The next edition of the FSR Energy Union Law Area’s popular biannual update on recent and pending energy case law at the Court of Justice of the European Union (CJEU) will take place online on Friday, 3 December 2021 from 14.30-16.00 CET.

We are pleased to confirm that we will once again be joined by Dr Adrien de Hauteclocque, Head of Cabinet of the President of the General Court, who will provide attendees with an insight into the most important energy law developments at the General Court and the Court of Justice.

The cases we will address include:

C-718/18 – Commission v Germany

C-848/19 P – Germany v Poland

T-300/19 – Achema and Lifosa v Commission

C-57/19 P – Commission v Tempus energy and Tempus Energy Technology

T-167/19 – Tempus Energy Germany and T Energy Sweden v Commission

An overview of cases currently pending before the Court will also be provided.

 

Programme

Introduction

Leigh Hancher, Florence School of Regulation

C-718/18 – Commission v Germany

Adrien de Hauteclocque, Head of Cabinet of the President of the General Court

C-848/19 P – Germany v Poland

Max Münchmeyer, PhD Researcher, European University Institute

T-300/19 – Achema and Lifosa v Commission

C-57/19 P – Commission v Tempus energy and Tempus Energy Technology

T-167/19 – Tempus Energy Germany and T Energy Sweden v Commission

Leigh Hancher, Florence School of Regulation

An Overview of Pending Cases

Adrien de Hauteclocque, Head of Cabinet of the President of the General Court

Questions and Discussion

 

More on ECJ Case Law

If you want to catch up on earlier CJEU developments in the year, you can watch the recordings of our sessions from April 2020 here, November 2020 here and June 2021 here.

Energy Union Law & Policy

FSR Energy Union Law area provides a forum for critical discussion and independent analysis of the developments in EU energy law and policy. Our activities are aimed at professionals from national energy regulatory authorities, European and international institutions, energy-focused law firms, consultancies and energy utility companies.

In December the European Commission will table the long-awaited legislative package that will provide the regulatory and legal framework for the future regulation and support of the EU’s emerging hydrogen market. This will cover issues such as:

• Which regulatory model – unbundling, TPA, tariff principles, should apply to the future hydrogen grid, and when?
• What is the appropriate definition for low-carbon hydrogen – which should qualify for inclusion in the EU’s future low and zero-carbon market?
• How should guarantees of origin and certification apply to low-carbon hydrogen?
• How to finance a hydrogen grid that will need to be built to excess capacity in the beginning?
• Should gas TSOs be the sole operators of the future hydrogen grid?
• How to regulate the gas and hydrogen RABs – joint? separate?

Join the next FSR debate to discuss these issues with our panel.

Agenda

Keynote address  Catharina Sikow-Magny, Director, DG ENER, EC

Round table discussion with:

François-Régis Mouton, Director IOGP Europe

Jan Ingwersen, Director-General ENTSOG

Jorgo Chatzimarkakis, CEO Hydrogen Europe

Nicola Rega, Energy director, CEFIC

#FSRDebates

The focus of this debate series is on policy issues to be discussed by a panel of experts. Learn more about the FSR series.

While not trying to pre-empt or anticipate the conclusions which ACER will reach in its assessment of the existing electricity market design, this Debate will aim at discussing the dimensions of the current market design which might need to be enhanced or supplemented to improve its performance in the context of the energy transition.

Background

“EU gas and electricity prices have increased rapidly and reached unprecedented levels. Gas prices in early October were 400% more expensive than in April 2021, driven significantly by global supply and demand dynamics. Electricity prices have increased by 200% over the same period, driven mainly by the gas prices”[1].

There seem to be many causes for the sharp increase in world gas prices, but the main ones appear to be a faster economic recovery after the pandemic, boosting a strong growth in demand in many regions, and a tight global LNG market.

While being the largest buyer of internationally traded gas (accounting for almost half of the volumes), Europe has little leverage on the global LNG market, where it is often a price taker.

Instead, electricity prices in Europe reflect demand and supply conditions in the Continent. These are clearly affected by international fuel prices, but also by other, more local factors, such as weather conditions and renewables-based electricity generation, as well as the market design.

