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Climate Action Network Europe

ISSUE Nº 66 NOVEMBER 2012

Once again this year our planet has been sending us a number warning signs as to what dangerous climate change looks like. It is becoming evident that impacts of climate change are being felt everywhere, developed countries included. The US was recently hit with super storm Sandy, which caused billions of dollars in damages, with 110 people dead and millions without electricity. Venice is also reeling from floods unprecedented in its recorded history. Nowhere is safe. But it is developing countries like Haiti, Cuba, Nigeria, the Philippines, Bangladesh and Pakistan that have been hardest hit by floods, typhoons, storms and extraordinary monsoons.

In spite of these catastrophic events the urgency to act is not being seen in the international negotiations. Climate change got just a tiny mention in newly re-elected President Obama’s speech. The reduction targets put forward in Copenhagen and Cancun are largely inadequate, putting the world on a pathway to 3.5-6°C of warming and several global-scale tipping points. We also know that is it not possible to adapt to this kind of warming. We know that we must take action.

Here are a few key elements that we at CAN Europe think the EU needs to focus on:

Save the Kyoto Protocol to ensure continued binding global action on climateFor a successful outcome in Doha, it is most important that the EU keeps its Durban promise to adopt and ratify a second commitment period of the Kyoto Protocol to start on 1 January 2013. Failing to do so would disastrously undermine the trust the EU built in making that promise. A meaningful second commitment period of the Kyoto Protocol that will deliver any emissions reductions requires higher targets as well as, most importantly, elimination of the surplus emission allowances, i.e., hot air.

Avoid a gap in climate funding and ensure money in the Green Climate FundIt is vital that in Doha the EU and other developed country partners communicate on how they will deliver on their commitments to mobilise $100bn per year by 2020 and to capitalise the Green Climate Fund. The lack of clarity on climate finance after 2012, when Fast-Start Finance is running out, not only delays vital investments in climate action, but also risks further progress towards the EU’s own goals in the climate negotiations. Sadly EU Finance Ministers failed to agree on a way forward. At the UN climate talks the EU must deliver a new finance package of at least double the current Fast-Start Finance levels, which will ensure poor countries that are most vulnerable get the support they need to adapt.

Seeing the impacts in Doha: Will countries look beyond the negotiating table and act?By MEERA GhANI ANd UlRIIKKA AARNIO, CAN EUROPE SENIOR POlICy OFFICERS

In this issue

p.1SeeIng tHe ImpactS In DoHa: WIll countrIeS look beyonD tHe negotIatIng table anD act?

p.2SHale gaS: SolutIon or problem?

p.3european commISSIon attemptS to StrengtHen tHe carbon market: WIll member StateS FolloW or let polluterS oFF tHe Hook?

p.4F gaSeS: tHe Super greenHouSe gaSeS

>> Continue on p.2

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Shale gas, and the technology used to extract it (called hydraulic fracturing, or 'fracking'), is becoming an important issue across Europe and currently high on the European Union’s political agenda. Both large and small oil and gas companies, with strong support from certain national governments, are lobbying heavily for political and financial support and permission for a large number of shale gas projects all over Europe.

However, because of major environmental concerns, this dash for shale gas is being met by strong resistance at local and national levels. People have taken to the streets, such as in France, Bulgaria and Romania, campaigning to block shale gas projects. The first global day of action against shale gas and fracking (the ‘Global Frackdown’) brought thousands of concerned citizens into the streets this September in almost every country in Europe. Many local and national governments are calling for moratoria or other measures to control the development of the shale gas industry.

Shale gas is being promoted as a safe, clean, low-emissions energy source that can help Europe increase its energy security and provide an affordable means for transitioning to a low-carbon economy. The hype accompanying the entry of shale gas as a possible energy 'game changer' in Europe derives from the rapid development of the sector in the US over the last ten to fifteen years.

But, the reality, as evidenced by countless examples from the US, is that serious environmental and human health risks exist: threats to groundwater quality, resulting from heavy use of chemicals; excessive amounts of water needed during the fracking process; impacts of fracking on air quality; stimulation of earth tremors; and, above all, a potential increase in greenhouse gas emissions. A growing number of scientific findings point to high emissions from shale gas extraction and use, even on par with coal. This could significantly contribute to reaching and overshooting a 2°C global temperature rise during the coming decades – the threshold beyond which many scientists believe catastrophic climate change may be unavoidable. Moreover, development of shale gas would lock Europe into another 50 years of fossil fuel development, as development of shale gas would divert limited capital investment available

away from renewable energy and energy efficiency.

