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(2004/C 33 E/134)

WRITTEN QUESTION E-1575/03

by Chris Davies (ELDR) to the Commission

(8 May 2003)

Subject:   Greenhouse gas emissions from disused coal mines

What contribution to greenhouse gas emissions within the EU does the Commission estimate is derived from methane from disused coal mines?

In which Member States does the Commission believe this is most likely to be a significant factor as a proportion of total emissions?

Do reliable means of measuring the amount of methane escaping from disused coal mines exist?

Which Member States currently provide financial or fiscal incentives to encourage the extraction and use of coal mine methane?

Does the Commission have any plans to extend the EU Emissions Trading Scheme to allow credits to be claimed for coal mine methane projects?

Answer given by Mrs Wallström on behalf of the Commission

(23 June 2003)

While there is comprehensive data available on methane emissions from coal mines that are in use, the agreed Intergovernmental Panel on Climate Change (IPCC) reporting guidelines under the United Nations Framework Convention on Climate Change (UNFCCC) do not include any methodology to estimate and report methane emissions from disused coalmines. This means for the time being the emissions from disused coalmines are not calculated or accounted for under internationally agreed guidelines.

The five countries reporting significant amounts methane from coalmines in use are: Germany, Greece, Spain, France and the United Kingdom.

There are means of measuring the amount of methane emitted from disued coalmines.

Some Member States are working on methodologies to optimise the monitoring of methane from disused coal mines in particular where methane is recovered.

The Commission is not aware of any Member State currently providing fiscal incentives to encourage the extraction and use of coalmine methane. The British authorities have however notified a proposal to grant the coal mine methane industry a full exemption from the British Climate Change Levy. This proposal is currently under investigation under the State aid rules.

In the Council's political compromise reached on energy taxation in March 2003, a possibility for a tax exemption/reduction has been included in favour of electricity generated from methane emitted by abandoned coalmines (see article 15(1)(b) fourth indent in Council document 8084/03 Fisc 59 of 3 April 2003). The Council is currently consulting the Parliament on this compromise.

As for other financial incentives, the Commission is only aware that electricity produced from coal mine methane, including methane from disused coal mines, benefits from a price above the market price for electricity in Germany. This is because coalmine methane is included in the definition of renewable energy sources under the German legislation on renewable energy sources (Erneuerbare-Energien-Gesetz, EEG). The Commission has decided that this measure does not constitute State aid (State aid case number NN 27/2000).

The Commission will carry out reviews in 2004 and 2006 considering whether to extend the Union emissions trading scheme to other activities and to emissions of additional greenhouse gases, in accordance with Article 30 of the Common Position. These reviews will be comprehensive and so include consideration of whether to bring methane emissions from disused coal mines within the coverage of the Union emissions trading scheme. Any such step would depend upon reliable measuring and reporting protocols being established.

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