A number of EU Member States have taken or are considering taking national uncoordinated actions to mitigate the impact of higher energy prices on consumers. Some of these measures are likely to affect – and possibly distort – cross-border trading. To tackle rising energy prices, while preventing damage to the Internal Energy Market, the European Commission has proposed a “toolbox for action and support”[2], outlining a set of measures which the Commission itself and Member States could adopt to deal with the current high-price situation. Many of these measures are aimed at mitigating the impact of higher energy prices on industry, businesses and households, especially the vulnerable ones. However, and interestingly, the Commission also intends to “task ACER to study the benefits and drawbacks of the existing electricity market design and propose recommendations for assessment by the Commission by April 2022”[3].

At the same time, ACER has already shared some considerations on the current electricity market design, including on the evergreen debate on pay-as-bid vs. pay-as-clear market models: “any future market design needs to be able to (a) remunerate technologies above their marginal costs, sometimes quite significantly so, and (b) incentivise the alleviation or smoothing of volatility in the market. The ‘pay-as-clear’ model allows for both of these elements”[4].

Join us to discuss energy prices and market design in the context of the energy transition.

A Q&A with the audience will follow.

 

Draft Programme

Introduction to the Debate and Opening Presentations

14.00 – 14.05   Introduction to the Debate

Alberto Pototschnig | Florence School of Regulation

14.05 – 14.15   The academic perspective

Carlos Batlle | Florence School of Regulation

14.15 – 14.25   ACER initial assessment of the causes of the recent increases in electricity prices

Rafael Muruais-Garcia | ACER

Panel Discussion: Introductory Remarks, Polls and Comments

Moderator: Alberto Pototschnig | Florence School of Regulation

14.25 – 14.50   Introductory remarks from the panellists

Yvan Hachez |Vice-Chair of Market & Investment Committee, Eurelectric
Inger Kristin Holm | Electricity Working Party, IFIEC
Verónica Sabau | Secretary General, Spanish Association of Independent Retailers  (TBC)

14.50 – 14.55   Polls

14.55 – 15.15   Comments on the outcome of the poll and Q&A from the audience
Panellists

15.20 – 15.30   Concluding remarks
Leigh Hancher | Florence School of Regulation and Tilburg University
Alberto Pototschnig | Florence School of Regulation

 

 

[1] ACER, High Energy Prices, October 2021.

[2] Communication from the Commission to the European Parliament, the European Council, the Council, the European Economic and Social Committee and the Committee of the Regions, Tackling rising energy prices: a toolbox for action and support, Brussels 13.10.2021, COM(2021) 660 final.

[3] Ibid, Section 3.2.1, page 15.

[4] ACER, High Energy Prices, October 2021, page 12.

Inspired by the recently published book “A Modern Guide to the Digitalization of Infrastructure”, this webinar will provide a comprehensive overview of how the digitalisation process affects infrastructure-based industries, including telecommunications, transport, energy, water and postal services.

The contributors of this book are the experts of DIGEX, a working group (think tank), Digitalising Infrastructure Group of Experts, established at the Florence School of Regulation.

At the webinar, DIGEX experts will share their views on how digitalisation is disrupting traditional infrastructure managers in terms of capacity management and traffic flows. They will also discuss key topics including data governance, data sharing, digital platforms, and sector convergence in relation to a specific type of infrastructure they are working on.

AGENDA

17:00 – 17:10 | Welcome, Introduction of the book

Prof. Juan Montero, Professor at EUI/ UNED; Editor of the book ‘A Modern Guide to the Digitalization of Infrastructure’

17:10-18:00 | Contribution from the authors

• Technology: Prof. Günter Knieps, Professor of Economics at the University of Freiburg

• Telecoms: Dr. Volker Stocker, Head of Research Group/Postdoctoral Researcher, The German Internet Institute / Technische Universität Berlin

• Maritime: Dr. Anastasia Tsvetkova, Docent, a postdoc researcher at the Laboratory of Industrial Management, Åbo Akademi University

