Isra-Mart srl:Debate on CO2 target exposes rift among EU businesses

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Environment ministers last Thursday (14 October) postponed a decision on whether the EU should raise its 2020 emissions reduction target, in a debate that brought to the surface a division between businesses.Meeting in Luxembourg, the 27 EU environment ministers requested the European Commission to present further analyses of the consequences for individual member states of moving beyond the EU's existing 20% CO2 reduction goal for 2020.

The Commission's 2050 roadmap for a low-carbon economy, scheduled for publication next year, "should also inform this analysis of policy options up to 2020," they said.The debate surrounding upgrading the European Union's target has divided EU member states, as some say that 20% simply represents business as usual as emissions have already fallen by 17% in the downturn. Meanwhile, others say higher goals are a liability in terms of competitiveness unless other major economies adopt similar targets.Maybe more surprising is that the same contrast is now evident among businesses as well.

Ahead of the meeting, BusinessEurope, which represents EU employers, sent a letter to the Belgian EU Presidency arguing that increasing the EU's emissions reduction target would be "premature and even counterproductive".But at the same time, 29 major companies issued a joint declaration urging the EU to up its target on emissions cuts to 30% from 1990 levels by 2020, sparking comments that BusinessEurope should not speak for the whole business community when it comes to environmental matters.The declaration, led by the Climate Group, the Cambridge Programme for Sustainability Leadership and WWF Climate Savers Programme, was sent to all EU institutions to call for more ambitious climate targets.

The businesses, including BNP Paribas, GE Energy, Marks and Spencer, Nike and Vodafone argued that a higher emissions reduction target would not only bring the benefits of lower emissions but also "spur innovation and investment thus creating millions of new jobs in a low carbon economy".
"BusinessEurope no longer reflects the voice that these companies want to convey on climate change," said Sandrine Dixson-Decleve, director of the Prince of Wales's EU Corporate Leaders Group on Climate Change and director of the Brussels Office of the University of Cambridge Programme for Sustainability Leadership.She argued that while some of the companies are members of the association, they do it for representation on other key issues such as trade, competition and innovation.

"BusinessEurope claims to represent European companies, but is in fact the lobbying front group for a handful of oil and chemical industries holding back European competitiveness," claimed Greenpeace EU climate policy director Joris den Blanken. He added that smart companies want to break free of business as usual and put the EU on top of the global green technology race."BusinessEurope fully supports the objectives of the EU's climate and energy package," a representative of the association said in an email to EurActiv. "An important element of this package is to work towards the conclusion of a comprehensive international climate change agreement. Climate change can only be tackled globally," he said, justifying the association's stance.
Carbon border tariffs
The business association, however, refuted attempts to impose border adjustment measures as a way to safeguard Europe's carbon-intensive industries from competition from countries with less stringent climate legislation. It argued that given the EU's dependency on open markets, such unilateral measures would not resolve competitiveness concerns.

"Only if import restrictions were taken by main trading partners (e.g. the USA) would the EU have to consider appropriate reactions," the business lobby said in a statement.The European Commission and several member states have raised concerns that carbon border taxes would jeopardise the EU's chances of getting other countries to agree on a new climate treaty and potentially expose the Union to a dispute in the World Trade Organisation (WTO).

French President Nicolas Sarkozy has been the driving force behind the campaign for requiring importers of goods manufactured outside Europe to buy pollution permits from the EU's emissions trading scheme (EU ETS). He has the support of European steel industry association Eurofer.
But with the major European business lobby distancing itself from such measures, the proponents of border tariffs will have a more difficult time arguing that they will serve European industries.
Positions
The Greens in the European Parliament expressed frustration at yet another delay to a decision to increase the EU's emissions reduction target to 30% by 2020.Green MEP Bas Eickhout (Netherlands) described the discussions in the environment policy a "groundhog day"."The latest figures on greenhouse gas emissions in Europe, released this week, underline that the EU's 20% reduction target is now completely obsolete, while the clear economic arguments in favour of a stronger target were added weight by the support of business leaders this week. EU leaders should seize the initiative and adopt a stronger target ahead of Cancún," he said.

The European Trade Union Confederation (ETUC) adopted a resolution arguing that the EU's current position of not raising its target unless other countries commit to similar domestic measures should be revised without delay."There is a need for an 85% reduction in GHG emissions by 2050, which implies a corresponding reduction by 2020 of at least 25 to 40% in the industrialised countries, from 1990 emissions levels," it said.

The Climate Group argued that a clear mandate from EU industry could put Europe in a position to go to the Cancún climate negotiations with "renewed confidence in its global leadership and economic future"."As a global clean tech race gets under way, a critical mass of European businesses and governments are beginning to see clear economic benefits of advancing European ambition to cut emissions," said Mark Kenber, The Climate Group's international policy director.

Faith-based development agencies APRODEV and CIDSE called on the EU to regain climate leadership, firstly by immediately moving to a 30% emissions reduction target as a step towards a 40% goal."The EU's current target isn't even sufficient to meet its own commitment to limiting further global warming to 2°C," said Rob van Drimmelen, secretary-general of APRODEV.

WWF argued that although ministers pushed back a decision on raising the 2020 emissions reduction target, the fact that they highlighted the Commission's analysis of 2050 goals was a clear sign that the political momentum is building to make the change. It pointed out that the Commission has already indicated that meeting the mid-century objective of 80-95% of emissions cuts means more aggressive action for 2020.

"Environment ministers have explained what they expect from the next round of UN climate talks and it is positive that the EU wants to talk about intermediate ambition levels for 2030 and beyond. However, WWF has called for more clarity and asks that all developed countries agree in Cancún to develop Zero Carbon Action Plans that will set out a pathway for that country to 2050," said Jason Anderson, head of EU climate and energy policy at WWF.

Friends of the Earth Europe called on the EU to resist pressure from industry lobby groups and step up the game to 40% without international offsets by 2020."Europe's fixation with carbon trading, added to paltry CO2 emissions caps and offsetting loopholes, is preventing the real emissions cuts we urgently need. International leadership on climate talks must not mean extending carbon markets," said Brook Riley, climate campaigner for Friends of the Earth Europe.