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News 300 million Emissions Trading Scheme allowances for "innovative renewables"
News 300 million Emissions Trading Scheme allowances for "innovative renewables"
| 300 million Emissions Trading Scheme allowances for "innovative renewables" |
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| Monday, 27 April 2009 | |
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Up to 300 million allowances, each with a value (perhaps) of 20 EUR, will be set aside in the New Entrants’ Reserve of ‘Phase 3’ of the European Emissions Trading Scheme to finance demonstration projects of innovative renewable energy technology and CCS (carbon capture and storage).
The principles that should govern the disbursement of NER resources have not yet been defined, much less the mechanism by which this disbursement should take place. The agreement reached in December between the European Parliament and Council contains only a few paragraphs of guidance (Art. 10a (8), Preamble Clause 20), but in our position paper, we offer some initial ideas for the European Commission and Member States to consider. Key among them is that money from auctioned NER allowances should be granted to installations of advanced and largely untried technology per unit of energy that the installation produces. The NER payment would therefore resemble the payments made by the "feed-in tariff" remuneration schemes that are in operation in many Member States. It would supplement these schemes, mitigating the economic risk of using highly advanced and untried technology. More generally, our position is that the 300 million allowances in the NER should be used to help establish new technologies in the market. What constitutes a new technology is a question the Commission should spend considerable time examining in close co-operation with us and the renewable energy industry associations. |
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