Italian National Communication: policies and measures in energy sector

Transcription

1 Technical Assistance for Support to Mechanism for Monitoring i Turkey's Greenhouse Gas Emissions i Italy, 7-11 September 2015 Study Visit Italian National Communication: policies and measures in energy sector Monica Pantaleoni ISPRA - Institute for Environmental Protection and Research Institute for Environmental Protection and Research

2 Index International context National context Policies and measures

3 International context

4 International context In the most recent years actions taken by Italy to mitigate climate change are driven by the commitment undertaken under: - the Kyoto Protocol for the period EU Climate Energy Package for the period

5 International context - The Kyoto Protocol Italy is a Member State of the European Union (EU) and under the Kyoto Protocol, the EU-15 has agreed to reduce its greenhouse gas (GHG) emissions by 8% in the period (first period) compared to base year levelsl In the framework of the EU Burden Sharing Agreement, Italy has committed to reduce its greenhouse gas emissions by 6.5% below baseyear levels (1990) over the first commitment period, the Kyoto objective has been established as MtCO 2 2/year for each of the years of the commitment period. For the second commitment period ( ) 2020), the EU and Iceland committed to cutting their emissions by 2020 by 20 % compared to baseyear levels.

6 International context - Climate and Energy Package In march 2007 conclusion of the European Council named Integrated Energy and Climate Change Package (IECCP) commits the European Member State to achieve by 2020 the following targets: 20% use of renewable energy 10% use of bio fuels in the transport sector. 20% reduction of EU greenhouse gee ousegas emissions sso s compared to 1990 Additionally the reduction of GHG has been differentiated in two subsectors (ETS and ESD-non ETS) with different objectives 20% reduction in energy use to be achieved by improving energy efficiency.

7 Use of renewable energy - Directive 2009/28/EC. 20% of gross final energy consumption - 17% Italy Target EU Target The 17% target includes the 10% use of biofuels in the transport at 2020

8 Emissions reduction - ETS sector (Directive 2009/29/EC) The EU Emissions Trading Scheme (EU ETS) was established in 2003 by Directive 2003/87/EC and came into force in January It covers CO 2 emissions by all medium and large installations in the fields of energy conversion, refinery processes, coke ovens, steel, cement, glass, ceramic, cellulose and paper industries Important changes introduced by Directive 2009/29/EC: EU wide cap setting procedure: the new system will be no longer based on national-cap setting. The EU wide cap is determined according to a linear reduction path arriving at a reduction of 21% below reported 2005 emissions in (1.74% annually) new activities (such as the production of nitric, adipic, glyoxal and glyoxylic acid, the production of ammonia, aluminium) and new greenhouse gases (nitrous oxide and perfluorocarbons) are included in the scheme. Domestic aviation has been included in ETS starting from 2012

9 Emissions reduction - ESD sector (Effort Sharing Decision n. 406/2009/EC) -20% with reference to EU Target -13% at 2020, with reference to Italy national Target Industry not covered by ETS Civil sector Transport Agricolture Waste The ESD sets annual emission targets for each year of the period between 2013 and The annual targets are calculated according to a linear reduction path from 2013 target to 2020 target. The target for 2013 is calculated using the average ESD-emissions for the period

10 Energy efficiency - Directive 2012/27/EC 20% reduction in energy use by energy efficiency National target are not mandatory but follows voluntary commitments of Member States

11 Climate - Energy package 2030 In October 2014 the Commission has present a Communication on the Climate - Energy package In the document the Commission proposes to set a greenhouse gas emission reduction target for domestic EU emissions of 40% in 2030 relative to emissions in The EU level target must be shared between : ETS sector that would have to deliver a reduction of 43% in GHG in 2030 compared to The cap on the maximum permitted emissions within the ETS will have to be increased from 1.74% currently to 2.2% after ESD sector with a reduction of 30% compared to The collective effort for the non-ets sector will be allocated among each Member. For the period the attribution is made on the basis of relative wealth using GDP per capita In the accounting of the objective the emissions/removals of the LULUCF sectors are included. The Council Conclusions include also an EU wide target for renewable sources of 27% and an indicative target for the energy efficiency.

12 National context

13 National decision-making process related to climate change policies from early 1990 up to 2013 Ministry of the Environment, Land and Sea (IMELS) has elaborated several National plan for the reduction of greenhouse gas emissions that have been presented to the Inter-Ministerial i i Committee for Economic Planning (CIPE). In the 2002 after the Kyoto Protocol ratification the 4 th National Plan (CIPE deliberation 123/2002) established an inter-ministerial Technical Committee for GHG emissions (CTE). The CTE was chaired by the IMELS and included representatives of the Ministries of Economy and Finance, Economic Development, Agricultural, Food and Forestry Policies, i Transport, University it and Research (ISPRA and ENEA- National Agency for Energy and New Technologies), Foreign Affairs and of Regions. The main task of the CTE was to monitor the emissions i trend, the status t of the implementation of the policies and measures, to identified in the overall national strategy of GHG emissions and in general to assist IMELS in elaborating the national plan for the reduction of greenhouse gas emissions to be proposed to CIPE for adoption

