Dóra Fazekas Carbon Market Implications for new EU - UniCredit ...

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Zero „De minimis” Small Medium Large !! emitters! emitters! emitters! emitters! emitters! Total! Energy production 1 1% 44 30% 66 45% 30 20% 7 5% 148 Oil processing 0 ! 0 ! 0 ! 0 ! 1 100% 1 Coking Metal ore 0 ! 0 ! 0 ! 1 100% 0 ! 1 production Steel and iron 0 !! 0 !! 0 !! 2 100% 0 !! 2 production 0 ! 3 38% 3 38% 1 13% 1 13% 8 Cement production 0 ! 0 ! 0 ! 4 57% 3 43% 7 Glass production Ceramics 0 ! 3 33% 4 44% 2 22% 0 ! 9 manufacturing 1 2% 24 51% 22 47% 0 ! 0 ! 47 Paper production 0 !! 1 17% 3 50% 2 33% 0 !! 6 Total! 2 1% 75 33% 98 43% 42 18% 12 5% 229 Table 19. Emitters categorized according to sector size Source: author’s calculation based on the EEA “CITL Viewer” * * * In Hungary some 250 installations participated in the pilot phase of the EU emissions trading system; two-thirds were involved in energy production, one-fifth represented the ceramics manufacturing industry, and less than ten installations belonging to other sectors were party to the scheme. The Concentration of the Hungarian EU ETS Market The following section will examine the concentration of the Hungarian carbon dioxide emissions market based on information obtained from the CITL and the Hungarian National Allocation Plan. Figure 27. provides a cumulative overview of Hungarian installations’ allocations. The pie chart makes it quite clear just how concentrated the Hungarian EU ETS market is. One single installation received nearly one-fourth (22.5% – Mátra Er"m!) of all Hungarian allowances. A further four installations (five total) obtained almost one-half of all allowances allocated in Hungary (48%). Twenty allocations shared exactly three-fourths of all grandfathered allowances. And 60% of all Hungarian installations received 95% of the allowances in Hungary. This heavy concentration is not a feature that is unique to Hungary. An examination of the entire ETS market reveals similar results (Trotignon and Delbosc, 2008, p. 26). On an EU level, one company received 6% of all allowances, ten companies obtained 33%, 50 companies received 62%, 500 were given 93% of the total, and the remaining 6% were shared by over 4000 companies. 120
Figure 27. The Concentration of the Hungarian EU ETS Market Source: author’s calculation based on CITL data In Hungary, the energy sector received nearly three-fourths of all allowances – the ETS market is also rather concentrated if broken down by sector (see figure 28). Cement, iron and steel production, and oil refining accounted for 9%, 7% and 5%, respectively, of Hungary’s total allocations during the three years of the pilot phase. The other five sectors received 3% and 1% each of the grandfathered allowances. The same appears to hold true on an EU level as well (Trotignon and Delbosc, 2008, p. 19); the energy sector received 70% of the allocations, cement production obtained 9%; iron and steel production and oil refining each received 8%. Figure 28. Hungarian installations shown broken down by sector Source: author’s calculation based on CITL data 121
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PhD Program in Management and Busin
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List of figures Figure 1. Optimal l
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„If you want to understand today,
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Neither the theory nor the empirica
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Table 1. Installations receiving th
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oth on national and corporate level
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1. Climate Change Regulation The fi
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approaches, activities that are not
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In Europe the United Kingdom and De
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(2) Allocating emission rights is d
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Figure 2. The cap determines the ma
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Table 5. Tradeable certificates (ba
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value, sectoral and spatial coverag
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with their quantified reduction tar
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* * * Several authors (Hahn and Sta
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EU ETS Within the context of the UN
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establishing an international marke
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(c) Allowances can also be distribu
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• ETS in New Zealand; • Volunta
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emissions trading schemes, making i
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end of the pilot phase. Since Augus
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Figure 10. Distance to burden-shari
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Early attitude of companies towards
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high quality, differentiated produc
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investments needed in the industry.
