This study aims to test and develop methods for environmental and social screening of companies in order to support informed investment decisions. Among others the report deals with the following questions: * What are the characteristics of current ethical screening methods? * What steps and criteria should be included in an ethical screening? * What are advantages/disadvantages of intuitive methods versus analytic methods? * How should gathered information be evaluated? * Does social screening differ from environmental screening? The available literature on ethical screening and decision making has been evaluated. Also, the current screening practices in Sweden and elsewhere were mapped and analysed. Subsequently a flowchart for ethical screening was developed and the method was tested in three case studies. The overall conclusion of the study is that it is both common and motivated that different objectives are used for ethical screening. These different objectives lead to different preferences regarding methods for screening. But to conduct a more elaborate screening, competence concerning companies' ethical practices and the capital market is essential. We acknowledge that intuitive and informal steps always will be present in a screening process. But, to ensure comparability, we believe it is crucial that the overall approach is analytic, formalised, and transparent
IVL och IMT har tillsammans med fyra grafiska företag tagit fram rekommendationer om branschgemensamma miljönyckeltal. Syftet är att ge grafiska medieföretag ett kraftfullt och trovärdigt verktyg för att följa upp det interna miljöarbetet och externt kunna påvisa och redovisa miljöförbättringar. Framtagandet av betydande miljöaspekter och branschgemensamma nyckeltal som behandlar dessa aspekter har gjorts genom: 1. Litteraturstudie av tidigare utförda miljöbelastningsutredningar inom branschen. 2. Detaljerad inventering av respektive projektföretags miljöbelastning och nytta. 3. Beräkning och analys av miljönyckeltal för projektföretagen utifrån all inventeringsdata. 4. Regelbundna diskussioner i projektgruppen med delresultat, nationella miljömål, möjligheter för små och medelstora företag, etc som grund. I rapporten presenteras de rekommenderade miljönyckeltalen som en kvot med ett miljöbelastningsmått som täljare och ett mått på nytta som nämnare. 13 miljömått och två nyttomått har valts ut. Som bilaga finns en manual, som möjliggör beräkning av nyckeltalen för det egna företaget.
IVL, IVF, IMT och SIK har tagit fram förslag till indikatorer och miljönyckeltal för att beskriva företags och branschers miljöprestanda på ett relevant och objektivt sätt. Metoden har tillämpats på branscherna verkstadsindustri, livsmedelsindustrin och grafisk mediebransch. Denna rapport har som syfte att uppnå följande delmål i projektet: Genomgång av egna och andra aktörers tidigare genomförda studier på området. Framtagning av en preliminär uppsättning näringslivsgemensamma indikatorer och nyckeltal. Inventering av miljöstatistik och datasättning av nyckeltal för de tre branscherna. Jämförelse mellan föreslagna näringslivsgemensamma miljönyckeltal baserade på statistik och motsvarande nyckeltal baserade på tidigare genomförda branschprojekt och fallstudier. De föreslagna nyckeltalen är uppbyggda som en kvot där täljaren består av ett miljörelaterat mått och nämnaren av ett nyttorelaterat mått. Ca 40 miljöpåverkansmått har tagits fram som förslag till de näringslivsgemensamma nyckeltalen. Som nyttomål har omsättning, förädlingsvärde och antal arbetade timmar valts ut.
In this study we have analysed different options to apply emissions trading for greenhouse gas emissions to the transport sector. The main focus has been on the EU transport sector and the possibility to include it in the current EU ETS in the trading period beginning in 2013. The purpose was to study how different alternatives will affect different actors. Focus has been on three sub sectors; road transport, aviation and shipping. The railway sector has only been treated on a general level. The study includes the following three parts: 1. An economic analysis of the consequences of greenhouse gas emissions trading for the transport sector including an analysis of how the total cost for reaching an emission target will be affected by an integrated emissions trading system for the transport sector and the industry (currently included sectors) compared to separate systems for the sectors, 2. An analysis of design possibilities for the different sub-sectors. Discussion of positive and negative aspects with different choices of design parameters, such as trading entity, covered greenhouse gases , allocation of emission allowances and monitoring systems, 3. Examination of the acceptance among different actors for different options of using greenhouse gas emissions trading in the transport sector .....
