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Brussels readies for tough climate negotiations

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Published 17 October 2008, updated 14 December 2012

After being given a mandate by European leaders to finalise climate and energy measures before the end of 2008, EU lawmakers are running short of time to seal a deal that satisfies Europe's ecological and industrial ambitions simultaneously.

Getting the EU's 27 member states to sign off on the December deadline "has not been easy, let me assure you," said French President Nicolas Sarkozy during a 16 October press conference at the conclusion of the summit.

France, which currently holds the EU's rotating presidency, was under pressure from Poland and Italy to back down from a commitment to finalise the climate and energy package before the end of the year.

But Warsaw and Rome were ultimately persuaded to sign off on conclusions that maintain the basic architecture and timeline for the adoption of the measures.

The French EU Presidency and the European Commission are now called upon to "organise intensive work over the next few weeks in order to enable the European Council in December 2008 to decide on appropriate responses to the challenge of applying that package in a rigorously established cost-effective manner to all sectors of the European economy and all member states, having regard to each member state's specific situation," according to the Council conclusions adopted on 16 October.

But the vague wording of the conclusions is widely seen as an indication that member states remain sharply divided over key issues, particularly the treatment of energy-intensive industries. Paris has put forward more specific guidelines for further work, but these were not included in the main text of the conclusions.

"It will not be a very easy task" to reconcile the imperatives of fighting climate change with concerns over Europe's industrial competitiveness, German Foreign Minister Frank-Walter Steinmeier admitted after the summit. 

There are also concerns that agreeing the climate package at the level of the European Council, where decisions must be taken on the basis of unanimity rather than through qualified majority voting, will lead to 'horse trading' and closed-door talks between EU countries in order to bring reluctant states like Poland and Italy on board.

Take it or leave it 

A unanimity vote places the Parliament in a tricky position. If MEPs vote on the package before the next EU summit, scheduled for 11-12 December, member states would need to bring their position in line with the EU's co-legislators in order to come to an agreement before the end of the year.

But if Parliament votes on the package, as is widely expected, only after member states have finalised a deal, MEPs would have little room for manoeuvre to push for changes, and would need to either reject or accept the compromise agreed between member states.

A rejection of the deal would lead to a second reading and would push back the date for adoption of the package to March 2009 or late in 2009 under the legislature of a new Parliament.

EU leaders hope to avoid such a scenario, and so-called 'tripartite' negotiations between Council, Parliament and the Commission are foreseen in the meantime so that an agreement can be found. The full Parliament is not represented in these talks, however, which are led on its behalf by the four MEP rapporteurs on the climate package - Irish Christian Democrat Avril Doyle (EU ETS), Finnish Green Satu Hassi (CO2 effort sharing), Luxembourg Green Claude Turmes (renewables) and UK Liberal Chris Davies (carbon capture and storage).   

A new deal?

It remains unclear what kind of compromises will emerge in order to get some of Europe's more hesitant industries and member states to sign off on the package. 

But the language of the conclusions points to a potential rethink of the rules governing Europe's industrial sectors, whereby the Commission is requested "to make appropriate proposals by the end of the year, in particular to preserve the international competitiveness of European industry".

Comments by Sarkozy indicate that Brussels could consider sweeping changes to the application of state-aid rules, in particular for Europe's carmakers (see EurActiv's related coverage).

Positions: 

"The Commission stands ready to pursue its constructive dialogue with the other European institutions while making sure that the overall architecture of the package is maintained, as well as its environmental integrity", EU Environment Commissioner Stavros Dimas said in a statement that welcomed the outcome of the summit.

Green MEPs Caroline Lucas (UK) and Satu Hassi (Finland) voiced their concern, however, that Parliament is being sidestepped in the process.

"The French presidency now appears to be driving for an agreement based on the lowest common denominator, with the European Council in December to steamroller this through in complete disregard for the co-decision role of the European Parliament", Lucas said.

Background: 

On 23 January 2008, the Commission presented a package of four proposals designed to transform into law the political commitments made by EU member states in March 2007 to reduce the EU's emissions of CO2 and related greenhouse gases (GHGs) by 20% by 2020, while boosting the bloc's share of renewable energy use to 20% over the same period.

A revision and strengthening of the EU's Emissions Trading Scheme (ETS), the 'flagship' EU policy to tackle climate change, and a proposal that outlines how member states should divide the 'effort' of sharing CO2 reductions in sectors not affected by the ETS between themselves, are the two main building blocks of the so-called 'climate and energy package'. 

A proposal to boost renewable energies and plans outlining a legal framework to regulate the geological storage of CO2 captured during power generation make up parts three and four of the package.

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