Emissionshändler.com offers companies trading and consultancy services for the European Emissions Trading Scheme. Emissionshändler.com is a service provider for the middle and smaller participants of the mandatory EU emissions trading scheme, which is in addition to consulting services and support services also offer easy access to exchanges and trading markets for the purpose of sale, exchange and sale of CO2 emission allowances are given.
Emission News from Emissionshändler.com®
The emission letter appears about 12 times a year in German and English language (letter emission and emission News) and deals with issues around the European emissions trading. Here you can order your Emission News (paid or for free).
Significant Reduction of Free Allocation 2021 - Simplified Application Procedure foreseen for system operators
The ENVI package of the European Parliament's Environment Committee (Emissionshändler.com® reported in their Emission News 01-2017) became an EP package of the European Parliament on 15th February 2017. The European Parliament (EP) agreed at first reading on 15 February upon change requests of the EU commission's proposal about the advancement of the EU system's negotiable emission rights (EU-ETS). Tough negotiations over months between reporters of the different fractions about compromise opportunities preceded the proposal. Although the change package was already considered as an accepted compromise in the European Parliament's (ENVI) environment committee with a big majority of 53 to 5 votes by 7 abstentions, crucial votes on individual subjects still took place in the parliament's plenum. Change requests presented by industry-oriented representatives found acceptance – partially accompanied with surprise. More info in Emission News 02-2017(German version here).
Presentation of Probable Allocation Rules 2021-2030 – The ENVI Package brings unpleasant news for operators
System operators should prepare themselves for some unexpected developments with regards to the allocation rules for the EU-ETS of the coming trading period. The regulation package having been compiled by the parliament's ENVI environment committee exceeds more than clearly the commission's proposals. It sends a clear signal for an almost drastic shortage of certificates and includes bad news for many operators. For the first time Emissionshändler.com® points out which rules and modifications the next trading period will bring up and in which partial periods 2021-2025 and 2026-2030 request the fulfilment of which conditions and connections in order to achieve a free allocation. Furthermore the Emission News 01-2017 (German version here) explain what kind of price signals may be the result of such kind of political news and in how far a system operator is supposed to make his purchase decisions of the calendar year 2017 dependent from them.
Carbon Leakage and Windfall Profits in the EU-ETS - Taking Stock in the middle of the current trading period
The ”Carbon-Leakage Danger“ for the European industry and the much maligned “Windfall Profits” are themes which are repeatedly a target for lobbyists, NGOs, and media of the European emissions trade. According to the view of Emissions-händler.com®, the topics Carbon-Leakage and Windfall-Profits should be subject of a more objective consideration at the second half of the third trading period of the European emissions trade. This above all because studies were published which strengthen one or another myth and risk to lead the discussion about frame conditions for market participants of the 4th trading period in a wrong direction. In the Emission News 13-2016(German Version here) Emissionshändler.com® sheds some light on the rather unusual unity within the range of political parties in our neighboring country France, in terms of environmental and climate issues. In its article, Emissionshandeller.com also presents the opinions on how climate and environmental issues are viewed by ordinary French citizens.
Marco Mouly on the Run, some Highlights from the Life of the Last Great CO2 Tax Fraudster – French Power Problems
Marco Mouly, the „Chief Logistics Specialist“ of the biggest turnover tax fraud carousel Europe ever saw caused a damage of more than 1,700,000,000 Euro together with his accomplices. While his “colleagues” Jaroslaw Klapucki, the co-founder of the Polish Consus Group, and Arnaud Mimran, a French broker, poker player and bon vivant, were sentenced to 7 respectively 8 years of arrest by a Paris court on 7th July 2016, Mouly escaped from the French justice. Emissionshändler.com® allows some inside views how and why it could happen that such a damage occurred, what persons and institutions could have contributed directly and indirectly to it and what kind of partially mortal risks the participants of such a tax carousel took. A special focus will be set on the chief logistics specialist's character of the gang. Moreover Emissionshändler.com® will once again report in its Emission News 12-2016 (German version here) about the power cuts in France becoming more and more concrete. The power cuts result in an increased fossil power production above all in Spain, which could push up the EUA price again.
Will the EUA Price be driven by Technical Problems in the French Nuclear Power Plants' Park?
While Emissionshändler.com® reported in September about the plans of the French environment minister to push the EUA price upwards by means of a minimum regulation, this process seems to take place at present on a quite natural way. Due to more and more increasing technical problems in the French nuclear power plants' park consisting currently of 58 atomic reactors, which produce roundabout 75% of the French electric power, the need for EUA certificates to cover the fossil electric power production in Europe is constantly increasing. Probably almost the complete atomic power plants' park may be affected by the installation of security-critical elements. Their production can probably not be documented entirely or might even be the result of counterfeiting. The shut-downs and inspections resulting from these irregularities reach an extent which leads to a sharp increase of the electric power price and EUA price. Emissionshändler.com® reports about the background in this present Emission News 11-2016 (German version here) issue as well as about a new emissions trading system of aviation which is supposed to be applied worldwide until 2021.
