European Commission: DG Environment What is happening in the European Union on climate change? Artur Runge-Metzger European Commission.

European Commission: DG Environment

What is happening in the European Union on

climate change?

Artur Runge-Metzger

European Commission


1. European Union – present situation


The EU’s projected progress towards its Kyoto Commitments

90

92

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98

100

102

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106

108

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1990

1995

2000

2005

2010

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year em

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ons=

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EU-25 emissions

EU-25 existing measures

EU-25 additionalmeasures

EU-15 emissions

EU-15 existing measures

EU-15 additionalmeasures

EU-15 target (Kyoto)

Business as usual

Linear target path

Kyoto mechanisms andcarbon sinks


The EU’s share of greenhouse gas emissions

Figure 1: Projected development of greenhouse gas emissions in different regions of the world

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1990 2050

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Rest of World

Other annex 1

EU

Source: Greenhouse gas reduction pathways in the UNFCCC process up to 2025, CNRS/LEPII-EPE, RIVM/MNP, ICCS-NTUA, CES-KUL (2003).


Energy mix, EU-15, business as usual


Europeans are feeling the ‘heat’

Europe has warmed more than the global average, with a 0.95 °C increase since 1900.

Temperatures in winter have increased more than in summer.

The warming has been greatest in the most northern latitudes and the Iberian Peninsula.

From 1990 to 2100, the global average temperature is projected to increase by 1.4–5.8 °C and 2–6.3 °C for Europe.


The extreme summer 2003 could become normal in a few decades onlyAverage temperature for June July August 2003: Observations ( + ) simulation with scenario A2

Source: Meteo France

2003


2. Selected EU policies and actions



EU climate policies: The ‘broadbrush’ overview

1st commitment period

US EU

Monitoring Decision

2000 2001 2003 2010 20111999 20042002

ECCP I

EU ETSEU ETS DirectiveLinking DirectiveRegistries RegulationMonitoring, Reporting Verification Guidelines

ECCP IISectoral studies

2005 2006 2007 2008 2009 2012

Kyoto in force

US withdraws

Marrakech Accords

Kyoto agreed

Preparation Negotiated In force Review


European Climate Change Programme (ECCP) – engagement of social actors

Working groups- Emissions trading- Flexible mechanisms- Energy supply- Energy demand- end-use equipment- Transport- Industry- Fluorinated gasses- Research- Agriculture- Sinks agr. soils- Forestry sinks

ECCP steering committee

ECCP Principles •integration •transparency•stakeholder consultation

•group expertise •build consensus

ECCP Approach •reduction potential•cost-effective•cross-sectoral•time frame for implem.•ancillary effects

WG Reports/

P&M analysed

conclusions

Commission action plan


ECCP:Recently adopted domestic

measuresCross-cutting issues• Directive on GHG emissions trading within the Community (Oct. 2003)• Linking project-based mechanisms to GHG emissions trading (Oct. 2004)• Decision for monitoring Community GHG emissions and for implementing the Kyoto Protocol (Feb. 2004)

Energy• Directive on the promotion of renewable energy sources (Sept. 2001) • Directive on taxation of energy products (Oct. 2003)• Directive on energy performance of buildings (Jan. 2003)• Directive on the promotion of co-generation (CHP) (Feb. 2004)

Transport• Promotion of the use of bio-fuels for transport

Agriculture (Biofuels, Cross compliance), Landfill Directive


Emissions trading: EU is implementing a company-based scheme since 1.1.2005

CO2 emissions from energy intensive industry above specific capacity thresholds (45 – 50 % of EU CO2 emissions)

Around 10,500 installations electricity generators heat & steam production mineral oil refineries ferrous metals: production

& processing cement, lime glass, bricks and

ceramics pulp & paper sector


Use of Kyoto Mechanisms: Planned purchases by Member States (in addition to company use!)

Almost 520 Million tonnes of CO2eq (2008-2012)

Allocated resources thus far: € 2.7 billion

Million tonnes of CO2 eq.

Austria 35.00

Belgium 42.00

Denmark 22.50

Finland At least 3.0

Ireland 18.50

Italy 198.00

Luxembourg 15.00

Netherlands 100.00

Spain 100.00

Sweden At least 5.0


ECCP “push” policies: Development and demonstration of new technologies

Research & Technology Development: 6th Framework Programme (5-yr): energy (€ 800

million), transport (€ 600 million), global change and ecosystems (€ 700 million) or more than € 420 mill p.a.

Financial Perspectives 2007-2013 (state of negotiations): energy (€ 2.2 billion), transport (€ 4.1 billion), environment (€ 1.8 billion) or more than € 1.1 billion p.a.

