The European Climate Change Programme

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The European Climate Change Programme
Seminar of Governmental Experts, 16-17 May 2005,
Bonn A presentation on behalf of the EU
Artur Runge-Metzger European Commission
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The EUs Challenge EU-15 projected progress
towards Kyoto Commitments
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The EUs Response European Climate Change
Programme (ECCP)

• Objective
• Identify and develop cost effective elements of
  EC strategy to meet the EUs Kyoto target in
  cooperation with stakeholders
• Major Milestones
• Launch March 2000 October 2001 EC commitment on
  concrete Action Plan supplementary to Member
  States efforts
• 2004 new legislation largely put in place, wide
  policy mix
• New phase in 2005 (e.g. review, energy
  efficiency, aviation, CCS, adaptation)
• Major Achievements
• EU Measures currently in implementation
  potential of 350-430 Mt CO2eq./year (equals Kyoto
  target for EU-15)

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EU Emissions Trading operational since 1st
January 2005

• a new, market based instrument, covering close to
  50 of EU-25 CO2 emissions the largest ever
  implemented
• taps on the market dynamics and innovation
  capacity of the industrial sectors, reduces Kyoto
  compliance cost
• covers major energy intensive industries, in
  total 12000 installations
• approximately 2 billion allowances per year
  (2005-2007) ? total value of allowances 32
  billion at current prices
• linking with JI/CDM direct access of credits to
  EU ETS
• linking with other domestic schemes enabled
  through current regulatory framework

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EU Emissions Trading Price Traded Volumes in
the EU ETS
Source Point Carbon's Carbon Market Daily
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More information on EU climate change policy
http//europa.eu.int/comm/environment/climat/home_
en.htm