Bjerregaard insists energy levy key to meeting Kyoto targets

Date: 06/05/1999

By Renée Cordes

THE European Commission is to step up the pressure on member states to support proposals for an EU-wide energy tax, arguing that it has a crucial role to play in reducing greenhouse gas emissions.

A draft report drawn up by Acting Environment Commissioner Ritt Bjerregaard, which is expected to win the support of the full Commission next week, urges EU governments to approve the measure.

Officials say that Bjerregaard has decided to come forward with the report now, despite the caretaker Commission's decision to refrain from taking political initiatives, because of increasing concern at the Union's failure to agree on its strategy for combating climate change.

The move comes as EU environment ministers prepare for a specially convened 18 May meeting to try to break the deadlock, after negotiations between officials failed to achieve a breakthrough.

However, Bjerregaard's plea for agreement on the tax is unlikely to have much impact on those member states which are most fiercely opposed to it. EU-wide levies must be agreed unanimously, and Spain stepped up its campaign against the proposals last month by sending a paper to other Union governments claiming the Commission's plan was seriously flawed and discriminated against southern member states.

Aides to Bjerregaard concede that the main responsibility for reducing emissions, to meet pledges made at the Kyoto climate change conference in 1997, lies with individual member states. But they stress that action can also be taken at EU level.

Under the Commission's latest proposals, member states would extend existing minimum rates of excise duty on mineral oils to other products, including electricity, coal and natural gas. In addition, minimum rates for mineral oils set six years ago would be increased in three phases until 2002, taking inflation into account.

Although greenhouse gas emissions fell significantly in the early 1990s, that trend has been reversed in the last couple of years because of strong economic growth. As a result, say Commission officials, the fight against global warming has developed into an "urgent" problem which needs to be addressed immediately.

Even before signing the Kyoto protocol, the Union had pledged to cut emissions of carbon dioxide, the gas which contributes most to global warming.

At Kyoto, it pledged to reduce emissions of six greenhouse gases by 8% by 2012 at the latest.

In her report, Bjerregaard will also call for the Commission to negotiate emission-reduction agreements with industry, such as that agreed with European carmakers' association ACEA last year.

But aides warn that industry would need to make concrete commitments to boost energy efficiency. While some groups said they are open to discussions, they may not be willing to sign an agreement without the promise of exemptions from energy taxes.

" We are willing to do something, but there has to be a quid pro quo somewhere," said Claude Culem, head of energy policy for the European Chemical Industry Council (CEFIC).