Opinion of the Committee of the Regions on 'Climate change and energy` (97/C 379/04)

THE COMMITTEE OF THE REGIONS,

having regard to the conclusions adopted by the European Council on 3 March 1997 on the European Union's negotiating position for the Third Conference of the Parties to the United Nations Framework Convention on Climate Change to be held in Kyoto, Japan, in December 1997;

having regard to the seminars arranged by the Committee of the Regions and Commission 5 in Espoo, Finland, on 28 February 1997 and Bologna, Italy, on 18 April 1997;

having regard to its decision of 15 January 1997, under the fourth paragraph of Article 198c of the Treaty establishing the European Community, to issue an Opinion on climate change and energy and to instruct Commission 5 (Land-use, Planning, Environment and Energy) to draw up the opinion;

having regard to the Communication from the European Commission to the Council, the European Parliament, the Economic and Social Committee and the Committee of the Regions on the energy dimension and climate change (COM(97) 196 final);

having regard to the draft opinion (CdR 104/97 rev. 2) unanimously adopted by Commission 5 on 6 May 1997 (rapporteur: Mr Penttilä),

adopted the following opinion at its 19th plenary session on 17 and 18 September 1997 (meeting of 18 September).

1. Introduction

1.1. Human activities are reinforcing the natural greenhouse effect to the extent that it poses a threat to the earth's climate system. Atmospheric concentrations of carbon dioxide and other greenhouse gases are rising, mainly because of the burning of fossil fuels, destruction of forests and intensive agriculture.

1.2. As a result of emissions of carbon dioxide and other greenhouse gases, concentrations of greenhouse gases are expected to rise from 280 ppm in the pre-industrial period to 550 ppm by about the year 2050. Given an increase in concentration levels of this magnitude, average global temperatures are estimated to rise by 1,5-4,5 degrees Celsius over time.

1.3. A number of uncertainties surround the consequences of the greenhouse effect. Climate models can predict the average rise in temperature but not the regional pattern of changes. Moreover, there is no reliable information on factors contributing indirectly to the greenhouse effect (ozone levels in the troposphere, cloud cover, ocean currents). Decisions on action to combat the greenhouse effect have to be taken against a background of uncertainty.

1.4. In spite of this uncertainty, there should be an initiative to reduce greenhouse gas emissions because lower emission levels also yield indirect benefits, such as savings in nonrenewable natural resources, reductions of other emissions into the atmosphere and the application of new technologies that help to make economies more competitive. Furthermore, it is quite probable that the cost of measures required to combat climate change is only a fraction of the cost of damage caused by a possible increase in the greenhouse effect.

2. Comments

2.1. At the beginning of the 1970s, scientists warned that the greenhouse effect was speeding up as a result of human activities. The first international conference on climate change was held in Geneva in February 1979 at the instigation of the World Meteorological Organization (WMO). In 1988, the Intergovernmental Panel on Climate Change (IPCC) was established by the United Nations Environment Programme (UNEP) and the WMO. It was charged with making a scientific assessment of the environmental and socio-economic impact of climate change and setting up a working group to prepare the ground for a convention aimed at countering climate change. The working group is called the Intergovernmental Negotiating Committee for a Framework Convention on Climate Change (INC/FCCC) and comprises representatives from 150 states, the EU, international organizations and NGOs. The working group proposed that the negotiations take place under the auspices of the United Nations. The UN General Assembly adopted the proposal in 1990 and instructed the INC to draw up a draft convention on climate change for discussion at the Earth Summit in Rio de Janeiro in June 1992.

2.2. The draft convention laid down emission reduction targets, principles, general and specific obligations, financing mechanisms, reporting requirements and a review procedure. There was a wide-ranging debate at the Rio Climate Conference on whether to set specific emission reduction targets, or merely to establish basic principles and obligations. With the backing of the Alliance of Small Island States (AOSIS), the European Community put forward a proposal for stabilizing carbon dioxide emissions at their 1990 levels by the year 2000, but it was opposed by OPEC and the United States. The final text makes no mention of explicit targets or timetables for their achievement.

