EU leaders commit to greenhouse gas emission reductions

The agreement was made at the EU summit in Brussels, and means that member states must reduce their emissions by 20% based on 1990 levels.

The agreement also commits EU members to increasing this target to 30% within the framework of an international climate agreement.

Ed Miliband, energy and climate change secretary, said of the move: “The rest of the world has been watching, and Europe has delivered a credible and ambitious climate package. It sends a signal that, even in the most challenging of economic times, it’s possible to take bold far-sighted action to slash emissions.

“We’ll see a massive increase in renewable energy and pressure from the UK has secured billions in funding for vital carbon capture and storage demonstration plants. Combined with a new spirit of engagement from the United States, there is now everything to play for as we put the pieces in place for a global climate deal in Copenhagen next December.”

What EU leaders have agreed:

• Commitment to a 20% reduction of greenhouse gas emissions from 1990 levels, rising to 30% if a global deal is reached.
• European wide commitment to 20% of all energy to come from renewable sources by 2020
• Across the package, most of the 20% reduction will be delivered domestically due to reductions as a result of the renewables targets, energy efficiency targets and the ETS. Access to international carbon credits to be limited in the ETS to ensure that at least half of the reductions required take place within the EU, whilst allowing flexibility to invest in low carbon projects across the globe.
• The centrally set cap on the EU Emissions Trading System (EU ETS) will deliver emissions 21% below 2005 levels by 2020.
• At least 60% of EU ETS allowances to be auctioned by 2020. In Phase II only around 3% of allowances are being auctioned.
• Use of 300million EU ETS allowances, worth billions of pounds, to part-fund up to 12 Carbon Capture and Storage Demonstration plants.
• A commitment to use half of all auctioning revenues to tackle climate change, within the EU and internationally. This will help create opportunities in developing clean technology and set us on the path to a low carbon economy.
• Agreement of effort sharing in sectors not covered by the EU ETS. In the UK this would equate to a 16% reduction from 2005 levels by 2020.
• There will also be a binding annual trajectory towards 2020 targets to ensure continuous effort.