Industry NewsThe European Commission has set a higher emission reduction target for 2020. However, rather than the 30 per cent cut that had been widely expected, the EC has opted for a less ambitious 25 per cent cut compared to the current 20 per cent target. The tougher targets have been instigated both in reflection of the lower costs of achieving them, as well as the greater urgency in seeing action on climate change.
The EC has unveiled its "Roadmap? for securing a low-carbon future for Europe. The document outlines the details of what member states should be aiming for by 2050. The targets are tougher than any other place in the world, with the EC seeking to lead by example. It has also indicated that there are definite benefits in making strong policy decisions now. However, the EC underlined that these targets have been assessed to be the most cost-effective ways of hitting environmental goals while keeping Europe competitive.
Reflecting the concerns over both the carbon allowance market and the use of carbon offsets, these will have a more limited role going forward it would seem. The EC underlined that domestic action should be the priority for member states. It commented, "By 2050 the EU should therefore reduce emissions by 80 per cent compared to 1990 levels through domestic action alone. Any credits used would increase the overall emissions reduction beyond 80 per cent."
In order to hit this target, overall reductions of 40 and 60 per cent have now been set for 2030 and 2050 respectively. This is higher than the previous targets of 30 and 40 per cent, although these were not binding targets. The legislated 20 per cent cut by 2020 is also to be modified to the previously mentioned 25 per cent. In addition, the EC provided plans to set aside emission allowances for Phase III in order to promote energy efficiency.
Connie Hedegaard, European Commissioner for Climate Action, commented, "We need to start the transition towards a competitive low carbon economy now. The longer we wait, the higher the cost will be. As oil prices keep rising, Europe is paying more every year for its energy bill and becoming more vulnerable to price shocks. So starting the transition now will pay off. And the good news is we don't need to wait for technological breakthroughs. The low carbon economy can be built by further developing proven technologies that exist already today."