europe’s leading role in combating climate change jos delbeke director, climate change & air...

Europe’s leading role in combating climate change

Jos Delbeke

Director, Climate Change & Air

Environment Directorate General

European Commission, Brussels

European Commission - Directorate General Environment – Climate change & air Directorate

Outline

1. Leadership through credible action: achieving the EU’s Kyoto target in 2008-2012

2. Leadership through thinking beyond 2012: The EU climate change policy proposal of 10 January 2007

3. Leadership through driving innovation towards a low GHG emission economy: the EU’s new industrial policy until 2020

Leadership through credible action: achieving the EU’s Kyoto target in 2008-

2012


EU progress towards implementing Kyoto

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EU-25 emissions

EU-25 existingmeasures

EU-25 additionalmeasures

EU-15 emissions

EU-15 existingmeasures

EU-15 additionalmeasures

EU-15 target (Kyoto)

Business as usual

Linear target path

Kyoto mechanismsand carbon sinks

2004:EU-15: -0.9%EU-25: -7.3%


ECCP I: progress so far(2001 European Climate Change

Programme)

Key ECCP measures Reduction potential (Mt

CO2-eq. p.a.)

EU-15, 2010

Entry into

force

Starting to deliver

EU emission trading scheme ~ NAP2 2003 2005

Link JI/CDM to emission trading ~ NAP2 2004 2005/2008

F-Gases Regulation and Directive on Mobile Air Conditioning

23 2006 2008

Directive on the promotion of electricity from renewable energy sources

100-125 2001 2003

Directive on the promotion of CHP 65 2004 2006

Directive on energy performance of buildings 35-45 2003 2006

Directive on the promotion of transport bio-fuels 35-40 2003 2005

Directive on the promotion of energy efficiency and energy services

40-55 2003 2006

ACEA voluntary agreement 75-80 1998 1999

Energy labeling directives 20 1992 1993


The EU’s flagship – its Emissions Trading Scheme

• Worldwide largest emissions trading scheme started on 1 January 2005 with a learning phase from 2005 – 2007 in all 27 Member States

• Covers 40 – 50 % of EU CO2 emissions• > 10,500 installations covering CO2 emissions from electricity

generators, heat & steam production, mineral oil refineries, ferrous metals production & processing, cement, lime glass, bricks and ceramics, pulp & paper sector

• Annual monitoring, reporting & verification (15 May)• Open scheme: links with emission reduction projects abroad

(Clean Development Mechanism & Joint Implementation)• Least cost solution - promoting energy efficiency, operational

changes, take-up and improvement of clean technologies• Currently: Assessment of National Allocation Plans for the Kyoto

period (2008 – 2012)


Development of EU ETS allowance trading in 2005-6

Allowances prices for Phase I (blue line)

and Phase II (red line)

Volumes of allowances traded (in millions)

Source: Point Carbon


> 540 Million tonnes of CO2eq (2008-

2012) ~ €2.7 billion excluding

demand from companies in the EU-

ETS

Million tonnes of CO2 eq.

Austria 45.00

Belgium 37.70

Denmark 21.00

Finland 12.00

Ireland 18.03

Italy 95.00

Luxembourg 23.65

Netherlands 101.00

Portugal 29.80

Spain 159.15

Sweden 1.10

Member States invest in emission reduction projects abroad, 2008-2012

(in red: NAP2 decisions up to 31 January 2007)


Additional measures under ECCP II

• ECCP I review: integration of results in 10 January 2007 Communication “Limiting Global Climate Change to 2°C: The way ahead for 2020 and beyond”

• Aviation: Legislative proposal integrating aviation into EU ETS (December 2006)

• Fuel quality directive: Legislative proposal (January 2007)

• CO2 and Cars: Communication (February 2007) and legislative proposal (end 2007)

• Impacts and Adaptation: Green Paper on Adaptation (May/June 2007)

• Carbon Capture and Geological Storage: Communication on carbon capture and geological sequestration (2nd half 2007)

• EU ETS review: Legislative proposal (end 2007)

if adopted timely, these

proposals will deliver

for reaching the EU’s

Kyoto target

Post 2012


Aviation & the EU emissions trading scheme

• Key elements of Dec 2006 legislative proposal:– 2011: flights within the EU– 2012: all arriving & departing flights– Aircraft operators responsible– Each operator administered by one

Member State– Allocations mainly for free, benchmark– Some auctioning – Access to JI/CDM credits– Comparable treatment to other ETS

sectors

• Next steps:– Adoption by Council and the European

Parliament (1-3 years) – Pursue parallel action within ICAO

EU GHG emissions by sector as an index of 1990 levels

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80

100

120

140

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180

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

Year

Index

100=

1990

Int aviation

Energy

Industrial Processes

Agriculture

Waste

Total (w ithout LUCF)

Transport


EU Energy Efficiency Action Plan (October 2006)

• Overall objective: Saving 20% energy by 2020, energy consumption reduced by more than €100 billion annually by 2020; around 780 millions tonnes of CO2 avoided yearly

• Action Plan proposes numerous measures to make energy appliances, buildings, transport and energy generation more efficient

• Implementation in the next 6 years

Leadership through thinking beyond 2012: The EU climate change policy

proposal of 10 January 2007


The EU’s 2 degrees Celsius objective

22°C°C

Source: IPCC 2007


Global emissions until 2060 to remain within 2 °Celsius

Source: Malte Meinshausen 2006


EU alone cannot solve the climate change problem

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

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uiv

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ts

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).

