During this event we will dive into the recent trends in regulated carbon markets and explore their links and connections, including with voluntary carbon markets (VCMs). In the last years, the number of carbon taxes and Emissions Trading Systems (ETSs) has grown worldwide. However, the integration of these systems has progressed slowly due to divergent design features, such as permit types, sectoral coverage, and monitoring methods, reflecting each domestic context. Connections between ETSs and VCMs have also stalled due to concerns about credit quality, monitoring, reporting, and verification issues connected with offsets. Do the recent findings reflect progress towards further integration, and can we detect a trend towards more aligned ambition and more consistent market regulation?

This panel represents the first part of the annual Net Zero Carbon Market Policy Dialogue (NZCMPD) organised under the framework of the LIFE COASE project. The aim of the policy dialogue is to facilitate international carbon market cooperation between the EU and partner jurisdictions on key topics around net-zero regulation and integration of carbon markets. It will assess the state of play on international carbon markets in view of addressing in a later phase the methods and findings of ex-ante and ex-post assessments of the EU ETS and other ETSs worldwide.

This event is organised by FSR Climate and will take place before the opening of the EUI Climate Week 2024.

Moderator:

• Simone Borghesi, Director Florence School of Regulation – Climate, European University Institute

Panellists:

• Baran Doda, Head of Programme Carbon Markets and Pricing, Adelphi
• Jean-Yves Benoit, Director General, Carbon Regulation and Emissions Data, Québec Ministère de l’Environnement, de la Lutte contre les changements climatiques, de la Faune et des Parcs
• Hannah Lewis, Head of Policy for the UK Emissions Trading Scheme, UK Department for Business, Energy and Industrial Strategy
• José Pedro Bastos Neves, Ministry of Finance, Brazil
• Michael Mehling, Deputy Director, Center for Energy and Environmental Policy Research, MIT

Conclusions:

• Mette Quinn, Deputy Director, EU and International Carbon Markets, DG CLIMA, European Commission

More information and the full programme of the EUI Climate Week 2024 can be found here.

The frequency of natural disasters due to climate change is increasing, and institutions across different geographic areas are not equally ready to cope with such events. In fact, the lack of adequate institutional responses is likely to exacerbate the consequences of these events. Making the EU and developing countries better able to cope with the devastating consequences of climate change requires an articulated policy mix around carbon price, and resilient and reactive institutions and processes. Many economical, political and social lessons can be drawn from the recent health and war crises but also natural disasters.

This panel will explore feasible manners to enhance resiliency to climate change pursuing the European Green Deal agenda, taking in consideration the climate mitigation policies. It will also address how to better prepare agriculture, biodiversity, the health system and our economies in general to cope with climate change and how to protect the most vulnerable populations in developing countries and in Europe.

Moderators:

• Simone Borghesi,  Director of the Florence School of Regulation – Climate, EUI
• Fabrizia Mealli, Professor of EconometricsEuropean University Institute, EU

Panellists:

• Hans-Martin Füssel, Climate Change Adaptation Expert, European Environment Agency (EEA)
• Shonali Pachauri, Research group leader, International Institute for Applied Systems Analysis (IIASA)
• Massamba Thioye, Project Executive UNFCCC Global Innovation Hub, UN Climate Change Secretariat
• Mira Manini Tiwari, Research Associate, RSCAS, EUI

FSR Climate, together with the Policy Outreach Committee of EAERE (European Association of Environmental and Resource Economists), organises this session to promote a more integrated dialogue between academia and policy world, providing advice and support to EU policy makers and institutions in designing policy interventions.

The event is organised under the framework of the Horizon Europe project SPES and will take place during the EUI State of the Union 2024. SPES is funded by European Union’s Horizon Europe Programme under Grant Agreement No. 101094551.

Participation in this panel is via invitation only. Find out more about the full programme of the State of the Union here.

As the number of carbon markets grows, the long-term contribution of market-based instruments to reach carbon neutrality by 2050 should be further assessed. In general, the size, scope, parameters, and prices of Emissions Trading Systems (ETSs) vary and evolve depending on the social, economic, political, and legal context of each jurisdiction. All these aspects of regulated carbon markets are to be considered by policymakers. To tackle challenges, regulators may find insights from new scientific evidence.

