Policy Consultations and Updates
Consultation on the Revision of the EU Emission Trading System (EU ETS) Directive
On 24 October 2014, the European Council agreed on the 2030 framework for climate and energy, including a binding domestic target for reducing greenhouse gas (GHG) emissions of at least 40% in 2030 as compared to 1990. To meet this target, the European Council agreed that the emissions in the EU Emission Trading System should be reduced, compared to 2005, by 43%. A reformed EU ETS remains the main instrument to achieve the emission reduction target. The cap will decline based on an annual linear reduction factor of 2.2% (instead of the current 1.74%) from 2021 onwards, to achieve the necessary emission reductions in the EU ETS. The European Council furthermore gave strategic guidance on several issues regarding the implementation of the emission reduction target, namely free allocation to industry, the establishment of a modernisation and an innovation fund, optional free allocation of allowances to modernise electricity generation in some Member States.
The purpose of the present stakeholder consultation is to gather stakeholders' views on these elements. This consultation focusses on issues not yet addressed in the consultations recently conducted for the 2030 Impact Assessment, the Impact Assessment for the carbon leakage list for 2015-2019 and the consultation conducted on post-2020 carbon leakage provisions.
Full details are here. Closes 16 March 2015.
Consultation on the list of proposed Projects of Common Interest - Energy
The objective of this consultation is to seek your views on the need for a gas or electricity project from an EU energy policy perspective bringing together security of supply, market integration, competition and sustainability.
Full details are here. Closes 13 March 2015
See what's planned for the EU here: EU Planned Public Consultations
Prudential Regulation Authority (PRA)
CP1/15 Assessing capital adequacy under Pillar 2
The PRA has launched a consultation on Pillar 2, which is intended to ensure that firms have adequate capital to support the relevant risks in their business. The consultation is relevant to banks, building societies and PRA-designated investment firms. Its purpose is to ensure that institutions have appropriate strategies, processes and mechanisms as well appropriate capital to ensure coverage of their risks, to which they are or might be exposed, including those revealed by stress testing and risks institutions may pose to the financial system. Closes 17 April 2015
CP3/15 Solvency II: transitional measures and the treatment of participations
The PRA is also consulting on Solvency II, in respect of the implementation of certain transitional measures. Solvency II is the EU Directive that is attempting to bring together insurance regulation from across the EU. It requires insurance firms to have a buffer to cover the risk of their assets becoming insufficient to cover their liabilities. The paper also contains a draft supervisory statement on calculating the Solvency Capital Requirement. The proposals are relevant to all UK Solvency II firms. Closes 20 February 2015
Occupational Pension Scheme Regulations - update
The planned consultation to amend the Occupational Pension Scheme Regulations has been delayed to the 24th February. The consultation will last for four weeks and be far narrower in scope than had been announced by the Government. This consultation will focus on the reference to â€˜social, environmental and ethical considerationsâ€™ in the OPSR to ensure it reflects the distinction between financial and non-financial factors, and on whether trustees should be required to state their policy on stewardship. It will not consider whether the regulations should include a statement to clarify that trustees â€˜should consider any factors which may be material to financial interests of scheme members and beneficiaries, including long-term factors, and determine what weight should be attached to these factors in their investment decisionsâ€™. This will be considered further in a paper to be launched in June.
Get in touch with Fergus Moffatt for more information.