Gas Emission Allowance Trading Research Articles

TRADING IN GREENHOUSE EMISSIONS QUOTAS: ACCOUNTING APPROACH

Over the last century, there has been a significant increase in the concentration of greenhouse gases in the atmosphere. This calls for the study of global climate change and the search for mechanisms to influence such change. The purpose of the study is to outline the legal and economic prerequisites for trading in greenhouse gas emission allowances, the formation of its accounting support based on the definition of the nature of quotas and their classification.
 The United Nations Framework Convention on Climate Change, and later the Kyoto Protocol and the Paris Agreement, aim to use the world's economic mechanisms to prevent climate change. The Paris Climate Agreement stipulates that all states, regardless of their level of economic development, undertake to reduce harmful emissions into the atmosphere. The economic instruments of the state policy on decarbonisation include: the system of greenhouse gas emission allowance trading and the environmental tax on greenhouse gas emissions. In order to provide reliable information on the number of quotas for greenhouse gas emissions, which directly affects the amount of quotas to be implemented, they must be reflected 
 in the accounting of enterprises.
 It has been proven that quotas for greenhouse gas emissions from the point of view of accounting are an intangible asset in the form of a permit for greenhouse gas emissions into the atmosphere. It is proposed to divide the quota for greenhouse gas emissions into target and surplus. At the same time, excess quotas by source of income are divided into government and other countries' quotas.
 The main significant shortcoming in the functioning of the greenhouse gas emission allowance trading system is the lack of an accounting system for greenhouse gas emission allowances, which makes it impossible to obtain reliable information on allowance trading transactions at the level of enterprises that are major players in the internal market. The issue of accounting for greenhouse gas emission allowances is a prospect for further research.

Aspects of the introduction of alternative gas fuels and their influence on the quality of natural gas

The paper announces that the Ministry of Energy and Environmental Protection of Ukraine has developed the “Ukrainian Green Deal”, the ambitious goal of which is the transition to a climate-neutral economy, reducing greenhouse gas emissions and decarbonizing the economy by 2070. The “European Green Deal” provides for the achievement of similar goals by 2050. It is mentioned that the share of biomethane and “green” methane in the overall system of transmission and consumption of natural gas is planned to increase. The process of biomethane production by biogas enrichment and carbon dioxide separation is described. The perspective course of pure hydrogen production by water electrolysis due to the use of excess “green” energy from solar and wind power plants is noted. The way of complex integration of biomethane and “green” hydrogen production is suggested. The process of “methanation”, i.e. the conversion of “green” hydrogen and carbon dioxide as a waste product in the production of biomethane is described. The readiness of the NAAU to accredit verification bodies of greenhouse gas emission due to the introduction of the greenhouse gas emission allowance trading in Ukraine was stated. The calculation of the combustion heat values, density and Wobbe number for natural gas when mixed with pure hydrogen has been simulated. It is pointed that when the heat of combustion decreases and exceeds the permissible limits, the Wobbe number does not exceed the minimum set value, which indicates the absence of the need to replace gas-consuming equipment. It is argued that if it is necessary to increase the combustion heat of a mixture of natural gas with hydrogen, it is necessary to enrich it with “heavy” hydrocarbon gases.

ECOLOGICAL DUE DILIGENCE - MAINSTREAM IN INSURANCE

Introduction. In today's world, environmental problems related to accidents, natural disasters and catastrophes have been exacerbated by environmental pollution caused by the ongoing russian-Ukrainian war, which continues to this day. At the state level, in this situation, of course, it is difficult to use instruments of influence, as in Ukraine there is no legal framework that would serve as a foundation for legislative regulation of environmental insurance. Given this positioning in this context, environmental insurance becomes especially relevant, which is preceded by environmental due diligence - the mainstream of the world. Purpose. Identify the importance of environmental due diligence for the world community and prove that it is mainstream in insurance in today's world. Method (methodology). The research used such methods as logical, which allowed to analyze scientific works in the field of environmental due diligence; analysis and synthesis, which made it possible to identify factors influencing the mainstream in insurance; graphical, which allowed to interpret the results in a visual form. Results. The stages of development of climate policy in the world are determined. Emphasis is placed on decarbonisation, which includes such areas as resources (renewable energy sources, restrictions on mining, abandonment of coal generation, capture, use and storage of carbon dioxide, hydrogen energy), infrastructure (implementation and application of «green» tools), markets and carbon pricing (CO2 tax (carbon tax, transboundary carbon tax), greenhouse gas emission allowance trading system, and a combination of these approaches; carbon reporting), consumers (abandonment of internal combustion engines, limitation of emissions in the air transport sector) emission control in the maritime transport sector), investments (attraction of investment funds in "green" technologies). Direct and indirect impacts on the environment due to active hostilities are characterized. Recommendations for «green» reconstruction of the affected regions of Ukraine due to the full-scale invasion of russia are given.

