September 2002

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MEPs bid to frame future of EU climate policy
Environment Daily 1294, 25/09/02
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MEPs today presented their manifesto for future EU-level policies to
curb greenhouse gas emissions. In a resolution adopted in Strasbourg,
the European parliament broadly endorses a climate change programme
drafted for the bloc by the European Commission last year (ED 23/10/01
http://www.environmentdaily.com/articles/index.cfm?action=article&ref=10871).
It demands speedier implementation of measures already floated but
contains few new proposals for action.

The most important thing now is for the Commission and member states
to fulfil the programme," rapporteur MEP Anneli Hulthén told
Environment Daily after the resolution was adopted by the parliament's
plenary session. The Commission had only acted on 12 of 42 possible
policy actions so far, she said.

Much concern centres on energy policy. MEPs want binding objectives
to be inserted into the new combined heat and power directive, as well
as early draft legislation on minimum energy efficiency standards for
appliances and energy demand management.

They also want the Commission to "force the pace" of national climate
strategies by using the integrated pollution prevention and control
directive to improve industrial efficiency. Climate campaigner Giulio
Volpi of WWF said the parliament had given the Commission "a wake-up
call on the urgent need for energy saving".

The parliament called for a directive on biofuel-based heat production
to go alongside similar draft EU laws to promote biofuels in transport.
This should cover forestry and agricultural fuels as well as energy
from sorted industrial waste, it said. Mr Volpi was "not happy to see
waste there", but said it was an advance on the definition of biomass
in the EU's renewables directive, which allows unsorted waste
incineration.

Action on transport should also be beefed up, the parliament said.
The voluntary agreement with carmakers to reduce carbon dioxide
emissions should be revised and extended to other vehicle types,
including heavy-duty vehicles. Moreover, it was "highly regrettable"
that more effort was not going into agricultural greenhouse gas
emissions, the MEPs concluded.

Follow-up: European parliament resolution
http://www2.europarl.eu.int/omk/sipade2?PUBREF=-//EP//NONSGML+REPORT+A5-2002-0237+0+DOC+WORD+V0//EN&L=EN&LEVEL=3&NAV=S&LSTDOC=Y.

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More doubt cast over Kyoto emission targets
Environment Daily 1292, 23/09/02
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OECD countries will collectively fail to reduce carbon dioxide (CO2)
emissions in line with targets in the Kyoto protocol even if all
emission reduction policies currently under consideration are
implemented, the International energy agency (IEA) has warned in its
latest World energy outlook report.

Even with all such policies enacted, IEA concludes, OECD aggregate
emissions would merely stabilise towards 2030. The Kyoto protocol, in
contrast, requires industrialised countries to achieve a 5.2%
contraction in all greenhouse gas emissions from 1990 levels by
2008-12.

"If governments wish to achieve larger or faster savings in energy or
CO2 emissions, they will need to take stronger measures to shape
long-term energy and environmental outcomes," the report warns.

Under currently envisaged policies the IEA sees the biggest reduction
opportunity for CO2 emissions in power generation because of the growth
of the renewables sector and reduced electricity demand through greater
efficiency. Reductions beyond a reference scenario assuming only
policies already adopted by mid-2002, would be greatest in the EU (19%
by 2030), followed by Japan, Australia and New Zealand (15%).

Under the reference scenario global primary energy demand is projected
to increase by 1.7% a year until 2030 - slightly down from the 2.1%
annual increase over the last three decades. The document repeats the
prediction made in its predecessor published in 2000 that developing
countries will account for two-thirds of the increase in demand (ED
21/11/00
http://www.environmentdaily.com/articles/index.cfm?action=article&ref=8792).

Follow-up: 2002 World energy
outlook highlights http://www.iea.org/newsroom/weo2002_highlights.pdf.

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Campaigners hail "landmark" procurement ruling
Environment Daily 1288, 17/09/02
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Environmental campaigners have hailed a European court decision
supporting Helsinki city authority's purchase of a fleet of
low-pollution buses as a "landmark" development in their efforts to
green EU public procurement law. A coalition of 13 groups is now
calling for a rewrite of draft new procurement rules to take account of
the judgement.

In a ruling delivered today, the court said that Helsinki was
justified under EU law when it included the buses' emission profile in
the criteria determining its choice from a range offered by prospective
contractors. EU legislation states that authorities must accept the
"economically most advantageous" tender, often taken to be the
cheapest.

"This decision supports our call that when authorities spend
taxpayers' money, the economic benefit must reflect the wider public
interest and not just that of the contracting authority alone," the
Coalition for green and social procurement said today. Beatrix
Richards of WWF told Environment Daily the decision would resonate
beyond Finland and have "very important impact on the future
interpretation of the directive".

Internal market ministers are due to finalise their position on a
revision of procurement law later this year. The campaigners say that,
in a bid to squeeze out the scope for corruption in public procurement,
they could make it even more difficult to include environmental and
social considerations in contracts (ED 24/05/02
http://www.environmentdaily.com/articles/index.cfm?action=article&ref=12211).

