3rd meeting of the ECCP working group on emissions trading

Priorities of the review

• scope of the EU ETS
  • Small Installations within the EU emissions trading scheme
  • Inclusion of additional activities and gases into the EU Emissions Trading Scheme
• further harmonisation and increased predictability
  • Auctioning of CO2 Emission Allowances in the EU ETS
  • The approach to new entrants and closures
  • Harmonisation of allocation methodologies
• robust compliance and enforcement
• involving third countries

An overview on all relevant issues and positions of stakeholders is provided by a survey:

• Review of EU Emissions Trading Scheme - Survey Highlights
• Review of EU Emissions Trading Scheme - Survey Results
• Review of EU Emissions Trading Scheme - Free Text Answers EU ETS Survey

An analysis on the effects on international competitiveness is the subject of a further study:

• Report on international competitiveness

Agenda and presentations

1st Day

Welcome and introduction

• Jos Delbeke, Director of DG Environment, European Commission

Cap-setting: EU-wide versus national caps

• Options to set an EU-wide cap - Presentation from Mr Felix Matthes, Öko-Institut (15 min)
• Pros and cons of national caps and their impacts on the internal market - Presentation from Mr Christian Egenhofer, CEPS (15 min)
• Harmonised cap-setting procedures: the advantages and drawbacks of upfront or NAP based cap setting - Presentation from Mr Stefan Moser, European Commission (15 min)
• The perspective from the financial markets point of view - Presentation from Ms Kate Hampton, ECIS (5 min)
• Discussion

Increased predictability

• Time horizons for EU ETS revision
• Equal time horizons for cap setting and allocation? - Presentation from Mr Franzjosef Schafhausen, Germany (5 min)
• Presentation from Mr Owen Wilson, Eurelectric (5 min)
• Presentation from Mr Mark Lewis, Carbon analyst, Deutsche Bank (10 min)
• Discussion

Lunch break

Allocation methodologies

• Overview of allocation methodologies - Presentation from Mr David Harrison, NERA (20 min)
• Views of industrial sectors on improving allocation. Representatives from:
  • Alliance/CEFIC/IFIEC (Mr Vianney Schyns)
  • chlor industry (Mr Alistair Steel)
  • chemical sector(Mr Peter Botschek)
  • lime industry (Mr Yves de Lespinay)
  • cement sector +3 Questions about ETS (Mr Jean Marie Chandelle)
  • pulp&paper industry (Mr Marco Mensik)
  • glass industry (Mr Guy Tackels)
  • ceramic industry (Mr Kevin Farell)
  • Alliance/CEFIC/IFIEC (Mrs Annette Loske)
• Discussion

Coffee break

Carbon price signals, allocation methodologies and international aspects including electricity prices

• Economic and ecological impact of different allocation methodologies (grandfathering, benchmarking, auctioning) - Presentation from Mr Stefan Singer, WWF(10 min)
• The impact of the EU ETS on electricity prices: experiences from the past and expectations for the future
  • Presentation from Mr Jos Sijm, ECN (10 min)
  • Presentation from Mr Simon Baker, Eurometaux (5 min)
  • Presentation from Mr Bill Kyte, Eurelectric (10 min)
• International aspects: the issue of competitiveness
  • Presentation from Ms Sophie Dupressoir, ETUC (5 min)
  • Presentation from Mr Christoph Grobbel, McKinsey (10 min)
  • Presentation from Mr Paul Brooks, Eurofer (10 min)
• The economic role of carbon price signals emerging from the EU ETS - Presentation from Mr Richard Baron, IEA (10 min)
• Discussion

2nd Day

Options for benchmarking

• Benchmarks: practical aspects, pros and cons:
  • Applicability
  • EU-wide or national
  • Number of benchmarks needed
  • The appropriate basis of benchmarks
• Presentation from Mr Paul van Slobbe, Netherlands (10 min)
• Presentation from Mr Mariano Morazzo, Italy (10 min)
• Presentation from Mr Tomas Velghe, Belgium (10 min)
• Discussion

Coffee break

Options for auctioning

• Options and requirements of auctioning allowances in the EU ETS - Presentation from Mr Kjell Olav Kristiansen, Point Carbon (10 min)
• Auctioning under a single EU-wide cap or national caps: design options - Presentation from Mr Karsten Neuhoff, University of Cambridge (10 min) (tbc)
• The role of auctioning: stakeholders' perspective
  • Presentation from Mr Andrei Marcu, IETA (5 min)
  • Presentation from Mrs Gyorgyi Gurban, Hungary (5 min)
  • Presentation from Mr Ken Macken, Ireland (5 min)
  • Presentation from Mr Tomas Wyns, CAN-Europe (5 min)
• Discussion