This workshop aims to collect insights from policy-relevant research on recent trends in carbon markets, with a particular focus on the EU ETS. It will address topics such as future allowance prices, scope expansion of ETSs and market oversight, among others. Furthermore, it will focus on the methodologies used to assess ETSs (i.e., ex-post and ex-ante model-based assessments) and their results.

The 3-day event will comprise a keynote lecture, paper presentations, a policy roundtable and a guest lecture.

It is organised by FSR Climate under the framework of the LIFE COASE project, which is co-funded by the European Union’s Life Programme. The workshop combines the ex-post and the ex-ante model based assessment of ETSs and will take place during the Joint Session of Workshops of the Robert Schuman Centre in the context of the 30 anniversary of the Centre.

Participation in the event is via invitation only. Find out more about the programme of the Joint Session of Workshops here.

Programme

18 June 

 10:00-10:45 Introduction, Tour de Table, Ice Breaker 

 11:15-12:05 Keynote speech: The merits and shortcomings of the EU carbon markets 

• Sonja Peterson | Kiel Institute for the World Economy 

 12:15-13:00 Session 1: Chinese National ETS Model 

China’s national ETS price outlook: long-term forecast and policy scenarios [Introduction]

• Boyang Jin | London Stock Exchange Group 

14:00-15:30 Session 2: EU ETS Models 

Economic interaction between climate policy instruments [Abstract]

• Jakub Boratyński | KOBiZE 

 Sequencing CDR into the EU ETS [Abstract]

• Sebastian Osorio | Potsdam-Institute for Climate Impact Research 

 16:00-17:10 ETS Model Comparison 

• Sebastian Osorio 

19 June 

10:00-11:30 Session 3: Carbon leakage 

Carbon border adjustments: an examination of the direct and indirect effects of the European Carbon Border Adjustment Mechanism (CBAM) 

• Antton Haramboure |Organization for Economic Cooperation and Development 

 Carbon prices, emissions and international trade in sectors at risk of carbon leakage: evidence from 140 countries [Abstract] 

• Jonas Teusch | OECD

 12:00-13:30 Session 4: Carbon pricing and firm behaviour 

The effects of carbon pricing along the production network [Abstract]

• Thomas Stoerk | National Bank of Belgium & LSE 

 Realist analysis of UK ETS trading and abatement behaviour [Introduction]

• Mary Anderson | CAG Consultants 

 14:30-15:30 Policy panel: ETS Endgame – Including new sectors and removals ETSs 

• Edoardo Croci | Bocconi University 
• Sebastian Osorio | Potsdam-Institute for Climate Impact Research 
• Elena Marro | European University Institute 

 16:00-17:30 Session 5: Beyond the EU ETS: Offsets & China ETS Policy Overlap 

Willingness-to-claim voluntary carbon offsets: market evidence of revealed-preferences [Abstract]

• Tara L’Horty | Université de Lorraine 

 Interactions between emissions trading systems and other policies: insights from theory and an application to China [Abstract]

• Carolyn Fischer | World Bank 

20 June 

09:15-11:30 Session 6: Decarbonising industry and agriculture 

Steel in the EU CBAM: will scrap-resource shuffling delay the sector’s global decarbonization? [Abstract]

• Maxime Gérardin | France Stratégie 

 Market design options for integrating negative emissions into the ETS [Introduction]

• Carlotta Von Bebenburg | Oxera 

 Options to expand emissions trading to emissions from agriculture in Europe [Abstract]

• Benjamin Görlach | Ecologic Institute 

 12:00-13:30 Session 7: Legislation for carbon pricing 

The integration of negative emissions in the EU legislation [Introduction]

• Elena Bonfiglio | European Roundtable on Climate Change and Sustainable Transition 

 Enhancing climate policies through the implementation of regulated carbon markets in Brazil: reflecting on strategies for closing the policy-science loop [Introduction]

• Adriana I. B. S. L. Di Pasquale | University of Pisa 

 14:30-15:30 Guest lecture: Stopping climate change 

Paul Ekins | UCL 

 16:00-17:30 General discussion & conclusions 

17.30 Close 

Following the success of the first edition, we are delighted to announce the 2nd FSR Alumni Day. This event will offer former alumni a unique opportunity to reconnect and stay updated on the latest policy developments in fields they previously studied.

