By David Boles

Tomorrow will see the official release of the 2050 Roadmap, which should shed some light on whether or not the European Commission will alter the GHG mitigation target from 20% to 30%. A report by the European Climate Action Network (CAN-E) illustrates the benefits to adopting the higher target. The premise of the paper is that the sooner that action takes place the less it will cost in order to reach the 2050 target of 80-95%. This is backed up by statistics from the International Energy Agency which estimates an additional global cost of €300-400 billion per year if the development of low carbon technologies is delayed.

The cost of this move is estimated by the European Commission to be between 0.2% and 0.3 % of GDP. Recent studies by the likes of Ecofys and others, estimate that GDP gains of approximately 10% will result from the higher target by 2050.

The increase target would also have a knock on effect for the price of carbon. By increasing the target to 30%, a cut of 1.4 Gtonnes of credits will be taken from the EU-ETS. The effects of this are likely to increase the price of carbon to an estimated €30/tonne by 2020. This should generate an additional €70billion revenue for European governments through the auctioning of EUA's.

Employment figures are set to benefit from the increased target. The European commission estimates that 2 million additional direct and indirect jobs will be created in the EU's renewable energy sector.

If Europe moves to a 30% target, the European Commission estimate likely savings of an estimated €30.5 billion on health care due to cleaner air.

Other News:

• The National Emissions Registries of Austria and Poland are to reopen today. This will bring to 15 the number of registries that will have resumed normal operations following the suspension from 19 January 2011 of transactions, except for the allocation and surrender of allowances, in all EU ETS national registries due to cases of cyber theft. The registries of Belgium, Estonia, France, Germany, Luxembourg, the Netherlands, Portugal, Slovakia, Spain, UK, Bulgaria, Ireland and Norway have already resumed operations.
• Emission allocations data for the aviation Industry were published today, based on historical emissions , aviation will be included in the EU-ETS cap and trade from January next year. 212.9 million permits have been allocated to aviation for 2012.
• EUA's test 9 month high on back of bullish gas and oil prices.

   

By David Boles

Tomorrow will see the official release of the 2050 Roadmap, which should shed some light on whether or not the European Commission will alter the GHG mitigation target from 20% to 30%. A report by the European Climate Action Network (CAN-E) illustrates the benefits to adopting the higher target. The premise of the paper is that the sooner that action takes place the less it will cost in order to reach the 2050 target of 80-95%. This is backed up by statistics from the International Energy Agency which estimates an additional global cost of €300-400 billion per year if the development of low carbon technologies is delayed.

The cost of this move is estimated by the European Commission to be between 0.2% and 0.3 % of GDP. Recent studies by the likes of Ecofys and others, estimate that GDP gains of approximately 10% will result from the higher target by 2050.

The increase target would also have a knock on effect for the price of carbon. By increasing the target to 30%, a cut of 1.4 Gtonnes of credits will be taken from the EU-ETS. The effects of this are likely to increase the price of carbon to an estimated €30/tonne by 2020. This should generate an additional €70billion revenue for European governments through the auctioning of EUA's.

Employment figures are set to benefit from the increased target. The European commission estimates that 2 million additional direct and indirect jobs will be created in the EU's renewable energy sector.

If Europe moves to a 30% target, the European Commission estimate likely savings of an estimated €30.5 billion on health care due to cleaner air.

Other News:

• The National Emissions Registries of Austria and Poland are to reopen today. This will bring to 15 the number of registries that will have resumed normal operations following the suspension from 19 January 2011 of transactions, except for the allocation and surrender of allowances, in all EU ETS national registries due to cases of cyber theft. The registries of Belgium, Estonia, France, Germany, Luxembourg, the Netherlands, Portugal, Slovakia, Spain, UK, Bulgaria, Ireland and Norway have already resumed operations.
• Emission allocations data for the aviation Industry were published today, based on historical emissions , aviation will be included in the EU-ETS cap and trade from January next year. 212.9 million permits have been allocated to aviation for 2012.
• EUA's test 9 month high on back of bullish gas and oil prices.