MEPs give first reactions to climate change and energy package

 

The President of the European Commission, José Manuel BARROSO, unveiled to the European Parliament on Wednesday the Commission's plans to tackle climate change and to ensure Europe has more secure energy supplies in future.  At the heart of the proposed legislation is the principle of "20 / 20 / 20 by 2020" (a 20% increase in energy efficiency, a 20% cut in greenhouse gases and a 20% share of renewables in total EU energy consumption, all by the year 2020).  The package is a set of legislative proposals on emission cuts, renewable sources, carbon capture and revision of the emission trading scheme.

 

According to Mr Barroso, "The struggle against climate change and the quest for secure, sustainable and competitive energy touches on every European, every day". Indeed, he added, "Europeans want a vision, and a plan of action" on this issue.  He welcomed the EP's backing so far, saying "The clear commitment of this Parliament to this cause has been essential.  Your work over the past year has been critical in building the political momentum in favour of action."

 

The Commission president then outlined the package, which aims "to bring about a 20% cut in our greenhouse gas emissions by 2020, and be ready to step up to 30% with an international agreement". 

 

The five main points of the package are:

 

- an updated Emissions Trading System;

- specific, binding national targets;

- a new approach to promote renewable targets, again including binding national targets;

- new rules to stimulate carbon capture and storage;

- new state aid rules.

 

In view of growing concern over biofuels (which will have to account for 10% of vehicle fuel), Mr Barroso stressed that environmental sustainability would also be taken into account.

 

He then explained that the package was prepared with five key principles in mind:

 

- respecting the targets; 

- recognition of Member States' different investment capacities and starting points; 

- competitiveness, by minimising the costs to the European economy;

- the need for an international agreement to cut greenhouse emissions; 

- the need to start work now to halve global emissions by 2050.

 

On climate change, action would be cheaper than inaction, said Mr Barroso: the cost of the proposals would be "less than 0.5% of GDP by 2020", which "amounts to about €3 a week for everyone".  He added, "Even on the most optimistic assumptions of the Stern Report, the cost of inaction is more than ten times that".   Moreover, "every day the price of oil and gas goes up, the real cost of the package falls.  Instead of costs, we really should be talking about gains for the EU".

 

As to the concerns expressed by business, Mr Barroso acknowledged that "there is no point in Europe being tough if it just means production shifting to countries allowing a free-for-all on emissions".  Thus, under the package, "energy intensive industries would have ETS allowances free of charge" and "if our expectations about an international agreement are not met, we will look at other options such as requiring importers to obtain allowances  alongside European competitors", provided this was compatible with WTO rules.

 

The Commission president added "we must not forget the huge economic opportunity represented by Europe's transition into a low-emissions economy", adding that "There are real opportunities there: the renewables sector alone will bring one million jobs by 2020".

 

In conclusion, he saw the package as "an opportunity for Europe to show itself at its best.  Tackling an issue of fundamental long-term importance.  Using the EU's continental scale to best effect."   Indeed, "if some have doubts about the European Union, this kind of policy shows why we need a strong EU more than ever", since "even bigger Member States do not have the leverage to push this forward". 

 

 

Marianne THYSSEN (BE) speaking for the EPP-ED group said: "Today is a historic day today. A day which will influence our way of thinking, behaving and living.  This Commission will be remembered as the Commission which presented  a masterplan for energy.

 

Europe is showing it is not afraid to shoulder responsibility for climate. But we need to reconcile ambition with feasibility.

 

We feel the plan is balanced and we support the 5 underlying principles.  We will also be looking at the proposals for each Member Stare to see if they are fair and feasible.

 

We know there will be a lot of proposals to weaken and water down the proposals but we are basing ourselves on the principle that those who shout loudest won't necessarily get their way.

 

Inaction will cost us more than action.  We need a balance between reaching climate targets and building a strong economy, but all of us, business and citizens, are going to have to change."

 

Hannes SWOBODA (AT) speaking for the Socialist group said: "You have set the right goals.  When it comes to implementation, on biofuels for example, we are sceptical about present technologies.  We have to have better technology for biofuels and that is something we'll need to look at in our budget discussions.

 

Many will say that a 20% cut is too little, but I agree that there is no point Europe going alone unprotected.  We need international agreement as soon as possible and need to be thinking now what we should to do if we don’t get these agreement - would be go for import duties then or a CO2 tax?

 

We need to look at what we achieved with the REACH chemicals laws as a model for this package.  With such an alliance of ecologists, industry and workers we can take forward our economic goals and ensure a cleaner Europe."

 

Graham WATSON (ALDE, UK) said: "Climate change is the biggest challenge facing this planet.  The biggest problem facing our governments and the biggest worry facing our citizens. Yet for all the lip service paid to environmental protection  Europe's leaders have failed to put their money where their mouth is and pay the price for a cleaner, greener world. 

 

It's high time our leaders realised a percentage here and a decimal point there won't make a blind bit of difference Because percentages pale into insignificance when compared to the cost of doing nothing. The Stern Report - the most authoritative environmental survey ever published - estimates global warming will cost the world up to £3.68 trillion unless it is checked within a decade. That means spending 1 per cent of global GDP now,  of facing a bill up to 20 times higher, later, for damage caused by letting it continue. Seen in that light, the Commission's proposals while a welcome - and, by today's standards,  radical - departure from short term economic thinking are still only the tip of the iceberg when it comes to tackling climate change".

 

 

Johannes BLOKLAND (IND/DEM, NL) noted the criticism levelled against the Commission's proposals by heavy industry. The impact of the legislation, he acknowledged, "will be painful for some sectors", "but we must take these steps". In this light, he added, we "look forward" to the provisions on Carbon Capture and Storage (CCS). The  biofuels target, meanwhile, "is one we are critical of": when looking at biofuels, he said, "we need to make sure that sustainability is taken into account".

 

The UN conference at Bali laid the groundwork for an international agreement on climate change, recalled Irena BELOHORSKÁ (NI, SK). The EU, she urged, "must take leadership" in future climate talks. However, inasmuch as Europe needs the developing world and India and China to get on board - "China and India must be compensated for reducing carbon emissions", she also noted - "our efforts will be useless until the US starts taking climate change seriously."

 

British and Irish speakers who participated in the debate to follow shortly.