The ministry asks investors for KPIs for European ETS funds by June 1 – too short of a term

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The Energy Ministry has urged investors to provide the main investment indicators for EU ETS in just two weeks to meet the June 1 deadline demanded from Brussels, industry sources told energynomics.ro.

“It’s a too short term, we cannot calculate all these indicators so quickly,” the quoted source said.

As the energynomics.ro wrote previously, the authorities have an interim deadline in June and one mandatory in September (possibly extended towards the end of the year) to communicate with the Union for projects to be financed via the Components: The 10c Derogation, Modernization Fund, Solidarity Fund, and Innovation Fund.

Investors have been asked for the following parameters: Investment Definition, Investment Objective, Investment Effects, Contribution to Increasing Energy Efficiency, Contribution to CO2 Emissions Reduction, Investment Period, Value of Investment, in Euro and RON, Economic- financial indicators (VAN – net asset value, RIR – rate of investment return), sources of financing of the investment (the financing source and the related percentage of the investment).

And while in Romania these indicators are barely asked for, in other countries, for example the Czech Republic, has already redistributed its projects, many states preferring to move money from other funds to the Modernization Fund, where there are several advantages, among which that one can finance 100% of renewable or storage projects without co-financing instead of classical projects.

EU-ETS system allows for investment worth more than 45 billion euros by 2030

The European Union offers member states at least 45 billion euro through the EU ETS to meet its climate targets for 2030, according to a study by the European Roundtable on Climate Change and Sustainable Transition (Ercst) and Central Europe Energy Partners (CEEP).

According to the document consulted by energynomics, if the value of an ETS allowance is of 20 euro (the minimum scenario), Romania has at its disposal until 2030 about: 2.5 billion euro via the Solidarity Provision, another at least 1.87 billion euro from Article 10c Derogation, about 756 million euro from the most important and newest facility- the Modernization Fund, which can receive also money from the other facilities and in which case Romania can rise up to 5.3 billion euro, and an unspecified amount from another facility called the Innovation Fund.

The funding scheme provides the allocation of EUR 20 billion for the EU-27 via the ETS (Emissions Trading System) which offers about EUR 16 billion through the Solidarity Fund, around 13.2 billion through the Derogation from Article 10c, approximately 6.3 billion through the Modernization Fund and EUR 10 billion through the Innovation Fund.

If the cost of certificates increases to 35 euros, the funds allocated will rise accordingly. Thus, the total amounts grows to 80 billion euro, the Solidarity Fund, to 28.5 billion, the Article 10c Derogation, to 23 billion, the Modernization Fund, to 11 billion (but this fund can receive some reallocations from the others facilities) and 17.5 billion euro through the Innovation Fund.

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Bogdan Tudorache

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