Abstract
In a tradable white certificate (TWC) scheme, each certificate issued represents a certain amount of energy saved. Used in conjunction with an energy-saving obligation on certain parties in the energy supply chain and with rules for trading, monitoring and verification established, an efficient market for energy savings in sectors not covered by the European Union (EU) Emissions Trading Scheme can be established. However, a plethora of other mechanisms are already in place to promote a more sustainable use of energy in Europe. This paper analyses the interactions (both potential and realised in existing schemes) between TWCs and other policy instruments including tradable green certificates, the European Union Emissions Trading Scheme, the European Union Energy Performance in Buildings Directive as well as taxes, subsidies and loans. Measures implemented through a TWC scheme that reduce the consumption of electricity can make targets under a tradable green certificate scheme easier to attain. Where a tradable green certificate scheme contains relative targets, the target should be increased to achieve the same absolute amount of renewable power. A TWC scheme can also reduce the number of allowances electricity generators will need to surrender under the EU Emissions Trading Scheme. By reducing the available emission rights in the National Allocation Plans, this effect is possible to counteract.
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Notes
Further information about the project and its outputs is available on the project website, see www.eurowhitecert.org.
Although it could be argued that it is the price volatility of the EUA over the last 3 years and the price collapse in April 2006 that reduced willingness to invest in end-use savings rather than the EU ETS per se.
Directive 2002/91/EC of the European Parliament and of the Council of 16 December 2002 on the energy performance of buildings.
The Directive concerns the residential sector and the tertiary sector (offices, public buildings etc.). The scope of the provisions on certification does not, however, include buildings such as historic buildings, industrial sites etc.
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Child, R., Langniss, O., Klink, J. et al. Interactions of white certificates with other policy instruments in Europe. Energy Efficiency 1, 283–295 (2008). https://doi.org/10.1007/s12053-008-9025-7
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DOI: https://doi.org/10.1007/s12053-008-9025-7