Climate Action

EU climate policy developments and accession process

LOCSEE Capacity Building Workshop on

Transferring EU Legislation on Climate Change &

Developing Low Carbon Policies

24 May 2013, Graz

Dimitrios ZEVGOLIS, DG CLIMA.A.1

Climate Action

Structure of this presentation

• EU's Work Plan

• Implications of EU climate policy and legislation for

EU accession process

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EU’s work plan

1. Deliver on international commitments

2. Elaborate EU international negotiation position: Consultative Communication (March 2013) and Stakeholder Consultation (till June 2013)

3. Continue and strengthen domestic implementation towards 2020

4. Identify adaptation policy until 2020: EU Adaptation Strategy (April 2013)

5. Identify viable long-term trajectories and milestones: Low Carbon Roadmap 2050 and Energy Roadmap 2050 (were already issued in 2011/2012)

6. Identify effective, efficient and fair mitigation policies: 2030 Framework (March 2013) and Stakeholder Consultation (till July 2013)

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Deliver the 2008-2012 target under the Kyoto Protocol

Actual and projected emissions of EU-15, in MtCO2-eq.

EU-15 currently over-achieve 2008-2012 Kyoto target of 8% emissions reductions

In 2010, EU-15 GHG emissions are 11% below the base-year level.

Provisional 2011 data show -14% reduction in EU-15 GHG emissions

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Deliver the 2012-2020 target under the Kyoto Protocol

Between 1990 and 2011, EU-27 GDP grew by 48% while emissions decreased by 18%

Despite a slight increase of GHG emissions in 2010 compared to 2009 of 2.4%, there is a decreasing trend since 2004

Actual and projected emissions of EU-27, in MtCO2-eq.

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"Doha Climate Gateway"

1. Agreement on work plan for the negotiation round leading to the 2015 agreement

2. Adoption of a 2013-2020 CP2 for Kyoto Protocol

3. Closure of the old negotiation tracks

4. Finance package

5. Loss and Damage

http://unfccc4.meta-fusion.com/kongresse/cop18/templ/play.php?id_kongresssession=5833&theme=unfccc

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What next: Key issues - commitments

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Consultative Communication on the 2015 Agreement

• Adopted on 26 March; online public consultation until 26 June

• A stakeholder conference held on 17 April

• Start EU-wide discussion on design 2015 Agreement

• No substantive recommendations, but set of questions, including on issues addressed in breakout groups

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Domestic implementation towards 2020

• Implement the 2020 Climate and Energy Package

• Europe 2020 targets for sustainable growth are achievable, but challenges remain for individual countries

• Climate action is essential element in the EU economic cooperation (European Semester)

• Mainstreaming climate into the Structural Funds

• Mainstreaming climate into next EU budget 2014-2020: minimum 20% of expenditure climate related (e.g. IPA)

• ETS needs strengthening: short term and structural measures

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New and Planned Policy Initiatives and Legislation – Monitoring Mechanism Regulation (MMR)

Status: The Council and the European Parliament reached agreement on the revision in December 2012 and the text was formally approved by the Parliament in March 2013. Once adopted by the Council, the new Regulation (MMR) is expected to enter into force by mid-2013.

Key objectives: timely, transparent and accurate reporting at EU and MS level

Enhance current KP rules and align them with the requirements of the Climate and Energy package (in particular Effort Sharing Decision)

Keep track of progress towards 2013-2020 emission targets

Improve quality of data reported

Ensure effective development and implementation of EU policies

LULUCF, adaptation

Support the EU and MS in meeting their UNFCCC commitments

Including financial and technical support to developing countries

Increase accessibility of information/user-friendliness of products

Climate change: headline target under the Europe 2020 strategy

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EU ETS - Phase 3

Achievements

• One carbon price, level playing field across the EU

• Technically functioning and liquid market

• Long-term clarity on reductions (-1.74%)

But triggered by recession challenge of a surplus

• In 2012 and 2013 rapid build-up of surplus, largely due to regulatory provisions in the transition of phase 2 to phase 3.

• Surplus continues to grow, and estimated to reach for most of Phase 3 up to 2020 a size of around 2 billion allowances.

