Opinion of the European Economic and Social Committee on the "Proposal for a Decision of the European Parliament and of the Council for a monitoring mechanism of Community greenhouse gas emissions and the implementation of the Kyoto Protocol" (COM(2003) 51 final — 2003/0029 (COD))
Date: 2003-07-16
Institutions: European Economic and Social Committee
Subjects: EU environmental policy, climate change, environmental monitoring, greenhouse gas, reduction of gas emissions

30.9.2003

EN

Official Journal of the European Union

C 234/51

they are unlikely to experience sales volumes that would force
them to take on outside help, in addition to that provided by
the family.

2.6.
All things considered, the EESC feels that the exemp-
tion measures are only marginally warranted by the need,
referred to in the fifth recital, ‘to prevent damage to the island’s
economic and social equilibrium’. Furthermore, it cannot fail
to point out that the circumstances described in the French
Government’s document, and repeated in the Commission
document, regarding ‘Corsica’s special position as an island’
and the problems raised by the ‘isolation and topography of

the island’ are common to almost all
sometimes more acutely.

islands in the EU,

2.7.
All things considered, the EESC feels that the reasons
advanced do little to justify the provision, so much so that one
might wonder whether this were not a almost a case of state
aid rather than a temporary tax exemption. However, the
Committee is well aware of the political circumstances and of
the state of relations between Corsica and the motherland. A
refusal would have consequences reaching far beyond the
relatively small figures at stake. Consequently, and mindful of
its responsibilities, the EESC reluctantly endorses the proposed
directive as submitted.

Brussels, 16 July 2003.

The President

of the European Economic and Social Committee

Roger BRIESCH

Opinion of the European Economic and Social Committee on the ‘Proposal for a Decision of the
European Parliament and of the Council for a monitoring mechanism of Community greenhouse
gas emissions and the implementation of the Kyoto Protocol’

(COM(2003) 51 final — 2003/0029 (COD))

(2003/C 234/14)

On 19 February 2003 the Council decided to consult the European Economic and Social Committee,
under Article 175 (1) of the Treaty establishing the European Community, on the above-mentioned
proposal.

The Section for Agriculture, Rural Development and the Environment, which was responsible for
preparing the Committee’s work on the subject, adopted its opinion on 27 June 2003. The rapporteur
was Ms Le Nouail-Marlière.

At its 401st Plenary Session on 16 and 17 July 2003 (meeting of 16 July), the European Economic and
Social Committee adopted the following opinion by 106 votes in favour, with eight abstentions.

1.

Introduction

Scientific evidence (1) confirms that climate change is
1.1.
taking place and that most of the warming observed during
the last 50 years is attributable to human activities. The

atmosphere concentration of carbon dioxide has increased by
31 % in 25 years, the global average temperature has increased
by 0,6 °C since 1861 and the rate of change will be more rapid
if measures are not taken to reduce emissions. Temperatures
are projected to rise by 1,4 to 5,8 °C over the next 100 years,
and sea levels by between 0,1 — 0,9 metres (2).

( 1) Third Assessment Report of

the Intergovernmental Panel on
Climate Change (IPCC) 2001 and European Commission study on
World Energy, Technology and Climate Policy Outlook.

(2) Europe’s environment: the third assessment, European Environ-

ment Agency, Copenhagen, 2003, p. 91.

C 234/52

EN

Official Journal of the European Union

30.9.2003

Climate change will result in economic losses due to more
frequent tropical cyclones, loss of land as a result of rising sea
levels and damage to fishing stocks, agriculture and water
supplies. Less than a metre rise in sea levels in 100 years would
engulf several small
flood coastal areas and
displace 150 million people by 2050.

island states,

It will also worsen food security in tropical, sub-tropical and
predominantly rural countries. These will suffer a general
reduction in potential crop yields and be most vulnerable to
famine, social unrest and political instability.

The number of people living in countries that are water-
stressed will increase massively, from 1,7 billion people (one-
third of the world’s population) to around 5 billion by 2025.
There will be an increase in the geographic spread of potential
transmission of malaria and dengue fever, which already
impinge on 40-50 % of the world’s population.

All the models warn that given the planet’s thermic inertia,
even drastic action would need decades to significantly check
warming.

The United Nations Framework Convention on Climate
1.2.
Change (UNFCCC) was signed by 154 countries at the Earth
Summit in Rio in June 1992. It came into effect on 21 March
1994 and it represents a concerted effort to tackle global
warming occurring as a result of human-induced (anthropo-
genic) climate change. Its ultimate objective is the ‘stabilisation
of greenhouse gas concentrations in the atmosphere at a level
that would prevent dangerous anthropogenic interference with
the climate system. Such a 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 threat-
ened and to enable economic development to proceed in a
sustainable manner’ (1).

