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Legal dilemma in trade solved with transition period |
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Wednesday, 25 June 2008 |
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All current proposals from both the European
Commission and the Parliament regarding restrictions for trade of renewable
energy are in breach with EU legislation.
This is the conclusion RECS
International draws from a detailed legal study. RECS International proposes a
pragmatic solution that will prevent lengthy legal procedures. Through a step
wise approach the EU trade should be liberalised, reaching a cost-efficient internal
market for renewable energy by 2020. Free cross border trade is a key aspect of
the European Community and of the EC Treaty. In an increasingly liberalised
electricity market, any restrictions to trade of renewable energy and Guarantee
of Origins (GOs) on the basis of the geographical origin of these products are
to be valued as breaches of primary EU laws and the Case Law of the ECJ.
Therefore, the proposals from the Commission and the amendments proposed by
parliamentary 'rapporteur' Claude Turmes cannot be justified. RECS
International proposes a stepwise opening of the renewable market towards an opening
of 80% in 2020. A stepwise opening of the market implies some market barriers
in the transition period up to 2020. RECS International proposes to implement
barriers only on the export side rather than barriers on the import side. This
very pragmatic solution is based on the experiences with certificate trading
over the last 5 years. RECS International calls upon the European Commission,
the Parliament and the Council to consider the proposal of RECS International
very carefully. The proposal does not jeopardise the existing successful
support systems, it stimulates Member States to start opening their borders in
order to get ready for a fully open and cost efficient European market for
renewable energy.
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