POLICY DESIGN/ANALYSIS AND STRATEGY DEVELOPMENT

Europrosper and EPLABEL
The EU Energy Performance of Buildings Directive is set to transform the attitude of building owners and occupiers towards energy use in buildings. Its most radical measure is to require all new buildings and all existing buildings to have an energy certificate from 2006. Under the Europrosper project (2002-04) ESD led seven EU countries to develop the methodology for certifying existing office buildings, and the associated training material to produce accredited assessors. The EPLABEL project (2005-07), co-funded by the EC and the UK government, extends this approach to six further sectors: health, sports centres, higher education, schools, hotels and restaurants.

BASE - Baselines in Action
ESD undertook a far-reaching research and development project for the European Commission using its SAFIRE cost benefit model to identify and test various baseline methodologies on practical, real Joint Implementation (JI) projects in Central and Eastern Europe. The projct, BASE, involved partners in the UK, Finland and Austria, in the EU15, and partners in Estonia, Poland, Czech Republic, Hungary and Slovenia, all New Member States who joined the EU in May 2004.

The project team identified a series of projects in the electricity and combined heat and power sector, to develop baseline methodologies and baselines for grid connected systems (renewables, chp, new technologies) and non-grid connected stand alone chp systems. The SAFIRE model served to help identify various options and to define the greenhouse gas reduction results, as well as other costs and benefits. The project helped inform the European Climate Change Programme's development of baseline strategies which appeared in the Emissions Trading Directive, and was presented at the the UN's Conference of Parties sessions in Bonn, 2003.

The results of BASE are being used practically for baseline development in the electricity sector in a number of JI countries, and on CDM projects.

EcoCert: tradable cogeneration certificate trading in the EU
ESD worked with 10 energy companies in Europe to develop an outline design of a cogeneration (combined heat and power, CHP) certificate trading system, for application at the European level, and at the level of individual member states. Such schemes could reward operators for the environmental benefit of cogeneration or, when combined with some form of certificate demand incentive, as a market-based support scheme for cogeneration. Client: European Commission, 2002-2003.

Design of carbon finance mechanisms for gas flaring reduction projects
ESD partnered with ECON of Norway to analyse and assess the potential for a gas flaring reduction market within the framework of the UNFCCC and the Kyoto Protocol while defining the criteria for selecting gas flaring reduction projects suitable for carbon financing. The final report included an evaluation of at least two gas flaring reduction projects as case studies. Client: World Bank.

EU Emissions Trading Scheme
ESD was on Task Force 1 of the European Climate Change Programme that specifically looked at the interactions of the EU ETS with the Kyoto project based mechanisms (Joint Implementation and Clean Development Mechanism). Additionally, ESD worked with the with the European Commission (DG Environment, the European Investment Bank EIB) and the ECCP to define and develop a project preparation facility to promote and facilitate investments by EU firms in JI and CDM projects. Client: European Commission, 2001-2002.

Consumer carbon offsets study
A consumer carbon offset can be defined as the provision of a consumer service or good, for which its greenhouse gas impact has been all or partially "offset" by an equivalent carbon saving achieved elsewhere. ESD reviewed possible mechanisms for operating a national scheme for promoting consumer carbon offsets in the UK, as a means of both reducing carbon emissions and raising consumer awareness about the climate change impact of products. Recommendations for the most practical and cost-effective mechanism were made based on extensive stakeholder dialogue. The recommendations were taken forward by the UK Government's Advisory Committee on Consumer Products and the Environment. Client: Defra, 2001.

Interactions between new emissions trading related policies
ESD initiated and led a programme of work for the UK government to identify potential interactions between a number of new emissions trading related policies (including the UK Emissions Trading Scheme, the Renewables Obligation, the Energy Efficiency Commitment and the pilot Gas Flare Transfer scheme). ESD recommended solutions to ensure fungibility between schemes, and to enable greater transparency and institutional efficiency in their management. Client: Defra, 2000

EU Renewable Electricity Directive
Using its SAFIRE energy markets model, ESD produced the draft indicative targets for the EU's Renewable Electricity Directive. These results were used in the negotiations with the Member States for the final indicative targets specified in the directive itself. Subsequently, in 2002, ESD performed the same task for the EU Accession States, where the SAFIRE results were used as the starting point for negotiations with the NAS on the acquis communautaire regarding the links to the renewable electricity directive. Client: European Commission, 2000.

RECerT: tradable green certificates in the EU
From 1999-2001, ESD led the RECerT project, which comprised a consortium 27 European electricity companies, consultants and related specialist organisations, from 14 EU member states and Norway. RECerT helped to define the necessary requirements for EU-wide renewable electricity certificate trading, and to inform industry, key Member State policy makers and the EC on ways and means to promote and support EU-wide trading in green certificates. The project included the development of a prototype green certificate trading platform, which over three months simulated trading over a five year period, yielding information on projected trading volumes, investment in new capacity, and price variations. Client: European Commission, 1999-2001.

South West England renewable energy strategy
In 2002 ESD led a consortium of stakeholder organisations to establish a region-wide renewable energy strategy for the South West of England. The strategy included an action plan physically to achieve a 15% renewable energy target for the region, to develop the necessary skills and awareness in this part of the UK, and to develop and promote a world-class renewable energy industry base. The strategy was informed by consultation with key regional bodies such as the Government Office South West and the SW Regional Assembly, and resulted in the establishment of REGen South West. Client: South West Regional Development Agency, 2002.

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