Decarbonising electricity Decarbonising the way we generate electricity is a priority for making deep cuts in CO2 emissions and avoiding dangerous climate change. Policies and decisions now will determine the environmental consequences of our energy infrastructure for many years. The EU Emissions Trading Scheme (EU ETS) puts a price on emissions of CO2 from large energy and industrial installations. At present, the EU ETS is not sending a strong enough signal to change investment, so energy companies are still choosing high-carbon options, and lack sufficient incentives to use low-carbon technologies such as carbon capture and storage (CCS) and large-scale renewable electricity. The Committee on Climate Change, the UK Government’s official advisors, recommend adopting additional, complementary policy measures to 'buttress' the carbon price lever to achieve effective decarbonisation by 2030. Emissions performance standards (EPS) for CO2 One option is an emissions performance standard (EPS) for CO2. ClientEarth considers that EPS, used in conjunction with a carbon price and good incentives for low-carbon technologies, is a key tool for decarbonisation in the power sector. The states of California and Washington have introduced EPS for CO2 for baseload electric power generation. An EPS was debated in the UK Parliament in the Climate Change Bill and Energy Bill during 2008 and has the support of the Conservatives and the Liberal Democrats. In October 2008, the Environment Committee of the European Parliament also voted in favour of an EPS of 500g CO2 per kWh, which would take effect from 2015 for new power stations. CO2 EPS are also consistent with approaches used in existing EU environmental law for pollutants such as SO2 and NOx, where power stations must comply with emissions limit values. In 2009, EU law-makers will have a further opportunity to consider the option of an EPS for CO2 emissions as part of the revision of the Integrated Pollution Prevention and Control (IPPC) legislation. ClientEarth has advised the European Parliament that such regulation is consistent with existing EU environmental laws relating to industrial emissions and that amendments to introduce an EPS are admissible and should be allowed. Related Links An Emissions Performance Standard as the regulatory alternative to capture-readiness, ClientEarth’s contribution to Green Alliance publication, "A Last Chance For Coal: Making Carbon Capture and Storage a reality”, October 2008 Ecofys report: New emissions limits for power stations will deliver massive CO2 savings in the most cost-effective way, January 2009 Emissions Performance Standards for CO2 emissions from power stations are consistent with existing EU environmental law, ClientEarth briefing on Proposed Industrial Emissions (Integrated Pollution Prevention and Control) Directive, December 2008 |