АДАПТАЦІЯ УКРАЇНСЬКОГО ЗАКОНОДАВСТВА У СФЕРІ ЗАПОБІГАННЯ ЗМІНАМ КЛІМАТУ ДО ACQUIS COMMUNAUTAIRE ЄВРОПЕЙСЬКОГО СОЮЗУ

The article examines the current state of the Association Agreement implementation in terms of national legislation on climate change and the protection of the ozone layer compliance with the requirements of the EU legal acts listed in Annex XXX to Chapter 6 "Environment" of that Agreement. Under the Association Agreement, such harmonization entails the need to bring national legislation into line with Directive № 2003/87/EC establishing a Community greenhouse gas emissions trading scheme by September 1, 2019 and amending Directive № 96/61/EC ~ 18 ~ ВІСНИК Київського національного університету імені Тараса Шевченка ISSN 1728-3817 as amended by Directive № 2004/101/EC; Regulation (EC) № 842/2006 on certain fluorinated greenhouse gases; Regulation (EU) № 2037/2000 on substances that deplete the ozone layer, as amended and the amendments made by the Regulation (EU) №№ 2038/2000, (EU) 2039/2000, (EU) 1804/2003, (EU) 2077/2004, (EU) 29/2006, (EU) 1366/2006, (EU) 1784/2006, (EC) 1791/2006 and (EC) 2007/899, and Decisions №№ 2003/160 /EC, 2004/232/EC and 2007/54 /EC. The analysis of the national legislation shows that Ukraine as a whole fulfilled its obligations to adapt national legislation to the EU legislation in terms of setting up a monitoring system, reporting and verification of greenhouse gas emissions. The Law of Ukraine "On the Basics of Monitoring, Reporting and Verification of Greenhouse Gas Emissions" was adopted on 12 December 2019. The law comes into force on 1 January 2021. At the same time, it is necessary to adopt by-laws to ensure the effectiveness of the provisions of the aforementioned Law, since as of 1 April 2020 no legislative act has been adopted in its development. Ukraine has also fully fulfilled its obligations to implement the provisions of Regulation (EC) № 2037/2000 on substances that deplete the ozone layer and the provisions of Regulation (EC) № 842/2006 of the European Parliament and of the Council on certain fluorinated greenhouse gases. The Law of Ukraine "On Regulation of Economic Activity with Ozone-Depleting Substances and Fluorinated Greenhouse Gases" was adopted on 12 December 1 2019. The law comes into force on 27 June 2020. The article proves that the legal acts, necessary to introduce internal greenhouse gas emission allowance trading scheme and other market and non-market greenhouse gas emission reduction instruments of these gases in accordance with Ukraine's obligations under the Association Agreement have not yet been adopted. Also there is the necessity to make amendments to the Regulation on the Interagency Commission on Implementation of the United Nations Framework Convention on Climate Change, approved by the Cabinet of Ministers of Ukraine Decree № 583 of April 14, 1999, to extend its tasks in accordance with the provisions of the Paris Agreement. Keywords: the Association Agreement; climate and ozone protection; fluorinated greenhouse gases; monitoring of greenhouse gas emissions; ozone-depleting substances; reporting of greenhouse gas emissions; verification of greenhouse gas emissions.

Comment on the Case C-366/10, Air Transport Association of America and Others v. Secretary of State for Energy and Climate Change

On December 11, 2011, the Court of Justice of the European Union ruled on Case C-366/10, Air Transport Association of America, American Airlines Inc., Continental Airlines Inc., United Airlines Inc. v. Secretary of State for Energy and Climate Change. The Court was asked to give preliminary ruling on the validity of Directive 2008/101 on the aviation activities in the scheme for greenhouse gas emission allowance trading within the Community. The decision is important in that it highlights the nature and scope of the European Union’s obligation to observe the rules of international law. Moreover, the judgment is a fundamental contribution to clarify whether and to what extent individuals are entitled to rely in court on principles of customary international law in order to challenge an act of the Union.

Blue Jeans, Chewing Gum and Climate Change Litigation: American Exports to Europe

This paper analyses how American-style climate change litigation might be adopted by the European Union ('EU') and projects potential methods by which the EU might employ the US model, if it indeed chooses to take the climate change battle to the courts. By synthesising existing US case law in the environment and climate change fields, the paper roughly defines the 'American model' of climate change litigation as parens patriae actions, oftentimes based in the tort of public nuisance, brought by states and other sovereign entities against polluter-defendants. The structural differences between the common law United States and the predominantly civil law European Union are substantial, and the EU has traditionally been averse to enter too far into the American mass torts arena. Accordingly, Europeans have not yet undertaken these types of lawsuits.This paper identifies and examines several realistic options for Europe's possible espousal of the American climate change litigation model through EU law and national law of individual Member States. Although the comparison is admittedly imperfect, I conclude that by drawing on the blueprint of its American counterparts, the EU could viably use Directive 2004/35/EC (environmental liability with regard to the prevention and remedying of environmental damage and the 'polluter pays' principle) and Directive 2003/87/EC (establishing a scheme for greenhouse gas emission allowance trading) in a parens patriae-like manner to hold defendants liable for damages caused by climate change. Additionally with case studies focusing on France, Germany and the United Kingdom, national law alternatives exist for individual Member States, as well as regional and local governments, to take action on behalf of their citizens for injuries resulting from climate change, just like sovereign bodies in the United States have done.

