Historic EU climate deal delivers carbon capture, storage funding

12 December 2008

EU leaders have agreed measures to deliver a unilateral commitment to reduce greenhouse gas emissions by 20 per cent by 2020 compared to 1990 levels. They also made a clear commitment to increase this target to 30 per cent in the context of an international climate agreement.

Speaking from Poznan where talks on a global climate deal are underway, the Energy and Climate Change Secretary, Ed Miliband welcomed the agreement.

He said, ‘The rest of the world has been watching, and Europe has delivered a credible and ambitious climate package. It sends a signal that, even in the most challenging of economic times, it’s possible to take bold far-sighted action to slash emissions.

‘Today’s agreement gives us the practical means to achieving our emission targets. The EU’s Emission Trading System is strengthened with a tighter cap and a greater levels of auctioning, putting a premium on low carbon technologies. We’ll see a massive increase in renewable energy and pressure from the UK has secured billions in funding for vital carbon capture and storage demonstration plants,’ he added.

‘Combined with a new spirit of engagement from the United States, there is now everything to play for as we put the pieces in place for a global climate deal in Copenhagen next December.’

The commitment includes a 20 per cent reduction of greenhouse gas emissions from 1990 levels, rising to 30 per cent if a global deal is reached. This also includes a European-wide commitment to 20 per cent of all energy to come from renewable sources by 2020.

Across the package, most of the 20 per cent reduction will be delivered domestically due to reductions as a result of the renewables targets, energy efficiency targets and the ETS, according to a statement. Access to international carbon credits are also to be limited in the ETS to ensure that at least half of the reductions required take place within the EU, whilst allowing flexibility to invest in low carbon projects across the globe.

The centrally set cap on the EU Emissions Trading System will also deliver emissions at 21 per cent below 2005 levels by 2020. At least 60 per cent of EU ETS allowances are to be auctioned by 2020. In Phase II only around 3 per cent of allowances are being auctioned.

The commitment also includes the use of 300 million EU ETS allowances, worth billions of pounds, to part-fund up to 12 Carbon Capture and Storage Demonstration plants, with a pledge to use half of all auctioning revenues to tackle climate change, within the EU and internationally.
The Climate Change and Energy package was agreed at the European Council. It will be voted on at the European Parliament next week as the final part of the co-decision process.

The EU Emissions Trading System is a cap and trade scheme which covers the industrial sector, responsible for 50 per cent of all European Emissions.

Copyright © 2008 newnet

Tags: carbon, carbon capture, emissions

This story was published on Friday, December 12th, 2008 at 6:28 pm and is filed under Europe, energy efficiency, policy. You can follow any responses to article entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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