FACTBOX-EU's Energy and Climate Plan, Sticking Points
Date: 18-Jan-08
Country: INTERNATIONAL
Following are the main elements and sticking points in the plan, to be presented on Wednesday, which is still being debated by the European Union executive and must then be approved by the 27 member states and the European Parliament.
"EFFORT-SHARING" ON CARBON DIOXIDE
The Commission will propose how EU states should cut their greenhouse gas emissions after 2013 to achieve an agreed goal of reducing them by 20 percent by 2020 from 1990 levels.
According to EU officials, the poorest new members from central and eastern Europe are expected to be allowed to increase their emissions by up to 20 percent from 2005 levels, so the 15 old members will bear most of the burden.
Many countries are seeking smaller targets to ease the economic pain.
REFORMING EMISSIONS TRADING
The Commission is expected to propose auctioning pollution permits after 2012, a plan that has drawn criticism from European businesses worried about their global competitiveness.
The plan is expected to force firms to buy carbon dioxide (CO2) emissions permits upfront, rather than receiving them for free as they do now. Initially in 2013, 60 percent of the permits are to be sold, growing to 100 percent in 2020.
INCREASING, MAKING MANDATORY USE OF RENEWABLES INC BIOFUELS
The Commission is to ensure that the share of renewable sources in power production grows to at least 20 percent in 2020 from 8.5 percent now. Renewables include solar, wind and hydro-electric power as well as biomass.
It will propose targets for all countries, taking into account their ability to produce renewable energy, with some to be below 20 percent and others above.
News media and officials have said Germany will get a 20 percent target, Britain and Poland 15 percent, the Netherlands 14 percent, France 23 percent and Spain 20 percent.
Sweden, which gets 40 percent of its power from renewables, is to have a 50 percent target and Austria 34 percent.
Sweden is expected to protest against such a steep increase and France is likely to seek credit for its large nuclear power sector, which does not emit carbon dioxide.
The Commission may propose allowing countries unable to reach their goals to buy the remainder from outperforming producers, but that has been criticised in Germany and Spain.
The directive is to require that at least 10 percent of biofuels be used in fuels for road transport from 2020, and ensure biofuel production does not endanger the environment.
A directive is an EU umbrella law that must be implemented by all member states, with possible EU court action for non-compliance.
PROMOTING CARBON CAPTURE, STORAGE
It will allow firms to get credit under the EU's emissions trading scheme for capturing and storing carbon dioxide instead of releasing it into the atmosphere.
It will lay out rules to govern the trapping of carbon, transporting it and injecting it into a geological space.
RULES ON STATE AID TO PROMOTE ENVIRONMENT PROTECTION
The guidelines will specify under which conditions aid for environmental protection may be deemed compatible with EU rules. The EU normally bans state aid that distorts competition.
REPORT ON NEW SUSTAINABLE COAL TECHNOLOGIES
It will promote the use of low-polluting coal in electricity production.
(Editing by Anthony Barker)
