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International Climate Action – EU Contribution

EU – Central Asia Working Group onEnvironmental Governance and Climate Change

2nd Meeting13-14 September 2012, Almaty

DG Climate Action

European Commission

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OVERVIEW

Selected scientific points with policy relevance

International negotiations: Maintaining our high level of ambition and strong involvement in the UNFCCC process

Diplomacy and cooperation

engaging partner countries

Credibility –> leading by example:

Comprehensive Domestic climate portfolio - the EU Climate and Energy package

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Climate change threatening future economic growth

2005 : US$ 228 billion

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Global Player : per capita emissions X population

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Vision: keep Temperature increase

below 2°C

Global Peak by 2020

Global -50% bis 2050 rel. 1990

Industrialised countriesto cut by 80-95% by 2050 rel. 1990

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INTERNATIONAL CLIMATE NEGOTIATIONS

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• 2007 Bali: defines scope for a new comprehensive climate framework in parallel to negotiations on a 2nd commitment period (CP2) under Kyoto (mitigation, adaptation, technology, deforestation, finance)

• 2009 Copenhagen: “Accord” – no consensus on a legally binding agreement

• 2010 Cancún: adoption of a balanced package of decisions …

some 90 developed and developing countries set domestic targets

for reducing / limiting emissions - important step but only 60% of what is needed to stay below 2°C

… while important questions remain unresolved

(peaking and long-term goal, insufficient level of ambition, long-term finance)

• 2011 Durban: New Durban platform for enhanced action

How far have we come ?

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Durban: Success for climate diplomacy1. Durban Platform for Enhanced Action: negotiating roadmap

for a new legal instrument for all by 2015, effective from 20202. Progress on 2nd commitment period Kyoto Protocol3. Implementation Cancun agreements4. Finance package

• Perceived as a breakthrough, but we are not yet on a 2 degree trajectory and politics remain challenging

NOTE: Roadmap with ambition before and after 2020• « Legally binding » & « for all »?!

• Kyoto Protocol – sensitive issues remain open• Finance framework in place – next: sources!

• Durban also the beginning of a geopolitical change?

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KEY ISSUES upcoming negotiations

DURBAN PLATFORM: towards a single, fair and comprehensive legally binding agreement under the UNFCCC applicable to all Parties to be adopted by 2015

–> 2012 agree work programme

Address the gap in the collective level of ambition of the Cancun pledges before 2020 and before the new protocol in force

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Elements for a new protocol

• Overall objectives• Mitigation and accounting (incl. Flexible

mechanisms)• Compliance• Adaptation• Means of implementation (finance, Technology

transfer, capacity building)• Transparency of action and support

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Next stop DOHA

• 2012 is a pivotal year in making Durban operational • need an ambitious and expeditious work plan for the Durban

Platform on Enhanced Action• cannot allow the progress made in Durban to be unpicked • a major challenge for the next years is the "ambition

gap“• EU ready to take our part and move the Durban package

forward, notably on the Kyoto side

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Why a legally binding agreement?

• Strongest signal of governments’ commitment • treaties have the highest international status of any

government undertaking • they must be implemented by the Parties in good faith,

and are binding under international law

• Certainty • certainty that national efforts will be reciprocated

drives ambitious action and broader participation  • confidence built on the certainty of government

action will encourage greater private sector investment and send positive signals to the carbon

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Ultimate goal: ensure effective domestic action globally by all relevant emitters

A legally binding treaty, containing specific and enforceable obligations the highest form of expression of political will and commitment at the international level.

Ratifying such a treaty signals a Party’s serious intent to act in return it generates reciprocity and good will key

elements essential to improve ratification of and compliance with a treaty

domestic ratification procedures itself has a value as such – legislative domestic act political debate, stakeholder involvement and engagement of civil society

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Leading by example the EU Climate and Energy package

Emissions Trading Directive 2009/29/EC in order to reduce greenhouse gas emissions in the sectors covered by the Directive by 21 % by 2020 compared to

2005

Effort Sharing Decision (ESD) 406/2009/EC in order to meet national emission limits overall reduction of the EU's GHG emissions in the covered sectors by 10% by

2020 compared to 2005.

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EU domestic action: (1) Overall framework

EU to meet Kyoto targets 2008-2012

Enacted legislation for -20% GHG by 2020

Conditional step-up to -30%

Emission reduction objective for all developed countries of 80-95% by 2050

Binding national targets to increase share of renewables in EU’s energy mix to 20% by 2020

Improve energy efficiency by 20% by 2020

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EU domestic action: (2) Establishing

a carbon market

• EU Emissions Trading System as world’s largest carbon market

• Move to more auctioning

• Benchmarked allocations to industry

• Integrating more sectors: aviation, some industrial processes

• Nucleus for an international carbon market

• Major demand for international credits

• Linking with other systems

– Switzerland, Australia

• New/emerging domestic carbon markets: New Zealand, Korea, China, Mexico, Brazil

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EU domestic action: (3) Integration of

aviation in the EU ETS

• The coverage of EU Emissions Trading System extended to aviation

• Internal, outgoing and incoming flights

• Legislation was agreed in 2008 and Implementation work is well on track

• EU moves first, while being keen to collaborate with and further progress in ICAO to address global aviation emissions

• Approach is consistent with CBDR principle and ensures fair competition in international aviation

• All flights between Europe and a given third country destination covered, independent of the airline operating the flight

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Efficient pathway:-25% in 2020-40% in 2030-60% in 2040

A cost-efficient pathway towards 205080% domestic reduction in 2050 is feasiblewith currently available technologies,with behavioural change only induced through pricesIf all economic sectors contribute to a varying degree & pace.

0%

20%

40%

60%

80%

100%

1990 2000 2010 2020 2030 2040 2050

0%

20%

40%

60%

80%

100%

Current policy

Power Sector

Residential & Tertiary

Non CO2 Other Sectors

Industry

Transport

Non CO2 Agriculture

EU domestic action (4) : Preparing for 2050

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EU domestic action: (5) Stimulating low carbon investments

• Investment needs: € 270 billion annually 2010-2050, equivalent to 1.5% of EU GDP

• Commission proposal for next multiannual financial framework (MFF)

• ≥ 20% climate related (> € 200 billion 2014-2020)

• Energy and transport infrastructure, energy efficiency, renewables, agriculture, …

• SET-Plan to support research & innovation

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Conclusion: The EU’s way forward

Towards a comprehensive legal framework covering all major economies – political commitment to continuing Kyoto Protocol

Steam ahead in EU with climate action, through legislation (ETS, renewable energy, efficiency) and finance (MFF)

Foster bilateral and pluri-lateral cooperation on low carbon policies

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2121

Thank you for your attention

For further information:http://ec.europa.eu/clima

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