Price Drop of Certificates: France strives for EUA Minimum Price of 20 Euros per ton – Polish CO2 Trade and Donations
A price corridor of 20 - 30 Euros/t for emission rights is left for an immediate discussion by the French government. The price for an emission certificate is supposed to be increased to at least 20 Euros, preferably to 30 Euros/t as soon as possible according to the idea of the French government having been presented by the environment minister Ségolène Royal, and an expert body at the end of July 2016. The main subject was the certificate price: how to increase it as fast as possible still in 2016 in order to quit the present price level lying partially below 4 Euro/t. Emissionshändler.com® informs in their Emission News 10-2016 (German version here) about the French government's proposal and idea regarding the current EUA drop-off in price. Additionally, however, reports about the backgrounds will be continued. How could it happen in Poland that Jaroslaw Klapucki, second main suspect in the CO2 turnover tax fraud trial, remained unpunished in his home country Poland until today and could only be held accountable in France in the Ellease process?
Also the Analysis of the Germany Environment Agency attests partial severe technical Problems in the EU Register
Not only the ERGOSIGN expert opinion about usability of the European CO2 register commissioned by the German Emissions Trading Authority DEHSt is a discussion topic at present but also a labour-intensive analysis of the Germany Environment Agency UBA about the need for harmonization in the EU emission trading process. Beside many aspects to administration, various chapters report about the “user unfriendly and extraordinary cumbersome system” of the EU register. As this analysis of the Germany Environment Agency UBA furthermore reports in detail about “partial severe technical problems” and security incidents, responsible employees of system operators should take the opportunity and study once again more detailed the results of the DEHSt expert opinion. This is especially true because DEHSt Departmental Head Dr. Thomas Schütz commented on the expert opinion: "Because of the discovered and documented deficiencies of the Union Registry the national registry administrations and also companies and corporations are impacted by additional outlays and related costs, which are not necessary." As already started in the previous Emission News, Emissionshändler.com® report in detail in these present Emission News 09-2016 (German version here) about the ERGOSIGN expert opinion of the German Emissions Trading Authority DEHSt but also about the analysis of the Germany Environment Agency UBA about the register.
German Emissions Trading Authority's Expert Opinion Pulls the EU Register to Pieces – Consus CO2 Fraudster Klapucki Sentenced to 7, Mimran to 8 Years of Prison
The EU register with its software has been in the focus of criticism ever since its introduction in June 2012. Authorized account holders of system operators are forced to occupy themselves with the matter at least two to three times a year, and this if they intend (and are forced) to execute only the most necessary transactions. Dangers and risks lurking in the context of these activities have been confirmed indirectly and officially by now because a German Emissions Trading Authority's expert opinion attested a complete non-usability on the level of a Word 4 application with MS DOS. Besides, the application of this system causes severe critical and serious problems which use to be the rule and not the exception. Division Managers, Managing Directors, and Board Directors of enterprises being subject to emissions trading are recommended to occupy themselves once again in particular with these questions as it is known in the meantime that the EU has no plans for essential modifications on this software in the coming years. The present Emission News 08-2016 (German version here) include the essential results of the expert opinion. Moreover, the latest occurrences before the start and after completion of the French Ellease case will be treated.
Swing to the Right in Poland Leads to Changes in the Country's Coal and Climate Policy
Since the right wing party PiS took over in Poland, their plans regarding energy and climate policy become more and more obvious. Political and economic objects are targeted by methods of a strict party membership management and are put into practice in breath-taking speed. The fact that strange kinds of persons are installed in leading positions, this partially in bizarre night and fog actions, is rather a means to the end. As coal and workplaces are central subjects in Poland, the present leading party PiS now ruling with an absolute majority will have to find quick solutions for the existing severe and acute problems – even if the solutions will harm considerably the country's energy economy at national level and probably also at municipal level in the future. Emissionshändler.com® as the leading CO2 trader in Poland asked around and investigated for many months in the country. The results can be found here under Emission News 06-2016 (German version here). Not only Polish industrial customers and heat suppliers should be interested in this news because effects on Poland's climate policy may certainly occur soon in Brussels.
Article 35(2) of Regulation 389/2013 Being massively disrespected by German Operators – EU Publishes Emissions and points out Law Violations
The VET entry per 31st March, meaning the annual reporting of previous year's emissions to the EU, rigorously went wrong for 63 stationary German operators as well as for 10 airlines being registered in Germany. Moreover, their register accounts have been blocked for the moment as Doctor Schütz, the register account's line manager of the German Emissions Trading Authority DEHSt confirmed towards Emissionshändler.com® on 4th April, 2016.* According to article 35 (2) of the EU Register regulation 389/2013, the emissions of the previous year have to be reported to the EU register by means of a so-called VET entry until end of March, enabling the EU to obtain a complete overview of all emissions of all EU operators, thus achieving the position to make internal calculations and controls.
