Emission Trading

The KyotoProtocol has been in force since 16 February  2005. The reduction targets for the emission of greenhouse gases negotiated at the time at the UN Climate Protection Conference are now  binding under international law for the participating countries: by 2012,  emission levels must be  5% less than they were in 1990 – although the proportion can vary greatly from country to country.

21% for Germany.

15 EU countries have committed themselves to a reduction of 8%. However, Germanymust achieve 21%, although at 19% it is only 2 percent lower than the required level. Unfortunately, it is a different story globally: from 1990 to 2002 CO₂ emissions increased by 16%.

Emission trading.

The European Community introduced a  flexible tax instrument, which also makes the reduction economically viable: emission trading.

In Germany,  the implementation is governed by the Greenhouse Gas Emissions Trading Act (TEHG). After the free allocation of CO₂ emission entitlements,  these may then be freely traded. In brief: companies, which emit  more greenhouse gases than they are entitled to,  must purchase emission permits– from companies, which produce less CO₂ emissions.

EnBW pleads for fair trade.

In Germany,  there is only one associated problem: - the Allocation Act (ZuG). It entitles a power plant operator who has constructed a new power plant to hold onto the certificates for the old one– for another four years! Since a new power plant produces significantly less emissions, the operator can sell the remaining certificates at a profit for a period of four years. EnBW is fighting against this Act, because in its current form,  it will not lead to a quick reduction in greenhouse gas emissions and will eliminate competition.