... If Annex I alone reduces emissions to zero

... Global emission path compatible with 2°C


Action by developed countries

• Common but differentiated responsibility: developed countries to make most of the effort

• Reduction efforts:– 30% by 2020– 60-80% by 2050

• Emissions trading, linking domestic schemes and global carbon market

• Binding and effective rules for monitoring and enforcing commitments

Developed countries GHG emissions

0%

20%

40%

60%

80%

100%

120%

140%

1990 2005 2020 2030 2040 2050

Baseline Reduction Scenario


Action in developing countries

• Reduce emissions growth • Absolute reductions after

2020• Toolbox:

– Sustainable development policies

– New approach to CDM– Improved access to finance– Sectoral approaches– Quantified emission limits– No commitments for least

developed countries

Developing countries GHG emissions

0%

40%

80%

120%

160%

200%

240%

280%

320%

1990 2005 2020 2030 2040 2050

Baseline Reduction Scenario


Further elements

• International research and technology cooperation– Large-scale technology demonstration– Quantification of regional and local impacts and adaptation

and mitigation strategies• Action to halt deforestation within two decades and

reverse afterwards– Large-scale pilot schemes

• Adaptation measures– Integrate in public and private investment decisions– Enhanced alliance building with developing countries building

on EU action plan on climate change and development• International agreement on energy efficiency standards


Technologies that can reduce global CO2 emissions from energy combustion

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10000

15000

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25000

30000

35000

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1990 2000 2010 2020 2030 2040 2050

Mt

CO

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Energy savings

Fossil fuel switch

Renewable energies

Nuclear energy

Carbon sequestration

Emission of reduction case

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It is technically feasible: e.g. the energy sector


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GDP base

GDP 2°C

It is economically affordable


Benefits and Costs

• “Winning the Battle” & Stern Review: benefits of limiting Climate Change outweigh costs of action

• Costs of inaction: 5-20% of global GDP (Stern Review)

• Costs of global action (2030):– Investment costs: 0.5% of global GDP / year– Reduce global GDP growth by 0.19% / year

(Expected global GDP growth of 2.8% / year)

• Co-benefits:– Increased energy security– Improved competitiveness through innovation– Health benefits from reduced air pollution


EU leadership

– Current international negotiations are stuck: “US pointing to China, China pointing to the US”

– Therefore, firm independent EU commitment to achieve at least 20% GHG emission reductions by 2020, compared to 1990 levels

– Cost of unilateral action: up to 0.09 % of annual GDP w/o calculating co-benefits

→ New industrial policy

Leadership through driving innovation towards a low GHG emission economy: the EU’s new industrial policy until 2020


Making the EU economy most energy efficient & clean

“An Energy Policy for Europe”• Internal Energy Market• Solidarity between Member States securing the supply

for oil, gas and electricity• Energy efficiency (20% by 2020)• Renewable energy (20% by 2020)• Biofuels (10% by 2020)• Low CO2 fossil fuels

– 12 demonstration plants by 2015– CCS obligatory for coal fired power from 2020?

• European Strategic Energy Technology Plan• External energy policy• Nuclear


Making the EU the most innovative economy

• 7th Framework Programme for Research and Technology Development (2007 – 2013):– Total FP-7 budget: €32.37 billion– Energy: €2.30 billion– Environment (incl. climate change): €1.90 billion– Transport: €4.18 billion

• EU Technology Platforms• European Institute of Technology• Third country participation encouraged


EU Technology Platformon Zero Emission Fossil Fuel Power Plants (ZEP)

• “To enable European fossil fuel power plants to have zero emission of CO2 by 2020”

• 25 Members, balance between regional and sectoral origins (Utilities, Energy Companies, Equipment Suppliers, Researchers, Authorities, ENGOs)

• 5 working groups (Capture, Storage, Infrastructure, Market & Regulation, Communication & Public Acceptance)

• Producing Strategic Research Agenda and Deployment Document (adoption mid-2006)

• 1st Call for Proposals under 7th Framework Programme (beginning 2007)

0%

10%

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30%

40%

50%

60%

70%

2000 2010 2020 2030 2040 2050 2060

EU25 Developed Countries Developing Countries

Penetration of ZEP in the energy sector, 2010-2060


Creating a global carbon market: EU ETS Review

• Improve EU ETS using implementation experience• Streamline current design:

– More harmonised approach to cap-setting and allocation– More predictability and certainty– More harmonised approach to new entrants and closures– Harmonisation of accreditation and verification

• Expand coverage:– further sectors & gases

• Link with other emissions trading schemes


Co-operating with 3rd countries

e.g.• EU-India Initiative on Clean Development and

Climate Change (Sept 2005)• EU-China Partnership on Climate Change (Sept

2005)• EU-US High level dialogue• EU-Russia Partnership in the field of energy

and Kyoto implementation• Global Energy Efficiency and Renewable

Energy Fund• Carbon Sequestration Leadership Forum

(CSLF) and International Partnership for a Hydrogen Economy (IPHE)


Three essential elements of EU leadership

• Leadership starts at home. EU is determined to reach its Kyoto target demonstrating to the rest of the world that an economy of more than 490 million citizens can flourish while, at the same time, reduce its greenhouse gas emissions.

• Kyoto is only a first insufficient step. Further global action needs to be taken urgently. EU Heads of State have made a feasible proposal. EU is ready to negotiate and to take on new commitments for deep long-term emission cuts.

• EU is determined turn the climate change challenge into an opportunity for EU energy security, innovation, its international competitiveness and the renaissance of its industry and economy.


All documents in the climate and energy package:http://europa.eu/press_room/presspacks/energy/index_en.htm

http://ec.europa.eu/environment/climat/future_action.htm

http://europa.eu/press_room/presspacks/energy/index_en.htm



europe’s leading role in combating climate change jos delbeke director, climate change & air...

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eu progress

promotion of energy

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energy services

global climate change

emission reduction projects

promotion of electricity