01 January 2009

Environmental policy toughens

EU climate package allows compromise, free credits until 2012

By Stephan Delbos, The Prague Post, December 31, 2008

Environmental policy toughens

EU Environment Commissioner Dimas spoke at a Dec. 10 press conference on a climate change package that is sure to spark debate.(Courtesy Photo)

The recent passing of the EU climate and energy package in Poznań, Poland, will shape the Czech EU presidency set to begin Jan. 1, making the Czech Republic a key player in setting the framework for EU environmental law, as well as touting the climate package on an international level. Czech companies remain well ahead of the curve, however, and Environment Minister Martin Bursík was able to negotiate a sale of excess carbon credits with representatives of the World Bank while he was in Poznań.

"The Czech Republic can sell emission credits, so-called AAU units, thanks to the fact that CO2 emissions are lower not by 8 percent, but by around 25 percent against 1990 compared with the pledge in the Kyoto Protocol," Environment Ministry spokesman Jakub Kašpar told the Czech News Agency.

The climate package, passed Dec. 17 by the European Parliament, outlines strict emissions limits for businesses. The most drastic measures outlined in the package - and those most likely to be contested by industries - deal with emissions targets for developed countries. According to the plan, global emissions should be cut 50 percent by 2050 compared with the rates of 1990, with incremental cuts of at least 1.74 percent each year until then.

The Czechs did manage a compromise in the package, as carbon credits will be free for firms until 2012, at which point energy companies will have to buy them at auctions. Deputy Prime Minister for European Affairs Alexandr Vondra argued that the Czech Republic depends on coal more than other member states, and therefore would be more affected by the auctions.

But those hoping to see the Czechs use their tenure as president to influence the outcome of national issues may be disappointed, said an EC source in Brussels who did not want to be named, citing EU protocol allowing only spokespeople to be quoted by the media.

"Presidencies have a power, but it is a limited power. The EU president may have to put aside the desires of [its] state's delegation because if countries have a strong national agenda, they are often unsuccessful as president."

The Czech business community appears to be well aware that the presidency will not specifically benefit commerce in the country, according to a poll carried out by the Czech Chamber of Commerce. Eighty percent of the polled firms said they did not believe the presidency would benefit them financially.

Now that the climate package has been approved, the Czech Republic and the European Union will begin taking steps toward international ratification. Over the next few months, Czech Environment Minister Martin Bursík will travel to assess general willingness to negotiate on climate legislation. Trying to convince countries like the United States, which refused to take part in the Kyoto Protocol, to comply with even stricter regulations will be no easy task.

"Above all, we have an enormous amount of work concerning international climate diplomacy," Bursík said in a press release.

Though the climate package passed with an overwhelming majority, in the months leading up to the vote, the outcome remained unclear. Accordingly, the Czech Republic developed two presidential plans: one focusing on energy and the economy, and one on the environment. Now that the directives are clear, the Czech Republic will move into place as the main promoter of European environmental law, preparing the groundwork for the 2009 climate conference in Copenhagen.

"The Czech presidency is an important one for environmental legislation, to promote the policies before Copenhagen," said the same EC source. "The Czechs must accept communal responsibilities and keep these issues rolling."

The Czech presidency's role in promoting European environmental legislation highlights how little autonomy the country has during its role as president. Though presidential countries can defer European Commission proposals for the time of their tenure, only the European Commission - not presidential countries - has the power to propose legislation. Under pressure from the European Commission and international scrutiny garnered from the passing of relatively strict environmental measures contained within the climate package, it is highly unlikely that the Czech Republic will shirk its responsibility as representative of the EU, which has become an outspoken entity against global warming.

"We've become leaders in the fight against global warming," said Barbara Helfferich, spokeswoman for EC Environmental Commissioner Stavros Dimas. "The biggest part of our legislation exists in the field of the environment."

The drafting of the European climate package was begun as a response to the 1992 Kyoto Protocol, which has proven to be insufficient in combating global warming. The EU now aims to enforce even more stringent restrictions on industry. Since September's Wall Street crisis and the resulting EU recession, however, many opponents have protested that the EU's environmental concerns should take a backseat to the economy. But Jos Debelke, director general of the European Commission's Environment Directorate-General, emphasized the importance of not losing sight of long-term environmental goals in the light of recent economic developments.

"I've observed that the climate crisis is being put on the same level as the economic crisis," said Debelke. "We've laid the environmental groundwork, now we should switch to international negotiations."

© The Prague Post

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