British rapporteur MEP Stephen Hughes also welcomed the court's
ruling, saying it "confirmed the validity" of the European parliament's
approach to the laws.

The case was referred to the court of justice after the firm that
finished second in the competition to supply the buses complained that
the city's move was unfair and discriminatory. It claimed only one
company - offering buses running on natural gas - was able to fulfil
the environmental criteria.

The court rejected this line, but added that there were conditions on
the way environmental criteria could be applied. They must be
"connected to the subject matter of the contract", must not give
"unrestricted freedom of choice" of tender, and must be explicitly
mentioned in tender notices. The European Commission has previously
emphasised this last point as a way of introducing green requirements
into contracts

Follow-up: European Court of Justice judgement in case C-513/99
http://www.curia.eu.int/jurisp/cgi-bin/form.pl?lang=en&Submit=Submit&docrequire=alldocs&numaff=c-513/99;
.

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Cost of EU electricity disclosure "negligible"
Environment Daily 1283, 10/09/02
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Making electricity supply companies detail energy sources and
environmental impacts on their bills would cost less than half a euro
per household per year, according to the first phase of an EU-funded
project to investigate ways of greening power supply.

Green MEP Claude Turmes endorsed the findings today and pledged to
keep up pressure on governments to include the requirement in a new
draft electricity liberalisation directive. "We have to make it easy
for the consumer to understand the complex issue of the electricity
mix," said the MEP, who is rapporteur on the law.

The draft directive is currently passing through the EU legislative
mill. In March the parliament voted for full disclosure of energy
sources and associated impacts such as carbon dioxide and particulate
emissions, and nuclear waste generation. At the time, Europe's
electricity companies described the move as "extreme and onerous" (ED
14/03/02
http://www.environmentdaily.com/articles/index.cfm?action=article&ref=11782).

Ministers are expected to reach a common position by December. Mr
Turmes said the signs were they could adopt much vaguer requirements
that would leave each member state to implement its own disclosure
rules.

The project "Consumer choice and carbon consciousness for electricity"
is being funded through the EU's Altener programme. Christof Timpe,
co-author of a report on the first phase, said consumer electricity
labelling had been introduced in most of the USA at a cost of 3.5
dollar cents annually. Multiplying this by ten - to give a
conservative estimate for introducing the obligation in Europe - still
yielded a cost that was "nothing" compared to the price of the
electricity itself.

Follow-up: European parliament http://www.europarl.eu.int/
and the C4 project http://www.electricitylabels.com/.

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Commission proposes climate-linked road taxes
Environment Daily 1282, 09/09/02
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The EU should introduce a harmonised annual vehicle road taxation
system based on engine carbon dioxide emissions to help curb road
transport greenhouse gas emissions, the European Commission said today.
The proposal is the last of four measures intended to meet a long-term
EU target of reducing average new car emissions to 120 grams per
kilometre (g/km) by 2010.

In a new policy paper the Commission says it could table legislative
proposals following a consultation exercise. Officials were at pains to
point out that only the structure of road tax would be affected. The
amounts levied would remain a matter for national governments.

The Commission points to the example of the UK, the only EU member
state where annual road tax is linked to carbon dioxide (CO2)
emissions. Here, rates start at UK£100 (€159) for emissions below
150g/km and rise in stages to UK£155 (€246) for emissions above
185g/km.

The proposal complements an existing voluntary agreement with the car
industry under which emissions are supposed to fall to 140g/km by 2008.
It also builds on two existing laws on monitoring and labelling of car
CO2 emissions. If the 120g/km target is reached, overall car emissions
will drop slightly from 1995 levels in absolute terms, the Commission
estimates.

A study for the Commission by Danish consultants Cowi found that a
differential CO2 tax on car use was "essential" to produce significant
emission reductions. Putting up existing taxes would reap only small
emissions savings, it said. Moreover, meeting the 120g/km target would
unavoidably mean either a higher proportion of diesel cars or the
"downsizing" of vehicle sales.

The Commission is also proposing scrapping car registration taxes,
which it said were unfair on EU citizens moving from country to
country. And it urges member states to impose higher taxes on company
cars. These are bigger than the average car and therefore responsible
for a disproportionate amount of emissions, it says. Officials said the
proposals would not undermine a forthcoming Commission initiative on
transport infrastructure charging.

Follow-up: European Commission communication
http://europa.eu.int/eur-lex/en/com/cnc/2002/com2002_0431en01.pdf
(COM(2002) 431).

See also Cowi study
http://europa.eu.int/comm/taxation_customs/taxation/car_taxes/co2_cars_study_25-02-2002.pdf.

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Fuel consumption labels en route for Swiss cars
Environment Daily 1281, 06/09/02

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The Swiss parliament yesterday agreed that an ordinance requiring new
cars to carry a label classifying their fuel consumption on a scale of
A to G would enter into force on 1 October. Importers and car dealers
have until 1 January 2003 to start using the new classification, which
is already widely used on electrical appliances. . The scheme is
designed to support an agreement between Swiss government and car trade
to cut average fuel consumption by 3% per year until 2008. See press
release