Communication from the Commission to the Council, the European Parliament, the European Economic and Social Committee and the Committee of the Regions - Limiting global climate change to 2 degrees Celsius - The way ahead for 2020 and beyond
Date: 2007-01-10
Institutions: European Commission
Subjects: EU environmental policy, climate change, energy policy, pollution control, reduction of gas emissions, tradeable emission permit

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 10.1.2007 
COM(2007) 2 final 

COMMUNICATION FROM THE COMMISSION TO THE COUNCIL, THE 
EUROPEAN PARLIAMENT, THE EUROPEAN ECONOMIC AND SOCIAL 
COMMITTEE AND THE COMMITTEE OF THE REGIONS 

Limiting Global Climate Change to 2 degrees Celsius  
The way ahead for 2020 and beyond 

{SEC(2007) 7} 
{SEC(2007) 8} 

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COMMUNICATION FROM THE COMMISSION TO THE COUNCIL, THE 
EUROPEAN PARLIAMENT, THE EUROPEAN ECONOMIC AND SOCIAL 
COMMITTEE AND THE COMMITTEE OF THE REGIONS 

Limiting Global Climate Change to 2 degrees Celsius  
The way ahead for 2020 and beyond 

1. 

EXECUTIVE SUMMARY 

Climate change is happening. Urgent action is required to limit it to a manageable 
level.  The  EU  must  adopt  the  necessary  domestic  measures  and  take  the  lead 
internationally  to  ensure  that  global  average  temperature  increases  do  not  exceed 
pre-industrial levels by more than 2°C. 

This  Communication  and  the  accompanying  impact  assessment  show  that  this  is 
technically  feasible  and  economically  affordable  if  major  emitters  act  swiftly.  The 
benefits far outweigh the economic costs. 

This  Communication  is  addressed  to  the  Spring  2007  European  Council  which 
should decide on an integrated and comprehensive approach to the EU's energy and 
climate  change  policies.  It  follows  up  on  the  2005  Communication  "Winning  the 
Battle  against  Global  Climate  Change",  which  provided  concrete  recommendations 
for EU climate policies and set out key elements for the EU's future climate strategy. 
In deciding the next steps in our climate change policy the European Council should 
take  decisions  which  will  enhance  the  conditions  for  reaching  a  new  global 
agreement to follow on from the Kyoto Protocol's first commitments after 2012.  

This  Communication  proposes  that  the  EU  pursues  in  the  context  of  international 
negotiations the objective of 30 % reduction in greenhouse gas emissions (GHG) by 
developed countries by 2020 (compared to 1990 levels). This is necessary to ensure 
that  the  world  stays  within  the  2ºC  limit.  Until  an  international  agreement  is 
concluded, and without prejudice to its position in international negotiations, the EU 
should  already  now  take  on  a  firm  independent  commitment  to  achieve  at  least  a 
20 % reduction of GHG emissions by 2020, by the EU emission trading scheme (EU 
ETS), other climate change policies and actions in the context of the energy policy. 
This approach will allow the EU to demonstrate international leadership on climate 
issues. It will also give a signal to industry that the ETS will continue beyond 2012 
and  will  encourage  investment  in  emission  reduction  technologies  and  low  carbon 
alternatives. 

After 2020, developing country emissions will overtake those of the developed world. 
In the meanwhile, the rate of growth of overall developing country emissions should 
start to fall, followed by an overall absolute reduction from 2020 onwards. This can 
be  achieved  without  affecting  their  economic  growth  and  poverty  reduction,  by 
taking  advantage  of  the  wide  range  of  energy  and  transport  related  measures  that 
not  only  have  a  major  emissions  reduction  potential,  but  also  bring  immediate 
economic and social benefits in their own right. 

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By  2050  global  emissions  must  be  reduced  by  up  to  50 %  compared  to  1990, 
implying  reductions  in  developed  countries  of  60-80 %  by  2050.  Many  developing 
countries will also need to significantly reduce their emissions. 

