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Review of Market-Driven Approaches in Sustainable Energy Policies Deliverable D4.3 Ref. Ares(2016)4010219 - 29/07/2016 Review of market-driven approaches in sustainable energy policies Deliverable D4.3 Mathieu Salel1, Eva Boo1 Breffní Lennon2, Christine Gaffney2, Alexandra Revez2, Niall Dunphy2, Stephen Axon3, Rosita Aiesha3, Josep Otal4, Orsetta Chichinato5, Tiziana Melchiorre5, Valeria Costantini5 1 LGI Consulting, Paris, France 2 Cleaner Production Promotion Unit, School of Engineering, University College Cork, Ireland 3 Natural Sciences and Psychology, Liverpool John Moores University, Liverpool, United Kingdom 4 Enerbyte Smart Energy Solutions SL, Barcelona, Spain 5 Reddin SRL, Livorno, Italy http://www.entrust-h2020.eu This project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement No 657998 Document Information Grant Agreement #: 657998 Project Title: Energy System Transition Through Stakeholder Activation, Education and Skills Development Project Acronym: ENTRUST Project Start Date: 01 May 2015 Related work package: WP 4: Policy Analysis Related task(s): Task 4.1 Mapping of policy & regulation landscape Task 4.2 Assessment of “Europeanisation” in national policy dialogue Lead Organisation: LGI Consulting Submission date: 31 July 2016 Dissemination Level: PU - Public History Date Submitted by Reviewed by Version (Notes) 20 July 2016 Mathieu Salel (LGI) REDINN A STAM 25 July 2016 Mathieu Salel (LGI) UCC B LJMU 28 July 2016 Mathieu Salel (LGI) Niall Dunphy (UCC) Release v1.0 D4.3 Review of market-driven approaches in sustainable energy policies v1.0 Page ii of xii Table of Contents About the ENTRUST Project ........................................................................................................ vi Executive Summary ................................................................................................................... vii Acronyms .................................................................................................................................. xii 1 Introduction ......................................................................................................................... 1 1.1 Introduction to the deliverable .................................................................................................. 1 1.2 EU approach regarding sustainable energy policies ................................................................... 3 2 Methods and tools ............................................................................................................... 9 2.1 Definitions & scope of the study ................................................................................................ 9 2.2 Methods ................................................................................................................................... 12 3 Use of market-based policy instruments in the EU .............................................................. 15 3.1 Major periods and volume of MBI applications ........................................................................ 15 3.2 Categories and types of MBIs ................................................................................................... 20 3.3 MBIs’ sustainable objectives .................................................................................................... 23 3.4 MBIs’ main tarGeted sectors ..................................................................................................... 25 4 Country case studies: highlighted success stories ................................................................ 29 4.1 Energy efficiency in buildings ................................................................................................... 29 4.2 Low-emission vehicles .............................................................................................................. 43 4.3 Energy production from renewable sources ............................................................................. 50 4.4 Greenhouse Gases emissions reduction .................................................................................... 61 5 Conclusions ........................................................................................................................ 68 5.1 General lessons ........................................................................................................................ 68 5.2 Domain-specific lessons ........................................................................................................... 69 6 Bibliography ....................................................................................................................... 71 Annex 1 Template and Guideline used to describe case studies ................................................. 77 Annex 2 List of identified market-based instruments ................................................................. 80 D4.3 Review of market-driven approaches in sustainable energy policies v1.0 Page iii of xii List of Tables Table 1: List of fourteen criteria used to describe the MBIs ............................................................ 13 Table 2: Characteristics of MBI_IT_29 case study .......................................................................... 29 Table 3: Characteristics of the MBI_DE_39 case study .................................................................. 32 Table 4: Grant conditions according to energy efficiency achievements ........................................ 34 Table 5: Loan conditions according to energy efficiency achievements ......................................... 34 Table 6: Time conditions for loans .................................................................................................. 35 Table 7: Number of houses refurbished .......................................................................................... 35 Table 8: Estimation on CO2 emission savings ................................................................................. 35 Table 9: Estimation on job creations .............................................................................................. 36 Table 10: Characteristics of the MBI_FR_23 case study ................................................................ 36 Table 11: Example of tax relief rate per technology applied in 2011 ............................................. 38 Table 12: Number of dwellings ....................................................................................................... 38 Table 13: Characteristics of MBI_FR_29 case study ...................................................................... 39 Table 14: Overall energy saving target at national level ................................................................. 40 Table 15: National targets and achievements ................................................................................ 42 Table 16: Characteristics of MBI_IR_17 case study ....................................................................... 43 Table 17: Range of price and grant awards .................................................................................... 46 Table 18: Characteristics of the MBI_ESP_29 case study .............................................................. 46 Table 19: the 8 PIVE plans and their respective allocated budgets ............................................... 48 Table 20: Characteristics of the MBI_IT_03 case study .................................................................. 50 Table 21: Characteristics of the MBI_UK_23 case study ................................................................ 53 Table 22: ROC buy-out price and percentage of supply ................................................................. 55 Table 23: Recent and predicted UK energy consumption by source .............................................. 57 Table 24: Characteristics of MBI_ESP_21 case study .................................................................... 57 Table 25: Evolution of the Renewable Energy percentages in Spain by typology .......................... 58 Table 26: Obligation per type of fuel between 2008 and 2020 ........................................................ 59 Table 27: Evolution of the % achieved of biofuels in past years .................................................... 61 Table 28: Characteristics of the MBI_IR_16 case study ................................................................. 61 Table 29: Characteristics of MBI_DE_24 case study ...................................................................... 64 D4.3 Review of market-driven approaches in sustainable energy policies v1.0 Page iv of xii List of Figures Figure 1: EU energy strategy ............................................................................................................ 2 Figure 2: Member States’ GHG emission limits in 2020 compared to 2005 level ............................. 3 Figure 3: Trends in share of energy from renewable sources in gross final consumption of energy 4 Figure 4: Absolute level of energy consumption in 2020 [Mtoe] as notified from Member States ..... 5 Figure 5: Illustration of objectives and targeted domains of the EUROPE 2020 strategy ................ 5 Figure 6: Categories and types of market-based instruments ......................................................... 11 Figure 7: Status in 2016 of identified MBIs ..................................................................................... 15 Figure 8: Result of the search “market-based instruments” in Google Ngram
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