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The European Union Climate Change Mitigation and
                Adaptation Plan                                       Climate Change: Threats
                                                                      The EU’s ambition: Limiting climate change
                       NSTDA Annual Conference on                     to 2ºC
             Science and Technology for our Society and Planet        The European Union Policy
                                                                      EU Cooperation with partner countries
Veronique Lorenzo
Counsellor
European Union Delegation to Thailand

29 March 2010




                                       Climate Change:                                     The scientific evidence
                                 a threat for our planet

                                                                 IPCC 4th Assessment Report 2007:

                                                                      Global atmospheric concentrations of CO2, CH4
                                                                      and N2O have increased markedly as a result of
                                                                      human activities since 1750.
                                                                      Increases in CO2 are due primarily to fossil fuel use
                                                                      and land-use change, increases in CH4 and N2O are
                                                                      primarily due to agriculture.
                                                                      Most of the observed increase in globally averaged
                                                                      temperatures since the mid-20th century is very
                                                                      likely due to the observed increase in
                                                                      anthropogenic greenhouse gas concentrations




                                                                                                     The policy response :
                                     The global objective                                           a two tracks approach



                                                                 1.    Mitigation: Limit the emissions of GHGs
       Limiting global average temperature
       increase to 2ºC compared to pre-industrial                2.    Adaptation: Cope with the inevitable impacts of
       levels                                                          climate change

       The heart of the EU political programme:
       •   Lisbon strategy for growth and employment
       •   Technological innovation
       •   Research and development
       •   Competitiveness
       •   Energy security
GHGs emissions mitigation
                                                                                                                               The EU Climate Change
                                                                                                                                 and Energy Package

       Moving towards a low-carbon economy                                                        January 2007: fully integrated policy package covering both
                                                                                                  climate change and energy policies:
                                                                                                     “Limiting Global Climate Change to 2° The way ahe ad
                                                                                                                                           C:
       Conserve energy (energy-efficient equipments, systems,                                        for the EU and the World for 2020 and beyond”
       buildings) and use all renewable energies in all sectors
                                                                                                     “An Energy Policy for Europe”
       Appropriate energy infrastructure investment decisions,
       which have long term effects on emissions                                                  January 2008: the Climate Change and Energy Package:
       Changes in lifestyle and behaviour patterns, especially in                                    20% GHG reduction compared to 1990 (unilateral commitment)
       building, transport and industrial sectors                                                    30% GHG reduction compared to 1990 (In the context of
       Better management of land use (deforestation)                                                 international agreement)
       Effective carbon price signal to create incentives to invest in                               20% share of renewable energy in the overall energy
       low-GHG products, technologies and processes                                                  consumption
                                                                                                     20% increase in energy efficiency by 2020
       Appropriate incentives for development and transfers of
       technologies                                                                               Legislation agreed in December 2008
                                                                                                  Entry into force: 25 June 2009




                                                                                                                                        The EU ETS’s extended
                                       The Package at a glance                                                                                          scope

                                    cross-sectoral               technology specific &
                                    targets & instruments        product policies                Scope 2005-2012:
large industrial
installations &                                                                                     Sectors: Power generation and industrial sectors (steel and iron,
aviation                                                              Carbon capture and            cement, lime, ceramics, paper, glass)
                                                                      storage Directive
                                         EU ETS                                                     Gases: CO2, opt-in of N2O
                                                                         Renewable               Extended scope as from 2013:
                                                                         Energy Directive
                                                                                                    New sectors: Aluminium, basic chemicals production and aviation
                                                                                                    (from 2012)
                                                                        Fuel Quality Directive
                                                                                                    New gases: PFC from aluminium production, N2O from certain
                                       Effort                                                       chemicals production
“small                                Sharing                                                    Possible inclusion of maritime transport if no agreement in the
sources”                              Decision                           CO2& Cars
                                                                                                 International Maritime Organisation




                                Primary feature of the new ETS:                                                                      Harmonised Allocation
                                          A robust EU-wide cap
                                                                                                                                                     Rules

