Assessment of impacts of proposed Directive of the European Parliament and of the Council on the limitation of emissions of certain pollutants into the air from medium combustion plants (the MCP Directive)

Submitter: Ministry of Industry and Trade of the Czech Republic and Association for District Heating of the Czech Republic

Time of relevance: 4–8/2014

 

Project description: The project objective was to assess the impacts of potential adoption of the proposal for a "Directive on the limitation of pollution from medium combustion plants with an installed capacity of 1–50 MWt" of December 2013 (hereinafter, the Directive), which is part of the "European clean air policy package". The objective of the proposed Directive is a major reduction to emission limits for particulate matter, SO2 and NOx. The analysis of economic impacts on Member States commissioned by the European Commission mentions costs of CZK 160 million a year for the Czech Republic. IREAS carried out an economic analysis of the impacts of the proposed Directive at the national level in detail, using its SimTool model.

 

The investigation yielded information for 146 sources (40% of te total 365) in the brown and black coal and liquid fuels categories. We had approached 177 sources (48% of the total 365). The modelling of the impacts at the corporate level used our own microeconomic SimTool Economic model. The total average annual costs are CZK 1.7 billion, being thus approx. 10 times higher than those assumed by the European Commission's impact analysis. The adoption of the Directive in its analysed form would have the greatest impact on brown coal sources.

 

Contact person: Ondřej Vojáček, vojacek (at) ireas.cz, Jan Macháč, machac (at) ireas.cz