Discussion Paper

Drawing from the recent work of GLOBE International, the Road To Copenhagen Project andthe European Parliament

on climate change, together with recommendations submitted bystakeholders such as WWF, McKinsey, the European Climate Foundation, the e-Parliamentand German utility RWE, the GLOBE Europe Board puts forward the present discussion paper to stimulate our debate next 30

April. This document is not agreed within the GLOBE Europe board and will subsequently be changed and enriched with the eventual contributions of our National Focal Points and serve as the basis for further discussion in the national legislaturesof the European region.

The deadline for submission of comments is 31

July 2009.

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1. Review of the EU targets after an international agreement in Copenhagen2. Implementation of the CARE Package3. Earmarking auctioning revenues for mitigation and adaptation in developingcountries and other purposes4.“Green New Deal” Initiatives5. Energy efficiency6. The “Supergrid”7. Electro-mobility1. Review of the EU targets after an international agreement in Copenhagen

The agreement on the Climate and Energy Package in December 2008 (including theEmission Trading System and the Effort-Sharing Decision) has been an important step forwardin the fight against climate change. However, in light of the latest scientific evidence, the 20%reduction level of the CARE Package is inconsistent scientifically with the EU’s own goal of keeping global average temperature increase below 2°C. It is also far lower than the 25-40%reduction range by 2020 for industrialised countries, supported by the EU in Bali.In particular, the 2020 GHG-reduction target of -20% is insufficient and must be replaced by atarget of at least -30% after the Copenhagen Summit. Therefore it is essential that the weaker 1

Particularly: the EP report on the Commission Communication

Building a Global Climate Change Alliance betweenthe European Union and poor developing countries most vulnerable to climate change

adopted on 21 October 2008;the EP report

2050: The future begins today - Recommendations for the EU's future integrated policy on climatechange

of the Temporary Committee on Climate Change, adopted on 4 February 2009; and the Resolution of theEuropean Parliament on the Commission Communication

Towards a comprehensive climate change agreement inCopenhagen

adopted on 11 March 2009.

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aspects of the agreement are strengthened in its implementation and complemented by bold parallel efforts.

2. Implementation of the CARE Package

Consequently, the next European Parliament and the EU national parliaments must thereforeensure an implementation of the CARE Package in the first place according to the intentionsand agreements of the European Council. This includes stringent regulations on carbonleakage, benchmarking, auctioning regulation, etc. to be agreed in the Commitology procedure. An implicit deviation from the agreed legislation is unacceptable.

3. Earmarking auctioning revenues for mitigation and adaptation in developingcountries and other purposes

There is a massive and often relatively low-cost GHG-abatement potential in developingcountries, which humanity as a whole will have to use, and use fairly, to stay below 2°C. Todeliver these mitigation actions, developed countries must transfer sufficient resources todeveloping countries. An ambitious share of the auctioning revenue should therefore bereserved for supporting mitigation and adaptation in developing countries. The rest of theauctioning revenues need to be earmarked for climate purposes, e.g. to support energyefficiency, innovative technologies and the development and deployment of renewableenergies.In this context, the EU should commit itself to a binding quantified target for mitigationsupport in developing countries as part of an international agreement. This should be anadditional quantified target to the 2020 30% emission reduction commitment. Such a “globalsupport target” can be legally implemented as an amendment to the effort sharing and/or EUETS legislation.

4. “Green New Deal” Initiatives

Europe needs economic recovery policies that positions us well for the strategic challenges of the future. We must both stimulate and build new markets and industries and meet thechallenge of energy security and climate change. Policies and economic measures are requiredfor a smart recovery that positions economies well for the path to low carbon prosperity asthey come out of recession.Best are measures that meet the short term need to stimulate the economy and also provide aneffective basis for long term policies and meeting long term targets. Most of these measures – as set out below - are especially job-intensive and will therefore help to create jobs with goodfuture perspectives. Smart recovery must be low-carbon because this will help economies build resilience to volatile fossil fuel prices, build new industries and markets of the future aswell as reduce the costs incurred by delaying action on climate change.-2-

In particular, if further recovery measures are taken, they should focus on:

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A large scale-up of energy efficiency and building sector retrofits through direct governmentinvestments and loans to house owners as well as small and medium-sized businesses. Thiswill provide jobs and opportunities in sectors such as construction, which have been particularly hard hit by the economic downturn.

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Renewables require liquidity measures to mobilize private sector investment on a large scalerapidly. Green infrastructure banks, loan guarantees and green bonds could perform this urgenttask of helping renewables over a liquidity hump.

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Upgrading physical infrastructure, such as investment in electricity grid upgrades andextensions (e.g. a Supergrid). This is especially important for large-scale renewabledeployment. In particular, interconnectors and regional networks must be rapidly developed togive markets confidence that the infrastructure will be there when large scale renewablecapacities are built.

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Infrastructure investments must be targeted towards low-carbon transport where possible.

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Supporting clean technology markets by financing of clean-technology projects by providing and expanding feed-in tariffs, renewable portfolio standards, guarantees and loans.

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A review of national procurement guidelines with the aim of going carbon neutral.

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Initiation of flagship projects, such as the Supergrid.

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Significant increase in the spending on Research and Development (R&D) related to energyefficiency, electro-mobility, renewables and CCS.

The EU Economic Recovery Plan

As part of the implementation of the EU recovery plan endorsed by the European Council inDecember 2008, last 28 January the European Commission proposed to reallocate €5 billion of unspent EU money, mostly to support CCS projects, offshore wind farms and the deploymentof broadband Internet connections in rural areas.Under the Commission plans, a total of €3.5 billion would be devoted to clean energy projects.The investment in CCS projects proposed by the European Commission is justified due to itsglobal importance as a technology that developing countries will also need to adopt if the fightagainst climate change is to be effective. However, GLOBE Europe supports the EuropeanParliament's proposal to redirect unspent funds by September 2010 to renewables and energyefficiency, which can be employed immediately, can create millions of jobs and must be thelong-term solution to climate change.-3-