Implementation of the EU climate policy in the EU Member States: the case of Poland

Similar documents
Polish outlook and reflections on EU ETS

Multilateral Assessment Greece. UNFCCC - SBI 46 - Bonn, May 12 th, 2017

Polish Cement Industry EU ETS lessons learnt

How to promote energy efficiency in DH sector in Poland. dr. Dariusz Gulczynski Polish District Heating Chamber of Commerce (IGCP)

Pragmatic Policy Options for Copenhagen and Beyond

European Commission. EU Bioenergy market development in the past. EU25, , biomass & waste only. Other wood & wood waste

European Union Emissions Trading Scheme enough for climate mitigation?

Report of the technical review of the second biennial report of Romania

Report of the in-depth review of the fifth national communication of the European Union

CLIMATE PROTECTION POLICY OF THE CZECH REPUBLIC. Executive summary 2017

Carbon tax, EU ETS versus Charge on Emissions. Carrino Gianluca, Lumsa University

Report of the technical review of the second biennial report of Austria

Economic Assessment of Low-Emission Development Scenarios for Ukraine

SEERMAP Kickoff Meeting Belgrade September Energy Planning Today in Greece Dimitri Lalas

EU's Climate Policy:

Background paper. Electricity production from wind and solar photovoltaic power in the EU

Energy and Emissions Trading

GHG emissions per capita. Share of global GHG emissions. e/cap) (tco

Reasons and Bases for EUROSAI Audit on Climate Change [ACC]

Implementation of UNFCCC in Armenia: ongoing activities in the context of climate change mitigation measures

Emissions Trading in Mexico. Mexico City 12 June 2017

The Paris Agreement and the EU's response

The White Certificate Scheme in New South Wales, Australia

GHG emissions per capita. (tco 2. e/cap) Source: UNDP, data for 2015 Source: World Bank Indicators, data for 2012 Source: IEA, data for 2013

Lex Mundi Annual and North America Regional Conference. Vancouver. September 30 October 2, Hot Topics in Climate Change and Energy:

PIGEO s Detailed Position. on Oversupply of Green Certificates

GHG emissions per capita. (tco 2. e/cap) Source: UNDP, data for 2015 Source: World Bank Indicators, data for 2012 Source: IEA, data for 2013

Climate policy in Belgium: context, structures and success stories

NEW AND RENEWABLE ENERGY POLICY

Estonia Energy efficiency report

Overview of U.S. and European Union Cap and Trade Programs. Reid Harvey, U.S. EPA Presented at 34 th Annual PURC Conference February 16, 2007

Climate Change and Energy Package

Sustainable Energy. Ecologically Sustainable Energy. Implications for the Sydney Region

Québec and The Carbon Market

2016 legislative proposal for the recast of the Renewable Energy Directive for advanced biofuels

Report of the in-depth review of the fifth national communication of Luxembourg

National Energy and Climate Strategy. Government Report to Parliament on 20 March 2013

EU GHG emission trading system: effects on Estonian electricity sector. Airi Andresson Senior Auditor National Audit Office of Estonia

The EU-Targets from the Perspective of an Energy Company

Educational Launch Seminar

FCCC/TRR.1/IRL. United Nations. Report of the technical review of the first biennial report of Ireland. Distr.: General 30 November 2014.

Current state: lessons learned and investment needs. Summary of main experiences in using EU funds for promoting energy efficiency

National Energy Outlook Summary

Evaluation of the impact of policy instruments and measures implemented in the context of the Federal climate policy

Brazil Energy efficiency report

Advance Version. Report of the centralized in-depth review of the second national communication of Ukraine

Workshop on developed country targets. Bangkok, 3 April EU contribution

The Voluntary Carbon Market: Status & Potential to Advance Sustainable Energy Activities

Energy Consumption and Energy Efficiency Trends in the EU

EMAN- Sustainable Supply Chains Finland The role of risk related to carbon finance in CDM projects

Seventh Annual Workshop on Greenhouse Gas. Catherine Leining, NZ Emissions Trading Group

Training programme GHG emission trends and projections

Accelerating the Global Energy Transition. Dolf Gielen and Luis Janeiro IRENA Innovation and Technology Centre

Implementation Plan. for transferring EU legislation in the field of climate change. Hungary

Emissions Intensity CHAPTER 5 EMISSIONS INTENSITY 25

Tin Zaw Myint Energy Planning Department (EPD), Ministry of Energy (MOE), Myanmar.

