Israel Rafalovich on European Union Environmental Plans

E.U. Energy Efficiency Action Plan

Brussels - In a step towards meeting the energy challenges facing the European Union, the European Commission has presented an action plan.

It is a package of priority measures covering a wide range of cost effective energy efficiency initiatives. These include actions to make energy appliances, buildings, transport and energy generation more efficient.

All together over 75 measures are set forth.

The action plan will be implemented over the next six years and is in response to the call of Head of States for a realistic energy efficient strategy. It underlines the importance of minimum energy performance standards for a wide range of appliances and equipment and for buildings and energy services.

The plan emphasises the considerable potential for reducing losses in the generation, transmission and distribution of electricity. It also proposes targeted instruments to improve the efficiency of both new and existing generation capacity and to reduce transmission and distribution losses.

The plan also recognises the importance of changing transportation behavior. It also emphasises the urgent need for energy efficiency issues to be addressed on a global level through international partnerships.

This plan is a follow up to the 2005 Green Paper which had the goal of reducing energy consumption in the European Union, by the year 2020, by twenty percent.

But, there are still questions about the effectiveness of particular policies. Economists have questioned whether energy efficiency measures really do bring energy savings on a macro-economic scale.

According to European Union figures, member states could save one hundred billion Euros, every year, by pursuing energy efficient policies.

In 2007, the European Commission intends to start issuing a list of directives which will set out "minimum energy performance standards" for 14 priority product groups.

The car industry also got a warning, that if it fails to reduce carbon dioxide emissions, it will face binding European Union regulations, which will set the target of 120g of carbon dioxide emitted per kilometer traveled.

Next year, the European Commission will consider the costs and benefits of using tax credits and tax breaks as incentives for companies to produce more certified energy efficient appliances and equipment.

The plan will be backed by a set of new regulations which will include new measures to cut carbon dioxide emissions that would help Europe to meet its obligations under the Kyoto treaty.

E.U. Sets Out Agenda

Brussels - The European Commission set out its agenda for revising the European Union Emissions Trading Scheme (EU ETS), taking into consideration the experience gained since 2005 when it first began.

The European Union wants to promote the environmental impact of Emission Trading by adding new sectors and gases and use it as a key tool to combat climate change.

The changes will take effect in 2013 at the start of the scheme's third trading period. The Emission Trading Scheme enables energy-intensive industry as well as power generators to reduce their greenhouse gas emissions cost effectively and stimulate emission saving projects.

Harmonisation is also needed in relation to the kind of installations that are covered by Emission Trading Scheme(ETS), including how to deal with newly operating installations and installations that close down during the course of a trading period.

The European Commission also intends to explore the possibility of setting a single EU-wide cap after the year 2012.

Furthermore, the European Commission intends to assess further harmonisation of requirements, as the focus will be on guidelines for monitoring and reporting emissions and rules for third party verification of emissions reports.

Possible Delay in Carbon Trading Scheme

Brussels - As the alarm bells of climate change are sounding loud, and whose urgency is underscored everyday in new scientific reports, there are plans that the EU carbon trading scheme will likely be delayed until the end of the decade.

One of the alarm bells is the plan to include aviation in the European Union carbon trading scheme.

The European Commission intends, in December, to put up formal proposals on aviation, as a battle is looming over the scope of the measures.

Member states are divided whether the system should apply to incoming or outgoing flights or should apply to both.

Aviation is one of the biggest contributors to climate change. Estimates suggest that European Union countries will cut CO2 emissions by only 0.6 percent on the 1990 levels only by 2010.

The Kyoto Protocol commitments are to cut eight percent by 2012.

Pressure from the European Parliament and from environmental groups could complicate things by seeking to set up a separate emissions trading system for the aviation industry which could crack down on pollution from airlines.

Furthermore, the European Commission is giving serious consideration to new proposals that could make it obligatory for car makers to cut CO2 emissions in all new vehicles.

Mr. Stravos Dimas, Environment Commissioner, said that he intends to propose new regulations in 2007.

This comes as concerns in the European Commission are growing that the voluntary agreement between the European Union, Japanese and Korean car makers to cut emissions has failed to go far enough.

Cars emitted an average 161 gr. of carbon per kilometer in 2004, just 1.2 percent less than the year before.

On Sunday, European car manufacturers called for voluntary targets to cut carbon dioxide emissions to be eased, as the dispute with the European Commission escalates.
In a written statement, the European Association of Automobile Manufacturers said that they "firmly oppose" the EU legislation to cut CO2 emissions.

The association said that "strong customer demand for larger and safer vehicles", as well as "disappointing consumer acceptance of fuel efficient cars are the reason for poor performance on emissions."

Any effort by the European Commission to impose new rules on the auto industry might face resistance from the European Parliament's Environment Committee that voted in October to delay compliance with the CO2 standards from 2008 to 2011, saying that the auto industry needs time to develop additional technologies.

Israel Rafalovich
U.N. OBSERVER & International Report