Climate Change Package

Dear Ram,

Following your previous e-mail on this issue, I am writing to update you on Labour MEPs work on climate change in the European Parliament.

On the 17th December 2008 MEPs and national ministers reached a final agreement on a package of six new climate change laws. These laws will deliver the EU’s target of reducing CO2 emissions by 20% (or 30% if there is an international agreement) by 2020 and increasing the share of renewable energy to 20%. There is no other country in the world which has such an ambitious and comprehensive plan to reduce emissions in the period 2013-20.

Following nearly a year of discussion, votes and negotiations, the final agreement was approved by a huge majority of MEPs and welcomed by both industry and environmental NGOs as a balanced and effective set of new climate change laws. Some of the key demands of the European Parliament which are taken on board in the final package include the following:

o An expanded and strengthened Emission Trading System (ETS) which will require every industrial company to make major cuts in their emissions. The majority of the ‘allowances to pollute’ will now have to bought, rather than be given for free. In addition, at least half of the revenue that will be created should be earmarked for climate change measures in the EU and developing countries.

o An individual target for each Member State for sectors not covered by the ETS. MEPs made sure that strict limits were placed on the amount of emissions that national governments could offset using project credits in developing countries. A new quality assurance mechanism was also introduced to ensure that the projects represent real, verifiable and sustainable emission reductions. MEPs also insisted that a penalty mechanism was included in the final agreement which means that if a Member State misses its annual target, it gets an even tougher target the next year.

o A huge expansion of renewable energy, including a binding target of 20% of energy consumption from renewable sources by 2020. This target is expected to produce up to 160,000 new ‘green’ jobs in the UK over the next 12 years. Following concerns about the impact if increased biofuel production, the final agreement includes strict environmental and social sustainability criteria. These criteria are the first of their kind in the world and we hope they will be quickly taken on board by other countries.

o A tough binding target for reducing CO2 emissions from cars which is expected to deliver a 60% reduction in CO2 emissions by 2020. MEPs made sure that car manufacturers will make these emission reductions through a “stick” of a tough penalty system and a “carrot” of super credits for very low emission cars.
o A new funding mechanism, worth around 9bn Euros, for demonstration projects of Carbon Capture and Storage (CCS) which will help not only the EU tackle emissions from coal-fired power stations, but also other countries such as China. In addition, a new law will make it mandatory for all new coal-fired power stations to be built “capture ready” so it can be retrofitted with CCS once the technology becomes commercially available.

These are the highlights of a package of new laws which will prove to the rest of the world that the EU has stopped just talking about climate change, but is now acting. In the run up to the Copenhagen international climate change talks next year, this package will be closely scrutinised by other countries. Labour MEPs hope that it will prove to rest of the developed world that it is possible to reduce emissions without reducing prosperity and that we have a responsibility to lead the way in terms of tackling climate change.

I hope this information is helpful and you can follow Labour MEPs future work on the environment and other issues on the website www.eurolabour.org.uk.

Merry Christmas and best wishes!

Linda McAvan MEP
Labour’s Spokesperson for Climate Change in Europe