6 International climate policy post-Copenhagen
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COM(10) 86
| Commission Communication International climate policy post-Copenhagen: Acting now to reinvigorate global action on climate change
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| Legal base | —
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| Document originated | 9 March 2010
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| Deposited in Parliament | 11 March 2010
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| Department | Energy and Climate Change
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| Basis of consideration | EM of 24 March 2010
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| Previous Committee Report | None
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| Discussed in Council | See para 6.13 below
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| Committee's assessment | Politically important
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| Committee's decision | Cleared
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Background
6.1 According to the Commission, the international dimension
has always been an essential part of the EU's climate change ambition
to keep the increase in temperature, as compared with pre-industrial
levels, to below 2°C, and it says that the EU has therefore
always been at the forefront of international action against climate
change, being on track to comply with its 2008-12 Kyoto commitments,
and having adopted ambitious targets for 2020, including a commitment
to reduce its greenhouse gas emissions by 20% (or 30% as part
of a corresponding overall commitment by other developed and developing
countries). The Commission adds that the EU has been a strong
supporter of the UN process, and that the outcome of the Copenhagen
conference in December 2009 fell well short of its ambitions,
but it notes attempts are now being made to achieve a set of concrete
action-oriented decisions in Cancun at the end of this year, followed
by the adoption of a legally binding agreement in South Africa
in 2011. It has therefore sought in this Communication to set
out a strategy which will help maintain the momentum of the global
efforts to achieve that outcome.
The current document
6.2 The Commission recalls that the main outcome of the Copenhagen
conference was an agreement among a representative group of 29
Heads of State and Government on the "Copenhagen Accord",
which it says reflected the EU's objective of limiting the temperature
increase to 2°C, requested developed countries to put forward
their emission reduction targets, and invited developing countries
to put forward appropriate action by 31 January 2010. It adds
that the Accord also provided a basis for regular monitoring,
reporting and verification of those actions; contained a commitment
to significant funding for climate change action, together with
a related institutional framework; and gave guidance on issues
such as reducing emissions from deforestation, technology and
adaptation. It also says that, although the conclusions of the
conference merely "took note" of the Accord and did
not comprise a robust and legally binding agreement, more than
100 submissions to date by both developed and developing countries
— many of them including targets or actions — demonstrate
a broad and still growing support for the Accord, as well as a
clear determination of a majority of countries to step their actions
on climate change.
6.3 Looking ahead to the next steps, the Commission
says that the EU should continue to pursue a robust and effective
international agreement, and that its fundamental objective remains
a legally-binding agreement under the United Nations Framework
Convention on Climate Change (UNFCCC), which in turn requires
the EU to re-focus its efforts. In particular, it suggests that;
- As regards the UN process,
where a range of preparatory meetings are being organised ahead
of the conference in Cancun, the aim of those meetings should
be to identify gaps in the current negotiating texts and address
issues neglected in the Accord (such as the evolution of the international
carbon market, reducing emissions from international aviation
and maritime transport, and agriculture), as well as bringing
into the formal UN negotiating process the developed country targets
and developing country actions submitted under the Accord. It
says that the EU's objective for Cancun should therefore be a
comprehensive and balanced set of decisions to anchor the Accord
into the UN negotiating process, and it adds that, whilst the
EU is ready to adopt a robust and legally binding agreement in
Cancun, the substantial differences which remain mean that a more
step-by-step approach may be necessary.
- As regards the position of third countries,
the Commission suggests that the Copenhagen negotiations clearly
demonstrated that progress in the UN is conditional on the willingness
of countries to act, and that an active outreach programme by
the EU, aimed at obtaining a better understanding of the positions,
concerns and expectations of its partners on key issues, and at
explaining the EU's own objectives, will be essential. It says
that it will, in close conjunction with the Council, seek to achieve
convergence on action-oriented decisions to be agreed in Cancun,
it also being important that the EU should speak with one voice,
that outreach activities should take place at all levels and bring
in all important stakeholders, involving bilateral as well as
multilateral meetings, and that there should be a willingness
by all parties to move forward.
- As regards the reductions required to get
global greenhouse gas emissions on the pathway needed to achieve
the 2°C objective, the Commission says that, whilst the
Kyoto Protocol remains the central building block, its key shortcomings
will have to be addressed. In particular, it notes that, since
Kyoto currently covers only 30% of emissions, it cannot alone
deliver this objective, this being possible only if the US and
other major emitters from the developing world (including Brazil,
China, India, South Korea, Mexico and South Africa) contribute
their share. Also, current pledges by developed countries (ranging
from 13.2% to 17.8%) are in any case insufficient, and need to
be increased to 25-40%. It adds that the situation is exacerbated
by two further weaknesses — the banking of surplus emissions
from the Kyoto Protocol's commitment period for 2008 to 2012 into
future commitment periods, and the need to amend the accounting
rules for land use, land-use change and forestry (LULUCF) emissions
from developed countries.