• Aviation: Lorenzo Casullo, Associate Director, Ricardo

• Electricity: Nicolò Rossetto, Research Associate, Florence School of Regulation

• Water: Brenda Espinosa Apráez, PhD Researcher, Tilburg Law and Economic Center – Department of Law, Technology, Markets & Society, Tilburg University

18:00 – 18:20 | Q&A Session moderated by Prof. Juan Montero, Professor at EUI/ UNED; Editor of the book ‘A Modern Guide to the Digitalization of Infrastructure’

18:20 – 18:30 | Concluding remarks

Prof. Matthias Finger, Director of FSR-Transport, EUI; Editor of the book ‘A Modern Guide to the Digitalization of Infrastructure’

18:30 | Webinar ends

FSR Climate is pleased to announce its 7^th Annual Conference on the Economic Assessment of European Climate Policies to take place online on Monday 29 and Tuesday 30 November 2021 from 10:00 to 16:10 CET.

The conference will cover the main climate-related existing policies at EU, national, international and sub-national levels. It will include three sessions on Energy Efficiency and Renewables, Environmental taxation, and Emissions trading. In addition, the conference will comprise a keynote speech from Estelle Cantillon, and a policy session focused on carbon market integration.

Due to the travel and public gathering restrictions taken to limit the spread of COVID-19, the FSR Climate Annual Conference will be held online through Zoom Webinar.

 

Chair: Simone BORGHESI, FSR Climate – European University Institute

 

Monday 29 November

10:00-10:05 – Welcome & introduction

• Simone BORGHESI, FSR Climate – European University Institute

10:05-12:05 – Session on Emissions trading

• The Carbon Market Challenge: Preventing Abuse Through Effective Governance, Regina BETZ, Zurich University of Applied Sciences – ZHAW [abstract] [slides]
• ‪Coase and Cap-and-Trade: Evidence on the Independence Property from the European Carbon Market, Aleksandar ZAKLAN, DIW Berlin [paper] [slides]
• The European Emission Trading System, Overlapping Climate Policies & the Fit for 55 Package, Kenneth BRUNINX, University of Leuven [abstract] [slides]
• Investment Incentives in Tradable Emissions Markets with Price Floors, Frans DE VRIES, University of Aberdeen  Business School [abstract] [slides]

14:00-16:00 – Session on Environmental taxation

• Environmental Taxation in the 2020s: Promises and Barriers, Xavier LABANDEIRA, University of Vigo [abstract] [slides]
• Voting and Information: Evidence from a Randomized Controlled Trial, Stefano CARATTINI, Georgia State University [abstract]
• Impacts of Carbon Pricing on Electricity Prices – The Case of the EU ETS, Mirjam KOSCH, PIK Potsdam [abstract] [slides]
• The Best Argument for Carbon pricing is not Economic Efficiency, but Rather that it Fosters Cooperation, Axel OCKENFELS, University of Cologne [abstract]

 

Tuesday 30 November

10:00-11:00 – Keynote Speech

• Emission Markets as Financial Markets, Estelle CANTILLON, Université Libre de Bruxelles and Toulouse School of Economics [abstract] [slides]

11:10-12:40 – Policy Session “Deepening international cooperation on emissions trading: possible reforms for integration”

Chaired by Jos DELBEKE, School of Transnational Governance – European University Institute

• Stefano VERDE, FSR Climate – European University Institute [slides]
• Michael PAHLE, PIK Potsdam [slides]
• Susanne DRÖGE, SWP Berlin
• Artur RUNGE-METZGER, Former Director at the European Commission

This policy session is organised under the framework of the project LIFE DICET – Deepening International Cooperation on Emissions Trading – cofinanced by the EU LIFE Programme of the European Commission.