1.4.
The EU is committed to reducing its collective emis-
sions of greenhouse gases by 8 % below its emissions level in
1990 in the 2008-2012 period. However, total greenhouse
gas emissions in the EU are expected to fall by 4,7 % from
1990 to 2010 assuming adoption and implementation of
current measures, leaving a shortfall of 3,3 % to the target of
8 % reduction.
If the EU is to achieve its Kyoto target,
substantial further action and additional policies are needed (2).
In 1998 the EU Member States adopted the ‘burden-sharing
agreement’ in which they agreed to internally distribute the
collective EU reduction obligation of 8 %. The EU ratified the
Kyoto Protocol at the Council meeting of 4 March 2002
to Council Decision No 358/2002/EC (3). The
pursuant
Member States completed their national ratification procedures
on 31 May 2002.

1.5.
In order to encourage and facilitate the implementation
of their emission reduction commitments, Annex I Parties
have at their disposal so-called flexible mechanisms, created
with a view to promoting the achievement of emissions
reductions in a cost-effective way. These flexible mechanisms
are: Emissions Trading, Joint Implementation, and the Clean
Development Mechanism (encouraging sustainable develop-
ment and cooperation between developed countries and
developing countries).

At the Seventh Conference of the Parties to the UNFCCC held
in Marrakech in November 2001 (COP7), the Parties also
adopted the Marrakech Ministerial Declaration recognising
that the World Summit on Sustainable Development provides
an important opportunity for addressing the linkages between
climate change and sustainable development (4).

2. Content of the proposal

1.3.
The Kyoto Protocol (KP) to the UNFCCC was adopted
in December 1997 at the 3rd session of the Conference of the
Parties (COP) in Kyoto, Japan. To date, 76 countries plus the
EC and its Member States, as well as most of the applicant
countries, have already ratified it.

2.1.
This proposal replaces Council Decision No 389/93/
EEC for a monitoring mechanism of Community CO2 and
other

To enter into force the Kyoto Protocol needs to be ratified by
at least 55 countries responsible for more than 55 % of carbon
dioxide (CO2) emissions in 1990. The United States withdrew
from the protocol in 1998. Despite the efforts to achieve this
objective before the Johannesburg summit in August 2002,
the protocol has not yet entered into force.

( 1) Article 2 UNFCCC.

(2) Europe’s environment : the third assessment, European Environ-

ment Agency, Copenhagen, 2003, p. 102.

(3) Decision 358/2002/EC 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 (OJ L 130 of 15.5.2002,
p. 1, comprising the protocol and its annexes.
EP Report A5-0025/2002 on the proposal of the Council relating
to the above decision.

(4) Commission Communication to the Council and the European
Parliament on climate change in the context of development
cooperation. (COM(2003) 85 final).

30.9.2003

EN

Official Journal of the European Union

C 234/53

greenhouse gas emissions (1) which established a mechanism
for monitoring anthropogenic greenhouse gas emissions and
evaluating progress towards meeting commitments in respect
of these emissions.

2.5.
In order to assess whether the Community and its
Member States are on track towards their targets under the
Kyoto Protocol, i.e. the actual progress and projected progress,
the established annual reporting to the Council and the
Parliament needs to be continued.

2.2.

The aims of this revision are to:

— reflect

in the Monitoring Mechanism reporting obli-
gations and guidelines for the implementation of the UN
Framework Convention on Climate Change (UNFCCC)
and the Kyoto Protocol, on which the political agreements
and legal decisions were taken at the seventh Conference
of the Parties (COP7) in Marrakech;

— provide for further information on emission forecasts at
Member State and Community-level, and harmonisation
of these emission forecasts, in the light of experience with
the current Monitoring Mechanism;

— to address reporting requirements and implementation
relating to the ‘burden-sharing’ between the Community
and its Member States.

2.3.
Experiences with the current Monitoring Mechanism
have revealed the need for some further harmonisation in the
reporting of policies and measures and projections by Member
States. So far, proper assessment of Member States’ policies and
projections has been difficult due to significant methodological
differences under the current scheme. Reliable projections will
be crucial for an early warning system and for non-compliance
prevention.

2.4.
A Community greenhouse gas Inventory System under
the Kyoto Protocol will be introduced. The Community’s
compliance with Kyoto Protocol guidelines and the quality of
the Community greenhouse gas inventory depends on the
implementation of National Inventory Systems in the Member
States and the quality of the Member States’ inventories.