2.3. The following principles were agreed at the Rio Climate Conference:

- the ultimate objective is to stabilize concentrations of greenhouse gases in the atmosphere at a level that does not pose a threat to the climate system;

- this level should be achieved within a time frame sufficient to allow ecosystems to adapt naturally to climate change, to ensure that food production is not threatened and to enable sustainable economic development;

- the developed countries undertook to take measures to limit greenhouse gas emissions and protect sinks and reservoirs of greenhouse gases (e.g. forests).

2.4. The First Conference of the Parties to the United Nations Framework Convention on Climate Change was held in Berlin in March 1995 but there was still no agreement on specific emission reduction targets and timetables. It was, however, agreed that Annex I countries would draw up reduction targets and timetables before the next conference to be held in Kyoto in 1997, taking into account the proposal put forward by the members of AOSIS for an emission reduction of at least 20 % within a specified time-frame - the so-called Berlin Mandate. The European Union is currently preparing for the Kyoto conference on the basis of the Berlin Mandate. At its meeting on 3 March 1997, the Council of Ministers adopted the EU's negotiating position. It includes a proposal for a 15 % reduction target for the combined emissions of three greenhouse gases (CO2, N2O and CH4) for all industrialized countries by the year 2010, as compared with the 1990 level. At the same time targets for the reduction of emissions were agreed internally for each Member State, the achievement of which will mean a 10 % reduction in emissions from 1990 levels by the year 2010.

3. Worrying trends

3.1. Policy action to combat climate change takes concrete form at local and regional level. If the local level is not taken into account in formulating policy action, commitment to targets may be insufficient.

3.2. If the full external cost cannot be passed on to energy prices, free competition in the energy sector will clearly limit the scope of local energy companies for protecting the environment and reducing greenhouse emissions, and in particular the possibilities open to local and regional energy companies.

3.3. The increased use of private cars has made possible a cheap and rapid means of travel. This has led to the fragmentation of land use and changed the structure of services virtually throughout Europe. An example of this is the fact that while the time spent travelling to and from work has remained almost unchanged over the past ten years, the length of such journeys has grown considerably. The trend towards more fragmented land use is the single most important factor contributing to higher energy consumption and greater reliance on private cars. Its effects are long-term and it tends to reduce the efficiency of transport and energy production and distribution. If this trend continues, it will clearly hamper implementation of measures to combat climate change

3.4. The financial resources of local and regional authorities are limited. This restricts the scope for investments to promote energy saving and to reduce greenhouse gas emissions, in spite of the fact that such investments would boost regional economic activity, create new jobs and be profitable in the long term.

3.5. Energy efficiency in the EU rose by 20 % between 1975 and 1985. In the period 1985-1995, efficiency rose by less than 10 % and most of the increase occurred in the 1980s. The improvement in energy efficiency has now slowed down and special measures are needed if the marked upward trend is to be resumed. The improvement has been slow in the transport sector, in particular.

4. Climate change and the local and regional level

4.1. The Rio climate convention imposed no obligations nor did it specifically address policy at local and regional level to combat climate change. Decisions taken at local and regional level nevertheless have a major impact on greenhouse emissions and climate policy. Moreover, decisions taken at national level to stabilize and reduce greenhouse gas emissions are ultimately implemented at local and regional level. Local and regional authorities have extensive decision-making powers, particularly with regard to energy production and distribution, land use, implementation of energy efficiency and saving programmes, transport policy and procurement. However, although they do not have powers to act independently in the areas of legislation or energy and transport taxation, they need to be taken into account when overall energy policy is framed so as to ensure that the objectives are the same and the appropriate synergies are achieved.

4.2. Activities at local and regional level can be divided into various sectors. The scope for action by local and regional authorities and the methods available to them differ considerably from sector to sector. Normally, these activities can be classified under the following headings:

- industry;

- energy production and distribution;

- services;

- housing;

- transport.

The decision-making powers and range of methods available to local and regional authorities are greatest in the areas of services, housing and transport. Industry is largely outside the scope of regulation at local and regional level and is not therefore dealt with in depth here.

