1 - prepared by the Energy Community Secretariat - Combating Climate Change in the Energy Community Dr Dirk Buschle Climate Change Carbon Emission Conference Sofia, 29 September 2009

2 - prepared by the Energy Community Secretariat - the energy community in a nutshell I energy community treaty 2006 the parties european community and albania, bosnia&herzegovina, croatia, former yugoslav republic of macedonia, montenegro, serbia and unmik bulgaria as a participant the tasks creating reliable and integrated regulatory framework enhancing security of supply and competition attracting investment improving the environmental situation in relation to network energy

3 - prepared by the Energy Community Secretariat - the energy community in a nutshell II the acquis energy internal market directives and regulations security of supply directives competition and environment environment in particular environmental impact assessment thresholds for sulphur & nitrogen oxides and dusts contracting parties „shall endeavour to accede“ the kyoto protocol

4 - prepared by the Energy Community Secretariat - climate change combating contracting parties‘ situation energy supply dominated by fossil fuels unfccc and kyoto status only croatia unfccc annex I / kyoto annex b country cdm projects only former Yugoslav Republic of Macedonia submitted cdm projecs  rehabilitation of six hpp – rejected  skopje cogeneration – corrections requested

5 - prepared by the Energy Community Secretariat - climate change combating energy community activities I energy efficiency the consumer‘s contribution: saving energy implementation of three directives imminent  energy services  buildings  labelling of household appliances renewable energy implementation/adaptation of new ec renewables directive under preparation  study – defining contracting parties‘ targets  task force

6 - prepared by the Energy Community Secretariat - climate change combating energy community activities II greenhouse gas emissions study  greenhouse gas inventory for non-annex I contracting parties  impact of copenhagen  conclusions emissions trading? directive not part of energy community acquis

7 - prepared by the Energy Community Secretariat - emissions trading establishing a regional framework – options I kyoto emissions trading n.a. implementation under the energy community treaty existing, multilateral framework for transposition of ec law but: limitation to energy sectors (network energy)

8 - prepared by the Energy Community Secretariat - emissions trading establishing a regional framework – options II implementation outside the energy community treaty bilateral framework  saa environmental chapters  obvious shortcomings of bilateral approach  the special case of croatia multilateral framework  regional environmental network for accession (rena)  working group 2 „climate change“ envisages establishment of ets  legal framework unclear  independently?

9 - prepared by the Energy Community Secretariat - climate change combating in the energy community – outlook kyoto flexible mechanisms not too successful in see so far huge potential impact of carbon trade generation mix little margin for price increases much will depend on copenhagen basis for ets basis for linking to ec ets res trading might take the lead

10 - prepared by the Energy Community Secretariat - thank you!