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Climate change package unacceptable for trade unions and some major EU countries
16.01.2008, 09:46
Trade unions have urged the European Commission to delay its
keenly awaited climate change package rather than introduce it without measures
designed to soften its "social impact." John Monks, the secretary
general of European Trade Union Confederation (ETUC), told journalists on
Tuesday (15 January) that the commission's current draft of proposals on
reaching energy targets and curbing CO2 emissions, to be unveiled on 23
January, is "unacceptable", adding that while the EU executive did
listen to trade unions' concerns, it did not tackle them in the draft
legislation.
The legislation,
expected to primarily affect energy intensive industries such as steel,
chemicals, fertiliser, cement, aluminium, and pulp and paper businesses, will
lay out concrete measures on how the bloc will cut carbon dioxide emissions by
20 percent below 1990 levels and boost the use of renewable energy by the same
amount, both by 2020 - targets agreed by EU leaders in March last year. Fore-mentioned
industries are expected to have to raise their prices under the more stringent
green rules, weakening their position against competitors from other economic
superpowers such as the US or China.
"We are not against the climate change targets," Mr Monks said,
adding: "we believe in targets but we must take into account the social
impact of the proposed policy shift and deal with it."
Also, some major EU countries are joining forces against Brussels' blueprint. Germany and Spain sent a letter to the commissioner on Monday (15 January) objecting to draft proposals that would encourage private firms to trade in renewable energy, according to a report from Reuters.
The two governments are worried that such a system could threaten their current
domestic 'feed-in' programmes. A feed-in system is an incentive structure that
obliges electricity utilities to purchase renewable energy from such sources as
solar, wind, biomass and geothermal power at above-market rates.
Feed-in tariffs have resulted in substantial growth in wind power in Germany
and Spain, and Denmark as well.
Both Latvia and Slovenia support the letter, according to Reuters.
A range of member states have written to the commission outlining their
concerns ahead of the renewables energy proposals.
Sweden would also like to receive special treatment, as some 40% percent of its
energy production already comes from renewable sources.
In a letter to commission president Jose Manuel Barroso, French leader Nicolas
Sarkozy said that some of the pending proposals are "neither efficient,
fair nor economically sustainable" for France, the Financial Times
reported.
The ETUC is lobbying for a "European low-carbon economy adjustment
fund" to help workers affected by job losses, as well as a carbon levy on
imports to protect Europe's heavy industry from competition from abroad.
Social compensation to workers from the adjustment fund as well as costs for
boosting energy efficiency for poor households could be partially covered by
resources from the auctioning of emission permits, say the trade unions.
Under a draft plan, the bloc's revised Emissions Trading System (ETS) - a
system allowing industry to buy and sell pollution credits - would put to
auction at least two-thirds of the total quantity of emission allowances in
2013. Currently it is less than ten percent.
Earlier this month, media reports indicated that Brussels intended to oblige
firms from heavily polluting countries outside Europe to buy EU carbon emission
permits.
But according to the ETUC, the idea of carbon tax has been "relegated in
the [latest] commission's documents to the rank of a mere option, which could
be decided in 2011 after a review of the situation."
"We know we'll be accused of protectionism," said Mr Monks, but added
that it would be a "lose-lose" situation if the EU's climate change
policy led to a relocation of companies to "dirtier" countries.
For its part, the European Commission refuses to comment on the early versions
of the climate change proposals but its spokeswoman confirmed on Tuesday that
the controversial package is still planned for 23 January.