN Europe. Itâs due to exclusions and a lack of transparency and proper accounting for emissions. As a result, the EUâs carbon sink has already decreased significantly in the last few years, extracting only 265 Mt of CO2 in 2019. Different activities both emit and absorb carbon. 2019 saw 135 Mt … [Read more...]
The EUâs âFit for 55â package: a primer on the EU ETS and other main policy levers
On July 14 the European Commission will present the much awaited âFit for 55â legislative package. Lara Dombrowski and Simon Göss at Energy Brainpool have written a very useful primer on whatâs at stake for the EU ETS, along with a summary of the other main policy levers that will be decided upon. The authors describe the EU ETS as the central instrument for reducing greenhouse gas emissions. It caps emissions for 10,000 power sector, industrial … [Read more...]
A carbon tax on car fuel? A fossil car phase-out date is more effective
The EC is working on a carbon tax on car drivers as part of its big climate plan review in June. William Todts at T&E warns that the EC shouldnât make the same mistake French President Macron made back in 2018 when severe gilets jaunes protests against a fuel price hike made him back down. A very high carbon price, decided by the market, may have the same effect, getting us nowhere. Instead, Todts gives his three point plan. The carbon tax … [Read more...]
The EU needs an independent science-led climate watchdog, a European Climate Change Council
Europe does not have the right institutional set-up for robust independent policy evaluation as the region enters a new, complex and radical stage of its energy and climate transition, argue Lola Vallejo (IDDRI), Alina Averchenkova (GRI), Matthias Duwe (Ecologic Institute) and Lara LĂĄzaro Touza (Real Instituto Elcano). This month 12 expert advisory bodies in 11 EU Member States published a letter to EU policy-makers to launch an EU-level body, a … [Read more...]
Climate Neutral Cities can be the key to winning public support for the European Green Deal
The EC is currently considering a mission proposal to achieve â100 climate neutral cities by 2030 â by and for the citizensâ. Arguing for its endorsement and the proposed umbrella governance, Simon Skillings and Eleonora Moro at E3G explain why cities are an ideal laboratory for tackling the big unanswered question: which European Green Deal (EGD) pathways will win genuine public support. No one should doubt that the EGD will be disruptive. So … [Read more...]
Wide variations in National Energy and Climate Plans: how can the EU seriously budget for emissions reductions?
The EU has big and growing ambitions for emissions reductions by 2030: down 40% below 1990 levels, increasing the share of renewables to 32% of final energy consumption and improving energy efficiency by 32.5% above business-as-usual. These targets will be further revised as the more ambitious goal of cutting emissions by 55% by 2030 becomes legally binding. This means the EU as well as individual nations must estimate the cost of meeting these … [Read more...]
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