1. European Commission: DG Environment What is happening in the European Union on climate change? Artur Runge-Metzger European Commission

2. European Commission: DG Environment 1. European Union – present situation

3. European Commission: DG Environment The EUs projected progress towards its Kyoto Commitments

4. European Commission: DG Environment The EUs share of greenhouse gas emissions

5. European Commission: DG Environment Energy mix, EU-15, business as usual

6. European Commission: DG Environment Europeans are feeling the heat l Europe has warmed more than the global average, with a 0.95 °C increase since 1900. l Temperatures in winter have increased more than in summer. l The warming has been greatest in the most northern latitudes and the Iberian Peninsula. l From 1990 to 2100, the global average temperature is projected to increase by 1.4– 5.8 °C and 2–6.3 °C for Europe.

7. European Commission: DG Environment The extreme summer 2003 could become normal in a few decades only Average temperature for June July August 2003: Observations ( + ) simulation with scenario A2 Source: Meteo France 2003

8. European Commission: DG Environment 2. Selected EU policies and actions

9. European Commission: DG Environment

10. EU climate policies: The broadbrush overview

11. European Commission: DG Environment European Climate Change Programme (ECCP) – engagement of social actors Working groups - Emissions trading - Flexible mechanisms - Energy supply - Energy demand - end-use equipment - Transport - Industry - Fluorinated gasses - Research - Agriculture - Sinks agr. soils - Forestry sinks ECCP steering committee ECCP Principles integration transparency stakeholder consultation group expertise build consensus ECCP Approach reduction potential cost-effective cross-sectoral time frame for implem. ancillary effects WG Reports/ P&M analysed conclusions Commission action plan

12. European Commission: DG Environment ECCP: Recently adopted domestic measures Cross-cutting issues Directive on GHG emissions trading within the Community (Oct. 2003) Linking project-based mechanisms to GHG emissions trading (Oct. 2004) Decision for monitoring Community GHG emissions and for implementing the Kyoto Protocol (Feb. 2004) Energy Directive on the promotion of renewable energy sources (Sept. 2001) Directive on taxation of energy products (Oct. 2003) Directive on energy performance of buildings (Jan. 2003) Directive on the promotion of co-generation (CHP) (Feb. 2004) Transport Promotion of the use of bio-fuels for transport Agriculture (Biofuels, Cross compliance), Landfill Directive

13. European Commission: DG Environment Emissions trading: EU is implementing a company-based scheme since 1.1.2005 l CO 2 emissions from energy intensive industry above specific capacity thresholds (45 – 50 % of EU CO 2 emissions) l Around 10,500 installations m electricity generators m heat & steam production m mineral oil refineries m ferrous metals: production & processing m cement, lime glass, bricks and ceramics m pulp & paper sector

14. European Commission: DG Environment Use of Kyoto Mechanisms: Planned purchases by Member States (in addition to company use!) Almost 520 Million tonnes of CO 2 eq (2008-2012) Allocated resources thus far: 2.7 billion Million tonnes of CO 2 eq. Austria35.00 Belgium42.00 Denmark22.50 FinlandAt least 3.0 Ireland18.50 Italy198.00 Luxembourg15.00 Netherlands100.00 Spain100.00 SwedenAt least 5.0

15. European Commission: DG Environment ECCP push policies: Development and demonstration of new technologies l Research & Technology Development: m 6 th Framework Programme (5-yr): energy ( 800 million), transport ( 600 million), global change and ecosystems ( 700 million) or more than 420 mill p.a. m Financial Perspectives 2007-2013 (state of negotiations): energy ( 2.2 billion), transport ( 4.1 billion), environment ( 1.8 billion) or more than 1.1 billion p.a. m Technology Platforms: hydrogen and fuel cells, zero emission fossil fuel power plants l Demonstration programmes: m Intelligent Energy for Europe (e.g. ALTENER, SAVE, COOPENER, STEER) m LIFE, LIFE+ m Competitiveness and Innovation Programme (2007-2013, proposed)

