teqs (tradable energy quotas) getting real in a resource-challenged europe by shaun chamberlin...
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TEQs(Tradable Energy Quotas)
Getting real in a resource-challenged Europe
by Shaun ChamberlinManaging Director
EEB Annual Conference
Brussels, 18th October 2013
What is TEQs?
Tradable Energy Quotas isan electronic system for capping
(carbon-rated) energy use
for all energy users.at national level
,,
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.
What TEQs could achieve
What TEQs could achieve
THE GUARANTEE
What TEQs could achieve
THE GUARANTEE
CLEAR LONG-TERM SIGNAL
What TEQs could achieve
THE GUARANTEE
CLEAR LONG-TERM SIGNAL
STIMULATES INNOVATION
What TEQs could achieve
THE GUARANTEE
CLEAR LONG-TERM SIGNAL
STIMULATES INNOVATION
REDUCES RESOURCE USE
What TEQs could achieve
THE GUARANTEE
CLEAR LONG-TERM SIGNAL
STIMULATES INNOVATION
REDUCES RESOURCE USE
PROGRESSIVE POLICY
What TEQs could achieve
THE GUARANTEE
CLEAR LONG-TERM SIGNAL
STIMULATES INNOVATION
REDUCES RESOURCE USE
PROGRESSIVE POLICY
COMMON PURPOSE
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.net
www.ceeweb.org/rcc
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)
Tradable Energy Quotas
SURRENDER
Fuel wholesalers/ electricity
generators
Fuel/electricity retailers
Fuel extractors
£
MARKET
Organisations
Primary dealersCitizens
40% Entitlement
60% Tender
ISSUE
UNITS FLOW THROUGH THE ENERGY CYCLE
COMMITTEE ON CLIMATE
CHANGE
QuotaCo REGISTRAR
CARBON
BUDGET
Tradable Energy Quotas
COMMITTEE ON CLIMATE
CHANGE
CARBON
BUDGET
THE CARBON BUDGET
1. Establishes the total quantity of TEQs units (rations) that may be issued
2. Guarantee = long-term confidence
Tradable Energy Quotas
COMMITTEE ON CLIMATE
CHANGE
QuotaCo REGISTRAR
CARBON
BUDGET
Tradable Energy Quotas
40% Entitlement
60% Tender
ISSUE
COMMITTEE ON CLIMATE
CHANGE
QuotaCo REGISTRAR
CARBON
BUDGET
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
THE RATING SYSTEMCarbon units:
(all fuel rated by carbon content)
1 unit = 1kg CO2 (or equivalent gwp)
OR
Fuel units:
1 unit = 1 litre oil
1 unit = 1 metre3 gas
1 unit = 1 kWh electricity (etc)
(So renewables require almost no TEQs units)
(No need for exhaust pipe measurements
or carbon labelling)
Tradable Energy Quotas
MARKET
Organisations
Primary dealersCitizens
40% Entitlement
60% Tender
ISSUE
COMMITTEE ON CLIMATE
CHANGE
QuotaCo REGISTRAR
CARBON
BUDGET
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
Tradable Energy Quotas
£
MARKET
Organisations
Primary dealersCitizens
40% Entitlement
60% Tender
ISSUE
COMMITTEE ON CLIMATE
CHANGE
QuotaCo REGISTRAR
CARBON
BUDGET
Tradable Energy Quotas
£
MARKET
Organisations
Primary dealersCitizens
40% Entitlement
60% Tender
ISSUE
UNITS FLOW THROUGH THE ENERGY CYCLE
COMMITTEE ON CLIMATE
CHANGE
QuotaCo REGISTRAR
CARBON
BUDGET
Tradable Energy Quotas
SURRENDER
Fuel wholesalers/ electricity
generators
Fuel/electricity retailers
Extractors/importers
£
MARKET
Organisations
Primary dealersCitizens
40% Entitlement
60% Tender
ISSUE
UNITS FLOW THROUGH THE ENERGY CYCLE
COMMITTEE ON CLIMATE
CHANGE
QuotaCo REGISTRAR
CARBON
BUDGET
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 goodsNo need to measure emissions
A hands-free scheme
Tradable Energy Quotas
SURRENDER
Fuel wholesalers/ electricity
generators
Fuel/electricity retailers
Extractors /importers
£
MARKET
Organisations
Primary dealersCitizens
40% Entitlement
60% Tender
ISSUE
UNITS FLOW THROUGH THE ENERGY CYCLE
COMMITTEE ON CLIMATE
CHANGE
QuotaCo REGISTRAR
CARBON
BUDGET