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Policies and Measures Addressing Climate Change: Industry, Transport, Energy Production, 2007
Policy Name
Austria
Belgium
Description
Green Electricity Act
The Green Electricity Act governs the aid for green energy and combined heat and power generation throughout the
country. The objectives laid down in the Green Electricity Act are namely to generate a proportion of 9 % from small-scale
hydroelectric plants and 4 % from eco plants by providing aid in the form of supply tariffs until the year 2008 so that the
overall objective of 78.1 % of electricity from renewable sources can be reached (the rest being generated from large
scale hydro).
• All operators of green plants have the right to a listing of the certification of origin by the network operators.
• The electricity identification system, which regulates the identification of the source of energy used to generate the electricity on bills, will be standardised after a transitional period up to 1 July 2004 and then all electricity dealers must identify a standard composition on all their end consumer bills ("standard dealer mix").
Green Electricity Act –
2006 Amendment
In May 2006, Austria's parliament approved a government draft law stipulating that renewables will account for an additional 10% of electricity consumption by 2010 and provides EUR 1.05bn in support to reach that target. The environment
ministry said biogas, biomass and wind power would each get a 30% share of the funds, with the remaining 10% going to
other renewable sources.
Transposition of Bio Fuels
Directive 2003/30/EC –
Mineral Oil Tax Revision/
Fuel Ordinance Amendment
In November 2004, the Austrian Federal government transposed the Bio Fuel Directive - 2003/30/EC - into Austrian national law with an amendment to the Fuel Ordinance. This amendment required all fuel suppliers, from 1 October 2005, to
offer 2.5% of their fuels' total energy quantity as bio fuels. From 2007, this percentage will increase to 4.3%, and in 2008
the target of 5.75%, as stipulated in the Directive.
The Mineral Oil Tax was revised to accompany amendment of the Fuel Ordinance. Accordingly, tax concessions will be
granted with a bio fuel share of at least 4.4% (for diesel since 1 October 2005, for gasoline starting on 1 October 2007).
However, to profit from the tax concessions, the fuel must also be sulphur-free (less than 10 mg sulphur per kg of fuel).
The use of pure bio fuels as motor fuel is exempt from tax.
As of June 2007, the Austrian government had planned further bio fuels promotion.
Implementation of the EU
Directive on Bio Fuels for
Transport
The Federal Government has adopted the EU Directive on the Promotion of the Use of Bio fuels and Other Renewable
Fuels for Transport. In implementing the Directive, Belgium promotes a minimum proportion of bio fuels and other renewable fuels (2% in 2005; 5.75% in 2010) within the national market. These percentages are calculated on the energy content of all petrol and diesel for transport purposes placed on the Belgian market.
Green Certificates Scheme
– Wallonia
A framework-decree of the Walloon government on 12 April 2001 on the liberalisation of the electricity market foresaw the
creation of funds to encourage the rational use of energy, financed by a charge imposed on the grid manager, and the
introduction of a greens certificates market to encourage the renewable production of electricity. In its implementing decree of July 2002, the Walloon government established a target of 3% of electricity demand to be met from renewable
sources in January 2003 at the trading scheme's commencement. Further targets include quotas of 7% by 2007 and 12%
by 2012, the latter to be achieved by producing 8% of Wallonia's electricity from renewable sources and 14% from CHP.
Implementation. Each quarter, a producer of green-certified electricity receives an amount of green certificates proportional to the green electricity production and the rate of CO2 offset relative to the CO2 emissions of a gas vapour turbine
for the same amount of electricity.
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Policies and Measures Addressing Climate Change: Industry, Transport, Energy Production, 2007
Belgium
(cont.)
Policy Name
Description
Green Certificates Scheme
– Wallonia
Each quarter, an electricity supplier must surrender a quota of green certificates corresponding to its total supply of electricity to the CWaPE (Walloon Commission for Energy). In the event of non-compliance with the quota obligation, the supplier will be fined EUR 100 per missing green certificate, a sum which will accrue to the Energy Fund.
