Caroline Jelavich

October 23, 2008

On October 15--16, 2008, the European Council met to go over current economic, financial, social, and environmental policies. With the growing concerns regarding the economy there was much concern on whether the European Union would maintain its plans for the Climate Change Pact. At the end of the meeting Italy, Poland, Germany, all voiced concerns regarding the cost of the Pact. Both Italy and Poland threatened to use their veto powers if their concerns were not heard.

Some of the Eastern European countries have voiced a concern regarding the specific costs given their weaker economies. Such countries are more dependent on coal and other CO2-producing fuels and worry that they might not be able to keep up with the wealthier member states.

The European Union unveiled this plan in March 2007, and it was greeted with unanimity at its inception. Currently the Climate Change Pact calls for a reduction in greenhouse gases by 20% from the 1990 standard, an increase in renewable energy by 20%, and an increase in energy efficiency by 20%. The plan is to fully initiate these measures by the year 2020 in response to the global warming crisis. As of now the European Union's greenhouse gas emitting fuel is at 80%.

Specific measures include liberalizing the European Union's energy market and creating definitive steps by December 2008 in order to reach the energy efficiency goals. At the heart of the plan is the emissions trading scheme, which would force European companies to buy permits in order to pollute. The goal is to encourage businesses to become cleaner in order to save money. Controversy over this matter has member states wondering if European businesses will instead move to countries where there is less regulation. Specifically French President and current President of the European Council, Nicholas Sarkozy, wanted to allow certain sectors a "blanket" exemption by giving free permits. Great Britain, in particular, opposes this idea. Possible areas that will be effected by this include aviation, forestry and surface transport, and land-use change. If the European Union achieves these goals, it will lead the way in fighting global warming in 2009.

The climate policy goes hand-in-hand with the Union's energy security plan. Unlike the climate plan, definitive measures were taken with regard to the energy security plan in the President of the European Council's report. Such measures include: finalizing the internal market on electricity and gas, increasing transparency on energy flows and stockpiles, strengthening European transport networks, and creating a schedule by the end of the year for the interconnections in the Baltic region. So while the climate change policy may be at a temporary stand-still, it seems as though the Union will push through its energy security initiative.

At the end of discussions, President Sarkozy stated that it was crucial for the Union to stay on track with the current plan, while considering the concerns of some member countries. With the support of Great Britain, among others, it seems as though the plan may be tailored to take in account each member states' concerns, but not vetoed.

Sources:

Presidency Conclusions of the Brussels European Council, § 16 (2008) http://www.consilium.europa.eu/ueDocs/cms_Data/docs/pressData/en/ec/103441.pdf.

Presidency Conclusions of the Brussels European Council for March 2007, §§ 27--35 (2007) http://register.consilium.europa.eu/pdf/en/07/st07/st07224-re01.en07.pdf.

Crisis puts EU climate pact in danger, Taipei Times, Oct. 16, 2008 at 6 available at http://www.taipeitimes.com/News/world/archives/2008/10/16/2003426057.

EU Climate Pact Under Veto Threat as Financial Crisis Bites, Envtl. News Network, Oct. 16, 2008, http://www.enn.com/business/article/38428.

EU Aims to Set Pace in Fighting Climate Change, Envtl. News Network, Mar. 14, 2008, http://www.enn.com/top_stories/article/32931.