EU countries may use economic crisis to ditch climate change commitments

Papers seen by the Guardian suggest the EU council will water down measures to tackle global warming
John Vidal and Juliette Jowit
guardian.co.uk,
Thursday October 09 2008 17.47 BST

Leaders of EU countries plan to use the global financial crisis as an excuse to renege on climate change commitments, according to sources close to energy negotiations in Brussels.
Papers seen by the Guardian suggest the EU council, which meets next week, propose dropping the previous commitment to an automatic increase in emissions cuts if the world gets a major climate change agreement next year. It also intends to allow countries to avoid having to cut their own emissions by letting them purchase a large proportion of reductions from overseas.
The current EU target of a 20% reduction in emissions by 2020 will automatically increase to 30% if a global deal is signed. But the papers show that the EU is seeking a completely new legislative process if the EU target is to go over 20%. This effectively shelves the move to 30% and would take many years to complete.
The commission justifies its proposals by saying that EU countries paying for emissions cuts would transfer up to €42bn (£33bn) to developing and other countries from 2008-2020.
It also wants a change in the auctioning of pollution allowances for power companies, which could lead to windfall profits estimated at up to €15bn.
Last night environmental groups said the moves could allow countries such as Britain to build a new generation of coal power stations without fear of exceeding their legally binding emission targets.
"By simply buying cheap projects in developing countries, the EU will avoid making the type of transformations needed in our domestic economy needed to avoid dangerous climate change," said Tom Picken, head of international climate at Friends of the Earth.
"We are on the verge of losing an ambitious climate package. It sends the wrong signal to developing countries — it appears that developed countries are not willing to adopt domestic emission reduction targets," said a WWF spokeswoman.
The moves come as energy ministers prepare to meet in Luxembourg on Friday in advance of the heads of state meeting next week, where the climate change and energy package of measures will be addressed. New British climate change and energy secretary, Ed Miliband, will attend.
Last week, it emerged that Poland, Greece, Hungary, Slovakia, Romania and Bulgaria had opposed the whole package. In separate developments Britain, Italy and others were accused of trying to water down commitments for renewable energy.
News of the European political leaders' moves comes as senior business figures and government advisers are urging politicians not to use the current financial crisis to abandon crucial investment in clean energy and efficiency to tackle climate change, cut costs and improve security.
On Thursday, Lord Browne of Madingley, the former chief executive of BP, warned "none of what's happened — however dramatic or distressing — detracts from what remains our most pressing energy challenge: combating climate change."
Browne, now president of the Royal Academy of Engineering, called for a big political investment in new energy technology to match the US New Deal that rebuilt economies after the second world war. "What is called for is nothing less than a new generation of political leadership — leadership that transcends the day-to-day tussle of electoral politics and short-term economic cycles," he said.
Miliband insisted the UK was negotiating the best deal possible. He added: "Now is not the time to row back on our ambitions in tackling climate change. Cutting the costs of energy is good for people as it keeps down their fuel bills and it's good for the planet as it reduces dangerous climate change.
"The current economic difficulties make these issues more important, not less. EU ministers have rightly signed up to achieve 20% of energy coming from renewable energy sources by 2020 and it is important we show that we are committed to that target."