EU presses U.S. to sign Kyoto protocol

The European Union (EU) has signed the Kyoto protocol on climate change and called on the U.S. government to sign too.

Ritt Bjerregaard signed the agreement at the United Nations headquarters in New York, committing EU as a whole to an 8% reduction in emissions of greenhouse gases by 2012 (OGJ, Dec. 15, 1997, p. 17).

Bjerregaard called for the U.S. government to adopt the Clinton administration's proposals for tax incentives and subsidies to encourage more efficient use of fossil fuels and development of renewable energy technologies.

Bjerregaard said she "regretted recent press reports about the reaction of the U.S. Congress, which seems intent to make sufficient funding unlikely.

"The fight against climate change is linked extremely closely to domestic action. The U.S. is by far the world's biggest emitter of greenhouse gases and ought to do more than everybody else, not less."

Emissions trading

Meanwhile, London's International Petroleum Exchange (IPE) submitted a proposal to the U.K. government for establishment of a traded market in carbon dioxide emissions permits.

IPE said that one of the most important principles to emerge from the climate change conference in Kyoto last December was for a market-based solution to pollution problems.

The exchange says that, once overall targets for pollution and emissions reductions have been set by governments, responsibility for trading emissions permits should be devolved to large CO2 emitters.

"Legislation is key for the establishment of a market," said IPE, "as, without strictly enforced rules, CO2 producers will have no incentive to trade permits. IPE calls for the U.K. government to take the lead within Europe by introducing legislation initially in the U.K., and lobbying for wide take-up within the EU."

The exchange envisions the creation of two separate markets: one for "over the counter" deals between two parties and another enabling risk management by market participants.

Bjerregaard said: "Emissions trading should be subject to enforceable, accountable, verifiable, open, and transparent rules. Trading of so-called 'hot air' should not lead to overall reductions being lower than would otherwise be the case.

"There is a need to develop a strong, efficient, and effective compliance regime backing the legally binding commitments under the protocol."

Energy efficiency

The EU also adopted a communication on energy efficiency, said to be the first step towards an EU strategy for the rational use of energy. This particularly targets energy efficiency in buildings, where 40% of EU energy is used.

The EU said its strategy over the next years should include realization of the significant economic potential for energy efficiency that exists in the EU, estimated to be 18% of 1995 energy consumption by 2010.

Christos Papoutsis, EU energy commissioner, said: "Energy we avoid using constitutes the cleanest energy source. Energy saving also makes good economic sense, and we are giving a clear signal of the importance we attach to energy efficiency."

The EU said that wider market introduction of energy-efficient household appliances and other energy-using equipment will be given priority through the extension of an EU labeling scheme and through negotiated agreements with manufacturers.

Wider use of voluntary agreements to reduce consumption will be pursued, including demand-side management by utilities and better energy management in the public sector.