Examination of Witnesses (Question Numbers
400-403)
Mr Damien Meadows
15 OCTOBER 2008
Q400 Chairman: Before we finish,
perhaps you could clear up one point. Has discussion about the
reference year been finally disposed of?
Mr Meadows: There are two discussions
here. One has been proposed by Hungary to have 1990 as the reference
year. This is still raised in discussions, but I think, without
any expectation, that the package as a whole will be based on
1990. There is no data for this. Certainly the redistribution
of auction rights under the EU ETS is based on not having 1990
as a base year. If 1990 were the base year, then the Commission
would not see a justification for redistributing some of the auction
revenues. Some people have said you cannot have your cake and
eat it, or, in French, you cannot have le beurre et l'argent
du beurre—an expression I hear quite often. So I would
foresee that the package continues to be based on 2005. There
is then a more specific discussion about the redistribution element
within the EU ETS, whether that is based on a one-year or a three-year
period. For Finland, in particular, 2005 omissions were 24% below
emissions in the following years; so for them this is probably
their most important national issue. Here, it has been quite heart-warming
to see that Member States tend to see that it is more representative
to have a three-year period than a one-year period. The European
Parliament voted for that as well, so it is more moving in that
direction.
Chairman: Thank you very much.
Q401 Lord Plumb: Does Hungary give
a reason for 1990?
Mr Meadows: The 1990, or, to be
more exact, I think Hungary has a 1988 base year. Some of them
have an average of earlier years. When base years were chosen
for Kyoto, obviously countries chose the most favourable base
years they could, and many of the new Member States have over
achieved their Kyoto targets considerably. I think the greatest
level is by something like 60%, and so these countries see that
under the effort-sharing they are being allowed an increase but
their GDP per capita, their emissions per capita, are often far
lower than the Western European level. They want this to be recognised,
and their Kyoto targets. It is a good argument, they feel. For
us, this is much more relevant to a 30% scenario, because then
obviously we have the international agreement. Without that, we
do not see such a strong argument, but the equity for us is also
taken into account in the redistribution in the EU ETS.
Q402 Chairman: Are there any more
questions? Mr Meadows, it remains for me to thank you very much
indeed for coming here today, for giving such a clear opinion
of the progress of the negotiations, which I think we were all
very interested to hear, and also your very comprehensive replies
to our detailed questions on this amending directive. I have just
one point. What are the next steps? Are you looking for a first
reading deal?
Mr Meadows: Yes, a first reading
deal in December 2008 is the scenario, which I would expect to
be confirmed by heads of state in the European Council conclusions
tomorrow. There have been some in the European Parliament following
last week's vote who are putting this in question who would like
to delay beyond the French Presidency, for which this type of
package is a priority. I do not think that includes any UK MEPs
of any persuasion whatsoever, but that is a potential threat to
agreeing this, that somehow because of technical grounds, availability
of interpreters or whatever the package could slip into the end
of the legislature. Between now and December this year the European
Parliament rapporteurs are committed to negotiating with the Council
to solve the outstanding issues. There are around 50 outstanding
issues, counting even the very small things, but all but about
15 of these, I think, can be solved pretty quickly. The ones we
have talked about are the main ones. That should be confirmed
between ambassadors and the European Parliament in early December
of this year and then in the Poznan Climate Conference that would
allow the EU to say that it has a legal system in place for 2020
and beyond.
Q403 Chairman: Would you like to
make any concluding statement or shall we release you?
Mr Meadows: Just to thank you,
my Lord Chairman, and the members of the Committee.
Chairman: Thank you very much for coming.
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