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Climate Action
EU climate policy developments and accession process
LOCSEE Capacity Building Workshop on
Transferring EU Legislation on Climate Change &
Developing Low Carbon Policies
24 May 2013, Graz
Dimitrios ZEVGOLIS, DG CLIMA.A.1
Climate Action
Structure of this presentation
• EU's Work Plan
• Implications of EU climate policy and legislation for
EU accession process
Climate Action
EU’s work plan
1. Deliver on international commitments
2. Elaborate EU international negotiation position: Consultative Communication (March 2013) and Stakeholder Consultation (till June 2013)
3. Continue and strengthen domestic implementation towards 2020
4. Identify adaptation policy until 2020: EU Adaptation Strategy (April 2013)
5. Identify viable long-term trajectories and milestones: Low Carbon Roadmap 2050 and Energy Roadmap 2050 (were already issued in 2011/2012)
6. Identify effective, efficient and fair mitigation policies: 2030 Framework (March 2013) and Stakeholder Consultation (till July 2013)
Climate Action
Deliver the 2008-2012 target under the Kyoto Protocol
Actual and projected emissions of EU-15, in MtCO2-eq.
EU-15 currently over-achieve 2008-2012 Kyoto target of 8% emissions reductions
In 2010, EU-15 GHG emissions are 11% below the base-year level.
Provisional 2011 data show -14% reduction in EU-15 GHG emissions
Climate Action
Deliver the 2012-2020 target under the Kyoto Protocol
Between 1990 and 2011, EU-27 GDP grew by 48% while emissions decreased by 18%
Despite a slight increase of GHG emissions in 2010 compared to 2009 of 2.4%, there is a decreasing trend since 2004
Actual and projected emissions of EU-27, in MtCO2-eq.
Climate Action
"Doha Climate Gateway"
1. Agreement on work plan for the negotiation round leading to the 2015 agreement
2. Adoption of a 2013-2020 CP2 for Kyoto Protocol
3. Closure of the old negotiation tracks
4. Finance package
5. Loss and Damage
http://unfccc4.meta-fusion.com/kongresse/cop18/templ/play.php?id_kongresssession=5833&theme=unfccc
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What next: Key issues - commitments
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Consultative Communication on the 2015 Agreement
• Adopted on 26 March; online public consultation until 26 June
• A stakeholder conference held on 17 April
• Start EU-wide discussion on design 2015 Agreement
• No substantive recommendations, but set of questions, including on issues addressed in breakout groups
Climate Action
Domestic implementation towards 2020
• Implement the 2020 Climate and Energy Package
• Europe 2020 targets for sustainable growth are achievable, but challenges remain for individual countries
• Climate action is essential element in the EU economic cooperation (European Semester)
• Mainstreaming climate into the Structural Funds
• Mainstreaming climate into next EU budget 2014-2020: minimum 20% of expenditure climate related (e.g. IPA)
• ETS needs strengthening: short term and structural measures
Climate Action
New and Planned Policy Initiatives and Legislation – Monitoring Mechanism Regulation (MMR)
Status: The Council and the European Parliament reached agreement on the revision in December 2012 and the text was formally approved by the Parliament in March 2013. Once adopted by the Council, the new Regulation (MMR) is expected to enter into force by mid-2013.
Key objectives: timely, transparent and accurate reporting at EU and MS level
Enhance current KP rules and align them with the requirements of the Climate and Energy package (in particular Effort Sharing Decision)
Keep track of progress towards 2013-2020 emission targets
Improve quality of data reported
Ensure effective development and implementation of EU policies
LULUCF, adaptation
Support the EU and MS in meeting their UNFCCC commitments
Including financial and technical support to developing countries
Increase accessibility of information/user-friendliness of products
Climate change: headline target under the Europe 2020 strategy
Climate Action
EU ETS - Phase 3
Achievements
• One carbon price, level playing field across the EU
• Technically functioning and liquid market
• Long-term clarity on reductions (-1.74%)
But triggered by recession challenge of a surplus
• In 2012 and 2013 rapid build-up of surplus, largely due to regulatory provisions in the transition of phase 2 to phase 3.
• Surplus continues to grow, and estimated to reach for most of Phase 3 up to 2020 a size of around 2 billion allowances.