The list of verified emissions having been published 1st April 2016 at noon now exposes surprising insight in how far also German enterprises failed to obey this deadline dictated by the law.
Discovering who disobeyed the deadline became possible because the EU register identifies all emission values that have not been registered in time. On this way enterprise data can be recognized. If the data are double checked in the EU-Registry by means of the “permit number”, the violations are shown there, too, and the most relevant data of the enterprise (including possible infringements of previous years) are completely recognisable. Emissionshänd-ler.com® describes in this present Emission News 05-2016 (German version here) which branches and which enterprises – even with a fine-sounding name – obviously disobeyed this legal requirement according to the indicated lists of the EU and of what approximate emission amounts we are talking about. We are basing our report on the correctness of EU statements as per 1st April 2016, probable mistakes from part of the EU organs on elaboration of the list could not be verified, neither could the question if enterprises listed completed the VET entry within the following days or in the further course. * Emissionshändler.com® itself can naturally not verify if an account closure really took place and thus makes this statement with reservation.
Penalty Risks for System Operators - Technical Reasons and Liability without Culpability according to the ECJ Judgement
The ECAS system and its problems with mobile communications as well as technical insufficiencies around the VET entry characterize the authorized account holders' workflow process in March of a running year. In this context a special attention should be drawn to the fact that a huge number of different technical reasons can cause an account lockout which can be avoided, however, by means of comparatively simple protection measures. Emissionshändler.com® describe in the 2nd Part of Emission News 04-2016 established here how and in which form account lockouts and account closures can arise and how they can be avoided so that no risk for a penalty shows up. Especially the technical aspects on the system operator's side are awarded with detailed explanations.
Liability Risks for System Operators of the EU Emission Trading – Also appointed Employees are concerned by the Law governing Administrative Offences
If the managing directors or executives of mandatory emissions trade's system operators try to get informed about possible risks in this field, they just use to hear the words “100 Euros fine per ton CO2”, an amount which becomes due at the end of April for the past year in case of a non-submission. Without further detailed knowledge about the subject, however, the question arises less frequently how commissioned employees happen to commit such a failure and how, above all, this scenery of a penalty duty could be avoided economically. It is amazing that operators rarely or never ask themselves how liability risks in accordance with the Administrative Violations Law OwiG happen to be managed and who in the Company would in which way be held responsible. In fact the administrative offences seem to contain a kind of direct liability which finds its way through to commissioned employees as there are authorized account holders and annual report authors. It means that not only managing directors and executives are held responsible for administrative offences. Emissionshändler.com® explains in the first part of Emission News 03-2016 (German version here) drawn up here how and in which form liabilities in accordance with OWiG arise, on which level of the EU and the national legislation they find application and how these risks can be reduced in a way that is economically representative. Also criminal aspects will be treated here.
The Predictability of EUA Volatility at the Beginning of a Year - Emissions Limits in Construction Plans Threaten Systemerators
Since many years, January and February use to be the months where potential gamblers make a lot of money in the EUA market, systematically and in a big style. This way of action which can be observed for 6 years already since 2011 - with one (half) exception in 2015 - could mean a chance for ordinary market participants like system operators but can also mean a high risk if the participation in the trade started at the wrong moment. Price fluctuations at an average of 33.2% having been observed in the years 2012-2016 took place exclusively in January/ February. A clear explanation of this fact is that the high surplus of up to 2.4 billion EU-ETA certificates is laying to a big extent in the hands of professional gamblers who either push the price upwards or downwards. How this development took place and continues in January 2016 is explained in the Emission News 02-2016 (German version here) of Emissionshändler.com®. We furthermore add a guest column of Attorney Dr. Marc Rutloff. He reports about an expanding method to fix emissions restrictions in construction plans. These restrictions may include a sudden reduction of the acting radius of local system operators.
Paris Agreement Could Downsize Carbon Leakage List - Integration of Road Traffic into EU-ETS Can Push Up Prices
Considering the Paris Agreement's results in detail and reflecting who made which statements on site not only to the Agreement but also about future plans in the EU-ETS, certain subjects attract attention. These are worth being scrutinized closer with regard to the European Trading System and its possible price development. Especially the intended linking of a Chinese ETS with the EU-ETS being planned for 2017 could lead to stronger shortenings on the CL list which consequently could cause a shortage of emission rights thus producing a price increase. But also various statements of the EU Commission's responsible Chief Executive Jos Delbeke make us listen carefully. Mr Delbeke considers the integration of road traffic into the emission trade as definitely positive even if it will primarily only be realised in Germany. This possibility having been proposed by the bvek already years ago could still withdraw additional emission rights from the EU-ETS, if requested. Furthermore Emissionshändler.com® list up in their Emission News 01-2016 (German version here) how certificate amounts and price information can be detected at the beginning of the year in order to integrate them into the balance sheet.
