Draft Document: Unlocking Europe’s potential in clean innovation and growth

COMMISSION STAFF WORKING DOCUMENT (Draft – Not final)

Following the Communication “International climate policy post-Copenhagen: Acting now to reinvigorate global action on climate change” , and in line with the Council conclusions of 15 March 2010 , this staff working paper assesses the potential impacts of stepping up the EU’s ambition level from 20 to 30%. It does so taking into account the outcome of the 15th Conference of the Parties to the UNFCCC, last year in Copenhagen.
Furthermore, this paper responds to the mandate given in the Emission Trading Directive (Article 10b) to the Commission to submit by end of June 2010 an analytical report assessing the situation of energy-intensive sectors that have been determined to be exposed to significant risks of carbon leakage in the light of the international negotiations. Finally, the ETS Directive (article 10b (1) letter c) asked the analytical report to include an assessment of the impact of carbon leakage on Member States’ energy security, in particular where electricity connections with the rest of the Union are insufficient and where there are electricity connections with third countries.
This paper responds to the above requests. It has the following structure:

  • Chapter 2 assesses the pledges under the Copenhagen accord and the extent to which they can be expected to lead to significant emission reductions and how they compare to the expectations of the EU.
  • Chapter 3 describes the new baseline and reference scenario (reflecting the Climate and Energy Package agreed in 2009) and assesses the impact of the economic crisis on the implementation costs.
  • Chapter 4 puts the near term reductions in a 2050 perspective.
  • Chapter 5 examines the costs and benefit of stepping up the ambition level to 30% in 2020.
  • Chapter 6 reports on the expected implications for the energy intensive sectors deemed to be exposed to carbon leakage.
  • Chapter 7 evaluates the impact of carbon leakage on Member States’ energy security, in particular where electricity connections with the rest of the Union are insufficient and electricity connections with 3rd parties exist.
  • Chapter 8 assesses the legal form for a post-2012 agreement and the impact of the EU own legislation.

Full Document in MS Word format

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