Energy And Environmental Policy: Two Sides Of The Same Coin. The Approach Of Coal Extraction Industry For The Development Of Emissions Trading After 2012

The energy and climate protection policy of European Union (EU), and its Member States adopted in 2007 bridges security of supply, environmental protection and competitiveness. The objectives of the EU energy and environmental strategy cover the foreseeable period till 2020. It assumes all sources of energy will be needed. The objectives for renewable and improved efficiency are ambitious; it must be established if they are also realistic. Coal can continue to make valuable contribution to the security of supply and low price of electricity, only with technologies allowing for drastic reduction of the CO2 emitted of its combustion. The aimed at -20% reduction of green-house gases (GHG) of EU-27 by 2020 is an objective limited in time and content. Europe produces less than 15% of global CO2 and this will be reduced to 10% in 2030. Emissions Trading (ET) is to remain the central instrument for CO2 management, especially in the power sector. ET scheme (ETS) or other mechanisms need designing to create an incentive for investment in higher efficiency and technologies and to Carbon Capture & Storage (CCS). The ETS as the climate protection instrument of the EU can become a heavy burden (high fuel and electricity prices, less security of supply) or it can create a climate for modernization of fossil fuel power plants. The suggestion in this paper of fuel-specific benchmark system for CO2 allocation after 2012 can combine the emission levels to be reached with a strong drive to invest, the necessary investment security, transparency and the principle of proportionality. A Benchmark System as recommended by coal industry could adapt to the different circumstances in the long term and comply with EU energy and environmental policy objectives.