Member states split over emission ‘credit’ schemes

Date: 21/09/00

By DEEP divisions within the EU over what type of clean energy projects should qualify for emission reduction 'credits' have weakened the bloc's bargaining position ahead of crucial climate change talks, according to experts.

The Union tabled a list of about half a dozen kinds of projects which it argues should qualify for 'clean defence mechanism' (CDM) credits at preliminary negotiations in Lyon, France, which ended last week.

These policy options, more commonly known as 'flexible mechanisms', are based on the premise that as global warming is an international problem, it does not matter where in the world reductions in greenhouse gas emissions are made as long as the overall goal is achieved.

Under the CDM scheme, countries would be able to exceed their emission targets at home if they could offset the overshoot by funding clean energy projects elsewhere.

The types of energy which could qualify for CDM credits drawn up by French negotiators include solar, wind and thermal power, in addition to more general measures such as improving energy efficiency in general and in the transport sector in particular.

Although other EU member states endorsed the list in Lyon, negotiators say most did so half-heartedly and are sticking to demands that the final version should include other, potentially highly controversial forms of energy.

Italy is, for example, pressing for waste incineration to be added to the list. Italy, France, Sweden and Finland are also campaigning for the inclusion of 'sinks'. These would allow countries to offset emission reduction targets with forestry and agricultural activities which absorb carbon naturally from the atmosphere.

The European Commission remains vehemently opposed to the use of sinks, insisting they would provide a loophole through which some countries could avoid implementing real changes at home to reduce emissions. "This would not be in line with the spirit of what was agreed at Kyoto," said one official.

The Lyon meetings did not produce any conclusions, either on CDM or any other issue, leaving most of the work to be done at the next round of global climate change talks in November.

Deep divisions within the EU over what type of clean energy projects should qualify for emission reduction 'credits' have weakened the bloc's bargaining position ahead of crucial climate change talks taking place in November 2000, according to experts.