Communication from the Commission to the Council and the European Parliament on EU policies and measures to reduce greenhouse gas emissions: towards a European Climate Change Programme (ECCP)
Date: 2000-03-08
Institutions: European Commission
Subjects: EU environmental policy, EU programme, climate change, greenhouse gas, protocol to an agreement

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 8.3.2000
COM(2000) 88 final

COMMUNICATION FROM THE COMMISSION TO THE COUNCIL AND THE
EUROPEAN PARLIAMENT

on EU policies and measures to reduce greenhouse gas emissions: Towards a European
Climate Change Programme (ECCP)

COMMUNICATION FROM THE COMMISSION TO THE COUNCIL AND
THE EUROPEAN PARLIAMENT

on EU policies and measures to reduce greenhouse gas emissions: Towards a
European Climate Change Programme (ECCP)

Political context:

The year 2000 will be crucial for climate change. The 6th Conference of the Parties
(COP6) to the United Nations Framework Convention on Climate Change in
November should deliver decisions on the issues left unfinished in Kyoto,
in
particular on the flexible mechanisms and compliance. From March this year, all
political energy in the climate field around the world will be geared towards that
major rendez-vous.

In Bonn in 1999, the EU urged all Parties to ratify the Kyoto Protocol as soon as
possible after COP6 in order to ensure its entering into force by the Rio+10
Conference in 2002. The EU is committed to put this political commitment into policy
action. A positive element in this context is the decision of the European Council in
Helsinki to ask the Commission to prepare a proposal for a long-term strategy
socially and ecologically sustainable
dovetailing policies
development to be presented to the European Council in June 2001.

economically,

for

The EU intends to start the political process on ratification of the Kyoto Protocol
immediately after COP6. This discussion will have several dimensions, but at least 2
are of major importance:

1. The burden sharing agreement that was agreed by the Council in 1998 will have to
be incorporated into a legal instrument. The –8% target for the EU as a whole has
been shared out amongst Member States so as to allow for different economic
development patterns. The legal translation of the burden sharing agreement will
allow the ratification of Kyoto jointly by the Member States as well as by the EC.

2. An implementation strategy will be needed to accompany the ratification
instrument. This is a question of political credibility. It will be necessary to spell out
which policies and measures will have to be undertaken, and how the so-called
flexible mechanisms will be implemented within the EU and with other Parties from
industrialised as well as developing countries .

Several difficult issues will have to be resolved, not least those which affect the
respective responsibility of each Member State and of the European Community.
There are questions related to protecting the internal market, to different sector
policies and others related to the fact that the EU would be legally bound to comply
with the –8% objective for the Community as a whole.

2

Current emission trends are worrying

Over the last years, greenhouse gas emissions at European level have been increasing
instead of decreasing. Without a reinforcement of current policy measures,
the
‘business-as-usual-scenario’ is likely to end up more in the range of an increase
between 6 and 8%, instead of a reduction of 8% compared to 1990 levels1.

Energy and transport are the main contributors to CO2 emissions while industry is the
source of fluorinated gases. The transport sector is expected to increase its CO2
emissions by 39% in 2010 (from 1990 levels). With a strong growth in electricity and
heat demand CO2 emissions from power generation are projected to increase after
2010, while in the case of industry emissions are expected to decrease by 12% over
the same period. Equally, the private and tertiary sector remain a source of concern.
Emissions of fluorinated gases are expected to increase by about 40% between 1990
and 2010 without further measures. However, total emissions of these gases will
remain small, estimated at about 2.6% of total emissions in 2010.

Emission trends in Member States vary widely from average figures. Some Member
States made a good start. German unification and the switch from coal to gas in the
UK led to emissions reduction in the first half of the 1990s. Such unique events are,
however, unlikely to occur again before 2012. Annex 1 provides a picture of progress
made by Member States so far compared to their reduction target resulting from the
‘burden sharing’ agreement.

Most Member States find it increasingly difficult to control their greenhouse gas
emissions for different reasons. In Austria, Denmark, Finland and the Netherlands for
example, much has already been done in the past – the “low hanging fruit” have gone
– and they face from now on higher implementation costs. On the basis of improved
data, some other Member States observe that their emission trends are rapidly going
in the wrong direction: Belgium and Italy in particular. Finally, Spain, Portugal,
Greece and Ireland realise that the increase of their emissions allowed under the
burden sharing agreement does not exempt them from the need for effective action.

Member States therefore have to commit themselves to a further strengthening of their
domestic policies if they are to achieve their respective emission reduction targets
the burden sharing agreement. Common and co-ordinated measures at
under
Community level will be a useful supplement
to these national strategies in
accordance with the principle of subsidiarity.