On 1 January 2005 the European Union Emission Trading Scheme was launched. The launch was preceded by an allocation process in each of the Member States. The main objective of this study was to analyse the allocation in relation to CO2 efficiency for the mineral oil refining sector. A CO2 intensity index for mineral oil refineries was defined and calculated for the refineries within the EU15 and Norway. The IVL CO2 intensity index is based both on the Solomon Energy Intensity Index (EII), an assumed fuel mix and process-specific emissions. Due to uncertainties in input data, the determined values for the individual refineries are fairly uncertain, but the regional values can be used to identify trends. It was concluded that there are substantial differences in the CO2 intensity between refineries within different regions/countries in the EU and these differences have not been considered in the allocation process. However, there seems to be a correlation between allocation and CO2 efficiency for refineries in different regions. With some exceptions countries where the mineral oil refining industry has a low CO2 intensity index have allocated relatively more than countries with industries of high CO2 intensities. Only a few countries have mentioned energy efficiency or reduction potential due to CO2 intensity of fuels used. Only one country (Denmark) has explicitly given a benchmark that will be used for allocation to new mineral oil refineries.
The issue of managing costs in an emissions-trading program a controversial one, with short-run and long-run dimensions. Short-run disruptions in fuel supply due to natural or geo-political events can cause price fluctuations in fuel markets that have negative consequences on the economy, so in the short run policy makers might want to ameliorate these price fluctuations. Another concern has to do with cost management in the long run, where the issue has often played a role as a political proxy for the level of economic commitment to climate policy. Of course, the ultimate cost management tool is an emissions tax because the cost of the tax is predetermined and not subject to vacillations of an allowance market. We develop another idea, which is symmetric cost management within an emissions-trading program, in some detail. This approach would place a 'collar' on prices by combining a high-side price safety valve with a price floor. By providing for a ceiling and a floor on allowance prices, the mechanism we propose preserves incentives for investors to invest in clean technologies, which helps address the long-run issue of the cost of emissions reductions, and also guards against short-run variability. Such a mechanism could help the world to achieve the near term incentives to trim emissions that come with putting a price on CO2 with the longer run gains that come from greater investment in clean technologies such as renewables that might spark cost-reductions and technological breakthroughs that will be necessary to fight global warming effectively
This study was carried out as a Master of Science Thesis work within the Master of Science Programme for Aquatic and Environmental Engineering at Uppsala University, School of Engineering. The study was initiated by the Swedish Environmental Research Institute (IVL) and was performed by Markus Åhman and Stefan Uppenberg during the period September 1997 to January 1998. Lars Zetterberg has supervised the work at IVL, and Ph.D. Lars-Christer Lundin and Ph.D. Allan Rodhe at the Department of Earth Sciences, Uppsala University, have been responsible for the examination.
The climate impact from the use of peat for energy production in Sweden has been evaluated in terms of contribution to atmospheric radiative forcing. This was done by attempting to answer the question 'What will be the climate impact if one would use 1 m2 of mire for peat extraction during 20 years?'. Two different methods of after-treatment were studied: afforestation and restoration of wetland. The climate impact from a peatland - wetland energy scenario and a peatland - forestry energy scenario was compared to the climate impact from coal, natural gas and forest residues. Sensitivity analyses were performed to evaluate which parameters that are important to take into consideration in order to minimize the climate impact from peat utilisation
Prior to the launch of the EU Emissions Trading System (EU ETS) in 2005, the electricity sector was widely proclaimed to have more low-cost emission abatement opportunities than other sectors. If this were true, effects of the EU ETS on carbon dioxide (CO2) emissions would likely be visible in the electricity sector. Our study looks at the effect of the price of emission allowances (EUA) on CO2 emissions from Swedish electricity generation, using an econometric time series analysis for the period 2004-2008. We control for effects of other input prices and hydropower reservoir levels. Our results do not indicate any link between the price of EUA and the CO2 emissions of Swedish electricity production. A number of reasons may explain this result and we conclude that other determinants of fossil fuel use in Swedish electricity generation probably diminished the effects of the EU ETS.
The objective of the study was to investigate whether the national allocation plans of the EU Member States are fair and reasonable, for the energy sectors. The CO2 intensities and allocations were investigated for each Member State. The study concludes that there is little, or no, correlation between CO2 intensity in the energy sector, and the generosity of the allocation to the sector, in the respective Member States. This indicates that the National Allocation Plans are not fair and reasonable, and that they do not meet all of the Annex III criteria.