Greenhouse gas emission allowance trading scheme in the Polish law

Greenhouse gas emission allowance trading scheme in the Polish law

Involvement of Aviation Activities in the Scheme for Greenhouse Gas Emission Allowance Trading

The European Union includes the Environment as one of the four main target areas requiring greater effort. One pillar of EU environmental policy is the Greenhouse Gas Emission Trading System. In the EU directive 2008/101 it was held that aviation will be added to the system of greenhouse gases trading. Despite the relatively low volume of aviation emissions, the danger of aviation emissions emitted in the higher atmosphere tips the scales. Aviation will be part of the ETS from year 2012, but the most important decisions and customizations of the ETS system for aviation are to be done now. The involvement of aviation in the ETS presents many difficulties and problems, which need to be solved to allow the ETS to bring benefits to both aviation and the whole of society as well.

A Governance Perspective on the Choice between “Cap and Trade” and “Credit and Trade” for an Emissions Trading Regime

This article discusses from a legal point of view an alternative approach towards allocating tradable greenhouse gas emission rights. The present EU greenhouse gas emission allowance trading regime starts from a decentralised allocation of emission rights, based on rather vague criteria stipulated in an annex to the greenhouse gas emissions trading Directive, and with much discretion left to the Member States. This approach, where most of the allowances are given free of charge to industries, entails that different amount of allowances can be given to equal installations vested in different Member States, is vulnerable to lobbying activities, does not stimulate at full force new climate-friendly options, and moreover appears to be an administratively complex instrument. Because of the fact that the present method contains such disadvantages, there is a serious need for examining alternative options. Besides auctioning, which is thus far politically seen not attractive because of the negative effects on the global competitive position of industries, it is also interesting to examine the so-called “credit-and-trade” regime as being a possible future approach towards allocating greenhouse gas emission rights in Europe and probably on a wider scale too. This approach fits better into the polluter-pays principle, deals easily with new entrants and closures, and is a concept from which harmonisation within the EU could be realised. It also contains some regulatory complexities, as all allocation mechanisms do. However, the concept has strikingly been subject to little debate in the literature thus far, and the merits of it compared to the other methods of allocation should be closely examined too.

Breathing Life into the Carbon Market: Legal Frameworks of Emissions Trading in Europe

Directive 2003/87/EC establishes a scheme for “greenhouse gas emission allowance trading within the Community in order to promote reductions of greenhouse gas emissions in a cost-effective and economically efficient manner.” Given its adoption as a directive, the achievement of this mandate largely depends on the domestic implementation by Member States, and in particular on the creation of a functional carbon market enabling the price mechanism to signal investment decisions throughout Europe. Unlike many other commodities, however, emission allowances are a legal construct, and the legal frameworks reifying them are of crucial importance. Domestic regulation of taxation, financial services, insolvency, and accounting issues, to name but a few, all hold the potential to compromise the development of a liquid market. Based on an extensive survey of the implementing legislation adopted in Finland, Germany, Sweden, and the United Kingdom, this article identifies some of the main challenges faced by the Member States in the evolving carbon market, highlighting aspects whose treatment differs and may lead to conflicts or inconsistencies.

The Eu Greenhouse Gas Emission Allowance Trading Directive

The Eu Greenhouse Gas Emission Allowance Trading Directive

A two-level computable equilibrium model to assess the strategic allocation of emission allowances within the European union

This paper deals with the modeling of the strategic allocation of greenhouse gases emission allowances in the EU-wide trading market that results from Kyoto agreement implementation. An M-matrix game is formulated where the players are countries or groups of countries that may have a strategic influence through their allocation of emission allowances and the payoffs are the welfare gains of these countries, evaluated from a multi-country computable general equilibrium model. To solve the matrix game one uses the concept of correlated equilibrium which makes sense in the context of EU negotiations. One studies several formulations of that two-level game structure and, in all these instances, we obtain a unique equilibrium solution that can be given an interesting interpretation for establishing a scheme for greenhouse gas emission allowance trading within the community.

Institution and decision making process of the EU directire on establishing a scheme for greenhouse gas emission allowance trading within the Commurity to comply with the Kyoto Protocol

Institution and decision making process of the EU directire on establishing a scheme for greenhouse gas emission allowance trading within the Commurity to comply with the Kyoto Protocol