4.3. Energy production patterns vary considerably between regions. In some regions energy is generated locally and power plants are owned by towns and local authorities. By contrast, other regions buy nearly all the energy they use from outside the region. Energy production is of pivotal importance as regards reductions in greenhouse gas emissions. Several different methods and combinations thereof can be used in energy production to reduce greenhouse gas emissions. These methods include different options for the choice of fuels and technical solutions in energy production. In particular, the use of renewable forms of energy should be increased as, apart from having clear advantages over fossil fuels as regards the environment, they are by their nature more locally-based solutions and thus help to boost the local economy and employment. Exploitation of renewable energy sources furthers regional development and creates jobs especially in agriculture and in regions which are structurally weak. It also helps to reduce the EU's dependence on imported energy.

4.4. The service sector is divided into the public and private service sectors. The sector is quite heterogeneous since it embraces activities ranging from administration to health care, provision of sports facilities, trade and education. Energy consumption in the services sector, and the greenhouse gas emissions that entails is mainly determined by the heating, cooling, ventilation and lighting requirements of buildings. Office and public buildings differ from residential buildings in that their internal heat load is greater; this heat load consists primarily of heat generated by office equipment such as computers, copiers etc. According to Dutch and Danish estimates, the potential for energy saving in the service sector varies between 20 and 50 %. The biggest potential for saving is in the use of heating and lighting. The public sector is in a position to control energy consumption in public buildings directly and can set an example for the private sector. A case in point is the ETANA computer program developed by the Technical Research Centre of Finland and funded by the Energy Savings Board of the City of Helsinki. The program enables the target level of energy consumption for a building to be determined quickly and simply. If a building's actual energy consumption exceeds the target level, then energy-saving investments are necessary. By systematically analysing buildings in this way, energy-saving investments can be targeted correctly. The program is also available to the private sector and has attracted considerable interest. Another example worth mentioning is an international project with participants from, inter alia, Finland, Sweden, the United Kingdom, the Netherlands and Denmark. The participants have formed a purchasing group in order to organize an invitation to tender for the commercial development of an incandescent light bulb which will be 30 % more efficient and last four times longer than the bulbs currently in use and retail at a unit price of about ECU 2-3. This procedure is well suited to many types of projects for the commercial development of new technologies.

4.5. In the housing sector, the areas offering the most scope for reducing emissions are broadly the same as those in the service sectors. However, there are a number of factors at work in the housing sector which inhibit efforts to reduce emissions. One of these is lack of information; the dissemination of information to large numbers of consumers is a challenge to which the authorities have not always been able to respond. Another problem is the short planning horizon of households as regards investment decisions. Estimates of the potential for saving energy vary widely, but the average estimate is 50 %. Depending on climatic conditions, up to two-thirds of energy in the area of housing is used for heating and hot water, so much of this energy-saving potential can be realized through insulation, modern heating technologies, solar water heating, etc. In addition to creating incentives, one way of achieving this is to tighten up building standards. Whereas the payback period for industrial firms can be as long as several years, households expect a payback period of less than a year. Estimates of the technical potential for energy saving in the housing sector vary very widely according to different sources, but it is estimated that, on average, a 50 % saving could be made by the year 2005.

4.6. The transport sector is the most problematic as regards reducing greenhouse gas emissions. There are millions of separate sources of emissions, and local and regional authorities do not have effective means at their disposal to influence emission levels. Land-use planning is the most effective method and has the longest-lasting effects. Land-use decisions have a major influence on the amount of driving done, as well as on other types of energy consumption. Transport planning also has an important role to play in reducing emissions. Despite the measures taken, traffic emissions in Europe are estimated to increase by between 10 and 30 % by the year 2005 compared with their 1990 levels.

4.7. Many concrete measures can be taken at local and regional level to combat climate change. The network of local and regional energy agencies supported by the Commission offers an excellent means for implementing such action. Measures should be based on a consistent and clearly defined procedure that can be used to assess the current situation, the potential for saving, the prioritization and implementation of measures, and the monitoring of emissions.

