Tuesday

17th Oct 2017

EU in talks on more international emission deals

  • The EU is in talks with South Korea, China, Switzerland and California (Photo: DerGuy82)

The EU is pressing ahead with talks on further bi-lateral carbon emissions agreements with a deal with Australia just announced.

Isaac Valero-Ladron, spokesperson for EU Climate Action Commissioner Connie Hedegaard, said that talks on new bi-lateral deals on emissions trading were "underway with South Korea, China, Switzerland and California".

Thank you for reading EUobserver!

Subscribe now for a 30 day free trial.

  1. €150 per year
  2. or €15 per month
  3. Cancel anytime

EUobserver is an independent, not-for-profit news organization that publishes daily news reports, analysis, and investigations from Brussels and the EU member states. We are an indispensable news source for anyone who wants to know what is going on in the EU.

We are mainly funded by advertising and subscription revenues. As advertising revenues are falling fast, we depend on subscription revenues to support our journalism.

For group, corporate or student subscriptions, please contact us. See also our full Terms of Use.

If you already have an account click here to login.

The admission follows the announcement Tuesday (28 August) by Commissioner Hedegaard and Australian Climate Change minister Greg Combet of a bi-lateral deal that would create the world's largest emissions trading market if ratified.

Under the deal, Australia, which at 27 tonnes per person is among the world's biggest carbon polluters per capita, will scrap its AUS $15 floor price (€12.5) intended for 2015, replacing it with EU prices which are currently being traded at between €8 and €9 per tonne.

Australian businesses would have one-way access to EU carbon allowances to meet 50 percent of their carbon liabilities until 2018. Provided that agreement can be reached, the two markets would then be fully integrated from July 2018 allowing European and Australian firms to use up to 100 percent of each other's allowance.

Hedegaard welcomed the deal as "the first full-intercontinental linking of emission trading system" adding that it would be "further evidence of strong international co-operation on climate change."

The Commission is now seeking the backing of member states and MEPs to agree a formal trade treaty with Australia with a deadline of mid-2015. "We don't see why someone would be against more business opportunities for European companies in the carbon market, said Valero-Ladron.

The passage of the treaty is likely to be tougher in Australia. With Labour Prime Minister Julia Gillard reliant on three Independent MPs for her parliamentary majority, the deal could face a difficult path in the federal parliament.

The deal has already come under attack from Tony Abbott, the leader of Australia's opposition Liberal party. Abbott, whose party opposed the Australian emissions trading scheme established in 2011 by the Labor government's Clean Energy Act, told reporters that brokering the deal was "wrong-headed" adding that "our traders...our competitors are not introducing this tax."

Although Gillard's government has a parliament mandate to negotiate with the EU, the country's next federal elections are due in November 2013. With current opinion polls indicating victory for Abbott's Liberal/National coalition, the deal could yet be sunk before it starts.

The EU Emissions Trading Scheme was launched in 2005 and will enter its 'Phase III' from January, which for the first time will involve an overall EU cap. If met, this would see a reduction in carbon emissions of almost 10 percent.

Poland to veto EU low carbon plan

Polish environment minister Marcin Korolec has said he will veto an EU proposal for CO2 cuts at a meeting in Brussels on Friday.

EU upbeat on 2020 carbon targets

The EU predicts it will meet its 2020 targets to reduce carbon emissions and increase use of renewable energy, despite backsliding by some countries.

Investigation

VW diesel repairs could take until 2019

German car company has fixed 5.4 million of the 8.5 million European diesel cars that were equipped with emissions-cheating software. Some consumers have decided to shun Volkswagen Group forever.

Stakeholders' Highlights

  1. International Partnership for Human RightsEU Should Seek Concrete Commitments From Azerbaijan at Human Rights Dialogue
  2. European Jewish CongressEJC Calls for New Austrian Government to Exclude Extremist Freedom Party
  3. CES - Silicones EuropeIn Healthcare, Silicones Are the Frontrunner. And That's a Good Thing!
  4. EU2017EEEuropean Space Week 2017 in Tallinn from November 3-9. Register Now!
  5. European Entrepreneurs CEA-PMEMobiliseSME Exchange Programme Open Doors for 400 Companies Across Europe
  6. CECEE-Privacy Regulation – Hands off M2M Communication!
  7. ILGA-EuropeHealth4LGBTI: Reducing Health Inequalities Experienced by LGBTI People
  8. EU2017EEEHealth: A Tool for More Equal Health
  9. Mission of China to the EUChina-EU Tourism a Key Driver for Job Creation and Enhanced Competitiveness
  10. CECENon-Harmonised Homologation of Mobile Machinery Costs € 90 Million per Year
  11. ILGA-EuropeMass Detention of Azeri LGBTI People - the LGBTI Community Urgently Needs Your Support
  12. European Free AllianceCatalans Have Won the Right to Have an Independent State

Latest News

  1. Malta shocked after car bomb kills crusading journalist
  2. Spanish and Catalan leaders continue stand-off
  3. May pleads for more as EU makes Brexit gesture
  4. EU united in backing Iran deal, after Trump criticisms
  5. 'Think of the patients!' cry warring EMA-host cities
  6. In Iceland: Europe woos Arctic allies
  7. Austrian voters reject liberal pro-EU status quo
  8. Turkey urges EU not to break off ties