Transcript Shaun Chamberlin, Managing Director, TEQs

TEQs
(Tradable Energy Quotas)
Getting real in a resource-challenged
Europe
by Shaun Chamberlin
Managing Director
EEB Annual Conference
Brussels, 18th October 2013
What is TEQs?
Tradable Energy Quotas is
an electronic system for capping
(carbon-rated) energy use,
at national level,
for all energy users.
To purchase any fuel or energy, TEQs units
must be surrendered alongside cash payment.
All individual citizens receive an unconditional
free Entitlement of TEQs units.
Other energy users obtain their units through the
weekly Tender (auction).
Citizens who use less than their Entitlement may
sell them and benefit from their energy-thrift.
Those who want or need more may buy them
from those who are selling.
What TEQs could achieve
What TEQs could achieve
THE
GUARANTEE
What TEQs could achieve
THE
GUARANTEE
CLEAR LONGTERM SIGNAL
What TEQs could achieve
THE
GUARANTEE
CLEAR LONGTERM SIGNAL
STIMULATES
INNOVATION
What TEQs could achieve
THE
GUARANTEE
REDUCES
RESOURCE USE
CLEAR LONGTERM SIGNAL
STIMULATES
INNOVATION
What TEQs could achieve
THE
GUARANTEE
CLEAR LONGTERM SIGNAL
REDUCES
PROGRESSIVE
RESOURCE USE
POLICY
STIMULATES
INNOVATION
What TEQs could achieve
THE
GUARANTEE
CLEAR LONGTERM SIGNAL
REDUCES
PROGRESSIVE
RESOURCE USE
POLICY
STIMULATES
INNOVATION
COMMON
PURPOSE
An equitable, effective and
efficient environmental
policy framework –
guaranteeing emissions
reductions, stimulating
confidence and innovation
and defending Europe’s
access to fuel and energy.
www.teqs.net
www.ceeweb.org/rcc
UK Political progress
First published 1996
Ten Minute Rule Bill 2004
Government funded research 2006
Pre-feasibility study 2008 (‘international abatement’)
Env. Audit Committee (+ IPPR/CSE) report
All Party Parliamentary Report (media/endorsements)
Tradable Energy Quotas
ISSUE
40%
Entitlement
60%
Tender
QuotaCo
REGISTRAR
CARBON
SURRENDER
Fuel
extractors
BUDGET
MARKET
Citizens
Primary
dealers
Organisations
£
COMMITTEE
ON CLIMATE
CHANGE
Fuel wholesalers/
electricity
generators
Fuel/electricity
retailers
UNITS FLOW THROUGH THE ENERGY CYCLE
Tradable Energy Quotas
CARBON
BUDGET
COMMITTEE
ON CLIMATE
CHANGE
THE CARBON BUDGET
1. Establishes the total quantity of
TEQs units (rations) that may be issued
2. Guarantee = long-term confidence
Tradable Energy Quotas
QuotaCo
REGISTRAR
CARBON
BUDGET
COMMITTEE
ON CLIMATE
CHANGE
Tradable Energy Quotas
ISSUE
40%
Entitlement
60%
Tender
QuotaCo
REGISTRAR
CARBON
BUDGET
COMMITTEE
ON CLIMATE
CHANGE
THE ISSUE OF UNITS
1. By equal Entitlement to all adults (40%)
2. By Tender to all other users
(60%)
The Tender is a weekly auction at which
organisations (industry, government etc.)
purchase the TEQs units they need
THE RATING SYSTEM
Carbon units:
(all fuel rated by carbon content)
1 unit = 1kg CO2 (or equivalent gwp)
OR
Fuel units:
1 unit = 1 litre oil
1 unit = 1 metre3 gas
1 unit = 1 kWh electricity (etc)
(So renewables require almost no TEQs units)
(No need for exhaust pipe measurements
or carbon labelling)
Tradable Energy Quotas
ISSUE
40%
Entitlement
60%
Tender
QuotaCo
REGISTRAR
CARBON
BUDGET
MARKET
Citizens
Primary
dealers
Organisations
COMMITTEE
ON CLIMATE
CHANGE
THE MARKET FOR UNITS
Everyone has access to the same market.
The national market price is set by the
Tender.
Buying and selling as simple as Oyster or
mobile phone credit
Tradable Energy Quotas
ISSUE
40%
Entitlement
60%
Tender
QuotaCo
REGISTRAR
CARBON
BUDGET
MARKET
Citizens
Primary
dealers
Organisations
£
COMMITTEE
ON CLIMATE
CHANGE
Tradable Energy Quotas
ISSUE
40%
Entitlement
60%
Tender
QuotaCo
REGISTRAR
CARBON
BUDGET
MARKET
Citizens
Primary
dealers
COMMITTEE
ON CLIMATE
CHANGE
Organisations
£
UNITS FLOW THROUGH THE ENERGY CYCLE
Tradable Energy Quotas
ISSUE
40%
Entitlement
60%
Tender
QuotaCo
REGISTRAR
CARBON
BUDGET
MARKET
Citizens
Primary
dealers
Organisations
£
COMMITTEE
ON CLIMATE
CHANGE
SURRENDER
Extractors
/importers
Fuel wholesalers/
electricity
generators
Fuel/electricity
retailers
UNITS FLOW THROUGH THE ENERGY CYCLE
THE SURRENDER OF UNITS
A hands-free scheme
1. Utility bills: direct debit (8 times a yr)
2. Petrol: by card (20 times a yr)
3. The cash option
Embodied energy in other goods
No need to measure emissions
Tradable Energy Quotas
ISSUE
40%
Entitlement
60%
Tender
QuotaCo
REGISTRAR
CARBON
SURRENDER
Extractors
/importers
BUDGET
MARKET
Citizens
Primary
dealers
Organisations
£
COMMITTEE
ON CLIMATE
CHANGE
Fuel wholesalers/
electricity
generators
Fuel/electricity
retailers
UNITS FLOW THROUGH THE ENERGY CYCLE