Yves Clarisse

Brussels risks sacrificing European jobs with its plans to cut industrial greenhouse gas emissions, the euro zone’s big two economies France and Germany said on Monday

BRUSSELS, Belgium; March 4, 2008.- Europe should lead by example but must not “change the competitiveness of our economy and our companies” by adopting tougher pollution measures than in other parts of the world,” said Herve Novelli, France’s junior minister for industry.

The European Commission announced proposals in January for curbing greenhouse gas emissions in the 27-country EU as part of the bloc’s strategy for fighting climate change after 2012.

EU countries hope to agree on the reform this year but the Commission wants to defer the question of special treatment for energy-intensive industries until 2010 or 2011, so it can see whether other countries have agreed to a global emissions deal.

Novelli told reporters at a meeting of EU industry ministers that “2011 is too far away”.

As well as France and Germany, Luxembourg, Finland, Austria, Hungary, the Czech Republic and other countries wrote to EU Industry Commissioner Guenter Verheugen to ask for swifter decisions on how the system will affect big energy consumers.

France wants the Commission to introduce what would serve as a “carbon tax” against imports from countries that do not agree to cut their greenhouse gas emissions.

Commission officials say such a system could be challenged at the World Trade Organisation and drawing one up now would undermine negotiations with developing countries about a successor to the Kyoto Protocol agreement on climate change.

Germany’s Deputy Economy Minister Bernd Pfaffenbach told reporters his country’s priority was to press for free carbon dioxide emissions rights for big power consumers.

European Commission President Jose Manuel Barroso has said that if there is no global solution, the EU would look at interim measures such as free emissions permits for energy-intensive industries.

Executives from energy-intensive industries in Europe, such as producers of steel, cement and chemicals, have warned that big investment decisions are being put on hold until the EU hammers out its plan for fighting climate change after 2012.

(Reuters)

 

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