14:00-16:00 – Session on Energy efficiency and renewables

• Capitalization of the French Energy Performance Certificate: Is There a Label Premium?, Anna CRETI, Université Paris Dauphine – PSL [abstract] [slides]
• Materials Scarcity and Recycling for the Energy Transition, Francesco RICCI, Université de Montpellier and CEE-M [abstract] [slides]
• Integrating Energy Needs for Adaptation in Mitigation Pathways, Enrica DE CIAN, Ca’ Foscari Unversity of Venice and CMCC [abstract] [slides]
• Data Centres and Energy Demand: Lessons for Loads in Net Zero, Michael POLLITT, University of Cambridge [abstract] [slides]

16:00-16:10 – Concluding remarks

• Simone BORGHESI, FSR Climate – European University Institute

The FSR Climate Annual Conference 2021 is organised with the support of EAERE.

Bio of the Keynote Speaker:

Estelle Cantillon is a Professor of economics at the Université Libre de Bruxelles, an associate member at the Toulouse School of Economics, a research fellow at CEPR (London) and an elected member of the Royal Academy of Arts and Sciences of Belgium. Her research lies at the boundary between market design and industrial organization. Her current research focuses on carbon emissions markets, the design of electricity wholesale markets and climate transition policies. She has published on auctions, procurement, competition between exchanges, and assignment problems.

She currently sits on the Board of Regents of the National Bank of Belgium, on the Economics Council of OXERA and is a member of the steering committee of Re-Bel (Rethinking Belgium) and the scientific council of the Brussels Region Institute for Statistics. At ULB, she is the academic director of the Sustainable Development teaching initiative.

Estelle holds a PhD in Economics from Harvard and has held faculty appointments at Yale University, Harvard Business School and the Harvard Kennedy School of Government.

 

Past editions of the FSR Climate Annual Conference:

FSR Climate Annual Conference 2020

FSR Climate Annual Conference 2019

FSR Climate Annual Conference 2018

FSR Climate Annual Conference 2017

FSR Climate Annual Conference 2016

FSR Climate Annual Conference 2015

Climate change litigation has gained an unprecedented growth in importance in the last five years, which high visibility reached by recent judgments such as Milieudefensie v. Shell case. Globally, the cumulative number of climate change-related cases has more than doubled since 2015. Just over 800 cases were filed between 1986 and 2014, while over 1,000 cases have been brought in the last six years. Who are the key players bringing these disputes into court? Who are the other parties who have figured as defendants – e.g., governments, energy companies? How different are the strategic litigation of these cases? And how courts around have decided them so far?

The FSR Insights of October has the honour of hosting the two leading legal scholars to speak about their solid research on climate change litigation from a quantitative perspective: Prof. dr. Michael Gerrard, Andrew Sabin Professor and Director of the Sabin Center for Climate Change Law at Columbia University, and Dr. Joana Setzer, Assistant Professorial Research Fellow at the Grantham Research Institute on Climate Change and the Environment, London School of Economics. Their research centers have gained a worldwide knowing reputation for monitoring all the climate change litigations in numbers and, by doing so, identifying the strengths and weaknesses of the judicialization of the most pressing issue of current times – climate change.

Before joining the event, watch our pills:

Do you have any questions for our speakers?

You can now submit them in advance!

Hosts

Leonardo Meeus, FSR

Lucila de Almeida, FSR

 

Keynote speakers

Prof. Michael Gerrard, Andrew Sabin Professor and Director of the Sabin Center for Climate Change Law at Columbia University

Joana Setzer, Assistant Professorial Research Fellow at the Grantham Research Institute on Climate Change and the Environment, London School of Economics

 

Discussants

Mario Pagano, EUI

Lucila de Almeida, FSR

 Watch the event recording:

References

[1] Joana Setzer and Catherine Higham, Global Trends in Climate Change Litigation: 2021 snapshot, July 2021

FSR Debates series

 

Based on an unwritten duty of care in Dutch tort law, a Dutch Court  has in May 2021  recognized that the oil and gas company Shell has an “obligation of result” to reduce CO₂ emissions resulting from the Shell group’s activities, and a “best-efforts obligation” to reduce emissions generated by its business relations, including suppliers and end-users.  While Shell was not yet found to be in violation of its reduction obligation, the Court held there was danger of “imminent breach” because it considered Shell’s climate policies insufficient. The court clarified that Shell’s responsibility exists independently of states’ abilities and/or willingness to fulfil their own human rights obligations.  Therefore, state action – or here the lack thereof did  not detract from Shell’s standalone obligations. Relying on IPCC reports and the Paris Agreement, the Dutch court observed a “widely endorsed consensus” that emissions must be reduced by net 45% by 2030 and to net zero by 2050, and this consensus applies globally and also to non-state actors.  Therefore, Shell – while not solely responsible – may be expected to do its part to achieve these so-called “reduction pathways”.

