Estonia Fights EU Emissions Quotas
Baltic State Sues Committee Over Carbon Dioxide Discharge Limitation
Estonia, feeling that their quota for industrial carbon dioxide emissions was set unfairly low by the European Commission, is taking its case to the European Court.
The European Union, in support of its own initiative moving towards more environmentally friendly energy, has set a quota limiting Estonia to 12.7 million tons of carbon dioxide emissions annually for the period 2008-2012. Estonia had requested a quota of 24 million tons of emissions per year.
Almost 70% of Estonia's domestic energy needs are currently produced by burning combustible oil shale, a fossil fuel. This leaves the northernmost Baltic state highly dependent on carbon-dioxide producing fuel. Prior to joining the European Union in 2004, the Estonian government agreed to phase out their oil shale plants by 2016, but wants to maximize use of the industry until that time.
Basis for EU Quota Decision
Estonia believes the Commission's decision was based on false assumptions. The European Commission used the PRIMES partial equilibrium model (version 2.0) as the basis for its decision. The PRIMES model provides a simulation of energy systems and decisions of agents and markets in several sectors and technologies. A coefficient used in the model is linked to a country's economic behavior, presuming that during the five year period in question, there will be a major transition to the use of co-generating stations using natural gas for energy production.
Estonia' Assertions Against the Quota
Estonia contends that the PRIMES model assumes the country will increase its use of natural gas several fold for electricity production. In reality, natural gas is difficult for Estonia to obtain unless they purchase it from Russia, and the government does not wish to increase its dependence on Russian energy. If Estonia did use more natural gas, it would need to finance construction of new co-generating plants. Assuming such a project could be properly funded, these facilities cannot be built in such a short period of time to meet EU deadlines.
Regarding renewable energy, Estonia argues they have already met the European Union's 20% minimum requirement on such energy sources, well before the 2012 deadline. Einari Kisel, chief of the Estonian Economy Ministry's energy department, has stated that the 20% requirement is calculated on the basis of final consumption of resources, and does not include exports of electricity and other types of energy. The requirement also does not include losses through power networks and power generating plants.
Kisel remarked that when including electricity, heat, fuel, home heating, and transport, Estonia ranks amongst the top 5 European countries using renewable energy sources. Utilizing hydro-energy, Latvia is first at 40% usage of renewable energy. Finland and Sweden are next around 30%, followed by Estonia and Austria at close to 20% In this regard, Estonia has already surpassed the European Union renewable energy goal set for 2020.
What Will Estonia Do About their Emissions?
Estonia, like many other European countries, is seriously considering investments in nuclear power as a new energy source. This may require some dependence on Russia for the technology and facilities, but it would not require a longtime commitment. Meanwhile, international experts feel that Estonia's lawsuit will likely be settled out of court, with their quota set somewhere under 20 million tons of carbon dioxide emissions per year.
References
Capros, P. "The PRIMESEnergy System Model: Summary Description." National Technical University of Athens. 1999.
Wire Reports. "Estonia to take EU executive to court over greenhouse gas emissions quota." Baltic Times. July 18, 2007.