An annual event in Florence to welcome the Alumni community

Since its establishment in 2004, the FSR has been training more than 10.000 participants. In 2014, the FSR launched its first online course and since then, more than 60 online courses have been welcoming energy professionals and academics from worldwide.

To hear back from our community of Alumni and celebrate their successful paths, we designed a special event gathering participants from all our courses, course directors, instructors, and coordinators in a friendly atmosphere to offer an additional learning experience.

Another step in your professional path

You will have the chance to network while you get up to speed on the latest developments in your area of expertise. The format will include a keynote address from the European Commission, insights from your peers, working groups (details below), networking activities and a cocktail reception.

Event Details:

• Event Fee: 250€
• Registration Deadline: 6 October 2024

Additional Information:

The event will be held exclusively in a residential format, allowing for a limited number of participants. Admission will be granted on a first-come, first-served basis.

Directions to reach the venue

The EUI Badia is easily reachable by taxi from Florence centre or from Fiesole (about 20€) and from Florence Airport (about 35€).

If you prefer public transport (ticket 1,50€ to be bought in official ticket offices, machines and authorised retailers that display the Autolinee Toscane sticker): take bus line number 7 from the center, the main railway station or from Fiesole, and get off at the stop ‘San Domenico 01’ (map) From there walk to our main building, Badia Fiesolana (map).

Logistic info

Please arrange your travel and accommodation as soon as possible as Florence is very popular. Paid registration fee is non-refundable. Please note that the course fee does not cover travel and accommodation costs.

On 29 May 2024, the FSR Insights series will start looking at ‘Developments in European energy and climate policy’, the new theme that will be the focus of the series until the summer break.

Dr. Bernardo Rangoni will illustrate some of the results of his extensive research on the governance of various industries, which was recently published in a book by Oxford University Press (Experimentalist Governance: From Architectures to Outcomes). He will focus on two issues at the heart of both the electricity and gas industry – network access and tariffication – and also touch upon more recent ones, such as market manipulation and renewables. By comparing the developments within and across the two sectors, he will show what conditions can lead to the emergence and resilience of non-hierarchical governance in energy and beyond.

Max Münchmeyer and Torbjørg Jevnaker from the FSR will discuss the contribution by Dr. Rangoni before opening the floor to questions from the audience.

Keynote speaker

Bernardo Rangoni | University of York, Antwerp and EUI

Discussants

Max Münchmeyer | EUI

Torbjørg Jevnaker | Cicero, FNI and EUI

Moderators

Marzia Sesini | EUI

Nicolò Rossetto | EUI

Co-organised by the Transport Area of the Florence School of Regulation together with the European Commission’s DG MOVE, aims at discussing and evaluating holistically the current airport regulations and the interplay with other legislation as far as it affects the efficient function of the airport ecosystem.

Aviation is crucial for Europe’s mobility, connectivity, and competitiveness. With over 900 million air passengers travelling to, from, and within the European Union each year, Europe makes up a third of the global aviation market.

The liberalisation of the internal aviation market has been a major EU success in terms of enabling significant growth for the sector and delivering benefits to consumers. It has also supported the EU’s competitiveness globally. At the same time, there have also been unintended environmental impacts in terms of CO2 emissions, pollution and noise.

The Commission’s Smart and Sustainable Mobility Strategy sets the goal of developing a resilient, competitive and sustainable transport sector that can deliver affordable connectivity to all EU regions. These goals are set against the background of an aviation market that has been substantially changing in recent years with more pressing and new challenges, such as increasing capacity constraints, evolving market power, consolidation in the air services sector and the strategic goals of enhancing sustainability, digitalisation and resilience.

Efficient airport capacity management is a key component of a well-functioning aviation market. Being able to access competitively priced, sustainable and quality capacity is a necessary ingredient of a well-functioning aviation market that can deliver affordable connectivity to consumers. The access, pricing and quality of airport capacity have been traditionally governed by EU legislative pieces on the allocation of slots at airports, on ground handling services and airport charges facing airlines.