Market  based  instruments  such  as  the  EU  ETS  will  be  a  key  tool  to  ensure  that 
Europe  and  other  countries  reach  their  targets  at  least  cost.  The  post-2012 
framework  should  enable  comparable  domestic  trading  schemes  to  be  linked  with 
one another, with the EU ETS as the pillar of the future global carbon market. The 
EU  ETS  will  continue  to  be  open  after  2012  to  carbon  credits  from  the  Clean 
Development  Mechanism  and  Joint  Implementation  projects  under  the  Kyoto 
Protocol. 

The  EU  and  its  Member  States  should  decide  on  a  very  significant  increase  in 
investment  in  research  and  development  in  the  areas  of  energy  production  and 
saving. 

2. 

THE CLIMATE CHALLENGE: REACHING THE 2ºC OBJECTIVE 

Strong  scientific  evidence  shows  that  urgent  action  to  tackle  climate  change  is 
imperative. Recent studies, such as the Stern review, reaffirm the enormous costs of 
failure to act. These costs are economic, but also social and environmental and will 
especially fall on the poor, in both developing and developed countries. A failure to 
act  will  have  serious  local  and  global  security  implications.  Most  solutions  are 
readily available, but governments must now adopt policies to implement them. Not 
only  is  the  economic  cost  of  doing  so  manageable,  tackling  climate  change  also 
brings considerable benefits in other respects. 

The  EU's  objective  is  to  limit  global  average  temperature  increase  to  less  than  2°C 
compared to pre-industrial levels. This will limit the impacts of climate change and 
the  likelihood  of  massive  and  irreversible  disruptions  of  the  global  ecosystem.  The 
Council  has  noted  that  this  will  require  atmospheric  concentrations  of  GHG  to 
remain  well  below  550  ppmv  CO2  eq.  By  stabilising  long-term  concentrations  at 
around  450  ppmv  CO2  eq.  there  is  a  50  %  chance  of  doing  so.  This  will  require 
global  GHG  emissions  to  peak  before  2025  and  then  fall  by  up  to  50  %  by  2050 
compared to 1990 levels. The Council has agreed that developed countries will have 
to continue to take the lead to reduce their emissions between 15 to 30 % by 2020. 
The European Parliament has proposed an EU CO2 reduction target of 30 % for 2020 
and 60 to 80 % for 2050. 

This Communication identifies options for realistic and effective measures in the EU 
and  globally  that  will  allow  the  2ºC  objective  to  be  met.  The  GHG  emissions 
trajectory  set  out  in  the  impact  assessment  represents  a  cost-effective  scenario  to 
meet  the  2ºC  objective.  It  supports  an  emissions  reduction  target  for  developed 
countries  of  30  %  by  2020  compared  to  1990  emission  levels.  It  also  shows  that 
emissions reductions by developed countries alone will not be sufficient. Developing 
country  emissions  are  projected  to  surpass  those  of  developed  countries  by  2020, 
which will more than offset any reductions possible in  developed countries beyond 
that date. Effective action on climate change therefore requires reduced growth in the 
GHG emissions of developing countries and reversing emissions from deforestation. 

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Furthermore  a  sustainable  and  efficient  forest  policy  enhances  the  contribution  of 
forests to the overall reductions of GHG concentrations. 

3. 

THE COSTS OF INACTION AND ACTION 

The Commission’s 2005 Communication "Winning the battle against global climate 
change" demonstrated that the benefits of limiting climate change outweigh the costs 
of  action.  Recent  research  confirms  the  broad  range  of  impacts  of  climate  change, 
including on agriculture, fisheries, desertification, biodiversity, water resources, heat 
and cold related mortality, coastal zones and damages from floods.  

The distribution of impacts of climate change is likely to be uneven. Some regions in 
the  EU  will  suffer  disproportionately.  For  instance  in  Southern  Europe,  climate 
change  is  likely  to  decrease  crop  productivity,  increase  heat  related  mortality  and 
have a negative impact on tourism conditions during summer.  

The  Stern  Review  makes  the  point  that  climate  change  is  the  result  of  the  greatest 
market  failure  the  world  has  ever  seen.  The  failure  to  include  the  costs  of  climate 
change  in  market  prices  that  guide  our  economic  behaviour  carries  huge  economic 
and social costs. The costs of inaction, estimated by the Stern Review at 5 to 20 % of 
global  GDP,  would  fall  disproportionately  on  the  poorest  with  the  least  capacity to 
adapt, exacerbating the social impacts of climate change. 