                                                                                                  Auctioning is default allocation method
                                                                                                     For the power sector as from 2013 (>50% of allowances)
                                                     Gradient: -1.74%                                Limited derogation available for 10 new MS
                                                                                                  Transitional free allocation
                                                                                                     Benchmarks (average of 10% most efficient installations in (sub)sector)
                                                                                                     General benchmark approach (one product – one benchmark)
                                                                              -21% vs 2005
                                                                                                     Allocations determined ex-ante, no ex-post adjustment
                                                                                                     Taking into account most efficient techniques, high efficiency
                                                                                                     cogeneration, efficient energy use of waste gases etc

                                                                                                  Phasing out free allocation for sectors not exposed to risk of
                                                                                                  carbon leakage
                                                                                                     80% in 2013 – 30% in 2020 – 0% in 2027
                   2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024


   Linear factor to be reviewed by 2025                                                           Free allocation for sectors proned to “Carbon leakages”
   Aviation to be included; will change figures correspondingly, but cap not reduced
   Disclaimer: all figures are provisional and do not account for new sectors in third period
Credits from third countries
                                                                                       EU Effort Sharing Decision

Role of offset credits
  Provide additional means to comply with targets within the EU     ~ 60% of the EU GHG emissions
  Build capacity for cap-and-trade in less developed countries –    Implementation through national and EU
  but at least 50 % of reduction effort compared to 2005 needs to
  be within the EU                                                  measures (energy efficiency standards, CO2 &
                                                                    cars, energy labeling of equipment and
Quality                                                             appliances)
  Projects should bring real emission reductions and benefits to
  sustainable development
                                                                    Key elements:
  The Commission and the Member States can decide that credits        Binding annual targets in 2013-2020
  from certain types of projects are not to be accepted for           Strict reporting obligations for Member States
  compliance purposes in the EU ETS
  Take account of international agreement and reform of CDM
                                                                      Annual compliance check for period 2013-2020
                                                                      Member States subject to corrective action if non-
                                                                      compliance




                             Principles determining
                                                                                                     Climate Change
                                    national targets                                                     Adaptation

NOT based on marginal abatement costs/reduction
potentials, but:
Principle of fairness and growth
  National emission reduction targets determined as a function of
  GDP/capita for Member States (MS)
  MS with high GDP/capita to reduce emissions (in relation to
  2005 emissions)
  MS with low GDP/capita may increase emissions
Average reduction for EU27 in Non ETS is -10% by
2020 compared to 2005:
  No reduction of more than 20%
  No increase of more than 20%




                                       Climate Change                                            Working together!
                                           Adaptation
April 2009: White Paper for Adaptation
Measures and Policies                                               Lack of capacity in developing
  Solid scientific and economic analysis for                        countries to deal with the changes
  decision making                                                   Historical responsibility from
  Information exchange                                              developed countries
  Mainstreaming adaptation                                          ODA at risks
  National and regional approaches
                                                                    EU unilateral action will not solve the
                                                                    climate issue!
Cooperation with developing                                    Thailand – EC Cooperation
                                    countries                                           on Climate change

                                                        Thailand EC Cooperation Facility II
                                                          advance Thailand's constructive dialogue and cooperation with
Mainstreaming Climate Change                              the European Union in the field of science and technology and
                                                          also environment, climate change and energy
  Impacts of the project on CC                            Demand-driven approach: competitive Calls for Proposals
                                                          Policy Support Component through Technical Assistance
  Impacts of CC on the project
                                                        1 Call for Proposals with ONE deadline on 25 May
Stand alone programmes                                  2010 with total EU funding of €2.4 million.
                                                        Policy Support Component through Technical
  Environmental projects/programmes to                  Assistance
  respond to the problem of climate change
                                                        For more information on the CfP, consult the
                                                        Guidelines for Applicants:
                                                        http://www.deltha.ec.europa.eu/home.htm




                     Thailand – EC Cooperation                                   Thailand – EC Cooperation
                            on Climate change                                           on Climate change



SWITCH Programme                                        Scoping study for capacity building needs for MRV
                                                        of GHG emissions and mitigation activities
  Promotion of Sustainable Consumption &                  a) exploring the needs of developing countries as regards
  Production in Asia                                      monitoring, reporting and verification of emissions and the
                                                          development of greenhouse gases mitigation actions, and
  Thailand Policy Support Component (2                    b) providing concrete recommendations on the structure
                                                          and elements of a capacity building program to be
  Million €) – under preparation in                       implemented between 2011 and 2013-2014.
  cooperation with NESDB
                                                          Thailand via the Thailand Greenhouses Gas Organisation
                                                          (TGO) has expressed interest in participating




