The Nordic utilities Statkraft (Norway), Fortum (Finland) and Vattenfall (Sweden) presented a joint proposal for a Policy Coherence Mechanism (PCM) in order to improve coherence between the EU emissions trading schemes (ETS) and other policies.
The EU ETS is a key policy to reduce greenhouse gas (GHG) emissions cost-effectively and uses the "cap and trade" principle, setting up a predetermined limit on the total amount of GHG from 11,000 installations covering about 50% of the EU's total GHG across EU member states.
Their proposal is meant to be implemented under the framework of the EU governance regulation. The idea behind the mechanism is to estimate the emissions reduction of a new EU policy before its introduction and then adjust the supply of allowances accordingly and cancel the allowances from the auction supply. The driver is to avoid further oversupply, protect the CO2 price signal and make sure that the new policy has a real environment benefit.
Source: Fortum
Interested in Global Energy Research?
Enerdata's premium online information service provides up-to-date market reports on 110+ countries. The reports include valuable market data and analysis as well as a daily newsfeed, curated by our energy analysts, on the oil, gas, coal and power markets.
This user-friendly tool gives you the essentials about the domestic markets of your concern, including market structure, organisation, actors, projects and business perspectives.