Report of the in-depth review of the fifth national communication of the Russian Federation

The EU ETS in the next decade. Reforming the EU ETS the main instrument to achieve Europe's climate targets

ESTONIA COUNTRY PROFILE 28

Low-down on the new emissions caps for European countries

The EU Energy and Climate Package

Climate and Energy Policy

State of Bio-energy in Albania

Report of the technical review of the sixth national communication of Norway

Carbon Pollution Reduction Scheme. Green Paper. Submission to the Department of Climate Change

Country Presentation Sri Lanka

EU wide energy scenarios until 2050 generated with the TIMES model

POLAND Agriculture Policies and programmes to achieve food security and sustainable agriculture

Report of the technical review of the first biennial report of Hungary

Nuclear Energy and Greenhouse Gas Emissions Avoidance in the EU

cepinput Carbon Leakage Reform of EU emissions trading post-2021 and global climate protection Moritz Bonn, Götz Reichert & Jan S.

Ireland s Provisional Greenhouse Gas Emissions

Policy Reforms to Promote Energy Efficiency and Renewable Energy Investments October, 2010 Geneva

Portugal Energy efficiency report

NATIONAL POLICY FOR ENERGY EFFICIENCY AND RENEWABLE ENERGY SOURCES

Results from the Swedish Environmental Protection Agency analysis of the ESR-proposal

Renewable Energy in Sweden an Overview

Finland s New Energy and Climate Strategy

Netherlands Energy efficiency report

IEEJ:August Uruguay Paula Cobas. Energy Policy Course Tokio, 2015

Carbon Finance Opportunities for Africa. Maputo, 11 June 2009 Dr Charlotte Streck

Portugal Energy efficiency report

CLIMATE CHANGE: CREDIT TRADING

RES-E policy and planning in GREECE

Energy Policy Trends in Latvia

Tradable Permits, 2011

Portugal Energy efficiency report

Overview of U.S. and European Climate Change Programs. Reid Harvey, U.S. EPA Presented at LSU Energy Summit October 24, 2007

Current Status of Climate Change Mitigation and Adaptation

Methodology for calculating subsidies to renewables

Status of Implementation of RED GHG Requirements

GHG emissions per capita. (tco 2. e/cap) Source: UNDP, data for 2015 Source: World Bank Indicators, data for 2012 Source: IEA, data for 2013

Seminar on the Production and Use of Biogas. Production and Use of Biogas: EU Regulations and Research. David Baxter

CONTENTS TABLE OF PART A GLOBAL ENERGY TRENDS PART B SPECIAL FOCUS ON RENEWABLE ENERGY OECD/IEA, 2016 ANNEXES

RES-E AND CAPACITY MARKET IN POLAND

THE CLIMATE CHANGE POLICY OF THE RUSSIAN FEDERATION

Renewable energy in the Netherlands and the EU. Ambitions vs reality. Drs Ron Wit Texel, 5 October 2010

GHG emissions per capita. (tco 2. e/cap) Source: UNDP, data for 2015 Source: World Bank Indicators, data for 2012 Source: IEA, data for 2013

4 Responding to Climate Change Guiding Question: How can we respond to climate change?

GREEN PAPER. A 2030 framework for climate and energy policies

Transcription:

Implementation of the EU climate policy in the EU Member States: the case of Poland Mr Wojciech Stepniewski, Climate Coalition, Poland 11 October 2013 Clima East 1

