European Nations Agree To “Historic” Carbon Emissions Reductions After Agreeing To “Pay Eastern European Countries” For Reduced Pollution After Collapse Of Communism

“…The nine east European nations were seen as the final blockage to agreeing a package of measures aimed at tackling climate change but which will ramp up costs for their highly polluting coal-fired power sectors…”

“…The money is partly framed as a reward for the massive drop in emissions they experienced when their industry collapsed in the wake of communism…Their power sectors were also partially exempted from paying for emissions permits from the ETS on a sliding scale starting with paying for 30 percent of emissions in 2013, rising to 100 percent in 2020…”

 

 

 

http://www.reuters.com/article/environmentNews/idUSTRE4BB36720081212?sp=true

Europe secured the world’s widest agreement to battle climate change on Friday after paying east European states to accept changes that will punish their heavily polluting power sectors and ramp up electricity prices.

The historic deal to cut carbon dioxide by a fifth by 2020 was secured despite an economic crisis by allowing a myriad of exemptions for industry, sparking criticism from environmental groups.

“This is a flagship EU policy with no captain, a mutinous crew and several gaping holes in it,” said Sanjeev Kumar of environment pressure group WWF.

But French President Nicolas Sarkozy rejected that view, saying: “This is quite historic.”

“You will not find another continent in this world that has given itself such binding rules as we have just adopted,” he added.

The agreement came after a year-long battle dominated by a struggle between eastern and western Europe over the costs.

The nine east European nations were seen as the final blockage to agreeing a package of measures aimed at tackling climate change but which will ramp up costs for their highly polluting coal-fired power sectors.

Two swathes of funding will be distributed to them taken from around 12 percent of revenues from the EU’s flagship emissions trading scheme (ETS), which makes industry buy permits to pollute.

The money is partly framed as a reward for the massive drop in emissions they experienced when their industry collapsed in the wake of communism.

Their power sectors were also partially exempted from paying for emissions permits from the ETS on a sliding scale starting with paying for 30 percent of emissions in 2013, rising to 100 percent in 2020.

BAD GUY

Hungary had battled to the end of negotiations for more money, while Italy fought to protect its glass, ceramics, paper and cast iron industries, and eventually dropped a threat to block the deal.

“I can’t use any veto on the climate question because I can’t cast myself in the bad-guy role since the left would use this position to fight me politically,” said Italian Prime Minister Silvio Berlusconi.

Measures were agreed to reduce the risk that carbon curbs would hurt European industry and reduce its ability to compete with less regulated rivals overseas. The biggest threats are seen for steel, aluminum, cement and chemicals.

European industries exposed to international competition will receive free emissions permits if they will see a 5 percent increase in costs, a measure that is viewed as covering over 90 percent of EU industry.

Britain came away having secured a boost to funding for innovative technology to capture and bury emissions from power stations underground in depleted North Sea gas fields.

“Gordon Brown made clear this was one of his priorities not only because of the environment benefits, but also because it offer Europe the opportunity to lead the pack, securing jobs and growth,” said a British diplomat.