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EU under pressure over CO2 effort sharing

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Published 02 June 2008

A group of Eastern European countries, led by Hungary, have asked for a revision of their national targets for cutting greenhouse gas emissions. EurActiv reveals the details of their alternative proposal.

Hungary, Bulgaria, Estonia, Latvia, Lithuania, Romania and Slovakia are questioning the reference year 2005 chosen by the Commission to calculate how each of the 27 EU member states will contribute to the EU's promised 20% cut in greenhouse gas emissions. 

The 20% target, which has to be met by 2020, is to be achieved compared to 1990 levels, the reference year for the Kyoto Protocol. 

But the group of seven stresses that, by choosing 2005 as the reference year for the basis of its calculations, the Commission is favouring the richer older members of the EU over the Eastern newcomers. 

Instead, they argue that the cuts they achieved since 1990 as a result of post-communist de-industrialisation should be better reflected in their national targets. They point out that, by 2005, Eastern states had already cut their emissions by 7.9%, and argue that the 2005 reference date is unfair. 

Under the Commission's proposed methodology, the biggest burden would fall on Latvia, Lithuania, Bulgaria and Romania. Instead, the proposal of the seven would put the burden on countries such as Luxembourg, Spain, Italy and Austria. 

As an alternative, the seven propose a uniform 18% reduction of emissions for all member countries. The result almost exactly matches the goal proposed by the Commission – kt CO2 4.387.429 for all the 27 EU countries. 

The Commission's main argument for choosing 2005 as the reference year is that the Emission Trading Scheme (ETS) for greenhouse gases did not exist before that date and precise emissions data was therefore unavailable. 

Experts from Eastern European countries told EurActiv they did not actually believe that a radical change of the Commission proposal is possible at this stage, but they sincerely hoped unfair treatment would become obvious and substantial corrections could be made. 

A note of the Presidency dated 26 May already takes note of the proposal by the seven, but it does not give full details. 

2020 targets:

Commission proposal Hungarian proposal
Kt CO2 Relative to Kyoto Protocol target Relative to Kyoto Protocol target
Austria 72.843 6% 56.386 -18%
Belgium 123.754 -8% 110.535 -18%
Bulgaria 62.161 -49% 100.043 -18%
Cyprus n/a n/a n/a n/a
Czech Republic 122.640 -31% 146.541 -18%
Denmark 45.068 -19% 45.402 -18%
Estonia 16.986 -57% 32.155 -18%
Finland 51.443 -28% 58.223 -18%
France 437.648 -22% 462.419 -18%
Germany 856.818 -12% 798.368 -18%
Greece 102.152 -24% 109.662 -18%
Hungary 76.725 -29% 88.948 -18%
Ireland 55.116 -12% 51.526 -18%
Italy 513.219 6% 396.270 -18%
Latvia 12.087 -49% 19.546 -18%
Lithuania 22.929 -50% 37.278 -18%
Luxembourg 10.922 15% 7.774 -18%
Malta n/a n/a n/a n/a
Netherlands 181.103 -10% 164.207 -18%
Poland 387.992 -27% 434.302 -18%
Romania 169.477 -35% 213.093 -18%
Slovakia 49.153 -26% 54.355 -18%
Slovenia 17.936 -4% 15.355 -18%
Spain 358.319 8% 273.256 -18%
Sweden 55.666 -26% 61.531 -18%
Portugal 73.317 14% 62.638 -18%
United Kingdom 502.988 -26% 559.581 -18%
EU 27 4.387.429 cca -18% 4.367.837 -18%

 

Positions: 

"We know that the Commission doesn't like our proposal," an expert from an Eastern European country told EurActiv. He explained that his Eastern colleagues do not question the methodology of the Commission, except for on one point – the reference year. 

"The Commission methodology is OK, it tries to achieve a balance," another Eastern expert  said, adding that the seven do not question the EU executive's plans to require industry to carry the largest share of the emissions reductions. 

Barbara Helfferich, the Commission's environment spokesperson, told EurActiv that one of the main reasons for choosing 2005 as the reference year is that before that date, there was no harmonised way of measuring and monitoring the emissions. She added that the Commission proposals had taken into account the countries' GDP and that a redistribution system for poorer countries was foreseen. 

Helfferich also said the contribution by the Eastern European countries to lowering emissions before 2005 was not the result of climate-friendly policies, but rather of the ongoing restructuring of these countries' economies. She added that Commissioners Piebalgs and Dimas had visited the member states' capitals to explain the Commission's approach. The EU executive is prepared to listen the countries' views at the Council meetings on 5 and 6 June, she said. 

In the meantime, Poland  has tabled a proposal of its own, seeking compensation through a less radical mechanism, basically by asking to be compensated via a larger redistribution of auctioning proceeds. 

The Seven have indicated that they do not consider the Polish proposal to contradict their initiative but consider it to be in parallel to their approach. 

"We are not a blocking minority and we are not trying to block anything," said an expert from the group of seven, insisting that the seven were not questioning the fundamentals of the Commission proposal, such as the basic architecture of the ETS. He added that the seven were willing to reach an agreement as expected, hopefully under the French Presidency, by the end of 2008 or in early 2009. 

Next steps: 
  • 5 June: Environment Ministers Council meeting. 
  • 6 June: Energy Ministers Council meeting. 
Background: 

On 9 March 2007 the European Council agreed on an action plan to put in place a European energy policy by the year 2009. On greenhouse gas reduction, the following decisions were taken: 

  • A binding target to reduce EU emissions by 20% by 2020, regardless of progress made in international negotiations for a post-Kyoto agreement, and; 
  • a binding 30% target should other industrialised nations including the US take similar steps. 
  • The Commission has since developed its views on how to achieve the 20% cut in 900 pages. 

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