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Facts about the EU's draft climate change package

23 January 2008, 16:49 CET

(BRUSSELS) - The European Commission's new drive to fight global warming, unveiled in Brussels Wednesday, aims to slash carbon dioxide emissions and boost renewable energy use.

The measures are aimed at translating into concrete action the EU's goal of cutting emissions of the gases that cause climate change by 20 percent by 2020, compared to 1990 levels.

To help achieve that, the bloc wants to increase the use of renewable energies like biomass, wind, wave and solar power to 20 percent of all energy forms by then.

The scheme has come under heavy fire from industry and many of the 27 EU nations amid concern that the price to achieve the goals will be too high.

One pillar of the package is to toughen up the EU's emissions trading scheme, which allows energy intensive industries to buy and sell permits to pump out carbon dioxide.

Most of the permits are given away free by national governments to the nearly 12,000 plants concerned, but from 2013 these companies will have to buy them in a kind of auction.

Industrial emissions account for about half the greenhouse gases produced.

They are to be capped at 21 percent below levels in 2005 -- when the last reliable emissions data was available -- and see new sectors phased in such as aviation, petrochemicals, ammonia and aluminium.

Emissions from road transport and shipping, as well as the agriculture and forestry sectors, will not be included, but are to be cut by an average 10 percent from 2005 levels.

The EU's executive body has also allocated percentages of renewable energy that the countries should be using in their overall mix by 2020. The total target for then is 20 percent, compared to around 8.5 percent currently.

Renewables concern three main sectors: electricity, heating and cooling, and transport. On the latter, an area where greenhouse gas emissions are growing most rapidly, the commission set a mandatory 10 percent use of biofuels.

The national targets are calculated on the basis of gross domestic product (GDP).

For example Sweden, which has already invested in green technologies, has been asked to increase its percentage from almost 40 percent currently to 49 percent in 12 years.

Latvia, Finland, Austria, and Portugal also have to make big efforts.

Meanwhile, new members Bulgaria and Romania, which are poorer and are heavily dependent on coal, have the lightest load.

Another plan focuses on promoting carbon capture and storage, whereby carbon dioxide -- the main global warming gas -- is trapped by devices like filters and stored underground.

The package also includes a fresh look at state aid rules and how they should be loosened when it comes to environmental projects.

The commission hopes to have its plans approved by EU member nations and the European Parliament by the end of the year, but given the outcry the measures are almost certain to be modified.

Text and Picture Copyright 2008 AFP. All other Copyright 2008 EUbusiness Ltd. All rights reserved. This material is intended solely for personal use. Any other reproduction, publication or redistribution of this material without the written agreement of the copyright owner is strictly forbidden and any breach of copyright will be considered actionable.




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