Given the Union’s strategic goals of decarbonisation, digitalisation, competition and affordable connectivity, it is only logical to take a step back and assess the current regulations affecting airports from a holistic and systemic perspective – are they functioning well? can anything be done to make airport capacity management more efficient? are the rules sufficient to enable investment and effective deployment of green and digital solutions at airports? is there any scope

for a more holistic and systemic approach to airport capacity management? can greater reliance on communication, digital solutions or AI make airport capacity management more efficient?

Despite the energy retail market having been fully open to competition, also for residential consumers, for more than fifteen years, it has proven extremely difficult to engage these energy consumers in this market. It could therefore be of value to look at alternative ways to ensure that consumers benefit from retail competition in the energy market. This FSRDebate assessed the recent Italian experience of running auctions among suppliers to allocate bundles of consumers who were still in the regulated market. These auctions resulted in significant savings with respect to the benchmark defined by the regulator.

The energy retail market has been fully open to competition (i.e. also for residential consumers) since July 1st, 2007. However, it has proven extremely difficult to engage energy consumers in this market. The switching rate of consumers is generally considered as one of the key indicators of well-functioning retail energy markets. While switching rates do not provide conclusive evidence, they have remained low – typically in the 5-6% per year – in many countries for many years after liberalisation. More recently, some Member States have witnessed an increase in the rate at which residential electricity consumers switched their suppliers. In 2021 switching rates sharply increased in many Member States, for example getting to or close to 25% in Belgium and the Netherlands, as a result of the much higher energy prices in that year, which encouraged consumers to look around for better terms, difficult though to find at that time. In 2022, switching rates decreased once again, with their levels for residential electricity consumers staying above 20% only in Belgium and Spain, while France, Greece, Slovenia, the Czech Republic, Romania, Latvia, Austria, Estonia, Croatia, and Slovakia still had switching rates at or below 10% – below 1% in Luxembourg.

Many reasons have been given for the reluctance of energy consumers to take full advantage of retail competition and shop for the best offers available on the markets, including the scepticism created by a number of retailers going out of business during the recent energy crises.

It could therefore be of value to look at alternative ways to ensure that consumers benefit from retail competition in the energy market. The recent experience of ARERA, the Italian Regulatory Authority for Energy, Networks and Environment, could provide a useful reference. Concerned with the slow pace at which electricity consumers were leaving the regulated markets and opting for alternative offers available in the free market, ARERA organised a set of auctions through which bundles of consumers were allocated to competing suppliers which bid discounts with respect to the cost-reflective benchmark defined by the regulator, which they offered to apply for a period of three years.

The results of the last auctions, for residential customers, which were held at the beginning of the year imply substantial savings for consumers who are still in the regulated market, in the order of €130 per connection point per year1. Such large savings raise interesting questions regarding the expected future behaviour of consumers as assessed by suppliers.

In this context, the debate will assess whether the Italian experience could serve as a reference for other countries also characterised by a low degree of energy consumers’ engagement and what the results of the Italian auctions could suggest in terms of the expected future behaviour of consumers.

Programme 

Introduction to the Debate and Opening Presentations

14.00 – 14.05    Introduction to the Debate

Alberto Pototschnig | Florence School of Regulation

14.05 – 14.20    The scope, design and results of the Italian retail auctions

Massimo Ricci | Director, Energy Division, ARERA
Guido Cervigni | Managing Director, DFC Economics

14.20 – 14.30    Empowering energy consumers

Tadhg O’Briain | Deputy Head of Unit, Consumers, Local Initiatives, Just Transition, European Commission 

Panel Discussion: Introductory Remarks, Polls and Comments

Moderator:     Ilaria Conti | Florence School of Regulation

14.30 – 14.50    Introductory remarks from the panellists

Elsa Água | Member, Customers and Retail Markets (CRM) Working group, CEER

Pierpaola Pietrantozzi | General Secretary, Adiconsum (Italian Consumers Protection Association)

Rita Mota | Chair of Retail Market Design Working Group, Eurelectric 

Elisa Rondella | Vice-President, AIGET

14.50 – 14.55    Polls

14.55 – 15.20    Comments on the polls outcome and Q&A from the audience

Panellists

15.20 – 15.30 Concluding remarks

Ilaria Conti | Florence School of Regulation

Alberto Pototschnig | Florence School of Regulation

This is the third and last installment for the quarterly FSR Insights on ‘Innovation in Energy’- Watch the recording 

The episode will focus on the pivotal role of innovation in driving decarbonization efforts and navigating the dynamic shifts in the built environment.

