Reporting of implemented policies and measures by Finland under the Monitoring Mechanism of Community CO 2

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1 Filad Sources of iformatio Reportig of implemeted policies ad measures b Filad uder the Moitorig Mechaism of Commuit ad other greehouse gas emissios (Coucil Decisio 1999/296/EC ear 2001, December Filad s Third Natioal Commuicatio uder the Uited Natios Framework Covetio o Climate Chage, Iformatio provided i a questioaire as part of the Moitorig Mechaism, Qualit ad trasparec of reportig Filad s Third Natioal Commuicatio provides reasoabl comprehesive iformatio about both existig ad plaed policies ad measures ad the iformatio is summarised i tabular form. The mai area where iformatio is lackig is i the quatitative assessmet of policies ad measures. There is some quatitative assessmet of the combied effect of policies ad measures i the additioal measures sceario, but ot of idividual measures. There is o quatificatio of policies ad measures i the with measures sceario. Policies ad measures o loger i place are oted. Idividual policies ad measures are ot costed, however there is a discussio of govermet expediture o the eerg ecoom, uder a umber of broad headigs icludig research ad developmet, promotio of eerg coservatio ad ivestmet aid for reewables. The latest report uder the Moitorig Mechaism, largel takes selected iformatio from the 3NC. The scorig i the tables below relates to the iformatio i the 3NC. Table 1: Iformatio provided o policies ad measures Iformatio provided Level provided Commets Polic ames +++ Objectives of policies ++ Which GHGs? All Status of implemetatio +++ Clear distictio betwee existig ad plaed policies ad measures Implemetatio bod +++ specified Quatitative assessmet of implemetatio + Iformatio ol give o the combied effects of policies ad measures i the with additioal measures Iteractio with other P&Ms discussed sceario ++ Some discussio o other policies & measures that affect GHG. +, ++, +++ level of iformatio available icreases as the umber of + sigs icreases 1

2 Iformatio o projectios is preseted for a base sceario (take from Filad s first Natioal Commuicatio, a with measures sceario ad a with additioal measures sceario. The policies ad measures i the with measures ad with additioal measures scearios are clearl idetified. The projectios are disaggregated b gas (carbo dioxide, methae, itrous oxide ad fluoriated gases ad b sector are preseted i both graphical ad detailed tabular form. The sectoral disaggregatio does ot coform to the UNFCCC CRF as all eerg-related emissios, with the exceptio of trasport, are reported together. No breakdow for eerg suppl, domestic, idustr, services etc is available. Table 2: Iformatio provided o projectios Categor of iformatio Level of Commets iformatio provided Scearios cosidered Base, with measures, with additioal measures Expressed relative to ivetor for Yes previous ears Startig ear 2000 Split of projectios ++ No sectoral breakdow for eergrelated emissios. Presetatio of results +++ Detailed tables provided b sector Descriptio of model (level of detail, approach ad assumptios ++ Good descriptio of various modellig approaches Discussio of ucertait ++ There is a qualitative discussio of the sesitivit of the results to iput assumptios. Details of parameters ad assumptios + Most parameters are described ol qualitativel +, ++, +++ level of iformatio available icreases as the umber of + sigs icreases Assessmet of policies ad measures Iformatio o policies ad measures is clearl preseted. Quatificatio of the effect of policies ad measures is ol give for the plaed measures that are cotaied i the with additioal measures projectio. Table 3 shows the effect of these measures. Table 3: Summar of the effect of policies ad measures icluded i the projectios (Mt With measures With additioal measures Eerg Eerg coservatio 3 4 Promotio of reewable 4 5 sources of eerg Actio cocerig 6 0 electricit productio Other sectors Measures cocerig >1 other greehouse gases Total 14 Table 4 provides a detailed breakdow of both implemeted ad plaed policies ad measures. 2

