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European Commission: Environment Directorate: Climate strategy, international negotiation and monitoring of EU action

Article 3.14: The EU’s implementation and reporting Part II: Emissions trading and relations with 3rd countries

Jürgen LefeverePolicy CoordinatorUnit C.1: Climate Strategy, International Negotiations and Monitoring of EU Action

Environment Directorate GeneralEuropean Commission, Brussels


OutlineOutline

EU’sEU’s implementation of Article 3.14implementation of Article 3.14Part I: Domestic ActionPart I: Domestic Action

EU emissions thus farEuropean Climate Change Programme (ECCP)

Review implementation phase ICO2 and carsCarbon Capture and Geological StorageAviationAdaptation

Part II: Emissions trading and relations with 3Part II: Emissions trading and relations with 3rdrd countriescountriesEU emissions trading schemeRelations with 3rd countries

Reporting methodologiesReporting methodologies


EU’sEU’s implementation of Article 3.14implementation of Article 3.14

“Each Party included in Annex I shall strive to implement the commitments […] in such a way as to minimize adverse social, environmental and economic impacts on developing country

Parties, particularly those identified in Article 4, paragraphs 8 and 9, of the Convention”.

EU implementation through:EU implementation through:Targeting multiple gasesTargeting multiple gasesTargeting multiple sectorsTargeting multiple sectorsUse of (Kyoto) marketUse of (Kyoto) market--based mechanismsbased mechanismsCooperation and dialogue with developing countries Cooperation and dialogue with developing countries (mitigation and adaptation)(mitigation and adaptation)


EU ETS&

impacts on 3rd countries


EU Progress towards Kyoto targetEU Progress towards Kyoto target

90

95

100

105

11019

90

1995

2000

2005

2010

base

yea

r em

issi

ons=

100

EU-25 emissions

EU-25 existing measures

EU-25 additionalmeasuresEU-15 emissions

EU-15 existing measures

EU-15 additionalmeasuresEU-15 target (Kyoto)

Business as usual

Linear target path

Kyoto mechanisms andcarbon sinks


The EU Emissions Trading SchemeThe EU Emissions Trading Scheme

>10,000 installations monitoring & reporting >10,000 installations monitoring & reporting CO2 emissionsCO2 emissionsCulture change: a financial issue Culture change: a financial issue Modern environmental tool: leastModern environmental tool: least--cost solution cost solution promoting energy efficiency/operational promoting energy efficiency/operational changes, takechanges, take--up and improvement of clean up and improvement of clean technologies over timetechnologies over timeContributes towards fulfilment of the Kyoto Contributes towards fulfilment of the Kyoto ProtocolProtocolWorld’s largest emissions trading scheme: World’s largest emissions trading scheme: nucleus of international carbon marketnucleus of international carbon market


Global Carbon Market and the EU ETSVolumes and Values

Volumes & Values 1st half 06:

• Total: 684 Mt, €12 billion• EU ETS: 440 Mt, €9.9 billion

• CDM: 193 Mt, €1.5 billion• JI & other: 48 Mt, € 304 million

Source: Point Carbon

Volumes & Values 2005:

• Total: 799 Mt, €9.4 billion• EU ETS: 362 Mt, €7.2 billion

• CDM: 397 Mt, €1.9 billion• JI & other: 36 Mt, €147

million

Source: Point Carbon


The Global Carbon MarketThe Global Carbon Market

EU ETS value:2,200 million tonnes * €16/tonne

= €35,200 Million/year

CDM Market Value:85 million tonnes * €12/tonne

= €1,020 Million/year

Adaptation Fund:2% = €20.4 Million/year


Cooperation with 3rd countries


Winning the BattleWinning the BattleAgainst Global Climate Change….Against Global Climate Change….

Concrete steps:Concrete steps:

Commission Communication “Winning the Battle Commission Communication “Winning the Battle Against Global Climate Change”, February 2005Against Global Climate Change”, February 2005EurEur. Council Dec 2005 & . Council Dec 2005 & EnvEnv. Council March 2006. Council March 2006

Stronger coStronger co--operation with 3operation with 3rdrd countriescountries

Focus so far on:Focus so far on:Russia, India, ChinaRussia, India, China

Regional (ACP, ASEM, ASEAN, LAC, OPEC, GCC)Regional (ACP, ASEM, ASEAN, LAC, OPEC, GCC)Preparations for South Africa, Brazil and KoreaPreparations for South Africa, Brazil and Korea


