Cooperation on energy security and climate protection

Challenges

Enhanced energy efficiency and the use of alternative sources of energy will enable us to reduce our consumption of fossil fuels such as coal, oil and gas. This will allow us to cut our emissions of harmful greenhouse gases as well as our dependence on energy imports.

Modern economies need both reliable energy supplies and sustainable long-term growth. The only way to achieve this is for partners to cooperate internationally to promote greater energy efficiency, a balanced energy mix and technological progress. We also need an intensive dialogue between supplier, transit and major consumer countries on how best to ensure uninterrupted supplies of fossil fuels.

EU policy

European and international consultation on these issues was one of the priorities of Germany's EU Presidency. During our Presidency the European Council accordingly adopted in March 2007 a European Energy Action Plan. EU Heads of State and Government also reaffirmed the goal of limiting global warming to a maximum of 2°.

Specifically, EU Member States have committed themselves by 2020

to cut greenhouse gas emissions by at least 20% over 1990 levels (30% if other industrialized countries make comparable commitments and emerging economies, too, make appropriate contributions),

• to achieve a 20% cut in projected energy consumption, and
• to achieve a 20% increase in the share of renewable energies in the energy mix.

EU energy policy is therefore designed to promote not only security of supply but also energy efficiency and environmental compatibility. By the same token, it sends a clear message to the energy markets encouraging investment in sustainable and innovative energy technologies.

EU Commission proposals

In January 2008 the European Commission presented a comprehensive climate and energy package, including:

1. a proposal on the implementation of the EU's climate protection targets up to 2020 and how efforts to meet them could be shared among Member States;
2. a proposal for amending the Emissions Trading Directive for the post-2012 period;
3.  a proposal for a Directive on renewable energy;
4.  a proposal for a Directive on carbon capture and storage.

These proposals are currently under discussion in Council working parties and the European Parliament.

With its climate and energy package the EU has presented, ahead of the start of negotiations on a post-2012 international climate protection agreement, detailed proposals on how it plans to meet its climate protection commitments up to 2020. Once again the EU has shown itself to be a world leader in protecting the environment.

In late October 2007 the International Carbon Action Partnership (ICAP) was launched in Lisbon. Federal Minister Steinmeier was one of those behind this new initiative, which aims to link the European emissions trading system with other such systems around the world.

• International Carbon Action Partnership established

G8 process 

At their Summit in Heiligendamm in June 2007 G8 Heads of State and Government agreed to consider seriously at least a halving of global CO2 emissions by 2050. They plan to pursue this common goal through a UN process in which major emerging economies should also participate.

In addition, countries are of course free to conclude supplementary agreements to help them achieve this goal. Hence the G8 agreed to support also new instruments for funding climate protection projects in developing countries. Germany, for example, plans to make available for this purpose part of the proceeds from auctioning emission allowances under the EU Emissions Trading Scheme.

Another achievement at Heiligendamm was the recognition by all G8 partners that further discussions on climate change should be based on the findings of the latest IPCC report. According to this report, there is a high probability that most of the global warming which has occurred since 1950 is human-induced. The higher the rise in average global temperatures, the graver the ecological and socio-economic consequences of climate change are likely to be.

The next G8 Summit is to be held in July 2008 in Toyako/Japan. There, too, climate issues will be high on the agenda.

What happens now?

The so-called Bali Road Map adopted by the United Nations Climate Change Conference in Bali in December 2007 sets out a timetable for the next round of negotiations on a new post-2012 climate protection agreement. It also defines the main areas to be addressed: reduction in greenhouse gas emissions, adaptation to climate change, technology cooperation and funding of climate protection activities. The negotiations are due to be concluded by the end of 2009.

Negotiations on the future obligations of industrialized countries under the Kyoto Protocol are to be conducted by a working group that will convene regularly up to the end of 2009. The aim is to agree on a so-called indicative reduction corridor (including a 25% – 40% cut in greenhouse gas emissions by 2020 over 1990 levels).

As with previous negotiations under the Kyoto Protocol, the Conference of the Parties to the UN Framework Convention on Climate Change has established a working group tasked with drawing up proposals on what all countries involved in the negotiating process could do to protect the climate. Developing countries should contribute, for example, by decoupling economic growth from energy consumption. To help them achieve this, the industrialized countries should make financial and technological support available.

The Conference of the Parties has also adopted a comprehensive programme to promote technology cooperation. The aim is to identify ways to improve such cooperation and in particular develop the potential of the carbon market.

Greenhouse gas emissions from deforestation – especially the destruction of tropical rainforests – account for 18% of global emissions. The Conference of the Parties has therefore agreed that the new regime should cover these emissions, too.