WRITTEN QUESTION E-1717/01

by Erik Meijer (GUE/NGL) to the Commission

(14 June 2001)

Subject: Protection of European products against American commercial advantages arising from the rejection of the Kyoto climate convention

1. Does the Commission share my belief that the USA, which are responsible for 25 % the world's climatic problems, will for the duration of the current Presidential term of office ending in 2005 continue to refuse to adhere to the commitments made at Kyoto in 1997 regarding CO2 emissions and the warming of the planet resulting therefrom in order to protect the climate?

2. Does the Commission consider that a viable protocol can be drawn up in the short term without the participation of the USA leaving the possibility open for the USA to adopt it under a future government?

3. Can the Commission confirm that American undertakings will enjoy an advantage on the world markets, both because they shall not have to take the same measures as their European competitors and because their profit margin will not be reduced through environmental taxes, so that they shall be able to supply similar goods at a lower price than European countries adhering to the climate convention?

4. In this regard, can the Commission provide a forecast of the commercial advantages which the USA is likely to enjoy in the short term by leaving later generations to shoulder the burden? Does the signing of the Kyoto convention entail any advantages for the European economy vis-à-vis that of the USA?

5. What does the Commission intend to do to counteract the American commercial advantage over Europe resulting from a deficient government policy which in practice constitutes concealed state aid?

6. Does the Commission have a preference for import levies or for export subsidies in this regard? Does the position of the WTO play any role in this respect? What does the Commission base any such preference on and how shall decisions in this regard be taken in future?

Answer given by Mrs Wallström on behalf of the Commission

(3 September 2001)

The Commission hopes that the United States will at some stage come back into the Kyoto process and Protocol. The Community will take the lead by implementing the 8 % reduction commitment and working towards ratification. At the same time it will continue diplomatic efforts and work with other partners to achieve entry into force of the Kyoto Protocol by 2002.

The outcome of the second part of the Sixth Conference of the Parties to the UN Framework Convention on Climate Change in Bonn in July, represents a major step forward towards the entry-into-force of the Kyoto Protocol by all Parties who support the Protocol. It contains no particular impediments to a future ratification of the Protocol by the US. Although demonstrable progress has to be achieved by 2005, the Kyoto commitments will constrain countries' emissions only as of 2008.

The competitiveness of countries and companies is a complex issue and determined by many factors besides environmental standards and policies. The Community and the United States both have a long history of ambitious environmental regulation and nevertheless their economies are competitive and their companies successful in world markets. Taking into account that President Bush has indicated that he will take a leadership role on climate change, it will depend also on what domestic intiatives the US government will undertake in order to mitigate climate change and reduce greenhouse gas emissions. Furthermore, the Commission will present by end-2001 a proposal for Community-wide carbondioxide (CO2) emission trading as an element of our policy mix to implement Kyoto. Emission trading, with its inherent incentives to cost-minimisation, will ensure that the impact on European business to achieve a given target will be reduced. A recent study by the Commission concludes that the Kyoto target could be implemented at a total cost to the European economy of about 3,7 billion per annum, corresponding to 0,06 % of expected gross domestic product (GDP) in 2010.

The implementation of the Kyoto commitments will also provide benefits for Europe's economies. In order to implement Kyoto Europe's economies will e.g. become more energy efficient and renewable sources of energy will gain a higher market share. The development of new energy efficient products will provide export opportunities for European business, in particular when other countries increase their efforts to reduce greenhouse gas emissions.

In view of the prevailing political uncertainties at this stage therefore, a commercial advantage to US business cannot be confirmed. Hence no particular measures are planned.

The question on import levies or export subsidies is not relevant at this moment.