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Non-ETS Offsets: Status, Potential and Methodological Harmonisation. Wytze van der Gaast and Vlasis Oikonomou Joint Implementation Network - JIN – Groningen jin@jiqweb.org. Could non-ETS projects benefit from ETS market price?.
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Non-ETS Offsets:Status, Potential and Methodological Harmonisation Wytze van der Gaast and Vlasis Oikonomou Joint Implementation Network - JIN – Groningen jin@jiqweb.org
Could non-ETS projects benefit from ETS market price? • Yes, that’spossible via the LinkingDirective and JI, butMemberStatesneed to decideonthisthemselves • Up to 2012: domestic, non-ETSoffsets = JI • > 2012: projectsunderArticle 24a, next to JI and undersupervision of EuropeanCommission and/orMemberStates? Round Table Art. 24a - 1 March 2010
Non-ETS offsets: How does it work? Round Table Art. 24a - 1 March 2010
Advantages Non-ETS offsets • ‘Polluter pays’ via market mechanism • Supports development of low-emission technologies • Complementory to subsidies, taxes, standards (EPC) • Improved GHG registration in non-ETS sectors • Possible positive sum game • Post-2012: climate and energy targets • Longer time horizon (ETS phase III and beyond) Round Table Art. 24a - 1 March 2010
€/ m3 cost/m3 Gas price + price CO2 / m3 Gas price /m3 Time of technology implementation Round Table Art. 24a - 1 March 2010
Example: combination with subsidy Round Table Art. 24a - 1 March 2010
Potential disadvantages non-ETSoffsets • Requires GHG accounting procedures • Administration costs • Zero Sum game (at least directly) • Traded credits/AAUs cannot be used for other policy measures • Risk of double counting Round Table Art. 24a - 1 March 2010
DO scheme comparison Round Table Art. 24a - 1 March 2010
Non-ETS offsets study Arcadis - JIN All sectors - ETS - Existing policies Green gas Built environment Transport Round Table Art. 24a - 1 March 2010
DO sector analysis Round Table Art. 24a - 1 March 2010
Characteristics non-ETS offsets in post-2012 context? • Work for climate and energy targets • Technology choice determined by market • Focus on non-ETS sectors where offsets could complement existing policy measures • Bundle small-scale activities Round Table Art. 24a - 1 March 2010
050 5248430 jin@jiqweb.org vlasis@jiqweb.org www.jiqweb.org Round Table Art. 24a - 1 March 2010