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EU climate targets face new test Euro MPs stick to climate targets
(about 1 hour later)
European MPs are voting on a package of pollution reduction targets amid widespread concern about the cost to business in an era of low growth. European MPs have refused to dilute pollution reduction targets despite widespread concern about the cost to business in an era of low growth.
The European Parliament's Environment Committee is considering changes to the emissions trading system and plans to install carbon capture technology. The European Parliament's Environment Committee backed a tougher Emissions Trading Scheme (ETS) and plans to install carbon capture technology.
Poland is among several countries seeking to protect their industries from having to buy permits to pollute. MEPs say industry should buy emission permits, and not get them for free.
But critics fear allowing exceptions will undermine the entire scheme. But Poland is among several countries seeking to protect their industries from having to buy the permits.
EU leaders have pledged to cut CO2 emissions by 20% by 2020.EU leaders have pledged to cut CO2 emissions by 20% by 2020.
The planned reduction - compared to 1990 emission levels - would rise to 30% if an international agreement emerges embracing developing countries. The planned reduction - compared to 1990 emission levels - will rise to 30% if an international agreement emerges embracing developing countries.
But Poland, which relies on coal for more than 90% of its electricity, says the EU's Emissions Trading Scheme (ETS) will reduce the nation's energy independence and put up prices. As part of the plan, full auctioning of emission permits will be introduced for the power sector from 2013. We're giving five years' lead time to firms to adjust - it's important to send a signal Linda McAvan, Labour MEP class="" href="/1/hi/sci/tech/7603694.stm">Germany's 'clean coal' pilot
The ETS will also be expanded gradually to include CO2 emissions from aircraft.
At present, heavy industry gets some permits for free and has to buy others only if it exceeds the allowances.
Poland, which relies on coal for more than 90% of its electricity, says the ETS will reduce the nation's energy independence and put up prices.
Poland's Environment Minister, Maciej Nowicki, told Reuters news agency that he was close to assembling a blocking minority among EU member states which would force the European Commission to revise the CO2 emissions proposals.Poland's Environment Minister, Maciej Nowicki, told Reuters news agency that he was close to assembling a blocking minority among EU member states which would force the European Commission to revise the CO2 emissions proposals.
But a report from policy network Climate Strategies warns that if the group succeeds, the EU will lose its most powerful weapon in the fight for a new climate treaty. But a report from policy network Climate Strategies warns that if the group succeeds, the EU will lose its most powerful weapon in the fight for a new global climate treaty.
Climate Strategies says that the existence of carbon pricing in the EU puts up electricity prices anyway - so it is important that polluters all pay into a fund that could be used to cushion the poor from the price rises.Climate Strategies says that the existence of carbon pricing in the EU puts up electricity prices anyway - so it is important that polluters all pay into a fund that could be used to cushion the poor from the price rises.
Polluter paysPolluter pays
The MEPs' decisions on Tuesday will feed into the revision of EU policy on climate change, which France - current holder of the EU presidency - wants finalised by the end of this year.The MEPs' decisions on Tuesday will feed into the revision of EU policy on climate change, which France - current holder of the EU presidency - wants finalised by the end of this year.
The European Commission wants to strengthen the existing ETS, introducing full auctioning of emission permits from 2013 for the power sector. MEPs are trying to fast-track the legislation so that it is in place in time for next year's big international climate negotiations and the European parliamentary elections, Linda McAvan MEP, deputy leader of the Socialist group, told the BBC.
The ETS will also be expanded gradually to include CO2 emissions from aircraft.
At present, heavy industry gets some permits for free and has to buy others only if it exceeds the allowances.
Italy and Germany are both warning that forcing their industries to buy pollution permits will damage competitiveness.Italy and Germany are both warning that forcing their industries to buy pollution permits will damage competitiveness.
But Climate Strategies argues that giving some industries a "free ride" in the ETS will harm the wider economy.But Climate Strategies argues that giving some industries a "free ride" in the ETS will harm the wider economy.
"Free allowance allocation creates distortions for the carbon price signal and reduces the efforts of some sectors to reduce emissions, which in turn increases the costs for the remaining economy," the network said in a statement."Free allowance allocation creates distortions for the carbon price signal and reduces the efforts of some sectors to reduce emissions, which in turn increases the costs for the remaining economy," the network said in a statement.
Carbon captureCarbon capture
The MEPs on the committee voted on Tuesday in favour of fitting carbon capture and storage (CCS) technology to power plants - a technology that would help meet the emission targets.The MEPs on the committee voted on Tuesday in favour of fitting carbon capture and storage (CCS) technology to power plants - a technology that would help meet the emission targets.
A pilot power plant in Germany is the world's first to capture and store its own CO2 emissions.A pilot power plant in Germany is the world's first to capture and store its own CO2 emissions.
The climate package envisages that the auctioning of emission permits would help pay for carbon capture. Revenues from the ETS could total 50bn euros annually by 2020, the European Commission estimates. The climate package envisages that the auctioning of emission permits will help pay for carbon capture. Revenues from the ETS could total 50bn euros (£39bn) annually by 2020, the European Commission estimates.
The Climate Strategies report was published as influential economist Sir Nicholas Stern warned that it would be a serious mistake to water down climate policy. MEPs now agree that ETS revenue should be used to finance 12 commercially viable carbon capture plants across Europe, with plans for more in future.
Instead of changing the rules of carbon trading, which were an essential part of the EU climate scheme, Professor Stern said other European nations had to help Poland and its allies with their predicament. Under the commission's ETS "cap and trade" plan - now backed by MEPs - EU-wide limits will be placed on the supply of carbon permits, to stop energy firms making windfall profits from the ETS, Linda McAvan said.
"We're giving five years' lead time to firms to adjust - it's important to send a signal," she said.