European Union will establish an ambitious climate policy by 2030
Thirteen European environment ministers and dozens of business leaders, such as Coca Cola Enterprises and Shell, urged the European Union on Monday to adopt “ambitious” energy and climate goals for 2030 to create a low-carbon economy in Europe to encourage investment. Therefore, they want to offer a strict emissions cut pledge at a climate summit which will take place next autumn.
“Businesses and investors are telling us that the EU needs to get its act together … only then will investors have the confidence to put the billions into low carbon that we need,” Edward Davey, Britain’s energy and climate change secretary, said in a statement.
The EU has met a target to cut 1990-level greenhouse gas emissions by 20 percent by 2020, as a result of lower energy demand following recession and a shift towards green power, such as solar and wind. Now, the EU has to establish a target by 2030. They are thinking of cutting a 40 percent in domestic emissions versus 1990 levels by that year.
A decision on the EU’s 2030 target will form the basis of the its potential emissions reduction offer as part of United Nations’ climate negotiations on a global climate deal and Governments are under pressure to offer large cuts by a September summit hosted by U.N. Secretary General Ban Ki-Moon.
On the other hand, the European Commission is also considering ways to reform the structure of the EU’s Emissions Trading System (ETS). This is because EU carbon permit prices have lost around 75 percent of their value over the past five years due to the over-supply of permits and dampened demand due to recession.
The Commission is expected to publish structural reforms by the end of this year, but it has yet to confirm details. Some observers have said the favored reform option would be to set up a mechanism to regulate the supply of EU carbon permits.