Europe could cut greenhouse gases emitted by large power plants by more than two-thirds by 2020 if mandatory emissions caps were introduced in stages between 2010 and 2020, according to the research, carried out by the consultancy Ecofys. It also argues that an early phase-in would be cost-effective.
The environmental groups believe the EU's emissions trading scheme (EU ETS; see EurActiv LinksDossier) and other climate legislation agreed upon by EU leaders last December is not strict enough to deliver Europe's commitment to moving from a 20% CO2 reduction target to 30% by 2020 should a new international agreement become a reality.
"The current EU emissions trading scheme unfortunately does not prevent high-polluting, coal-fired power stations from being built. We need new emissions limits to ensure Europe only invests in renewable energy, energy efficiency, and CO2 capture and storage facilities for coal-fired power stations," said Stephan Singer, director of WWF's Global Energy Programme.
The NGOs criticise the revised EU ETS for allowing the construction of new power plants "under the guise of '[CO2]-capture readiness'". They say a CO2 emissions performance standard that puts a cap on emissions per unit of energy output would guarantee investment in low-carbon technologies, as new power plants unable to meet the standard could no longer be built. Existing installations would also have to invest in energy efficiency measures and have carbon capture and storage (CCS) technologies retrofitted.
According to the research, an emissions performance standard could be introduced in stages for both new and existing plants. A limit of 350g CO2/kWh for new plants from 2010 and for existing plants from 2015 could cut power sector emissions by up to 46%, while stricter limits imposed on new plants only would deliver much smaller savings, the study shows.
Nevertheless, the EU would struggle to introduce such standards, if the EU ETS revision can be considered as a precedent. Significant exemptions from the scheme were granted to industries deemed exposed to competition by third countries with less stringent CO2 legislation after intensive lobbying, mainly from new Eastern European member states, which are highly dependent on coal for their power needs.
Poland, for example, relies on coal for over 90% of its electricity generation, and emission limits would probably force many of its coal-fired power plants to close down, leading to supply disruptions.
The Ecofys study points out that CO2-related emission performance standards have already been in place in California since 2007, setting an example for other US states to follow. It argues that such schemes can be successfully implemented under the right framework conditions, for example, helping energy operators to bear the costs of compliance by offering tax breaks and other legal incentives. The EU could, for example, introduce a more stringent EU ETS involving higher certificate prices, it suggests.
