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January 17, 2007

Hot air

Are Europe’s governments just blowing hot air when it comes to climate change? On Tuesday it was the turn of Belgium and the Netherlands to be told by Brussels that their proposed greenhouse gas emissions were too high.

Slovakia, meanwhile, is mulling over whether to take legal action after a similar order.

Last week the European Commission called for ambitious targets to reduce emissions by at least 20 per cent below 1990 levels by 2020 but national governments seem reluctant to agree, undermining efforts to persuade George W Bush and others to join in a global scheme.

So far, the Commission has found 11 of the 12 plans for 2008-12 capped emissions at too high a level.

Slovakia, told to cut by a quarter, said it was examining all options, including a legal case. It said that any reduction would strangle its economic growth.

Belgium’s proposed 63.3m tonnes of carbon dioxide was reduced to 58.5m, while the Netherland’s suggested 90.4m should be 85.8m.

The fifteen “old” EU members agreed to reduce emissions to below 8 per cent of 1990 levels by 2012 under the Kyoto protocol and set up a scheme to trade permits between installations such as power plants and factories. Only the UK’s cap so far has been in line with Commission requirements.

Germany, the bloc’s biggest emitter, has sent mixed smoke signals after Brussels’ rejection of its plan in November. The economics ministry has hinted at legal action while this week Sigmar Gabriel, environment minister, yesterday called for an even more ambitious European cut than the Commission, of 30 per cent.

It is thought unlikely Berlin would pick a public fight with the Commission while it holds the rotating presidency of the EU until June. Indeed, a letter sent in December offers a compromise, according to a person who has seen it. Though it sets no overall cap, it proposes greater use of clean development mechanism, allowing companies to buy cheaper permits from investing in emission-cutting projects in the developing world. They would increase from 12 to 20 per cent of the total, effectively offsetting a cut in the proposed cap of 482m tonnes of carbon dioxide, to 453.1m, as the Commission demands.

Mr Gabriel is to meet Stavros Dimas, environment commissioner, before the end of the month to discuss the plan.

The commissioner’s staff say he is merely doing his job as friendly policeman. One said: “He will not move on the caps. His job is to help the member states meet their commitments. There is a discrepancy between government leaders who commit to targets and the ministries sending the plans.”

He also wants an exemption from the scheme for new coal-fired power stations for 14 years to be removed from the plan, believing it amounts to illegal state aid.

The Commission is still examining France’s proposal, which was withdrawn in November before it was rejected to avoid losing face. It was resubmitted quietly over the Christmas holidays with a reduced cap. Cyprus also withdrew its plan yesterday amid signs it would be rejected.

Even these are not the worst in class. The Commission is taking legal action against Denmark and Hungary for not submitting any plans at all.

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