Fears rise that EU may drop climate pledge

John Vidal and Juliette Jowit
The Guardian,
Friday October 10 2008

EU heads of state plan to use the global financial crisis as an excuse to renege on climate change commitments, say sources close to energy talks in Brussels.
Papers seen by the Guardian suggest the EU council, which meets next week, wants to drop the previous pledge of an automatic increase in emissions cuts if the world decides on a big climate change deal 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 EU has a target of 20% emissions cut by 2020. This would rise to 30% if a global deal is signed. But the papers show the EU is seeking a new legislative process if the EU target rises above 20%. This effectively shelves the move to 30% and would take many years to complete.
The commission justifies its proposals by saying 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 firms, 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 to avoid dangerous climate change," said Tom Picken, head of international climate at Friends of the Earth.
Last week, it emerged that Poland, Greece, Hungary, Slovakia, Romania and Bulgaria opposed the package. In separate developments, Britain, Italy and others were accused of trying to dilute pledges for renewable energy.