Scope of presentation 1. Poland s strategies to implement European Union climate policy and legislation 2. How emissions versus Kyoto targets look like in Poland and the European Union? 3. Emissions trading scheme 4. Effort sharing 5. Renewable energy 6. Other measures undertaken 7. Implications of climate policies for the Polish economy

Implementation of EU climate policy to Polish law The climate and energy package comprises four main documents which have to be implemented to the Polish legislation : EU ETS Directive (2009/29/EC) Reform of the EU Emissions Trading System (EU ETS) Ministry of Environment Effort Sharing Decision (406/2009/EC ) National targets for non-eu ETS emissions Ministry of Environment Carbon capture and storage Directive (2009/31/EC) a legal framework for the environmentally safe use of carbon capture and storage technologies Ministry of Environment Renewable Energy Directive (2009/28/EC) binding national targets for raising the share of renewable energy in their energy consumption by 2020 Ministry of Economy Energy efficiency The climate and energy package does not address the energy efficiency target directly. This is being done through the Energy Efficiency Plan and the Energy Efficiency Directive Ministry of Economy

GHG [mln Mg of CO2 eq.] GHG [mln Mg of CO2 eq.] GHG [mln Mg of CO2 eq.] 600 500 400 300 200 100 0 6000 5000 Emissions vs. Kyoto Target PL Kioto Target non ETS ETS 2005 2006 2007 2008 2009 2010 EU15 Poland well below the Kyoto target as a result of technology development and structural change of high energy intensity industries EU slightly below the Kyoto target as a result of the crisis and due to accesion of CEE states 6000 5000 EU27 Source: UNFCCC Kioto Target 4000 3000 2000 Kioto Target non ETS 4000 3000 2000 non ETS 1000 ETS 1000 ETS 0 2005 2006 2007 2008 2009 2010 0 2005 2006 2007 2008 2009 2010

[mln Mg] [mln Mg] Emission of GHG versus GDP 600 500 400 300 200 100 - PL 20.000 $ 18.000 $ 16.000 $ 14.000 $ 12.000 $ 10.000 $ 8.000 $ 6.000 $ 4.000 $ 2.000 $ 0 $ 7.000 EU27 35.000 $ 6.000 30.000 $ 5.000 25.000 $ 4.000 20.000 $ 3.000 15.000 $ 2.000 10.000 $ 1.000 5.000 $ - 0 $ Total emission Gross domestic product based on purchasing-power-parity (PPP) per capita GDP Sources: GDP International Monetary Fund, World Economic Outlook Database; Emissions UNFCCC

Targets of emission reduction in the EU package Source: EC PL +14%

Emissions trading scheme ETS

EU ETS - rules 2005-2007 2008-2012 2013-2020 Free allocation Free allocation Auctioning (with exemptions) 3 year-period 5 year-period 8 year-period Constant cap Cap on the national level Decreasing cap (-1,74%/year) Cap on the EU level NAP (all sectors) NIM (industry and heat) + derogation (electricity) Allocation methodology on the national level No banking Banking Harmonised methodology on the EU level Benchmarks Heat for household Subinstallation Carbon leakage

Key changes in EU ETS EU GHG emission reduction target 21% (1,74% annual reduction) Separation EU policy from Kyoto Protocol (base year 2005 + bonus for earlier reduction) Introduction of NIMs National Implementation Measures (enhanced role of EU) Auctioning main and future allocation methodology 5% of the total EU cap reserve for new entrants Adding other GHG gases: N 2 O i PFC (depending on the sector and type of activity (aluminum, nitric acid production) Restrictions in clearing some types of CER/ERUs

Key changes in EU ETS - allocation of allowances Depends on types of sectors Power sector No free allowances in whole period 2013-2020 with the exception of eight MS (including Poland) which made use of a derogation (Article 10c of EU ETS Directive) 70% in 2013 0% in 2020 Sectors not exposed to carbon leakage (including heat) 80% in 2013 30% in 2020 0% in 2027 Sectors exposed to carbon leakage 100% throughout the III period of EU ETS