A discussion paper about the recent changes to the EU Emissions Trading System introduce structural changes regarding the initial distribution of emissions allowances, which are worth tens of billions of euros.
The initial years of the European Union's Emissions Trading System (EU ETS) have provided a large-scale testing ground for trading of a new environmental commodity, carbon dioxide. This paper provides an overview of the origins and characteristics of the EU ETS. It then goes on to analyse the most contentious issues that have been discussed in the economics literature and in the public debate surrounding the trading system. The lessons learned are diverse and not all experiences are positive. Nevertheless, invaluable information has been gained from the EU ETS and policy makers in Europe and elsewhere would be wise to make use of it, be they supporters of emissions trading or sceptics to such policies. The paper concludes with a look toward the future, highlighting some upcoming revisions of the EU ETS and at what issues remain unresolved.
The overarching theme of the thesis is European energy and climate policy, with a particular focus on the role of emissions trading. The thesis consists of eight papers.
In its guidance on National Allocation Plans (NAPs), the European Commission has discouraged Member States from adopting allocation methodologies that would provide incentives to firms affecting their compliance behavior. The purpose is to promote economic efficiency and to prevent strategic behavior that deviates from individual and collective cost-minimization. For example, some methodologies would reward one type of compliance investment over another. To discourage such actions, the EU Emission Trading System guidelines prohibit ex post redistribution of emission allowances within an allocation period based on behavior in that period. Similarly, the Commission has indicated that decisions about the initial distribution of allowances in the second phase (2008-2012) must depend on measures prior to 2005 so as not to give companies an incentive to adjust their behavior to receive a larger allowance allocation. However, two other aspects of the NAPs-the treatment of closures and new entrants-may also affect firm behavior. An undercurrent in these guidelines is the question of whether Member States should allow incumbent emitters to hold infinitely lived, once-and-for-all property rights to a share of the emission allowances in the future. This paper develops an approach for balancing efficiency considerations with perceived issues of fairness. We propose a ten-year rule to guide policy regarding closure of existing sources and the status of new sources and to guide the initial distribution of emission allowances in general. A ten-year rule would address issues of fairness and capture an important part of the potential gains that could be achieved through an efficient initial distribution of allowances.
This white paper sets the scene for research on the interaction between the electricity market and the European Emissions Trading Scheme (EU ETS). We look at conceptual aspects of price formation, and compare empirical evidence with theoretical expectations through a review of the literature on the functioning of the Nordic electricity market and the EU ETS. From this review a set of prioritised research questions emerges, and we then go on to map available methods to these research questions. This forms a foundation for research that explores different aspects of uncertainty, options for organising the EU ETS and analysis of how the EU ETS may affect price level and volatility in the allowance and electricity markets, as well as investment. Ultimately, the research project that this white paper is a product from, aims to improve the understanding of how the EU ETS, through the electricity market, will affect consumers and the environment. This paper builds a foundation for assessing which specific research questions are most important and where our efforts would add most value. In consideration of the interaction between emissions trading and the electricity market, several related but separate issues and research questions are relevant to analyse. To keep the questions as clearly defined and distinct as possible, we summarize the focus of further research in four areas that frame the discussion on the interaction between the EU ETS and the electricity market, and in broad terms the incentives for investment behaviour that are created. + Understanding and managing uncertainty. + Price interactions between the EU ETS and the Nordic power market. + Incentives for investment created by various approaches to allowance allocation. + How other climate related policies such as renewable support programs interact with the EU ETS and electricity markets.
The overall objective of the study is to shed light on the subject of active ownership and the consequences of an increased ethical focus in the work of institutional investors. The following questions are treated within the study; - What do ethical aspects of ownership mean? - To what extent, and in what way, are ethical aspects taken into account by institutional investors? - What are the consequences of active ownership with ethical aspects taken into account? - What effects would an increased ethical focus in the work with active ownership in Sweden have? - What are the hindrances and possibilities for an increased ethical focus in active ownership in Sweden?
