Apr 25 2016

MEP Fredrick Federley sets out his stall on ETS Innovation Fund

He wants

  • 150 M more EUAs for ETS Innovation Fund than proposed by the EC, and for them to be exclusively destined to projects to decarbonise heavy industry
  • to remove all provisions related to the distribution of projects among Member States, unlike the EC, which proposes ‘geographic balance’.

He likes

  • the EC’s proposal to increase the maximum reimbursement rate from 50% (in NER300) to 60% of relevant costs.

He revealed this in interviews with Bloomberg News and Carbon Pulse on 22 April.

  1. NER400.com’s comment

    Federley is from Sweden. Had there been, in NER300, no rules on the maximum number of projects a country could get, Sweden would have got more projects than all other Member States in the first NER300 funding round. (The EC has not disclosed enough information to tell whether this would be true for the second round.) The abandonment of ‘geographic balance’ rules is the position of Svebio — the Swedish Bioenergy Association — and Fortum, which describes itself as “one of the major energy companies of Sweden”. But Federley can expect resistance, as explained here.

    Federley proposes to take his 150 M extra EUAs from the Market Stability Reserve, allowing the release of an equivalent number of tons of CO2. They should be taken from another part of the Emissions Trading Scheme to allow the MSR to do its job of reducing the short- and medium-term availability of allowances.