Key changes in EU ETS - allocation of allowances Benchmarks: new method for the allocation of CO 2 allowances in the EU ETS; Pan European product benchmarks; the average of 10% most efficient installations in the EU (CO 2 emissions) lack of the specification of fuel, installations geographical location, age, output, quality of raw materials used Carbon leakage: direct up to 100% free allowances; indirect possibility of financial compensation (EC Guidelines)

[Mt CO2 eq.] Structure of emissions in the EU ETS in Poland, 2012 120 100 80 60 40 20 0 Verified GHG emissions in EU ETS [Mt] Freely allocated EUAs [Mt CO2 eq.] Source: KOBiZE

Estimated free allocation (2013-2020) vs. Emissions in 2012 in Poland Mt Lack of allowances compared to emissions 2012 250 Derogation for electricity generators 200 Installations covered by EU ETS in 2008-2012 54,24 63,87 73,17 83,21 93,96 150 100 50 196,63 212,70 77,82 72,26 66,70 60,03 52,25 105,41 43,36 118,76 32,24 153,10 0,00 64,56 60,50 56,75 53,39 50,42 47,86 45,63 43,53 0 Source: KOBiZE; the crosssectoral correction factor was included

Effort sharing

Key elements for the ESD decision Binding annual greenhouse gas emission targets : PL +14% for 2020 (from 2005 level) Covers emissions from sectors not included in the EU Emissions Trading System, such as transport (except aviation which was included in ETS), buildings, agriculture and waste It is mainly Member States responsibility to implement policies and measures, which will help limit emissions from the sectors covered by the ESD Emissions from LULUCF (land use, land use change and forestry) and international shipping are not included

Emission limits for Poland in non- ETS [mln ton CO2 eq.] 250 Reducing the cap due to exclude part of emissions from non-ets (included in the EU ETS for the period 2013-2020) Target for non-ets 200 11,07 10,87 10,67 10,46 10,26 10,06 9,85 9,65 150 100 179,50 194,18 186,90 188,06 189,21 190,37 191,52 192,67 193,83 194,98 50 0 Emissions from non- ETS in 2005 Average emissions from non- ETS (2008-2010) 2013 2014 2015 2016 2017 2018 2019 2020 Source: KOBiZE

Implemented measures at the EU level Emission standards for new cars and vans Emission reductions from buildings improve the energy performance of buildings Eco-design requirements for energy related products Withdrawal of incandescent lamps Energy labelling systems to inform consumers Restrictions on fluorinated industrial gases (F-gases) and implementation of other EU environmental policies, e.g. on soil protection and waste

Example of measures at the national level Shift from transport based on fossil fuels to sustainable one, elements of green procurement included in public orders Promotion of public transport and municipal bicycles schemes Energy performance standards for buildings introduced, stste financial support in place More efficient remote heating systems Renewable energy or coal to gas - for heating More efficient farming practices Conversion of maze, animal waste to biogas

Example of measures at the national level Directive 2010/30/EU on the labeling and standard product information, the consumption of energy and other resources by energy-related products. Poland adopted the act on providing information on energy-using products, and other essential resources. The new Directive introduced, among others new energy classes A +, A + +, A + + + Polish Act introduces to the Polish system the monitoring and control of energy labels. Includes: Refrigerators, washers, dryers and their combinations, dishwashers, ovens, clothes dryers, air conditioners, televisions, lamps.

Example of measures at the national level energy efficiency 2006/32/WE Energy Efficiency Directive is addressed in Poland by Energy Efficiency Law from April 15th, 2011 Ist and IInd National Energy Efficiency Action Plan, April, 2012 Introduction of the Energy Efficiency Law should bring energy savings of 2 2,5 Mtoe w 2016 r. The Law sets among others: 1. National energy efficiency target; 2. Public sector actions and tasks to increase efficiency; 3. Rules for acquiring energy efficiency certificates (white certificates) 4. Rules of preparing energy audits and gaining energy auditor certificates

Example of measures at the national level energy efficiency Directive 2010/31/EU on the energy performance of buildings The new Law on Energy Performance of Buildings is still being prepared by the Ministry of Transport, Construction and Maritime Economy. Passive construction - only several objects, however this business is growing Not properly introduced buildings energy certificates From December 31, 2020 all new buildings would have to be "nearly zero-energy" What will be the Polish standard of efficiency (energy consumption) for such buildings - 100 kwh/m 2 y or 30 kwh/m 2 y? Member States required to present a plan how to increase the number of "nearly zero-energy" buildings.

