French, German and UK environment ministers personally support 30% CO2 cut

In a personal letter addressed to the Financial Times (15 July 2010), French, German and UK environment ministers have urged the EU to agree to cut carbon dioxide emissions by 30% by 2020. In the joint open letter, the three ministers argue that unless the economic recovery sets countries on a path to a sustainable low-carbon future, the future will continue to be uncertain, with significant costs from energy price volatility and a destabilising climate.

A key barrier, they claim, is the EU’s current emissions target, a 20% reduction from 1990 levels by 2020, which is insufficient to drive the low-carbon transition. “If we stick to a 20% cut, Europe is likely to lose the race to compete in the low-carbon world to countries such as China, Japan or the US – all of whom are looking to create a more attractive investment environment by introducing low carbon policy frameworks and channelling their stimulus packages into low-carbon investment,” say the ministers.

They argue that a 30% target is needed to reinforce economic recovery, improve energy security and help to tackle climate change through the development of decarbonised energy sectors. By moving to a higher target, the EU would not only have a direct impact on the carbon price through to 2020 but also send a strong signal of its commitment to a low carbon policy framework in the longer term. “We must not forget that it will be overwhelmingly the private sector that will deliver the investment which will build our low-carbon future and moving to 30% will provide greater certainty and predictability for investors,” says the letter.

The ministers add that they recognise that some energy-intensive sectors will be exposed to greater costs than the average. The real threat they face, though, is not carbon prices, but collapsing demand in the European construction and infrastructure markets. “The one sure way to increase demand for the materials that these sectors produce is to put in place the incentives to boost investment in large-scale low-carbon infrastructure – voracious users of steel, cement, aluminium and chemicals,” they claim.

This is a personal opinion of the Environmental Ministers which, it must be stressed, is not government policy in those Member States concerned.

CEMBUREAU is strongly opposed to a 30% cut as the conditions for a unilateral move by the EU from a minus 20% to a minus 30% reduction target are not yet met.

A UK press release of the letter can be found here:

http://www.decc.gov.uk/en/content/cms/news/EU_CC_article/EU_CC_article.aspx