The need for a reinforcement of policies and measures

The European Community’s leadership in implementing the Kyoto Protocol will be
measured on progress made over the next few years. There are a number of positive
signs, both at Member State and European level, that implementation of the Kyoto
Protocol is high on the political agenda.

1 COM(99)230

3

Some Member States have already strengthened their climate change strategies to start
implementation of their Kyoto commitments under the ‘burden sharing’ agreement.
Many others are in the process of developing such new strategies. The measures
proposed cover all sectors and are likely to result in significant emission reduction.

Also, the Commission has successfully brought forward important measures. Some of
these measures, such as the agreement with car manufacturers on the energy
efficiency of passenger cars, have been successfully concluded. Several new
Commission initiatives are imminent, such as the proposal for a Directive on the
Promotion of Renewable Energy Sources in the context of the Internal Electricity
Market, the proposal for a Directive on Complementary Fuel Specifications for the
year 2005, a Communication on actions relating to the integration of sustainable
development in enterprise policy, the revision of the Common Transport Policy, a
Green Paper on Urban Transport, a Strategy for Energy Supply Security including the
evaluation of the environmental impact of all energy sources, an Action Plan for
Improved Energy Efficiency in the Community and an Action Plan for Renewable
Energy Sources.

The guidelines on state aid for environmental protection, soon to be updated, will
encourage the use of new market-based incentives by Member States. At the same
time, the aim to prevent climate change will be reflected in the decisions to be taken
by the Commission in the future within the framework of the current rules when
assessing Member States’ state aid schemes.

However, progress would have been far more pronounced if some key proposals, such
as the energy tax proposal, would have been more actively pursued by the Council, or
were not adopted in a significantly weakened form, such as the SAVE and ALTENER
programmes. The Commission insists on the utmost importance of energy taxation
within an overall strategy on climate change and urges the Council to adopt its
proposal rapidly.

In view of respecting the commitments undertaken by the EU in Kyoto, action - both
at Member State and Community level - will have to be reinforced. In order to do so
the Commission will follow a twin-track approach : the reinforcement of Community-
wide policies and measures, and the development of emissions trading system within
the EU to enhance the cost effectiveness of the EU’s implementation strategy
including the preparation for the use of the Kyoto Protocol’s flexible mechanisms.
Demonstrating that the EU is committed to implement both elements of the Kyoto
agreement will increase its credibility at international level.

A strengthening of common and co-ordinated policies and measures for all major
greenhouse gas emitting sectors will be facilitated through the integration of
environmental aspects into sector policies such as those for energy,
transport,
agriculture, industry, internal market and development, where strategies have been or
are being developed. In addition, the Environment Council in its conclusions of
October 19992 urged the Commission to put forward a list of priority action on

2 Council Conclusions on a Community strategy on Climate Change, Doc. 11654/99, Luxembourg 12
October 1999

4

climate change as early as possible in 2000 and to prepare appropriate proposals in
due course. In this context, the Council stressed the need to take forward those
policies and measures already identified by Council in its conclusions of June 1998 3.

In response to these requests the Commission is now putting forward a list of
proposed common and co-ordinated policies and measures (Annex 3). The list is not
exhaustive but rather focuses on priority actions in the energy, transport and industry
sector. It could be adjusted following discussions in Council and Parliament and
decisions taken concerning different sector policies such as those for energy,
transport, industry and agriculture.

Key elements for the development of a successful package of common and co-
ordinated policies and measures concern the reduction potential and the related
abatement cost in the different policy areas. The Commission’s Communication of
May 19994 indicates the reduction potential and related abatement cost of a number of
measures in the energy, transport and industry sector which can also be found in the
list of proposed common and co-ordinated policies and measures in Annex 3. For
example, in the area of energy efficiency in households and the tertiary sector a
reduction potential of 140 MT CO2 equivalent can be achieved at a cost of up to 50
€
/ton (in 1997 prices).5

Supplementary to the above policies and measures are the so-called “flexible
mechanisms” of the Kyoto Protocol. While those mechanisms are promising in terms
of cost-effectiveness, the EU has limited experience with them. Together with this
Communication and as part of the same package, the Commission has therefore
adopted a Green Paper on greenhouse gas emissions trading within the European
Union. Its purpose is to familiarise all decision-makers with this new instrument and
to launch consultation with all relevant stakeholders. As part of this exercise it will be
necessary to ensure that the different elements of the proposed Community approach
form a coherent whole. It is of particular importance that the Community has a clear
view on its functioning in the context of the Single Market and on how the use of
emissions trading interacts with the compliance of the EU with its overall target.