• Low carbon prices, reduced role in incentivising emission reductions

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ETS reform - Two step approach

First step: • Slow down the rapid surplus build-up in the short

term

proposal to postpone auctioning of 900 million

allowances ("back-loading")

Second step: • Sustainable solution with “structural action”

required

Carbon market report has started a discussion

that looks into 6 possible options for such action

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EU ETS - Options for structural measures

• Option a: Increasing 2020 target to -30%

• Option b: Retirement of phase 3 allowances

• Option c: Early revision of linear factor

• Option d: Include other sectors in the ETS

• Option e: Limit access to international credits

• Option f: Discretionary price management

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New and Planned Policy Initiatives and Legislation – Other (1)

ETS Aviation: ''Stop the clock''

The requirement for airlines to surrender emission allowances for flights into and out of Europe deferred until after the 2013 International Civil Aviation Organization (ICAO) General Assembly next autumn.

EU Effort-Sharing

Decision on State Annual Emission Allocations 2013-2020

Amendment of the Registry Regulation, to accommodate transfers under the Effort Sharing Decision

Ozone-depleting substances, fluorinated greenhouse gases

Continue work under the Montreal Protocol, also to maximise the climate benefits

Review of the Regulation on fluorinated greenhouse gases

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LULUCF

Commission Proposal of 12 March 2012 for a Decision on accounting rules and action plans on greenhouse gas emissions and removals resulting from activities related to land use, land use change and forest

The Council and the European Parliament reached agreement on a text in December 2012 and this was formally approved by the Parliament in March 2013. Once adopted by the Council, the decision is expected to enter into force by mid-2013.

Limit amount of 1st gen. biofuels (ILUC)

The proposed Directive (amending FQD and RED) starts the transition to biofuels that deliver solid GHG savings also when estimated ILUC impacts are considered while respecting existing investments.

Commission's view is to not support 1st generation biofuels post 2020.

The use of food-based biofuels to meet the 10% renewable energy target of the Renewable Energy Directive will be limited to 5%

New and Planned Policy Initiatives and Legislation – Other (2)

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CO2/cars and vans

2012: Decision on Excess Emissions Premiums for CO2/cars, Delegated Act on derogations for CO2/vans and Implementing Regulation on CO2 monitoring

Review of modalities of 2020 targets for cars and vans

Communication on light duty vehicle regulation post-2020 Fuel quality

Implementing act on Article 7a of Fuel Quality Directive (method for determining the reduction of life-cycle GHG emissions from fossile fuels)

Maritime transport

Possible proposal on MRV of greenhouse gas emissions

Carbon Capture and Storage

Consultative Communication on the future of CCS published in March 2013

New and Planned Policy Initiatives and Legislation – Other (3)

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Towards 2020: Adaptation

Cost efficient mitigation and adaptation are both essential and complementary. • Need to increase mitigation efforts: If the 2°C

target is missed, adaptation increasingly costly. • Need to manage risks of adverse effects of

climate change: • Adaptation is inevitable (delayed impact of

emissions) and is cheaper: 1€ invested in flood protection saves 6 € damage costs.

• Postponed adaptation and maladaptation will lead

to higher damage costs: ≥ 100 bn/year by 2020; 250 bn/year by 2050 for the EU

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The three priorities of the EU’s Adaptation Strategy

1. Promoting action by Member States i. Supporting all Member States to adopt an adaptation

strategy by 2017 ii. EU funding for adaptation in priority areas, e.g. cities

2. Better informed decision making

i. Closing knowledge gaps ii. Facilitating knowledge dissemination via Climate-ADAPT

3. Promoting adaptation in key vulnerable sectors

i. Climate proofing EU common policies and the use of EU funds

ii. Key role for insurance and other financial products

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Efficient pathway and

milestones:

-25% in 2020 -40% in 2030 -60% in 2040

Beyond 2020: The 2050 Low-Carbon Roadmap

80% domestic reduction in 2050 is feasible

with currently available

technologies,

with behavioural change

only induced through

prices

if all economic sectors

contribute to a varying

degree & pace.