EU ACTION PROPOSED
Europe 2020
6.4 The Commission suggests that the most convincing
leadership which the EU can show is to become the most climate
friendly region in the world, a course which it says is in the
EU's self-interest. It points out that the Europe 2020 strategy
makes sustainable growth a priority, noting that the EU is committed
to achieving by 2020 a 20% reduction in emission levels compared
with 1990, moving to a 30% reduction if the conditions are right.
It says that it will therefore prepare ahead of the European Council
in June an analysis of the practical policies needed to achieve
a 30% reduction, and that it will thereafter develop an analysis
of the milestones needed to achieve the agreed objective of 85-90%
by 2050, as part of the developed countries' contribution to reducing
global emissions in that year by at least 50% below 1990 levels.
It adds that this analysis will include the ambition level for
2030, reflecting the contributions from key emitting sectors,
including energy production and consumption and transport, and
set out appropriate strategies for these sectors consistent with
the 2020 strategy. It also says that any such action will need
to have a strong focus on policies to accelerate innovation and
the early deployment of new technologies and infrastructure, creating
a competitive edge for European companies in key sectors.
Implementing the Copenhagen Accord
6.5 The Commission suggests that the broad support
for the Copenhagen Accord demonstrates the political will from
the majority of countries to start action now, and that by far
its biggest achievement is the fact that, by the end of January
2010, developed and developing countries, representing more than
80% of global greenhouse gas emissions, have put forward targets
and actions. However, it says that their overall ambition level
is hard to assess, and that, even if the weaknesses already identified
were to be closed, the targets proposed by developed countries
(including the even higher conditional pledges) do not come close
to the 25-40% reductions required by 2020, adding that, so far,
only the EU has adopted the legislation needed to guarantee delivery
of its 2020 target, and that there is much uncertainty about the
content and timing of the action likely to be undertaken by developing
countries. Consequently, the Commission says that the negotiations
should now focus on the clarification of these pledges, and how
they might be achieved.
6.6 The Commission goes on to point out that
the most difficult negotiations in Copenhagen related to the strengthening
of the arrangements in the Kyoto Protocol as regards monitoring,
reporting and verification, with transparency being the key to
progress. It says that one of the priorities must be to anchor
the compromises in the Copenhagen Accord in the UN process, but
that transparency must not be limited to the reporting of emissions,
the most important point being how countries implement their targets
or actions. In particular, it stresses the need for robust, transparent
and predictable accounting rules which make it possible to assess
performance properly. In the meantime, it says that it proposes
to embark on regional capacity building programmes for interested
developing countries to develop the capabilities in these areas.
Fast-start funding
6.7 The Commission notes that the Copenhagen
Accord provides for fast-start support to developing countries
of some $30 billion for the period 2010-12, with a balanced allocation
between mitigation and adaptation. It points out that the European
Council in December 2009 set a yearly contribution of €2.4
billion by the EU and its Member States for that period, and that
swift implementation of this is essential both to the EU's credibility
and to enhancing the capacity of many developing countries to
design and implement effective policies. The Commission adds that
the EU must engage with other donors and recipients to ensure
coordination of the funding agreed in Copenhagen, and that fast-track
actions could include capacity building for integrating development
and poverty reduction strategies, capacity building in the area
of mitigation, pilot projects for sector-wide carbon market mechanisms,
pilot projects for reducing emissions from deforestation in developing
countries, and technology cooperation. It also suggests that such
funding must be well targeted to different regions, and build
on, and take account of, existing initiatives. The Commission
stresses the need for the EU's own efforts to be coordinated,
and says that it is ready to take on a role in this area. In particular,
it proposes to work with the ECOFIN Council, to establish a joint
EU regional capacity building programme to pool and channel funding,
complementing existing EU financial programmes, and to ensure
transparency through a bi-annual progress report.
Long-term finance
6.8 The Commission recalls that, in the Copenhagen
Accord, the EU and other developed countries committed to jointly
mobilise $100 billion (€73 billion) a year by 2020 for mitigation
and adaptation action in developing countries. It suggests that
this could come from a wide range of sources, including the international
carbon market (which, if designed properly, could deliver up to
€38 billion a year by 2020); international aviation and maritime
transport, building on the existing commitment under the EU's
Emissions Trading Scheme for all aviation auction revenues to
be used for climate change measures; and international public
funding in the range of €22-50 billion a year by 2020, with
the EU contributing a fair share. It also believes that the future
UN High-Level Panel on Finance and the High-Level Advisory Group
on Climate Change Financing should explore how these sources can
be effectively used for financing future climate actions, with
public finance focusing on areas which cannot be adequately financed
by the private sector or used to leverage private investments.