The study finds that current allocation rules does have an impact on investment decisions, and can significantly distort competition if they remain unchanged. As a first best solution, the authors recommend that the Nordic countries do not allocate free allowances to new entrants in the energy sector. Instead operators would have to buy allowances, either from the government or on the open market. This should be combined with adjusted rules on allocation to existing installations in order to avoid putting new installations at a disadvantage compared to existing installations. Finally, the authors recommend that the Nordic countries investigate what options are available to provide greater certainty in the allocation, for instance through allocating allowances for longer periods into the future
In the EU Emission Trading Scheme (EU ETS), the treatment of new entrants has proven to be one of the most contentious issues. This paper analyses the impact of allocation to new entrants in the energy sector, and identifies options for improved regulation in this field. The point of departure for the discussion is a comparative analysis of the allocation in phase I and phase II of the EU ETS to two hypothetical energy installations should they be located in different EU Member States. The study focuses on the Nordic countries due to their integrated energy market. The quantitative analysis was complemented with interviews with policy makers and industry representatives. The results suggest that current allocation rules can significantly distort competition. The annual value of the allocation is comparable to the fixed investment costs for a new installation and is not insignificant compared to expected revenues from sales of electricity from the installation. The study finds that the preferred option would be that Nordic countries should not allocate free allowances to new entrants in the energy sector. This should be combined with adjusted rules on allocation to existing installations and closures in order to avoid putting new installations at a disadvantage. A second less preferred choice would involve harmonised benchmarks across the Nordic countries
Much has changed since the last edition of Nordic Energy Technology Perspectives (NETP) in 2013. Despite lower fossil fuel prices, the Nordic region has continued to reduce emissions. This decline is the result of efficiency improvements and strong renewables growth – evidence that energy policies suggested in the last report are producing results. Similar developments are evident across Europe, where the Energy Union has established a new framework for European energy policy. Globally, too, efforts to cut CO2 have gained momentum. At the time of writing, 189 countries had pledged to reduce emissions under the framework of the Paris Agreement on climate change, which has already been signed by more than 170 country representatives. Policy makers around the world are now looking to fulfil these pledges. The experiences of the Nordic region in energy system transition can offer a valuable contribution as the world takes on this challenge. The highly interconnected regional electricity market is the cornerstone of the Nordic energy system, and it can serve as a key enabler for further emission reductions towards 2050. This report provides a case study on how to go beyond the 2°C target, towards a carbonneutral energy system. For Nordic policy makers, the scenarios in this report identify both challenges and opportunities on the road towards the ambitious national climate targets of the region. Their success will depend on ensuring public acceptance of new power generation and grid investments, the continued competitiveness of energy-intensive industries amidst higher electricity prices, and the sustainable supply of biofuels for long-distance transport. In addition, there are significant opportunities to benefit from supplying and balancing the European electricity grid, and to harness urban leadership in the electrification of transport.
An important feature in the design of an emissions trading program is how emissions allowances are initially distributed into the market. In a competitive market the choice between an auction and free allocation should, according to economic theory, not have any influence on firms' productionchoices nor on consumer prices. However, the debate around current emissions trading systems shows that parts of industry, the general public and policy making community expect the method of allocation to affect product prices. This paper reports on the use of experimental methods to investigate behavior with respect to how prices will be determined under a cap?and?trade program with different allocation methods. Participants initially display a variety of pricing strategies. However, given a simple economic setting in which earnings depend on behavior, we find that subjects learn to consider the value of allowances and overall behavior moves toward that predicted by economic theory.
Projektets syfte var att utveckla indikatorer för kommunikation, uppföljning och bedömning av företags och branschers miljöprestanda. I projektet togs även handböcker fram för att hjälpa företag att arbeta med miljöindikatorer. En viktig slutsats från projektet är att det är möjligt att finna gemensamma miljöindikatorer för flera, till sin karaktär väldigt olika, branscher. Det tycks lättare att hitta gemensamma synsätt för operativa indikatorer än för ledningsrelaterade indikatorer. Huvudregeln för systemgränser bör vara grind till grind, men undantag bör göras för energi och transporter. Indikatorer bör vara en del i kopplingen mellan det nationella miljömålsarbetet och näringslivets miljöarbete.