Facts on the Paris World Climate Agreement - Is the EUA Victim of a Decarbonisation?
The "Paris Agreement" which was concluded by the Parties' Conference of the UN Framework Convention on Climate on 12th December 2015 will influence the nations' handling with the climate for decades and will replace the old Kyoto protocol beginning 2020. Emissionshändler.com® describes once again in the second part of this Emission News 13-2015(German version here) what consequences would have been occurred respectively will occur in case of a failure of the Paris negotiations if the realization of the agreement will not be successful in the coming years. The first part of the letter, however, includes the most essential results of Paris and describe the probable effects on the EU emission trade and its price development which might appear already in the coming days and weeks.
Connection between MzB (Notification to operation) and Monitoring Plan becomes more and more apparent to Operators - Update of Annual Account Data
While almost all operators in the EU are invited to submit their Notification to operation (MzB) to their authority already in December, German operators will do this only in coming January. The earlier German operators have the chance to elaborate a correct MzB for which the monitoring plan can play an essential role. This is of importance because the verifier is obliged on the verification of the emission report to check simultaneously if the information about the enterprise was drawn up in accordance with the demands of the approved monitoring plan and reports about the plant situation in a correct way. Due to the extremely detailed verification of the MzB by the national authority DEHSt, the very high risk occurs that a reduction of free allocations will be determined because certain modifications took place in the plant or its operating method changed. In order to avoid probably such unintended effects - also by means of a monitoring plan updated still in this year - Emissionshändler.com® offers advice for the very complex connections between the various reports and the monitoring plan. Furthermore Emissionshändler.com® reports in this Emission News 12-2015(German version here) about some innovations on the annual update of an operator's account data.
Cybercrime in Online Banking Could Harm Safety of Union Register - 3 Years Updates Occurring
Incorrect activities of authorized representatives in the register might cause the possibility of a certificate theft in case of an insufficiently secured mTAN procedure. Due to fraud series with stolen mobile TAN numbers (mTAN) in online banking leaked out lately the question arises in how far certificates of the Union register's account are still safe if simultaneously authorized representatives of a system operator violate the register regulation's rules. Emissionshändler.com® examines in its Emission News 11-2015 (German version here) being presented here the possibilities and procedures leading probably to a possibly successful cyber theft of certificates (as already happened in 2010). We furthermore report about the running invitations of DEHSt to update data being necessary for the opening (at that time) of an investment account of the system operator as well as about personal data of the relevant authorized representatives. We also reproduce in a foreign reporting from BBH a survey about the level of the financial market directive MiFID II and how this would impact on system operators, traders and public utilities.
Access to Register Account only possible with updated safety standards – Authorized Persons are requested to apply for it safely and correctly
The safety standard for the encryption of web pages for access to register accounts will be increased by the EU register beginning of October 16. The fixing on TLS standard 1.2 means a direct request for action for up to 25% of account representatives, according to the opinion of Emissionshändler.com®. Users whose browser version only deal with the former TLS version 1.0 will have to undertake safety improvements on their browsers in the best case, the worst case could cause them to replace it by a completely new one. Emissionshändler.com® explains in their Emission-News 10-2015 (German version here) which individual browser version requests what kind of modification on the adjustments and which browsers are concerned to what extent. We furthermore point out which one of the present procedures needs special attention of the responsible persons, this for the modification of a password in ECAS as well as for the application and replacement of account representatives. The special attention is needed because irritating false system reports may in fact lead to avoidable insecurity.
Sanctions for wrong declarations being detected after submission in a verified emission report - EuGH expresses protection of good faith
Can a plant operator rely on the information of its audited and rated as satisfactory annual report on the emissions? Or will he have to fear sanctions if too few allowances were issued, because it turns out in retrospect that his annual report was flawed? This question for protection of good faith in the rightness of the verified and approved emission report is of principle meaning for plant operators. After all, a certain error rate is immanent for emission reports and besides, the threatening sanctions are considerable. An article by Attorney Ruttloff in our Emission News 09-2015 (German version here). Furthermore Emissionshändler.com® reports in his third and final part of a final criminal fraud with VER / CER credits and provides information on how to avoid it.
CO2 Certificates Investment scams for individuals, Part II - Will we see emission trading for road transportation ?
As we have already started our Part I in Emission-News 03-2015, Emissionshändler.com® reports on the fraudulent activities of brokers and traders who sell in the context of a "Green Investment Hype" worthless CO2 allowances to medium-sized companies and individuals, and always try to entice new customers with promises of immense value increases. This obviously known scam, that has fared already for several years still attracts private customers and small and medium-sized businesses who are looking in the vicinity of a zero interest rate policy for salvation in an industry in which not only high yields but also the satisfaction of a green conscience is promised. In the present Part II we review the methods of fraudsters in detail and give first hints on how you can protect yourself. In Part III, presented in August 2015, it be explained in detail from the perspective of a fraud victim, how the approach and the exploitation took place. Furthermore we report in our presentEmission-News 08-2015(German version here) on first ideas in Europe from 2021 to include road transportation in the emissions trading scheme and on what this would potentially cost the individual car driver or a truck.
