Opinion of the Committee of the Regions on the Proposal for a Directive of the European Parliament and of the Council establishing a scheme for greenhouse gas emission allowance trading within the Community and amending Council Directive 96/61/EC
Date: 2002-03-14
Institutions: European Committee of the Regions
Subjects: EC recommendation, air quality, climate change, environmental policy, greenhouse gas, pollution control measures, renewable energy

12.8.2002

EN

Official Journal of the European Communities

C 192/59

4.9.
educational curricula in the Member States should
devote attention to the principles of the social economy
and partnerships. Such education, and the establishment of

curricula and training programmes for that purpose, could be
financed under the heading of lifelong learning.

Brussels, 14 March 2002.

The President

of the Committee of the Regions

Albert BORE

Opinion of the Committee of the Regions on:

— the ‘Proposal for a Council Decision concerning the approval, on behalf of the European
Community, of the Kyoto Protocol to the United Nations Framework Convention on
Climate Change and the joint fulfilment of commitments thereunder’,

— the ‘Communication from the Commission on the implementation of the first phase of the

European Climate Change Programme’, and

— the ‘Proposal for a Directive of the European Parliament and of the Council establishing a
scheme for greenhouse gas emission allowance trading within the Community and amending
Council Directive 96/61/EC’

(2002/C 192/14)

THE COMMITTEE OF THE REGIONS,

having regard to the Proposal for a Council Decision concerning the approval, on behalf of the European
Community, of the Kyoto Protocol to the United Nations Framework Convention on Climate Change
and the joint fulfilment of commitments thereunder (COM(2001) 579 final), the Communication from
the Commission on the implementation of the first phase of the European Climate Change Programme
(COM(2001) 580 final) and the Proposal for a Directive of the European Parliament and of the Council
establishing a scheme for greenhouse gas emission allowance trading within the Community and
amending Council Directive 96/61/EC (COM(2001) 581 final);

having regard to the decision of the Council of 11 December 2001, under the first paragraph of
Article 175 of the Treaty establishing the European Community, to consult the Committee of the Regions
on the matter;

having regard to the decision of the Bureau of 12 June 2001 to instruct Commission 4, now the
Commission for Sustainable Development, to draw up the relevant opinion;

having regard to the decision of its President of 11 March to appoint Ms Rahkonen (FIN/PES) rapporteur-
general for this opinion under Rule 40(2) of the Rules of Procedure;

C 192/60

EN

Official Journal of the European Communities

12.8.2002

having regard to its opinion of 18 September 1997 on Climate change and energy (CdR 104/97 fin) (1);

having regard to the Protocol on reducing greenhouse gas emissions adopted at the third session of the
Conference of the Parties to the United Nations Framework Convention on Climate Change (COP3) in
Kyoto on 1-10 December 1997;

having regard to its opinion of 16 July 1998 on the Commission White Paper: ‘Energy for the future:
renewable sources of energy’ (COM(97) 599 final — CdR 57/98 fin) (2);

having regard to its opinion of 11 March 1999 on Transport and CO2 — Developing a Community
approach (CdR 230/98 fin) (3);

having regard to its opinion of 19 November 1999 on Preparing for Implementation of the Kyoto
Protocol (CdR 295/1999 fin) (4);

having regard to its opinion of 21 September 2000 on the Green Paper on greenhouse gas emissions
trading within the European Union and 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) (CdR 189/2000 fin) (5);

having regard to its opinion of 14 November 2001 on the Communication from the Commission to the
European Parliament and the Council Ten years after Rio: Preparing for the World Summit on Sustainable
Development in 2002 (CdR 37/2001 fin) (6),

adopted the following opinion at its 43rd plenary session of 13 and 14 March (meeting of 14 March).

Views and recommendations of the Committee of the
Regions

1. Concerning the Proposal for a Council Decision
concerning the approval, on behalf of the European
Community, of the Kyoto Protocol to the United
Nations Framework Convention on Climate Change
and
commitments
fulfilment
thereunder (7)

joint

the

of

The Committee of

the Regions strongly endorses
1.1.
ratification of the Kyoto Protocol in the Member States and
the Council as well as making burden sharing within the
Community a legally binding requirement in accordance with
the timetable and text proposed by the Council.

