NewEnergyNews: GERMANY: CARBON AUCTION/

NewEnergyNews

Gleanings from the web and the world, condensed for convenience, illustrated for enlightenment, arranged for impact...

The challenge now: To make every day Earth Day.

YESTERDAY

THINGS-TO-THINK-ABOUT WEDNESDAY, August 23:

  • TTTA Wednesday-ORIGINAL REPORTING: The IRA And The New Energy Boom
  • TTTA Wednesday-ORIGINAL REPORTING: The IRA And the EV Revolution
  • THE DAY BEFORE

  • Weekend Video: Coming Ocean Current Collapse Could Up Climate Crisis
  • Weekend Video: Impacts Of The Atlantic Meridional Overturning Current Collapse
  • Weekend Video: More Facts On The AMOC
  • THE DAY BEFORE THE DAY BEFORE

    WEEKEND VIDEOS, July 15-16:

  • Weekend Video: The Truth About China And The Climate Crisis
  • Weekend Video: Florida Insurance At The Climate Crisis Storm’s Eye
  • Weekend Video: The 9-1-1 On Rooftop Solar
  • THE DAY BEFORE THAT

    WEEKEND VIDEOS, July 8-9:

  • Weekend Video: Bill Nye Science Guy On The Climate Crisis
  • Weekend Video: The Changes Causing The Crisis
  • Weekend Video: A “Massive Global Solar Boom” Now
  • THE LAST DAY UP HERE

    WEEKEND VIDEOS, July 1-2:

  • The Global New Energy Boom Accelerates
  • Ukraine Faces The Climate Crisis While Fighting To Survive
  • Texas Heat And Politics Of Denial
  • --------------------------

    --------------------------

    Founding Editor Herman K. Trabish

    --------------------------

    --------------------------

    WEEKEND VIDEOS, June 17-18

  • Fixing The Power System
  • The Energy Storage Solution
  • New Energy Equity With Community Solar
  • Weekend Video: The Way Wind Can Help Win Wars
  • Weekend Video: New Support For Hydropower
  • Some details about NewEnergyNews and the man behind the curtain: Herman K. Trabish, Agua Dulce, CA., Doctor with my hands, Writer with my head, Student of New Energy and Human Experience with my heart

    email: herman@NewEnergyNews.net

    -------------------

    -------------------

      A tip of the NewEnergyNews cap to Phillip Garcia for crucial assistance in the design implementation of this site. Thanks, Phillip.

    -------------------

    Pay a visit to the HARRY BOYKOFF page at Basketball Reference, sponsored by NewEnergyNews and Oil In Their Blood.

  • ---------------
  • WEEKEND VIDEOS, August 24-26:
  • Happy One-Year Birthday, Inflation Reduction Act
  • The Virtual Power Plant Boom, Part 1
  • The Virtual Power Plant Boom, Part 2

    Sunday, June 24, 2007

    GERMANY: CARBON AUCTION

    This is a really interesting idea, putting the price for emissions where it must be. Knowing they will be asked to face the "true" cost of emissions, Germans have developed more efficiency and more renewables.

    German Lawmakers Approve Carbon Emission Auctions
    Brian Parkin and Patrick Donahue, June 22, 2007 (Bloomberg News)

    WHO
    Chancellor Angela Merkel, Environment Minister Sigmar Gabriel, German utility RWE AG (Ulrich Jobs, power-generation unit head), Verband der Elektrizitätswirtschaft Baden- Württemberg e.V. (Eberhard Meller, general executive manager), VIK, representing ThyssenKrupp AG, Volkswagen AG, HeidelbergCement AG and 350 other industrial power customers (Alfred Richmann, Managing Director).
    German renewables (click to enlarge)

    WHAT
    The German lower house of Parliament approved the auction of greenhouse gas (GHG) emission credits, despite opposition from German industry and utilities because of the costs.

    WHEN
    - The measure was approved June 22.
    - The upper house of Parliament must approve the plan July 6.
    - German utilities will buy EU permits for 140 million tons of GHGs through 2012.

    WHERE
    - German government is in Berlin.
    - VIK is based in Essen.

    WHY
    - Under cap-and-trade, the Germans are assigned a limit of GHG emissions by the EU and given permits for those emissions. The government then dispenses those permits across its industries, utilities and businesses which need permits (i.e., need to create emissions) to do business. If a business needs to create emissions beyond what its permits, it must offset them with investments in clean energy or buy more permits on the EU ETS, an emissions permit trading market where businesses which generate fewer emissions than their permit levels allow can sell their credits and derive extra income.
    - By auctioning a portion of the allowed permits, the German government is creating revenue and making emissions more expensive. But for businesses that need the permits to operate, the auction drives the price up.
    10% (EU max) of Germany’s allowed 453 million metric tons of GHG permits will be auctioned.
    promoting efficiency (click to enlarge)

    - RWE AG, Germany’s 2nd largest utility, has estimated its increased costs for emissions permits under this plan to be 410 million euros($554 million)/year. This suggests inevitably higher power prices (one utility estimated a 14% factor!), though liberal politicians dispute it. But it perhaps gets closer to what some would call the “true” cost of doing business while generating GHG emissions.

    QUOTES
    - Gabriel, on auctioning emissions permits: ``[It] is of great significance for Germany to achieve its Kyoto Protocol obligations through 2012…[without climate change talks are] meaningless…That's the real success of this law.''
    - Jobs: ``We regret that this has to lead to a massive disadvantage to ignite…Discrimination against domestic lignite isn't justified.''
    - Meller: ``Banks will buy and hoard certificates, selling when it's opportune…Consumers and industry will pick up the extra costs.''

    0 Comments:

    Post a Comment

    << Home