Approval of the climate-energy package expected by the end of year

In fighting for the global warming phenomenon, the aim of the climate-energy package is to reduce greenhouse gas emissions in the EU beyond the framework of the existing system of trading with emission permits (EU ETS) and thus from sources not currently included in EU ETS by at least 20% compared to 1990 by the year 2020; in the event that other non-EU countries undertake to achieve a comparable reduction, the target promise will be increased by a further 10%.

Simultaneously, an amendment to the existing trading system has been proposed that should enable the so-called third phase, within the framework of which the distribution of permits should take place in the form of pan-European auctions and not on the basis of national allocation plans as currently done. The new system should cover half of all greenhouse gas emissions produced in the EU after additional industries and gas types have been included.

Another tool for achievement of the above target is the project for geological depositing of carbon dioxide. The last part of the package is a draft directive concerning support for usage of renewable energy sources that should contribute to reducing the EU’s energy dependence on non-EU countries. The draft sets forth a binding target for usage of energy from renewable sources in 2020 in the EU average of 20%. Individual countries should simultaneously increase their own shares of energy from renewable sources in the area of transport to 10% of the final consumption within the same time horizon.

Criticism is often heard in the ongoing negotiations on the ambitiousness, and in particular the high costs, of the entire project. The results of the measures contained in the energy-climatic package will be growth of operational expenses, in particular in the form of higher electricity prices caused by limitation of availability of emission permits. Certain deputies draw attention to the fact that if the strict emission target is not also applied outside the EU, the project may slow down the growth of the European industry. Therefore, it is necessary to perform a proper analysis of costs and contributions and to assess the influence of the proposed tools on the economic as well as tax payers. Pursuant to the proposal, the Commission should assess to what extent European companies will be jeopardized by import from non-EU countries.

Compromise concessions and alleviations, for example, temporary exceptions from mandatory emission permits auctions, will most likely be necessary for a number of industries or countries whose economy is based on heavy industry and energy-demanding subsectors.

Voting of deputies on the presented proposals in the first reading should take place on 17 December 2008.