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Europe Daily Bulletin No. 11882
SECTORAL POLICIES / Environment

Political agreement in sight at Council on sharing non-ETS effort and Lulucf, ahead of COP 23

The EU's contribution to the world's fight against climate change will dominate the Environment Council to be held in Luxembourg on Friday 13 October, under the presidency of the Estonian Minister for the environment and the climate, Siim Kiisler.

The ministers will attempt to settle the EU's position ahead of COP 23 (Bonn, 6-17 November, under the presidency of Fiji) with a view to making progress in implementing the Paris Climate Agreement. A political agreement is also hoped for on the proposed European regulation on sharing the effort to reduce greenhouse gas emissions between member states in sectors not covered by the emissions quota trading system (ETS) of the EU and on its corollary –  the proposed 'Lulucf' regulation on the contribution of agriculture and forestry to tackling climate change.

On both of these dossiers, the ministers will have to do the necessary to agree on a general orientation ahead of COP 23 as promised, in order to send out a positive signal to their international partners. In light of progress made on the basis of the compromises it has proposed, the Estonian Presidency of the Council is optimistic, but is making no secret of the fact that the discussions may be lengthy. “The morning will not be enough. Discussions will have to resume in the afternoon”, in particular on the Lulucf regulation, on which there are more delicate issues still to be resolved, a European source acknowledged on Thursday 12 October.

Sharing the effort in non-ETS sectors. The non-ETS sectors are transport, agriculture, construction and waste. These must cut their emissions by 30% over the period 2021-2030 compared to 2005 figures, as a contribution to the EU's climate target - reducing its emissions by at least 40% up to 2030 compared to 1990 levels. On this regulation, which lays down national reduction targets, the discussion, which will be open to the public, will focus mainly on the security reserve, a new flexibility mechanism on which it has still to be agreed whether 100 million tonnes of CO2 equivalent will be acceptable as a maximum volume and 2032 as a date for its usage (see EUROPE 11875). The starting point for the linear emissions reduction trajectory for each member state (average emissions for the period 2016-2018) may also be raised by some of the delegations.

Lulucf regulation. On this text, which sets out the accounting rules and commitments of the member states to achieve a balance (under the 'no debit' rule) between emissions and absorptions of greenhouse gas emissions in agriculture and forestry over a period of five years, the Presidency's compromise aims to satisfy the major forestry countries, led by Finland, which practice sustainable forestry management, but are concerned that they will not be able to comply with the no debit rule. The discussion will focus on the available leeway for sustainably managed forests - the key outstanding question.

The Estonian Presidency has proposed new flexibility, which will take the form of a compensation mechanism for around 360 million tonnes of CO2 equivalent over 10 years (or 10% of the EU's annual average carbon well over the entire period) available to the member states as long as their forests are still acting as carbon wells, with a maximum compensation coefficient to be defined in advance for each member state on the basis of the average of its past carbon wells (2000-2009) and on condition that in total, the EU collectively meets the no debit rule.

This is the solution that was found in order to safeguard the environmental integrity of the regulation, but Finland, 80% of which is forested (Malta: just 1%) and other countries, such as Slovenia, Sweden and Austria, have reservations on the total level of the compensation, its distribution criteria and the conditions for it to apply. Due to the change in forestry reference period (2000-2009 rather than 1990-2009 as the Commission proposed), these countries fear that they will be penalised and no longer be allowed to do any logging.

COP 23. The Council will adopt conclusions on the Paris Agreement and preparations for the 23rd conference of the parties to the United Nations Framework Convention on climate change (COP 23). It will highlight the EU's determination to remain at the forefront of the global fight against climate change and the importance it attaches to preparing for the facilitating dialogue of 2018, the implementation of the nationally determined contributions (NDCs) and the financing of climate action to support the attenuation and adaptation efforts of the poorer and more vulnerable countries, in line with the conclusions of the Ecofin Council 10 October (see other article).

United Nations Environment Assembly. The ministers will hold an exchange of views over lunch, to be attended by the Executive Director of the United Nations Environment Programme, Erik Solheim, to prepare for the work of the third session of this supreme decision-making body in environmental matters (UNEP-3), to be held in Nairobi (Kenya) from 4 to 6 December. The Council will then adopt conclusions on its priorities for this session, to be dedicated mainly to the theme "Towards a pollution-free planet". The Council will stress the global nature of pollution and its impact on the environment and human health, and will lay emphasis on the importance of international cooperation to prevent and reduce pollution.  (Original version in French by Aminata Niang)

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