14 National decision-making process related to climate change policies from early 1990 up to 2013 The latest CIPE deliberation was adopted in march 2013 in order to enable Italy to contribute in the achievements of the Kyoto Protocol target and commitments set by ESD Decision (CIPE deliberation 17/2013) The financial support and legislative instruments to implement the plan were identified through the Financial Law and allocated at the central and local bodies

15 National decision-making process related to climate change policies From 2014 from early 1990 up to 2013 To streamline the decision process since 2014 an interministerial working group has been set up by the Interministerial Committee on European Union Affairs office of the European Affairs Department of the Head of Government Offices, called CIAE. Representatives from the Ministries of Economic Development, Environment Land and Sea, Economy and Finance, Transport and Agriculture attend the working group, ISPRA and ENEA. This working group discusses and agrees policies and measure and scenarios for the reduction of GHG emissions The financial support is covered by each ministry or by ad hoc national legislation ( es. Green act, National Energy Strategy) According with the art. 12 of the Monitoring Mechanism Regulation MMR 525/2013 g g g a National Systems for Policies and Measures and Projections is being implemented

16 Policies and Measures

17 Renewable objective - Directive 2009/28/EC According with the 2009/28/EC Directive the EU Member State are free to decide their own preferred 'mix' of renewable sources, allowing them to take account of their different potentials The 17% objective is expressed in the form of a share of energy from renewable sources relative to final consumption in transport, electricity and heating and cooling (including transmission and generation losses) in 2020 takes also into account the effects of other policy measures addressing energy efficiency. i The Directive 2009/28/EU has been transposed by the Legislative Decree N. 28 of 3rd March The decree defines the mechanisms, the incentives and the institutional, financial and legal tools necessary to achieve the 2020 targets regarding the renewable energy use. The decree also provides for a substantial reorganization of existing incentive schemes.

18 Renewable Conto Termico ( Heating Account ) - 28 th December 2012 decree The Conto Termico decree, implements the incentive scheme introduced by Legislative Decree 28/2011. This scheme supports small-scale projects of energy efficiency i improvement and production of thermal energy from renewables. The measures covered by the decree are: building shells, replacement of heating plants with ones more efficient and replacement or installation of equipment using renewable energy Public administrations and private parties are eligible for this support scheme. The incentives are identified based on the energy saving achievable for the building and on energy production from renewable sources and may be granted only for projects which do not benefit from other forms of government support Gestore dei Servizi Energetici-GSE S.p.A. is the body in charge of implementing and managing the scheme, as well as of awarding financial incentives.

19 Renewable The Conto Energia Feed in scheme The Feed-in scheme has been regulated since 2005 by five Ministerial Decrees, the last being the Ministerial Decree of 5 July 2012 (Fifth Feed-in Scheme), which entered into force on 27 August This is a support system that provides constant compensation of electricity produced by solar photovoltaic and thermodynamic, for a fixed period (20 years for photovoltaic systems) through a tariff for all energy produced by the plants (feed in premium). The projects eligible for the scheme are those for new installation, reconstruction and upgrading. The subsidies tariffs under the Fifth Feed-in Scheme cannot be cumulated with net metering, simplified purchase and sale arrangements or sale of power on the market (only for installations with power output up to 1 MW)

20 The Conto Energia Feed in scheme The Fifth Feed-in Scheme has two different incentive access mechanisms, based on type of generating station and nominal power output: directly eligible plants (up to 50 kw) installed on buildings and replacing Eternit (asbestos cement) roofs; integrated with innovative characteristics; concentration plants; installations by Public Administrations; etc.; plants, other than the above, which to access the scheme must be enteredonadhocrankinglists,eachwithacostceiling,setoutinthe Decree.

21 Renewable The Conto Energia Feed in scheme The feed in system has exhausted the available financial allowances in mid 2013 Source : GSE

22 Energy Efficiency : The White Certificates system White Certificates, also known as Energy Efficiency Certificates (EEC), are tradable instruments and represents a policy aimed at promoting energy efficiency in all the end-use energy sectors: industrial, residential, service. 1 EEC is equivalent of 1 Mtoe The White Certificates scheme was introduced into the Italian legislation by the Ministerial Decrees of 20 July 2004, as subsequently amended and supplemented. Under the scheme there are: Obliged parties: electricity distributors and natural-gas distributors. These subjects have the obligation of achieving yearly y national quantitative energy efficiency improvement targets: Voluntary parties: Energy Service Companies (ESCOs), companies subject to the obligation of appointing an energy manager, companies controlled by obliged distributors, companies operating in the industry, services, agriculture, transport and public-service sectors, including government bodies, provided that they have appointed a person in charge of conservation and rational use of energy ( energy manager ).