Technology Platforms: hydrogen and fuel cells, zero emission fossil fuel power plants

Demonstration programmes: Intelligent Energy for Europe (e.g. ALTENER, SAVE,

COOPENER, STEER) LIFE, LIFE+ Competitiveness and Innovation Programme (2007-

2013, proposed)


ECCP:Ongoing domestic legislative

work….

Energy• Proposal for a framework directive on eco-efficiency

requirements for energy-using products• Proposal for a Directive on energy end-use efficiency and

energy servicesTransport• Proposal for improvements in infrastructure use and charging • Proposal on special tax arrangements for diesel fuel used for

commercial purposes and on the alignment of excise duties on petrol and diesel fuel

• Proposal for a regulation on the granting of Community financial assistance to improve the environmental performance of the freight transport system (Marco Polo I and II program)

Products• Proposal for legislative action on fluorinated gases


ECCP II long-term challenge: Making the EU fit for post-2012

Aviation – Start Nov. 2005 Legislative proposal Integrated approach on CO2 emissions of light duty

vehicles – Start December 2005 Revised Community strategy to reduce CO2 emissions from light-duty vehicles (end 2006)

Carbon dioxide capture and geological storage – start March 2006 (report June 2006) Legislative proposal (2007)

Impacts and Adaptation – start April 2006 Green Paper on adaptation (November 2006)

EU ETS Review – start after the summer break 2006 legislative proposal mid-2007

Sectoral studies – 2006-08: In-depth sectoral studies assessing emission potential and establishing marginal abatement costs groundwork for legislative proposals after 2008


3. Building together another future


The EU’s level of aspiration

22°C°C


Deep reductions are required

• Non-action is not a feasible option. The more action is postponed, the greater the risk of irreversible change

• Well below 550 ppm• Global emissions likely to grow within next

two decades and then reduce by at least 15 % but perhaps as much as 50 % by 2050 compared to 1990

• Explore pathways for industrialised countries to reach cuts of 15 – 30 % by 2020, 60 – 80 % by 2050 compared to 1990

• “Keeping the door open” strategy


1990 2000 2010 2020 2030 2040 2050

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tCo2

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P (

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emissions 650 ppmemissions 550 ppmGDP referenceGDP 650 ppmGDP 550 ppm

Reducing global emissions is affordable through global action

Reversing global emission trends by 2025 would reduce global GDP in 2025 by about 2.4 % compared to BAU while GDP would more than double – assuming gradual participation of all countries


- negotiation space

Five essential elements:1. Build on Kyoto2. Broaden participation 3. Include more sectors and all gases4. Deploy and develop technologies5. Adapt to the effects of residual climate

change


Total BAU investment: US$ 17 trillion incl. Universal Access to Electricity until 2030

Price tag for climate-friendly: + 15 % = US$ 2.6 trillion in 25 years (~ 0.3 % of global annual GDP); i.e. approximately US$ 100 billion per year of which ~ 50 % in developing countries (IBRD: US$ 20–120 billion)

Whatever we decide, we must rise to the challenge: e.g. incremental finance required in the energy sector


Total BAU investment: US$ 17 trillion incl. Universal Access to Electricity until 2030

Price tag for climate-friendly: + 15 % = US$ 2.6 trillion in 25 years (~ 0.3 % of global annual GDP); i.e. approximately US$ 100 billion per year of which ~ 50 % in developing countries (IBRD: US$ 20–120 billion)

Annual Official Development Assistance (ODA) = US$ 100 billion (- but only US$ 6.2 billion for the energy sector)

World Bank (2005): US$ 1.8 billion for the energy sector

Global Environment Facility = US$ 1.7 billion over 14 years

CDM: US$ 5-7 billion for 2008-2012

Whatever we decide, we must rise to the challenge: e.g. incremental finance required in the energy sector


Creating international political momentum

Platforms: UNFCCC G8, esp. Gleneagles Dialogue, IBRD Investment Framework,

IEA Bilateral Summits (US, Russia, India, China, Japan…) Climate Change & Energy Partnerships (India, China,

Russia…) Strengthen policy analysis and dialogue (e.g. BASIC, IEA…) US-led technology initiatives (CSLF, hydrogen,…)

Instruments: Carbon Market, e.g. Clean Development Mechanism (€ 2.7

billion from MS, total 2.1 bn tonnes CO2eq by 2012 of which almost 90 % through CDM)

Country Strategy-based funding (e.g. policy dialogues, Energy-Environment-Programs)

New Public and Public/Private Partnership funding instruments: European Investment Bank/funding for CCS

Research and Technology Development Funds


http://http://europa.eu.int/europa.eu.int/comm/comm/environment/environment/climat/climat/home_en.htmhome_en.htm

European Commission: DG Environment What is happening in the European Union on climate change? Artur Runge-Metzger European Commission.

Documents

environment slide

energy directive

energy proposal

environment energy mix

environment emissions

environment europeans

proposed slide

usual slide