26 November 2004 – The union of European electricity companies, Eurelectric, has just completed the fourth in the series of Greenhouse Gas & Energy Trading Simulations (GETS). These are designed to test the potential efficacy of trading in greenhouse gas (GHG) emissions allowances in helping to meet emissions-reduction targets in a cost-effective manner and to examine different scenarios and the various sensitivities that can impact such a scheme.
GETS4 results show inter alia that compliance costs increase exponentially with the severity of the targets; that restricting trading can significantly increase compliance costs; and that distribution effects will have a great impact on system-compliance costs and market-prices of traded GHG allowances.
Meanwhile Eurelectric climate change experts have also drawn up a set of fundamental principles they believe should guide any climate-change policy decisions for the post-2012 period.
Dr Bill Kyte, chairman of Eurelectric’s Environment & Sustainable Development Committee, told a stakeholder conference hosted by the European Commission that a “genuine global approach is vital for any post-2012 architecture to succeed”. He also called for longer timelines to create certainty and clarity; for emissions reduction goals to be based on sound scientific and economic analyses; for market-oriented policies; for all sectors to play a part; and for greater R&D and technology transfer/dissemination. Dr Kyte also underlined the need to encourage changes in consumer behaviour