23 Energy Efficiency : The White Certificates system In the December 2012 was issued the so called White Certificate Decree concerning the determination of national quantitative targets of energy savings that must be pursued to the distribution companies for electricity and gas from 2013 to 2016 and for the expansionof white certificates mechanism. The decree defines the criteria, the conditions and the procedures to implement energy efficiency measures in end-use energy. Energy saving have to be demonstrated for a period of 4-7 years, depending on sectors The Decree of 28 Dec provides that the activities of management, evaluation and certification of the savings associated with energy efficiency projects under the white certificates schemes shall be transferred from AEEG- Energy Authority to GSE as of 3 Feb

24 Energy Efficiency : The White Certificates system 6 REVISED TARGET FOR THE ITALIAN WHITE CERTIFICATE SYSTEM (Mtoe/Year) Electricity distributors Gas distributors Elaboration from GSE data

25 Policies in the Civil sector- Energy performance in the building The package of policies envisaged in this sector aims at improving energy efficiency through specific actions targeted both at existing and new buildings and appliances. The implementation of directive 2002/91/EC / Directive on the energy performance of buildings was an opportunity to introduce stricter energy requirements and to promote the diffusion of renewable energy sources in the building sector. The legislativedecree192/2005transposedthedirectiveintonationallawattheendof 2006, legislative decree 192/2005 was amended by legislative decree 311/2006 to strengthen the buildings thermal demand requirements. Dir. 2010/31/EC recasts the European Energy Performance of Buildings Directive (EPBD) (transposed into national law with the decree 63/2013). This measure defines mandatory standards d for public and new buildings. The transposition of this directive will raise the requirement on new buildings and in the same time will be important to strengthen the control system, making it consistent in all regions.

26 Policies in the Civil sector- Tax deduction Budget Law 1998 introduced the possibility of deducting from IRPEF (personal income tax) part of the costs incurred for restructuring dwellings and common parts of residential buildings. The Budget Law for 2007 introduce the 55% tax deduction that was extended up to the Stability Law of 2014 where the amount of the deduction arrived at 65%: expenditure incurred up to 31 December 2014 was been tax-deductible as to 65%. the tax deduction fall to 50% in 2015 As to works on common portions of condominium buildings or concerning all the property units of a condominium, expenditure incurred up to 30 June 2015 are tax-deductible as to 65%, while thereafter and up to 30 June 2016 the bonus will drop to 50%. The tax deduction can be requested by all resident and non-resident taxpayers.

27 Policies in the Civil sector- Tax deduction The eligible projects are: building shell vertical opaque structures, horizontal opaque structures or windows, including blinds or shutters installation of solar panels for the production of hot waters replacement of heating systems replacement of heating systems with high efficiency heat pumps p and low-enthalpy geothermal systems replacement of conventional water heaters with heat pump water heaters for the production of sanitary hot water biomass heating systems

28 Policies in the Transport sector Infrastructural measures: high capacity and high speed networks and tuning of regional networks for commuting and goods. Management measures regarding enhancement of road urban public transport network. Intermodal measures: regarding shifting from private road traffic to public road traffic and shifting goods transport from the road to the sea and management measures regarding supporting efficiency in private road transport and improving road circulation in the urban areas Fleet update : in the past there where subsidies to change older cars with new ones with average emissions of 120 CO2/km (130 gco2/km engines efficiency plus -10 gco2/km from additional reduction tools as biofuels or low carbon fuels); The new limits are mandatory for all registered vehicles from Mandatory requirement of the Directive 2009/28/EC: 10% of use of biofuel for transport at Accelerated replacement of vehicle fleet with new vehicles including electric cars and expansion of biofuels

29 Additional EU obbligation Monitoring Mechanism Regulation MMR 525/2013 Article 13 Reporting on policies and measures By 15 March 2015, and every two years thereafter, Member States shall provide the Commission with information on national policies and measures, or groups of measures, and on implementation of Union policies and measures, or groups of measures, that limit or reduce greenhouse gas emissions by sources or enhance removals by sinks, presented on a sectoral basis and organised by gas or group of gases (HFCs and PFCs). That information shall refer to applicable and relevant national or Union policies and shall include: 1. the objective of the policy or measure and ashort description of the policy or measure; 2. the type of policy instrument, the status of implementation of the policy or measure; 3. where used, indicators to monitor and evaluate progress over time; 4. the results of ex ante assessments of the effects of individual or groups of policies and measures on the mitigation of climate change. Estimates shall be provided for a sequence of four future years ending with 0 or 5 immediately following the reporting year, with a distinction between greenhouse gas emissions covered ETS and ESD sectors.

30 Additional EU obbligation Monitoring Mechanism Regulation MMR 525/2013 Policy impacting EU ETS or ESD emissions (both can be selected) GHGemissions reductions in t (kt CO2 equivalent per year) GHGemissions reductions in t+5 (kt CO2 equivalent peryear) Ex anteassessment GHGemissions reductions in t+10 (kt CO2 equivalent peryear) GHGemissions reductions in t+15 (kt CO2 equivalent peryear) Policy or measure or groups of policies and measures EU ETS ESD LULUCF Total EU ETS ESD Total EU ETS ESD Total EU ETS ESD Total EU ETS ESD

31 Institute t for Environmental Protection ti and Research Thank you