Climate Change in the Climate Change in the EU’sEU’sdevelopment portfoliodevelopment portfolio

EU is the worldEU is the world’’s largest donor, providing s largest donor, providing more than half of all global ODA, over more than half of all global ODA, over €€30 30 billion in 2003billion in 2003Monterrey conference (2002): ODA increase Monterrey conference (2002): ODA increase from 0.33% to 0.39% by 2006 (+ from 0.33% to 0.39% by 2006 (+ €€7 billion/year)7 billion/year)EU contribution to Bonn Commitment to EU contribution to Bonn Commitment to deliver US$ 410 million/year in climate change deliver US$ 410 million/year in climate change funding by 2005funding by 2005EU Action Plan for climate change in the EU Action Plan for climate change in the context of development cooperationcontext of development cooperation


Climate Change in the Climate Change in the EU’sEU’sresearch portfolioresearch portfolio

77thth Framework Framework ProgrammeProgramme for Researchfor ResearchThird country participation encouraged:Third country participation encouraged:

Total FP-7 budget: €32.37 billionEnergy: €2.30 billionEnvironment (incl. climate change): €1.90 billionTransport: €4.18 billion


Recent Major EURecent Major EU--Funded ProjectsFunded ProjectsIn addition to 9 Specific Targeted Research ProjectsIn addition to 9 Specific Targeted Research Projects

total EC funding of 13.5 M EURtotal EC funding of 13.5 M EUR

No of No of countriescountries

No of No of PartnersPartners

StartStartDurationDuration//

monthsmonths

CoordCoord..EU EU fundsfunds(M(M€€))

TitleTitleProject Project AcronymAcronym

7713131/4/041/4/046060BGSBGS(UK)(UK)

66Network of excellence on Network of excellence on geological sequestration of CO2geological sequestration of CO2

CO2GEONETCO2GEONET

1010(1 Third (1 Third country)country)

27271/5/061/5/066060TNOTNO(NL)(NL)

88The monitoring and verification The monitoring and verification of CO2 geological storageof CO2 geological storage

CO2REMOVECO2REMOVE

141430301/3/061/3/063636SINTEFSINTEF(NO)(NO)

44Preparing for large scale H2 Preparing for large scale H2 production from production from decarboniseddecarbonised

fossil fuels with CO2 geological fossil fuels with CO2 geological storagestorage

DYNAMISDYNAMIS

1818(4 Third (4 Third

countries)countries)

29291/4/061/4/063636BPBP(UK)(UK)

7.57.5CO2 capture and hydrogen CO2 capture and hydrogen production from gaseous fuelsproduction from gaseous fuels

CACHETCACHET

121230301/2/041/2/044848IFPIFP(FR)(FR)

8.58.5COCO22 from capture to storagefrom capture to storageCASTORCASTOR

9933331/3/041/3/046060VattenfallVattenfall(DE)(DE)

10.710.7Enhanced capture of COEnhanced capture of CO22ENCAPENCAP

8814141/4/041/4/046060PostdamPostdamResearchResearch

(DE)(DE)

8.78.7InIn--situ laboratory for capture situ laboratory for capture and sequestration of COand sequestration of CO22

CO2SINKCO2SINK


EU & Developing Countries: EU & Developing Countries: Cooperation InitiativesCooperation Initiatives

Ongoing initiativesOngoing initiativesAsia Pro Eco (2002Asia Pro Eco (2002--2007)2007)JREC (Johannesburg Renewable Energy Coalition) (2002JREC (Johannesburg Renewable Energy Coalition) (2002--))REEEP (Renewable Energy and Energy Efficiency Partnership)REEEP (Renewable Energy and Energy Efficiency Partnership)EUEU--India Initiative on Clean Development and Climate Change (Sept India Initiative on Clean Development and Climate Change (Sept 2005)2005)EUEU--China Partnership on Climate Change (Sept 2005)China Partnership on Climate Change (Sept 2005)European Commission member CSLF, IPHEEuropean Commission member CSLF, IPHE

New developments:New developments:EU EU -- Latin America (May 2006)Latin America (May 2006)EU EU -- African Caribbean & Pacific (ACP) (June 2006) African Caribbean & Pacific (ACP) (June 2006) EU EU -- OPEC & EUOPEC & EU--GCCGCCEU EU -- South Korea: policy dialogue on climate change (8 Sept 06) South Korea: policy dialogue on climate change (8 Sept 06) ASEM 6: cooperation on climate change (10ASEM 6: cooperation on climate change (10--11 Sept 06) 11 Sept 06)


