Following Copenhagen, when a non-binding “Copenhagen Accord” was agreed by many (but not all) the key players, countries were to declare their “association” to the Accord.
Energy Edge’s Karl Schultz, who attended the Summit, considers what has happened since Copenhagen and demonstrates that the Copenhagen Accord, while perhaps a disappointment, is going to force vastly deeper cuts in emissions and impact a much wider set of economic players than Kyoto, and considers what this means for energy investment decisions.
Following the completion of talks and the release of the “Copenhagen Accord, ” Energy Edge’s Karl Schultz, who attended the Summit, considers what happened and what it means for energy investments and the climate.
The Copenhagen Climate Conference - Midstream through the Talks, What is Clear?
The first briefing (below) preceded the Copenhagen Summit and summarized the key issues being debated, outlined a
few potential outcomes, and considered how these will impact the prospects for different energy investments
going forward.
In this second briefing, Energy Edge’s Karl Schultz, who has been attending the talks, considers both the substance being debated and how the process may unfold towards an agreement and what this might mean for the global energy economy.
The Copenhagen Conference - A Global Imperative Versus National Interests
The web of policy, technology, and market developments taking place within the energy sector across the world will converge profoundly with the current round of climate negotiations. Energy Edge is preparing this series of client briefings based on its involvement at the climate talks culminating in Copenhagen this December. These briefings will outline some of the most prospective scenarios for how climate policy will impact investment opportunities for energy providers.
This first briefing precedes the Copenhagen Climate Conference and summarizes the key issues being debated, outlines a few potential outcomes, and considers how these will impact the prospects for different energy investments going forward. The key challenge, the briefing finds, is resolving the global imperative to limit emissions against national interests. While challenging, the most likely scenario is for a political agreement that will soon lead to clarity on emissions targets and policies impacting energy investment options. Subsequent briefings during and after Copenhagen will update and clarify the emerging scenarios, and provide energy stakeholders a view on the possible impacts on energy prices, carbon prices, investment opportunities and risks.
Energy Edge partner Karl Schultz will be attending the climate talks and will provide updates and analyses while at and after the Copenhagen Conference. He is also happy to discuss with you its implications.
EU Industrial Emissions Directive - Changing the Future of European Coal Fired Power
Provisions of the Large Combustion Plants Directive(LCPD) already mean that many 'opted-out' power stations must close before 2016 and 'opted in' stations must meet tighter standards from the same date.
The new Industrial Emissions Directive (IED) proposed by the European Commission, and largely endorsed by the European Parliament, seeks to tighten further the emission limit values for SOx and to remove some of the flexibilities for achieving NOx reduction by reduced running and by trading emissions permits. This would certainly have forced further power station closures from 2016, and it raises serious security of supply concerns in the UK, Poland and several other countries in Eastern Europe.
The IED raises a number of key questions and issues for those involved in the European energy supply chain, including what do the new regulations mean and how do different fields and levels of EU regulation interact? What is the future for suppliers of high SOx or high NOx coals in Europe? Are there low-cost technical solutions available for power stations to meet the new standards? Are there new opportunities for coal suppliers to position themselves in the European market? When is action needed to meet the new timelines?
Energy Edge has a team of experts covering all aspects of international coal markets, power station operation and European environmental regulation to analyse these questions and advise on strategic solutions for companies in the sector. Please contact Nigel Yaxley for a preliminary chat or to set up a workshop discussion.
Nigel Yaxley Article: Energy Edge Consultancy Lead Nigel Yaxley's article on Coal and Global Energy Strategy featured in July issue of Doosan Babcock's Energy Brief
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