Implications of the European emissions trading scheme for strategic energy management in small and medium enterprises

Abstract

This paper analyses the relevance of the European emissions trading scheme for the strategic energy management of those enterprises covered by the scheme. The administrative requirements are discussed and a short estimation of the prospective financial burden is given, based on different scenarios.

Since January 2005, companies are operating in a “carbon restrained market”. To make adequate “make-or-buy” decisions in this market, the internal options and the internal reduction potentials need to be known, the dynamic development of the emission trading market should be continuously studied and analysed and an internal operation strategy has to be developed. Regarding the financial burden, different scenarios are analysed for an industrial boiler as well as for a cement production plant. The results show that the impact brought about by the limitation of emissions allowances within the European emissions trading scheme depends largely on the circumstances considered. However, the financial impact on the considered industrial installations is assessed as rather insignificant.