In the wake of recent rulings across Europe and globally, requiring governments to lower emissions, this latest decision marks the first time any court in the world has imposed a duty on an energy company to do its share to prevent dangerous climate change. The Dutch Court’s decision against Shell effectively extends to a private entity the principles established by the same court in 2015 in Urgenda – the first ever ruling ordering a government to set more ambitious climate target. Urgenda reverberated in significant climate rulings around the world, including Ireland, France, Germany and Belgium. On the same day as the decision against Shell, the Australian Federal Court recognized a governmental obligation to ensure children are not harmed by future coal projects. This decision was the first in the world to impose a direct duty of care on a government official to protect young people from the future impact of climate change.

The Shell decision’s wider implications within the broader momentum for climate change litigation and increasing judicial scrutiny over corporate behavior have already attracted commentary. But what are the implications for this type of ‘duty of care’ or ‘do no harm’ approach by the courts for energy regulators – should they too share a duty to prevent dangerous climate change? Do regulators too have standalone obligations – irrespective of what national governmental authorities do or do not do? How can energy regulators balance potentially competing concerns – for example to ensure climate change targets are reached while at the same time guaranteeing security of supply?

 

Draft Programme

Introduction to the Debate and Opening Presentations

14.00 – 14.05   Introduction to the Debate

14.05 – 14.15  The Dutch ruling in the Shell case and its potential implications for regulatory authorities | Leigh   Hancher, Florence School of Regulation

14.15 – 14.25   The Norwegian Supreme Court ruling on Norwegian oil and gas drilling and the ECHR follow up: Prof dr Henrik Bjornebye, University of Oslo and BAHR

Panel Discussion: Introductory Remarks, Polls and Comments

Moderator: Alberto Pototschnig | Florence School of Regulation

14.25 – 14.50   Introductory remarks from the panellists

Zsuzsanna Pató, RAP;

Jorge Vasconcelos, FSR;

Wil Webster, OGUK.

14.50 – 14.55   Polls

14.55 – 15.15   Comments on the outcome of the polls and Q&A from the audience

Panellists

15.20 – 15.30   Concluding remarks

Leigh Hancher | Florence School of Regulation and Tilburg University
Alberto Pototschnig | Florence School of Regulation

Since the last 3 years, Electric vehicles are booming around the world. In France 16% of the cars sold are Batteries Electric Cars and this situation raises new questions and requires exploring the economic consequences of this rapid diffusion for public policy, network developments and tariffs design.

This event organised by the International Association for Energy Economics and the Florence School of Regulation represents an opportunity to review Electromobility field experiments (By W. Kempton), Prospective Scenarios for 2030-2050 (by R. Lauvergne), Tariff Design for EVs (I. Freitas Gomes) and motorways electrification (Pierre de Firmas).

Read more

Moderators:

Yannick Perez, LGI- CentraleSupélec – University Paris-Saclay

Eric Hittinger, Golisano Institute for Sustainability at Rochester Institute of Technology

Speakers:

Willett Kempton (Center for Carbon-free Power Integration/ College of Earth, Ocean, and Environment/ University of Delaware)

Icaro Freitas Gomes (CentraleSupélec)

Remi Lauvergne (RTE / CentraleSupélec)

Pierre de Firmas (Enedis)

The FSR Water & Waste and RENEL Chair from Lorraine University are co-organising an hybrid seminar on Thursday, October 28^th 2021 to present and discuss cases of innovative approaches to the management, regulation and governance of natural resources.