A branch comparison of allocations indicates potential raises of individual claims due to technical modifications
After two years of free allocations for German plant operators within the third trading period it seems to be possible for the first time that a reliable comparison of allocations within one industry branch or one activity can be made. Not many plant operators might have taken notice of the DEHSt report (VET report 2014) end of May 2014 which offers a larger set of data after the two reporting years 2013 and 2014. However, this conclusive report should first of all be interesting for plant operators of the industry because comparative figures that are listed show the quantity of their free allocations and, above all, of their own industry branch. The paper shows a comparison by means of a so-called "equipment level" calculated by the DEHSt. The "equipment level" is the percent product of free allocations of a branch (activity) and the calculated annual emissions (VET). Emissionshändler.com® analyses in its presentEmissions News 07-2015 the data and enables operators to realize conclusions in the context of special lawful rules, if and under which circumstances a supplementary increase of allocations could be made possible.
Market Stability Reserve to be introduced in 2019 but already shows effects - Invalid CER have to be removed from Accounts
The Market Stability Reserve MSR will be introduced in January 2015 but takes influence on EUA price already now. Contrarily to the expectations of most market participants, certificate prices did not fall after April 30 settlement date but continued to rise. Gripping in advance to agreed MSR and its price stability effects, some industrial investment operators, in any case speculative market participants, however, seem to stock up with more and more certificates with the aim to cash up later. Emissionshändler.com® takes the opportunity in the present Emission News 06-2015 to explain the function of the now coming MSR and the expected price movements in the years to come. Furthermore our Emission News proposes how account holders should act with remaining and now invalid CER/ERU in their register accounts.
Confirmation of EUA-returns with new ECAS software - Prevention strategies against interference in the register
The upcoming annual year returns of certificates to the register, which are about the amount of last year's emissions, are in April again coming into focus of the tasks at hand for the account representative. This, however, must be done now in April 2015 under severe conditions. By 02.April, not only ECAS software requires the attention of the authorized representative but in particular the continuing problems of ECAS mobile authentication system. However, the fact that these problems appear since January 2015, and in April – for the return of the certificates – the problems are still not resolved, cannot, even under closer inspection, lead to any legal claims. An analysis of the problems’ causes by Emissionshändler.com® and possible strategies to avoid access problems to ECAS can be read in our Emission News 05-2015, and it indicates that the causes can be viewed as a commercial problem to bypass such technical shortcomings.
CO2 exchange, emissions report and VET entry in registry - Characteristics and pitfalls that should be noted in March
Plant operators creating their yearly emissions report at the end of March, and the VET-entry (Verified emission Table = entry of the emission in the registry account) should give some things their attention, as reported in this issue of Emissionshändler.com® letter. The preservation of trade and business secrets, the correct and timely order in VET-entry, the note of (non-existent) N2O and PFC emissions, as well as giving away any gains from trade of CERs / ERUs in EUA certificates are issues related to the VET-entry should not be missed out. Furthermore Emissionshändler.com® provides in this Emission News 04-2015 an interview with Jürgen Hacker, chair of the Federation of emissions trading and climate change on the future of the EU ETS as well as the quantities and price aspects of the planned initiative of market-stability reserve MSR.
ECAS access problems present risks to account agents - CO2 certificates serve as an investment fraud for individuals and small enterprises
The ECAS authentication system increasingly stresses market participants in Europe, which is represented as an account manager for access to the Emissions Trading Registry and shall allow as a trader daily transfers in the market. From its easy access to the register at any time depends on whether the legal activities of the given company can be processed at the prescribed deadlines or otherwise suffer high penalty payments. If the necessary access to the ECAS SMS either not possible or not possible on time or not in full or not in legible form, then arises a question of what is or could be a possible alternative for it. In particular, if the national authority or the ECAS helpdesk cannot provide any immediate corrective actions. More detailed information and possible solutions are in ourEmission News 03-2015. Furthermore, we give in our Emission News a summary of the preliminary decision on the reform of emissions trading, which has been discussed on 24/02/2015 Environment Committee of the European Parliament, and which also could be a sign of medium term rising EUA prices. Finally Emissionshändler.com® addresses the criminal activities of brokers and dealers who sell in the context of a "Green Investment hype" worthless CO2 allowances to medium-sized companies and individuals and advertises promises of huge increases in value.
Legally compliant emission trading is challenge for plant operators Is there an reporting problem for Combined Heat/Power engines?