By 2030, world GDP is projected to be almost double that of 2005. GDP growth in 
main  developing  country  emitters  will  remain  higher  than  that  of  developed 
countries. The impact assessment shows that global action on climate change is fully 
compatible with sustaining global growth. Investment in a low-carbon economy will 
require  around  0.5  %  of  total  global  GDP  over  the  period  2013–2030.  This  would 
reduce  global  GDP  growth  by  only  0.19  %  per  year  up  to  2030,  a  fraction  of  the 
expected annual GDP growth rate of 2.8 %. This is an insurance premium to pay, and 
would  significantly  reduce  the  risk  of  irreversible  damages  resulting  from  climate 
change. Most importantly, it greatly overstates the effort since no correction is made 
for associated health benefits, greater energy security, nor does it account for reduced 
damages from avoided climate change. 

4. 

THE BENEFITS OF ACTION, RELATIONSHIP WITH OTHER POLICY AREAS 

Oil  and  gas  prices  have  doubled  over  the  past  three  years,  with  electricity  prices 
following. Energy prices are expected to remain high and to increase over time. The 
Commission’s recent Action Plan for Energy Efficiency demonstrates that there is a 
solid  economic  case  for  policies  that  increase  overall  resource  use  efficiency,  even 
without taking the accompanying emissions reductions into account. 

The  impact  assessment  shows  that  EU  action  to  tackle  climate  change  would 
significantly  increase  the  EU's  energy  security.  Oil  and  gas  imports  would  each 
decrease by around 20 % by 2030 compared to the business as usual case. Integrating 
climate  change  and  energy  policies  will  therefore  ensure  that  they  are  mutually 
reinforcing. 

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Action  on  climate  change  also  reduces  air  pollution.  For  example,  reducing  CO2 
emissions  in  the  EU  by  10  %  by  2020  would  generate  enormous  health  benefits 
(estimated at € 8 to 27 billion). Such policies will therefore make it easier to attain 
the objectives of the EU’s strategy on air pollution.  

Similar  benefits  exist  in  other  countries.  By  2030,  the  US,  China  and  India  are 
projected  to  import  at  least  70  %  of  their  oil.  Geopolitical  tensions  could  rise  as 
resources become scarcer. At the same time, air pollution is increasing, in particular 
in  developing  countries.  Reducing  GHG  emissions  in  other  countries  will  improve 
their energy security and air quality. 

5. 

ACTION IN THE EU 

(a) 

Defining emissions reduction targets 

There is still a large potential for reducing GHG emissions in the EU. The Strategic 
EU  Energy  Review  proposes  measures  that  will  unlock  much  of  this  potential. 
Moreover,  the  measures  adopted  under  the  European  Climate  Change  Programme 
and  other  policies  that  are  currently  being  implemented  will  continue  to  deliver 
emissions reductions after 2012. 

The EU can only achieve its climate change objectives by pursuing an international 
agreement.  EU  domestic  action  has  shown  that  it  is  possible  to  reduce  GHG 
emissions without jeopardising economic growth and that the necessary technologies 
and policy instruments already exist. The EU will continue to take domestic action to 
fight  climate  change.  This  will  allow  the  EU  to  show  the  way  in  the  international 
negotiations. 

The  Council  should  decide  that  the  EU  and  its  Member  States  propose  a  30 % 
reduction in greenhouse gas emissions by developed countries by 2020 as part of an 
international  agreement  aimed  at  limiting  global  climate  change  to  2ºC  above  pre-
industrial  levels.  Until  an  international  agreement  is  concluded,  and  without 
prejudice to its position in international negotiations, the EU should already now take 
on  a  firm  independent  commitment  to  achieve  at  least  a  20%  reduction  of  GHG 
emissions  by  2020  compared  to  1990  through  the  EU  ETS,  other  climate  change 
policies and actions in the context of the energy policy. This will signal to European 
industry  that  there  will  be  a  significant  demand  for  emission  allowances  beyond 
2012, and will provide incentives for investment in emission reduction technologies 
and low carbon alternatives. 

