Public Hearing Emissions Trading System ETS Committee on the - PowerPoint PPT Presentation

Public Hearing Emissions Trading System – ETS Committee on the Environment, Public Health and Food Safety European Parliament 18 February 2016 Philipp Ruf Lead Analyst – EU Carbon Markets

Phase 3 Suboptimal allocation?

Tackling phase 3 issues Use all available volumes Avoid unwarranted cuts Common sense policy Political decision Optimise allocation Benchmarks Baseline process Add flexible production element level Carbon leakage list

Phase 4 Optimised allocation?

Phase 4 – Optimised allocation! cross-sectoral-correction-factor [%] volume [m tonnes] 1.000 100% 800 80% 600 60% 400 40% 200 20% 0 0% allocation allocation cut left-over use of left-over industry cap CSCF

Conclusions Certainty New process ensures that all available volumes are used Low likelihood of an application of the CSCF Predictable benchmark reduction Flexibility Free allocation adjustment based on latest production data Three different flat-rates for benchmarks

Thank You ICIS Tschach Solutions GmbH Steinhäuserstrasse 9 76135 Karlsruhe / Germany Direct: +49 (0) 721 205 9629 00 http://analytics.icis.com