The building sector plays a crucial role in achieving European energy and CO₂ reduction goals, accounting for over 40% of energy consumption and 36% of GHG emissions. Energy building renovation is key to reaching these targets, offering cost-effective emission mitigation potential and numerous societal and economic benefits. However, despite existing policies, the current renovation rate falls short of what would be socially optimal, necessitating a reimagining of delivery mechanisms.

In this episode, titled “Exploring Business Models for Urban Innovation” we will delve into the transformative potential of one-stop-shop (OSS) innovative business models in the energy renovation sector and how they can revolutionize energy home renovation, contributing significantly to European climate and energy goals.

Our Keynote Speaker will present her latest research on “Boosting energy home renovation through innovative business models: ONE-STOP-SHOP solutions assessment“, guiding us into the potential of OSS initiatives to overcome barriers and accelerate renovation efforts.  Alongside our discussants and audience, she will engage in a lively discussion on the topic, exploring the implications and opportunities presented by these innovative approaches.

FSR Insights is an online series hosted by Marzia Sesini and Nicolò Rossetto (FSR).

Keynote speaker

Annamaria Bagaini | Bocconi University

Discussants

Daniele Stampatori | FSR and Comillas Pontifical University

Isabel Azevedo | INEGI

The upcoming FSR Talks session will explore the role of the EU in energy transition pathways in the Global South.

Speakers will discuss the EU’s strategic initiatives in this regard, the implementation pathways and impacts they are intended to have, and the importance of gender aspects in energy transition. The session will also examine the interactions between the global north and south and how efforts can be accelerated to realize a shared energy transition vision.

Background

The global energy landscape is undergoing a profound transformation, driven by the need to address climate change and achieve sustainable development goals. As countries strive to decarbonize their economies and transition towards renewable energy sources, the role of the European Union (EU) in shaping energy transition pathways in the Global South has become increasingly significant.

The EU has been at the forefront of efforts to combat climate change and promote renewable energy. Through its ambitious policies and initiatives, such as the European Green Deal, Cross Border Adjustment Mechanism (CBAM), etc the EU has set clear targets for reducing greenhouse gas emissions and increasing the share of renewable energy in its energy mix. These efforts have not only transformed the EU’s own energy sector but have also had a significant impact on global energy markets and policies.

In the Global South, countries are faced with the dual challenge of meeting growing energy demand while also transitioning to a more sustainable energy system. The EU, with its experience and expertise in energy transition, can play a crucial role in supporting these countries in their efforts. This includes providing technical assistance, sharing best practices, and facilitating access to finance and technology.

The FSR Talks series monthly invites policy-makers and academics to talk about relevant topics related to energy and climate regulation addressed to a global audience. It is co-hosted by Prof. Lucila de Almeida representing the European University Institute/Robert Schuman Center for Advanced Studies/Florence School of Regulation ((EUI/RSCAS/FSR), Carol Awuor from the African School of Regulation (ASR), and Swetha Ravi Kumar from FSR Global based in India.

Speakers

Delphine Brissonneau | Senior Program Manager at the EU Delegation in India

Prof. Ummu Salma Bava | Jawaharlal Nehru University

Invited Discussant

Dr. Parul Bakshi | Research Fellow, FSR Global

Co-Hosts

Swetha Ravi Kumar | Executive Director, FSR Global

Prof. Lucila Almeida | Part-time Professor, EUI/RSCAS/FSR

Carol Awuor Ofafa | Research Associate, ASR – African School of Regulation

Organised by Transport Area of the Florence School of Regulation (FSR-Transport), RSCAS, European University Institute in collaboration with European Commission – Directorate-General for Competition

Background

Rail transport and Inland Waterway are crucial for achieving the objectives outlined in the Green Deal agenda. These goals include a 55% reduction in greenhouse gases by 2030 and attaining climate neutrality by 2050. The Railway Guidelines have been playing a fundamental role within this context, enabling support for the transition to more sustainable transport modes. They aimed at endorsing Member States investments necessary for the completion of the single transport area, the green and the digital transitions (together with other State aid Guidelines).