3 Table 4: Detailed iformatio o polices ad measures Tpe of istrumet Status Implemetig etit Estimate of savigs (Mt Eerg Eerg Eerg Eerg Eerg Electricit Market Act Icrease competitio Eerg Taxatio Reduce eerg cosumptio & to improve competitiveess of reewables Eerg Coservatio Programme Volutar agreemet o eerg coservatio & eerg auditig Actio pla for reewable eerg To reduce eerg cosumptio Agreemets o moitorig, coservatio plas, eerg audits, eerg ivestmet, ew techolog Reduce & o GHG emissios Policies ad measure i the with measures projectio Regulator Implemeted Miistr of Trade & 1995 & Idustr modified i 1997 Fiscal Implemeted latest chage i 1998 Techical, regulator, ecoomic, iformatio, educatio Volutar agreemet Fiscal, techical, iformatio, educatio, ecoomic Implemeted 1995 Implemeted 1997 Implemeted Miistr of Fiace Miistr of Trade & Idustr, Motiva O Miistr of Trade & Idustr, Motiva O, idustr, muicipalities Miistr of Trade & Idustr 3

4 Tpe of istrumet Status Implemetig etit Estimate of savigs (Mt Eerg R&D Reduce & o GHG emissios Trasport Trasport Trasport Volutar agreemet with Europea, Japaese & Korea car idustries Differetiatio of vehicle taxatio Promotio of public & omotorised trasport Reductio of emissios from passeger cars Promotig purchase & use of eergefficiet vehicles Icreasig share of public & omotorised trasport Trasport Eco-drivig Adoptio of eco-efficiet drivig skills & habits Trasport Eerg savig Adoptio of eerg savig agreemets betwee admiistratio & trasport operators Techical, iformatio, educatio, Volutar agreemet Implemeted Miistr of Trade & Idustr Implemeted EU with car idustr Fiscal Plaed Natioal govermet, N 2 0 Implemeted, ew measures plaed Iformatio, educatio, ecoomic Volutar agreemet Implemeted Implemeted, ew arragemets i preparatio Natioal govermet i co-operatio with local authorities Natioal govermet i co-operatio with local drivig schools Natioal govermet i co-operatio with trasport operators 4

5 Tpe of istrumet Status Implemetig etit Estimate of savigs (Mt Maagemet Maagemet Maagemet Govermet decisios o ladfills miimisatio, collectio & recover of waste paper & other waste Reduce emissios Reduce emissios fractios tax Reduce emissios Agriculture Ageda 2000, iclduig agrievirometal measures Eerg Eerg Eerg Revised eerg coservatio programme New actio pla for reewable eerg Suppl of electricit Reduce GHG,, N 2 O Regulator Implemeted Miistr of the Eviromet Regulator Implemeted Miistr of the Eviromet Fiscal Implemeted Miistr of Fiace Ecoomic Implemeted Miistr of Agriculture & Forestr Policies ad measures i the with additioal measures projectio Reduce Techical, Plaed Miistr of Trade & eerg iformatio, Idustr, Motiva O, cosumptio educatio, Miistr of Fiace, fiscal Miistr of the Reduce & o-ghg emissios Reduce emissios Fiscal, techical, iformatio, educatio, ecoomic Regulator, ecoomic Adopted Plaed Eviromet Miistr of Trade & Idustr Miistr of Trade & Idustr 5

6 Tpe of istrumet Status Implemetig etit Estimate of savigs (Mt Trasport Trasport Trasport Trasport Maagemet Maagemet Icrease of fuel taxatio Additioal promotio of public trasport Broader eerg savigs agreemets Additioal measures to maitai urba ifrastructure Ladfill gas recover Reduce traffic volume & GHG emissios Promote public trasport Broade the scope & effectiveess of eerg savig agreemets Cocetratio of urba ifrastructure Reduce emissios Reduce miimisatio & emissios the utilisatio of sourceseparated waste fractios as material & eerg Fiscal Plaed Miistr of Fiace Iformatio, educatio, ecoomic Volutar agreemet Iformatio, educatio, ecoomic Regulator, Fiscal Regulator, fiscal Plaed Plaed Plaed Plaed Plaed Govermet i cooperatio with local authorities Miistr of Trasport & Commuicatios Govermet i cooperatio with regioal & local authorities Miistr of the Eviromet, Miistr of Fiace Miistr of the Eviromet, Miistr of Fiace 6

