issue 17.0, New Values Newsletter

1. New Values news
New Values likes to involve you in its plans and ideas. We keep you constantly informed about what we’re doing and how we’re responding to the latest market developments.

2. Jos Cozijnsen’s column
He’s a familiar figure: Jos Cozijnsen, the man behind emissierechten.nl and guest speaker at various meetings on emissions trading. Every month he airs his opinion in his column.

3. Diary
It’s important to stay up to date in a market that is continually subject to change. New Values keeps you informed about interesting congresses and workshops in the Netherlands and abroad.

1. New Values news

Climex information package

The Climex CO2 trading platform is now ready for use. It fully complies with the requirements of the Emissions Authority and the European Commission and is connected to the Emissions Registry. The platform facilitates trading in EU Allowances (EUA) as defined in accordance with the EU Emissions Trading Scheme. In the future these Allowances will be followed by CER and JI certificates: emission credits generated via projects in the framework of the Kyoto Protocol.

We have prepared an information pack which tells you exactly what Climex can do and what it costs. This consists of:

• Log-in account for the Climex demo environment;
• The Climex legal documents:
  • Climex Participation Agreement;
  • APX Clearing Agreement;
  • Climex Definitions;
  • Climex Trading Rules;
  • Climex Rule Book;
  • The Climex rates;
  • General terms.

If you would like to receive the information pack then please fill out our online application form at www.climex.com www.climex.com or contact our Service Desk via csdesk@newvalues.net, or +31 (0)20 305 4073.

Guide Book for emissions trading available

Working within the project co2ncept, the German New Values community partner company 500 PPM has cooperated with various experts to produce a guide book for CO2 emissions trading (‘Leitfaden Zertifikatehandel’). This supports companies in applying the new environmental instrument emissions trading. The guide book (available only in German) can be downloaded as PDF file on co2ncept.net. A print version will be available from mid-April onwards and can also be ordered via co2ncept.net.

CO2 monitoring with EuMoS as an attractive option for New Values customers

The European Monitoring System for greenhouse gas emissions (EuMoS) is a very user-friendly, flexible and well-conceived package of data collection software for companies within the EU emissions trading scheme. The software is available as a full version under a GNU Public License and is therefore freeware and open sourced. The system can be downloaded from www.eumos.de. If your engineers are currently working on an effective monitoring system for CO2 emissions, then New Values recommends that you take a closer look at this system or that you contact www.500ppm.com, one of our community partners in Germany.

Furthermore the EuMoS User Group is now being set up, and further modules will be developed which are tailored to the needs of the members. New Values customers can take advantage of a 15% discount and pay just EUR 1,275. This sum includes all developed modules and two workshops per year, at which current topics relating to emissions trading are discussed with experts.

2. Jos Cozijnsen’s column

Special treatment for energy sector in emissions trading justified?

I’m increasingly tending to agree with the energy-intensive industry sector. They are saving fit to burst but are still faced with the prospect of having to pay power companies more for their electricity. They feel that the electricity sector has been generously endowed with emission rights and consider it unjust that the CO2 emission price is now simply being passed on to them.

I can understand their concern. I would expect a power company to try to limit its own costs, and thus the costs for the consumer, by taking emissions into account. Essent, for instance, says it is burning a higher proportion of gas because this is cheaper in terms of CO2 emission. A power company which pays no heed to emissions, but which simply burns coal and then charges a higher electricity price because it has to buy extra emission rights (and then passes on the cost) should, in my opinion, be subjected to a competitive disadvantage.

Now the electricity-intensive industry sector claims that power companies are consistently passing on the emission costs to their customers, whether this is the result of CO2 policy or not. That doesn’t seem just to me. Economists call this ‘opportunity cost’ and say that a power company which has about € 10 million of emission rights on its account should be allowed to reap the benefits: the electricity price then goes up because the rights aren’t sold.

A pretty strange state of affairs. One reason may be that the energy market has not yet been sufficiently liberalized and there is a lack of competition. However, the IASB (accountancy organization) advises that emission rights held by a power company on its annual account through allocation should be set off against the corresponding emissions and that the rights be assigned a zero value. Meaning you can forget the ‘opportunity cost’. But as said, maybe the energy market is still not sufficiently liberal. So I can also understand the argument of the British energy-intensive industry: that separate CO2 markets and rules should be created for the industry and energy sectors. Because now the power companies are the active ones on the emissions market while the industry sector is appalled by the sometimes jubilant mood of these players.

(Regarding this see: http://community.newvalues.net/international/000680.shtml )

3. Diary

19-20 april, EU climate change policy beyond Kyoto: Building a global climate change agreement, Brussel:
organisation and application: CEPS and EU.

21/22 april, New EU Directives for the Financial Services Market and their Impact on the Energy Market, Berlijn:
(http://www.gee.de/kraus_2_05/ProgEnglGEEWebseite.htm) with the participation of New Values in the discussion panels

11-13 mei, Carbon Expo, Frankfurt: Köln
(www.carbonexpo.com)

Events

IHK Akademie: On 28 April 2005 a one-day symposium is being held at the IHK Akademie in Munich, organized by the Bavarian Chamber of Commerce and BayCO2 and giving recent information about trading in emission reduction certificates.

Netinforum: Emissions Trading and Climate Change is the topic at the symposium (including exhibition) held on 21 and 22 June 2005 at the TÜV Akademie in Munich. Further information can be found under: www.bildung4me.de

Subscribe/unsubscribe information

Do you want to subscribe? Please, fill out the opt-in form on www.newvalues.net, and you will automatically receive the next newsletter in your mailbox. Do you want to cancel your subscription? Please, fill out the opt-out form on www.newvalues.net and your email address will automatically be deleted from the list.