16. European Commission: DG Environment ECCP: Ongoing domestic legislative work…. Energy Proposal for a framework directive on eco-efficiency requirements for energy-using products Proposal for a Directive on energy end-use efficiency and energy services Transport Proposal for improvements in infrastructure use and charging Proposal on special tax arrangements for diesel fuel used for commercial purposes and on the alignment of excise duties on petrol and diesel fuel Proposal for a regulation on the granting of Community financial assistance to improve the environmental performance of the freight transport system (Marco Polo I and II program) Products Proposal for legislative action on fluorinated gases

17. European Commission: DG Environment ECCP II long-term challenge: Making the EU fit for post-2012 l Aviation – Start Nov. 2005 Legislative proposal l Integrated approach on CO2 emissions of light duty vehicles – Start December 2005 Revised Community strategy to reduce CO2 emissions from light-duty vehicles (end 2006) l Carbon dioxide capture and geological storage – start March 2006 (report June 2006) Legislative proposal (2007) l Impacts and Adaptation – start April 2006 Green Paper on adaptation (November 2006) l EU ETS Review – start after the summer break 2006 legislative proposal mid-2007 l Sectoral studies – 2006-08: In-depth sectoral studies assessing emission potential and establishing marginal abatement costs groundwork for legislative proposals after 2008

18. European Commission: DG Environment 3. Building together another future

19. European Commission: DG Environment The EUs level of aspiration 2°C

20. European Commission: DG Environment Deep reductions are required Non-action is not a feasible option. The more action is postponed, the greater the risk of irreversible change Well below 550 ppm Global emissions likely to grow within next two decades and then reduce by at least 15 % but perhaps as much as 50 % by 2050 compared to 1990 Explore pathways for industrialised countries to reach cuts of 15 – 30 % by 2020, 60 – 80 % by 2050 compared to 1990 Keeping the door open strategy

21. European Commission: DG Environment Reducing global emissions is affordable through global action Reversing global emission trends by 2025 would reduce global GDP in 2025 by about 2.4 % compared to BAU while GDP would more than double – assuming gradual participation of all countries

22. European Commission: DG Environment - negotiation space Five essential elements: 1. Build on Kyoto 2. Broaden participation 3. Include more sectors and all gases 4. Deploy and develop technologies 5. Adapt to the effects of residual climate change

23. European Commission: DG Environment l Total BAU investment: US$ 17 trillion incl. Universal Access to Electricity until 2030 l Price tag for climate- friendly: + 15 % = US$ 2.6 trillion in 25 years (~ 0.3 % of global annual GDP); i.e. approximately US$ 100 billion per year of which ~ 50 % in developing countries (IBRD: US$ 20–120 billion) Whatever we decide, we must rise to the challenge: e.g. incremental finance required in the energy sector

24. European Commission: DG Environment l Total BAU investment: US$ 17 trillion incl. Universal Access to Electricity until 2030 l Price tag for climate- friendly: + 15 % = US$ 2.6 trillion in 25 years (~ 0.3 % of global annual GDP); i.e. approximately US$ 100 billion per year of which ~ 50 % in developing countries (IBRD: US$ 20–120 billion) l Annual Official Development Assistance (ODA) = US$ 100 billion (- but only US$ 6.2 billion for the energy sector) l World Bank (2005): US$ 1.8 billion for the energy sector l Global Environment Facility = US$ 1.7 billion over 14 years l CDM: US$ 5-7 billion for 2008-2012 Whatever we decide, we must rise to the challenge: e.g. incremental finance required in the energy sector

25. European Commission: DG Environment Creating international political momentum l Platforms: m UNFCCC m G8, esp. Gleneagles Dialogue, IBRD Investment Framework, IEA m Bilateral Summits (US, Russia, India, China, Japan…) m Climate Change & Energy Partnerships (India, China, Russia…) m Strengthen policy analysis and dialogue (e.g. BASIC, IEA…) m US-led technology initiatives (CSLF, hydrogen,…) l Instruments: m Carbon Market, e.g. Clean Development Mechanism ( 2.7 billion from MS, total 2.1 bn tonnes CO 2 eq by 2012 of which almost 90 % through CDM) m Country Strategy-based funding (e.g. policy dialogues, Energy- Environment-Programs) m New Public and Public/Private Partnership funding instruments: European Investment Bank/funding for CCS m Research and Technology Development Funds

26. European Commission: DG Environment http://europa.eu.int/ comm/environment/ climat/home_en.htm