Greece backed by Eurelectric for ETS, modernization fund

Eurelectric, the European electricity industry association, has backed Greece’s positions concerning revisions to the EU ETS, a cornerstone of the EU’s policy to combat climate change and its key tool for reducing greenhouse gas emissions cost-effectively.

Eurelectric favors a proposal made by the European Commission and EU member states for the absence of criteria regarding emissions by electricity generating units in order for them to receive emission rights when upgraded, as foreseen in an article for revisions to the ETS.

Three-way negotiations involving the European Commission, European Council and European Parliament are taking place this year on the future of the ETS.

The European Council supports the institutionalization of specific limits that units will need to meet in order to receive carbon emission rights from now on. These standards promise to limit lignite-fired units and, therefore, impact Greece.

Eurelectric is backing both the European Commission and European Council on the matter. The association has also stressed that a “robust structure ensuring full transparency and investment based on the objectives of the directive, without top-down management and control measures. Investments must not affect the functioning of the market, must respect competition and give priority to the modernization of production as well as to networks and energy efficiency.”

Another detail of interest for Greece concerns the country’s inclusion into a category of low GDP member states. Inclusion in this category promises benefits from the EU’s modernization fund in the form of financial support for new projects.

Though an initial proposal did not include Greece in this category, a European Council proposal called for special handling of Greece so that the country could benefit from the fund. Eurelectric noted that EU member states with small GDPs will need to benefit from compensation. The association also wants an increase in compensation levels offered.