This article presents the application of benchmarks of greenhouse gas emission for free allocations between installations (plants) in the promising emission trading system in Ukraine. The basic concepts and definitions, as well as the principles of approach applied to the development of benchmarks are presented. The summarized data on the calculated values of benchmarks in comparison with values that are accepted now in the European emission trading system are resulted. Certain differences in the construction and application of benchmarks in Ukraine and the EU, caused by the structure and state of economy, as well as the characteristics of the industries covered by the system are analyzed. Certain limitations are specified, first of all in the presence of required basic data which cause the necessity of recalculation. We performed an assessment of the introduction of free allocation for greenhouse gas emissions in the production of electricity at coal-fired power plants in Ukraine with using specific CO2 emission factors. The calculations were carried out under the condition of technical re-equipment of thermal power units with increase in their efficiency and under the condition of absence of re-equipment. We also compared the estimates obtained on the basis of a predetermined emission control indicator for coal-fired power plants with the European level and calculated the volume of free allocation of quotas for Ukrainian thermal power plants based on the results of their activities. Keywords: benchmarks, allocations, electricity, heat, emissions trading system
An Introduction to California's Greenhouse Gas Emission Trading Program
