Mr Adam Whitmore, Rio Tinto Paolo Agnolucci, University College London Phoebe Lewis, University College London There is currently a surplus of about 2 billion allowances in the EUETS during the current phase, largely arising as a result of the economic recession in Europe. In response to this surplus the European Commission has put forward a proposal to establish from 2021 a market stability reserve, with allowances put into or drawn down from the reserve depending on the size of the cumulative surplus of allowances (EC 2014). This is a significant innovation in the structure and potential operation of the world’s largest carbon market, with no precedent from similar mechanisms elsewhere. Although a number of authors in the academic literature have discussed and advocated the use of price stability reserves, (e.g. Murray et al 2009), a reserve is normally assumed to be activated by the price of allowances reaching a defined trigger level. The design of the EU ETS proposal is novel in that the operation of the reserve is triggered by quantity rather than price. This mechanism has the Read more…Whitmore-The-EUETS-Market-stability-reserve.pdf 263.51 KB
Adam Whitmore , Chief Advisor, Energy and Climate Change Policy, Rio TintoBorder-carbon-adjustments.pdf 274.04 KB
David Kennedy, Committee on Climate Change Provides a detailed overview of the CCC’s Fourth Carbon Budget, highlighting that the UK’s 2050 target of an 80% emissions reduction remains appropriate and that by 2030 the UK should aim for a 60% reduction. It calls for legislation for the Domestic Action Budget to take place now, including moving to the Intended Budget for the non-traded sector, during the UK’s second and third carbon budgets (via domestic abatement), but keeping options open to go further if a global deal is achieved. Policy implications of adopting the Fourth Budget are set out, including: electricity market reform and a carbon price underpin; support for the development of new technologies and markets; and making a step change to deliver the first three budgets.The Fourth carbon budget CCC 2011 Compatibility Mode.pdf 1.45 MB
Adrian Gault, Department for Transport The context for sustainable transport is set out in respect to UK CO2 emissions and the literature that that has examined climate change and transport, including the Stern Review, the 2005 Eddington Study and the Climate Change Bill. Towards a Sustainable Transport System is the transport department’s response to these reports and policies, and it describes: the role of the transport sector in meeting the challenge of climate change and delivering economic growth; the policy and investment plans through to 2014; and a new approach to strategic transport planning for 2014-19 and beyond. This takes account of Stern’s point on the costs of action or inaction, and considers the different pathways for carbon reduction. Options examined include: carbon pricing; technology and innovation; and removing barriers to change. An overview of transport policies that are helping to reduce emissions is provided, along with details on the sources of evidence for tracking emissions. Several underlying challenges are set out in respect to the links between income and distances travelled, the ‘long tail’ associated with transport infrastructure and Read more…
Tags: Adrian Gault, Biofuels, Carbon pricing, Carbon tax, Climate change, Climate Change Bill, CO2, Department for Transport, Electric vehicles, Emissions, Fossil fuels, GDP, Growth, parker seminars, Stern Review, transportTowards a Sustainable Transport System 2008.pdf 2.22 MB
Professor Michael Grubb, The Carbon Trust There are two main discourses around carbon, the first relating to what the cost of carbon should be. It is suggested that setting a legally-defined long term 2050 target is consistent with the literature on the economics of the problem. Secondly, what instrument is best to put a price on carbon is discussed, with a recognition that a rational approach needs to be international, but has to take account of additionality and political economy. It is suggested that basing a UK carbon price instrument on the EUETS makes sense, if the limitations of the EUETS are acknowledged and can be addressed over time. It is recognised that climate change creates some fundamental dilemmas in terms of how to enable investment in low carbon, with current theories not being adequate for the needs of policy; also it is suggested that neither the EWP nor the UK Climate Change Bill really solve the problem of low carbon investment security.Valuing Carbon 2007.pdf 331.3 KB
Professor David Newbery, Cambridge University As well as comparing the 2003 and 2007 Energy White Papers, progress since 2003 is set out. For different sectors, an overview of energy prices and CO2 emissions is given; and policies to increase low carbon investment are discussed (ETS, Climate Change Bill, RO and improved planning). Key themes and their implications for energy prices are discussed, including: carbon pricing; security of supply; electricity investment; large scale low carbon generation; and the renewable transport fuel obligation. In summarising the White Paper, it is highlighted that: energy taxes and subsidies still not mentioned; there are no reassurances of floor price to CO2; ROCs are retained, but are a costly solution; otherwise the EWP has some good intentions, such as policy developments around nuclear consultation, planning, and better information.
Tags: 2007 conference, Carbon pricing, Climate change, Climate Change Bill, CO2, David Newbery, Electricity, Energy White Paper, Energy White Paper:an academic critique, Infrastructure, Pricing, Regulation, UKEnergy White Paper Overview 2007.pdf 276.82 KB