Forum for Science, Industry and Business

Sponsored by:     3M 
Search our Site:

 

KfW/ZEW CO2 Barometer: German businesses inadequately prepared for reforms in EU emissions trading from 2013

12.09.2011
  • Many not expected to invest in greenhouse gas emission avoidance until 15 years from now
  • Greenhouse gas emission avoidance an increasingly more important motive for investments
  • High costs of measuring emissions and complex reporting requirements burden small and medium-sized enterprises

German enterprises are inadequately prepared for the third trading period of the EU Emissions Trading System (EU ETS) starting in 2013.

This is the result of the KfW/ZEW CO2 Barometer which was published for the third time today. Up until today, too few German businesses have taken steps to reduce greenhouse gas emissions. Only 40% of the surveyed enterprises have so far assessed the expected costs.

"A key finding of the study is that many investments that would provide considerable emission reductions are not expected in the short term and even in the medium term. They will come too late for the energy turnaround", said Dr Norbert Irsch, Chief Economist of KfW Bankengruppe. "This has to do with the long remaining lifetime of the plants covered by the Emissions Trading System, which is 15 years on average." The share of businesses planning investments from 2013 is rising. Investments in energy efficiency technologies in particular are on the agenda. "What is encouraging is that carbon reduction is increasingly becoming the main motive of investments and no longer represents only a welcome side-effect", said Prof Dr Andreas Löschel (ZEW), Head of the Environmental and Resource Economics, Environmental Management department at the Mannheim-based Centre for European Economic Research (ZEW).

What is driving the increased interest of businesses in reducing carbon emissions is the fact that a significant drop in the free allocation of emission allowances from 2013 will create considerable additional costs for them. At present, only 27% of enterprises have to purchase additional emissions allocations. From 2013 this share will rise to 63%, according to the current CO2 Barometer. The resulting additional costs differ greatly between the individual enterprises participating in emissions trading. For enterprises with high carbon emissions the costs will be in the millions. As the actual allocation quantity will not be determined until sometime in the second half of 2012, the surveyed enterprises do not have enough time to prepare. They estimate that it would take them more than 20 months to prepare optimally.

The results of this year's KfW/ZEW CO2 Barometer illustrate that enterprises have to adjust even better to the challenges of the EU-ETS. Particularly with a view to efficient carbon management, they have a lot of catching up to do. The majority of the enterprises affected by emissions trading (70%), for example, offer their employees no incentives for identifying carbon reduction potential.

In the opinion of the authors Irsch and Löschel, emissions trading fails to have a full incentive effect in the majority of the enterprises.

Another key result of the study is that 61% of enterprises with several plants offset a surplus or shortfall in emission allowances for specific plants within the company itself. The emission allowances therefore do not enter the free trade, which impairs the efficiency of the emissions trading instrument. The efficiency of emissions trading can also be impaired when trading activities are hampered by transaction costs. Thus, according to the KfW/ZEW CO2 Barometer, an enterprise with low emissions must calculate a surcharge of roughly 4% on the certificate price, particularly for the emission measurement and the necessary reporting, while an enterprise with high carbon emissions on average must calculate only 0.5%.

Pressekontakt:
KfW, Palmengartenstraße 5-9, 60325 Frankfurt
Kommunikation (KOM) Tel. 069 7431-4400, Fax: 069 7431-3266,
E-Mail: presse@kfw.de, Internet: www.kfw.de/medien

| presseportal
Further information:
http://www.kfw.de

More articles from Business and Finance:

nachricht Microtechnology industry is hiring – positive developments of past years continue
09.04.2018 | IVAM Fachverband für Mikrotechnik

nachricht RWI/ISL-Container Throughput Index with minor decline on a high overall level
20.03.2018 | RWI – Leibniz-Institut für Wirtschaftsforschung

All articles from Business and Finance >>>

The most recent press releases about innovation >>>

Die letzten 5 Focus-News des innovations-reports im Überblick:

Im Focus: It’s All in the Mix: Jülich Researchers are Developing Fast-Charging Solid-State Batteries

There are currently great hopes for solid-state batteries. They contain no liquid parts that could leak or catch fire. For this reason, they do not require cooling and are considered to be much safer, more reliable, and longer lasting than traditional lithium-ion batteries. Jülich scientists have now introduced a new concept that allows currents up to ten times greater during charging and discharging than previously described in the literature. The improvement was achieved by a “clever” choice of materials with a focus on consistently good compatibility. All components were made from phosphate compounds, which are well matched both chemically and mechanically.

The low current is considered one of the biggest hurdles in the development of solid-state batteries. It is the reason why the batteries take a relatively long...

Im Focus: Color effects from transparent 3D-printed nanostructures

New design tool automatically creates nanostructure 3D-print templates for user-given colors
Scientists present work at prestigious SIGGRAPH conference

Most of the objects we see are colored by pigments, but using pigments has disadvantages: such colors can fade, industrial pigments are often toxic, and...

Im Focus: Unraveling the nature of 'whistlers' from space in the lab

A new study sheds light on how ultralow frequency radio waves and plasmas interact

Scientists at the University of California, Los Angeles present new research on a curious cosmic phenomenon known as "whistlers" -- very low frequency packets...

Im Focus: New interactive machine learning tool makes car designs more aerodynamic

Scientists develop first tool to use machine learning methods to compute flow around interactively designable 3D objects. Tool will be presented at this year’s prestigious SIGGRAPH conference.

When engineers or designers want to test the aerodynamic properties of the newly designed shape of a car, airplane, or other object, they would normally model...

Im Focus: Robots as 'pump attendants': TU Graz develops robot-controlled rapid charging system for e-vehicles

Researchers from TU Graz and their industry partners have unveiled a world first: the prototype of a robot-controlled, high-speed combined charging system (CCS) for electric vehicles that enables series charging of cars in various parking positions.

Global demand for electric vehicles is forecast to rise sharply: by 2025, the number of new vehicle registrations is expected to reach 25 million per year....

All Focus news of the innovation-report >>>

Anzeige

Anzeige

VideoLinks
Industry & Economy
Event News

LaserForum 2018 deals with 3D production of components

17.08.2018 | Event News

Within reach of the Universe

08.08.2018 | Event News

A journey through the history of microscopy – new exhibition opens at the MDC

27.07.2018 | Event News

 
Latest News

Quantum bugs, meet your new swatter

20.08.2018 | Information Technology

A novel synthetic antibody enables conditional “protein knockdown” in vertebrates

20.08.2018 | Life Sciences

Metamolds: Molding a mold

20.08.2018 | Information Technology

VideoLinks
Science & Research
Overview of more VideoLinks >>>