Europe Wants to Raise Carbon-Emissions Target to 30 Percent

The European Commission (EC) wants to raise Europe's carbon emissions reduction target from 20 percent to 30 percent by 2020, but has stopped short of trying to implement the policy. In an analysis report, the Commission has outlined the benefits of a higher emissions reduction target, supporting the proposals with figures that show how the recession has made achieving the higher target significantly cheaper.

European countries are fiercely divided over the issue of raising the emissions bar, with France and Germany firmly opposed to any blanket increase in reduction targets by 2020. On the other hand, countries like the U.K. and Sweden are already aiming for a 30-percent or higher emissions reduction.

In a watered-down approach, the E.C. is not recommending any changes right now, but is outlining the benefits with a view to moving toward a 30 percent reduction target in the future. The E.C. maintains that reaching a 30-percent reduction target will reduce imports of oil and gas by ?40 billion ($49.5 billion) a year by 2020.

"Whether to increase our reduction target for 2020 from 20 percent to 30 percent is a political decision for the EU leaders to take when the timing and the conditions are right," said Connie Hedegaard, European commissioner for climate action. "Obviously, the immediate political priority is to handle the crisis. But as we exit the crisis, the Commission has now provided input for a fact-based discussion. The decision is not for now, but I hope that our analysis will inspire the debate in the member states on the way forward."

The U.K.'s new energy and climate change secretary, Chris Huhne, added his support, saying: "Global climate change is the biggest challenge the world faces, and securing an ambitious deal is a priority for this government. That's why we will push for the EU to demonstrate leadership by supporting an increase in the EU emissions reduction target to 30 percent by 2020."

According to the new analysis carried out by the Commission, since 2008 the costs of meeting the 20-percent target have decreased from ?70 billion ($86.5 billion) to ?48 billion ($59.3 billion) per year by 2020. This is due to several factors, such as reduced emissions caused by lower economic growth, higher energy prices' leading to increased energy efficiency and reduced energy demand, and a drop in the carbon price that was forecast in 2008.

The cost of reaching the 30-percent target is now estimated to be ?81 billion ($100 billion) per year by 2020, ?11 billion ($13.6 billion) higher than the price tag for the 20-percent target two years ago. The E.C. recognizes, however, that even though it will cost less than originally predicted, the recession "has left businesses with much less capacity to find the investment needed to modernize in the short run."

"Are the conditions right in this very moment? Would it make sense in this very moment?" Hedegaard asked. "My answer would be 'no.'" The European Wind Energy Association (EWEA) (Brussels, Belgium) supported the Commission's call for a 30 percent reduction target.

EWEA Chief Executive Christian Kjaer commented: "The move to 30 percent would give a very strong signal to investors that Europe means business when it talks about green growth and a sustainable economy. The offer to go to 30 percent did not work in the Copenhagen climate summit, but it would work in keeping the E.U. at the forefront of the green-technology race. Europe is a world leader in wind energy but faces serious competition from China, the U.S., Japan, South Korea and India. I would hate to see Europe losing out because it was lulled into a false sense of security due to the failure of the climate negotiations."

In February this year, the EWEA analysed the national forecast documents from the 27 member states and found that the E.U. will beat the renewable energy targets set for 2020. The association found that of the top 21 member states, 13 expect to meet their national goals, while the other eight expect to exceed their targets. More than 60 percent of all energy installed in 2009 was made up of renewable-energy schemes.

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