1. Quotas for energy resource use - An
integrating set of tools to manage
environmental, social and economic crises
Veronika Kiss, CEEweb for Biodiversity
European High-Level Conference on Rio+20:
“Achieving Global Justice in the Green Economy”
March 15th, Brussels
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2. A growing world population meets the
challenge of limited natural resources. How
about the future?
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3. Problems to be solved: resource use
• Overshoot – utilising resources above carrying
capacity
• Return to carrying capacity
• Regulation of resource input to the economy
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4. Challenges of resource use regulation
Challenge Tackle the challenge
Human made structures (production Change structures to
and consumption, infrastructure) a less resource
requires energy to operate and intensive one
maintain.
Natural resources are undervalued and Limit resources and
though unlimited. give them real price
Getting the maximum profit, investors Minimise negative
privatise all benefits and shift external costs
externalities to the society.
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5. Challenges of resource use regulation
Challenge Tackle the challenge
Economic growth means Establish „free money” -
benefit for a few people based stimulates economy and long
on due the compound interest. term investments.
550 ppm in 2050 requires Reduce the energy resource
920 MW in RES and the use of economy activities
replacement requires
additional enormous amount
of energy
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6. System level
innovation requires systemic approach
• Outputs comes from inputs.
• Less input means less resource use, less use of land,
and less emission.
• We have to change production and consumption
patterns through
legal
economic
regulation
incentives
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7. Energy quota scheme
•1st pillar: non-renewable energy quota
•2nd pillar: green market
•3rd pillar: revolving fund
•4th pillar: advisory service
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8. 1st pillar: non-renewable energy quota
•To reduce non-renewable resource use year by year
until it reaches the carrying capactiy
•A cap and share (trade) system of non-renewable
energy resources instead of GHG emissions
•All users are grouped and each group receive
allowances (called energy quota)
Different interest groups come up with proposal of
quota amount and share it among themselves
People get personal quotas from managing
organisation
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9. 1st pillar: non-renewable energy quota
•Quotas cover all kind of energy demand (gas, electricity,
fuel)
Users trade with saved quotas,
The saved quotas can be sold for a new type of
money, called quota money.
•If the absolute use of energy quotas exceeds the annual
cap extra quotas can be bought at a high rate from the
managing organisation.
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10. How is quota money born?
Rest Sell Quota
Balance money
Quota of quota
received and real Exchange
consumption
Need Buy Additional
Quota
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11. Quota money
• its guarantee the national currency
• has zero interest
• its exchange to national currency has a high commission
(e.g. 30%)
•stimulates the economy
through the green market
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12. 2nd pillar: Green Market
• An internal green market is established for
environmentally sound goods and services.
• The market is open, run by market rules.
• It sets sustainability
requirements and
thus excludes certain
goods and services.
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13. 3rd pillar: Revolving Fund
• a financial instrument to ensure sufficient amount of
credit
in quota money
financial security: paid back through the future
energy savings or the generated profit of the
investment
low speed return:
speed of return depends on
speed of saving
• Credit covers all costs of investment and its 100% is
returned to the Fund.
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14. 4th pillar: Advisory service
• informs all stakeholders (citizens, industries, etc.)
affected by the system
• provides assistance and guidance
on how to change lifestyles
and how to make right
(investment) decisions
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15. Strengths
•Feasible apart from the globalised world
•Step by step
•Not just GHG but all dimension of environmental
problems are concerned.
•Stimulates economy,
•Increases long term competitiveness,
•Gives new direction to research and development,
•Supports social justice.
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16. Thank you for your attention!
Any questions?
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Notes de l'éditeur
Showing the connection between thos problems which have been emerged durignt he discussion so far and this proposed measure: this can be the solution for the problems.
IRP report: III. Scenario: Metabolic rates of industrial and developing countries converge at around 6 tons per capita per year. This scenario requires far-reaching absolute resource use reductions in the industrialized countries, by a factor of 3 to 5. Countries classified as ‘developing’ in the year 2000 would have to achieve 10–20% reductions in their average metabolic rates. this scenario is consistent with the 2.2 tons of carbon per capita recommended by the IPCC as the convergence point that could prevent warming by more than 2 degrees centigrade. This report focuses on material resources, namely fossil fuels, minerals, metals and biomass. As such, it is not the intention of the IRP to cover all resources and issues in a single report. Rather, this report will be complemented by parallel reports of the IRP on land and soil, water, metals, cities and technologies to mitigate GHG emissions.more sustainable economy requires an absolute reduction in resource use at a global level non-renewable from external sources
Két fok alatt a klimavalt. ? – so altogether we will need huge amount of energy for replacement and for maintaning the current rate of energy consumption.
We always forget that outputs come from input, and we would like to tackle climate change through output side regulation, and forget to think the consequences of still increasin g fossil energy resource exploitation, if we increase the exploitation, how the output of it can dbe decreased? how much exactly has the fossil energy use increased ? However, thein order to avoid further environmental pressure form decreasign resource use, we propose that this measure should be used together with land use regulation in order to avoid to shift the pressure Kérdéseivel kapcsolatban az ÖKO ZRT hatástanulmányában talál magyarázatokat. A 194 és 161 PJ a megújulókkal kiváltott fosszilist, illetve a megtakarított fosszilis energiát jelenti. Vagyis az a kérdezett adat a megtakarítással kapcsolatban. A megtakarítás és kiváltás költségét fedezi a visszatérülő alap. Az induló pénz azért kisebb, mint a felfutó, mert eleinte nem annyira költséges a megtakarítás, másrészt irreális lenne egy nagyon magas induló tőke. Viszont, ha az alap folyamatosan töltődik fel, és a visszafizetések is folyamatosak az első évtől kezdve, akkor az alap növekszik. A tizedik év végén az alap önfenntartóvá válik, vagyis nem szükséges több befizetés az alapba, a korábbi "támogatások" visszafizetései fedezik az alap további működését.
Population : everyone gets the same year Interest groups get a quota amount based on the current consumption, which they will be distribute among themselves.
Why to exceed the cap: in generates extra income for the whole system. This provide an extra source for the Revolving Fund. There are funds for national RES and EE investments, but they are insignificant. Adn this extra money, woudl porvide additional support for it. In case we exceed tha elaready decreased cap of energy resource use, but have additional budget for realize this aim next year, which will be then easier. Big consumer will pay this extra money: therefore it is socially just
Service: house insulation, organic farming, organic hair dresser,
Social just, capable to decrease social differences, sicne at the moment poor people are not able to invest in energy savings, but thrgouh this scheme they can enter to the system through thier energy quota savings. Exceeding the national cap: oversonsumers are paying which amount is chaneled into this fund, so enables it to ensure more support for investments. 3 pros: Poor can participate Long term invesmtents Has more money comparign to the current funds
Nevironmental tax decrease the competitiveness, this system enable to invest, amelyre igény és szükség van a jelnlegi in reosurce scarcity and energy dependece
