EU climate change policies: mitigation and adaptation. Where to draw the subsidiarity line

in climate change and sustainable energy policies?

Matti Vainio

European Commission

DG Environment

Save energy, save money, save the climate – local and regional actionsCEMR seminar on climate change in the context of the EU Sustainable Energy Week

31 January 2007

Key Objectives Climate Change and Energy Package

Meeting the 2°C objective: In international negotiations GHG reduction

target of 30% by 2020 for developed countries (vs. 1990).

A firm, independent commitment to achieve at least 20% GHG reduction by 2020 for EU-27 (vs. 1990)

Perspective of Kyoto Protocol: 2012 -8% (EU-15) Today -5% (EU-27)

-1% (EU-15)

Energy efficiency (eg. cars, appliances, buildings) to be improved by 20% by 2020

Renewable energy: 20% mandatory objective by 2020 differentiation of targets necessary between Member States flexibility in target setting within a country between sectors includes minimum biofuels target of 10% by 2020

Sustainable power generation from fossil fuels: aiming at near-zero emissions of new plants by 2020

New steps to reach internal market - options for unbundling and regulatory powers: important for functioning EU ETS decrease hurdles for renewables

Nuclear: Member States’ choice Towards a European strategic energy technology plan

An Energy Policy for Europe

Global Participation

The 2C objective:Global GHG emissions need to peak around 2020

EU & Developed countries: 30% GHG emission reduction target by 2020, compared to 1990 levels

Developing countries: Reduced growth asap, absolute reductions after 2020

Deforestation: halt within two decades and then reverse

Developed countries GHG emissions

0%

20%

40%

60%

80%

100%

120%

140%

1990 2005 2020 2030 2040 2050

Baseline Reduction Scenario

Developing countries GHG emissions

0%

40%

80%

120%

160%

200%

240%

280%

320%

1990 2005 2020 2030 2040 2050

Baseline Reduction Scenario

• Firm independent target = long term signal for investors in ETS• Review EU ETS• Link it to compatible systems INVESTMENT COST INVESTMENT COST

GLOBAL GDPGLOBAL GDP

Global carbon market

• Global emissions peak around 2020: global carbon market decreases investment costs with a factor 3.

• Proposals to increase market signals in developing countries:

• Improve and widen CDM

• Improved access to financing (EBRD, GEEREF etc.)

Benefits and Costs

“Winning the Battle” & Stern Review: benefits of limiting Climate Change outweigh costs of action

Costs of inaction: 5%-20% of global GDP (Stern Review) Costs of action for the EU (2030):

-30% target with global participation: -0,19% annualised GDP -20% independent target: -0,02% to -0,09% annualised GDP

Does not include co-benefits: Increased energy security Improved competitiveness through innovation Health benefits from reduced air pollution Limits on climate change

Do we need to draw lines

Where to draw the subsidiarity line in climate change and sustainable

energy policies?

Can you draw a line between national, regional and local policies?

Importance of EU level action

Internal market Cross-border issues, eg

transboundary air pollution, greenhouse gases

Make a difference at global levelestablish leadership in climate change

(eg carbon market)speaking with one voice

Importance of regional and local action: making reduction concrete

Emission reduction InfrastructureTransportPublic procurement

Adaptation InfrastructureRegional and local spatial planningBuilding standards

Importance of local action

Energy efficiency engaging the broad public building codes and practices, enforcement Public procurement (building standards) Infrastructure (heat networks/district heating)

Sustainable transport : local level crucial urban planning transport planning – promoting and

organising public transport public procurement (transport fleet, fuels) congestion charging (eg London) – parking

fees

Importance of local action

Renewable energyBuilding standardsLocal, decentralised in nature Also a number of benefits are local :

employment, new businesses, air quality… Local level important for planning purposes

and engaging/convincing the public Awareness raising – close to the citizen

Conclusions

Climate change is happening Need to adapt

We need to act at all levels Complementarity of action, EU, National,

Regional, Local levels Co-benefits of action

Reduce CO2 emissions Reduce air pollution Save money Make local communities better places to live

More information

Climate change: http://ec.europa.eu/environment/climat/future_action.htm

Energy: http://ec.europa.eu/energy/energy_policy/index_en.htm