My installation has undergone significant production changes – how do I correctly calculate the allocation of free CO2 emission allowances and avoid overpaying?
Client
Energy company in the industrial sector
The situation
The EU ETS emissions trading system is one of the most complex EU regulatory instruments – and calculating free CO2 emission allowance allocations in the case of significant changes to an installation’s production capacity is an issue that most market participants navigate by trial and error, often overpaying. An energy company – a joint venture between a global steel giant and a Polish energy group — operated an energy installation in Southern Poland. Significant changes to the installation’s production capacity raised the question of the correct calculation method for its free CO2 emission allowances – an issue with a direct, measurable impact on operating costs and company profitability.
Our role
We developed a sophisticated solution based on applicable EU and Polish law, taking account of European Commission guidelines on allowance calculation for production capacity changes. The solution allows the client to optimise operating costs within the EU ETS system while remaining in full compliance with the regulations. The matter required combining deep knowledge of EU climate law with an unconventional analytical approach – the legal interpretation had to be simultaneously legally robust and financially beneficial for the client.
The result
The client obtained a solution enabling a lawful reduction of operating costs within the ETS system. This is an example of “rocket science” environmental advisory: narrow specialisation in EU climate law translating into direct, measurable financial value for the client.
Does your installation participate in EU ETS and do you have questions about allowance allocation or cost optimisation? This is our specialism.
Environmental protection
Environmental regulations affect not only compliance, but what matters most in business: the pace of investment, operating costs, and security. In this area, knowing what the law says is not enough. You also need to know how to translate it into concrete actions and sound decisions.
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