The Walloon regulator certifies the quota obligation every three months and publishes information about green certificates. Additionally, the Walloon government may allow green electricity producers the choice to participate in the green
certificates system or to benefit from a government support system at € 65/MWh. This support for green electricity production is financed by the Energy Fund.
(cont.)
Voluntary Agreement with
Industry – Flanders
Czech Republic
For large energy-intensive industries (energy consumption <0.5 PJ), participating companies commit themselves to bring
their energy efficiency up to world top level by 2012. In 2004, negotiations have taken place, or are ongoing, with the iron,
steel, paper and cardboard sectors and with the chemical industry. The Flemish Economic Federation took part in these
talks. The Flemish region is building the tools to implement benchmarking agreements for the energy-intensive industry,
the other industries being invited to make any energy saving investments with a pay-back time less than five years. Periodic energy audits will define the suitable investment programmes.
Act on the Promotion of the The Act regulates the rights and obligations of participants in the renewable electricity market and conditions of support
Use of Renewable Energy for the purchase and registration of electricity production from renewable sources. The purpose of the Act is to support
Sources
the use of renewable sources of energy, i.e. wind energy, solar energy, geothermal energy, water energy, soil energy, air
energy, biomass energy, landfill gas energy, sewage gas energy and biogas energy. The purpose of the Act is also constant increasing of the share of renewable sources in the consumption of primary energy sources, economical use of
natural resources and meeting of an indicative target of the share of electricity produced from renewable sources in the
gross consumption of electricity in the Czech Republic at 8 % by 2010.
The support applies to the production of electricity from renewable sources generated in facilities in the Czech Republic
using renewable sources and it has been determined differently subject to the type of a particular renewable source, level
of installed capacity of the generating plant and also, for instance, by parameters of biomass. The support applies also to
the production of electricity from mine gas from closed mines.
The Act regulates the rights and obligations of participants in the renewable electricity market, conditions of support, purchase and registration of renewable electricity, setting the prices for renewable electricity separately for individual types of
renewable sources and green bonuses, the manner of regular assessment of the share of electricity produced from renewable sources in the gross consumption of electricity for the previous calendar year and the calculation of anticipated
impacts of support on the overall price of electricity for end customers in the next calendar year.
Act on the Promotion of the The Act also provides for the performance of controls through the National Energy Inspection and the amount of individual
Use of Renewable Energy penalties for administrative delays.
Sources (cont.)
The Act comes into effect on the first day of the third calendar month following the date of its promulgation, i.e. as from
1 August 2005.
Construction of
CHP Facilities
The Energy Economy Act approved by the Czech Parliament in 2000 required the construction of plants for combined
heat and power production (cogeneration) for all boilers larger than a specified size unless energy audits indicated technical or economic barriers to construction.
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Policies and Measures Addressing Climate Change: Industry, Transport, Energy Production, 2007
Policy Name
Germany
Greece
Description
Energy Industry Act
A framework policy to enhance competition, security of supply and sustainable energy production, Germany's Energy
Industry Act requires electricity labelling according to type of energy source.
CHP Law
The Co-generation Act which came into force in April 2002, guarantees temporary bonus-payments from the operators of
the public grid for CHP-electricity transferred to the public grid. The amounts of bonus-payments vary according to the
type of CHP-installation, and are declining. An accreditation from the Federal Office of Economics and Export Control
(BAFA) for the installation is requested. The amount of the bonus-payments varies from 1,53 Cent/kWh in 2002 reduced
annually to 0,97 Cent and phasing out in 2006 for existing CHP-plants, to 5,11 Cent/kWh for new small installations up to
50 kilowatt if continuous operation is taken up until end of 2005 as well as for fuel cell plants for ten years.
Incentives for Investment in INVESTMENT INCENTIVES
Combined Heat and Power The Greek government has promoted CHP primarily through Development Laws (1982/90 and 2601/98), the Operational
Programme for Energy 1994-1999 (OPE) and the Operational Programme for Competitiveness 2000-2006 (OPC), which
received financing from the EU Community Support Framework.
