EU agrees tight schedule for climate and energy deal[fr][de] 

“Comprehensive deliberations” between Council and Parliament on the Commission’s proposals should produce a deal “before the end of 2008 and consequently allow for their adoption within the current legislative term, at the latest early in 2009”, according to conclusions  agreed during the Spring European Council in Brussels on 14 March.

With a major international meeting on climate change scheduled for Copenhagen in December 2009, the EU is under pressure to agree internally on how to deal with the threat of climate change before pushing other states to agree a post-2012 global climate deal to replace the Kyoto Protocol.

But member states still need to iron out a number of differences before they can present a united front in Copenhagen.

While the Commission's proposals have been generally welcomed by national capitals (EurActiv 29/02/08 and 04/03/08), differences remain over how CO2 reduction and renewable energy efforts are to be divided between EU countries.

And Europe's energy-intensive industries have put pressure on key member states, notably Germany, to get insurances from Brussels that their global competitiveness will not be undermined by the EU's tightening 'carbon belt'.

The argument put forward is that sectors like steel, cement and aliminium will be forced to take their operations outside of Europe if other states do not adhere to binding greenhouse gas (GHG) reduction measures. This would result in major job losses and so-called 'carbon leakage', meaning an increase in GHG emissions outside of the EU's borders. 

German chancellor Angela Merkel made industry's case during the summit on 13 March, and pushed for the inclusion of specific language in the Council's conclusions: "The European Council recognises that carbon leakage in energy-intensive sectors exposed to international competition needs to be addressed urgently" (EurActv 13/03/08).

The conclusions do address the apparent urgency of the matter. But the text also notes that "an international agreement remains the best way of addressing this issue", a reflection of the Commission's position.

Commission President José Manuel Barroso on 14 March pledged that "clear assurances" will be made to energy-intensive in the post-2012 period of the Emissions Trading Scheme (EU ETS). 

But Brussels remains optimistic a global deal can be reached, and will not elaborate until 2010 any details about what kind of protective measures would be applied in case international negotiations fail. 

ETUC, the European Trade Union Confederation, called the summit a major step forward, but argued that "social and employment considerations must be taken into account". To protect EU jobs, ETUC favours a border 'adjustment mechanism' such as a tax on importers operating in countries with less stringent climate regimes.

The summit received poor marks from environmentalists. The Greens in the Parliament said the "Spring Council has proved that economic interests still rank higher than environmental protection".

"The half-successful attempts to grant exemptions to energy intensive industries before it is known if there will be an ambitious international post-Kyoto agreement, is a fatal signal. With this attitude EU leaders demonstrated their scepticism for the chances of a successful outcome of the next round of international UN climate talks", according the Greens' Vice-Presidents Rebecca Harms and Claude Turmes.

Greenpeace  called it a "non-summit", and "a carbon copy of last year’s deal, supplemented by some misplaced protectionist language to appease heavy industry,” said Mahi Sideridou, the groups climate and energy policy director.

Stephan Singer, Head of European Climate and Energy Unit at WWF, said “European leaders continue to focus on the dinosaurs in the energy intensive industry rather than on the potential for innovation, jobs and export opportunities that measures to reverse climate change could create".

Development NGO Oxfam said EU leaders should “cut their carbon emissions by at least 30% and stand up to the industry lobby that is already attempting to water down the EU’s target. Only then will we truly begin to tackle climate change and safeguard a future for the world’s poorest people”.