Brussels accused of ignoring social concerns in climate bill

LUCIA KUBOSOVA

15.01.2008 @ 17:10 CET

EUOBSERVER / BRUSSELS - Trade unions have urged the European Commission to delay its keenly awaited climate change package rather than introduce it without measures designed to soften its "social impact."

John Monks, the secretary general of European Trade Union Confederation (ETUC), told journalists on Tuesday (15 January) that the commission's current draft of proposals on reaching energy targets and curbing CO2 emissions, to be unveiled on 23 January, is "unacceptable."

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The legislation will lay out concrete measures on how the bloc will cut carbon dioxide emissions by 20 percent below 1990 levels and boost the use of renewable energy by the same amount, both by 2020 – targets agreed by EU leaders in March last year.

"We are not against the climate change targets," Mr Monks said, adding: "we believe in targets but we must take into account the social impact of the proposed policy shift and deal with it."

He said that while the EU executive did listen to trade unions' concerns, it did not tackle them in the draft legislation.

The commission's proposals are expected to primarily affect energy intensive industries such as steel, chemicals, fertiliser, cement, aluminium, and pulp and paper businesses.

These industries are expected to have to raise their prices under the more stringent green rules, weakening their position against competitors from other economic superpowers such as the US or China.

The ETUC is lobbying for a "European low-carbon economy adjustment fund" to help workers affected by job losses, as well as a carbon levy on imports to protect Europe's heavy industry from competition from abroad.

Social compensation to workers from the adjustment fund as well as costs for boosting energy efficiency for poor households could be partially covered by resources from the auctioning of emission permits, say the trade unions.

Under a draft plan, the bloc's revised Emissions Trading System (ETS) – a system allowing industry to buy and sell pollution credits - would put to auction at least two-thirds of the total quantity of emission allowances in 2013. Currently it is less than ten percent.

Carbon tax in and out

Earlier this month, media reports indicated that Brussels intended to oblige firms from heavily polluting countries outside Europe to buy EU carbon emission permits.

But according to the ETUC, the idea of carbon tax has been "relegated in the [latest] commission's documents to the rank of a mere option, which could be decided in 2011 after a review of the situation."

"We know we'll be accused of protectionism," said Mr Monks, but added that it would be a "lose-lose" situation if the EU's climate change policy led to a relocation of companies to "dirtier" countries.

For its part, the European Commission refuses to comment on the early versions of the climate change proposals but its spokeswoman confirmed on Tuesday that the controversial package is still planned for 23 January.

Opposition by EU's heavyweights

Meanwhile, some major EU countries are joining forces against Brussels' blueprint.

In a letter to commission president Jose Manuel Barroso, French leader Nicolas Sarkozy said that some of the pending proposals are "neither efficient, fair nor economically sustainable" for France, the Financial Times reported.

"European constraints would push industry to shift production to these countries [without similar carbon reduction obligations]. Global emissions would not fall and jobs would disappear from Europe," maintained Mr Sarkozy.

French officials have reportedly also consulted their German counterparts on how to react.