The Community will continue to demonstrate that it takes the concerns of developing
countries in relation to climate change seriously. Specific Community actions will be
defined to assist developing countries in mitigating climate change and in adapting to
its adverse effects. After COP6 new initiatives need to be taken to help the poorer and
the most vulnerable developing countries to take full advantage of the opportunities
provided by the Kyoto Protocol notably the Clean Development Mechanism.

The European Climate Change Programme (ECCP)

The European Climate Change Programme (ECCP) is a programme of the European
Commission which will bring together all relevant stakeholders to co-operate in the

3 Council Conclusions on a Community Strategy on Climate change, doc 9702/98, Brussels 19 June
1998
4 COM(99)230
5 COM(99)230

5

preparatory work of common and co-ordinated policies and measures to reduce
greenhouse gas emissions. While it
is the Commission’s perogative to make
appropriate policy proposals, positive experience has been gained by applying a
multi-stakeholder approach to the preparatory phase of such proposals.

The European Climate Change Programme will primarily deal with the policies and
measures listed in Annex 3.

Its proposed structure is outlined in more detail in Annex 2 and will be further
elaborated by the Commission. It is recognised that the scope of the Programme will
be limited in the beginning in order to address the most promising emission reduction
measures, in view of achieving the Kyoto target of –8%. However, in a mid- and
long-term perspective, the ECCP should become more comprehensive addressing
issues such as adaptation, international co-operation through capacity-building and
technology transfer,
research/observation, demonstration of efficient and clean
technologies and training and education. Preparatory work on these issues could then
be the basis for concrete policy proposals by the Commission.

The ECCP will not operate in isolation. Links to existing initiatives in the areas
including air quality, energy and transport that have an impact on climate change will
be made and developed in a way that these programmes are compatible and mutually
reinforcing. Input from the implementation of sector strategies will also be provided.

Monitoring progress towards the EU Kyoto target

The Commission wishes to underline the responsibility of Member States in
establishing their own policies and measures for reducing greenhouse gas emissions.
Their effectiveness will have to be monitored on a continuous basis. Council Decision
99/296 EC for a Monitoring Mechanism of Community CO2 and other greenhouse gas
emissions provides the necessary tool for the assessment of policies and measures but
needs to be extended and reinforced to cover the use of the “flexible mechanisms”.
Only then will the monitoring mechanism be an effective instrument in assessing
overall compliance with the Kyoto target.

6

Figures highlighting actual performance
compared to where they should be according to Burden Sharing agreement
(and assuming a linear evolution from 1990 towards 2010 target)
in percentage of 1990 emissions (3 gases - LUCF excluded)

ANNEX 1

0,5%

UE15

13,4%

Spain (1998 data)

5,0%

4,8%

0,1%

1,0%

1,5%

Greece (1998 data)

Portugal (1998 data)

13,9%

Ireland (1998 data)

Sweden (1998 data)

Finland (1998 data)

France (1998 data)

Luxembourg (1998 data)

Austria (1998 data)

(Belgium - 1997 data)

Netherlands (1998 data)

9,3%

12,8%

10,9%

16,8%

Denmark (1998 data)

3,2%

(Italy --- 1995 data)

-4,5%

-7,5%

United Kingdom (1998 data)

Germany (1998 data)

-47,0%

-50%

-40%

-30%

-20%

-10%

0%

10%

20%

30%

The graph indicates whether a Member State is on track assuming its emissions are limited in a linear way (between 1990 and 2010). A negative value shows an over-achievement and a positive
value an under-achievement. In the case of Luxembourg overall greenhouse gas emissions are very small (0.3% of EU). The substantial emission reductions achieved come from a restructuring
of the iron and steel industry. The data used are the ones submitted annually by Member States to the Commission in accordance with the Monitoring Mechanism (Council Decision 93/389/EEC
as amended by Decision 99/296/EC). These data will be included in the Annual European Community Greenhouse Gas Inventory 1990-1998 as prepared by the European Environment Agency.

7

Annex 2

MAIN ELEMENTS OF

THE EUROPEAN CLIMATE CHANGE PROGRAMME (ECCP)

TO BE INITIATED BY THE EUROPEAN COMMISSION

Objectives

The ECCP’s overall objective is to identify and develop all those elements of a
European Climate Change strategy that are necessary for the implementation of the
Kyoto Protocol. These will comprise mitigation of emissions through policies and
measures and the flexible mechanisms, capacity building/technology transfer,
research/observation and training and education. Through a co-operative effort of all
relevant stakeholders such as representatives of the Commission, the Member States,
industry and the NGO community the programme will undertake preparatory work for
the Commission to propose in due course concrete policy proposals to Council and the
European Parliament.

