Klimainstrumenter p Nord Pool

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Klimainstrumenter på Nord Pool
Anne-Marit Rudby Head of emissions
Financial market Nord Pool
ASA E-mail
anne-marit.rudby_at_nordpool.com
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The Nord Pool group
Physical voluntary day-ahead market
Elspot Adjustment market Elbas Published
system price reference for the financial market
Financial-delivery contracts based on Elspot
price Futures, forwards, options and contracts
for differences with maturities of up to 3-4
years Direct exchange in competition with
brokers
First exchange to trade contracts for European
Allowances (EUA) EUA forward and spot
market Swedish green certificates forward and
spot market
Clearing of exchange traded and bilateral
derivative contracts Clearing for both
electricity and green markets
Specialist consulting firm providing strategic
and management consulting services within the
electricity business world wide.
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Nord Pool group
Facts and figures

• Founded 1 January 1993
• Owners All five TSOs in the Nordic countries
• Locations Oslo (HQ), Stockholm, Helsinki,
  Fredericia Berlin and Amsterdam
• Equity NP NOK 472 million, NPS NOK 96 million
• Participants 400 in total
• Physical trade 250 TWh
• Financial trade 766 TWh
• NP Clearing 2 160 TWh
• Gross turnover Contracts valued at EUR 80 12
  billion in 2006
• Employees ca 90
• EEX (Germany) 17.3 shares in EEX (European
  Energy Exchange)
• PWX (France) Licensing Nord Pools spot
  market trading system is licensed to French
  Powernext
• NP Nord Pool ASA, Nord Pool Clearing, Nord Pool
  Consulting
• NPS Nord Pool Spot AS, Nord Pool Spot Finland
  Oy

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Our reach - Participants
focus Europe

• E.ON Nordic
• Fortum
• Nuon
• Statkraft
• RWE
• Elsam
• Energi E2
• Heidelberg Cement
• Helsingin Energia
• Statoil
• British Energy
• Electrabel
• EDF Trading
• Merrill Lynch
• Morgan Stanley
• Endesa
• Fortis
• Norsk Hydro

Serving 400 participants in
20 countries
In the carbon market 86 companies have signed
membership agreement
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Tre hovedprodukter i kvotemarkedet
EUAs are today the only exchange traded product
among the three. CER from 1 June. CERs are the
only product that can be banked and traded
through the EU ETS and the Kyoto period.
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Et globalt marked for klimakvoter
(utslippskreditter)
EUA/CER
JI Host
CER
CDM Host
CER
CDM Host
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Nord Pools karbonprodukter

• European Union Allowances (EUA)
• Physical Forward contracts for 2007-2012,
  covering the whole Kyoto period
• CER physical forward contract (2008-09)
• EUA Spot contract (Day-head)
• Electronic and Voice broking/helpdesk
• Cleared by Nord Pool Clearing
• OTC clearing services
• Back office services
• Membership structure adapted to portfolio
  management

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Certified Emission Reduction (CER)

• Iht Kyoto-protokollen og Den grønne
  utviklingsmekanismen (CDM)
• Første børsnoterte (standardiserte) CER kontrakt
  worldwide
• Fysisk Forwards CERDEC-08 og CERDEC-09
• Basert på en EUA kontrakt - felles regelverk
• Eksisterende medlemmer på karbonmarkedet
  automatisk adgang til CER
• Ingen ekstra marginkrav for å handle CER
• Netting mellom EUA/CER i marginberegning
• Godkjente CER prosjekt iht EU ETS direktivet
• Ekskluderer kjernekraft, land use ,land use
  change, skog og store vannprosjekter med
  kapasitet over 20 MW
• NP vil opprette kvotekontoer i UK og Nederland
  (som også vil dekke EUA handel) for å gi kundene
  bedre service og økt fleksibilitet

