Romania Toward a Low Carbon and Climate Resilient Economy : Better Use of Revenues from Auctioning European Union ETS Carbon Allowances for Climate Finance Programs in Non-ETS Sectors
Romanian industrial and power installations entered the European Union Emissions Trading Scheme (EU ETS) in 2007 when Romania joined the European Union. Emissions from aircraft operators were included in 2012. Around 200 Romanian installations and...
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| Format: | Brief |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2016
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| Online Access: | http://documents.worldbank.org/curated/en/2016/03/26048806/romania-toward-low-carbon-climate-resilient-economy-better-use-revenues-auctioning-european-union-emissions-trading-scheme-carbon-allowances-climate-finance-programs-non-ets-sectors http://hdl.handle.net/10986/24067 |
| Summary: | Romanian industrial and power
installations entered the European Union Emissions Trading
Scheme (EU ETS) in 2007 when Romania joined the European
Union. Emissions from aircraft operators were included in
2012. Around 200 Romanian installations and operators
currently participate in the European Union Emissions
Trading Scheme (EU ETS), out of a total of some 10,000, and
they emitted around 40 percent of Romanian greenhouse gases
in 2013. By the end of 2014, Romania collected about 260
million Euros from the EU ETS auctioning revenues, of which
71 percent was dedicated to climate finance projects.
Potential EU ETS auctioning revenues for Romania could
amount to around 4 billion per year by 2030. As the
government strives for a climate resilient, low-carbon
economy by 2030, the efficient use of revenues from the
auctioning of EU ETS allowances could be an effective tool
for reaching this goal in the sectors not covered by
existing climate finance mechanisms and policy regulations.
The introduction of a Market Stability Reserve (MSR) in 2018
is expected to increase significantly the carbon price. To
conclude, in order to constitute a viable and longer-term
climate finance programs supported by EU ETS auctioning
revenue, it is necessary to amend the current legislation
and approve an updated financial and organizational scheme
for the use of EU ETS revenues. |
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