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IP/08/1998
Brussels, 17 December 2008
Climate change: Commission welcomes final
adoption of Europe's climate and energy package
With today's vote in the European Parliament on the climate and energy
package, the EU has finalised a deal that will help Europe transform into a
low-carbon economy and increase energy security. Fully in line with the
Commission's proposals in January 2008, agreement has been reached on
legally binding targets, by 2020, to cut greenhouse gas emissions by 20%, to
establish a 20% share for renewable energy, and to improve energy
efficiency by 20%. Deals were hammered out on revisions to the emissions
trading system, the distribution of the reduction effort outside of the
emissions trading system, a legal framework for environmentally safe carbon
capture and storage (CCS) as well as on the related proposals on CO2
emissions from cars and on fuel quality. As the first region in the world to
commit to such far-reaching and legally binding emission reductions, Europe
is leading the fight against climate change. Today's vote is an important
contribution towards an ambitious international climate agreement to be
reached in Copenhagen by the end of 2009.
Commission President José Manuel Barroso said: "The EU's climate and energy
package is part of the solution both to the climate crisis and to the current economic
and financial crisis. It represents a green "new deal" which will enhance the
competitiveness of EU industry in an increasingly carbon-constrained world. Moving
to a low carbon economy will encourage innovation, provide new business
opportunities and create new green jobs."
Environment Commissioner Stavros Dimas said: "Today's decisive votes send a
clear signal to our international partners about our determination to address climate
change and should convince them to follow our example. This package provides the
concrete measures the EU needs to deliver on its target to reduce greenhouse gas
emissions by 20% by 2020. And it reconfirms our commitment to moving to a 30%
reduction as part of a comprehensive international agreement when other developed
countries undertake similar commitments".
Energy Commissioner Piebalgs said: "I am very pleased with the outcome. There
has been some tough negotiation and some long nights of debate, but the result is a
truly remarkable piece of legislation which puts the EU on track towards a lowcarbon energy economy in which renewable energy sources play a key role".
Environmental integrity maintained
Today's agreement maintains the architecture of the proposals put forward by the
Commission on 23 January 2008. At its heart are three commitments to be met by
2020: to reduce greenhouse gas emissions by at least 20%, to ensure that 20% of
final energy consumption is met with renewable sources, and to raise energy
efficiency by 20%. The package also contains a clear offer to go further and commit
to a 30% cut in the event of a satisfactory international agreement being reached.
The vote is a historic agreement on long-term binding emission reduction targets for
all sectors of the economy. No other group of countries anywhere in the world has
agreed on similar targets in the run-up to 2020.
Binding targets for Renewable Energy
The Directive sets legally binding targets for each Member State, in order to reach
our EU target of a 20% share of renewable energy in 2020. It creates cooperation
mechanisms so that we can achieve the targets in a cost effective way. It removes
administrative barriers and other burdens, confirms the 10% target for renewables in
transport and, in a world first, fixes biofuels sustainability criteria to ensure that we
only support biofuels that have no negative environmental impact.
A more ambitious Emissions Trading System
The extended EU Emissions Trading System (EU ETS) is the world's largest
greenhouse gas emissions trading system, and could now serve as the nucleus of a
much larger global carbon market. The improvements mean that from 2013 an
emissions cap will be set at EU level and cut each year to reach a 21% cut in 2020.
The agreement will increase the level of auctioning in the system. Whereas there is
an option for transitional free allowances that most new Member States could apply
for, the rule for power companies will be that they have to buy allowances. Industry
installations not subject to carbon leakage will be required to buy 20% of allowances
in 2013 rising to 70% in 2020 and 100% in 2027. Operators at risk of carbon leakage
that invest in the most efficient technologies will receive allowances for free in
accordance with a benchmark based on best available technology. Overall, more
than 50% of allowances will be auctioned from 2013, and the proportion will rise
each year.
The revised EU ETS allows the use of offset credits from outside the EU, but this
amount remains below half of the reduction effort in order to ensure a sufficient level
of emission reductions inside the EU.
Member States should now use at least half of their auctioning revenues on
measures to combat climate change.
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A fair contribution from all Member States
The agreement also has implications for small-scale emitters in sectors including
transport, buildings, agriculture and waste, which represent some 60% of total GHG
emissions in the EU. By 2020, emissions from these areas are to be reduced by an
average of 10% compared to 2005, shared out between Member States according to
differences in GDP per capita. The agreement maintains the national targets for
Member States, together with a linear legally binding trajectory for the period 20132020 with annual monitoring and compliance checks. Additional flexibility has been
added to the trajectory.
A framework for carbon capture and storage (CCS)
A Directive on geological storage of CO2 provides a legal framework to manage
possible environmental risks and liability issues. The reinforced carbon market will
provide a long-term incentive for investment, while up to 300 million allowances in
the new entrants reserve under the EU ETS will be made available to stimulate the
construction and operation of up to 12 commercial demonstration projects to capture
and store CO2, and for innovative renewable energy demonstration technologies in
the EU.
Binding targets for emissions from the new car fleet
Agreement was also reached on the proposal to set emissions standards for new
passenger cars which is an important tool to assist Member States in meeting their
emissions targets in the non-ETS sectors. The new legislation (along with
complementary measures such as the fuel quality directive) will set binding
emissions targets to ensure that emissions from the new car fleet are reduced to an
average of 120g CO2/km. Although the agreed legislation provides for a phasing-in of
the targets over the period 2012 to 2015 the overall ambition level of the
Commission's proposal is maintained through the setting of a stringent long-term
target of 95g CO2/km by 2020. This proposal will on average contribute about one
third of the reductions required from the non-ETS sectors.
The agreement on the fuel quality Directive will place an obligation on suppliers to
reduce greenhouse gases from the entire fuel production chain by 6% by 2020. A
review in 2012 will consider increasing the ambition level to 10% greenhouse gas
reduction by 2020 through the inclusion of international projects, carbon capture and
storage as well as electricity for cars.
A message to rest of the world
The adoption of the package means that the EU now has a strengthened set of farreaching legislative tools to share with the rest of the world.
The next step will be the technical implementation of today's agreements including
the establishing of rules for auctions, the determining the benchmarks for free
allocations and preparing regulations on reporting. Further adjustments will also be
needed when an international agreement on climate change is reached in
Copenhagen in 2009.
The revisions render the EU ETS fit to go global and constitute an important building
block for the establishment of a truly global carbon market.
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Further information:
ETS: MEMO/08/796
Effort-sharing: MEMO/08/797
CCS: MEMO/08/798
CO2 from passenger cars: MEMO/08/799
Fuel Quality: MEMO/08/800
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