The SWAP Concept
In compliance with the CO2 trading scheme, Governmental Decision 780/2006, art. 16: “the operators are allowed to use emissions reducing units (ERU) and carbon emission reduction allowances (CER) obtained as a result of project activities, up to a certain percent of the number of CO2 allowances assigned to each installation, as foreseen by the National Allocation Plan”. In compliance with the Romanian Law, this percent figure is: 10%.
CO2 allowances allocation for the EU member states and allowed percentages of swapping EUA allowances with CER or ERU (equivalent instruments from Kyoto protocol):
| COUNTRY | ALLOWANCES 2008-2012 Mt CO2 | CER/EUA |
|---|---|---|
| Germany | 453,1 | 22% |
| United Kingdom | 246,2 | 8% |
| Poland | 208,5 | 10% |
| Italy | 195,8 | 15% |
| Spain | 152,3 | 20% |
| France | 132,8 | 13,5% |
| Czech Republic | 86,8 | 10% |
| Netherlands | 85,8 | 10% |
| Romania | 75,9 | 10% |
| Greece | 69,1 | 9% |
| Belgium | 58,5 | 8,4% |
| Bulgaria | 42,3 | 12,6% |
| Slovakia | 32,6 | 7% |
| Austria | 30,7 | 10% |
| Hungary | 26,9 | 10% |
| Slovenia | 8,3 | 15,7% |
Financing scheme
Compensation scheme
The replacement of CO2 allowances can be performed once a year, with a compensation equal to the difference between the prices for EUA and CER/ERU, or, in one phase, for the whole period. As far as it is allow to report the emissions for the reference years period (2008-2012), in the beginning of the period there can be replaced 10% of all the allocated allowances (EUA) with the corresponding allowances (CER or ERU), provided that afterwards, in order to perform the delivery, a loan would be made from the allocation for the following year.
In case of compensating the entire quantity, the financial compensation will be performed when the agreement is signed.
