;KOOBllO� wo�ın 6.2 Regulatory mechanisms at Member State level At this level it will be crucial to design national allocation plans in a way which takes CO2 savings from CHP fully in account. As discussed, this includes the following possibilities: • Member Staıes should preferably establish systems to determine CO2 savings from CHP installations and take these into account when calculating how many allowances have to be submitted (section 5.3 on page 5) • 1f ıhis is not possible, the initial allocation of allowances based on the useful heat and/or power output should be envisaged (section 5.2 on page 5). · As a lası resort, new CHP capacity may be considered as a new entrant and exempted from the need to hold allowances or provided with free allowances (scction 5.1 on page S); • in any case, Meınber States should consider avoiding discriınination ofheat from District Heaıing with CHP, for instance by exempting it froın the need to hold allowances. (section 5.4 on page 6). 6.3 Conclusions and outlook There is no doubt that the EU Emissions Trading Scheme will become a key mechanism to reduce CO 2 emissions and bring the EU closer ıo meeting its Kyoto commiıments in a cost-etfıcient manner. CHP should play an important role given iıs potential for lowcost emissions reduction. Yet, it has been shown that, unless complementary measures are taken, emissions trading could actually seriously undermine the competitiveness of CHP during the emission trading scheme's 2005-08 pilot phase. This would make the situation of CHP even worse than it is already now. Ali efforts should be undertaken to prevent such a scenario and give CHP the position it merits within the Emissions Trading Scheme. 6.4 Bibliography -Club cogeneration (2002) Observations sur le projet de Directive Cogeneration. Unpublished. -COGEN Europe (2002) Towards a EU-wide coherent approach to determining primary energy/greenhouse gas savings from CHP -Euroheat & Power (2001) CO2 reductions by Combined Heat and Power in the European Union -Euroheat & Power (2002) Position Paper on the Directive proposal on greenhouse gas emission trading presented by the Coınmission on 23 October 2001 - COM(2001)581 -European Commission (2001a) Proposal for a framework Directive for greenhouse gas emissions trading within the European Community. COM (2001) 581 -European Commission (2001 b) Communication on the implemenıation ofthe fırst phase ofthe European Climate Change Programme -European Commission (2002) Proposal for a Directive ofthe European Parliament and ofthe Council on the promotion of cogeneration based on a useful heat demand in the internal energy market. COM(2002)415 final -future cogen ( ed) (200 1 ) The Future of CHP in the European Market - The European Cogeneration Study. Final Publishable Report. -Gailfu/3, M. 'CO2 Minderung durch Blockheizkraftwerke'. (http://www.bhkw-infozentrum. de/erlaeuter/co 2 _minderung.html ), accessed on 26/08/2002 -Ministeriuın für Umwelt, Natur und Forsten des Landes Schleswig-Holstein (2002) Emissionshandel. Position der schleswigholsteinischen Landesregierung. p. 6 -Traube, K. and Schulz, W. (2000) Ökologische und ökonomische Wirkung eines mittelfristigen Ausbaus der Kraft-WarmeKopplung zur Nah-/Femwarmeversorgung in Deutschland -VDEW (1997 and 2002) Press lnformation on http://www.vdew.de -ZEW/Öko-lnstiıut (2002) Final Report for the preparation of an opinion on the proposed Directive on the Implenıentation of EU-wide Emissions Trading COM(2001)581 . Mannheim/Berlin. pp. 30-31 ECOGENERATION WORLD 61
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