1. TEQs (Tradable Energy Quotas) Getting real in a resource-challenged Europe by Shaun Chamberlin Managing Director EEB Annual Conference Brussels, 18 th October 2013

2. What is TEQs? Tradable Energy Quotas is an electronic system for capping (carbon-rated) energy use for all energy users. at national level,,

3. All individual citizens receive an unconditional free Entitlement of TEQs units. Other energy users obtain their units through the weekly Tender (auction). Citizens who use less than their Entitlement may sell them and benefit from their energy-thrift. Those who want or need more may buy them from those who are selling. To purchase any fuel or energy, TEQs units must be surrendered alongside cash payment.

4. What TEQs could achieve

5. THE GUARANTEE

6. What TEQs could achieve THE GUARANTEE CLEAR LONG- TERM SIGNAL

7. What TEQs could achieve THE GUARANTEE CLEAR LONG- TERM SIGNAL STIMULATES INNOVATION

8. What TEQs could achieve THE GUARANTEE CLEAR LONG- TERM SIGNAL STIMULATES INNOVATION REDUCES RESOURCE USE

9. What TEQs could achieve THE GUARANTEE CLEAR LONG- TERM SIGNAL STIMULATES INNOVATION REDUCES RESOURCE USE PROGRESSIVE POLICY

10. What TEQs could achieve THE GUARANTEE CLEAR LONG- TERM SIGNAL STIMULATES INNOVATION REDUCES RESOURCE USE PROGRESSIVE POLICY COMMON PURPOSE

11. An equitable, effective and efficient environmental policy framework – guaranteeing emissions reductions, stimulating confidence and innovation and defending Europe’s access to fuel and energy. www.teqs.netwww.ceeweb.org/rcc

12. UK Political progress First published 1996 Ten Minute Rule Bill 2004 Government funded research 2006 Pre-feasibility study 2008 (‘international abatement’) Env. Audit Committee (+ IPPR/CSE) report All Party Parliamentary Report (media/endorsements)

13. Tradable Energy Quotas SURRENDER Fuel wholesalers/ electricity generators Fuel/electricity retailers Fuel extractors £ MARKET Organisations Primary dealers Citizens 40% Entitlement 60% Tender ISSUE UNITS FLOW THROUGH THE ENERGY CYCLE COMMITTEE ON CLIMATE CHANGE QuotaCo REGISTRAR CARBON BUDGET

14. Tradable Energy Quotas COMMITTEE ON CLIMATE CHANGE CARBON BUDGET

15. THE CARBON BUDGET 1. Establishes the total quantity of TEQs units (rations) that may be issued 2. Guarantee = long-term confidence

16. Tradable Energy Quotas COMMITTEE ON CLIMATE CHANGE QuotaCo REGISTRAR CARBON BUDGET

17. Tradable Energy Quotas 40% Entitlement 60% Tender ISSUE COMMITTEE ON CLIMATE CHANGE QuotaCo REGISTRAR CARBON BUDGET

18. THE ISSUE OF UNITS 1.By equal Entitlement to all adults (40%) 2.By Tender to all other users (60%) The Tender is a weekly auction at which organisations (industry, government etc.) purchase the TEQs units they need

19. THE RATING SYSTEM Carbon units: (all fuel rated by carbon content) 1 unit = 1kg CO 2 (or equivalent gwp) OR Fuel units: 1 unit = 1 litre oil 1 unit = 1 metre 3 gas 1 unit = 1 kWh electricity (etc) (So renewables require almost no TEQs units) (No need for exhaust pipe measurements or carbon labelling)

20. Tradable Energy Quotas MARKET Organisations Primary dealers Citizens 40% Entitlement 60% Tender ISSUE COMMITTEE ON CLIMATE CHANGE QuotaCo REGISTRAR CARBON BUDGET

21. THE MARKET FOR UNITS Everyone has access to the same market. The national market price is set by the Tender. Buying and selling as simple as Oyster or mobile phone credit

22. Tradable Energy Quotas £ MARKET Organisations Primary dealers Citizens 40% Entitlement 60% Tender ISSUE COMMITTEE ON CLIMATE CHANGE QuotaCo REGISTRAR CARBON BUDGET

23. Tradable Energy Quotas £ MARKET Organisations Primary dealers Citizens 40% Entitlement 60% Tender ISSUE UNITS FLOW THROUGH THE ENERGY CYCLE COMMITTEE ON CLIMATE CHANGE QuotaCo REGISTRAR CARBON BUDGET

24. Tradable Energy Quotas SURRENDER Fuel wholesalers/ electricity generators Fuel/electricity retailers Extractors /importers £ MARKET Organisations Primary dealers Citizens 40% Entitlement 60% Tender ISSUE UNITS FLOW THROUGH THE ENERGY CYCLE COMMITTEE ON CLIMATE CHANGE QuotaCo REGISTRAR CARBON BUDGET

25. THE SURRENDER OF UNITS 1.Utility bills: direct debit (8 times a yr) 2.Petrol: by card (20 times a yr) 3.The cash option Embodied energy in other goods No need to measure emissions A hands-free scheme

26. Tradable Energy Quotas SURRENDER Fuel wholesalers/ electricity generators Fuel/electricity retailers Extractors /importers £ MARKET Organisations Primary dealers Citizens 40% Entitlement 60% Tender ISSUE UNITS FLOW THROUGH THE ENERGY CYCLE COMMITTEE ON CLIMATE CHANGE QuotaCo REGISTRAR CARBON BUDGET