Only guarantees of origin deriving from own investments in RE should be included in industries’ and local authorities’ CO2 accounts
Some electricity products have been and still are unjustly recommended as climatefriendly despite their lack of effect. However, it is possible that a demand for guarantees of origin from renewable energy facilities not older than two years of age – as described in the Danish ’Declaration of Electricity with Climate Impact’ – may create a deficiency and thereby an actual price. If this occurs there will be a minor economic incentive for establishing more RE. Finally, we find it fair that investing consumers include CO2 reductions in their internal CO2 accounts, if the guarantees of origin issued from electricity production derive from consumers ’active investment in more renewable energy facilities.
H Danish ’Declaration of Electricity with Climate Impact’ In order to clean up the market for misleading electricity products a committee established by the Danish Minister for Climate and Energy has drawn up a so-called ’Declaration’ setting up a number of minimum requirements for electricity products and a number of effect descriptions and documentation requirements. Six organizations have contributed: Danish Energy Agency, Danish Energy Association, Energinet.dk, Danish Consumer Council, Danish Society for Nature Conservation, and the Danish Ecological Council. The declaration has succeeded in eliminating a number of the worst misleading products and a number of Danish electricity traders now offer new electricity products that are far better than before and have an actual positive effect on the climate, alternatively establishment of more renewable energy. Find the Danish ’Declaration of Electricity with Climate Impact’ (in Danish) here: www.elpristavlen.dk/Artikler/~/ media/Filer_til_nyheder/Deklarering_af_stroem_med_klimavalg101209.pdf. ashx The Declaration covers three types of electricity products (see also section 5): 1) Electricity with cancellation of allowances or credits – recommending use of the voluntary market 2) Electricity with payment to more renewable energy where payments in a non- profit foundation are recommended. Guarantees of origin can thus be used in the purchaser’s own CO2-accounts. 3) Electricity with cancellation of guarantees of origin from old RE facilities and through State tender is generally not recommended. If you still choose a product using cancellation of GoO’s you should choose to cancel these from facilities not older than two years of age issued for production from RE without State tender.
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CLIMATE-FRIENDLY ENERGY SOLUTIONS
BACKGROUND