Transcript Climate change

Climate change measures
What’s in store for Irish industry
Dr Brian Motherway
Motherway Begley Ltd
Climate change mechanisms
Carbon Tax
Carbon Dioxide
as a
IPPC
EU Trading
pollutant
Agreements
IPPC
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Protection of the Environment Bill 2003
Energy and greenhouse gases in IPPC
BATNEEC to BAT
Emission Limit Values
ELVs for CO2?
Climate Tax
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Minister for Finance announced carbon
tax in Budget 03
Due to come in end of 2004
Planning has started in earnest
Design decisions to be made
Approaches to carbon tax
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What to tax
Who to tax
Where to tax
Tax levels
Revenue
Negotiated agreements
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Likely complementary measure to make
tax more equitable
Various design options
Pilot project ongoing
Main agreement types, and trading
allocation, have much in common
For the company
What would it feel like?
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Paying identifiable new taxes on fuels
Possibly not a direct tax, but a price rise
on electricity
Exemptions (agreements etc)
EU Trading
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CO2 Trading
Draft directive agreed by Council of
Ministers in December 2002
To be passed by parliament this year
(Summer?)
First tentative trades already happening
EU Trading Timetable
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Directive transposed
Allocation plans
Phase 1 trading commences
Phase 2 Trading
Dec 03
Apr 04
Jan 05
Jan 08
Who’s on first?
Annex 1 participants:
 Generators
 Certain IPPC Categories
Cement
 Glass
 Ceramics (brick, stone, …) with size criteria
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Plants with boilers over 20MW
Certain opt out possibiliites for phase 1
What happens?
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Initial allocation
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Historic, BAU, Benchmarking
National registers, monitoring
Trading
Compliance and verifications
Reckoning
Fines - €40/T, €100/T
For the company
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Small number of Irish companies likely
to be directly involved
Allocation likely to be difficult
Much uncertainty
More predictions of low prices than of
high prices
Most companies more affected by
involvement of generators
UK trading experience
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Climate change levy and agreements
Carbon trading scheme
Interaction between mechanisms
Liquidity and price
Compatibility with EU scheme?
FAQs
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Credit for early action
Accounting and verification
Absolute vs relative emissions
CHP and renewables
Tax and trading
Summary
Carbon Tax
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CO2 as a pollutant
Targets are difficult
IPPC
Four main market mechanisms
Companies could be in more than one
category of regulation
Interactions unclear
EU Trading
Agreements
Climate change measures
Brian Motherway
[email protected]