4.8. Work at local level to combat climate change has already been done in several towns and regions, including Hanover, Copenhagen, Bologna and the Helsinki area. The EU should provide more support for the development of such procedures and in this way encourage local authorities to implement concrete projects designed to combat climatic change. The basic components of a procedure that has been successfully applied at local level are set out below:

a) Carrying out a survey of local energy consumption and greenhouse gas emissions

It is important to ascertain current levels of energy consumption and greenhouse gas emissions so as to be able to assess the effectiveness of measures and the trend in emissions over time. Each region is unique in terms of its energy use, which is determined by climate, available fuels, energy production patterns, energy prices, land use, transport policy and the structure of economic activity.

b) Drawing up a 'business as usual` scenario

A 'business-as-usual` scenario is used to project the future increase in emissions of greenhouse gases on the assumption that no steps are taken to limit emissions. This gives an indication of how different activities affect trends in emission levels. In particular, the long-term objectives of transport and land-use policies only become clear if emission trends are studied over a long period. This work also serves as a springboard for fruitful interaction between various regional authorities and civic organizations.

c) Identifying ways of reducing emissions

A list can be drawn up identifying the various methods that can be used to reduce emissions with an assessment of their effectiveness, scope for application and cost. A wide range of methods are available at regional level for effectively reducing emissions. These include:

- increasing energy efficiency in energy production and use;

- more concentrated land-use patterns;

- choice of fuels;

- use of renewable forms of energy;

- giving greater priority to public transport in transport policy.

d) Setting a local target for emission reductions

A local target for emission reductions serves as both a guideline and an incentive. The target should be set in such a way that it is generally achievable. Those responsible for finding technical solutions in particular like to have concrete targets so that they can search independently for solutions which will enable the targets to be achieved. Setting the target for emission reductions is the most difficult part of the entire emission reduction strategy because it involves a host of uncertainties. The target should also include a number of alternatives which can be applied if necessary. In selecting the methods to be used to achieve the objective, the following considerations should be taken into account:

- effectiveness;

- opportunities at local level;

- synergy gains,

- support of local inhabitants;

- short-run v. long-run advantages;

- scope for monitoring.

e) Devising a 'strategy portfolio`

Objectives should be collated into clear and concise programmes for political approval and the support of the regional powers. The most appropriate methods are selected for each programme. Among the methods available at regional level are the following:

- various administrative regulations (including land-use planning);

- economic incentives (public transport fares, parking);

- consumer information (energy companies, consumer advice);

- cooperation with energy producers;

- investments (rationalization of energy production and use, procurements).

A system should be set up to monitor the implementation of the programmes and progress reports should be made directly to the political authority.

f) Integrating emission reduction policy into planning and operational policy at local and regional level

Attention should be paid to this in regional and local housing, transport, land-use, energy and procurement policies, in particular.

5. Ways of reducing emissions in different sectors

5.1. Energy production

The most important measures available in the energy production sector relate to the choice of fuels and technical solutions for improving energy efficiency. There has been a shift in the energy mix away from coal towards natural gas and biofuels and the increased cogeneration of heat and electricity. Significant results have already been achieved and future technological advances will also enable increased use to be made of wind and solar energy. This development can be supported by introducing an energy tax that exempts renewable energy resources. The revenue collected from this tax should be used to cover the costs of the introduction of new technology during the transition stage.

5.2. Service sector

Given the very diverse nature of the service sector, a wide range of measures must be deployed to reduce the sector's greenhouse gas emissions. Energy audits should be carried out in the various subsectors, cost-benefit analyses should be made to determine the prioritization of investments and energy-saving investments should be supported.

5.3. Housing

Although there is a vast number of individual energy consumption units in the housing sector, the structure of consumption is fairly uniform. Therefore efforts to reduce energy consumption and greenhouse gas emissions can focus on the key components of energy consumption, namely space heating/cooling, hot water, household refrigeration equipment and lighting. Consumption habits can be influenced by disseminating information and providing assistance for energy-saving investments, especially those reducing the energy required for space heating.