Since their adoption in 2008, around 75 measures were found compatible with the Treaty based on the Railway Guidelines, particularly concerning State aid for the coordination of transport, with a total budget of over EUR 9 billion aimed at encouraging a modal shift from road to rail freight transport. The main objective of the Railway Guidelines upon their adoption was to accompany the sectorial policy towards full liberalisation of the rail sector and the completion of a Single European rail market in which full interoperability is ensured. Further, the Railway Guidelines were established with the aim of facilitating the restructuring of a sector marked by significant indebtedness.

In 2020, however, the fitness check of these guidelines showed that they are outdated. EU policy priorities in the context of the Green Deal put more emphasis on a modal shift to modes of transport which are less polluting than roads, such as rail and inland waterways. This modal shift should contribute towards meeting the emissions reduction target set for 2050. Parallel to this, rail markets have now been fully liberalised following the adoption and implementation of the 4th Railway Package (which was not the case when the 2008 Railway Guidelines were adopted). Hence, the Commission launched the revision of the State aid rules applicable to rail transport to bring them into complete alignment with the Union’s key priorities. It aims to support the shift towards more sustainable transportation modes and implement additional procedural facilitations for aid measures in the field of greener land and intermodal transport via block exemptions. The Commission also aims to protect the level playing field within the railway market. In pursuit of these goals, the European Commission is also considering adopting block exemption regulations in the field of Land transport, in line with Article 93 of the Treaty.

The Forum, co-organised by the Transport Area of the Florence School of Regulation together with the European Commission’s DG COMP, will tackle the following questions:

(1) Operating aid: How do we support modal shifts, both in passenger and freight, new services, new connections, and innovation in transport organisations?

(2) Investment aid for infrastructure: How to promote new infrastructure, in particular supporting service facilities (multimodal terminals, terminals in ports, maintenance facilities and beyond), addressing both the funding gap and maximising available resources while ensuring proportionality?

(3) Investment aid for mobile equipment: How do we support access to mobile equipment, the modernisation and greening of such equipment, and interoperability while ensuring a level playing field?

Please kindly note that participation at this Forum is by invitation only.

Urban nodes along the trans-european transport network: how can stakeholders work together?

The 13th Florence Intermodal Forum, organised by the Transport Area of the Florence School of Regulation in collaboration with the European Commission – DG MOVE, will gather European and national- regulators, public transport operators, industry representatives and academics for a discussion on the challenges and enablers when discussing urban nodes.

Background

As stated in the 2021 EU urban mobility framework, Europe is one of the most urbanised regions in the world, with a huge variety of cities that are important hubs of economic and social activity. As main connection points, urban nodes (cities and their surroundings) are key components of the trans-European transport network (TEN-T), the backbone of the Single European Transport Area, and essential for a well-functioning single market.

Congested rail and road networks, trains, trams, buses and metros can face constraints that hinder not only the flow of traffic within the urban node but also along the entire TEN-T network.

More suitable infrastructures are needed to facilitate traffic flows within, around and through urban nodes. Urban nodes should make the first and last miles of journeys or transit travel smoother for both passengers (and freight). Multimodal passenger hubs should serve as a main gateway between the urban nodes and the TEN-T network. These should be complemented by an increased sustainable urban mobility offer, building upon a strong public transport system. This means, for example, multimodal hubs with stations/stops that are effectively interconnected with urban rail, metro, tram, bus, coaches, shared mobility services and better and bigger park and ride facilities, and that are better equipped with appropriate bike parks and publicly accessible recharging and refuelling points for low- and zero-emission vehicles.

The TEN-T Regulation has been revised in that regard. It includes an extended list of urban nodes (431) and for the first time sets out new functional requirements for them.

What are the specific issues to be addressed?