However, it cautions that the international dimension of long-term
finance is only part of the picture, and that developing countries,
and particularly the economically more advanced, must also contribute
to the overall effort.
The international carbon market
6.9 The Commission says that a well-functioning
carbon market is essential for driving low-carbon investments
and achieving global mitigation objectives in a cost-effective
manner, whilst also generating important financial flows to developing
countries. It goes on to suggest that such a market should be
built by linking compatible domestic cap and trade schemes, with
the goal being to develop an OECD-wide market by 2015, and an
even broader one by 2020. It notes that the EU has proposed new
sectoral carbon market mechanisms as an interim step towards the
development of (multi-sectoral) cap and trade systems, in particular
in the more advanced developing countries, which it says can provide
a more comprehensive price signal and generate credits on a greater
scale. It says that, in addition, the Clean Development Mechanism
(CDM) will continue after 2012, but must be reformed to improve
its environmental integrity, effectiveness, efficiency and governance,
and should over time increasingly focus on the least developed
countries, where the EU should seek common ground with the US
and other countries in order to ensure a coherent approach.
The Government's view
6.10 In her Explanatory Memorandum of 24 March
2010, Minister of State for Energy and Climate Change (Joan Ruddock)
says that, whilst this Communication has no formal implications
for UK policy, it has informed discussions within the EU, and
she expects the forthcoming Spring European Council in particular
to outline the EU's strategy for 2010, although this will continue
to crystallise throughout the year in the run up to Cancun. She
says that the overall strategy for Cancun outlined in the Communication
is in line with UK objectives, and that the Government sees the
pledges in the Accord as a very significant raising of ambition
compared with the situation only a few months ago, and that, if
delivered in accordance with countries' highest intentions, could
provide a credible pathway to achieving the 2oC goal.
The UK would support the view that the UN negotiations should
now focus on clarification of pledges and discussions of how overall
ambition can be increased.
6.11 As regards individual aspects of the Communication,
the Minister comments:
- that it is line with UK objectives
from a low carbon economy perspective;
- that the UK welcomes the analysis provided on
the Kyoto Protocol, and looks forward to seeing the outcome of
the Commission's work in this area: in particular, the issues
identified by the Commission as requiring particular focus (the
treatment of surplus emissions in future commitment periods, and
land use, land-use change and forestry (LULUCF) accounting rules)
are amongst those which the UK believes would need to be resolved
if a second commitment period were to be considered;
- that the UK is pleased that the Communication
reiterates the public finance commitment by the EU, and is also
supportive of progress on a green fund;
- that, on monitoring, reporting and verification,
the Commission highlights the importance of anchoring the Copenhagen
Accord into the UN process, and usefully emphasises the need for
capacity building for interested developing countries (although
she says that the UK is still reviewing the best institutional
arrangements for a regional capacity building programme).
The Minister also notes that the Communication highlights
a number of issues which are not dealt with in the Accord, but
which now need to be picked up in the international negotiations,
and she comments that the proposed strategy on carbon markets
is in line with UK thinking.
6.12 Finally, she identifies a number of elements
in the document which are not completely in line with UK thinking.
For example:
- the UK is considering the suggestion
that the Commission should take on a facilitative role on fast-start
finance, and is also considering the statement that from 2012
the EU should make a single global offer on finance;
- it believes that finance should be additional
to official development assistance (ODA);
- whilst it agrees that the EU should speak with
a united voice, it notes that the Commission has advocated a stronger
negotiating role for itself, and it would not want to see a change
to the current approach to the negotiations, which allows the
EU to draw on its best talent.
6.13 The Minister concludes by saying that, as
this is not a legislative proposal, there is no formal timetable,
but she notes that the ideas in the Communication were to be discussed
in the Environment Council on 15 March, and in the run up to the
European Council on 25-26 March.
Conclusion
6.14 Although this document deals with a subject
of obvious political interest, it is essentially an attempt by
the Commission to take stock of the state of play on the climate
change negotiations following the Copenhagen conference in December
2009, and to suggest ways in which the EU's position can be taken
forward in preparation for the next conference to be held in Cancun
at the end of this year. However, it is principally concerned
with the negotiating process this would entail, rather than the
substance of any such deal, where the Commission has in the main
re-stated the existing EU position on such issues as emission
reduction targets and funding, whilst stressing the importance
of it engaging both with other developed countries and with the
developing countries in order to implement the so-called Copenhagen
Accord. Consequently, although it is obviously right that the
Communication should be drawn to the attention of the House, it
does not appear to us to raise any new issues requiring further
consideration at this stage, given also the extent to which its
overall thrust appears to be in line with the UK's approach (though
we note the Government's view that the Community's strategy is
likely to crystallise during the course of the year). We are therefore
content to clear the document.
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