Renewable energy

Renewable Energy Sources (RES) development benefits enhance security of fuel and energy supply rural areas development through the increase in the field of non-food purposes production improvement of national financial balance (energy resources import reduction) RES industry development, which will directly influence the labour market and new technology export ability

Statistical data of final energy use including large hydro, 2010 Renewables share of electricity, heat and transport 16% 12% 9,5% Renewables share of electric energy only 19% 21% 7% Data: REN21, URE

Scenarios of final energy use including large hydro, 2020 Renewables share of electricity, heat and transport N/A 20% 15% Renewables share of N/A 34,3% 19% electric energy only Data: REN21, URE in accordance with Directive 2009/28/EC Intermediate targets for Poland set out in Directive: 2012 r. 8,76%, 2014 r. 9,36%, 2016 r. 10,44%, 2018 r. 11,88%

World s trends of renewables development For the first time in 2010 half of newly built generation capacities in electrical energy sector were Renewable Energy Sources Data: REN21

World s trends of renewables development, 2010 Ranking based on new capacity created in 2010. 1 2 3 4 Total RES Wind Fotovoltaics Solar heat Ethanol Biodiesel production production 5 Data: REN21

Support mechanism for electricity from renewables in Poland Green certificates mechanism introduced in October 2005 Obligation of purchase of the whole amount of electricity generated from renewables at average market price of conventional electricity from the previous year Average market price announced by the President of the Energy Regulatory Office Renewable Energy Law delayed, for the time being only amendments to the Energy Law introduced, majorily in order to avoid European Commision penalties Presently the auctioning system is under consideration

Support mechanism for heat production from renewables Purchase obligation imposed on heat sellers The purchase obligation must be within range of needs for the heat (sellers can not be obligated to buy more than they can sell) 29

Support mechanism for biofuels Obligation imposed on producers and importers of fuels to ensure at least minimal share of biocomponents in overall quantity of liquid fuels placed on the market Minimal share of biocomponents National indicative target established by the Council of Ministers: 7,1% in 2013-2016 30

Demand for gross final energy from renewable energy sources ktoe 12000 transport biofuels heat electricity % Share of renewable energy in total gross final energy 16,0% 10000 1444,10 14,0% 12,0% 8000 884,10 10,0% 6000 4000 96,90 549,00 5046,40 6255,90 8,0% 6,0% 4481,60 4,0% 2000 0 2686,70 370,60 714,90 1516,10 2006 2010 2015 2020 2,0% 0,0% Source:Polish Energy Policy till 2030, 2009 31

Implications of climate policies for the Polish economy

Costs Huge investment is needed in the power sector - estimated around 100-300 bln PLN (25-75 bln EUR) until 2020 (Fitch; EIB) Polish Economic Chamber with energy companies and EnergSys present their own calculations Potential cost of buying additional allowances in the period 2013-2020 will be approximately 5 bln EUR Additional costs for Poland in case of increasing the target to: -25% is 0,76% GDP -30% is 0,69% GDP (lower because of additional measures) [IA to Beyond 20% EC Communication] 33

Finance Auctioning revenues = 4 bln EUR (however this number is uncertain due to current carbon price circumstances = prices much below those projected) New state aid rules (limited scope of application) Support for innovative low-carbon technology (not enough for Carbon Capture and Storage CCS) 34

THANK YOU WOJCIECH STEPNIEWSKI T: +48 602381962 Clima East