0%

20%

40%

60%

80%

100%

1990 2000 2010 2020 2030 2040 2050

0%

20%

40%

60%

80%

100%

Current policy

Power Sector

Residential & Tertiary

Non CO2 Other Sectors

Industry

Transport

Non CO2 Agriculture

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GDP and GHG decoupling

40

60

80

100

120

140

160

180

200

220

1990 2000 2010 2020 2030

19

90

= 1

00

%

GDP GHG emissions

Additional domestic investment: € 270 billion annually during 2010-2050, equivalent to 1.5% of GDP (Total investment – 19% of GDP in 2009), of which • built environment (buildings

and appliances): € 75 bn • transport (vehicles and

infrastructure): € 150 bn • power (electricity generation,

grid): € 30 bn

Beyond 2020: Investing in innovation …

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• Fuel savings: € 175 to 320 billion on average annually during

2010-2050

• Primary energy consumption about 30% below 2005 without

negatively affecting energy services

• Making EU economy more energy secure:

• Halves imports of oil and gas compared to today

• Saving € 400 billion of EU oil and gas import bill in 2050, equivalent to > 3% of

today’s GDP

• Air quality and health benefits: € 27 billion in 2030 and € 88

billion in 2050

Beyond 2020: … means reducing the energy bill, raising

air quality & health and creating jobs

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Key Findings from the 2050 Roadmaps

40% GHG reduction by 2030 in the EU to be on track to reach a GHG reduction of between 80-95% by 2050, consistent with 2°C

Higher shares of renewable energy,

energy efficiency and smarter energy infrastructure:

"no regrets"

Significant investments needed, with or without decarbonisation, which

impact energy prices Renewables, the policy scenarios in the Energy Roadmap 2050 indicate a share of around 30% in 2030

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Increased certainty for Member States and

reduced regulatory risks for investors

Growth and jobs through

demand for efficient and

low-carbon technologies

Definition of EU ambitions in view of a new

international climate change agreement

Early agreement on the 2030 framework is essential

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•Which climate and energy targets should be set for 2030?

•If so, which ones? Targets

•Which are the most appropriate policy instruments to meet the new targets?

•How can Research and Innovation best support the 2030 framework? Instruments

•How best to foster growth and jobs?

•How can EU policies take account of international developments? E.g. Climate negotiations

•How can internationally competitive and affordable energy prices be ensured?

Competitiveness & Security of Supply

•How to ensure an equitable distribution of efforts among Member States?

•How to best consider the different investment capacities of industry sectors and consumer groups?

Effort Sharing

Stakeholders can express their views on the 2030 framework

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2050 Roadmaps

2030 Green Paper

Proposals for the 2030 framework for climate and energy

policies

2011 March 2013 By end 2013

The 2030 framework will build on the 2050 Roadmaps - Concrete proposals by the end of 2013

On-going discussions with Member States, EU institutions and stakeholders

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Concrete steps towards the 2030 climate and energy framework in 2013

Impact Assessment

Jan.

Commission proposals for the 2030 framework

Feb. Mar. Apr. Jun. Jul. Aug Sept. Oct. Nov. Dec. May

22-24

April

Informal

22 May

European

Council

Adoption of the Green Paper consultation procedure

Council meetings

Update of reference scenario

2012

Before

end 2013

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• Implications of the EU Climate Policy and Legislation for the EU

Accession Process

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• Countries lack comprehensive climate strategies and policies

• Inter-institutional coordination is weak or non-existent

• Weak administrative capacity

• Alignment with EU international positions

• Alignment with acquis at early stage

• IPA climate programming at its infancy

State of play

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• To succeed, strategic top-level vision and steer is essential in order to manage the process towards low-carbon future

• Integrated policy development is key (climate, energy, transport ..)

• Cooperation and coordination between involved and interested decision-makers, institutions, citizens, businesses, NGOs, etc, is imperative

Key priorities

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• A long-term national low-emission development strategy (with targets for 2020, 2030, 2040, 2050), converging with EU climate policy and legislation

• Measurable objectives, targets and action plans

• High quality Monitoring, Reporting and Verification (MRV)

• Convergence with the EU Monitoring Mechanism

• Stronger administrative capacity

• Legislative framework

In concrete terms, the following is needed:

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Most important is own domestic action

EU facilitates with bilateral, regional and international co-operation

Bilateral level • Enlargement process (SAA Council and Committees, sub-

committees) • Policy dialogue and technical co-operation • Enhanced use of enlargement instruments (IPA, TAIEX)

Regional level

Regional initiatives, in particular RENA/ECRAN

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• Strategy development put in the agenda

• Preparations for interinstitutional cooperation

• Building IPA climate project pipeline

• Enhanced coordination with IFIs

• Ad hoc technical assistance on certain acquis

topics (TAIEX)

• Awareness raising, ETS-like installations

identification, and regional capacity building on

ETS and MMD (RENA)

Achievements due to EU facilitation

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Thank you !

http://world-you-like.europa.eu/en/