Brussels, 14/10/2008 (Agence Europe) - On the eve of the European Council in 15-16 October, environmentalist NGOs and European industry have told European heads of state and government what they expect from the energy-climate package. Despite the European Commission's and the French Presidency's best intentions to complete the package by the end of the year, environmentalist NGOs fear that the financial crisis will be used by some member states as a pretext for, if not postponing, at least watering down measures . European industry, however, has reiterated its concerns that Europe, through its highly ambitious aims, will find itself going it alone internationally, and has said that global solutions to the global problem of climate change have to the top priority, without sacrificing European competitiveness.
“European countries need to reaffirm the EU commitment to cut greenhouse gases by 30% by 2020, without any escape clauses,” warns WWF. Knowing that there will be discussion of the controversial issue of the possible impact of a revised Community emissions trading scheme (ETS) on the competitiveness of energy intensive industries, WWF calls on the French Presidency and on all European governments not to compromise the adoption of a “strong European climate package will make Europe more resilient to future economic fluctuations”. According to WWF, such measures will reduce dependence on external sources of energy supply, create more jobs and lead countries to join forces to avoid the dramatic consequences of climate change. It accuses the French Presidency, supported by Italy, Germany and Poland of wanting the manufacturing sector “to be exempted from the polluter pays principle by receiving pollution allowances for free”. It sees in this “an attempt to subsidise polluting companies”. WWF is critical, too, that Poland and Italy are seeking to exclude some power markets from having to purchase all their pollution permits arguing that in countries without a fully liberalised power market, full auctioning would push up the price of power.
Representing European business, BUSINESSEUROPE says it is very concerned, not by the level of ambition but by the “implementation of the climate and energy legislative package … because action has been initiated mainly on the ecological and renewables side, whereas there is insufficient engagement on the competitiveness leg of the plan”. BUSINESSEUROPE considers that, in the context of reaching the EU's unilateral 2020 climate goals, there is still “no clear and effective response … for addressing the heavy extra costs that are planned for European manufacturing industry … through the Emission Trading Scheme. These extra costs will hurt international competitiveness, especially for energy intensive industries. The additional costs stemming from renewable energy policy will have further negative competitiveness effects for energy intensive industries in Europe”. It calls for maximum flexibility to be allowed in implementing national targets. “We have never called for the package to be delayed, but we continue to stress that measures have to be predictable for industry. That is very important, and the French Presidency's intentions in this regard are the same as ours,” BUSINESSEUROPE Secretary General Philippe de Buck told press on 14 October. For the benefit of the European Council, the organisation set out what it expected from climate talks in Posnan: a “framework” for a solid agreement in Copenhagen, based on: - “mobilisation of all major economies” on a binding target of a 30% reduction by 2020; - “a level playing field for industry”: participating countries must agree to implement and enforce measures which will result in an equivalent burden for industries exposed to international competition; - enhancement and simplification of market mechanisms at world level (clean development mechanism and joint implementation); - assessment of all eco-efficient of all climate technologies without exception (energy efficiency, nuclear power, renewables); - definition by the EU of criteria for assessing international agreements. “We believe it is essential to ensure that the burden on industry outside the EU is the same as inside the EU,” de Buck said. (A.N./transl.rt)