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Contents Business Edition
nr. 40
22 february 2007

Environment Council backs 20% emissions reduction by 2020

Emissions trading will put airlines under pressure

GreenPrices Market Monitor February 2007

Consultation launched on barriers to renewable electricity development

Coupling electricity markets first step to one European market

Hungary to sell second batch of carbon allowances

Editorial: A Brigth Idea

In Brief

Agenda

Environment Council backs 20% emissions reduction by 2020 
The Environment Council supports most of the measures proposed by the European Commission to tackle climate change. In its conclusions of 20 February, the Environment Council gave a green light to the proposed reduction of greenhouse gas emissions of 20% by 2020 compared to the 1990 level, the inclusion of aviation in the EU Emissions Trading Scheme (ETS), and the reduction of emissions from cars to 130 grammes per kilometre.  

On 10 January, the European Commission published a comprehensive energy package in which it proposed its ambitious targets. In general, the Environment Council backs the idea of Europe taking the lead in tackling climate change. The Environment Council agrees to these targets, but is divided on whether the targets should be binding or not. The Environment Council thus aligns with the decisions from the Energy Council of last week. The Energy Ministers were also divided on whether targets should be binding or indicative.

The Environment Council wants an emissions reduction of at least 20% by 2020 compared to 1990 levels. Furthermore, the Environment Council is willing to commit to 30% emissions reduction by 2020 in negotiations for a global agreement for the period beyond 2012. In the longer term, the Environment Ministers approve a 50% emissions cut by 2050 compared to 1990 levels and they want to see an implementation of these commitments in national policies.

Member States will get their own national targets for emissions reductions within their power and industry sectors under the EU ETS. The details of this burden sharing are to be sorted out in further discussions. German ederal Environment Minister Sigmar Gabriel pointed out that Member States with strong economic development will have to bear a relatively higher burden.

Aviation in ETS

The Environment Council supports the Commission’s proposal to include aviation in the EU ETS. The European Commission proposed in December last year to introduce aviation into the EU ETS in 2011 for all domestic and international flights between EU airports. From 2012 the scope should be extended to all international flights to or from EU airports.

Car emissions

The Environment Council has also given a green light to the proposed emissions reduction target from car engines to reach 130 grammes per kilometre by 2012. The Commission also proposed to cut emissions further, down to 120 grammes per kilometre through the use of low friction tyres and more efficient air conditioners as well as from the use of low carbon fuels. Several Environment Ministers expressed some doubt about these complementary measures.

The conclusions of the Environment Council will be presented to EU leaders for final endorsement at the Spring Summit on 8 and 9 March in Brussels.

 
Source: GP Newsdesk

             
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