(b) 

Actions resulting from the EU’s energy policy  

In  line  with  the  Strategic  EU  Energy  Review,  the  following  concrete  actions  will 
ensure  a  competitive,  more  sustainable  and  secure  energy  system  and  a  significant 
reduction of GHG emissions in the EU by 2020: 

•  Improve the EU’s energy efficiency by 20 % by 2020. 

•  Increase the share of renewable energy to 20 % by 2020. 

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•  Adopt  an  environmentally  safe  carbon  capture  and  geological  storage  (CCS) 
policy,  including  the  construction  of  twelve  large-scale  demonstration  plants  in 
Europe by 2015. 

(c) 

Strengthening the EU ETS 

45 % of the EU’s CO2 emissions are covered by the EU ETS. A greater proportion 
should be covered from 2013. At least the following options strengthening the role of 
the scheme should be considered in the review of the EU ETS: 

•  Make  allocations  for  more  than  five  years  in  order  to  provide  predictability  for 

long-term investment decisions. 

•  Extend the scheme to other gases and sectors. 

•  Recognise carbon capture and geological storage. 

•  Harmonise  allocation  processes  across  Member  States  to  achieve  undistorted 

competition across Europe, including through a wider use of auctioning. 

•  Link  the  EU  ETS  to  compatible  mandatory  schemes  (e.g.  in  California  and 

Australia). 

(d) 

Limiting transport emissions 

EU  transport  emissions  have  continued  to  grow,  cancelling  out  a  large  part  of  the 
reductions  made  in  waste,  manufacturing  and  energy  sectors.  In  order  to  tackle 
transport emissions: 

•  Council  and  Parliament  should  adopt  the  Commission’s  proposal  to  include 

aviation in the EU ETS. 

•  Council should adopt the Commission's proposal to link taxes on passenger cars to 

CO2 emission levels. 

•  Further  measures  to  tackle  CO2  emissions  from  cars  will  be  outlined  in  the 
forthcoming  Communication  in  order  to  reach  through  a  comprehensive  and 
consistent  approach  the  target  of  120  g  CO2/km  by  2012.  Options  for  further 
reductions after 2012 will also be explored. 

•  Demand-oriented  measures,  such  as  those  outlined  in  the  White  Paper  on 

European Transport policy for 2010 and its review should be strengthened. 

•  GHG emissions from road freight transport and shipping should be further limited 

bearing in mind the international dimension. 

•  Life-cycle emissions of CO2 in transport fuels must be reduced, including through 
accelerating  the  development  of  sustainable  biofuels  and,  in  particular,  second 
generation biofuels. 

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(e) 

GHG emission reductions in other sectors  

Residential and commercial buildings 

Energy use of buildings can be reduced by up to 30 % by expanding the scope of the 
Directive  on  energy  performance  of  buildings  and  introducing  EU  performance 
requirements promoting very low energy buildings (leading to their widespread use 
by  2015).  As  climate  change  will  affect  the  less  advantaged  parts  of  society, 
governments should envisage special energy policies for social housing. 

Non-CO2 gases 

In  order  to  tackle  emissions  of  non-CO2  GHG,  responsible  for  17  %  of  the  EU’s 
emissions, a range of measures should be put forward that include: 

•  reinforcing  implementation  of  the  measures  under  the  Common  Agricultural 
Policy  and  the  EU  Forest  Action  Plan  to  reduce  emissions  from  EU  agriculture, 
and to promote biological sequestration; 

•  setting limits for methane emissions from gas engines, and from coal, oil and gas 

production or their inclusion in the EU ETS; 

•  further restricting or prohibiting uses of fluorinated gases; 

•  reducing  emissions  of  nitrous  oxide  from  combustion,  and  including  those  from 

large installations into the EU ETS. 

