Dimas brushed aside criticisms about Europe 'going it alone' on climate change and holding back its economic performance in the face of competition from the US or China, which are currently free from any carbon constraint.
"We know in the EU that the businesses which have reacted to the issue before regulators are at a comparative advantage," he said. "They will get a profit. And they know this."
"The public is growing aware of the environmental problems and consumers will behave in a way that rewards sustainable products and sustainable businesses," Dimas said. And if the US and China refuse to join global-warming mitigation efforts, he added, "the EU will then be better prepared for the low-carbon future".
"This will provide European business with a competitive advantage."
Dimas admits that the EU's Emissions Trading Scheme has thus far not delivered in fostering investments in clean energy originally sought by the Commission.
"First of all, higher prices of oil and gas play a great role and are important for investment decisions in the energy sector," Dimas recalls.
But he is also willing to take some of the responsibility. "As you know, during the first trading period [2005-07], we had an over-allocation of CO2 emission allowances and this did not provide the incentive to invest, especially for long-term investments."
And, following the bitter experience of Germany and other member states, he showed he was determined not to let the same thing happen in the second trading period (2008-12) to keep up the scheme's credibility.
On 9 February, Germany dropped plans to challenge a Commission decision, taken in November last year, to tighten its National Allocation Plan for CO2 emissions quotas (EurActiv 30/11/06). Environment Minister Sigmar Gabriel said he would accept the decision, which saw the Commission slash its quotas to 453 million tonnes of CO2 for the period 2008-12, instead of the 482 it had originally asked for.
"Most of the submitted plans went above what we expected, and so we had to make the relevant adjustments," Dimas explained. "I hope that during the second period we will have the scarcity needed in order for companies to make investments" in low-carbon technologies.
Responding to critics who argue that the EU-ETS leaves too short a timeframe for investments in cleaner energy, Dimas reiterates that the scheme was designed to coincide with the second phase of the Kyoto protocol, which expires in 2012.
And he says longer timeframes, above the current five-year horizon, is one of the issues currently being debated for the third trading period, after 2012: "We shall see".
Progress, however, is apparently being made on other issues. "It seems we are heading towards an agreement to have more allowances auctioned after 2012," he said.
"Currently, there is a ceiling for voluntary auction of up to 10% of total allowances. Now, we are thinking the other way around - requiring a minimum level of auctioning."
To read the full interview, click here.
