Air Pollution Control Equipment Services, Emissions

NERA to assist UK Government in Emission Trading Scheme allocation plan

29 April 2003 – Energy consultant NERA has announced that it will be the prime contractor for a new project to assist the UK Department for Environment, Food & Rural Affairs (Defra) in its development of the National Allocation Plan under the EU Emissions Trading Scheme (ETS).

NERA Senior Vice President and Project Director Dr. David Harrison and NERA Senior Consultant and Project Manager Mr. Daniel Radov have assembled a multi-disciplinary Project Team that includes AEA Technology and Mr. Steven Sorrell of SPRU (Science & Technology Policy, University of Sussex) to undertake this project.

Scheduled to go into force on 1 January 2005, the ETS would be the world’s first mandatory economy-wide greenhouse gas emissions trading scheme. The EU scheme is estimated to cover 40-45 per cent of the EU’s carbon dioxide emissions and therefore forms a key part of the European Climate Change Programme. Under the proposed scheme, each member state is required to draw up a National Allocation Plan (NAP) that details the initial allocation of allowances to installations covered by the EU’s directive. The NAP must be submitted to the European Commission for approval by 31 March 2004, and will be evaluated according to state aid rules and other criteria to be developed by the Commission.

NERA has extensive real world experience in emissions trading and understanding of relevant data, market conditions and EU policies, NERA’s Project Team will develop specific allocation methodologies to help Defra choose among the large number of potential approaches. The team will also develop a user-friendly spreadsheet model that calculates specific initial allocation trajectories.