The EU ETS is a Community-wide scheme established by Directive 2003/87/EC for trading allowances to cover the emissions of greenhouse gases from permitted installations. The first phase of the EU ETS runs from 1 January 2005 to 31 December 2007. Each Member State must develop a National Allocation Plan for the first phase stating: · the total quantity of allowances that the Member State intends to issue during that phase; and how it proposes to distribute those allowances among the installations which are subject to the scheme In this paper twelve of the national allocation plans have been analysed and compared to the criteria stated in the EU Directive. The twelve allocation plans analysed are: the Austrian, the Danish, the Finnish, the German, the Irish, the Lithuanian, the Luxembourg, the Dutch, the Swedish, the British and the draft Flemish (Belgium) and Portuguese. Generally most countries have allocated generously to the trading sector. The allocation has often been based on future needs. For most sectors the allocation is higher than current emissions. Many countries will have to make large reductions in the non-trading sector and/or buy credits through JI- and CDM- projects in order to fulfil their commitment according to the EU burden sharing agreement of the Kyoto Protocol. In many of the allocation plans the emission reducing measures in the non-trading sector is poorly described and the credibility of the measures are hard to determine. Two sectors have been analysed in more detail, the energy and the mineral oil refining sectors. Figures presenting allocation vs. current emissions for those sectors are given for those countries where data was available in the allocation plan. The energy sector has been considered to have the best possibilities to pass on costs for the allowances to the consumers and hence the allocation to this sector is often more restricted than the allocation to other sectors. The mineral oil refining sector is more exposed to competition from installations outside the system and hence more sensitive to extra costs. This sector is also affected by other Community legislation that will lead to higher emissions. Some allocation plans have clear infringements to the rules given in the Directive 2003/87/EC. Many countries have suggested ex post adjustment of allocation due to different circumstances, which might violate Article 11.1 to the Directive. This paper also contains a list on the status of the allocation plans as of 18 August 2004 and the comments to the allocation plans given in the Commission decisions taken upon them. As of today, 18 August 2004 not all Member States have submitted their final national allocation plan to the Commissions and not all of the plans submitted have been assessed by the Commission
This report investigates four alternative allocation schemes for emission allowances. The investigated schemes are ' Emission-based allocation ' Production-based allocation with actor-specific emission factors ' Production-based allocation with benchmarking ' Production-based allocation based on data on Best Available Technology (BAT) All the examined schemes apply free allocation based on historical activities. The allocation schemes are evaluated in relation to the criteria for a National Allocation Plan, listed in the Annex III of the EU ETS Directive, and regarding their conformity with the criteria put forward by the Swedish Parliamentary Delegation on Flexible Mechanisms, The FlexMex 2 Commission. No allocation scheme unambiguously meets all criteria. Each has its advantages and disadvantages. Emission-based allocation schemes are most straightforward, transparent and are easiest to implement. Producion-based allocation schemes meet more of the criteria, but are more costly to implement and require more data. Data on BAT will not be available to the extent necessary in order to base an allocation scheme implemented for the trading starting 2005 on BAT. No scheme will be perceived as fair by all concerned parties, no matter how sophisticated it is. The overall conclusions are summarised in table 9 in chapter 10.
Intresset för att beskriva företags och branschers miljöprestanda på ett kvantifierbart sätt har ökat kraftigt av i huvudsak två orsaker: 1) Företagens miljöanpassningsarbete och i synnerhet den ökande användningen av miljöledningssystem, som ISO 14000 och EMAS, har påskyndat behovet av metoder som kan kvantifiera ett företags miljöpåverkan. 2) I affärsverksamhet efterfrågas miljöinformation. Finanssektorn och andra intressenter efterfrågar miljöinformation som gör det möjligt att analysera företagens och branschernas miljöinformation på ett relevant, tillförlitligt och jämförbart sätt. Underleverantörer till företag med miljöledningssystem kommer i framtiden att behöva redovisa sin miljöprestanda även om de inte själva har ett miljöledningssystem. Föreliggande rapport redovisar miljöindikatorer för olika branscher i Sverige. Indikatorerna beskriver branschernas miljöbelastning med avseende på de nationella miljömålen Begränsad klimatpåverkan, Frisk luft, Bara naturlig försurning, Ingen övergödning och Giftfri miljö. Dessutom redovisas indikatorer som beskriver Arbetsmiljö (som alltså inte är ett av de femton miljömålen)