A MOVE by the European Union to aim to cut greenhouse gas emissions by significantly more than 20 per cent by 2020 was feasible, beneficial and much cheaper than previously thought, according to a study published yesterday by the European Commission.
Until now, there had been fears Europe’s competitiveness would be undermined if the EU adopted a more ambitious target when other major economies such as the US, Japan and China were not prepared to make similarly large cuts.
The long-awaited “staff working paper” analysing options to increase the commitment to 25 or even 30 per cent shows implementing the existing pledge “will cost considerably less than originally envisaged” when it was adopted as binding policy in 2008.
“The fact that the 20 per cent emissions reduction target is now less costly in monetary terms than was assumed in 2008 means that the 30 per cent reduction scenario has become considerably less costly too,” according to the paper, released in Brussels.
It estimated the cost of achieving a 25 per cent reduction in emissions by domestic actions between now and 2020 would amount to €70 billion in terms of net direct impact on energy consumers, compared to €48 billion for the current package.
“This figure of around €70 billion . . . does not take into account the indirect economic benefits of accelerated technology innovations, increased energy security or reduced air pollution” that would be brought about by adopting the higher target.
“For the EU as a whole, moving to a 25 per cent domestic reduction in 2020 would save an average of €20 billion in fuel costs each year over the period 2016-2020 . . . Of this, by 2020, €9 billion comes from reduced oil and gas imports.”
The higher target would require additional investment in the energy system of €18 billion annually over the period 2016 to 2020, mainly in the electricity grid, power plants and in energy efficiency, most notably in buildings and the transport sector, it says.
Together with cuts of 25 per cent from domestic actions by EU member states, it says this could be increased to 30 per cent by gaining carbon credits internationally for funding “clean development” projects in developing countries.
The paper also says the proposed reform of the Common Agricultural Policy by “greening” direct payments to farmers and including climate action as one of its objectives “will further reduce greenhouse gas emissions from agriculture”.
Climate Action Network Europe said the findings “remove any doubt about the benefits of stronger European-wide climate action” as higher targets “will benefit the EU’s citizens and economy, as well as poorer countries already experiencing the effects of climate change. “This study is important because it offers member states a way to ensure greater stability and resilience against oil-price and supply fluctuations, which in turn will create stronger economies and a healthier environment in all of Europe,” it said.
