EU: When 40 Is Only 33
Coming to Warsaw, ECO was feeling somewhat optimistic. Fresh statistics suggested that global CO2 emissions growth has slowed a bit, which could be the first sign of an approaching emissions peak. In September, China announced took a major positive step — a direction change in its coal policy. Three key industrial provinces must peak and decline coal consumption by 2017 and ban new dirty coal plants.
But then came the damaging announcements by Australia and Japan, whose shifts are in the negative direction.
After a week like this, we certainly don’t need more bad news. But according to rumours, the European Commission is preparing a proposal for a 2030 climate target of a meagre 40% reduction against 1990 levels.
The EU has long been seen as setting a global high water mark on ambition. Yet now it is undermining its own objective to keep global temperature below 2°C.
Yes, 40% seems like a lot – so let’s explain what this means. A 40% target for 2030 would in practice bring the EU on a pathway towards real emission cuts of merely 33% by 2030 due to the amount of surplus emission allowances in the system. Indeed, in order to accommodate the huge oversupply of surplus pollution permits in the EU’s carbon market, any 2030 target would need to be 7% stricter.
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