1.2.
The Committee hopes that the ratification process will
be completed and the text ready for publication in time for the
Johannesburg ‘Rio+10’ summit in 2002. In this context the
CoR would also reiterate the conclusions of the opinion
on the ‘Rio+10’ preparations (8)
it submitted to the
Commission on 14 November 2001.

that

(1) OJ C 379, 15.12.1997, p. 11.
(2) OJ C 315, 13.10.1998, p .5.
(3) OJ C 198, 14.7.1999, p. 3.
(4) OJ C 57, 29.2.2000, p. 81.
(5) OJ C 22, 24.1.2001, p. 30.
(6) OJ C 107, 3.5.2002, p. 9.
(7) COM(2001) 579 final.
(8) CdR 37/2001 fin — OJ C 107, 3.5.2002, p. 9.

1.3.
The CoR notes that, although the United States has not
is committed to the Rio
it
ratified the Kyoto Protocol,
Framework Convention. The Kyoto Protocol does not require
developing countries to reduce greenhouse gas emissions.
However, emissions are rising considerably in these countries.
The EU must, in an impartial way, call upon and encourage
the United States and all other countries that are not party to
the Kyoto Protocol to take active steps to reduce emissions as
part of efforts to combat climate change.

1.4.
The Committee takes the view that the Kyoto Protocol
provides a basis for the setting of real and even more
challenging emission reduction targets. Work on establishing
these targets must begin in good time before the start of the
Kyoto Protocol commitment period.

2. Concerning the Communication from the Com-
mission on the implementation of the first phase of
the European Climate Change Programme (9)

The Committee of the Regions points out that its
2.1.
proposals for initiating a dialogue with local and regional
authorities set out in its opinion of 21 September 2000 on the
European Climate Change Programme have largely been
in the
ignored by the Commission. This is also evident
composition of the sectoral working groups.

(9) COM(2001) 580 final.

12.8.2002

EN

Official Journal of the European Communities

C 192/61

2.2.
The Committee stresses that the different working
methods, timetables and compositions of the working groups
are reflected in the choice of the proposed measures and in
impact assessments.

image to offer customers savings and renewable green energy.
The CoR nevertheless wants to draw the attention to the fact
that despite EU environmental policy, demand for energy has
been growing. Greater efforts need to be made in this area.

The CoR is disappointed that the proposed climate
2.3.
programme for combating climate change no longer includes
a proposal for harmonising the minimum level of energy
taxation, even though that would be one of the most effective
measures that could be included in the common measures and
policies.

2.4.
The Committee notes that the programme includes a
proposal — albeit cautious — for uniform fuel taxation for
commercial transport as well as a proposal for a marked
increase in the share of biofuels and a derogation for them
from excise duty. It should also be possible to agree on a
minimum level of fuel taxation for commercial civil aviation.

2.5.
The Committee of the Regions supports the doubling
of the share of combined heat (including district cooling) and
power production and a substantial increase in the share of
biofuels in the transport sector. More should be done to
promote biofuel-based heat and power generation.

2.6.
To foster combined heat and power production and a
switch to this energy form, the CoR feels that local authorities
responsible for land use and planning must be given the right
to determine the most appropriate form of heating.

The Committee considers that a Public Awareness
2.7.
Campaign and an accompanying Campaign for Take-off can
make an important contribution to reducing greenhouse gas
emissions by raising public awareness and spreading good
practice. Regions and municipalities could play an important
role as initiators of local and regional climate protection
campaigns and energy-saving activities, as energy users them-
selves and in other respects because of their proximity to
citizens. The proposed allocation of funds through the SAVE
programme will require substantial additional investment as
well as additional financing at national level. Promotion of
renewable energy sources should also be combined with these
campaigns.

2.8.
The CoR is sceptical about the appropriateness of a
directive on energy demand management in conditions of
open market competition. Some energy sellers in the liberalised
electricity markets are already offering consumers energy-
saving products such as bulbs and energy reviews of buildings
and industrial processes. The aim of these activities is to find
new products and services to compensate for lower energy
sales. The services offered by energy saving companies (ESCOs)
are a good example of the new services now available. It is also
useful from the point of view of the energy seller’s corporate

2.9.
The Committee feels that public procurements favour-
ing energy-saving and environmentally friendly products must
be promoted by removing barriers resulting from competition
policy at both Community and national level.

