The European Union proposed cutting the region’s greenhouse-gas emissions by 40 percent in 2030 to accelerate efforts to reduce global warming.
The European Commission outlined its strategy to reduce pollution and curb rising energy costs and called for an overhaul of the bloc’s policies in the next decade, the EU’s executive arm said in a statement today. The current goal is to cut emissions by 20 percent in 2020 from 1990 levels.
The proposed design of future policies pits nations including Germany and the U.K., who are seeking stronger efforts to protect the atmosphere, against Poland and its allies, which rely mainly on fossil fuels to keep their economy humming. It also highlights the divide between energy intensive companies, whose gas and power costs are more than double their U.S. and Asian competitors, and green lobbies such as Greenpeace seeking deeper emission cuts.
“Political agreement on a 2030 EU energy and climate framework is absolutely vital for businesses,” Katja Hall, chief policy director at Confederation of British Industry, the U.K.’s main business lobby group, said by e-mail before the commission’s announcement. “We need long-term certainty to drive investment in a secure, low-carbon and affordable energy future for Europe.”
In the package unveiled today the commission asked member states to consider a 2030 framework that focuses on the carbon-reduction target to avoid conflicts with policies subsidizing renewable energy. The strategy is the start of a debate among member states, which may lead to a draft law in early 2015.
Under the new proposal, the EU wouldn’t extend legally-binding renewables targets for individual member states beyond 2020, instead setting an EU-wide goal to boost the share of renewable energy to 27 percent by 2030.
Scrapping renewable energy targets is “good news” for the economy and environment, according to Robert Stavins, director of Harvard University’s Environmental Economics Program. The renewables goal conflicts with the EU emissions trading system and removing it would lower the cost to achieve the pollution cap, he said.
The package will also include an indicative goal to boost energy efficiency by 25 percent, which will be discussed later this year.
As a part of the proposal, the commission will also seek to strengthen its carbon market cap-and-trade program by making the supply of permits more flexible. A carbon market stability reserve to start in 2021 would withdraw permits once allowances in circulation reached at least 833 million, the commission said in a statement.
The cost of emitting a metric ton of carbon dioxide in the EU’s $53 billion carbon market slumped to a record low of 2.46 euros ($3.32) in April and traded at 5.20 euros today at the ICE Futures Europe exchange in London.
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