Costs and opportunities of the Kyoto targets in the European Union ENCORE 2004 Stefaan Vergote DG En

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Costs and opportunities of the Kyoto targets in
the European UnionENCORE 2004Stefaan
VergoteDG Environement, Climate Change Unit

• Firenze, 2 April 2004

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The Climate Change challenge

• What science expects
• Rising sea level, risk of flooding, erosion and
  wetland loss will increase
• Extreme weather events (eg. heat waves) will
  occur more often
• Increase of water shortage
• Health risks

• The challenges we face
• Kyoto - EU -8 (2008-2012)
• 6th Environmental Action Plan 2C
• UK Energy White Paper (2050)
• Ultimate objective
• UNFCCC

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The Climate Change challenge

• Climate change issue is here to stay
• need to consider the costs of non action !
• an important driver for energy and transport
  policies
• will induce major innovation efforts
• is becoming a part of the competitiveness of our
  economies
• to become a low carbon economy

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EU greenhouse gas emissions in relation to the
Kyoto target
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The EU response The European Climate Change
Programme

• Objectives
• Identify and develop main elements of EC
  strategy to meet its -8 Kyoto objective
• Prepare the Commission to develop legislative
  and other proposals
• Major Milestones
• launch March 2000
• June 2001 first progress report
• October 2001 Commission Communication on ECCP
  Action Plan
• May 2003 second progress report

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ECCP Main results (EU-15, 2010)

• Total reduction potential of identified measures
  578 -696 Mt CO2eq./year twice Kyoto -8
• EU Measures currently in implementationapproxim
  ately 350-430 Mt CO2eq./year
• nearly al measures of the October 2001
  Communication are already adopted by the EC.
• most of the identified potential of the various
  measures still needs to materialise in practice
• strong need for adequate implementation,
  monitoring of effectiveness and review if
  appropriate

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Costs of reaching Kyoto

• the potential to reduce emissions from all
  greenhouse gasses and the costs of doing so, are
  not the same for all sectors.
• the EUs total compliance costs could be as low
  as 3.7 billion, being 0.06 of the EU GDP in
  2010.
• The EU is able to reach the Kyoto target if it
  implemented the greenhouse gas reduction measures
  that cost less than 20 per tonne of CO2
  equivalent.

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Minimising costs for reaching Kyoto

• Let the market work
• Emissions trading and the Linking Proposal
• to provide European business with a flexible tool
  for low-cost compliance with Kyoto
• Taps on the market dynamics and innovation
  capacity of the industrial sectors
• marginal cost of emitting one tonne of CO2 is the
  same in all sectors covered by the scheme in
  EU-25
• thereby providing economic benefits for sellers
  AND BUYERS
• creates flexibility in burden sharing

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opportunities for reducing energy demand

• Low-cost opportunities abundantly available
• EU initiatives
• energy performance of buildings
• framework on eco-efficiency of energy-using
  products
• energy labelling directives
• proposal on end-use energy efficiency and
  promotion of energy services, including target
  for energy savings
• toolbox for Member States and regions to
  develop an adequate and pro-active policy

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Opportunities for climate-friendly energy supply

• Directive on the promotion of electricity of
  renewable energy sources
• Directives on the promotion of transport
  bio-fuels
• Proposal for a Directive on the promotion of CHP

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Benefits of reaching the Kyoto targets

• Spurring technology research development
  innovation (e.g. renewable energy, Environmental
  Technology action plan)
• First mover advantages
• Reducing energy demand and improving the EUs
  energy security
• Employment
• Ancillary benefits (reduction of other air
  pollutants)
• Avoid negative impacts of climate change

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The role of regional and local authorities

• local/regional authorities have a key role, due
  to proximity to business the citizen
• awareness raising
• local/regional climate change policy
• use EU toolbox complement with supportive
  measures
• sustainable and integrated urban transport
  systems
• urban planning
• EC welcomes Climate Change and Energy
  recommendations of the European Sustainable
  Cities Towns campaign,

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The role of regional and local authorities

• reform on structural funds (2007-2013) includes
  new key objectives
• renewables
• energy efficiency
• clean transport
• opportunities in new Member States, in particular
  to reduce energy intensity
• upcoming reform on rural development

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• Thank you
• for your attention
• more info
• http//www.europa.eu.int/comm/environment/climat/e
  ccp.htm