2.10.
The CoR considers that the projected increase in
greenhouse gas emissions from the transport sector by 50 %
in about 15 years is a matter for concern and inconsistent with
sustainable development. Congestion on roads and in built-up
areas increases local air pollution, endangering people’s health
and well-being.

The Committee stresses that greenhouse gas emis-
2.11.
sions mainly occur locally and efforts to reduce then must
involve all relevant players. The importance of different
emission sources varies by municipality and region. There are
also major differences between countries in terms of emissions
and their sector of origin, which are explained by geography,
climatic conditions, industrial structure and the environmental
and social policy pursued in Member States. The Commission
has taken a sectoral approach and sought reductions in
emissions mainly in the largest sectors, in the name of cost-
effectiveness. There is a danger here that small operators and
small sources of greenhouse gases will be overlooked when
deciding on the range of measures to be deployed.

2.12.
The CoR supports the revision of the IPPC directive
with regard to greenhouse gas emissions. Even though green-
house gas emissions may not have an immediate impact on
the local environment, the precautionary principle must be
applied because of a moral responsibility towards present and
future generations concerning changes in emission levels
and the implications of climate change. Frequently applied
emission-reduction measures, such as reduced energy use, lead
to an immediate improvement in local air quality.

3. Concerning the Proposal for a Directive of the Euro-
pean Parliament and of the Council establishing a
scheme for greenhouse gas emission allowance
trading within the Community and amending Council
Directive 96/61/EC (1)

The Committee takes the view that the emissions
3.1.
trading scheme and its operation on a trial basis must be

(1) COM(2001) 581 final.

C 192/62

EN

Official Journal of the European Communities

12.8.2002

voluntary (as trading always is ) and apply to legal persons
qualified to enter into legal contracts: municipalities, cooperat-
ive societies, public limited companies, etc. This would rule
out the need for an installation-based approach. The CoR
thinks that the countries accepted as EU members could
choose to take part in the emissions trading scheme.

capacities or outputs exceeding threshold values
is an
unnecessary restriction on the emissions trading opportunities
of potential operators. The Committee bases this argument on
the fact that at national level firms can choose measures for
reducing greenhouse gas emissions which are best suited to
the circumstances.

The CoR believes that any operator who can reliably
3.2.
demonstrate their level of greenhouse gas emissions and who
authorises an authority to verify it before and after each
transaction must be eligible to participate in the scheme,
including during the trial phase. At national level, the share of
emissions covered during he trial period could be limited to,
for example, a maximum of half of
the country’s total
greenhouse gas emissions. This could be done by, for example,
using a notification procedure within a specified time limit.

The first allocation of emission allowances should be

3.3.
free of charge.

The Committee of the Regions notes that limiting the
3.4.
gases that are eligible for trading to only the most important
gas, i.e. carbon dioxide, is not the best approach, even during
the trial phase. Rather, the Committee feels that trading would
be more representative if, for example, methane emissions
produced during waste management and nitrous oxide emis-
sions due to transport were also designated as tradeable gases.

3.5.
The CoR feels that limiting the coverage of the scheme
to certain activities and to installations with production

Brussels, 14 March 2002.

The Committee assumes that the monitoring of emis-
3.6.
sions trading would be carried out by fairly small bodies to be
set up at national and EU level, for example ‘emission market
centres’. They could be established, for example, in connection
with the monitoring of the Kyoto Protocol.

3.7.
The Committee of the Regions is concerned that, in
the case of all three documents examined here, the contents,
preparatory work and proposed action by the Commission
and at national level are, without exception, aimed at Member
the major emission producing sectors and largest
States,
operators or at the main types of greenhouse gases and highest
emissions levels. How does the Commission intend to ensure
that in future the low emissions levels or special gases of small,
local and regional operators, municipalities and regions are
brought within the scope of essential emission reduction
measures? In the long run the involvement of all operators is
needed and wanted in efforts to reduce emissions. Should the
scope of effective emission-reduction efforts be extended to
include small operators as well, right down to the level of
individual citizens? This would work in a civil society built on
the basis of a ‘bottom-up’ approach and sound ethical stan-
dards. There can be no doubt that civil society needs effective
and durable reductions in greenhouse gas emissions to ensure
its existence, also beyond the Kyoto commitment period.

The President

of the Committee of the Regions

Albert BORE