Most of these problems were recently recognized at EU level in a set of studies paid for by the European Commission. However, despite acknowledging all the serious risks, the reports disturbingly still recommended that we find safe methods of extraction. How can an energy source that can so significantly damage our health and environment justify our spending billions of euros in research to find (improbable) safe methods of extraction? If the EU wants to achieve its ambitious climate objectives - complete decarbonisation of the European energy sector by 2050- and avoid irreversible climate consequences, the only viable and sustainable path is to massively invest in renewable energy and energy efficiency, not to develop another, unconventional, dirty fossil fuel. n

hOTSPOT NEWSlETTER Nº 66

SHale gaS: Solution or problem?By ANTOINE SIMON, FRIENdS OF ThE EARTh EUROPE

NOVEMBER 2012

Close the gigatonne gap - quantify the gap, increase targets, close loopholes and address all emissionsDespite agreement in Cancun that all developed countries should increase ambition to reduce emissions, and despite the fact that many major emitters have committed to taking action, the EU's ambition has not changed since 2008. The EU’s domestic emissions were estimated to be 17.5% below 1990 levels in 2011, leaving the EU’s current 20% reduction target looking very weak. The EU’s lack of ambition with regards to its current emissions reduction target jeopardises the important cooperation with the vulnerable countries that helped to achieve the outcomes in Durban.

Ensure that the new global 2015 agreement will be fair, adequate and bindingThe EU must seek to ensure that the final outcome of the Durban Platform negotiations will be an internationally legally binding protocol with common and accurate accounting, MRV, strong compliance and enforcement, all respecting the principle of common but differentiated responsibilities and respective capabilities (CBDRRC). It must have fair targets and actions that are consistent with a 1.5°C global carbon budget.

loss and damage must not be forgottenAdaptation efforts will not be enough to overcome the damage that is already being (and will continue to be) inflicted upon communities or the loss of livelihoods in some of the most vulnerable developing countries. These shortcomings directly undermine the potential for the countries in question to embark on low carbon and sustainable development pathways. In addition, as the threats of loss and damage grow, so do the number of countries that are faced with them. The EU has so far played a constructive role in the discussion on loss and damage. It now needs to help ensure that COP18 also provides the opportunity to establish a long-term process that will address the questions and problems around the need for increased and immediate funding, insurance and compensation mechanisms to help countries cope with extreme weather events as well as avenues for legal action by affected communities.

Three major reports that have come out recently – the International Energy Agencies World Energy Outlook for 2012, World Bank’s Turning Down the Heat and UN Environment Programme’s Emissions Gap Report for 2012 - make it very clear that unless governments act now we are headed for a catastrophic 4ºC world. The EU will not escape the impacts and needs to act now with ambition and genuine leadership at Doha. n

>> Continued from p.1, Seeing the impacts in Doha: Will countries look beyond the negotiating table and act?

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Action from the European Council and Parliament must not be delayedEuropean Commission proposals for structural reform of Europe’s carbon market, presented in mid-November, followed an earlier proposal to temporarily reduce oversupply of emissions allowances, a process known as “back-loading.” This is a necessary first step that must be urgently made to give the ETS a quick boost. More fundamental reforms are necessary to restore the relevance and effectiveness of the EU’s carbon market.

CAN Europe particularly welcomed the Commission’s analysis that raising the EU’s carbon emission reduction target for 2020 from 20 to 30 percent is seen as one of the options to bolster the ETS. Increasing the EU’s climate ambition should be a top priority, especially since its 20% target has already been met, almost 10 years in advance. CAN Europe supports the proposed permanent withdrawal of emission allowances, a steeper yearly reduction in the number of allowances and

limits to offset credits. All of these steps would help to fix the carbon market by creating more scarcity, providing boosts for green investments and ensuring that the EU does not lock itself into high-carbon infrastructure for decades.

Although the Commission proposal addresses the oversupply of allowances, which is predicted to reach 2 billion by 2020, it still fails to address the unjustified free allocations of credits to certain sectors. Proposed back-loading would only affect auction permits and would not decrease the number of free allowances provided to industries such as steel and cement producers, which already collected a massive surplus of allowances and are expected to receive even more free permits until 2020. The ETS “carbon leakage list” which defines industries classified as under threat of production relocation, was developed on the basis of an estimated carbon price of about €30 per tonne by 2020. Even with ambitious

interventions in the ETS, a carbon price of €30 is not expected to be reached anytime soon since today’s price is well below €10. At the same time, many countries like China, Australia and South Korea, have started to design their own carbon markets. CAN Europe calls on the European Commission to revise its carbon leakage list, taking into account current carbon price projections as well as carbon markets that are emerging worldwide.