Lunch break

Possible options for allocation under the EU ETS post 2012

• Presentationlom Mr David Harrison, NERA (15 min)
• Discussion

Coffee break

New entrants

• Harmonised approach on new entrants - Presentation from Mr Hans Hendrik Lindboe, Denmark (10 min)
• New entrants reserve: if pursued, how to administer it?
• Sectoral differentiation of NER
• Definition of a new entrant - Presentation from Ms Ann Gardiner, Ecofys (10 min)
• Discussion

Closure of installations

• Options for harmonisation - Presentation from Ms Ann Gardiner, Ecofys (5 min)
• Discussion

Monitoring and reporting

• Cost-effective solutions for increasing transparency for the carbon market - Presentation from Ms Kate Hampton, ECIS (5 min)
• Discussion

Concluding Remarks by the Chair

• Jos Delbeke, Director, DG Environment

Other useful documents

• List of participants
• Final report of the 3rd meeting of the ECCP working group on emissions trading on the review of the EU ETS on Further Harmonisation and Increased Predictability

The Group comprised representatives of Member States, industry, NGOs as well as academia and research. The final reports of each meeting of the Group represent the report announced in Commission Communication "Towards a global carbon market – Report pursuant to Article 30 of Directive 2003/87/EC".

The review process provided the Commission with relevant input for adapting the EU ETS to the requirements and needs of emissions trading after 2012.

Stakeholders' contributions for the review process of the EU ETS

• Association Française des Entreprises Privées (AFEP)
• Alliance of the Energy Intensive Industries
  Joint contribution with CEFIC and IFIEC
• British Abrasives Federation (BAF)
• British Cement Association (BCA)
• The Confederation of European Business (BusinessEurope)
  Comments on JI and CDM
• Climate Action Network Europe (CAN-Europe)
• European Chemical Industry Council (CEFIC)
• Comité Européen des Fabricant de Sucre (CEFS)
• The European Cement Association (CEMBUREAU)
• CEMEX (not public)
• COGEN Europe position paper - ECCP 3rd meeting ( COGEN )
• Community of European Railway and Infrastructure Companies (CER)
• Climate Strategies
• Danish Energy Association (Danskenergi)
• Danish Ministry of Transport and Energy
• E.ON AG
• European Aluminium Association (EAA)
• Electricité de France (EDF)
• European Federation of Energy Traders (EFET)
• European Federation of Intelligent Energy Efficiency Systems (EFIEES)
• The Environmental Industries Commission Ltd. (EIC)
• European Peat and Growing Media Association (EPAGMA)
• Entreprises pour l'Environnement (EpE)
  Allocation
  Auctioning
  Predictability
  Market authority?
• Union of the Electricity Industry (EURELECTRIC)
• European Insulation Manufacturers Association (EURIMA)
• The Association of European Chambers of Commerce and Industry (EUROCHAMBRES)
• European Association of Consumer Cooperatives (Euro-Coop)
• European Confederation of Iron and Steel Industries (EUROFER)
• International Association representing the combined heat and power (CHP), district heating and cooling (DHC) sector in Europe and beyond (Euroheat & Power)
• European Petroleum Industry Association (EUROPIA)
• The European Wind Association (EWEA) (not public)
• Foundation for the Economics of Sustainability (FEASTA)
• Federation of European Producers of Abrasives (FEPA)
• Finnish Energy Industries
• Greenhouse Ireland Action Network (GRIAN)
• Iberdrola
• International Chamber of Commerce UK (ICC UK)
• International Emissions Trading Association (IETA)
• Norwegian Mission to EU/Ministry of Environment
• The Office of Gas and Electricity Markets (OFGEM)
• International Association of Oil and Gas Producers OGP Europe (OGP)
• O-I Europe (Manufacturer of Glass Containers)
• Scottish and Southern Energy Group (not public)
• Syndicat national des abrasifs et super-abrasifs (SNAS) (not public)
• Sustainable Forestry Management Ltd. (SFM)
• Verband der Chemischen Industrie (VCI)
• Verband der Elektrizitätswirtschaft e.V. (VDEW)
• Verband Deutscher Schleifmittelwerke (VDS)
• Austrian Clay Brick and Roof Tile Industry (VöZ)
• World Wide Fund For Nature (WWF)

Location