5.4. Transport

There is a close link between transport and land use and thus the most effective way to tackle greenhouse gas emissions from traffic is to influence land use. This calls for strict land-use planning policy, particularly with regard to the location of services. In transport planning, priority should be given to public transport, pedestrians and cyclists. There should be major investments in the development of public transport systems so as to reduce the energy requirements of the transport sector. Although few means are available at local and regional level to promote the development of car technology based on lower fuel consumption, the local and regional level should send a clear signal to the car industry to devote adequate resources to product development and research in this area. Although road transport is the main source of greenhouse gas emissions in the transport sector, air, sea and rail transport should not be overlooked in assessing the reduction of emissions.

6. Conclusions

The COR considers it important that

6.1. The European Union continues to play a leading and active role in developing the Convention on Climate Change. The COR also believes that the European Union should, in accordance with the requirements of the Berlin Mandate serving as the basis for the protocol negotiations, set the goal of a significant reduction of emissions by all industrialized countries, i.e. the countries referred to in Annex I of the Convention, by, for example, 2005, 2010 and 2020.

The COR is prepared to support the Community's active role in the 1997 UN climate conference in Kyoto, Japan, by making the expertise and knowledge of local and regional authorities in the EU available to the conference and international meetings and conferences of local and regional authorities to be held in conjunction with it.

6.2. The European Union should intensify its efforts in the areas of economic incentives, such as increasing and harmonizing energy taxation; establishing funds; making more effective use of renewable forms of energy; applying energy-efficient technologies and introducing energy consumption standards in the regions.

6.3. New electricity-generating stations should be combined heat and power plants or be based on the use of renewable energy forms. It should be compulsory to be connected to a district heating network in areas where this is technically possible.

6.4. Economic or other appropriate instruments should be deployed to encourage power plants to lower CO2 emissions.

6.5. The European Union should introduce a uniform energy tax or establish a special CO2 fund. During a transitional period the tax revenues should be used to promote energy savings and the use of renewable energy. In order to prevent regional disparities caused by, e.g., dependence on a particular form of energy production or fuel from becoming excessive, tax revenues of funds should be deployed in such a way that essential reforms and investment can be implemented in the regions concerned without placing an unduly heavy burden on their economic and social fabric.

6.6. The EU should expand programmes (SAVE, Joule, Therme, Altener) aimed at saving energy and reducing greenhouse gas emissions. Support provided to local energy agencies should be guaranteed in the longer term as well and expanded as the need arises. Securing the resources for such actin is also in the interest of the energy production sector.

6.7. The EU should ensure that the liberalization of the internal market in electricity does not hamper the introduction in energy production of the most environmentally-friendly technologies and fuels (e.g. combined heat and power, biofuels, water power, alternative forms of energy production).

6.8. The EU should see to it that the conditions prevailing in prospective new Member States are taken into account when establishing emission reduction obligations, although it should insist that they meet these obligations quickly.

Many of these countries are at the crossroads as far as greenhouse gas emissions are concerned - rapid changes, both positive and negative, are possible. Local and regional authorities in these countries need special support so that the reduction of greenhouse gas emissions can be intensified. The EU should support joint projects at local and regional level in present and prospective Member States which are aimed at improving energy efficiency and reducing greenhouse gas emissions.

6.9. Land-use planning and transport policy at local and regional level are consistent with saving energy and reducing greenhouse gas emissions.

6.10. Better use should be made of the experience and expertise gained at regional level when formulating policies for limiting greenhouse gas emissions. The regional level must be represented in all working groups and other bodies which make important decisions with regional implications.

6.11. The EU should give more financial support to action being undertaken at regional level to reduce greenhouse gas emissions in the areas of investment, development, research and pilot projects.

6.12. The EU should focus attention on energy saving as a means of achieving reduction targets for greenhouse gas emissions. Local authorities are prepared to make their own contribution to the achievement of these targets by, for example, implementing energy saving projects in areas of activity falling within their competence and disseminating information on energy saving to local residents.

6.13. The seriousness and extent of climate change requires that the emission reduction targets be taken into account in all areas of EU activity, such as agriculture, and in the reorientation of structural funds recourses.

Brussels, 18 September 1997.

The Chairman of the Committee of the Regions

Pasqual MARAGALL i MIRA