1. EU leadership in climate change policy ? Rob Bradley, Climate Action Network Europe

2. Rob Bradley, Climate Action Network Europe Who is Climate Action Network Europe? We focus on climate change 85 European member organisations More than 300 members of the Climate Action Network (CAN) Global perspective CAN a major player in the Kyoto process

3. Rob Bradley, Climate Action Network Europe What is climate leadership? International dimension – ratification, coalition building, engagement with developing countries Meet own target with strong and credible policies and measures Show that technology forcing and creative PAMs achieve real emission cuts without economic disaster

4. Rob Bradley, Climate Action Network Europe Climate policy in the EU Perverse subsidiesLiberalisation increases energy demandSecurity of supply => more coalExport and trade policies Climate Policy

5. Rob Bradley, Climate Action Network Europe Competitiveness worries

6. Rob Bradley, Climate Action Network Europe Energy market liberalisation Slow and halting progress towards total market opening Market still badly distorted by subsidies and strong incumbents Lower prices and supply-focused reform make demand management very difficult

7. Rob Bradley, Climate Action Network Europe Security of supply Issue raised to provide cover for coal and nuclear subsidies Main threat in oil, but most action proposed in electricity 15% rule explicitly allows market protection for favoured technologies

8. Rob Bradley, Climate Action Network Europe Domestic politics Coal industry restructuring Lobbying weight of the energy sector Concerns over fuel poverty Reluctance to tackle transport

9. Rob Bradley, Climate Action Network Europe So how are we doing? Nice coherent package on paper ECCP, ET, Kyoto mechanisms, member state actions balanced EU world champion at saying the right thing!

10. Rob Bradley, Climate Action Network Europe Emission trading: the proposal Absolute cap to cover large point emitters Target setting and allocation to be done by member states Unrestricted trading within this cap Compliance penalty €100/tonne (or 2x permit price) plus restitution

11. Rob Bradley, Climate Action Network Europe Emission trading: the debate How does this sit with pre-existing climate policies? Mandatory or voluntary? Links with other mechanisms Sector and gas coverage

12. Rob Bradley, Climate Action Network Europe Emission trading: the prospects Germany opposed, UK going solo, many uninterested Majority voting makes blocking hard Growing enthusiasm among (non-German) industry NGOs gradually warming to the idea

13. Rob Bradley, Climate Action Network Europe ECCP initiatives Energy efficiency in buildings Energy services/ DSM Biofuels Fluorinated gases Cogeneration

14. Rob Bradley, Climate Action Network Europe Energy efficiency in buildings Non-prescriptive approach – based on auditing requirements and some reporting Was supposed to save 45 million tonnes CO2 Timelines postponed too late to help with Kyoto

15. Rob Bradley, Climate Action Network Europe Energy services/ DSM Energy services are the “magic bullet” of climate and liberalisation DSM aspects of liberalisation legislation mostly rejected Everyone seems unsure what this directive should even contain

16. Rob Bradley, Climate Action Network Europe Biofuels Proposed Directive makes no attempt to ensure environmental advantages from biofuels Commission estimates 100-150 Euro per tonne CO2 abatement cost “Environmental” measure has become another agribusiness subsidy plan

17. Rob Bradley, Climate Action Network Europe Fluorinated gases Commission proposing to amend reg. 20/37 on O3 depleting substances Risks concentrating on containment (the “consensus”) Needs to move much further in encouraging adoption of alternatives

18. Rob Bradley, Climate Action Network Europe Cogeneration Directive Need for Directive as CHP often treated poorly in market liberalisation Targets abandoned Talk bogged down on definitions Commission went slowly, now with Parliament

19. Rob Bradley, Climate Action Network Europe Fiscal measures Many countries have electricity and/or carbon taxes Proposal for harmonisation since 1992 – going nowhere slowly Concerns include fuel poverty (UK), inflation (Spain) and competitiveness (everybody) Tackling subsidies is even harder, but possibly more important

20. Rob Bradley, Climate Action Network Europe And against that… Continuing subsidies to coal, nuclear and even to natural gas Structural funds skewed in favour of road transport Export credits, IFIs, bilateral aid…

21. Rob Bradley, Climate Action Network Europe The need for coherence ECCP was a package for a reason Perverse effects from unbalanced policy implementation – e.g. emission trading and trains Many parts of government still have to realise that climate policy exists EU policy famously multidirectional – this will not be temporary! (fishing, tobacco)