Steering Committee

The Steering Committee will be composed of all Commission services that take part
in the ECCP. It should be responsible for the overall management and co-ordination
of the ECCP both in terms of policy approach and organisation. The Steering
Committee will create working groups on specific problem areas and will decide on
their terms of reference and timetable on the basis of a proposal by the relevant
Directorates General. The Steering Committee should meet once a month. It will also
inform and exchange information with other stakeholders on a regular basis

Working groups (WGs)

The WGs will work according to an agreed work programme, based on the Terms of
reference and the timetable developed by the ‘Steering Committee’. Main elements of
include assessments of the environmental and cost
the work programmes will
implications of policies and measures as well as their compatibility with the sector
integration policies. On the basis of these assessments policy recommendations can be
made to the Commission (see further under ‘End Product’).

Each working group will have its specific ‘set of stakeholders’ representing a
European rather than a national or regional clientele. The WGs will have a limited
size and will consist of approx. 15 persons .

8

As a start the ECCP will concentrate on energy, transport, industry and the flexible
mechanisms. Working groups will be formed around a number of themes. These
themes correspond in principle to the ‘list of proposed common and co-ordinated
policies and measures’ which the Commission is going to submit to the Environment
Council end of March.

At a later stage the number of working groups will be extended to areas such as
agriculture, sinks, waste, capacity-building/technology transfer, research.

The WGs will work on the basis of existing material rather than undertake their own
modelling work. Environmental and cost-effectiveness assessments of policy
measures in various sectors are already available or in the process. The WGs will be
supported by the relevant Commission services. The possibility of assistance by
outside consultants will be examined.

End Product and Timeframe

Every working group will regularly report to the Steering Committee through its
chairperson. A written interim report will be requested after six months and a final
report after 12 months. The final report will propose policy-orientated conclusions
outlining the nature, scope and content of the policies and measures to be considered
at Community level. On this basis the Commission will be in a position to prepare
concrete policy proposals containing instruments such as technical
regulation,
taxation, voluntary agreements, or flexible mechanisms.

9

Structure of European Climate Change Programme

STEERING COMMITTEE

Members : all DG’s involved

Technical and econ. Assistance,
including from DG’s
ECFIN, Research, JRC

WG 1

WG 2

WG 3

WG 4

Flexible Mechanisms

Energy Supply

Energy
Consumption

Transport

WG 5

Industry

10

Further WGs
on
Capacity building /
Technology transfer
Agriculture
Sinks
Waste
Research

List of proposed Common and Co-ordinated Policies and
Measures on Climate Change

Annex 3

ENERGY SUPPLY

- Further development of the internal electricity and gas market incorporating

environmental considerations

- Access to the grid for decentralised electricity production, increasing the share of

renewable energies

-

Increase the use of combined heat and power generation

- Reduction of methane emissions in mining and extraction industries

- CO2 capture and disposal in underground reservoirs

- Promotion of more efficient and cleaner fossil fuel conversion technologies

-

Energy efficiency in the electricity and gas supply industries

INDUSTRIAL SECTOR

-

-

-

-

Improvement of energy efficiency standards for electrical equipment

Improvement of efficiency standards for industrial processes

Improved energy efficiency limiting CO2 emissions (for boilers, construction
products, etc.)

Increased energy services for SMEs

- Development of an EC policy framework for fluorinated gases (HFCs, PFCs, SF6)

- Development of an EC wide policy framework for emissions trading

- Development of a framework for voluntary agreements

11

ENERGY CONSUMPTION IN THE DOMESTIC AND TERTIARY SECTOR

- Public procurement of energy-efficient end-use technologies

- Energy audits and heating performance certificates

-

Improvement of building/lighting performances

- Building design and infrastructure planning

ENERGY CONSUMPTION IN THE TRANSPORT SECTOR
Transport pricing and economic instruments for aviation
-

- Fiscal framework as part of the strategy on ‘CO2 and Cars’

- Extension of the environmentally enhanced vehicle concept to passenger cars and
light duty vehicles (improved emission and fuel standards, new technologies and
fuels)

- European campaign for more fuel-efficient driver-behaviour

TRANSPORT POLICY AND INFRASTRUCTURE

- Revision of Transport policy (rail, road freight, modal-shift, maritime, aviation)
- Green Paper on Urban Transport addressing the growing concern about
congestion (incl. pricing, fiscal measures, parking initiatives, improving public
transport)

- Sustainable mobility and intermodality

- Satellite assisted navigation systems (GALILEO)

WASTE

- Promotion of the biological treatment of biodegradable waste

- Revision of the Sewage Sludge Directive 86/278/EEC

- Packaging and packaging waste

12

RESEARCH

-

the 5th Framework Programme,
Implementation of
Environment and Sustainable Development Programme

in particular the Energy,

- Networking of EU, national and other RTD efforts for climate change

INTERNATIONAL CO-OPERATION

- Capacity building and technology transfer to developing countries through
international cooperation

13