Natural resources (including forests, watersheds, oceans, air, fauna and flora) as well as material resources (non-metallic minerals, biomass, fossil fuels, and metals) produce benefits and services on which human existence depends and are also critical to livelihoods, economic growth, development and well-being. However, human activities are putting unsustainable pressure on these resources, and current trends in biodiversity and ecosystem loss are believed to threaten 80 per cent of the Sustainable Development Goals (SDGs) targets related to poverty, hunger, health, water, cities, climate, oceans and land. Under current population and growth trends, the 2030 Water Resources Group predicts global water demand will exceed available supply by 40 percent by 2030. The demand and use of material resources have been growing over the past century, fuelled by economic and population growth, urbanisation and societal changes. From 1990 to 2017, material use has more than doubled, and is projected to double again by 2060 (OECD, 2019). As a result, pressure on natural resources continues to grow, bringing negative impacts in terms of pollution, ecosystem degradation, biodiversity loss and climate change. The complex policy issues and difficult choices regarding the management, conservation, and use of natural resources necessitate comprehensive innovative approaches to rejuvenate the management, regulation and governance of natural resources.

 

Download the final programme

 

Please note that this event will take place in Florence (by invitation only) and online (open to everyone upon registration).

The seminar is organised in partnership with:

FSR Policy Debate

The European Commission’s ‘Fit for 55’ package probably represents the most ambitious set of legislative proposals ever tabled in the energy and climate change space.

They include the revision of the ETS Directive, the Effort-Sharing Regulation, a new Carbon-Border Tax, a review of the Renewable Energy, Energy Efficiency and Energy Tax Directives, and new initiatives on maritime and air transport.

Industry, as well as the co-legislators, need to understand not only the details of each individual proposal, but equally how they interact – what will be the cumulative effect of the different measures tabled on citizens and industry.

This is far from a simple task. This event seeks to cast some light on this question, and identify where will be the key points of discussion and disagreement in negotiating the package. Together with our panel, we will try to address the question: ‘what do we expect to be the final compromise?’

To stimulate debate Christopher Jones and Andris Piebalgs have drafted an article. Download here

Watch:

 

 

 

#FSRDebates

The focus of this debate series is on policy issues to be discussed by a panel of experts. Learn more about the FSR series.

This FSR talk aims at discussing the purposes, standards, and effects of OECD reports that have assessed energy regulatory agencies in Latin America based on the OECD Performance Assessment Framework for Economic Regulators.

The Talk will focus on three OECD reports on Peru (2019) and Mexico (2017), and Brazil (to be published in October 2021).

What is the purpose of the OECD reports? What are the indicators used by the assessment? What are the effects of these reports on the governance of agencies so far?

When they are created, regulatory agencies are legally entrusted with a specific mission, inserted into a pre-existing, albeit dynamic, institutional setup. Therefore, what they are expected to deliver, as well as the social and institutional context where they will interact and deliver, is known. For optimal regulatory delivery, the governance of regulators is crucial to ensure that regulatory decisions are made on an objective, impartial and consistent basis.

The OECD has developed and released a series of reports assessing the governance of energy regulatory authorities worldwide. These reports apply the OECD Performance Assessment Framework for Economic Regulators to evaluate internal and external governance agencies. The review discusses achievements and good practices, analyses the key drivers of its performance, and proposes an integrated reform package to help the regulator prepare for the future. This is the reason why the OECD reports have gained attention and relevance among the regulatory authorities.

This FSR Talk is hosting the OECD Policy Analyst, Anna Pietikainen, to discuss with our FSR experts three OECD reports on Latin America: Peru (2019) and Mexico (2017), and Brazil (to be published in October 2021). What is the purpose of the OECD reports? What are the indicators used by the assessment? What has been the effects of these reports on the governance of agencies so far?

 

Guest speaker

Anna Pietikainen – OECD

Discussants

Jorge Vasconcelos – FSR

Lucila de Almeida – FSR

Host

Jean-Michel Glachant – Director FSR

 

#FSRTalks

Live interviews with experts from the wider network of the school to showcase and discuss a recent work (a book just published, interesting study, innovative project) in a light and interactive way.

Hosts: Prof. Jean-Michel Glachant, Ilaria Conti, Swetha Baghwat