1 / 22

The EU Quota System – How it works and why you need to switch

The EU Quota System – How it works and why you need to switch. Arno Kaschl DG CLIMA – European Commission Dublin, 4 December 2017. Rationale. Fgas Emissions 1990 – 2015 (EU). Source: EEA. The chosen mechanism. Characteristics of phase-down. Fast inital slope

lwood
Télécharger la présentation

The EU Quota System – How it works and why you need to switch

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. The EU Quota System – How it works and why you need to switch Arno Kaschl DG CLIMA – European Commission Dublin, 4 December 2017

  2. Rationale Fgas Emissions 1990 – 2015 (EU) Source: EEA

  3. The chosen mechanism

  4. Characteristics of phase-down • Fastinitalslope 2015: freeze @ 2009-2012 levels • 2016: 93% • 2017: pre-chargedequipmentcovered by quota system (>10% of market of top of phase-down step) • 2018: 63% plus pre-chargedequipment

  5. Phase-down quota system Upstream Market Measure: Reduce HFCs imports and production (measured in CO2eq.!) in 3 year steps by 80% (2030) • CompaniesimportingorproducingHFCs (bulk!) getHFC quotaeveryyear (in CO2eq)  more metrictonnesforclimate-friendliersubstances can be sold • A company can only place quantities of HFCsonthe EU market up totheirquotalimit • All HFCs in Precharged RAC equipment need to be accounted for in the quota system from 2017

  6. Theory behind "phase-down" • Quotas •  Scarcity •  Rising Prices •  Incentive touseclima-friendlytechnologies, reclaimgases, preventleakage… • All sectorsare in the same boat •  innovationtakesplacewhereeasiest, cheapest •  complancencybysome will affect all •  softnessofthelandingdeterminedbythesumof all actionsofmarketplayers GWP-metric High GWP gases will bemoststronglyaffectedbypriceincrease

  7. Facing the Phase-down • Pricesforhigh GWP gases riseifusers do notswitch to low GWP equipmentquicklyenough The initial slope is rather steep!  Changes will be noticeable quickly! • Today: GWPaverage= 2000  2030: GWP 400 (21%) • i.e. a GWP 700 solutionis in principlenotsufficienttocomplywiththephase-down in thelongrun… • Thereislots of potential to reduce the use of GWP > 2500 (404A, 507)  407c,f; 448A/449ª; CO2 transcritical, cascadesystems •  Operatorsinvesting in new equipmentmustseekgoodguidance!

  8. Prohibitions Lots of attention by stakeholders has been on the prohibitions • prohibitions are an absoluteendpoint ("red light"), but action isoften possible muchearlier and isnecessary/makeseconomicsenseunder the scenario of a phase-down • Twoimportant bans: • Ban on servicing • Ban on supermarketcentralisedsystems

  9. Gas Prices

  10. Gas Prices (2)

  11. Phase-Down Compliance • Source: Upcoming EEA Report - Fluorinated GHG 2016

  12. Quota Allocation

  13. Implementation • Fgas Portal: company registration, HFC quotas, authorisations for precharged RAC equipment • Ex post company reporting by 31 March • Checking compliance and border controls • Guidance

  14. F-gas Portal Registration in the F-gas Portal isrequiredfor… • allcompaniesconcernedbythereportingobligations (Art. 19) includingequipmentimportersand destructioncompnanies • allcompanieswishingtoaskforquota [HFC Registry] • allcompaniesreceivingorsupplyingexempted gases (importfordestruction, feedstock, directexport, military use, semiconductor productionor MDI production) [HFC Registry] Howtoregister? http://ec.europa.eu/clima/policies/f-gas/reporting/docs/guidance_registration_f-gases_portal_en.pdf

  15. Pre-charged equipment • From 2017, pre-charged RAC equipment can only be placed on the market, if the HFC charge is covered by quota! How? • Filling in the EU (or even outside the EU), with HFCs bought in the EU, or • authorisation to use quota from a quota holder (producer/importer of bulk HFCs) for HFCs bought outside the EU • Need for a DeclarationofConformity http://ec.europa.eu/clima/policies/f-gas/docs/guidance_equipment_importers_en.pdf

  16. SME importers of equipment • Less admin burden: • (i) pooling system: • An equipment manufacturer, eg. an "authorisation manager", can obtain a larger amount of authorisations, and redistribute ("delegate") these to its importers • (ii) de minimis: • Joint workshop of customs and Fgas experts concluded that the yearly de minimis of 100t CO2eq would also apply to equipment (same treatment as bulk imports)

  17. Yearly Company Reporting • Entrancegatewayisthe F-gas Portal • Companiesmustfill in anelectronicreportingtemplate. Relevantfor: • Producers/Importers/Exporters of bulkFgases • UndertakingsdestroyingFgases • Feestockusers • Importers of prechargedequipment • Deadlineis 31 Marcheachyear! Verification: Companieshaveanobligation to havetheirreportsverifiedbyanindependent auditor

  18. BREXIT

  19. Take home messages  The driveristhephase-down quotasystem  Price signalshowsphase-down mechanismisworkingandisambitious • 2018-20 iscrunchtime  Whatyoucan do  Switchingtolow GWP alternatives whereeverandwheneverpossibleisthe smart thingto do  Installingnewequipmenttodaywith high GWP refrigerantwouldbe a hugemistake • Reducingleakageandreclaiming gas pays off! Energyefficiencygains  We will monitorthemarketdevelopments

  20. To know more.. http://ec.europa.eu/clima/policies/f-gas/index_en.htm Legislation: http://ec.europa.eu/clima/policies/f-gas/legislation/index_en.htm https://ec.europa.eu/clima/policies/f-gas/legislation_en#tab-0-1 Quota Allocation & Reporting: http://ec.europa.eu/clima/policies/f-gas/reporting/index_en.htm Alternatives: http://ec.europa.eu/clima/policies/f-gas/alternatives/index_en.htm Guidance documents: https://ec.europa.eu/clima/policies/f-gas_en#tab-0-1 Clima-hfc-registry@ec.europa.eu DG Climate Action, European Commission

  21. CO2 metric Converting tons CO2 equivalents to metric kilograms  Rules are less strict for users of low GWP technology

More Related