• Low carbon prices, reduced role in incentivising emission reductions
Climate Action
ETS reform - Two step approach
First step: • Slow down the rapid surplus build-up in the short
term
proposal to postpone auctioning of 900 million
allowances ("back-loading")
Second step: • Sustainable solution with “structural action”
required
Carbon market report has started a discussion
that looks into 6 possible options for such action
Climate Action
EU ETS - Options for structural measures
• Option a: Increasing 2020 target to -30%
• Option b: Retirement of phase 3 allowances
• Option c: Early revision of linear factor
• Option d: Include other sectors in the ETS
• Option e: Limit access to international credits
• Option f: Discretionary price management
Climate Action
New and Planned Policy Initiatives and Legislation – Other (1)
ETS Aviation: ''Stop the clock''
The requirement for airlines to surrender emission allowances for flights into and out of Europe deferred until after the 2013 International Civil Aviation Organization (ICAO) General Assembly next autumn.
EU Effort-Sharing
Decision on State Annual Emission Allocations 2013-2020
Amendment of the Registry Regulation, to accommodate transfers under the Effort Sharing Decision
Ozone-depleting substances, fluorinated greenhouse gases
Continue work under the Montreal Protocol, also to maximise the climate benefits
Review of the Regulation on fluorinated greenhouse gases
Climate Action
LULUCF
Commission Proposal of 12 March 2012 for a Decision on accounting rules and action plans on greenhouse gas emissions and removals resulting from activities related to land use, land use change and forest
The Council and the European Parliament reached agreement on a text in December 2012 and this was formally approved by the Parliament in March 2013. Once adopted by the Council, the decision is expected to enter into force by mid-2013.
Limit amount of 1st gen. biofuels (ILUC)
The proposed Directive (amending FQD and RED) starts the transition to biofuels that deliver solid GHG savings also when estimated ILUC impacts are considered while respecting existing investments.
Commission's view is to not support 1st generation biofuels post 2020.
The use of food-based biofuels to meet the 10% renewable energy target of the Renewable Energy Directive will be limited to 5%
New and Planned Policy Initiatives and Legislation – Other (2)
Climate Action
CO2/cars and vans
2012: Decision on Excess Emissions Premiums for CO2/cars, Delegated Act on derogations for CO2/vans and Implementing Regulation on CO2 monitoring
Review of modalities of 2020 targets for cars and vans
Communication on light duty vehicle regulation post-2020 Fuel quality
Implementing act on Article 7a of Fuel Quality Directive (method for determining the reduction of life-cycle GHG emissions from fossile fuels)
Maritime transport
Possible proposal on MRV of greenhouse gas emissions
Carbon Capture and Storage
Consultative Communication on the future of CCS published in March 2013
New and Planned Policy Initiatives and Legislation – Other (3)
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Towards 2020: Adaptation
Cost efficient mitigation and adaptation are both essential and complementary. • Need to increase mitigation efforts: If the 2°C
target is missed, adaptation increasingly costly. • Need to manage risks of adverse effects of
climate change: • Adaptation is inevitable (delayed impact of
emissions) and is cheaper: 1€ invested in flood protection saves 6 € damage costs.
• Postponed adaptation and maladaptation will lead
to higher damage costs: ≥ 100 bn/year by 2020; 250 bn/year by 2050 for the EU
Climate Action
The three priorities of the EU’s Adaptation Strategy
1. Promoting action by Member States i. Supporting all Member States to adopt an adaptation
strategy by 2017 ii. EU funding for adaptation in priority areas, e.g. cities
2. Better informed decision making
i. Closing knowledge gaps ii. Facilitating knowledge dissemination via Climate-ADAPT
3. Promoting adaptation in key vulnerable sectors
i. Climate proofing EU common policies and the use of EU funds
ii. Key role for insurance and other financial products
Climate Action
Efficient pathway and
milestones:
-25% in 2020 -40% in 2030 -60% in 2040
Beyond 2020: The 2050 Low-Carbon Roadmap
80% domestic reduction in 2050 is feasible
with currently available
technologies,
with behavioural change
only induced through
prices
if all economic sectors
contribute to a varying
degree & pace.