What we now need to see is EU governments and the European Parliament working with the options for structural reform of the ETS put forward by the Commission. Action must be taken speedily to revive a market that is at the moment barely afloat after many months of record low carbon prices. CAN Europe would also urge the Commission to reassess the list of industries exposed to risk of “carbon leakage,” which are getting a free ride at our environment’s expense. n

hOTSPOT NEWSlETTER Nº 66

european commission attempts to strengthen the carbon market: Will member States follow or let polluters off the hook?By JUlIA MIChAlAK, CAN EUROPE POlICy OFFICER

NOVEMBER 2012

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NOVEMBER 2012hOTSPOT NEWSlETTER Nº 66

calenDar3 Dec: EU Energy Council

7 Dec: COP 18 ends

13-14 Dec: EU summit

17 Dec: EU Environment Council

23-24 April: CAN Europe General Assembly

HotspotPublished by Climate Action Network (CAN) Europe, the European office of CAN- a global coalition of over 750 NGOs working to halt the most dangerous effects of climate change.

CAN Europe promotes action to limit human-induced climate change to ecologically sustainable levels. CAN Europe represents over 140 members in 27 European countries, including most EU member states.

CAN Europe gratefully acknowledges support from the European Commission

Newsletter staff

editor responsible Wendel Trio

editor in Chief Vanessa Bulkacz

sub-editor Matthew Keys

subscriptions Email matthew[a]caneurope.org or subscribe via the CAN Europe website at www.caneurope.org, or via mail:

HOtsPOt Newsletter CAN Europe Mundo B, 4th Floor Rue d’Edimbourg 26 1050 Brussels BELGIUM

HOTSPOT is also available online at www.caneurope.org

Photo creditsp.1 beetle.lk/Flickrp.2 greensefa/Flickr p.3 Pete/Friends of the Earth Europe/ CAN Europep.4 Flickr/BirdphageAll other photos courtesy CAN Europe or creative commons licensing.

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Views expressed do not automatically reflect the policies or positions of CAN-Europe

2012 has been a busy year in the world of fluorinated greenhouse gases (‘F-gases’), the super greenhouse gases used in refrigeration and air conditioning,.

In September we celebrated the 25th Anniversary of the Montreal Protocol, the international environmental agreement that saved the ozone layer from destruction by two types of F-gases, CFCs and HCFCs. Many believe the Protocol should now extend its scope to address the most powerful F-gases, HFCs.

A couple of months later, in early November, the European Commission put out its much-awaited proposal for a revised EU F-gas Regulation. The EU proposal, which emerged after extensive internal wrangling within the European Commission and a ferocious counter-lobby by multinational chemical and equipment producers, is far from perfect. But it’s a start, and EIA will be working hard to improve it.

Seen from an international perspective, the fact that the European Union is proposing to move forward at all on F-gases signifies critical progress and is sure to have a positive impact worldwide. It demonstrates to the world that Europe is willing to put its money where its mouth is when it comes to eliminating HFCs.

Two proposals for a global phase-down of HFCs have been on the table at the Montreal Protocol for several years now. However, formal discussions have been repeatedly blocked by India and China, both of which have sizeable domestic fluorochemical industries.

However, at the UNFCCC intersessional meeting in Bangkok this summer, governments gave strong backing to action on HFCs under the Montreal Protocol in discussions on pre-2020 climate ambition

(under the Durban Platform for Enhanced Action (ADP)-2).

Looking at the statistics, it’s not surprising that HFCs are emerging as a priority action for combating climate change. The UN Environment Programme’s (UNEP) report on Bridging the Emissions Gap shows that by 2020, assuming complete implementation of countries’ current pledges under the UNFCCC, there will be a six gigatonne gap between what is required to limit global temperature rise to 2°C and actual emissions. So while the science says we should only be emitting 44 gigatonnes of CO2-e/year by 2020, we are actually on a pathway to emit 50 gigatonnes. These 6 gigatonnes are equivalent to the annual greenhouse gas emissions from 1.2 billion passenger vehicles. This analysis is backed up by a whole host of studies, including last year’s report by the International Energy Agency.

In addition, HFC emissions are the fastest growing source of greenhouse gas emissions worldwide, and are predicted to soar to 5-8.8 gigatonnes of CO2-equivalent by 2050, equivalent to 9-19% of global CO2 emissions under a business-as-usual scenario. Their elimination would represent a significant step forward by the international community at a time when the effects of climate change are becoming increasingly hard to ignore.

For more information, contact EIA or visit www.eia-international.org n

member foCus: eiaF gases: the Super greenhouse gasesBy AlISdAIR CAMERON, EIA

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