(f) 

Research and technological development 

Under  the  Community's  7th  Framework  Programme,  the  budget  for  environment, 
energy and transport research in the period 2007-2013 has increased to € 8.4 billion. 
This  should  be  used  early  so  as  to  promote  the  development  of  clean  energy  and 
transport  technologies  for  earliest  possible  deployment  and  further  strengthen 
knowledge of climate change and its impacts. Moreover, the research budget should 
be increased again after 2013 which should be mirrored by similar national efforts. 
The  Strategic  Energy  Technology  Action  Plan  and  the  Environment  Technology 
Action  Plan should be fully implemented and public-private partnerships  should be 
further promoted. 

(g) 

Cohesion policy 

The strategic guidelines on cohesion, adopted in October 2006, promote sustainable 
transport  and  energy  as  well  as  environmental  technologies  and  eco-innovations 
through  financial  assistance  under  the  Structural  Funds  and  the  Cohesion  Fund. 
These measures should be included in the operational programmes. 

(h)  Other measures 

The  EU  should  examine  all  possible  ways  of  reducing  GHG  emissions  and  of 
ensuring the environmental and economic consistency of the measures to be adopted. 
The  Second  Report  of  the  High  Level  Group  on  Competitiveness,  Energy  and  the 

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Environment  stated  that  the  feasibility  of  all  potential  policy  measures  that  could 
provide the necessary incentive to encourage the EU's trading partners to undertake 
effective measures to abate greenhouse gas emissions should be analysed1.  

The  EU  should  also  further  strengthen  public  awareness  by  sensitising  the  general 
public  to  the  climate  change  impacts  of  their  actions  and  engaging  it  in  efforts  to 
reduce these impacts. 

6. 

INTERNATIONAL ACTION IN THE GLOBAL FIGHT AGAINST CLIMATE CHANGE 

The  battle  against  climate  change  can  only  be  won  through  global  action.  But  to 
reach  the  2ºC  objective,  international  discussions  must  move  beyond  rhetoric 
towards  negotiations  on  concrete  commitments.  The  EU  should  make  such 
agreement its overarching international priority and organise itself so as to present a 
single  EU  position  and  policy  and  a  convincing  and  consistent  approach  over  the 
years  that  this  effort  will  require,  so  that  the  EU  pulls  its  full  weight.  This  will 
require different working methods in terms of coordination and international action. 

The basis for reaching such agreement is there. In countries like the US and Australia 
that have not ratified the Kyoto Protocol, there is a growing awareness of the dangers 
of  climate  change  leading  to  regional  initiatives  to  curb  GHG  emissions.  Business, 
more than some governments, is taking a long-term view and is becoming a driving 
force in the fight against climate change, asking for a coherent, stable and efficient 
policy framework to guide investment decisions. Most technologies to reduce GHG 
emissions  either  exist  or  are  at  an  advanced  stage  of  preparation  and  can  reduce 
emissions (see Graph 1). What is needed is support from major emitters for a long-
term agreement to ensure their deployment and further development. 

1 

The Commission's Strategic Energy Review adopted at the same time as this Communication also refers 
to trade policy measures contributing to this. 

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Technologies that could reduce global CO2 
emissions from energy combustion

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2005

2010

2015

2020

2025

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Source: JRC-IPTS, POLES 

6.1. 

Action by developed countries 

Energy
Efficiency

Fossil fuel
switch 

Renewable
energies

Nuclear energy

Carbon capture
and storage

Remaining
CO2 emissions

Developed  countries  are  responsible  for  75  %  of  the  current  accumulation  of 
industrial  GHG  in  the  atmosphere  and  51  %  if  deforestation  (largely  in  developing 
countries)  is  included.  They  also  have  the  technological  and  financial  capacity  to 
reduce their emissions. Developed countries should therefore make most of the effort 
over the next decade. 

Even more than the EU, those developed countries that have not ratified Kyoto have 
significant  potential  to  reduce  their  GHG  emissions.  In  order  to  attain  the  2°C 
objective,  and  as  part  of  an  international  post-2012  agreement,  the  EU  should 
propose that developed countries commit to a 30 % reduction of their emissions by 
2020,  compared  to  1990  levels.  Emissions  trading  schemes  will  be  a  key  tool  to 
ensure  that  developed  countries  can  reach  their  targets  cost-effectively.  Schemes 
such as the EU ETS are being developed elsewhere. Domestic trading schemes with 
comparable levels of ambition should be linked and cut the costs of meeting targets. 