EU EU -- African, Caribbean and Pacific African, Caribbean and Pacific Group of StatesGroup of States

ACPACP-- EU Energy Facility (June 2006)EU Energy Facility (June 2006)€220 million ACP-EU energy facility, call opened in June 2006 (financing delivery of modern energy services to rural areas of Sub-Saharan Africa, energy efficiency and renewable energy in Caribbean and Pacific Island States)

ACPACP--EU Council of Ministers (June 2006):EU Council of Ministers (June 2006):Declaration on Climate Change and DevelopmentAgreement on 10th European Development Fund(€24 billion, 2008-2013)


IndiaIndia--EU Strategic Partnership (Sept 05)EU Strategic Partnership (Sept 05)

EUEU--India Initiative on Climate ChangeIndia Initiative on Climate ChangeFocus on: clean technology cooperation, CDM, adaptation and policy dialogueFramework, steering specific cooperation activities of Commission and Member States

EUEU--India Energy CooperationIndia Energy Cooperation1st EU-India Industrial Conference On Energy, New Delhi, Apr 2006Energy Panel with working groups:

Energy efficiency and renewable energiesCoal and clean coal conversion technologiesFusion energy including India’s membership in ITER.


Cooperation with ChinaCooperation with China

EUEU--China Energy Conference (since 1996)China Energy Conference (since 1996)EUEU--China High Level Working Group on EnergyChina High Level Working Group on Energy

EU-China Action Plan on Clean Coal Technologies (March 2005)EU-China Action Plan on Energy Efficiency and Renewable Energies (March 2005)

EUEU--China High Level Dialogue on Energy and China High Level Dialogue on Energy and Transport Strategies (2005)Transport Strategies (2005)

EUEU--China Partnership on Climate Change (2005)China Partnership on Climate Change (2005)


EUEU--China Partnership on Climate China Partnership on Climate Change (Sept 2005)Change (Sept 2005)

Partnership on climate change:Partnership on climate change:Policy dialoguePolicy dialogueLowLow--carbon technologiescarbon technologiesAdaptationAdaptation

EU-China Workshop on Vulnerability and Adaptation (Sept 06)MarketMarket--based mechanismsbased mechanisms

Asia Carbon Expo, Beijing (Oct 06)

Key results:Key results:EIBEIB--funded funded €€500 million financing facility: investment projects in 500 million financing facility: investment projects in China that mitigate climate change in support of the Climate ChaChina that mitigate climate change in support of the Climate Change nge Partnership (under development)Partnership (under development)““Near Zero Emissions CoalNear Zero Emissions Coal””, construct plant by 2014, construct plant by 2014Phase 1: ~ € 10M, MoUs signed, kick-off conference (July 06)


EUEU--OPEC &OPEC &EUEU--Gulf Cooperation CouncilGulf Cooperation Council

EUEU--OPEC Energy Dialogue (since 2005)OPEC Energy Dialogue (since 2005)Proposal to establish EU-OPEC Energy Technology CentreJoint Conference on Carbon Capture and Storage (Sept 2006)Round Table on Energy Policies (Nov 2006)(focussing on policies adopted or envisaged relating to energy, environment and energy transportation)

EUEU--GCC working group on environmentGCC working group on environmentExpert meeting on climate change (Oct 2006)


Reporting methodologies


Reporting methodologies agreed in Reporting methodologies agreed in December 2005December 2005

15/CMP.115/CMP.1Para. 23: “provide information relating to how it is striving…”Para. 24: “incorporate information on how they give priority […] to the following actions”

31/CMP.131/CMP.1Para. 11: “workshop on reporting methodologies on ways…”

How to apply this methodology?How to apply this methodology?


Conclusions from experiences so farConclusions from experiences so far

Importance of dialogue to complement policiesImportance of dialogue to complement policiesBroad spectrum of activities requires:Broad spectrum of activities requires:

Balance between mitigation needs and mitigation impacts“Narrative” reportingAssessment of overall impact of measures taken, where relevant individual measures (across sectors, gases and using KP flexibility)Assessment of dialogue and stakeholder processes with 3rd country involvement

Methodologies only agreed December 2005, Methodologies only agreed December 2005, application from 2010, learning by doing!application from 2010, learning by doing!


More information on EU climate policy:More information on EU climate policy:http://http://ecec..europaeuropa..eueu//commcomm/environment//environment/climatclimat/home_en./home_en.htmhtm

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