1. EU climate change policies: mitigation and adaptation. Where to draw the subsidiarity line in climate change and sustainable energy policies? Matti Vainio European Commission DG Environment Save energy, save money, save the climate – local and regional actions CEMR seminar on climate change in the context of the EU Sustainable Energy Week 31 January 2007

2. Key Objectives Climate Change and Energy Package l Meeting the 2°C objective: m In international negotiations GHG reduction target of 30% by 2020 for developed countries (vs. 1990). m A firm, independent commitment to achieve at least 20% GHG reduction by 2020 for EU-27 (vs. 1990) l Perspective of Kyoto Protocol: m 2012 -8% (EU-15) m Today-5% (EU-27) -1% (EU-15)

3. l Energy efficiency (eg. cars, appliances, buildings) m to be improved by 20% by 2020 l Renewable energy: 20% mandatory objective by 2020 m differentiation of targets necessary between Member States m flexibility in target setting within a country between sectors m includes minimum biofuels target of 10% by 2020 l Sustainable power generation from fossil fuels: aiming at near-zero emissions of new plants by 2020 l New steps to reach internal market - options for unbundling and regulatory powers: m important for functioning EU ETS m decrease hurdles for renewables l Nuclear: Member States’ choice l Towards a European strategic energy technology plan An Energy Policy for Europe

4. Global Participation l The 2  C objective: Global GHG emissions need to peak around 2020 l EU & Developed countries: 30% GHG emission reduction target by 2020, compared to 1990 levels l Developing countries: Reduced growth asap, absolute reductions after 2020 l Deforestation: halt within two decades and then reverse

5. Firm independent target = long term signal for investors in ETS Review EU ETS Link it to compatible systems INVESTMENT COST GLOBAL GDP Global carbon market Global emissions peak around 2020: global carbon market decreases investment costs with a factor 3. Proposals to increase market signals in developing countries: Improve and widen CDM Improved access to financing (EBRD, GEEREF etc.)

6. Benefits and Costs l “Winning the Battle” & Stern Review: benefits of limiting Climate Change outweigh costs of action l Costs of inaction: 5%-20% of global GDP (Stern Review) l Costs of action for the EU (2030): m -30% target with global participation: -0,19% annualised GDP m -20% independent target: -0,02% to -0,09% annualised GDP l Does not include co-benefits: m Increased energy security m Improved competitiveness through innovation m Health benefits from reduced air pollution m Limits on climate change

7. Do we need to draw lines Where to draw the subsidiarity line in climate change and sustainable energy policies? Can you draw a line between national, regional and local policies?

8. Importance of EU level action l Internal market l Cross-border issues, eg transboundary air pollution, greenhouse gases l Make a difference at global level m establish leadership in climate change (eg carbon market) m speaking with one voice

9. Importance of regional and local action: making reduction concrete l Emission reduction m Infrastructure m Transport m Public procurement l Adaptation m Infrastructure m Regional and local spatial planning m Building standards

10. Importance of local action l Energy efficiency m engaging the broad public m building codes and practices, enforcement m Public procurement (building standards) m Infrastructure (heat networks/district heating) l Sustainable transport : local level crucial m urban planning m transport planning – promoting and organising public transport m public procurement (transport fleet, fuels) m congestion charging (eg London) – parking fees

11. Importance of local action l Renewable energy m Building standards m Local, decentralised in nature m Also a number of benefits are local : employment, new businesses, air quality… m Local level important for planning purposes and engaging/convincing the public l Awareness raising – close to the citizen

12. Conclusions l Climate change is happening m Need to adapt l We need to act at all levels l Complementarity of action, EU, National, Regional, Local levels l Co-benefits of action m Reduce CO2 emissions m Reduce air pollution m Save money m Make local communities better places to live

13. More information l Climate change: http://ec.europa.eu/environment/climat/future_action.htm l Energy: http://ec.europa.eu/energy/energy_policy/index_en.htm