1. BOP Working Group Emission allowances, the case of Austria (Item 13) René Dell‘mour, Patricia Walter November, 27th 2012

2. www.oenb.at - 2 - Emission allowances – basic ideas  Core instrument of European Climate Policy (EG 2003/87/EG) “Cap and trade” – system for CO 2 emissions (and/or NOX) Overall limit of emissions is defined and allocated to participants (by MS) participants receive emission certificates (for free) certificates may be sold or lent, if not needed certificates may be bought or borrowed, if emissions exceed limit should guarantee efficient use of resources to reduce greenhouse gas emission Covers plants that contribute significantly to emissions 40% of total pollution  Pilot Phase 2005 - 2007  Kyoto Phase 2008 - 2012  Phase Three 2013 - 2020

3. www.oenb.at - 3 - Emission allowances – first results  Phase one – 4 sectors: Energy (incl. refineries), metal industry, non-metallic mineral products (cement, glass, ceramics), pulp and paper - 95% free  Certificates were distributed generously > no scarce goods > almost no demand => no trade  Phase two – more focused, national limits were reduced by EU: > in 2008 emissions exceeded allowances by 8% > economic crisis reduced emissions – no effect > recent rise of prices caused by Fukushima accident  Phase three – goal 20% less emissions than 1990: > auction for the energy sector > non - critical sectors only 80% - 30% for free

4. www.oenb.at - 4 - Trade in European Emission allowances By comparing issuing country and country of redemption  Total issuance of certificates:> 2.000 mt  Total emissions recorded:< 2.000 mt  Total trade phase 1~ 120 mt per year  Total trade phase 2~ 150 mt per year

5. www.oenb.at - 5 - Emission certificates and the BOP  Primary allocation to participants  is not a cross-border transactions  Is therefore irrelevant for BOP-Statistics  Emission certificate is a non-produced non-financial asset  shall be recorded in the Capital Account (if cross-border)  like natural resources, contracts, leases, licenses and marketing assets  not as “Capital transfer”, which refers mostly to debt forgiveness  shall be recorded under  DEBITS if emission allowances are bought (Acquisition)  CREDIT if emission allowances are sold (Disposal)  NO ENTRY in the IIP  because there is no counterpart liability

6. www.oenb.at - 6 - Data sources: The case of Austria  200 enterprises have to provide emission certificates (polluters)  50 „personal accounts“ held by voluntary traders  may register in other countries  Federal government trades (mostly during the initial phase)  Quarterly, regional breakdown only annually  Register exist in all MS (AT “Umweltbundesamt”), but  Information only on volumes (mt) allocated, used, traded  Overall register : CITL (see next page)  Price information available  from trading places, or  from annual report to the parliament (only annual average)  With BPM6 we will introduce a separate code for reporting

7. www.oenb.at - 7 - Centralized European Register  Community Independent Transaction Log (CITL)  Data by plant  Allocation and verified emissions  Grouped into 8 sectors  Data for all MS (Excl. BG, plus NO, LI) available until 2011 http://www.eea.europa.eu/data-and-maps/data/european-union-emissions-trading-scheme-eu-ets-data-from-citl-4

8. BOP Working Group Emission allowances, the case of Austria (Item 13) René Dell‘mour, Patrizia Walter November, 27th 2012