Legally compliant and simultaneously economically operated emission trading for system operators in Europe turns into an all-time growing challenge. The growing complexity of legal regulations and administrative tasks that had to be done “by the way” by the responsible staff stands against the loss of financial revenue from emissions trading since 2013, previously an effective and economical management of this special region was not mandatory in the company. In order to take account of these changes plant operators in greater numbers than ever will also have to think about to what extent the legal compliance and efficiency can be ensured by its own staff, or whether they should be selectively supported by external professionals or alternatively if all tasks should be carried out in part or in whole by highly specialized Services. Our here presented Emission-News 02-2015 (German version here) will report about the individual problems and tasks arising, as well as possible solutions. We also provide in our Emission-News an overview of possible problems regarding the reporting of lubricating oil in KWK engines.
Ministry of Economy provides funding for energy consulting - Small and medium sized companies can benefit
With the enactment of the German Directive on the promotion of energy consultancy for SMEs to 01.01.2015 a funding program was launched for small and medium-sized enterprises (SMEs), which also applies to operators in the mandatory emissions trading if they comply with certain conditions. As the energy efficiency of these operators, due to low CO2 prices and consequent lack of willingness to invest, continues to show high energy savings potential for efficiency improvement, many operators can also achieve multiple simultaneous cost-saving effects in relevant activities in individual cases. By a non-repayable grant in an energy efficiency consulting, operators may be able to save as a result not only through a reduction of primary energy costs but also still receive higher allocations as well as reduce costs for the purchase of emission rights (see also Emission-News 13-2014). In our present Emission-News 01-2015 (German version here) we address the concrete steps that should be taken by an operator now in January, in order to secure the up to 8,000 euro subsidy for an energy efficiency consulting.
New EU targets for reduction of primary energy consumption - Also installations in emissions trading benefit from new funding
In October 2014 the European Union has established in its energy and climate package to reduce the consumption of primary energy at least by 27% until 2030 (in relation year 2007). The German Federal Government has established a Cabinet decision on 12.3.2014 that as an immediate measure, the National Action-Plan Energy Efficiency (NAPE) enters into force on 01.01.2015, which will launch major initiatives and support programs. Alongside also a funding program for small and medium-sized enterprises (SMEs) applicable was launched, which also applies to operators in mandatory emissions trading if they comply with certain conditions. The underlying idea of the funding principle of improving energy efficiency applies in principle also to installations in mandatory emissions trading. As the current energy efficiency in these installations does, due to low CO2 prices and consequent lack of willingness to invest, continue to show high potential energy savings for efficiency improvement, many operators can implement further cost savings here. For this reason Emissionshändler.com® demonstrates in his Emission News 13-2014(German version here) not only the technical potentials that can lead to energy cost reductions but moreover the potential for savings and increase of CO2 emission rights, which are often in a direct relation.
EU Council sets a new framework for the climate targets until 2030 - EUA certificates prices raise significantly
Despite or even because of the half-baked and generally formulated proposals of the EU Council regarding a framework for a climate and energy policy in the EU until 2030 one can observe a trend of rising certificate prices in the market. The schedule which has to be detailed by the Commission until March 2015 and the proposals to be completed by December 2015 could mean for plant operators who held back with necessary purchases of allowances, a significant financial burden if they postpone their demands further. This is significant mainly because the instrument of a market stability reserve MSR is increasingly becoming into the focus of market participants. To assess as an operator or market participant, to what extent one hand, these first ideas of the council and the following elaborated actual regulations can affect a EUA price upwards we need to take a closer look. The present Emission News 12-2014 examines this fact and on the other hand how the currently hidden 900 million backloading certificates can act in opposite market directions (with or without MSR). So the “Conclusion Paper” from the Council of 23 / 24. Oct. 2014 is considered in more detail here, especially the first time mentioned possibility for a one-time withdrawal of certificates from the trading system.
CO2 tax fraud is followed by black money laundering and lending transactions with certificates
Starting in 2008 VAT fraud with CO2 certificates have cost EU member states since 2011 at least 5 billion euros. After those "business models" of criminal gangs have been put to use also in electricity and gas trading industry of the EU, nowadays not only the financing of terrorism but also the normal CO2 black money laundering moves into the field of view of market participants. The lending of EUA certificates of plant operators to domestic and foreign traders as well as the cheap purchase of EUA for the purpose of building up some momentum may be typical signs of illegal activities of operators that can be considered with a little good as criminal transactions. Emissionshändler.com® like to draw attention with the present here Emission News 11-2014(German version here) to possible dangers to which operators are obviously exposed for some time with regards to all involved legal as well as in financial aspects.
