The Council
held an in-depth discussion of the three draft legislative measures within
their competence, i.e. the
review of the EU greenhouse gas emission allowance trading system (EU
ETS); effort
sharing outside the EU ETS and the Directive
on the capture and storage of carbon.
The discussion
brought out the clear will to succeed in arriving at an agreement with the
European Parliament by the end of 2008 so that a first-reading could be
reached before the end of the current legislature.
The Council
intends to step up its discussions in close collaboration with the Commission
so that the EU may continue to have a leading role in combating climatic
change at international level. With this in mind, the Presidency instructed
the Permanent Representatives Committee to prepare the negotiations on the
package with the European Parliament without delay, in order to come to an agreement
at first reading.
Discussions
related principally to the following:
- measures
applicable to the energy sector within the EU ETS: discussions showed that an auctioning rate of 100 % in the
energy sector was accepted by most delegations. However some specific
situations might justify derogations of limited duration and extent, in
particular because of insufficient integration of the energy sector at
European level;
- pre-allocation
of the income from auctions: the discussion
showed that although some Member States thought that the use of the
income from auctions was a matter for national competence, voluntary
commitments could be given consideration;
- financing
capture and storage of CO2: the Council was
prepared to examine the possibilities of combining several options,
including national and Community financing, to supplement the
contribution of the private sector;
- the risk
of "carbon leakage" (i.e. relocation
of energy-intensive under takings outside the EU), and the measures to
be taken to protect both the environment and the competitiveness of
industry in Europe: the Council showed its determination to provide
clear answers to the problems which might arise from "carbon
leakage". In this connection, it examined the need to lay down
quantitative and qualitative criteria within appropriate periods of
time, and arrangements for the sectors which were the most exposed to
world competition.