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Climate plan concern as EU meets Climate plan concern as EU meets
(7 minutes later)
Green groups are fearful that a summit opening in Brussels will see attempts to dilute the EU's climate and energy package because of the economic crisis.Green groups are fearful that a summit opening in Brussels will see attempts to dilute the EU's climate and energy package because of the economic crisis.
Multi-billion-euro bank rescue schemes are due to dominate the two-day meeting of EU leaders but they will also discuss the climate change package.Multi-billion-euro bank rescue schemes are due to dominate the two-day meeting of EU leaders but they will also discuss the climate change package.
The EU's environment commissioner has told the BBC that the target of a 20% cut in emissions by 2020 still stands.The EU's environment commissioner has told the BBC that the target of a 20% cut in emissions by 2020 still stands.
But states may be able to trade away part of their emission cut obligations.But states may be able to trade away part of their emission cut obligations.
Poland does not fear reducing emissions by 20% by 2020 but the way of achieving this is at present is not acceptable Maciej Nowicki Polish Environment Minister href="/1/hi/sci/tech/7655290.stm">EU's climate package 'in crisis' Stavros Dimas has said that governments should be able to achieve more than half of their target carbon cuts by paying developing countries to invest in clean energy projects on their behalf. FROM THE TODAY PROGRAMME href="http://news.bbc.co.uk/today/hi/default.stm">More from Today programme
Stavros Dimas told BBC News that governments should be able to achieve more than half of their target carbon cuts by paying developing countries to invest in clean energy projects on their behalf. The commission originally said that not more than a third of Europe's emissions targets should be traded away in this fashion.
He is also telling EU countries they can keep the cash they raise from selling carbon emissions permits to big business whereas some in the EU had hoped to use the funds raised from auctions to bump Europe towards a low-carbon economy. But in an interview with BBC News Mr Dimas said: "If we put together the sectors covered by the emissions trading system and those sectors like transport, agriculture, waste, households, we have 50% - perhaps a bit more than 50% - of the effort that could be done abroad."
Some EU governments facing the credit crisis are nervous of the cost of Europe's climate package for their industries so the commission is trying to be their flexible friend, BBC environment analyst Roger Harrabin reports. A British government source reacted angrily to the suggestion, saying that it would undermine Europe's credibility on climate change.
This proposed compromise will be fiercely resisted by the European Parliament and by some member states worried that the EU's climate leadership will be undermined, he adds. Mr Dimas's proposal will also be resisted by the European Parliament.
Cost fears They will point to a Commission declaration in January that said: "The (35% trading) limits are in place to ensure that the package triggers investment in cleaner technologies and renewables.
Politicians in Germany, Italy and Poland have argued that existing targets for reducing greenhouse gas emissions would impose extra burdens on electricity generators and carmakers, as an economic recession looms. FROM THE TODAY PROGRAMME class="" href="http://news.bbc.co.uk/today/hi/default.stm">More from Today programme "Higher limits might mean that targets could be missed, with Europe straying from the path towards a low-carbon economy. They should also ensure that Europe has greater leverage in international negotiations."
Challenging times
Mr Dimas's proposed change is a sign that the EU climate and energy package is facing severe challenges because of the current financial crisis. Poland does not fear reducing emissions by 20% by 2020 but the way of achieving this is at present is not acceptable Maciej Nowicki Polish Environment Minister EU's climate package 'in crisis'
Germany, for instance, is insisting that its exporting industries, such as cars, should be shielded from international competition.
Mr Dimas says he is considering plans to delay the imposition of carbon permits on some energy-intensive sectors, or to give free allowances to car firms.
He says there is no point forcing jobs to migrate to countries where carbon regimes are more lax.
Environmentalists agree in principle, but fear the result will be an erosion of Europe's climate ambitions.
"The world desperately needs leadership from the EU, in order to ensure that a strong global deal to combat climate change is brokered in Copenhagen next year," said Kirsty Clough, WWF-UK's climate change policy officer.
"We cannot avoid our responsibility for delivering emission reductions at home, nor can we allow the EU to backtrack on the European Parliament's recent call for half of the revenues from auctioning pollution permits to be given to developing countries.
"By trying to shirk our responsibility to tackle climate change at home, these proposals demonstrate how dangerously close we are to becoming 'offset Europe'."
The Polish government has been threatening a revolt over the EU's scheme to force power firms to buy pollution permits at auction.
Poland fears this will increase energy prices and increase its dependency on Russian gas.
On Tuesday, Polish Environment Minister Maciej Nowicki said his country wanted changes in the climate package because of the cost.On Tuesday, Polish Environment Minister Maciej Nowicki said his country wanted changes in the climate package because of the cost.
"Poland does not fear reducing emissions by 20% by 2020 but the way of achieving this is at present is not acceptable [to us]," he told reporters."Poland does not fear reducing emissions by 20% by 2020 but the way of achieving this is at present is not acceptable [to us]," he told reporters.
Commissioner Dimas has stressed that it is for EU governments and the European Parliament to make any amendments to the climate and energy package, not the European Commission. A very senior member of the Commission told BBC News six months ago he wanted nation states to use all the proceeds from auctioning - tens of billions of euros a year - to create the transition to a low-carbon economy in Europe.
He also argued that the package was "consistent with solving the financial crisis". But this proposal was resisted by member states and Mr Dimas's current message to the Polish government is much more seductive: you can keep all the proceeds from carbon auctioning for government revenue and use it for whatever you want.
"At the moment, people are focused on the economic crisis, but our package is part of the solution," he was quoted by Reuters news agency as saying in the Polish capital Warsaw. He said the Commission would still like to see at least 20% of the funds earmarked for green causes but pointed out: "It's not mandatory so there remains some room for the member states not to use the funds for what we would consider to be good causes like promoting carbon capture and sources or energy efficiency or renewable energy."
"Fighting climate change means investment in energy efficiency, promoting renewable sources and providing incentives to stimulate the economy and contribute to growth."
Trichet to speak
Leaders of the 27-member bloc are expected to rally behind the bank rescue plans agreed last week by officials from the 15-nation eurozone.
In a departure from the norm, they will be addressed by European Central Bank President Jean-Claude Trichet on Wednesday.
Leaders will be aware that the signs of recession are mounting. Germany, the continent's biggest economy, is on the verge of recession, a report said on Tuesday.
The summit will try to keep the emphasis on joint action to unfreeze bank lending and restore confidence in the markets.
"I am sure... there will be a common position," said European Commission chief Jose Manuel Barroso.
"I have boundless faith in the sense of responsibility and common sense of our heads of government and states."
Leaders will meet under the chair of the French, who hold the current presidency. In other expected business on a packed agenda:
  • Leaders are expected to sign an immigration pact, committing their countries to common principles for handling immigrants
  • The Irish government will be under scrutiny over its planned "roadmap" to overcome the rejection of the Lisbon Treaty in June by Irish voters
  • Leaders will discuss a timeframe for resuming talks on a new EU-Russia partnership treaty, which were suspended after the summer war in Georgia