0%
20%
40%
60%
80%
100%
1990 2000 2010 2020 2030 2040 2050
0%
20%
40%
60%
80%
100%
Current policy
Power Sector
Residential & Tertiary
Non CO2 Other Sectors
Industry
Transport
Non CO2 Agriculture
Climate Action
GDP and GHG decoupling
40
60
80
100
120
140
160
180
200
220
1990 2000 2010 2020 2030
19
90
= 1
00
%
GDP GHG emissions
Additional domestic investment: € 270 billion annually during 2010-2050, equivalent to 1.5% of GDP (Total investment – 19% of GDP in 2009), of which • built environment (buildings
and appliances): € 75 bn • transport (vehicles and
infrastructure): € 150 bn • power (electricity generation,
grid): € 30 bn
Beyond 2020: Investing in innovation …
Climate Action
• Fuel savings: € 175 to 320 billion on average annually during
2010-2050
• Primary energy consumption about 30% below 2005 without
negatively affecting energy services
• Making EU economy more energy secure:
• Halves imports of oil and gas compared to today
• Saving € 400 billion of EU oil and gas import bill in 2050, equivalent to > 3% of
today’s GDP
• Air quality and health benefits: € 27 billion in 2030 and € 88
billion in 2050
Beyond 2020: … means reducing the energy bill, raising
air quality & health and creating jobs
Climate Action
Key Findings from the 2050 Roadmaps
40% GHG reduction by 2030 in the EU to be on track to reach a GHG reduction of between 80-95% by 2050, consistent with 2°C
Higher shares of renewable energy,
energy efficiency and smarter energy infrastructure:
"no regrets"
Significant investments needed, with or without decarbonisation, which
impact energy prices Renewables, the policy scenarios in the Energy Roadmap 2050 indicate a share of around 30% in 2030
Climate Action
Increased certainty for Member States and
reduced regulatory risks for investors
Growth and jobs through
demand for efficient and
low-carbon technologies
Definition of EU ambitions in view of a new
international climate change agreement
Early agreement on the 2030 framework is essential
Climate Action
•Which climate and energy targets should be set for 2030?
•If so, which ones? Targets
•Which are the most appropriate policy instruments to meet the new targets?
•How can Research and Innovation best support the 2030 framework? Instruments
•How best to foster growth and jobs?
•How can EU policies take account of international developments? E.g. Climate negotiations
•How can internationally competitive and affordable energy prices be ensured?
Competitiveness & Security of Supply
•How to ensure an equitable distribution of efforts among Member States?
•How to best consider the different investment capacities of industry sectors and consumer groups?
Effort Sharing
Stakeholders can express their views on the 2030 framework
Climate Action
2050 Roadmaps
2030 Green Paper
Proposals for the 2030 framework for climate and energy
policies
2011 March 2013 By end 2013
The 2030 framework will build on the 2050 Roadmaps - Concrete proposals by the end of 2013
On-going discussions with Member States, EU institutions and stakeholders
Climate Action
Concrete steps towards the 2030 climate and energy framework in 2013
Impact Assessment
Jan.
Commission proposals for the 2030 framework
Feb. Mar. Apr. Jun. Jul. Aug Sept. Oct. Nov. Dec. May
22-24
April
Informal
22 May
European
Council
Adoption of the Green Paper consultation procedure
Council meetings
Update of reference scenario
2012
Before
end 2013
Climate Action
• Implications of the EU Climate Policy and Legislation for the EU
Accession Process
Climate Action
• Countries lack comprehensive climate strategies and policies
• Inter-institutional coordination is weak or non-existent
• Weak administrative capacity
• Alignment with EU international positions
• Alignment with acquis at early stage
• IPA climate programming at its infancy
State of play
Climate Action
• To succeed, strategic top-level vision and steer is essential in order to manage the process towards low-carbon future
• Integrated policy development is key (climate, energy, transport ..)
• Cooperation and coordination between involved and interested decision-makers, institutions, citizens, businesses, NGOs, etc, is imperative
Key priorities
Climate Action
• A long-term national low-emission development strategy (with targets for 2020, 2030, 2040, 2050), converging with EU climate policy and legislation
• Measurable objectives, targets and action plans
• High quality Monitoring, Reporting and Verification (MRV)
• Convergence with the EU Monitoring Mechanism
• Stronger administrative capacity
• Legislative framework
In concrete terms, the following is needed:
Climate Action
Most important is own domestic action
EU facilitates with bilateral, regional and international co-operation
Bilateral level • Enlargement process (SAA Council and Committees, sub-
committees) • Policy dialogue and technical co-operation • Enhanced use of enlargement instruments (IPA, TAIEX)
Regional level
Regional initiatives, in particular RENA/ECRAN
Climate Action
• Strategy development put in the agenda
• Preparations for interinstitutional cooperation
• Building IPA climate project pipeline
• Enhanced coordination with IFIs
• Ad hoc technical assistance on certain acquis
topics (TAIEX)
• Awareness raising, ETS-like installations
identification, and regional capacity building on
ETS and MMD (RENA)
Achievements due to EU facilitation
Climate Action
Thank you !
http://world-you-like.europa.eu/en/