When all mechanisms were in operation, the CHP investor chose the preferred mechanism. Eligible investors were required to demonstrate fuel efficiency of at least 60% for the industrial sector and 65% for the services sectors.
PRICING
Law 2773/99 replaced the provisions of Law 2244/94 on the buy-back tariffs for electricity produced by CHP. In the interconnected system, the generator received compensation for energy, which was 90% of the energy part in the mediumvoltage end-use tariff and for capacity that was 50% of the capacity part in the same tariff. Prices in the noninterconnected system were determined as percentages of the then current PPC low-voltage residential tariffs, ranging
from 60% for CHP using fossil fuels to 90% for CHP using renewable energies.
Hungary
Structural Funds for
Environment Protection and
Infrastructure Operative
Programme (EIOP)
Subsidies
The Environment Protection and Infrastructure Operative Programme of Hungary's National Development Plan specified
measures to promote energy efficiency and renewable energy sources.
In 2006, the EPIO provided HUF 280 mill. in subsidies to three types of energy efficiency project: the modernisation of
buildings and institutions, the development of district heating systems, and the promotion of cogeneration.
Since inception, the program focused on:
• installation of systems producing wood chips and pellets, baling equipment, and vegetable oil presses,
• promotion of investments in renewable energy (biomass, geothermal energy, solar collector, PV, wind power,
hydro power)
• district heating systems using biomass or geothermal energy or waste deposit gases
• modernisation of buildings, district heating systems, application of cogeneration.
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Policies and Measures Addressing Climate Change: Industry, Transport, Energy Production, 2007
Policy Name
Description
Italy
2% Renewables Target –
Green Certificates
The legislative decree 79/1999 entitled “Implementing the European Directive 96/92/EC with common rules for the single
market of electricity” has introduced many rules regarding renewable energy sources. First, electricity from renewables is
entitled to priority access to the electricity grid. Secondly, a new support mechanism has been introduced, based on
minimum quota obligation: as from 2002, those subjects producing or importing electricity from non-renewable sources
exceeding 100 GWh/ year (excluding combined heat and power generation, export and plant consumptions) are obliged
to put into the grid a minimum quota of electricity produced from plants fed by renewable energy sources and entering
into operation after 1 April 1999. The quota is fixed at 2% (corresponding to an additional production capacity of 9,000
GWh), but the legislative decree provides for an increase. Suppliers that have no clean electricity sources can use energy
from other companies by buying "green certificates", which will be valid for 8 years and will be sold by renewable firms.
Certificate prices will be market led.
Luxembourg
Electricity Tax / Subsidies
for Energy Auditing
As noted in the National Budget 2000, a planned levy on electricity sales would compensate companies for proven energy conservation and energy audits. levy is foreseen in the law reorganizing the market for electricity. Taxes revenues
would also subsidize programmes of rational energy use or energy savings.
Portugal
Energy Efficiency and
Endogenous Energies
(E4) Programme
The former E4 Programme (Energy Efficiency and Endogenous Energies) launched in 2001, established goals concerning the exploitation of renewable energy sources (RES) for power (and thermal) generation, which were consistent with
the EU Directive on renewable electricity (2001/77/CE), under which Portugal has to aim to deliver 39 % (including large
hydro) of its gross electricity consumption by 2010.
The current energy policy framework is in line with the E4 Programme and, for some RES, the Portuguese government
has set even more ambitious targets for 2010, namely:
• wind power: 3 750 MW (currently ~300 MW)
• photovoltaics: 150 MWp (currently ~2 MW).
The initiatives (legislation, incentive schemes) introduced in 2001/2002, aiming at stimulating the market (private investors), not only for RES electricity, but also for CHP, solar thermal use and building energy efficiency, are underway. These
are namely:
Decree-Law defining the conditions regulating the awarding and management of grid interconnection points for Independent Power Producers (IPP).
