EU Compromise 2008

On Friday 12, 2008, EU leaders agreed in Brussels on a climate package intended to reduce their greenhouse emissions by 20% in 2020. "No other continent in the world has made such a commitment," said EU President Nicolas Sarkozy. If there is a global climate deal in December 2009, the EU will raise their emissions target to 30%.

Most of the emissions reductions will come from the industrial sector covered by the ETS, the European Trading Scheme. However, the plan to toughen up the ETS, in place since 2005, met with stiff resistance from Eastern European countries. They had to be placated with promises of free emissions quotas for several years before they will have to comply.

While most EU countries have accepted a national commitment to emissions reductions, the Eastern European countries will be allowed to raise their emissions until 2020, so as not to put a break on economic growth in the poorer parts of the EU.

Sweden, Denmark, Finland, and several other among the richer EU countries, argued for the possibility to lighten their part of the burden in emissions reduction by investing in developing countries. They will now be allowed to count investment in climate projects in developing countries as part of their overall effort. Roughly two-thirds of the national efforts may be achieved in developing countries.

The energy and climate package also includes a commitment to reduce EU countries energy consumption by 20% through energy efficiency, and to raise the share of renewable energy to 20% of the electricity mix. Finally, 10% of transportation fuels should in 2020 be biofuel.

"This is really a historic event. It would have been completely unacceptable if Europe today had climbed down from its high climate ambitions, when the USA finally have elected a president willing to put environment high on his agenda," said Sarkozy.

Before the EU energy and climate package is formally approved it must pass a vote in the European Parliament, scheduled for next Tuesday.

The environmental movement in Europe expressed their disappointment with Friday's compromise in Brussels and asked the European Parliament not to ratify the agreement.

"Today's agreement would mean that unacceptably high levels – around two-thirds – of these reductions could be met by buying carbon credits from projects outside EU borders. Angela Merkel, Silvio Berlusconi, Donald Tusk, and Nicolas Sarkozy should be ashamed. The Parliament can and should amend the worst parts of today's deal," declared a joint statement from Greenpeace, Oxfam, and Friends of the Earth.