MS regarding Carbon Leakage status to be reported until 01.10.2014 - Recalculation of allocations for Airlines
After returning from their summer holidays, most plant operators can expect a “To Do” from the DEHSt, with a deadline for completion by 1st October 2014. With the addition of several PRODCOM-numbers more than 10% of industrial operators will get a chance to be added with their products to the Carbon-Leakage-List (and thus doubling their free allocation in part) according to estimates by Emissionshändler.com®. Therefore it may be necessary to resubmit the required information to the DEHSt by the aforementioned date. But even if there is only a very slim chance of a higher allocation according to an assessment of Emissionshändler.com®, at least half of the German plants operators will still have to create an appropriate notice in accordance with Regulation of 05. August 2014. Assistance and information about this topic and also about the specifics of the reorganization of free allocation to airlines you will find in our current Emission News 10-2014 (German version here).
ECAS cell phone / text message problems create obstacles for account holders to fulfil surrendering obligations
During middle of May and now again in June 2014 problems appeared between the ECAS (European Commission Authentication Service) and mobile operators for the umpteenth time about technical issues, in consequence of which a regular trade in emission rights was no longer possible for many plant operators and distributors. Due to the failure of the second authentication channel (not receiving SMS on the mobile device is possible) entrants no longer could execute partial transfer any certificates in the register in the period 27.06.-04.07.2014 and thus were unable to meet even their surrendering / delivery obligations. Thus, millions of EUR for potential recipients of the certificates were then paid too late or not paid to trading partners at all. Since such a malfunction of the register according to estimates by Emissionshändler.com® can occur at any time again, each authorised account holder should secure oneself against these kind access problems, as these could of course also repeat in sensitive times such as the mandatory surrender allowances in April of each year. How this can be done and the circumstances under which these solutions can be used as well as the legal implications this may have on the delivery obligation - plus a run-up on the latest legal requirements for ETS in the aviation world - is described below in our current Emission-News 09-2014 (German version here)
Forest and forestry certificates - Development, Utilisation, Perspectives in voluntary and mandatory Emissions Trading (Part II)
As we already begun in the previous Emission News in Part 1, we hereby continue our article on forest and forestry certificates. We report on the development of VER-forest certificates, their use in the voluntary carbon markets, through various conservation categories and about the likely (non-) perspectives in the mandatory EU Emissions Trading Scheme. Our Emission News 08-2014 (German version here) uses the summer break in the EU-Emissions Trading to illuminate this neglected issue parallel to the Paris World-Climate-Conference in 2015. Here it could happen that the community agrees on a deal to set new ambitious climate targets and thus forest certificates can again come to the limelight.
Backloading alone is no longer sufficient, a stability reserve is re-quested to support the EUA price - All about Forest Emission Rights
The EU Commissions plans for further support of the EUA price that have become public since January have been further specified in the last weeks. In addition to the already commenced Backloading Process a Market-Stability-Reserve (MSR) shall now to be established that limits the excess emission rights that are available in the system. Whether or not MSR will not start until 2021 or perhaps earlier and if this is combined with a set-aside or even with the final shutting down of emission rights is certainly going affect the price of emission rights to greatly in the future. This is at least theoretically offset by the additional approval of forest emission allowances in the EU-ETS pursuant to Article 28f of Directive as long as a provided signature of defined climate targets is agreed on internationally in the coming years. The operation of the MSR as well as to the formation and use of forest emission rights, this clarified by Emissionshändler.com® in this Emission News 07-2014 (German version here).
CER-Exchange rates not exploited by many operators in EU - Polymer chemical plants reignite fight over 100.000 tons of CO2
The exchange rates for CER/ERU into EUA published by the EU Commission on 02.May 2014 were a surprise for most emissions trading professionals, as these were still far below the general expectations. Instead of the expected quantity of up to 400 million tonnes for the tax year 2013 by European operators it was only 132.8 million tonnes, which was probably mainly due to the German plant operators or because of completely new legal rules for participants. About this new exchange method for "Old and New plants" in emissions trading and the chances of isolated high additional revenue - our Emission-News 06-2014wants to inform you (German version here). Furthermore, we highlight the dispute, which is obviously emerged between the EU Commission and the DEHSt which deals with the polymer production in the German chemical industry, which is to be protected by the German legislature to fulfil an obligation for the EU Emissions Trading and we cover the politically sensitive sanction notices of DEHSt against a high number of airlines.
Only the right combination of Register Account Represen-tatives ensures the timely delivery of EUA to the end of April
The delivery of allowances at the end of April, a procedure with which with most operators are already familiar, is essentially different in this year, compared to previous years. The EU-Register system implemented since 20.06.2012 has reached a new stage of development since 31. March 2014, where the authorised representatives who've been active for some time, not longer find their way in the system or worse - may even have troubles entering into it. The content of the most significant change in the registry account is that now there exist various "Qualities" of representatives there whose permissions apply to the execution of trans-actions and charges only in conjunction certain combinations and that it must be at least two involved representatives, for almost all types of transactions. But since not everyone can understand the operations of the front-connected ECAS authentication system, not all account holders can manage a timely delivery of the certificates until the 30. April. In order to demonstrate to account holders, authorised representative and the person legally liable can manage the navigation and delivery in the new register system and how occurring problems might be solved – Emissions-händler.com® has featured all issues here in the present Emission News 05-2014 (German version here).
