Vattenfall sale a lose-lose-lose? / 'EU ETS needs minimum price'
sandbag.org
A 鈥渓ose-lose-lose鈥� situation
The Vattenfall lignite sale to EPH is a lose for the climate, a lose for the Swedish government and a lose for German workers, according to analysis by UK non-profit group sandbag. EPH is a faceless and aggressive investor unlikely to implement the just coal phase-out that Vattenfall could have managed, writes Dave Jones. 鈥淓PH have no public shareholders to be responsible to, no electricity customers to be responsible to, and no ownership from regional or national government to be responsible to鈥� EPH ownership leaves Lusatia's lignite industry in a precarious position, with the possibility of collapse at any time, with devastating consequences to the local community."
Read the analysis in English .
Read yesterday鈥檚 威力彩玩法 article on the sale of Vattenfall鈥檚 lignite assets here.
听
S眉ddeutsche Zeitung
鈥淒igging for coal鈥�
Vattenfall lignite buyer EPH believes Germany will continue to rely on lignite despite its Energiewende. 鈥淚t鈥檚 the only fuel that can produce electricity reliably and doesn鈥檛 need to be imported. This is why it won鈥檛 be easy to replace it in the energy mix,鈥� EPH board member Jan Springl told S眉ddeutsche Zeitung. He added that EPH had no intention of exporting lignite to the Czech Republic.
The deal is highly sensitive because decommissioning and recultivation costs are highly uncertain, write Michael Bauchm眉ller and Varinia Bernau in the same article. With Vattenfall to transfer 1.7 billion euros to the new owner, 鈥渋ts farewell from Lusatia comes at a high price.鈥� How much money EPH can make with the lignite assets mainly depends on how long it will be allowed to dig for coal, and when low power prices will start to recover, the article says.
Read the article in German .
听
Frankfurter Allgemeine Zeitung
鈥淟ignite in trouble鈥�
Czech utility EPH must be fully aware that lignite has a maximum life expectancy of 20 years if the government takes its climate targets seriously, writes Andreas Mihm in a commentary for Frankfurter Allgemeine Zeitung. The sale does not solve the structural and employment problems of the affected region 鈥� they remain unchanged under a new owner, according to Mihm.
听
Frankfurter Rundschau
鈥淓nergy policy as a gamble鈥�
The Vattenfall deal shows the government must urgently work on a consensus to phase out coal, argues Thorsten Knuf in Frankfurter Rundschau. The affected region and employees have become a pawn in the EPH gamble that it can earn money with coal-fired power generation because of the nuclear phase-out, according to Knuf. 听
听
Handelsblatt
鈥淎 sale with consequences鈥�
EPH must be aware it has taken on a massive responsibility, because it will have to spend billions managing the lignite exit in coming decades, writes J眉rgen Flauger in a commentary for Handelsblatt. If EPH has bet on the wrong horse, taxpayers might end up footing the bill. 鈥淭he sale of east German lignite is no ordinary deal. EPH must not forget that.鈥�
听
鈥淓鲍 ETS will need tweaking after climate treaty鈥�
Researchers from Mercator Research Institute on Global Commons and Climate Change (MCC) in Berlin have recommended a minimum price for the European Emissions Trading System (EU ETS) to give investors more certainty. In a new study they have shown that the price of emissions in the EU ETS is governed by political announcements rather than supply and demand. That leaves traders to guess what might happen next because of a lack of clear policy, Ottmar Edenhofer from the MCC explained.
Read the the study in English (behind paywall) and a press release .
听
S眉ddeutsche Zeitung
鈥淩WE: the green conscience鈥�
RWE鈥檚 management will face a tough crowd at tomorrow鈥檚 annual shareholders鈥� meeting, reports S眉ddeutsche Zeitung. The surge of renewables that led to lower power prices at the electricity exchange has brought about a very 鈥渢hreatening鈥� situation for the utility. RWE spun off its fossil power operations from renewables, grid and retail operations and earlier this year decided to suspend dividend payments for the first time in 50 years 鈥� an extreme measure that puts shareholders who counted on the extra capital in difficult situations.
Read the article in German .
Find the 威力彩玩法 factsheet on听RWE鈥檚 plans for new renewable subsidiary here.
听
鈥淓nvironment ministry supports China in emissions trade鈥�
The German Federal Environment Agency (BMUB) is investing 5.5 million euros in support for China's national emissions trading system, according to a press release. 鈥淓missions trading offers big opportunities to reach climate goals at a low cost,鈥� said environment minister Barbara Hendricks during a trip to Shanghai. The funding program has been active since 2013 and focuses on legal counselling and staff training. China is currently running a pilot scheme in seven regions and plans to introduce the world鈥檚 largest emissions trading system - with a volume of about 4 billion tonnes of CO鈧� - by 2017.
Find the press release in German .
听
S眉ddeutsche Zeitung
鈥淛ointly for electric cars鈥�
Siemens and the French automotive supplier Valeo are planning a joint venture on drive systems for electric cars, reports S眉ddeutsche Zeitung. The enterprise will offer high voltage components and systems for all types of e-cars, including hybrids, plug-ins and pure electric vehicles.
