news
October 7, 2008
EU considers bold climate change bill despite economic crises
BRUSSELS, Belgium – A committee of EU legislators has approved an ambitious climate change plan, resisting heavy pressure from lobbyists seeking to water down the bill because of the financial crisis.
The European Parliament as well as each of the European Union's 27 member states must approve the bill before it becomes law.
At issue is how the bloc will widen a cap-and-trade emissions program and encourage the use of technologies to capture and store carbon dioxide from coal-fired power plants.
The committee voted to offer the equivalent of US$13.6 billion in credits to fund carbon capture projects.
It also recommends fines of $136 a ton be levied against countries that fail to adhere to mandated carbon dioxide emissions cuts.
But EU governments are facing increased pressure from business owners, who say the current plan will cost billions to implement.
Whatever legislation is approved will form the basis of future negotiations between EU governments and the EU assembly on cutting 20 per cent of carbon dioxide emissions in the bloc by 2020.
France, which holds the EU presidency, wants to get the bill approved before the end of the year.
The EU's cap-and-trade program could impose $69 billion a year in fees on major polluters such as coal-burning electricity generators, steel makers and cement producers.
They would have to buy permits to emit carbon dioxide – and could sell those they don't use if they release less CO2. The total cost is unclear, because there has been no decision yet on how many permits will need to be purchased. Most existing permits are given away by EU governments.
Businesses claim the extra licensing costs could drive them out of Europe.
