MEPs resist industry calls to cut climate change targets

Euro-MPs today backed tough climate change targets despite warnings from industry that Europe must dilute its ambitions because of the economic recession.

The European Parliament’s Environment Committee endorsed proposals to cut greenhouse gases by 20% by 2020, and by 30% if the rest of the developed world agrees to do the same.

The MEPs also approved a goal of obtaining at least 20% of all EU energy needs from renewable sources by 2020.

And they approved a tougher Emissions Trading Scheme (ETS), under which industry is allowed limited CO2 emissions on the basis of trading CO2 “permits”. MEPs are saying companies should pay for their permits rather than be given a free allocation, as some governments have suggested.

The ETS, due to be extended from heavy industry to include aircraft emissions in future, is at the heart of a strategy designed to put the EU in the lead on climate change in time for a green summit in Copenhagen next year.

But the financial meltdown has sharpened divisions over the plan, with some sectors of industry warning that the tough pollution reduction targets endorsed today will be impossible in a severe downturn.

Green Party leader and MEP Caroline Lucas said: “I’m delighted that the Environment Committee saw off attempts by industry to completely derail the Emissions Trading Scheme.

“I’m relieved that the vote preserved the crucial principle of allocation by auctioning, whereby industry must pay for the right to emit. Handing out credits for free would have undermined this centrepiece of EU climate legislation and continued granting grotesque windfall profits to industry.”

The CBI also praised MEPs for sticking to the plans.

“Today’s vote will ensure a robust ETS that is the cornerstone of Europe’s ambitious emission reduction goals” said Neil Bentley, CBI Director of Business Environment.

“The vote makes clear that auctioning (of emissions permits) should play a greater role over time but that free allocation will be provided to those sectors that genuinely face a competitive disadvantage.”

Mr Bentley also welcomed MEPs’ decision to create incentives for investment in carbon capture and storage projects.

But Greenpeace said the move kept the EU “trapped in the 19th century”, because the decision set weak emission performance standards for coal plants.

“It means that highly polluting plants will continue to be built across the EU. Coal was dirty in the 19th century and it’s still dirty today. Europe must break free of the shackles of its past and phase out coal to save the climate,” said Joris den Blanken, Greenpeace EU climate and energy policy director.

Liberal Democrat MEP Chris Davies hailed support for his call for a ban on new coal power stations from 2015 unless they are fitted with carbon capture and storage technology (CCS) to curb their CO2 emissions.

“EU governments must now either back this proposal to kickstart CCS development or produce a realistic alternative. At present our ideas are the only show in town.

Scientists claim that the use of carbon capture and storage could halve total CO2 emissions from power stations and major industrial installations by 2050, said Mr Davies, adding: “Carbon capture and storage development has the potential to make an enormous contribution to the fight against climate change. We can afford no delay and no more construction of conventional coal-fired power stations.”

Green Alliance’s Stephen Hale said: “This is a real opportunity for Europe to kickstart a carbon capture and storage industry and show the world it means business in its international leadership position.”

The EU’s climate change plans still need approval from the full European Parliament, and from EU governments under pressure to scale down their plans if the economic gloom persists.