New numbers
May 26, 2010
While the global economy continues a slow and unsteady recovery, EU Climate Commissioner Connie Hedegaard has said the recession has dramatically decreased the cost of Europe meeting its goal of reducing greenhouse gas emissions by 20 percent by 2020.
The economic crisis means it would cost around 22 billion euros ($27 billion) a year less than the originally-forecast figure of 70 billion euros. The earlier estimate was made two years ago when the full scale of the recession was unknown.
Hedegaard added that the EU's revised figures mean it would only cost a little more than originally budgeted to meet a more ambitious goal.
A 30 percent target would now cost 81 billion euros per year, but the Climate Commissioner was careful not to call on EU members to rally behind that divisive target.
"The crisis has had a big impact in terms of cutting the costs of achieving the reduction targets. At the same time of course the crisis has put huge constraints on governments and businesses ability to invest," she said at a press conference in Brussels on Wednesday.
Unresolved split
Some Western members of the EU back the idea of pursuing a 30 percent target irrespective of what other countries in the world are doing. Others want the bloc to stick to its current position of only going to 30 percent if other rich nations make similar commitments.
Despite Hedegaard's cost-benefit analysis, a conflict-ridden United Nations Framework Convention on Climate Change and the worst recession in 80 years make drastic action unlikely.
Hedegaard has struggled to rally the enthusiasm of industry commissioner Antonio Tajani and energy commissioner Guenther Oettinger. European opponents of tighter emissions regulations include Hungary, Poland and Italy.
Hedegaard also said that the economic slump had kept the cost of carbon low and stifled innovation in clean energy alternatives. She warned that Europe was becoming a less attractive prospect than the US and China in terms of investment in renewable energies.
Author: gps/rtrs
Editor: Nathan Witkop