EU Climate Change Plans Get Cool Reception

Jeremy Lovell, PlanetArk 24 Jan 08;

LONDON - Activists and environmentalists reacted cooly on Wednesday to the European Commission's new plans to cut climate warming carbon emissions by one-fifth and boost energy from renewables like wind, waves and sun by 2020.

The Commission's plans will implement renewable energy and emissions-cutting targets agreed by EU leaders last March, and need approval by member states and the European Parliament.

But the 20 percent greenhouse gas emissions cuts are well below the 25-40 percent target the developed world agreed at a UN meeting on the Indonesian island of Bali last month.

"The promising parts of this energy package are overshadowed by a greenhouse gas target that falls well short of what is needed," said Friends of the Earth campaigner Sonja Meister. "Reducing greenhouse gases by only 20 per cent is simply not enough. The EU must live up to the agreements made in Bali."

Environmentalists and business welcomed the boost to renewables given by the committment to get 20 percent of all EU energy from these sources by 2020, and called on governments to make the money and conditions available to make it happen.

But activists rejected the EU's plan to get 10 percent of road fuels from agriculture as unworkable and unsustainable, noting the vast swathes of rain forest that have already been cut down to make way for production of so-called biofuels.

"The EU target for biofuels is a mistake. Biomass is more efficiently used for electricity and heat production, rather than to fuel high-consumption cars," said Greenpeace renewables campaigner Frauke Thies.

Campaigners welcomed the changes proposed in the EU's carbon emissions trading scheme from 2013, specifically that power generators will have to pay for their pollution permits. Currently the power utilities are given the permits free of charge, although they have charged consumers the price the permits fetch on the open market thereby earning themselves billions of dollars in windfall profits.

But the activists criticised proposed loopholes for smokestack industries facing competition from countries outside the 27-nation bloc with no such anti-pollution measures.

"In exempting these sectors from auctioning until 2020, the Commission is starting from the negative assumption that no other countries will introduce binding measures to reduce emissions," said Green Europarliamentarian Caroline Lucas.

Industry lobbyists had threatened that if they faced strong extra carbon costs they would simply relocate outside Europe.

Scientists warn that global average temperatures will rise by between 1.8 and 4.0 degrees Celsius this century due to burning fossil fuels for power and transport, causing floods and famines and putting millions of lives at risk.

Despite the criticisms, the EU hopes its package of emissions control measures, the most far reaching of any to date, will act as a spur to action by other major polluters including the United States and China. (Editing by James Jukwey)

EU plan sets out cuts for CO2 emissions
Aoife White, Associated Press Yahoo News 22 Jan 08;

The European Union's plan for tackling climate change calls for imposing emissions cuts on member states, building more windmills and making it costlier for major polluters, according to documents to be unveiled Wednesday.

The proposals by the European Commission, the bloc's administrative body, are intended to get emissions of carbon dioxide and other gases linked to global warming down a fifth by 2020 — as pledged by leaders of the 27 EU nations last year.

Draft documents obtained by The Associated Press describe Europe and the rest of the world as being at a crossroads in dealing with global warming. The documents call for "decisive and immediate action" in developing homegrown renewable power sources.

But EU officials acknowledge their approach will carry a high cost — at least 0.5 percent of the bloc's gross domestic product, some $80 billion a year — and likely see electricity prices go up.

Businesses warned last week that driving up costs could make them less competitive in world markets. EU trade unions said they were worried by the risk of major job losses if companies move abroad, saying 50,000 jobs in the steel sector along were at risk.

The documents insist the spending envisioned by the plan would be balanced by a $72 billion reduction in the EU's bill for oil and natural gas imports. They also say forcing cuts in emissions and energy use would give Europe a boost in the race to produce energy-efficient goods and renewable power technology for export.

Richer nations would have to do the most to rein in emissions, while some poorer countries, such as EU newcomer Romania, would be allowed to increase emissions as their economies expanded. No country would have to cut emissions by more than a fifth from 1990 levels.

The plan envisions getting a fifth of the EU's energy needs from renewable power by 2020, up from 85 percent in 2004.

Many European countries would have to rapidly ramp up their amount of wind, solar or hydro power to hit new binding targets. Britain, which generated 1.3 percent of its energy from renewable sources in 2005, is expected to be ordered to increase that to 15 percent.

Hydropower-rich Sweden, meanwhile, already is close to 40 percent, while Denmark's wind farms provided 17 percent of its energy.

Associated Press writers Jan Sliva, Barbara Schaeder and Paul Ames contributed to this report.

FACTBOX: The EU's energy and climate plan
Reuters 23 Jan 08;

(Reuters) - The European Commission presented on Wednesday draft reforms to the European Union's energy sector to aid the climate change fight, based on targets agreed by EU leaders last March.

Following are the main elements in the plan, which must be approved by member states and the European Parliament.

OVERALL GOALS

* 20 percent reduction in emissions of greenhouse gases in 2020 compared to 1990 levels. The cut would be increased to 30 percent if there is an international climate change deal

* 20 percent of energy demand to be sourced from renewables such as solar, wind, wave, hydro and biomass by 2020, versus 8.5 percent now

* 10 percent of biofuels in transport fuel

COSTS AND BENEFITS -- EUROPEAN COMMISSION

* Overall cost estimated at about 0.5 percent of GDP or 60 billion euros ($86.53 billion) a year

* Electricity prices to rise 10-15 percent by 2020

* Reduction of energy imports worth 50 billion euros a year

* Reduced need for air pollution control, saving 11 billion euros a year by 2020

* Spur innovation in energy sector, efficiency improvements, global political leadership on fighting climate change

EMISSIONS TRADING FROM 2013-2020

* Emissions trading scheme (ETS) to be extended to more industries, such as chemical and aluminum. Other greenhouse gases, apart from carbon dioxide to be included, covering 40 percent of total EU greenhouse gases in all.

* Quota of emissions permits to be cut by 21 percent compared to 2005 emissions levels.

* Full auctioning of emissions permits to the power sector

* Propose by 2010 which energy-intensive industries should get free permits.

* National allocations plans for C02 emissions to be abandoned in favor of a single cap by sector for the whole EU, with member states receiving auctioning rights.

* Revenues from auctioning at about 50 billion euros ($73.09 billion) annually by 2020, to go to member states, 20 percent of which should be used to combat climate change.

EMISSIONS OUTSIDE ETS

* Emissions from sectors not covered by ETS, such as transport, building, services and agriculture, to be cut by average 10 percent from 2005 levels in 2020.

* National targets will depend on GDP per capita and range from -20 percent to +20 percent of 2005 emissions. Bulgaria allowed to increase emissions by 20 percent; Denmark, Luxembourg to cut by 20 percent; Germany and France to cut by 14 percent.

RENEWABLES AND BIOFUELS

* Targets for power production from renewable energy sources to increase for all countries, taking into account ability to produce renewables

* At least 10 percent biofuels to be used in road transport fuels by 2020, but subject to environment rules

* Key biofuels criteria: a real carbon emissions saving of at least 35 percent compared to oil; not from land of "high biodiversity" or high carbon stocks; must use best agricultural practices

* Countries unable to reach their goals to be allowed to pay other EU states to produce renewables on their behalf

PROMOTING CARBON CAPTURE AND STORAGE

* First rules and economic incentives to govern the capture, transport and underground storage of carbon

GUIDELINES ON STATE AID TO PROMOTE ENVIRONMENT PROTECTION

* State aid for environment-friendly power generation schemes will be allowed to cover the difference between production costs and market prices, capped by the project's overall cost. The EU normally bans state aid that distorts competition