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3.2. Emission Trading in the new EU
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environmental benefits at a relativ
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well below their Kyoto target (EEA,
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lawsuits against the Commission for
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The most active countries to host J
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Figure 14. Hot air as supply for AA
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There have been three proposals on
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transparency of AAU transfers; redu
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Figure 18. Tradeable Hungarian AAU
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Page 71 and 72: At the same time, this relatively f
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Page 75 and 76: directly from CO2 emissions are ess
Page 77 and 78: 1.2. A Review of the Hungarian Lite
Page 79 and 80: 2. Introducing the EU ETS in Hungar
Page 81 and 82: databases containing common data el
Page 83 and 84: instances where inconsistent decisi
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Page 91 and 92: the EU ETS. Many observers believe
Page 93 and 94: Emissions allowances to be allocate
Page 95 and 96: 2005 2006 2007 Installation Alloc.
Page 97 and 98: Finance is putting much of the reve
Page 99 and 100: conclusion. It is safe to conclude
Page 101 and 102: allowance surplus, and then increas
Page 103 and 104: agent. 23 Denmark sold 2,762 thousa
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Page 107 and 108: What was the reason for this anomal
Page 109 and 110: considered a “transfer.” Apart
Page 111 and 112: When allowances are recognized as g
Page 113 and 114: provision is to be formed against t
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Page 117 and 118: Participants of the Hungarian EU ET
Page 119: program, full sets of emissions dat
Page 123 and 124: Figure 30. The Hungarian EU ETS mar
Page 125 and 126: Figure 32. Positions of Hungarian E
Page 127 and 128: Figure 40 below shows the allocatio
Page 129 and 130: 3.2. The Impact of the EU ETS on Hu
Page 131 and 132: interviews, that companies looked u
Page 133 and 134: neither emissions-reduction targets
Page 135 and 136: was considered, since they all obta
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Page 139 and 140: During the pilot period, Hungarian
Page 141 and 142: to comply shall have their names pu
Page 143 and 144: eact efficiently to regulations. Th
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Page 147 and 148: combined with an internal price tha
Page 149 and 150: Were Emissions Actually Reduced? Co
Page 151 and 152: column) and the verified emissions
Page 153 and 154: Figure 38. Hungarian reference peri
Page 155 and 156: * * * The effects of the EU ETS on
Page 157 and 158: (2) Transfer account of allowances,
Page 159 and 160: In an EU-context, Hungary held its
Page 161 and 162: installations the author spoke to w
Page 163 and 164: Companies, which were certain of th
Page 165 and 166: Figure 42. Hungarian transactions d
Page 167 and 168: phase. CITL Data The transaction da
Page 169 and 170: International Transfers The author
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Based on these numbers, it may be c
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The two right-hand side columns in
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sales, and how much was accounted f
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the CITL only contains data on wher
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approximately two-fifths of the vol
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(3) Installations that had shut dow
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production, one-fifth represented t
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IV. EXPERIENCES OF THE EU ETS PILOT
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starting in 2012, the European Unio
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originally allocated. Based on thes
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economic development rather than as
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Hungary has still to learn to opera
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Appendix I. - Questionnaire 3.c. Cl
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Had surplus but did not sell EUAs ,
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Appendix III. - Accounting Aspects
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Appendix V. - Overview and main fea
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Appendix VII. - Foreign emission al
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Hungária Cementipari Rt. 2006 HU 5
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Reductions Clean Development Mechan
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Linking Directive from project acti
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VII. REFERENCES Ahman, M. - Burtraw
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Burtraw, D. - Palmer, K. - Bharvirk
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EEA (2006): Greenhouse gas emission
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Hahn, R. - Stavins, R. (1999): What
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Kaderják, P. (1997): Economics for
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Montero, J. P. (1997): Marketable P
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Philibert, C. (2006): Certainty ver
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Tietenberg, T. (1992): Relevant Exp
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Woerdmann, E. (2003): Developing ca
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Hungarian law - Hungarian governmen
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Oxford University Press, USA http:/
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