                     Thailand – EC Cooperation                                                    Conclusions
                            on Climate change


7th Framework Programme (FP7):                          Climate Change: an opportunity!
  Funding of € 53 billion during 2007-2013
  Articulated along 5 Programmes                        Comprehensive and global action is
  opportunities for collaborative research in several   crucial
  key thematic areas including Environment and
  Climate change (€1.9 billion earmarked)               Financing for mitigation and adaptation
  Call for Proposals                                    essential
  NSTDA is the focal point for Thailand
                                                        EU’s commitment to multilateral
  Official FP7 website:
  http://cordis.europa.eu/fp7/home_en.html              negotiations is intact!
Thank you!



For more information:
 http://ec.europa.eu/environment/clima
 t/climate_action.htm

 Delegation of the European Union to
 Thailand

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EU climate change mitigation and adaptation plan

  • 1. Outline The European Union Climate Change Mitigation and Adaptation Plan Climate Change: Threats The EU’s ambition: Limiting climate change NSTDA Annual Conference on to 2ºC Science and Technology for our Society and Planet The European Union Policy EU Cooperation with partner countries Veronique Lorenzo Counsellor European Union Delegation to Thailand 29 March 2010 Climate Change: The scientific evidence a threat for our planet IPCC 4th Assessment Report 2007: Global atmospheric concentrations of CO2, CH4 and N2O have increased markedly as a result of human activities since 1750. Increases in CO2 are due primarily to fossil fuel use and land-use change, increases in CH4 and N2O are primarily due to agriculture. Most of the observed increase in globally averaged temperatures since the mid-20th century is very likely due to the observed increase in anthropogenic greenhouse gas concentrations The policy response : The global objective a two tracks approach 1. Mitigation: Limit the emissions of GHGs Limiting global average temperature increase to 2ºC compared to pre-industrial 2. Adaptation: Cope with the inevitable impacts of levels climate change The heart of the EU political programme: • Lisbon strategy for growth and employment • Technological innovation • Research and development • Competitiveness • Energy security
  • 2. GHGs emissions mitigation The EU Climate Change and Energy Package Moving towards a low-carbon economy January 2007: fully integrated policy package covering both climate change and energy policies: “Limiting Global Climate Change to 2° The way ahe ad C: Conserve energy (energy-efficient equipments, systems, for the EU and the World for 2020 and beyond” buildings) and use all renewable energies in all sectors “An Energy Policy for Europe” Appropriate energy infrastructure investment decisions, which have long term effects on emissions January 2008: the Climate Change and Energy Package: Changes in lifestyle and behaviour patterns, especially in 20% GHG reduction compared to 1990 (unilateral commitment) building, transport and industrial sectors 30% GHG reduction compared to 1990 (In the context of Better management of land use (deforestation) international agreement) Effective carbon price signal to create incentives to invest in 20% share of renewable energy in the overall energy low-GHG products, technologies and processes consumption 20% increase in energy efficiency by 2020 Appropriate incentives for development and transfers of technologies Legislation agreed in December 2008 Entry into force: 25 June 2009 The EU ETS’s extended The Package at a glance scope cross-sectoral technology specific & targets & instruments product policies Scope 2005-2012: large industrial installations & Sectors: Power generation and industrial sectors (steel and iron, aviation Carbon capture and cement, lime, ceramics, paper, glass) storage Directive EU ETS Gases: CO2, opt-in of N2O Renewable Extended scope as from 2013: Energy Directive New sectors: Aluminium, basic chemicals production and aviation (from 2012) Fuel Quality Directive New gases: PFC from aluminium production, N2O from certain Effort chemicals production “small Sharing Possible inclusion of maritime transport if no agreement in the sources” Decision CO2& Cars International Maritime Organisation Primary feature of the new ETS: Harmonised Allocation A robust EU-wide cap Rules Auctioning is default allocation method For the power sector as from 2013 (>50% of allowances) Gradient: -1.74% Limited derogation available for 10 new MS Transitional free allocation Benchmarks (average of 10% most efficient installations in (sub)sector) General benchmark approach (one product – one benchmark) -21% vs 2005 Allocations determined ex-ante, no ex-post adjustment Taking into account most efficient techniques, high efficiency cogeneration, efficient energy use of waste gases etc Phasing out free allocation for sectors not exposed to risk of carbon leakage 80% in 2013 – 30% in 2020 – 0% in 2027 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Linear factor to be reviewed by 2025 Free allocation for sectors proned to “Carbon leakages” Aviation to be included; will change figures correspondingly, but cap not reduced Disclaimer: all figures are provisional and do not account for new sectors in third period
