Transcript Slide 1
Guarantees of Origin: is an
electronic marketplace possible?
Stefano Alaimo
Chair of the WG on Environmental Markets
Market price for GOs
Big question:
which is a reliable market
price for a GO?
2
Organized markets
• One of the scopes of an organized market is to
gather interests on few instruments in a safe
environment, in order to “produce” an economically
efficient price
• Main features of an organized market are:
security
liquidity
transparency
3
Organized markets
The creation of a “mature market” is a very long
process
Some basic requirements are needed to create
“confidence” in the market’s operators
The more confidence is reached, the more liquidity
will be attracted
4
Liquidity
To achieve a good liquidity in a market, it would be better:
• to have only one instrument traded
It should be important that GOs implementation
will be based on one stable standard i.e. the
European Energy Certificate System (EECS), as
suggested by RE DISS project
• to create demand
Voluntary demand is not enough. Member States
should introduce mandatory schemes for fuel mix
disclosure based on GOs (other tracking system
possibly coordinated and converted to GOs)
5
Security
To create confidence in an organized GOs spot market, it is
needed:
• a reliable guarantee system - market operator acting as
Central Counterparty (payments and spot delivery are
guaranteed)
• links between Registries (Hub) to avoid double selling and
double counting (comparable to the Registry regulation for
EU ETS)
6
Transparency
Trading on a organized market might provide
transparency - prices disclosure and provide also
economic signals to operators and institutions
An efficient and reliable market price could be also used
as benchmark for bilateral contracts and for forward
contracts
7
Conclusion
Potential for GOs organized market:
A liquid, safe and transparent GOs spot market could lead to
a wider use of GOs in Europe. Social welfare and investments
could benefit
Threats:
It is needed to avoid green-washing, VAT carousel, double
counting, hacking of the systems (see ET ETS experience…)
8
Contacts
EUROPEX
association of european energy exchanges
Rue Montoyer 31 Bte 9
1000 Brussels - Belgium
Phone. +32 2 512 34 10
www.europex.org
[email protected]
9