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1
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2
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- The Europeans are currently negotiating a follow-on to the current ETS
- It is not easy, as illustrated by some examples from negotiations
- In response to Poland’s concerns for the energy sector: for countries
which produce more than 30% of their electricity from a single fossil
fuel and where the GDP/capita is less than 50% of the average EU
GDP/capita, up to 70% of emissions from the energy sector will receive
free allowances in 2013 with this number slowly decreasing until 2020,
where there will be no free allowances. Previously, this phase
out period would only last 3-4 years. Poland, Czech Republic,
Hungary, and Romania, and possibly a few others, stand to gain from
this.
- In response to Germany and Italy’s concerns for their industries: for
energy-intensive industries at risk of carbon leakage will receive 100%
free allowances through 2020. All other industries will receive
80% free allowances in 2013, moving to 30% free allowances in 2020, and
no free allowances in 2025. This is a sizable move allowing for
free allowances all the way to 2020 for energy-intensive industries,
and extending the phase out time frame for all other industries to
2025.
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3
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4
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5
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6
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7
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8
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9
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10
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11
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12
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13
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14
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15
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16
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17
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18
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- Pros
- Lower emissions
- Tanks stronger than gasoline tanks
- Lower maintenance
- Natural gas cost historically lower and more stable than gasoline
- Cons
- Lose nearly half of range compared to gasoline
- Adds $4,000-$8,000 to cost of new car compared to gasoline
- Lose lots of trunk space for tanks
- Fewer refueling options
- Conclusion: NGVs currently more
attractive for fleets rather than passenger cars
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19
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Notes
