FINANCIAL CRISIS MUST NOT OVERSHADOW CLIMATE CRISIS


Environmental Panorama
International
October of 2008


15 Oct 2008 - Brussels, Belgium – WWF has launched an appeal to the French Presidency of the European Union and to all European governments not to let the financial crisis undermine the need to reach an agreement on a solid package of measures to address climate change before the end of the year.

At the European Council meeting taking place in Brussels on 15-16 October 2008, and in relation to the “EU climate and energy package”, the European Council will discuss the controversial issue of the potential impact of the EU’s Emissions Trading Scheme on the competitiveness of industries within the EU which use a lot of energy. EU leaders will also discuss the auctioning of pollution permits and the use of significant revenues that will be generated, as well as security of energy supply.

“European countries need to reaffirm the EU commitment to cut greenhouse gases by 30% by 2020, without any escape clauses. A strong European climate package will make Europe more resilient to future economic fluctuations, as it will reduce reliance on foreign energy supplies, create more sustainable jobs and lead other countries to join forces to avoid dramatic consequences of climate change,” says Delia Villagrasa, Senior Advisor at WWF.

“The French Presidency must stop using the financial crisis as an excuse to weaken measures which will only come into force from 2013”.

Last week the European Parliament’s environment committee voted to support the EU climate and energy package proposed by the European Commission earlier this year. But France, who currently holds the Presidency of the EU, has since put forward damaging proposals which would significantly water down the package.

One particularly worrying proposal would allow even more access to emission reduction ‘offset’ credits in developing countries projects (with no guarantee that they are environmentally and socially robust).

Together with France, the UK, Netherlands and Sweden are also notably poor on this issue. Access to significant volumes of project credits will reduce action to cut climate pollution within the EU and allow continued investment in high carbon infrastructure, such as new coal-fired power stations. It also sends the signal to developing countries that rich nations are not willing to go first in cutting emissions – a dangerous position to take in the lead up to the December UN climate change conference in Poznan.

The Presidency, supported by Italy, Germany and Poland, also wants the manufacturing sector to be exempted from the polluter pays principle by receiving pollution allowances for free as a sop to those industries which claim that the EU Emissions Trading Scheme could harm their competitiveness on the global stage.

WWF denounces this as an attempt to subsidise polluting companies.

Poland and Italy also seek to exclude some power markets from having to purchase all their pollution permits arguing that in countries without a fully liberalised power market, full auctioning would push up the price of power. However, this is very unlikely to be the case. Instead, power companies may continue to reap massive windfall profits from the pass through of the value of free allowances to the price of power.

Many Member States propose not to earmark revenues from auctioning of pollution permits in the EU Emissions Trading Scheme for measures to tackle climate change. By 2020 it is estimated that these revenues could be worth around €50 billion per year. This completely back tracks on the position of the European Parliament who called for all of the revenues to be used to tackle climate change – with half of the revenues going to developing countries.

WWF calls on President Nicolas Sarkozy and all European leaders to reflect the urgency and danger of climate change in their decisions. All European countries need to step up, deliver on their promises and help poorer countries in fighting global warming.

“It would be a big strategic error to backslide because of the economic downturn at such a critical moment. Everyone should have learned from today’s financial crisis that there are serious consequences for lack of early regulation,” added Villagrasa.

Notes to the editors:
• A WWF report showed that polluting power companies in just five European States could reap windfall profits equivalent to more than twice the GDP of Slovenia during the second phase of the EU ETS.
• Contrary to some claims, electricity prices will not be driven up by the full auctioning of emissions allowances under the EU ETS, according to a study carried out in the Czech Republic, Germany, Hungary and Poland by New Carbon Finance for WWF.

Delia Villagrasa, Senior Advisor to WWF
Claudia Delpero, Communications Manager at WWF European Policy Office

+ More

Italy and Poland fail to scupper EU Climate Change Deal

16 Oct 2008 - Brussels, 16 October 2008 -- European leaders have today pledged to press ahead with their planned response to climate change, despite attempts by some EU member states to scupper the measures in order to protect polluting industry, say Climate Action Network Europe, Friends of the Earth Europe, Greenpeace and WWF.

During the EU summit, Poland and Italy threatened to veto crucial measures to curb CO2 emissions and reduce European dependency on fossil fuels. But at the end of two days of heated talks in Brussels, EU leaders confirmed their commitment to finalise the climate and energy package before international climate negotiations take place in December. However, last minute changes weakening the final document have
been made.

Environmental groups reiterated that the proposals must not be weakened by countries seeking to protect a small part of their industries and warned that European citizens will hold EU leaders to their promises when it's time to go to the ballot box.

Reacting to the conclusions Climate Action Network Europe, Friends of the Earth Europe, Greenpeace and WWF said: "EU leaders have resisted attempts by countries who wanted to put short-term interests of some polluting industries above the long-term interests of the environment, economy and people.

Frantic efforts to derail EU climate action by Poland and Italy have been ignored so far.

The French President Sarkozy must stand up to countries like Italy which has made no effort whatsoever to comply with the Kyoto Protocol and implement decent climate policies.

"Environment Ministers meeting in Luxembourg on Monday must live up to their responsibilities and deliver a strong response to climate change."
Delia Villagrasa, Senior Advisor at WWF

 
 

Source: WWF – World Wildlife Foundation International
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