13 April 2010 – A group of ten European industry trade associations, together with COGEN Europe and Euroheat & Power, have called on the European Commission and Member States to stay true to the spirit of the EU Emissions Trading Scheme (EU ETS) Directive and not unduly penalize high efficiency CHP and district heating systems.
 
The organizations have issued a joint letter, addressed to the European Commission and to Member States, which says that organizations do not want to be penalized for running CHP installations against less efficient techniques under the revised EU ETS, and wish to suggest solutions to the anomalies in the interpretation of the revised EU ETS directive of 26 March 2010 on the level of free allocation of EU Allowances (EUAs) to CHP plants within industrial and district heating installations.
 
Industry is concerned that a misguided interpretation of Article 10a4 will result in district heating and CHP installations being penalized under the scheme from 2013.
 
The 12 associations believe this can and must be avoided at all costs, and committed themselves to work with Commission officials and Member State representatives to ensure that no undue distortions are created on the heat market.