Eastern states and EU industry will probably receive more cash to reach 2030 climate goals

Poorer eastern member states in the European Union and big emitting industries could get tens of billions of euros in additional funds next decade to help them meet the bloc’s 2030 energy and climate goals. EU leaders are examining measures aimed at appeasing reluctant states such as coal-dependent Poland and other poorer eastern European nations.

Lawmakers have pledged to agree in October a package of targets for cutting greenhouse gas emissions by 2030, deploying renewable energy and improving energy efficiency, but are split over how to divide the related costs and efforts.

Outgoing European Council President Herman van Rompuy is steering talks over how to spread the burden of cutting the bloc’s emissions by 40 percent below 1990 levels by 2030.

The proposals include a fund to finance innovation and emissions cuts among utilities and industrial manufacturers, and one to help low-income member states modernize their energy systems.

The so-called “new innovation facility” would build on a similar fund dubbed the NER300 that raised around 2 billion euros ($2.6 billion) for renewable energy and other low-carbon initiatives by selling 300 million allowances from the EU Emissions Trading System (ETS) between 2011 and 2014.

Separately, the “modernization fund” would help subsidize low-carbon investment related to the power sector in the EU’s poorer nations including Bulgaria and Romania.

The conclusions propose earmarking 5 percent of all ETS allowances between 2021 and 2030 for the innovation facility, and 4 percent for the modernization fund.

The draft sets out individual member state emissions targets for those sectors not regulated by the EU’s carbon market, based on national income and greenhouse gas output.

Low-income and low emitting Eastern European and former Soviet bloc countries face targets of either 1 or 8 percent below 2005 levels, while richer and more polluting Britain, France and Germany would each take on a 40 percent cut goal.

 

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