Technology

EU ministers call for immediate low carbon action

The Green Growth Group, an informal group of Cabinet Ministers from across Europe, has called on the EU to take ‘ambitious and immediate low carbon action’ to tackle climate change and boost the economy.

Ministers from 13 EU member states, including the United Kingdom, signed a 40-page pamphlet outlining ‘the economic and strategic case for ambitious and immediate EU low carbon action’, in the hopes of providing a ‘useful contribution to the policy debate on the EU 2030 framework for climate and energy policies, reform of the EU Emissions Trading System (ETS) and EU leadership in the United Nations Framework Convention on Climate Change (UNFCCC)’.  

Entitled ‘Going for Green Growth: The case for ambitious and immediate EU low carbon action’, the pamphlet explores a range of topics relating to decarbonisation including the economic and social impacts of climate change, barriers to low carbon energy investments, and the benefits of bringing forward low-carbon infrastructure.

It identifies three areas of priority action for the EU to take:

  • agree an ‘ambitious’ EU 2030 Energy and Climate Policy Framework;
  • reform the structure of the EU’s Emissions Trading System; and
  • ensure the EU is in a position to put an ‘ambitious emissions reduction offer on the table’ at the World Leaders’ Climate Summit in autumn 2014.

Climate change effects

Contained within the document is a clear picture of how different parts of Europe are likely to be affected by climate change. According to the pamphlet, areas of north-western Europe, including the UK, will experience an increase in winter precipitation and river flow, the northward movement of species, and a decrease in energy demand for heating.

Mediterranean regions will face higher temperature increases, as well as a reduction in annual precipitation. These trends could result in various other impacts including less annual river flow, a decrease in crop yields, and a loss of biodiversity. Summer tourism could also suffer and the potential for hydropower will be negatively affected, the pamphlet warns.

In order to minimise the impact of climate change and to ensure the security of energy supplies, the Green Growth Group emphasises the need to decarbonise Europe’s future energy mix. The pamphlet claims that ‘[t]o keep the lights on and stay on a cost-effective decarbonisation path, Europe must replace a fleet of old power stations with cleaner energy, and substantially upgrade its infrastructure’.

Indeed, it estimates that across Europe, the investment needed to upgrade could amount to ‘€1 trillion (£840 billion) by 2020, €2.5 trillion (£2.1 trillion) by 2025 and up to €7 trillion (£5.8 trillion) by 2050’. Further, with public budgets feeling the strain, much of this investment would have to come from the private sector and long-term institutional investors.

However, it points to the IEA’s recent World Energy Outlook Reports which found that every year of ‘delayed mitigation action’ adds $500 billion (£311 billion)to the global low carbon energy investment bill between 2010 and 2030.

The pamphlet warns: 'Without clear EU-level low carbon investment drivers, national governments may choose to opt for fragmented national approaches to promote lower carbon energy investments. This could add costs to industry and businesses, confuse the regulatory landscape and undermine the EU’s internal market in the process.'

Fragmented National Approaches

After signing the pamphlet, the UK’s Energy and Climate Change Minister, Ed Davey said: “Thirteen EU countries and dozens of business leaders have come together to deliver a simple message - only by acting together and by showing leadership can we deliver the significant economic benefits that we have today shown is possible in tackling climate change.”

He continued: “Businesses and investors are telling us that the EU needs to get its act together and that we need to urgently agree a 2030 Climate and Energy Framework and reform the EU ETS. Only then will investors have the confidence to put the billions into low carbon that we need. 

“The consequences of inaction are clear,” added Davey. “The stakes are high, if we do not act, we could all lose out in the low carbon race.”

Despite this, Davey has already made it clear that he expects fossil fuels to continue to play an important role in delivering the UK’s future energy needs. On delivering the Gas Generation Strategy in December of last year, Davey said that gas will ‘continue to play a significant role in heat’ and ‘remain the dominant fuel in 2030’.

Further, Parliament has rejected calls to move away from carbon-based fuels, with both the House of Lords and the House of Commons rejecting an amendment to the upcoming Energy Bill that would have required government to introduce a decarbonisation target for the electricity sector by 1 April 2014 (instead of 2016).

‘No contradiction between being green and growing the economy’

The recommendations outlined by the Green Growth Group have met with positive feedback from a number of high-profile figures working in the area of international climate change and energy policy.

Connie Hedegaard, EU Commissioner for Climate Action, welcomed the initiative saying: “Europe is the living proof that there is no contradiction between being green and growing the economy. Actually it is interesting that some of our greenest member states in Europe also are among those with the most solid economies.

“The more European businesses and member states work together to understand that the growth of the 21st century must be green, the better.”

Hedegaard added that it is in Europe's ‘core economic interest to become more energy and resource efficient, and less dependent on imported fossil fuels’.

“We count on members states, businesses and investors to help exploit the big economic opportunities of the low-carbon transformation”, she said.

Christiana Figueres, Secretary General at the UNFCCC, also ‘applauded’ the call by the Green Growth group, saying: “Implementing clear policy frameworks that incentivize low-carbon, price carbon and lay the groundwork for emission reduction commitments in 2014 are the greatest contributions governments can make towards the new, universal 2015 climate agreement currently under design.

“Forward thinking businesses clearly have an interest in supporting political action toward low-carbon which will allow them to thrive in the coming green economy. This is the type of leadership we need to give the world our best chance of meeting the climate challenge.”

Summing up the need for action, Laurence Tubiana, Director of Institute for Sustainable Development and International Relations (IDDRI), said: “Energy is too important for the future of Europe to be left on the side lines. We need to exit the crisis in the right direction. A strong 2030 energy and climate package is a pillar of European reform. And it is crucial to negotiating a successful outcome internationally in 2015.”

The Green Growth Group is made up of energy, climate and environment ministers from the UK, Germany, France, Italy, Spain, Netherlands, Belgium, Portugal, Sweden, Denmark, Finland, Slovenia, and Estonia.

Read ‘Going for Green Growth’