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Brussels heats up over climate change

Published 13 November 2006 - Updated 29 June 2007
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Climate change and energy issues have gone to the top of the EU's political agenda, as demonstrated by several Brussels conferences last week.

A policy summit "Energy Europe" organised by Friends of Europe focused on the twin challenges of energy supply and climate change. In his keynote speech, environment commissioner Stavros Dimas promised a very tough review of the second-phase national allocation plans within the next few weeks. "I am not going to let the ETS suffer because of irresponsible authorities," Dimas warned.

In an ensuing discussion on the impact of energy/climate change issues on the EU's external relations agenda, Jon-Pol Poncelet of energy company AREVA underlined the need to have a European debate on the revival of nuclear power. He also saw a need to re-examine the role of governments in the debate about Europe's energy liberalisation. Laura Cozzi, Principle Energy Analyst of the International Energy Agency presented the main conclusions of the EIA's World Energy Outlook 2006. She criticised lack of real "implementation of sustainable energy policies". Joost Van Roost of ExxonMobil  drew attention to the role technology will have to play in finding a solution to energy-supply and climate-change challenges.

In the context of this conference, Friends of Europe and Gallup Europe produced a survey  of about 200 high-level EU and US policy leaders showing that the respondents are very pessimistic about the long-term outlook for energy security. EU and US leaders were evenly split on the question whether their foreign policies will diverge as a result of competition for scarce resources. 

In the European Parliament, the Green Group organised another stakeholder conference and launched a new study on energy and climate change scenarios for the EU. The study, written for the Green Group by the renowned German Öko-Institut demonstrates that "it is possible to achieve ambitious climate targets - emissions reductions of 30% by 2020 and 40% by 2030 - without nuclear expansion. The Greens also called for a "Pact for climate and energy security".

The importance of the climate change issue was also highlighted by a visit of Sir Nicholas Stern, the author of the economic impact study released by the UK government. The former World Bank Chief Economist visited the Commission and briefed several commissioners (Dimas, Piebalgs), as well as the general secretariat and other departments on the recommendations of his report. In a related conference organised in the evening of 9 November by Brussels think tank CEPS (Centre for European Policy Studies), Professor Stern met with a selected group of industry leaders, NGOs and media.

Positions: 

The EU's resolve to remain in the forefront of global efforts to reduce greenhouse gas emissions is leading to increasing worries by industry that this "going it alone" strategy will undermine Europe's global competitiveness.

Although UNICE, the EU's main industry federation, did not wish to react to the Stern Report yet, it expressed its concerns about the new climate change debate. UNICE's energy expert Daniel Cloquet referred to an analysis  undertaken in 2005 by the EU's Joint Research Centre and the Institute for Prospective Technological Studies showing that a unilateral post-2012 mitigation strategy could, in the worst-case scenario, lead to a carbon price of around 92 euro.

According to UNICE, the EU should not try "to solve the challenge of climate change on its own". "The first priority," the federation said in a recommendation  to the EU's environment ministers in 2005 "is to successfully tackle the 'participation challenge,' ie the challenge for developed and developing countries to join together in creating a truly global strategy."

Nick Stern, on the other hand, warned at the CEPS conference that the EU should stay its climate change course. "If we give up, everyone will give up," he said.

Green NGOs took hope last week from the results of the mid-term elections in the United States. Stephan Singer of WWF Europe told journalists at a press conference that he expects serious changes in the US climate-change policy with Californian Democrat Barbara Boxer nominated to lead the US Senate's Environmental Committee. Boxer has on several occasions spoken out for a major policy shift on global warming. 

Next steps: 
  • On 13 November, the Commission will present a communication on the state of play of the European emissions trading scheme (ETS) as a preparation for the real review later.
  • On 10 January 2007, the Commission is expected to adopt a comprehensive "energy package" including a long-term strategy for a more coordinated EU energy policy.
  • In the beginning of 2007, the Commission will also bring forward a Green Paper on the EU's climate change policies post-2012.
Background: 

Climate change and energy issues are increasingly becoming the dominant themes in political Brussels. The upcoming revision of the EU's greenhouse-gas emissions trading scheme (ETS) as well as the Commission's expected critical review of related national allocation plans are the immediate drivers of this new focus. The recent Stern Report on the economics of climate change (see EurActiv 31 October 2006) has added to the urgency of discussing the Union's policies in these two areas.

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