EU-ETS phase II: the potential and scale of windfall profits in the power sector

Source: PointCarbon
"WWF commissioned Point Carbon to undertake a study to assess the potential and scale of windfall profits in the power sector in selected countries (UK, Germany, Spain, Italy and Poland) during the second phase of the EU Emissions Trading Scheme (ETS), which runs from 2008 to 2012. In this report, a windfall profit is defined as accruing to thermal (CO2 emitting) power generation if the additional revenue earned from the pass-through of CO2 (opportunity) costs to power prices exceeds the level of compliance costs incurred under that scheme by thermal generators."