Posted on 12/12/2004 10:57:41 AM PST by longtermmemmory
Greece lags in emissions trade
The European Union will launch its emissions trading scheme in February2005. But Greece, which missed an important deadline for joining last March,is racing to finish in time for the kickoff. Heavy penalties will ensue if they fail
COSTIS STAMBOLIS
The European Union is set to launch its pioneering emissions trading scheme early next year, in compliance with Kyoto protocol requirements. Greece is the only European Union country that still has not submitted to Brussels its national emissions proposal.
The deadline for national proposals was March 31. Member plans are essential for an EU directive which will introduce an emissions trading scheme for greenhouse gases. Greece is not the only country that missed the deadline, but the others have since submitted their plans.
According to a government announcement at the end of November, a working group will submit the study for the emissions plan by December 11 to the ministry of development. If the ministry accepts the study, it will launch a public consultation, which is required by EU regulations and must be completed within three weeks.
Given Greece's official holiday schedule, this means that the earliest the government will be able to send its final proposal to Brussels will be at the end of January.
Failure by Greece to participate in the EU trading scheme would result in heavy fines and the threat of immediate closure of the heaviest polluters. It would also discourage lucrative investments in renewable energy, such as solar and wind power, hydroelectricity, biomass and geothermal energy.
Greece's position
Despite the serious delay, Greece is now making progress. The leader of the team, Professor Dimitris Lalas, chairman of the Athens Observatory and Greece's permanent delegate to the UN Convention on Climate Change, is confident that the December 11 deadline will be met.
The working group comprises the Athens Observatory, engineering consultants LDK, the accounting firm KPMG and an environmental consultant specialist (EPEM). He remains hopeful that Greece "can join the emission-trading scheme, albeit at the last moment, February 28, 2005".
When Greece joins the scheme, it will be bringing on board some 70 million tonnes of emissions per year, corresponding to 52-53 percent of the national total, and 140 power-generating and industrial plants. The whole of the EU has 2,200 million tonnes of emissions per year and 9,000 monitored plants.
The EU Emission Trading Scheme
The EU Emission Trading Scheme (EU ETS) introduces legally binding emission limits to greenhouse gases (GHGs) in industrial activities. The programme will begin in 2005 and will dole out harsh penalties for non-compliance. The scheme assigns a direct cost or value to GHG emissions associated with commercial activities (currently predicted to be 10-15 euros per tonne of carbon dioxide).
Energy companies will feel a significant financial impact; but the scheme will affect not only the five industries it was initially meant to cover (energy, mineral oils, minerals, metals, pulp & paper) but also large consumers of energy and energy-intensive commodities.
The range of expected risks and opportunities associated with the scheme is considerable. Affected industries will incur costs in order to meet the requirements. They must either invest in emissions reduction projects or purchase emissions allowances. In many cases, these compliance costs will be passed on to customers through raised commodity prices. For example, wholesale electricity and natural gas prices are predicted to increase by as much as 70 percent and 30 percent, respectively.
In some cases, companies will profit from the EU ETS, when, for example, they sell emissions credits, or commodities and technologies related to energy savings. Some companies may win public relations points as they reduce their GHG emissions.
Companies will be sure to factor emissions reductions into their marketing, investment and disposal strategies and manage their GHG assets and liabilities proactively, if they are to survive and prosper in the long term.
Industrial operations in many non-Kyoto signatory countries are not subject to any GHG control. As a result, one can expect radical changes to the competitive landscape of many industries.
The Kyoto protocol
Back in 1992, the United Nations (UN) set up the UN Framework Convention on Climate Change out of concern over global warming, the greenhouse effect and its possible link to climate change. Five years later, as evidence was mounting on the effects of industrial and transport emissions to climate change, 159 countries signed the Kyoto Protocol for Climate Change in Kyoto, Japan.
The aim of the protocol is to force countries to bring emissions of the six basic greenhouse gases* 5 percent below the 1990 levels by 2012. If guidelines are followed, some countries may even surpass the 5 percent reduction target.
Scientists contend that climate change is taking place right now. They point to the following four major indicators: there is virtual worldwide scientific consensus on the scale of the problem; the 10 warmest years on record have all been since 1990; average global temperatures have risen by 0,6 degrees Celsius over the last century; and extreme weather events are becoming more frequent, with glaciers melting and sea ice and snow cover declining.
* Carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluoro-carbons, sulphur hexafluoride.
Article code: C13107A071
Below will be a graphic of the polution percentages:
If the EU controls emissions it controls industries; If it controls industries, it controls governments; if it controls governments, it controls people; if it controls people, it is a dictatorship.
And he's probably looking for a job. The EU loves the guy surely they could let him oversee this little EMISSIONS-FOR-CASH program.
What?? Greece always does things at the very last second?! I'm shocked. Shocked I tell ya!
I think this time it is 100% intentional due to game playing of France and Germany with their ignoring deficit problems.
Greece also has oil refineries AND they just inked a deal with an oil pipeline with Russia and Bulgaria.
The only way to get ahead with Kyoto is to keep two sets of books.
Really? I didn't know they'd inked a pipeline deal. Cool!
Where will the terminal be? Thessalonika?
a little further northeast, the finalization of this deal is seen as dealing a blow and delay to Turkish EU efforts. (it also adds more speculation to oil exploration in the Aegean's untapped oil resources.)
Good. Turkey doesn't belong in the EU.
"wholesale electricity and natural gas prices are predicted to increase by as much as 70 percent and 30 percent, respectively."
This has got to be the beginning of an economic fiasco of
monumental proportions.
BTTT!!!!!!!
the only thing missing from the article is how much this is going to cost the US...
i predict lots.
teeman
So true.
according to the Greek Satelite TV channels' news the conservatives are starting to make public decades of kickback payoffs in military procurement.
I am curious to see if anyone goes to jail.
I am afraid my friend that you need to learn some more about environment, climate change and modern economy. The thing that is going to destroy US economy is not the Kyoto protocol but its strong dependence on fossil fuels. Wake up!
It's time to built an economy based not on dumb consumers but active people and values of sustainability.
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