Decree-Law establishing a range of favourable feed-in tariffs for RES electricity.
Decree-Law regulating the delivery of electrical energy into the low-voltage grid (micro-generators, including PV).
National programme for supporting wide diffusion of solar water heating.
National programme on building energy efficiency.
Adapting or broadening the scope of financial incentives for energy efficiency and use of endogenous energies in the
framework of the POE/PRIME Programme (Operational Programme for Economical Development).
This legislation was surpassed in 2003 by Cabinet Resolution No. 63/2003.
Norway
Passenger Vehicle
Purchase Tax
The purchase tax on cars was initially fixed according to the value and weight of different models. Although no precise
estimates of its effects are available, the weight component may be an incentive to purchase lighter, more energy-efficient
cars. In addition, since 1996, the tax has been differentiated to replace its value-base element with an energy performance component. In 2006, the tax structure was evaluated to potentially include a vehicle's CO2 emissions within the
calculation of its purchase tax.
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Policies and Measures Addressing Climate Change: Industry, Transport, Energy Production, 2007
Policy Name
Description
Switzerland
Electricity Supply Law on
Renewable Energy
In an official statement on 26 April 2005, the Swiss government proposed a national green energy target of supplying
10% of present annual power demand with renewably-generated electricity. The draft Federal Electricity Supply Act
(StromVG) proposes feed-in tariffs to support generation of 5.4TWh from domestic renewable energy sources: wind, biomass, small hydro, solar and geo-power.
The planned supply law sets the costs of this green power target at not more than SFR 165 mill. per year.
Australia
Solar Cities
The Australian Government's 2004 Energy White Paper, Securing Australia's Energy Future, committed AUD 75.3 mill. to
fund a series of trials to gauge the benefits of concerted use of solar and energy efficient technologies combined with
interval metering. The Solar Cities trials sought to address barriers to solar generation and demand side participation in
grid-connected urban areas, including the appropriately pricing and valuation of these technologies and demand side
measures in the evolving energy markets to support their commercial uptake.
Mandatory Renewable
Energy Target (MRET)
The Renewable Energy (Electricity) Act 2000 sets the framework for the Mandatory Renewable Energy Target (MRET).
The government's renewable energy target seeks to raise the contribution of renewable energy sources in Australia's
electricity mix by 9 500 GWh per year by 2010 and maintain this requirement until 2020. Under this measure, tradable
Renewable Energy Certificates (RECs) are used to demonstrate compliance with the objective.
All wholesale electricity purchases on grids of more than 100 MW of installed capacity have to apply mandatory renewable energy targets since 1 April 2001. In order to meet their obligation, liable parties (wholesale purchasers) surrender
Renewable Energy Certificates to the Renewable Energy Regulator. A Renewable Energy Certificate represents 1 MWh
of electricity. Eligible generators of Renewable Energy Certificates include not only power stations such as wind farms but
also domestic size deemed facilities such as roof-top photovoltaics. The penalty payment for non-compliance is AUS$40
per MWh (non-tax deductible). The Office of the Renewable Energy Regulator administers the MRET.
Government Energy
Efficiency Action:
Public Buildings,
Operations and Vehicles
To reduce the intensity of energy use in Commonwealth operations, the Australian government launched a series of
measures involving multiple sectors of energy efficiency.
Under the policy for improving energy efficiency in government operations introduced in 1997, budget dependent agencies were required to meet energy efficiency targets by 2002/3. The agencies were required to document their progress
by submitting energy consumption data annually to the Australian Greenhouse Office within the Department of Environment and Heritage. Energy intensities, such as MJ/person, MJ/square metre and MJ/kilometre, were calculated and used
to track changes in energy performance over time to enable simple comparisons between similar facilities.
The 2004 publication of a green vehicle guide (GVG) provided comparative environmental ratings and fuel consumption
figures for all light vehicles sold in Australia. This guide was used as the basis for a target to increase the portion of those
vehicles in Federal government agencies' fleets which score in the top half of the Green Vehicle Guide from 18% to 28%
by December 2005.
