Emission Trade

Energy and Environmental Developments in Turkey

In 2005 Turkish Grand National Assembly approved renewable energy law pertinent to electricity production descriptions of renewable energy sources, including wind power.World Wind Energy Association (WWEA) regarded this step as a step towards the wide usage of renewable energy in Turkey and made a call to government of Turkey to make additional legal improvements.

This year, the proposal submitted by the Renewable Energy Law, the Energy Commission Chairman, Soner Aksoy withdraw the proposal hastily. In 18 June 2009, the proposal which took 6 months of work was the 3rd on the agenda of the Parliament. Withdrawal of the law on renewable energy sources in the energy market has created confusion. The law proposal prepared by Parliament, Industry, Trade, Energy, Natural Resources, Information and Technology Commission Chairman was offering guarantee for long-term purchase of wind, solar, geothermal and biomass energy sources.

According to the law, wind power generation was supporting the electricity producing renewable energy by giving purchase guarantee period of 7 years (about 5 cents / kWh) with an average price of electricity. This was well below the rate of support available in the leading European wind markets. In principle, network operators are responsible for providing access to the network for renewable energy generators and another important feature is that the principle independent power producers are allowed to benefit from feeding electricity law as well.

Carbon Market and Emission Trade, is a market formedas a result of commerce of greenhouse gases emission allowances in order to reach their goals of countries and companies.

Emissions trading had come up at meeting held in Kyoto in 1997 and 39 developed countries agreed to pull greenhouse gas emission limits 5 percent below the level the limits of1990 for 2008-2012.

In essence, the Kyoto Protocol which carried out as a European project limits each country and industry specific within limits on carbon emission quotas.Kyoto protocol proposes the establishment of a global carbon market. After allocating carbon quotas once, the prices in the world market may be procured by the most polluting countries. Thus, the total carbon emissions can be controlled effectively under the rules of the market economy.

How Does it Work?

Each member country under the Kyoto Protocol are allocated to a certain quota of carbon emission and members are expected to allotment of this quotas between their manufacturers.

According to the design, if any manufacturer or country exceeds its quota, they are allowed to purchase quota from the manufacturer or other countries that produces less carbon.

EMISSION REDUCTION TARGETS AND NATIONAL ALLOCATION PLANS (EU ETS)

the EU ETS was initially established on January 1,2005. EU ETS is the world's first multi-national emissions trading system and the largest list completed. According to recent data, provider system includes 13 000 venture of 25 country membered EU.

2005 trading volume of EU ETS, 362 companies were treated for Mt CO2 and the financial value is 7.2 billion Euros.

EMİSYON AZALTMA HEDEFLERİ VE ULUSAL TAHSİSAT PLANLARI

EU National Allocation Plans of member countries (National Allocation Plans - NAPS) are determined by national governments and submitted to the EU Commission in Brussels. After this stage, supervising and inspection task of the carbon market is working properly is duty of the EU Commission.

Base Year*
(MtCO2e)
2002*
(MtCO2e)
Base Year-2002 Difference
(MtCO2e)
BSA**
(%)
BSA**
Target (MtCO2e)
2002'de
Range to BSA (MtCO2e)
Austria 78 85 7 -13,0 69,7 17,1
Belgium 146,8 150 3,2 -7,5 135,8 14,2
Denmark 69 68 -1 -21,0 54,5 13,5
Finland 76,8 82 - - 76,8 5,2
France 564,7 554 -10,7 -0,0 564,7 -10,7
Germany 1253,3 1016 -237 -21,0 990,1 25,9
Greece 107 135 28 25,0 133,8 1,3
Ireland 53,4 69 15,6 13,0 60,3 8,7
Italy 508 554 46 -6,5 475 79
Luxemburg 12,7 11 -1,7 -28,0 9,1 1,9
Netherlands 212,5 214 1,5 -6,0 199,8 14,3
Portugal 57,9 82 24,1 27,0 73,5 8,5
Spain 286,8 400 113,2 15,0 329,8 70,2
Sweden 72,3 70 -2,3 4,0 75,2 -5,2
United Kingdom 746 635 -111 -12,5 652,8 -17,8
AB 15 4245,5 4125 -120 -8 3905,6 219,4

Connections with the Project Based Mechanisms, connections with the project based mechanisms are important aspect that may affect the market price and one of the flexible mechanisms within EU ETS and the Kyoto Protocol. These are:

  • Joint Implementation Mechanism-JIM
  • Clean Development Mechanism-CDM
Importance of the connection between Project Based Mechanisms and EU ETS,
  • European companies promote the use of these mechanisms, in order to ensure the active participation,
  • Facilitates the transfer of technology to developing countries,
  • Delivers the commitments on compliance of the EU's Kyoto message to the countries that have not yet ratified the Kyoto Protocol.
Voluntary Carbon Markets

The Voluntary Carbon is market that facilitates the businesses, events, and non-profit organizations who voluntarily rather to balance greenhouse gas emissions. This process is a bitmore complex process than according to the apparatus of flexibility under the Kyoto Protocol for enforcing. Carbon trading conducted in different ways,thus, carbon emission reduction can be achieved with more flexibly and new formats.Policies and targets set by the Government can be developed independently.There is no limitation for participation. There are uncertainties about the carbon credits (VER) standards and trading rules during processes of carbon reduction. Voluntary Carbon Trading applies to sectors and countries who are not covered by the Kyoto Protocol.This process, as opposed to legal stresses;

  • be willing to mitigate the effects of climate change (environmental sensitivity),
  • being innovative for approaches to be in the public interest to provide finance,
  • public relations benefits,
  • preparation for the national and regional plans and liabilities,
  • to profit from the re-sale of carbon credits,
  • combining the renewable energy and energy efficiency programs, developed for the such purposes.
2005 2006 2005-2006 Alteration
Trade Volume
(Mton eşCO2)
Market Value
(milyon US$)
Trade Volume
(Mton eşCO2)
Market Value
(milyon US$)
Trade Volume
%
Market Value
%
Primary CDM 341 2417 450 4813 32% 99%
Secondary CDM 10 221 25 444 150% 101%
JI 11 68 16 141 45% 107%
Others 20 187 17 79 -15% -58%
Volunteer Carbon 6 44 10 100 67% 127%
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