Many stakeholders in these urban nodes are newcomers in the TEN-T world. This means that they will have to be integrated to work on a functioning network. Therefore, urban nodes are also a means to establish and reinforce the links between key stakeholders and the specific transport policy roles: national ministries in charge of long-distance transport, cities, local and regional authorities in charge of urban mobility and of transport, public transport operators, rail operators, logistics companies, urban planners, and others more.

The challenge is that work at the level of urban nodes is just about to start. There are no common coordination principles to implement the objectives of the TEN-T policy for urban nodes so far, not to mention the fact that there is often a misunderstanding of what urban nodes are: are they entities within cities, cities themselves, so-called “functional cities”, metropolitan areas or something else? Facilitating the establishment of a local set-up that allows for coordination/interaction between these stakeholders is therefore vital, not to mention the fact that the definition of an urban node and its governance are of course closely linked.

This 13th Intermodal Forum will discuss the question of the coordination of urban nodes: What would be appropriate, basic and commonly agreed mechanisms? Who could/should be in charge of coordinating and representing the stakeholders of an urban node? Is there a one-size-fits-all structure or at least some common principles? What options could be envisaged?

“Implementing Network Codes” (INC) is a collaborative and interdisciplinary research project focusing on the implementation of EU electricity market laws.

About the INC project

INC examines the rulemaking process of market and system operation guidelines and their underlying terms and conditions or methodologies (TCMs) to analyse the impact on the integration of the European electricity market.

The 4-year project runs until 2024, and is funded by the Research Council of Norway, with co-funding from Norwegian stakeholders. It is led by the Fridtjof Nansen Institute, and an international team of scholars from political science, law and economics work in close collaboration with industry experts, user partners and other relevant stakeholders.

Purpose:

Showcase results from the research project Implementing Network Codes 1 and get feedback to ongoing research; link up to discussions of ongoing/prospective discussions on the internal electricity market from perspectives of law, politics, and markets.

Session 1: Applying and enforcing the TCMs

The session will focus on what happens after TCM adoption by ACER, or agreement among NRAs in a region, including TCM adoption via individual decisions by each NRA, and the process for adopting TCMs within the EEA EFTA countries. The session will also showcase examples from regional cooperation in the Nordic and Core regions, as well as from the European level.

Session 2: After EMD: what next for network codes and TCMs?

A major development that emerged from the previous legislative reform (Clean Energy Package) was the code on demand response and a new European DSO entity. The ongoing electricity market reform (EMD) could also have implications for prospective work on network codes and guidelines (re-starting CACM revision), and the terms, conditions and methodologies (TCMs). What can we expect from these processes in the aftermath of EMD adoption? Given the EU’s 2050 climate ambitions, the electricity sector would need to decarbonise by 2040. How might this affect the processes for developing new, and revising existing, network codes, guidelines and TCMs?

Session 3: An offshore market design: How seaworthy are network codes and TCMs?

In principle, the EU electricity market regulation, including subsidiary rules like network codes, guidelines and TCMs would apply also to an offshore electricity market. However, this could create new problems, as seen with the discussion on offshore bidding zones in the ongoing EMD negotiations. The regulation of an offshore electricity network could potentially form part of a structural reform of the electricity market design in the next EU electoral cycle. This session will focus on the regulation of an offshore electricity market, and the application of NC/GL/TCMs offshore. The discussion could zoom in on the North Sea basin, where there is also collaboration with the UK and Norway, for illustration.

Session 4: Evolving role of ACER through crises and transition

What changes have materialised over time as regards to the role of ACER – formally and informally – within and beyond the regulation of the EU electricity market? What impact has the energy crisis had on the role and work of ACER? What are the prospects moving forward in a world of heightened geopolitics and energy transition? This session would discuss how ACER is getting a larger role as regards the energy transition agenda (cf. EP proposal to have ACER assess national flexibility plans) and the subsidiarity issues a greater role of ACER might entail. This session could link up to the discussion of a potential structural reform of the electricity market design in the next electoral cycle in the EU (2024-2029). While several tasks have been placed at regional and European levels, enforcement remains very much in national hands. The session could discuss whether more cooperation at regional and European level might be needed, e.g., moving beyond monitoring, capacity-building, and identification of best practices. Enhancing regulatory cooperation at EU level, including via ACER, also raises the issue of participation of non-EU NRAs as well as issues of accountability.