The  post-2012  framework  must  contain  binding  and  effective  rules  for  monitoring 
and enforcing commitments so as to build the confidence that all countries will live 
up to them, and that there will be no backsliding as recently observed. 

6.2. 

Action in developing countries 

In the immediate future, developed countries should take substantive action to reduce 
their  emissions.  As  developing  country  economies  and  emissions  grow  in  absolute 
and  relative  terms  they  will,  by  2020,  account  for  more  than  50  %  of  global 
emissions (see Graph 2). Further action by developed countries alone will therefore 
not  only  lose  its  efficacy  but  simply  not  suffice  even  if  their  emissions  were  to  be 

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drastically  reduced.  It  is  therefore  indispensable  that  developing  countries,  in 
particular  the  major  emerging  economies,  start  reducing  the  growth  of  their 
emissions as soon as possible and cut their emissions in absolute terms after 2020. In 
addition,  a  major  effort  should  be  made  to  halt  emissions  resulting  from 
deforestation.  This  is  perfectly  feasible  without  jeopardising  economic  growth  and 
poverty  reduction.  Economic  growth  and  tackling  GHG  emissions  are  fully 
compatible.  The  impact  assessment  estimates  that  overall  GDP  of  developing 
countries  "with  climate  policy"  in  2020  should  be  a  tiny  fraction  (1  %)  lower  than 
GDP  "without  climate  change  policy".  In  reality,  the  difference  is  even  smaller, 
probably  even  negative  as  it  does  not  take  into  account  the  benefits  of  avoided 
climate change damage. Over the same period, GDP is projected to double in China 
and India and increase by around 50 % in Brazil. We will be more convincing in our 
efforts to engage developing countries to take action, if all major developed country 
emitters substantially reduce their emissions. 

Graph 2: Projected greenhouse gas emissions 
(industry and energy, business as usual scenario)

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20

15

10

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1990

2005

2020

Developed countries Developing countries

Source: JRC-IPTS, POLES 

Many  developing  countries  are  already  making  efforts  that  result  in  significant 
reductions  in  the  growth  of  their  GHG  emissions,  through  policies  addressing 
economic, security or local environmental concerns. There are many policy options 
for developing countries, where benefits outweigh the costs. 

•  Address low productivity of energy use and hence reduce growing concerns about 

energy costs and security. 

•  Renewable  energy  policies  are  often  cost-effective,  including  for  meeting  rural 

electricity needs. 

•  Air quality policies improve peoples' health. 

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•  Methane captured from landfills, coal beds, decomposing organic waste and other 

sources is a cheap source of energy. 

Such  policies  can  be  strengthened  by  sharing  good  practice  in  policy  design  and 
planning and technology co-operation. This will enable developing countries to play 
a greater part in global reduction efforts. The EU will continue and increase its co-
operation efforts in this respect. 

There are various options for engaging developing countries to take further action. 

(a) 

A new approach to the CDM 

The  Kyoto  Protocol’s  CDM  should  be  streamlined  and  expanded.  The  CDM 
currently  generates  credits  for  investments  in  emissions  reduction  projects  in 
developing countries, which can be used by developed countries to meet their targets, 
generating  considerable  flows  of  capital  and  technology.  The  scope  of  the  CDM 
could be expanded to cover entire national sectors, generating emissions credits if the 
whole  national  sector  exceeds  a  pre-defined  emission  standard.  However,  an 
expanded CDM can only function if there is increased demand for credits, and this 
will only happen if all developed countries take on substantial reduction obligations. 

(b) 

Improved access to finance 

Investment in new electricity generation in developing countries is projected to reach 
more  than  €  130  billion  per  year  in  order  to  support  economic  growth.  The  great 
majority  of  these  resources  will  be  generated  by  the  major  developing  countries 
themselves.  This  new  equipment  will  be  in  place  for  several  decades  and  will 
determine GHG emissions beyond 2050. It should be “state-of-the-art” and therefore 
presents a unique opportunity for reducing emissions in developing countries. 