Exchange ability of CER/ERU now ready - New Registry Regulation 389/2013 operators can now cause problems
The at the 20. and 24.Mar.2014 carried out update in the CO2-register now brought operators the hoped-for clarity how an exchange of CER/ERU in EUA certificates to the investment account is carried out in practice. The already at beginning of March 2014 implemented exchange function can now be used even if the previously-established data of the assessments of CER/ ERU of each plant operator could not be processed on the 20.Mar.2014 by the EU registry system. However, this small delay is likely to be less of a problem for several hundred account holders, since the practical implications of the new rules of the registry regulation and its implementation in the register software can do far greater damage than too late swapped certificates. The harmonisation and improvements listed in the far from operators rather less attention Regulation 389/2013 will be in April 2014 a higher number of account holders and their authorised representatives prepare partially massive difficulties to meet its legal obligations and to avoid heavy penalties. For this reason, in our Emission News 04-2014 (German version here) we will inform you about the main changes in a 1. part (Part 2 in our next Emission Letter on 08.Apr.2014).
Opposition period for the allocation notices - Reasons for object- tion and Opportunities because of technical installation features
The 2014 issuance of the allocation notices commenced on the 17. February 2014 was completed by the DEHSt on 28th, February. Starting from the point of receipt of the VPS message, the 1- month period for a possible objection begins for each operator. Because of the simultaneously performed account allocations for the years 2013 and 2014 many operators only realized now how much impact the general correction factor has and what other reductions for individual technical features of the system were listed in the allocation notice. The challenge now is to decide whether an objection is to be lodged within the prescribed period and what reason for this the operators could present. In addition some companies will now have to deal with the question in what form technical characteristics of the installation can be mapped in a revised or new deputy of allocation request to get more free allocations. Some of these options show on our Emission News 03-2014 (German version here) which also will address problems regarding the allocation in Poland, which is likely to have a higher impact on the price trend.
Free allocations 2013-2020 published - Early backloading and correction factor of EU drives up the price
The list of final free allocations for the years 2013-2020 for German plant operators was published on 27.01.2014. By applying the correction factor from an average of 11,5% - and the resulting reduction in allocation numbers - one or the other operator could rub his eyes the next morning, when looking at the events on the price trend. Since on 30.01.2014 the Environment Committee of the European Parliament decided for an early start of backloading, the EUA price was driven up from its already high level once again to 5,82 EUR/t. Now also German operator (with a few exceptions) have the assurance about the quantities of allowances that must be purchased in addition to 2020 - or how long their stock of own EUA will last - the immediate decision is when and at what price certificates should be purchased. The resulting alternatives and perspectives will be explained by our Emission News 02-2014 (German version here) and also the unpleasant mail that some plant operators received in this eventful week from the DEHSt that invalid CER/ERU must be removed within 40 days from the account.
DEHSt startet Antragsverfahren für Anlagenbetreiber in einem FMS „Beihilfe zu indirekten CO2-Kosten“
Attention: No english version available Eine gute Nachricht sollte es für einen Teil der Anlagenbetreiber sein, die in Deutschland dem EU-Emissionshandelssystem ETS unterliegen und gemäß den EU-Vorgaben in bestimmten Produktionssektoren einer Gefahr der Abwanderung in das EU-Ausland ausgesetzt sind. Aber auch Produktions-betriebe, die nicht im EU-ETS sind und unter die CO2-Richtlinie der EU, §10a, Abs. 6 fallen, können sich ab sofort durch den CO2-Handel verursachten Stromkostenanteile in Höhe von rund 5 Euro/MWh für das Vorjahr zurückerstatten lassen. Die gute Nachricht relativiert sich allerdings, wenn man weiß, dass die Beantragung in einem elektronischen FMS Strompreiskompensation noch um einiges komplexer ist als die der schon bekannten Zuteilungsanträge für die Periode 2013-2020. In diesem müssen historische Daten des Betriebes aus den Jahren 2005-2011 erfasst werden, die bisher noch nie benötig wurden sowie die Herkunft und Beschaffenheit des bezogenen Stroms durch Zertifikate des jeweiligen Energielieferanten nachgewiesen werden. Zudem muss das eigene Produktportfolio genau untersucht werden, inwiefern dieses mit den Vorgaben kompatibel ist und dabei auch noch beachten, dass eine erfolgreiche Erstattung von Stromkosten nicht einen eventuell parallel laufenden Antrag auf Befreiung der EEG-Umlage torpediert. Zu dieser finanziell interessanten Fördermöglichkeit und der von Emissionshändler.com® empfohlenen Vorgehensweise informieren wir auf unseren Webseiten detailliert unter dem Menüpunkt Strompreiskompensation und in unserem Emissionsbrief 01-2014.
Climat protection for low price!? - CO2-Trading in TV