  • 3. Credits from third countries EU Effort Sharing Decision Role of offset credits Provide additional means to comply with targets within the EU ~ 60% of the EU GHG emissions Build capacity for cap-and-trade in less developed countries – Implementation through national and EU but at least 50 % of reduction effort compared to 2005 needs to be within the EU measures (energy efficiency standards, CO2 & cars, energy labeling of equipment and Quality appliances) Projects should bring real emission reductions and benefits to sustainable development Key elements: The Commission and the Member States can decide that credits Binding annual targets in 2013-2020 from certain types of projects are not to be accepted for Strict reporting obligations for Member States compliance purposes in the EU ETS Take account of international agreement and reform of CDM Annual compliance check for period 2013-2020 Member States subject to corrective action if non- compliance Principles determining Climate Change national targets Adaptation NOT based on marginal abatement costs/reduction potentials, but: Principle of fairness and growth National emission reduction targets determined as a function of GDP/capita for Member States (MS) MS with high GDP/capita to reduce emissions (in relation to 2005 emissions) MS with low GDP/capita may increase emissions Average reduction for EU27 in Non ETS is -10% by 2020 compared to 2005: No reduction of more than 20% No increase of more than 20% Climate Change Working together! Adaptation April 2009: White Paper for Adaptation Measures and Policies Lack of capacity in developing Solid scientific and economic analysis for countries to deal with the changes decision making Historical responsibility from Information exchange developed countries Mainstreaming adaptation ODA at risks National and regional approaches EU unilateral action will not solve the climate issue!
  • 4. Cooperation with developing Thailand – EC Cooperation countries on Climate change Thailand EC Cooperation Facility II advance Thailand's constructive dialogue and cooperation with Mainstreaming Climate Change the European Union in the field of science and technology and also environment, climate change and energy Impacts of the project on CC Demand-driven approach: competitive Calls for Proposals Policy Support Component through Technical Assistance Impacts of CC on the project 1 Call for Proposals with ONE deadline on 25 May Stand alone programmes 2010 with total EU funding of €2.4 million. Policy Support Component through Technical Environmental projects/programmes to Assistance respond to the problem of climate change For more information on the CfP, consult the Guidelines for Applicants: http://www.deltha.ec.europa.eu/home.htm Thailand – EC Cooperation Thailand – EC Cooperation on Climate change on Climate change SWITCH Programme Scoping study for capacity building needs for MRV of GHG emissions and mitigation activities Promotion of Sustainable Consumption & a) exploring the needs of developing countries as regards Production in Asia monitoring, reporting and verification of emissions and the development of greenhouse gases mitigation actions, and Thailand Policy Support Component (2 b) providing concrete recommendations on the structure and elements of a capacity building program to be Million €) – under preparation in implemented between 2011 and 2013-2014. cooperation with NESDB Thailand via the Thailand Greenhouses Gas Organisation (TGO) has expressed interest in participating Thailand – EC Cooperation Conclusions on Climate change 7th Framework Programme (FP7): Climate Change: an opportunity! Funding of € 53 billion during 2007-2013 Articulated along 5 Programmes Comprehensive and global action is opportunities for collaborative research in several crucial key thematic areas including Environment and Climate change (€1.9 billion earmarked) Financing for mitigation and adaptation Call for Proposals essential NSTDA is the focal point for Thailand EU’s commitment to multilateral Official FP7 website: http://cordis.europa.eu/fp7/home_en.html negotiations is intact!
  • 5. Thank you! For more information: http://ec.europa.eu/environment/clima t/climate_action.htm Delegation of the European Union to Thailand