Strongly  reducing  CO2  emissions  in  the  power  sector  will  require  an  additional 
investment of around € 25 billion per year. This gap can neither be filled through the 
CDM, even if expanded as suggested above, nor by development aid. Instead, it will 
require  a  combination  of  the  CDM,  development  aid,  innovative  financing 
mechanisms  (like  the  EU  Global  Energy  Efficiency  and  Renewable  Energy  Fund), 
targeted  loans  from  international  financial  institutions  and  efforts  by  those 
developing countries that have the means. The earlier this gap can be filled, the less 
developing country emissions will grow. 

(c) 

Sectoral approaches  

Another option is the introduction of sector-wide company-level emissions trading in 
sectors  where  the  capacity  exists  to  monitor  emissions  and  ensure  compliance 
particularly for energy-intensive sectors such as power generation, aluminium, iron, 
steel,  cement,  refineries  and  pulp  and  paper,  most  of  which  are  exposed  to 
international  competition.  Such  schemes  would  be  either  global  or  national;  if 
national,  schemes  in  developing  countries  should  be  linked  with  schemes  in 
developed  countries,  with  targets  for  each  sector  covered  being  gradually 
strengthened until they were similar to those set in developed countries. This would 
also  limit  the  transfer  of  high-emission  installations  from  countries  where  they  are 
subject to reduction commitments to countries where they are not. 

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(d)  Quantified emission limits 

Countries  that  reach  a  level  of  development  similar  to  that  of  developed  countries 
should  take  on  reduction  commitments  in  accordance  with  the  country’s  level  of 
development,  its  per  capita  emissions,  its  potential  to  reduce  emissions  and  its 
technical  and  financial  capacity  to  implement  further  emissions  limitation  and 
reduction measures. 

(e) 

No commitments for least developed countries 

Least developed countries will suffer disproportionately from the impacts of climate 
change. Because of their low level of GHG emissions, they should not be subject to 
obligatory  emissions  reductions.  The  EU  will  further  enhance  its  co-operation  with 
Least Developed Countries to help them tackle climate change challenges, inter alia 
through  measures  to  reinforce  food  security,  capacities  to  monitor  climate  change, 
disaster  risk  management,  preparedness  as  well  as  disaster  response.  Whilst 
development  assistance  will  be  required  to  integrate  climate  change  concerns, 
additional support will be required to allow the most vulnerable among them to adapt 
to climate change. The EU and others should also help them to increase their access 
to the CDM. 

6.3. 

Further elements 

A future international agreement should also address the following: 

•  Technological  change  requires  further  international  research  and  technology 
cooperation. The EU should significantly step up its research and technology co-
operation  with  third  countries.  This  should  include  setting  up  large-scale 
technology  demonstration  projects  in  key  developing  countries,  in  particular  on 
carbon  capture  and  geological  storage.  International  research  cooperation  should 
also  assist  the  quantification  of  regional  and  local  impacts  of  climate  change  as 
well  as  the  development  of  appropriate  adaptation  and  mitigation  strategies. 
Furthermore,  it  should  address,  inter  alia,  the  interaction  between  oceans  and 
climate change. 

•  Emissions resulting from the net loss of forest cover must come to a complete halt 
within  two  decades  and  be  reversed  afterwards.  Options  to  tackle  deforestation 
include effective international and domestic forest policies coupled with economic 
incentives.  Large  scale  pilot  schemes  are  required  soon  to  explore  effective 
approaches combining national action and international support. 

•  Measures to assist countries to adapt to the unavoidable consequences of climate 
change will have to be an integral part of the future global climate agreement. The 
need  to  adapt  to  the  impacts  of  climate  change  should  be  taken  into  account  in 
public  and  private  investment  decisions.  Building  on  the  implementation  of  the 
EU action Plan on climate change and development, to be reviewed in 2007, the 
EU should enhance its alliance-building with developing countries in the areas of 
climate change adaptation and mitigation. 

EN 

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•  An  international  agreement  on  energy  efficiency  standards  engaging  key 
appliance  producing  countries  will  benefit  market  access  and  help  reduce  GHG 
emissions. 

EN 

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