March 2011 European Commission's 2050 climate roadmap
*Case for 30 percent carbon target now unstoppable -- Greenpeace*
*General Electric Energy, Google, Unilever and Otto Group all demanding higher target*
On 8 March, the European Commission is expected to publish its analysis, Moving to a Low Carbon Economy in 2050,
exploring how best to achieve Europe's 80-95 percent emission reduction goal.
This briefing:
Outlines the current environmental and business context
Analyses the roadmap
Charts major companies calling for a 30% carbon target for 2020
*Urgency* The imperative for immediate action and a long-term vision for climate protection are more urgent than ever.
Last year was the hottest on record jointly with 2005. Nine of the ten warmest years in history occurred after 2000.
Recent years have seen a dramatic rise in the number of extreme weather events, including last year's runaway Russian
fires and major flooding in Pakistan and Australia.
*The economic case* There are direct economic incentives for moving to a higher climate target. A recent study for the
German government by Oxford and Sorbonne Universities and the Potsdam Institute for Climate Impact Research (PIK), found
that a 30 percent target for the EU could create up to six million jobs, net, by 2020. The price spikes of oil and coal
this February, to $100 US per barrel and $145 a tonne respectively, underline the need to shield economies from fossil
fuel price volatility.
Progressive companies see the need for better action on climate. Over the last six months well-known brands, including
Unilever, GE Energy, Philips, Allianz and Deutsche Telekom, have called on EU governments to support a 30 percent
climate target for 2020. A list of these companies can be found in the table below.
*Analysis of the roadmap* A recent draft of the Commission roadmap concludes: All sectors of the economy have to
contribute to emission reductions, with the EU's power sector taking a leading role. Within the EU, emission reductions
in the order of 40 percent by 2030 and 60 percent by 2040 are required to economically achieve 80 percent domestic
reductions by 2050. Under the roadmap, Europe can look forward to average fuel cost savings of EUR175-320 billion a
year. To meet the 2050 target cost-efficiently requires a 25 percent carbon cut within Europe (domestic) by 2020. By
respecting its energy efficiency targets alone, Europe could cut its emissions by 25 percent. In the Emissions Trading
Scheme (ETS), measures need to be taken in the 2013-2020 phase to reward low-carbon investments and innovation.
Domestic emission reductions of 25 percent by 2020 equate to a 30 percent overall EU carbon target that the Commission
assessed in a communication in May 2010. This assessment looked at 25 percent reductions domestically and 5 percent
reductions through the purchase of offset credits in countries outside of the EU.
Greenpeace argues that the Emissions Trading Scheme (ETS), Europe's carbon market for industry, and that emission
reduction targets for member states (under the EU's Effort Sharing Decision) should be reformed in accordance with a 30
percent target. The EU's carbon market is the cornerstone of its efforts to decarbonise. But Europe is awash with
surplus free credits, giving polluting industries a soft cushion to rest on rather than a belt to slim their emissions.
Without reducing the number of credits in the carbon trading scheme, efficiency gains by some industries would create
only more surplus of credits, making it easier and cheaper for others to continue polluting. Climate commissioner
Hedegaard said on 28 February 2011 that "the ETS at present does not give sufficient incentive for innovation." The
draft roadmap suggests that a reduction of emission credits is required.
With over 17 percent carbon cuts already achieved by 2010, the EU has just under a decade to reach its existing 20
percent 2020 target. The roadmap shows that *it has never been easier for the EU to step up to an unconditional 30
percent target*. Therefore, Greenpeace believes that a faster start in domestic emission reductions is needed by 2020
than what is suggested in the roadmap. As outlined in the abovementioned PIK report, there is a strong economic case for
30 percent domestic reductions by 2020.
Efficiency savings are a major element of the roadmap. However, as experience proves, today's voluntary efficiency
targets are not enough. A 30 percent target will ensure that they are met and will fix Europe's failing carbon trading
system.
*Greenpeace demands* EU environment ministers meeting in Brussels on 14 March should: Acknowledge that the existing 20
percent 2020 carbon target is out of date and doesn't provide the necessary incentives for clean investments, innovation
and job creation. Call for an unconditional 30 percent carbon target. The Commission should provide analysis and
proposals for this higher target. These should include strengthening the ETS and EU Effort Sharing Decision. The roadmap
calls for the examination of funding mechanisms to support low carbon investments. Ministers should back this call and
focus attention on the need to support energy modernisation and emission reduction measures in Central and Eastern
Europe, where a large low-cost potential for renewable energy and energy efficiency is available. The International
Energy Agency called for a similar focus on these states in a statement on 2 March.
*Greenpeace EU climate and energy policy director Joris den Blanken *said:/"The Commission paper shows it has never been
easier for Europe to up its climate effort. Raging wildfires and floods in recent years show it has never been more
needed. What's holding us up is a twisted carbon market and lobbyists trying their best to keep Europe in neutral." /
Greenpeace International climate campaigner Mareike Britten said: /"Some of the biggest names in business are
recognising that it makes sound economic sense to get our climate in order and move Europe to a 30 percent target. Now
is the time for other progressive companies to demand leadership from the EU before it is too late to head off runaway
climate change."/
ENDS