( 1) OJ L 167 of 9.7.1993, p. 31, modified by Decision No 296/99/

EC (OJ L 117 of 5.5.1999, p. 35).
Opinion of the Economic and Social Committee on the Proposal
for a Council Decision for a monitoring mechanism of Com-
munity CO2 and other greenhouse gas emissions, OJ C 73 of
15.3.1993, p 73.
EP Opinion, single reading OJ C 115, p 246 (1993).
Opinion of the Economic and Social Committee on the Proposal
for a Council Decision amending Decision 93/389/EEC for a
monitoring mechanism of Community CO2 and other greenhouse
gas emissions, OJ C 89 of 19.3.1997, p. 7.
EP Decision, second reading PE T4-0079/1999, 9.2.1999, OJ
C 150 of 28.5.99.

2.6.
Guidelines under Article 7(4) of the Kyoto Protocol
require that each Annex I Party shall establish and maintain a
national registry to ensure the accurate accounting of the
issuance, holding, transfer, acquisition, cancellation and retire-
ment of assigned amount units, emission reduction units,
certified emission reductions and removal units. As Parties to
the Kyoto Protocol, the Community and the Member States
are therefore required to establish national registries.

3. General comments

3.1.
The Kyoto Protocol, which was established in 1997 to
limit the emission of greenhouse gases, represents only 3 % of
the effort necessary to check the warming process. Its appli-
cation would be derisory or even counter productive for some,
as it favours sectors presenting other risks, such as nuclear
energy or accelerated carbon storage, whose side effects have
not been determined. Nevertheless, the EESC approves the
modifications to simplify the annual or periodic report pro-
cedures by Member States of the enlarged European Union
and their communication obligations to the Convention
Secretariat.

3.2.
The EESC supports the Commission’s efforts to present
forward projects and studies, such at the WETO study (World
Energy, Technology, and Climate Policy Outlook 2030) (2).
This is a priority of the Sixth Community Framework Research
Programme 2003-2006, which earmarks 2,12 billion euros
for sustainable development, global change and ecosystems
over the next
four years. This study incorporates world
energy forecasts, progress in the field of energy technologies,
consequences on climate change policy and technological
prospects.

3.2.1.
The Kyoto Protocol’s objectives for emissions could
be reached more easily if new energy sources were found.

(2) Two recent Commission communications should also be men-
tioned: Climate change in the context of development cooperation
COM(2003) 85 final of 11.3.2003, and Developing an action
plan for environmental technology COM(2003) 131 final of
25.3.2003.

C 234/54

EN

Official Journal of the European Union

30.9.2003

According to the WETO study, the costs of implementing the
objectives could be reduced by up to 30 % if nuclear or
renewable energy sources were used on a large scale. Emissions
could also be significantly reduced through improved energy
efficiency and energy savings, which would reduce energy
demand and the carbon intensity of energy consumption. The
WETO study also considers that the industry will probably
have to make the greatest efforts to reduce the energy demand.
Lowering high carbon intensity energy consumption should
mainly be achieved by replacing coal with gas and biomass, as
well as oil to a lesser extent. This scenario would also include
a considerable increase in various forms of renewable energy
production such as wind and solar power. The Committee
believes that all sectors of human activity should be involved
in efforts to lower energy consumption.

The ECCP has confirmed that there is a great emissions
3.3.
reduction potential, but that much of
this potential has
remained unrealised because of obstacles that hinder the
market penetration of the relevant technologies. This is why,
within the ECCP, a number of different barriers have already
been identified along with specific actions to overcome
them (1).

4. Specific comments

4.1.
The Clean Development Mechanism (CDM) will allow
developed countries to gain Certified Emission Reductions by
financing emissions-reducing projects in developing countries.

( 1) COM(2003) 131 final.

Brussels, 16 July 2003.

The Certified Emission Reductions will then in turn help the
developed countries in meeting their own emission reduction
targets. Consequently, the Clean Development Mechanism is
of particular relevance with respect to developed-developing
country relations and cooperation.

Already now, before the Kyoto Protocol enters into
4.2.
force, project-based activities can be eligible under the CDM
and generate credits. These credits will have a value since
governments can purchase them to meet their Kyoto targets
or entities can use them to fulfil their domestic obligation to
reduce emissions at lower cost. This makes the CDM an
economic incentive for greening Foreign Direct Investment.
As such, and taking account the environmental additionality
requirement laid down by the Kyoto Protocol, the CDM is
expected to be a good vehicle for the transfer of clean and
modern technologies in developing countries while delivering
real development benefits (2).

5. Conclusions

5.1.
The EESC stresses the importance of updating the EU’s
monitoring system for Community greenhouse gas emissions
and implementing the Kyoto Protocol if it wants to work
actively towards accessions to and ratifications of the Kyoto
Protocol,
in the context of pan-European environmental
cooperation after the Kiev Conference (3).

(2) COM(2003) 85 final.
(3) Communication from the Commission to the Council and the
European Parliament on Pan-European environmental cooper-
ation after the 2003 Kiev conference COM (2003) 62 final.

The President

of the European Economic and Social Committee

Roger BRIESCH