Global climate policy future sketched out

2237, 10/01/07

The EU should commit to cutting its greenhouse gas emissions by 20 per cent by 2020, the European commission proposed on Wednesday as part of its energy / climate package.

The recommendation comes in a paper setting out a vision for global climate action after existing international emission targets expire in 2012.  The EU must press all developed countries to cut emissions by 30 per cent by 2020, the commission says. Leading developing countries should begin making absolute reductions by the same time, it states.

Under the commission's plan, in the event of all developed countries agreeing to cut emissions by 30 per cent, the EU would do likewise.

The unilateral 20 per cent target will help stabilise the EU carbon market by signalling significant demand for emission allowances beyond 2012, the commission said.  It will also provide incentives for investment in emission reduction technologies and low-carbon alternatives.

EU heads of government will be asked to endorse the two targets when they discuss the package in March.  International talks on what should follow the existing Kyoto protocol resume later in the year. The dual-target approach represents a victory for industry commissioner Gunter Verheugen (EED 09/01/07 http://www.endseuropedaily.com/22361).  But environment commissioner Stavros Dimas said the proposals were still the most ambitious in the world.

The commission finally dropped the idea of an EU "border carbon levy" on products from countries that do not commit to cutting emissions. The possibility was raised in early drafts of the paper but was opposed by EU trade commissioner Peter Mandelson (EED 18/12/06 http://www.endseuropedaily.com/22282).

Domestically, the EU must extend and improve its carbon emission trading scheme, the paper says.  It must boost measures to cut carbon emissions from cars and homes, and develop measures to curb emissions of other greenhouse gases, particularly methane.

Internationally the clean development mechanism should be used to encourage industry sectors in developing countries to take on reduction commitments.

An accompanying impact assessment says the global investments needed to create a low-carbon economy would cut GDP growth by only 0.19 percentage points annually, compared with an expected yearly growth rate of 2.8 per cent.  The cost of inaction, meanwhile, could reach 20 per cent of GDP, according to the commission's analysis (EED 08/01/06 http://www.endseuropedaily.com/22352).

* A separate paper on the EU's role in helping member states to adapt to the effects of climate change has been delayed and is now scheduled for February, officials said.

Follow-up: See press release http://europa.eu/rapid/pressReleasesAction.do?reference=IP/07/29,

memo http://europa.eu/rapid/pressReleasesAction.do?reference=MEMO/07/16

and FAQ http://europa.eu/rapid/pressReleasesAction.do?reference=MEMO/07/17,

plus the communication http://ec.europa.eu/environment/climat/pdf/com_2007_2_en.pdf,

impact assessment http://ec.europa.eu/environment/climat/pdf/ia_sec_8.pdf

and summary assessment http://ec.europa.eu/environment/climat/pdf/ia_sec_7.pdf.