1. CAFE Steering Group
28 February 2007

2. CAFE Steering Group Compliance
28 February 2007
Agenda item 2
Compliance

3. Compliance with emission ceilings
Most of 2010 emissions are projected to be in compliance with ceilings.
However - based on Member States own projections - possible difficulties in complying as follows:
SO2: With measures: Netherlands
NOx: With measures: Austria, Belgium, Denmark, Netherlands, Slovenia
Without measures: Germany, Hungary, Italy, Sweden
VOC: With measures: Denmark, Portugal
Without measures: Poland
NH3: Without measures: Germany
Note: Commission has not received projections for 2010 from Bulgaria,
Czech Republic, France, Greece, Ireland, Romania, Spain.
MS in italics are projected to be less than 5 percent above ceiling.

4. Conclusions - Without prejudice to how the Commission may act -
National Programmes
If National Programmes have not been drawn up and sent to the Commission, the Commission acts.
Further action depends on contents.
National emission ceilings
Confirmed in 2013 (verified 2010 emissions)
Consequences of non-compliance
Commission action based on articles 226 and 228
Letter of formal notice, reply from Member State
Reasoned opinion, response from Member State
Commission may bring the matter to the Court of Justice
Possible Member State action based on article 227
The Court may decide that the Member State has to pay a lump-sum and a penalty payment for continuation of the infringement.

5. Legal options for revising the NECD
CAFE Steering Group
28 February 2007
Agenda item 4
Legal options for revising the NECD

6. Introduction
Review obligations in 2001/81/EC are de facto fulfilled by Thematic Strategy on Air Pollution
Revision NECD announced in Thematic Strategy on Air Pollution
Co-decision procedure

7. Legal options Regulation or Directive If Directive, three variants:
Amend existing directive
Merge existing directive with new 2020-provisions
Stand-alone directive with sunset clause(s)

8. Pros and cons of options
Regulation or Stand-alone directive
Legally clear
Regulation requires no transposition
Pro: better regulation, simplicity)
Con: no discussion on implementing provisions in MS
Amend existing Directive
Would have two directives in force at the same time
Would require codification later

9. Time table for revision of the NECD
Agenda item 5
CAFE Steering Group
28 February 2007

10. Further work
Key scenarios and most technical work ready by end of March:
Updated baselines
Central scenario which meets the objectives of the Thematic Strategy
Other levels of ambition
Sensitivity analysis
Some additional technical work following NEC-PI of March in
April.
Other work:
Legislative proposal + explanatory memorandum
Impact Assessment
Start Inter-service: 13 June 2007

11. Consultations 1 November 2005 1st NEC-PI Working Group
&file
07/05/2019
Consultations
1 November st NEC-PI Working Group
1 February nd NEC-PI Working Group
15 March d NEC-PI Working Group
2 May CAFE Steering Group
12-13 July th NEC-PI Working Group
29 August Conference on Air Pollutant and Greenhouse Gas Emissions Projections for 2020.
18-19 December th NEC-PI Working Group
28 February CAFE Steering Group

12. Remaining consultations
&file
07/05/2019
Remaining consultations
29-30 March th NEC-PI Working Group
(IIASA,Vienna)
29 May th NEC-PI Working Group
(Brussels)
Start Inter-service: 13 June 2007

13. Co-decision procedure by Council and European Parliament
&file
07/05/2019
Co-decision procedure by Council and European Parliament
First guess of the time frame:
First reading and Common Position
Start second half of (Portugal)
Finish beginning 2008 (Slovenia)
If no first reading agreement 2nd reading
Start second reading late 2008 or beginning 2009
Finish second reading before Parliament and Commission change mid 2009
Publication Official Journal in 2008 or 2009
Entry into force 2008 or 2009

14. CAFE Steering Group National Programmes
28 February 2007
Agenda item 6.1
National Programmes

15. National Programmes 2006
Analysis of all EU 25 Programmes to check compliance with requirements
In-depth analysis of selected Programmes
Interim-report for Commission in April to ensure that experience in National Programmes is carried forward to revised NECD
Workshop with Member States
Final report

16. National Programmes in the future
National Programmes are useful for Member States and Commission
In 2010, a Programme needed to ensure compliance in 2020
based on clear guidelines and criteria set by comitology
Programmes need to be internally consistent, as well as with other plans and programmes
Programming of Greenhouse gas reductions particularly relevant
Update in about four years seems appropriate
in particular projection is above ceiling
Reporting Programmes to both Commission and EEA

17. Three options based on existing approach
As currently
As currently, but with acceptance by the Commission
As currently, but updated only if:
emission projection above 2020 ceiling
emissions above “gliding path” between 2010 and 2020

18. CAFE Steering Group Types of ceilings
28 February 2007
Agenda item 6.2
Types of ceilings

19. Types of ceilings for 2020 For SO2, NOx, VOC and NH3 in kilotons
For PM2.5 as a percentage of emissions in 2000
Converted to kilotons once emission inventory is reliable
Transparent mechanism for correcting significant discrepancies, if emission factors change or if new sources found
Possibly, [three] year moving average after 2020

20. CAFE Steering Group Gliding path
28 February 2007
Agenda item 6.3
Gliding path

21. “Gliding path” Purpose: Monitor progress Incentive for early action
How to achieve:
Measure emissions in year 201x against the gliding path; or
Measure average emissions in year 201x and two preceding years against the gliding path.

22. Gliding path - illustration

23. If above gliding path… possible consequences
Update National Programme
Consider market based or other instruments
Non-compliance

24. If below gliding path… possible consequences
Carry over the overcompliance within three year average
Addresses annual variation of emissions
Possibly, carry over “credit for early action” after a specific year e.g. 2015

25. Flexibility of ceilings across Member States
CAFE Steering Group
28 February 2007
Agenda item 6.5
Flexibility of ceilings across Member States

26. Flexibility among Member States
Issue: cross border emission reduction not recognised under current NECD
Emission trading between installations of two Member States difficult
Member States’ borders = not necessarily optimal control areas
First study for the Commission concluded:
For SO2 2-3 optimal control areas might emerge: one in the Northern part of Europe, one in the Southern part and a third in between
For NOx zones would depend on effect analyzed. If acidification, eutrophication and ground level ozone equally weighted, the EU as a whole could be one Optimal Control Area.
Further study on environmental, health and costs for several multi-country bubbles is ongoing

27. Possible use of Optimal Control Areas
Member States within same zone could:
decide to have a common bubble (which could not be exceeded)
allow companies to trade emissions across national borders
Possibly combine with a “buying restriction” of x% to ensure environmental integrity

28. CAFE Steering Group Fuels used / fuels sold
28 February 2007
Agenda item 6.5
Fuels used / fuels sold

29. Conclusions
Method for setting ceilings and calculating national emissions should be based on same principle
For revised NECD the method of ‘fuels sold’ is the basis, thus reporting for compliance should be based on ‘fuels sold’ as well
For other reasons than compliance reporting emissions on the basis of ‘fuels used’ could be useful

30. Application of Market Based Instruments in Member States
CAFE Steering Group
28 February 2007
Agenda item 8
Application of Market Based Instruments in Member States

31. Market based instruments
Presentations by:
Norway
France
Netherlands
Sweden
Switzerland
Slovakia
Denmark

32. CAFE Steering Group Meeting close
28 February 2007
Meeting close