7 Tpe of istrumet Status Implemetig etit Estimate of savigs (Mt Maagemet Developmet of waste taxatio Reduce emissios Regulator, Fiscal Plaed Miistr of Fiace 7

8 Evaluatio of projectios Tables 5 to 7 summarise the latest emissios projectios ad compare them with Filad s target uder the EU burde sharig agreemet. The with measures projectio shows that without additioal policies ad measures, Filad s emissios will icrease b 16.6 % i 2010 compared with 1990 levels. However, if the effect of the plaed measures are take ito accout, the the with additioal measures projectio shows that Filad is expected to meet its target. Table 5: Summar of projectios b gas i 2010 (Mt Base ear With measures With additioal measures * N 2 O HFCs & PFCs 0.0 SF Total % chage rel % 1.6 % * The base ear (1990 figures have recetl bee revised. Therefore the target figure for 2010 (75.8Mt differs from the revised 1990 emissios (77.1 Mt. Table 6: Summar of projectios b sector i 2010 (Mt Base With ear measures % chage relative to 1990 With additioal measures * % chage relative 1990 (additioal measures Eerg Trasport Idustrial processes Solvets Agriculture maagemet Other Total % % * The base ear (1990 figures have recetl bee revised. Therefore the target figure for 2010 (75.8Mt differs from the revised 1990 emissios (77.1 Mt. Table 7: Assessmet of the target Mt equiv. % of 1990 level (six gas basket Base ear (from ivetor Commitmet With existig P&Ms Gap (-ve meas o gap Effect of additioal P&Ms Descriptio of modellig approach I order to stud the effects of the climate strateg, two major research projects were lauched as earl as i the begiig of The Govermet Istitute for Ecoomic Research (VATT studied the effects i collaboratio with the Techical Research Cetre of Filad (VTT, ad i the other project, the Research Istitute of the Fiish Ecoom (ETLA ad VTT produced joit estimates of the effects. ETLA 8

9 ad VTT have developed a computable geeral equilibrium model that combies a top-dow approach of ecoomic behaviour with a bottom-up descriptio o eerg ad paper idustries. The model facilitates a simultaeous aalsis of both ecoomic ad techological choices. Ecoomic top-dow models do ot usuall defie productio processes i great detail, relig istead o productio fuctios to catch the usage of iputs, icludig eerg. The iterdepedecies of various sectors as well as ecoomic choices are modelled much more meticulousl. Egieerig models, o the other had, ted to take a partial equilibrium approach ad cotai detailed descriptios of productio techologies ad processes, but leave the ecoomic eviromet exogeous. The model developed b ETLA ad VTT combies these two approaches. I the VATT/VTT project two large models were used i a iterative maer. The eerg sector calculatios are carried out b meas of the EFOM model, maaged b VTT Eerg. The ecoomic evaluatio is largel based o calculatios with KESSU, which is owed b the miistr of Fiace but deploed i VATT. EFOM is a optimisatio eerg model. Its origial desig is rooted i a iitiative of the Europea Commissio to obtai a model stadard for eerg sstem modellig throughout Europe. The Fiish versio has bee exteded ad tued to the Fiish circumstaces, e.g. cocerig the abudat use of district heat ad the sigificace of the pulp ad paper idustr. Parameters used i the modellig are give below. Modellig parameters Parameter Uits Populatio Millios GDP Billio FIM Source: Questioaire Coutr coclusios Filad has provided up to date ad detailed iformatio about policies ad measures to reduce greehouse gas emissios ad projectios. Both the Third Natioal Commuicatio ad the latest Moitorig report provide a good level of descriptio of the policies ad measures, although the quatificatio for idividual policies ad measures is mostl abset. The policies ad measures icluded i both the with measures ad with additioal measures projectios are clearl idetified. The projectios are clearl preseted i both graphical ad tabular form ad are disaggregated b idividual greehouse gas. The sectoral breakdow is less comprehesive with all eerg-related emissios, except trasport reported together. With existig measures the projectios show a 17 % gap to Filad s burde sharig target. Additioal policies ad measures are idetified which the projectios idicate will fill this gap ad eable Filad to meet its target through domestic measures aloe. 9