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Markedsdrivkrefter i karbonmarkedet
Ved en økning i.
CO2-priser
Økonomisk vekst
Nasjonale allokeringsplaner
Værforhold temperatur hydro
Gass/oljepriser
Kullpriser
Teknologikostnader i ETS- sektorene
Import av CER/ERU
An increase reduces the carbon price
An increase increases the carbon price
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Brenselsbytte og miljøgevinst
Pris
Vind, sol etc.
Fyringsolje
Kull og gass bytter plass på tilbudskurven
Gass
Kull
Hydro, kjernekraft
MWh

• Den marginale CO2-kostnaden, reflektert gjennom
  kvoteprisen, medfører at kullkraft får høyere
  marginalkostnad enn gasskraft og derfor erstattes
  kull med gass.
• Denne effekten er avhengig av råvareprisene på
  kull, olje og gass, samt generell
  energietterspørsel.
• Videre vil CO2 kostnaden på sikt bidra til
  teknologiutvikling og til at alternativ fornybar
  energi bedrer sin konkurransekraft.

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Historiske karbonpriser
Tilbuds overskudd
Gevinst sikring
Stigende energipriser
Innstramming av NAPer
Stigende energipriser
Innstramming av NAPer
Overallokering
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Kraft- og karbonpriser
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Handelssystem på Nord Pool
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Tilgang til Nord Pool direkte eller via OTC
markedet
Brokers linked up CO2E.com, Evolution, GFI,
Guardian, HWH, ICAP, M3, Prebon, SKM, Spectron
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www.nordpool.com
For mer informasjon
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Til slutt noen forkortelser...

• Clean Development Mechanism (CDM)The CDM is a
  mechanism for project-based emission reduction
  activities in developing countries. Certificates
  will be generated through the CDM from projects
  that lead to certifiable emissions reductions
  that would otherwise not occur
• Certified Emission Reductions (CER)CER are
  permits generated through the CDM
• Joint Implementation (JI)Joint Implementation is
  a mechanism for transfer of emissions permits
  from one Annex B country to another. JI generates
  ERUs on the basis of emission reduction projects
  leading to quantifiable emissions reductions.
• Emission Reduction Unit (ERU)Permits achieved
  through a Joint Implementation project.

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• Cap and TradeA Cap and Trade system is an
  emissions trading system, where total emissions
  are limited or 'capped'. The Kyoto Protocol is a
  cap and trade system in the sense that emissions
  from Annex B countries are capped and that excess
  permits might be traded. However, normally cap
  and trade systems will not include mechanisms
  such as the CDM, which will allow for more
  permits to enter the system, i.e. beyond the cap.
  
• Marginal Abatement Cost (MAC)The marginal
  abatement cost is the cost of reducing emissions
  with one additional unit. Aggregated marginal
  costs over a number of projects or activities
  define the marginal abatement cost curve.

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Example 1
A factory is given 10 000 tonnes of European
Union Allowances (EUA) for year one from the
government. Planned CO2 output is 10 000
tonnes. In the end the factory emits 10 000.
Thus the factory ends up in a neutral position.
10 000 EUA
CO2 and EUA neutral position
Need 10 000 EUA
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Example 2
A factory is given 10 000 tonnes of European
Union Allowances (EUA) for year one. Planned
CO2 output is 12 000 tonnes. In the end the
factory emits 15 000 due to increased demand.
Thus the factory ends up short and is looking
to buy 5 000 tonnes of EUAs. The market price
is 10 EUR/tonnes. The cost from EUA purchase is
50 000 EUR for the factory (5 00010).
10 000 EUA
Planned 12 000 EUA Need 15 000 EUA
5 000 EUA short
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Example 2
A factory is given 10 000 tonnes of European
Union Allowances (EUA) for year one. Planned
CO2 output is 12 000 tonnes. In the end the
factory emits 8 000 due to investment in new
filters. Thus the factory ends up long and is
looking to sell 2 000 tonnes of EUAs. The
market price is 10 EUR/tonnes. The profit from
EUA selling is 20 000 EUR for the factory (2
00010).
10 000 EUA
Planned 12 000 EUA Need 8 000 EUA
2 000 EUA long