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indicate that all the targets from the 3 x 20 by 2020package are only complementary. Historicallyspeaking, the climatic objective - reduction ingreenhouse gas emissions - comes first. The community system of greenhouse gas emissionallowance trading and the Kyoto Protocol mechanismshas created the framework to evaluate an EmissionReduction Unit (ERU) and Certified EmissionReduction (CER). All these units are equivalent to1MgCO2eq. In Poland, where fossil fuels dominate inthe process of energy production, each measureintended to improve energy efficiency means directly areduction in greenhouse gas emissions. We can argue that the reduction in the end user energyconsumption is the most efficient measure to reducegreenhouse gas emissions in Poland. The volume ofCO2 emissions of the power engineering system inPoland ranges from 0,85 to 1 Mg CO2/MWh producedand supplied to the network (depending upon themanner of calculation and the source of data). tonnes of oil equivalent (10 toe) on average per year,may be submitted for the procurement tender, wherebythe period of energy saving must be at least 15 years.If the period of energy saving is shorter than 15 years,the awarded value of the white certificate is calculatedaccording to the formula given in the draft of the EEL:Oz = Ozj x Ep(Oz - replacement fee [PLN]. Ozj - unit replacementfee not lower than 900 PLN and not higher than 2700PLN per one tonne of oil equivalent. Ep - amount ofprimary energy, expressed in tonnes of oil equivalent.)Companies obliged to provide white certificates shouldobtain a corresponding number and submit them tothe President of ERO to be redeemed, otherwise acompensation fee will need to be paid. The experiencein the functioning of the White Certificates System inother European States indicates that thecompensation fee creates the value of the certificateprice and therefore should be high enough to makeinvesting in energy saving profitable. The companywhich receives a certificate of energy efficiency shouldimplement the undertaking and perform an audit ofenergy efficiency to confirm energy saving obtained asa result of that undertaking being implemented. White Certificates will be converted into a transferablecommodity carrying a property right, which can betraded at the Stock Exchange or in OTC transactionsregistered by the Exchange. One White Certificate mayamount to a large volume of energy saved, however oneproperty right should always correspond to only onetonne of oil equivalent (1 toe = 41,9 GJ) saved as aresult of implementation of the undertaking serving toimprove energy efficiency. The following positive results are expected after theintroduction of the System of White Certificates inPoland:. improvement in energy efficiency leading to therationalisation of energy prices;. an increase in the competitiveness and innovativenessof the whole economy; . measurable energy saving; . providing an incentive for the energy generation,transmission and distribution sector to undertakeprojects aiming to increase the efficiency of energygeneration and to reduce the energy losses intransmission and distribution. The functioning of the System of White Certificates isto be supported by 3 per cent of the value of sales inthe fuel and energy sector, which will constitute anamount of approximately PLN 2,55 billion. AND WHERE ARE THE REMAINING TWO 20S? Many statements by the European CommissionREGIONAL 044PERSPECTIVESBelow: WojciechPiskorski (left) and KatarzynaWojciechowska (right)

the most unecological means of transport. The amountof energy in the primary fuel necessary to get it goingis higher than with a diesel-fuelled car. However, thesame car fuelled, for example, directly by a wind powergenerator would be much more energy efficient. Emissions reduction which can be proven andcalculated can be traded in a similar manner to all-coloured energy certificates. The volume of thisreduction depends on many factors, including the typeof the energy carrier, the manner of limitation, theplace where the project is implemented and manyother. One interesting Polish initiative is the System ofGreen Investment, through which, based on concretemethods, the level of emissions reduction can becalculated for the purpose of efficient energy use, forexample in public utility buildings. There is one obstacle, however. To reduce emissions inan installation covered by the European TradingSystem, an Emissions Reduction Unit may beobtained only when the country in question has anappropriate reserve of allowances or when theallowances can be recovered solidarly from all theinstallations linked to the network. The reason behindit is to avoid the so-called "double calculation". Theprinciple is honest and just, but who would undertakethe political decision of exposing themselves to theenergy lobby? This very situation creates in Polandsome exceptional conditions for synergy to be takenadvantage of during the implementation of the 3x20by 2020 package. nABOUT THE AUTHORSKatarzyna Wojciechowska has been a commoditymarket analyst at Consus Since 2007. She focuseson the energy markets and issues related to theoptimisation of electricity purchase and energyefficiency. She is a graduate of the NicolausCopernicus University (major in FinanceManagement) and of the postgraduate studies at theWSB Schools of Banking in Poland (major inNegotiation and Mediation).Wojciech Piskorski has many years of professionalexperience in the field of international emissionsallowance trading mechanisms and risk management,with particular emphasis on verification andvalidation. He specialises in the analysis ofemissions reduction potential of related projects andprogrammes as well as their carbon footprint. Since2003 Wojciech Piskorski has been responsible forDet Norske Veritas' services in Poland in relation toclimate change. He is also Co-Founder of Carbon RiskManagement Partners, where he has preparedmethodology for calculating emission reduction forGreen Investment Scheme in Poland, and CEO ofCarbon Engineering Sp. z o.o. Mr Piskorski conductedthe first in Poland course for auditors in 2004.REGIONAL PERSPECTIVES045The end user consumes energy supplied with the helpof the network that has defined losses and operatesplants with energy efficiency lower than 100 per cent.Therefore, to use, for example, 1MWh of energy inorder to operate a machine, the power generating plantmust supply to the network a higher amount of energyto also cover all energy losses. As the volume ofemissions falling to 1 MWh of energy used correspondsto the amount of fuel burnt to produce it, we deal withthe so-called index of outlay of unrenewable primaryenergy, which expresses all losses related to thegeneration and transmission of energy. This indexobviously depends on the condition of the network, thetype of equipment used etc and so on. This index isalways larger than one and may even amount to three.Therefore, in Poland, a saving of 1 MWh of energy atthe receiver's end is more effective from the emissionsreduction point of view than a reduction in the value ofproduction by the above mentioned 1 MWh in thepower generation plant. Due to this state of affairs, anelectric car fuelled by the energy from the network is