Ad Hoc Working Group on Article 3.9 of the Kyoto Protocol

Battling global climate change - the EU’s

perspective(Part II)

Artur Runge-Metzger

European Union

Ad Hoc Working Group on Article 3.9 of the Kyoto Protocol

3. Selected EU policies and actions

Ad Hoc Working Group on Article 3.9 of the Kyoto Protocol

The EU’s Kyoto challenge until 2012

Sou

rce:

Eu

rop

ean

C

om

mis

sion

Ad Hoc Working Group on Article 3.9 of the Kyoto Protocol

Sectoral trends (EU): 1990-2004/1990-2010

Total GHG2004

Energy use excluding transport

59%

Industrial processes

8%

Agriculture9%

Waste3%

Transport21%

27.2%

-7.1%

-15.6%

-3.6%

34.5%

26.0%

-2.4%

-16.4%

-47.0%

-16%

-10%

-33%

-2%

-44.9%

-10.4%

-60% -40% -20% 0% 20% 40%

Waste

Agriculture

Industrial processes

Transport

Energy excl. transport

Waste

Agriculture

Industrial processes

Transport

Energy excl. transport

Waste

Agriculture

Industrial processes

Transport

Energy excl. transport

Pro

ject

ion

s w

ith

ad

dit

ion

al

mea

sure

s b

ase

year

-201

0P

ast

emis

sio

ns

bas

e ye

ar-

2004

Pro

ject

ion

s w

ith

exi

stin

g

mea

sure

s b

ase

year

-201

0

Ad Hoc Working Group on Article 3.9 of the Kyoto Protocol

EU climate policies: The ‘broadbrush’ overview

Ad Hoc Working Group on Article 3.9 of the Kyoto Protocol

Emissions trading: EU is implementing a company-based scheme since 1.1.2005

CO2 emissions from energy intensive industry above specific capacity thresholds (45–50 % of EU CO2 emissions)

Around 10,500 installations electricity generators heat & steam production mineral oil refineries ferrous metals: production

& processing cement, lime glass, bricks and

ceramics pulp & paper sector

Ad Hoc Working Group on Article 3.9 of the Kyoto Protocol

Use of Kyoto Mechanisms: Planned purchases by Member States (in addition to company use!)

Almost 520 Million tonnes of CO2eq (2008-2012)

Allocated resources thus far: € 2.7 billion

Million tonnes of CO2 eq.

Austria 35.00

Belgium 42.00

Denmark 22.50

Finland At least 3.0

Ireland 18.50

Italy 198.00

Luxembourg 15.00

Netherlands 100.00

Spain 100.00

Sweden At least 5.0

Ad Hoc Working Group on Article 3.9 of the Kyoto Protocol

Carbon Market is taking off

Sourc

e:

Worl

d B

ank/

IETA

Sep

t. 2

006

Ad Hoc Working Group on Article 3.9 of the Kyoto Protocol

“Offsetting” alone cannot solve the climate change problem

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

0

10

20

30

40

50

60

70

80

1990 2050

Gig

aton

nes

CO

2 eq

uiv

alen

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

Ad Hoc Working Group on Article 3.9 of the Kyoto Protocol

Still, the EU will not wait

Estimates for full energy saving potential in the EU end-use sectors

„Saving 20% by 2020“ results in annual savings of

780 Mt CO2 in 2020 (twice the EUs Kyoto commitment)

Ad Hoc Working Group on Article 3.9 of the Kyoto Protocol

The EU will not wait

Proposal to include aviation into the EU ETS (end 2006)

CO2 and cars (end 2006) Energy package (beginning 2007):

renewables, biofuels, clean coal EU ETS review (mid 2007) CCS (2nd half 2007)

Ad Hoc Working Group on Article 3.9 of the Kyoto Protocol

Complementing carbon finance: The Global Energy Efficiency and Renewable Energy Fund (GEEREF)

Launched in early Oct 2006

EU initial contribution of € 80 million over 4 years risk capital for local private sector

Mobilise between € 300 million – € 1 billion commercial capital

Potential to complement carbon finance

Ad Hoc Working Group on Article 3.9 of the Kyoto Protocol

Work of the AWG

The EU is looking forward to constructively contributing to further work in the AWG

All issues of relevance to the consideration of further commitments for Annex I countries should be analysed

Make best use of time available to ensure that there‘s no gap before next commitment periods

Ad Hoc Working Group on Article 3.9 of the Kyoto Protocol

Conclusions

Urgent need for joint global efforts to reduce GHG emissions in all major economies

Build on the Kyoto Protocol – improve as necessary – including deeper reductions by all developed countries – the EU is ready to do its part

All sectors (esp. bunker fuels and deforestation) and more gases should be included

Deploy and develop technologies on a larger scale

Cooperate in adapting to unavoided climate change

Ad Hoc Working Group on Article 3.9 of the Kyoto Protocol

http://http://europa.eu.int/europa.eu.int/comm/comm/environment/environment/climat/climat/home_en.htmhome_en.htm