The EU's wide-ranging package of climate change measures overcame another
hurdle in the European Parliament today, despite fears that adoption of the
legislative programme could yet be delayed or even blocked by opposition from a
group of eastern European states led by Poland.
The European Parliament's environment committee today voted almost
unanimously in favour of proposals to "significantly toughen" the rules
surrounding the EU's plans to cut emissions across the bloc by 20 per cent by
2020.
Under the proposals, which will now go before the council of EU member
states, those sectors not covered by Europe's emissions trading scheme have to
cut carbon emissions by 10 per cent between 2013 and 2020, while the whole bloc
would sign up to emission reductions of between 60 and 80 per cent by 2050.
"Overachieving" member states that exceed their targets would also be allowed
to "transfer, sell or lend" extra emission savings to other states to help them
meet their goals, while fines of €100 per tonne would be imposed upon those
states that fail to meet their reduction targets.
In a move bound to infuriate some member states, the committee voted to clamp
down on the extent to which countries can meet their emission targets by buying
in UN-approved carbon offset credits, capping the proportion of imported credits
at eight per cent of 2005 emissions for the whole period from 2013 to 2020. In
contrast, UK officials from the Department for Business, Enterprise and
Regulatory Reform (BERR) had been lobbying for the import cap on offset credits,
known as CERs, to be
set
at 50 per cent of the emission reduction target.
A spokeswoman for the environment committee said the new caps represented a
"significant toughening" of the original legislation put forward by the European
Commission, which would have allowed states to "offset" three per cent of their
target each year.
But Stig Schgolset, senior analyst at research firm
Point
Carbon, warned that with several states lobbying alongside the UK for more
generous import caps there was likely to be frustration at the decision to
tighten the cap further.
Several member states are also likely to oppose European Commission
proposals, endorsed by the environment committee in a separate vote today, which
would ensure that from 2013 all emission allowances required by the energy
sector under the EU's emissions trading scheme (ETS) will have to be bought at
auction with 100 per cent of the revenue raised earmarked for investment in
climate change initiatives.
Schgolset said that the capping of offset imports and earmarking of auction
revenues were now set to become a "crucial issue" as the parliament enters into
negotiations with the European Council of member states in an attempt to
finalise the legislation.
According to sources in Brussels, Poland has secured support from a number of
other eastern European states and will attempt to block the package amidst
concerns that cutting emissions from its coal-reliant economy will leave it
increasingly dependent on imported gas from Russia. Meanwhile, Germany is also
said to be lukewarm on the proposals and could yet lobby for a weakening of the
legislation.
"There is likely to be some sort of compromise because there is real pressure
to get everything in place before the Copenhagen talks [to agree a successor to
Kyoto in December 2009]," said Schgolset. "The overall targets are unlikely to
change, and Poland and the others will have to back down… But many of the member
states don't want 100 per cent earmarking of revenue, so that may change, and we
might get slightly higher offset import caps."
A spokeswoman for the environment committee said that without the support of
member states the whole legislative package could be delayed well into next
year, and possibly beyond.
She explained that informal talks would now begin between the parliament and
the European Council with a view to a deal being struck before the end of the
year ahead of a final vote by the full European Parliament.
However, if a deal cannot be brokered the parliament will vote on the
proposals regardless, at which point formal negotiations will have to be
undertaken with the member states in an attempt to gain final approval – a
process that she warned would result in lengthy delays in the legislation's
adoption.
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