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European Parliament approves environmental measures that will damage economic growth

The EU has decided to give the planned economy another chance. Bureaucrats in a room in Brussels wish to decide how much carbon the European economy can produce. They then plan to sell pollution permits to producers. I seem to remember a few other countries tried this approach to the economy. I don’t remember it being a success. This measure will lead to a massive increase in electricity bills for families struggling to survive the credit crunch. It will also drive European firms out of business causing unnecessary job cuts. The European Emissions Trading Scheme needs to be put out of its misery now.

The EU is to cap the amount of carbon that can be emitted. The EU Parliament’s Environmental Committee backs plans for a 20 per cent cut in emissions by 2020 (on 1990 levels). Their plan aims to ensure 20 per cent of Europe’s energy needs are generated from renewable by 2020. Carbon permits will be created and auctioned from 2013 onwards. A proportion will remain but this will decline each year until 100 per cent of the permits are auctioned. This plan will impose massive costs on EU producers. The effect will be to endanger European firm’s ability to compete with third world producers. In some sectors jobs could be exported to less efficient third world producers whose costs are now lower than European companies. Europe could lose jobs for no environmental gain.

Some of the biggest polluters are those companies which produce our power. These companies are unlikely to absorb the costs in full themselves. Instead consumers can expect higher electricity prices to be charged. Thereby, when the EU Environmental Council Meeting occurs between the 20^th and 22^nd of October 2008, we must hope the members do not vote to increase electricity bills and force more Europeans out of work. We must hope a solution is found to deal with climate change in a sensible and constructive manner. 

Poland leads charge against EU Emissions Trading Scheme

European politicians are being distracted from the battle against climate change by national interests and the need to save our European economy from collapse. Governments across Eastern Europe are concerned at having to rely on Russian gas imports after Russia’s aggression in Georgia. European taxpayers are worried about keeping their jobs and maintaining their standard of living. The heating up of the planet is, for the moment, off the political agenda. Consequently, politicians across Europe are seeking to water down their commitment, under the EU emissions trading scheme, to cut emissions levels by 20 per cent (from the levels that prevailed in 1990) by 2020.

Six EU member states have signed a declaration warning that the EU emissions target will cause a “significant increase” in Europe's reliance on imported gas. Poland, Slovakia, Hungary, Romania, Bulgaria and Greece have all witnessed Russia use the energy weapon against the Ukraine. Russia has increased gas prices massively, for her former colony, in order to apply political pressure. The signatories of this declaration have taken note. They do not want to increase their dependence on Russian energy because this will give Russia greater political power over them. Consequently, Poland, soon to be home to America’s missile defensive shield and reliant on coal to produce 90 per cent of its electricity, is leading the case for a review of this target. A target agreed only eighteen months ago. It needs 91 of the 345 votes on the EU Council to delay the EU emissions trading scheme. The Polish Government say they have them. Thereby, it seems this regulation will not be introduced for some time.

EU consumers should welcome any legitimate measure which delays or defeats the implementation of the EU emissions trading scheme. Consumers are already struggling with rising prices without the EU applying more pressure by increasing power costs to facilitate a green conversion. Climate change may be a serious problem. Action to deal with it is warranted. However, European politicians should be aware that measures that increase the burden on hard working families will not be appreciated at this time. The security and prosperity of Europeans is, at the moment, more pressing to many of Europe’s citizens and her national politicians than the increase in the global temperature.