Green Power Scheme
The Green Power Scheme is a national accreditation program that sets stringent environmental and reporting standards
for renewable energy products offered for voluntary purchase by electricity suppliers to households and businesses.
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Policies and Measures Addressing Climate Change: Industry, Transport, Energy Production, 2007
Policy Name
Japan
Renewable Portfolio
Standards (RPS)
Description
1. RPS Law (Special Measures Law Concerning the Use of New Energy by Electric Utilities or Renewables Portfolio
Standards Law):
Obliges electric industry utilities to use a fixed amount of new energy towards the aim of promoting the introduction of new
energies (enacted in April 2003)
Stipulates in Paragraph 1, Article 3 that the utilization targets for the subsequent eight years beginning in the said fiscal
year shall be established every four years.
2. Course of deliberations
Based on the above stipulation, a report was compiled in March 2007 following an examination launched in November
2006 by the RPS Law Subcommittee of the New Energy Committee, Advisory Committee for Natural Resources and Energy (Chairman: Kenji Yamachi, Professor at The University of Tokyo)
3. Key Points of the Report
Utilization Target for fiscal 2014
The utilization target for fiscal 2014 was established at 16 billion kWh as a realistic and ambitious goal.
Improvement of the RPS Law System
Photovoltaic power generation: Introduction of a measure whereby electricity generated by solar photovoltaic generation
is recognized as twice its value for the period between fiscal 2011 and 2014: PV generating 1 kW will be counted as 2 kW
to encourage power suppliers to purchase more electricity from solar PV generation. At the time of the report's publication, the cost of the electricity from PV was twice as high as that produced by wind turbines. The duration will be limited
from FY2011 to FY2014 as the new target of the RPS for the period of after FY2015 will be set by FY2010 - the government revises its RPS targets every five years.
Small- and medium-scale hydraulic and geothermal power generation: Categories were expanded to include and positively approve forms of power generation in which future growth is projected.
• Includes power generation using water for river maintenance, ie, the volume of water that the Fisheries Agency requires
hydropower developers to release from dams to maintain local fish populations, with a capacity of 1,000 kW or less.
• Geothermal power generation using hot spring water. This law is likely to enhance binary cycle or carina cycle power
from hot springs of temperature below 100 Celcius that has not yet been developed.
Biomass power generation: An application standard that gives recognition to material cycle was added concerning the
use of wood chips. This "Standard of Material Cycle' requires the government to examine how the biomass supply for
biomass power generation will be sustained over the next decades. At the time of the report's publication, wood chips and
waste from construction and maintenance was in brisk demand, as old wood can be reintegrated as building material.
Governmental Measures
The government in future will expand the potential for the introduction of new energy by reviewing various restrictions in
addition to financial assistance for new energy.
Particular efforts will be made for the moment to consistently tackle the following tasks:
• Promotion of measures by the nation as a whole through the utilization of the Certificate of Green Power and other
means
• Measures for the further dissemination of wind power generation including policies on system interconnection, etc.
• Promotion of technological development and other steps to reduce the cost of photovoltaic power generation.
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Policies and Measures Addressing Climate Change: Industry, Transport, Energy Production, 2007
Policy Name
United States
Description
Public-Private Partnership – Established in 2000 between the EPA and large corporations, the Climate Savers voluntary program aims to help busiClimate Savers
nesses reduce energy consumption and emissions of greenhouse gases. In joining Climate Savers, companies make
specific commitments to reduce those emissions and participate in an independent verification process.
CHP: combined heat and power; kWp: Kilo Watt peak (peak performance); MWh: Mega Watt hour; MJ: Megajoule; EPA: Environmental Protection Agency, PJ: Petajoule
Source: IAE, Climate Change Database (http://www.iea.org/textbase/pm/Default.aspx?mode=cc), accessed 17. September 2007.
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