THE EU LOW CARBON EMISSION VISION IS NO MORE THAN A POLITICAL DESIDERATUM

EU-15 has achieved the Kyoto Protocol greenhouse-gas emission reduction target committed for the period 2008-2012 . Target was an  8% reduction -taking as a reference year 1990- and achieved reduction attained 10%.

Energy sector is responsible for 40% of total emissions in EU, followed by the Transportation sector with 29% and the Industry with 26%.

The emission trading system, based in "cap and trade" principle, that was the most important driver created by european policy makers in order to reduce greenhouse-gas emissions in Europe has ceased to be effective.

The "cap" principle fix the total emission allowances. For the complete sectors covered by the EU ETS the limit fixed for 2020 is 21% lower than in 2005. The "trade" principle, permit companies to trade carbon emission allowances, selling and buying emission rights. Another mechanism is to obtain  international carbon credits executing emission-saving projects around the world.

Fact is that carbon emission financial value is totally depressed. From a value of 25 €/tonne of emission in 2008 , today's quotation is at 3 €/tonne. Under such circumstances there is no motivation to move from burning carbon to natural gas in Coal Fired Power Plants. It is estimated that the financial value of the emission right per tonne should be over 30 € to drive environmental change.

In the EU stagnant economic scenario, the only way to increase emission rights price is to reduce the "cap". The European Parliament rejected in April 2013 the Carbon Plan presented by the European Comission consisting in cutting the number of pollution permits. Policy makers, from now on will have to take into account competitiveness and costs when proposing measures that affect the economy and the employment in Europe.

We expect during June the publication of the announced by Mr. Tajani's Action Plan for the European Steel Industry. It will be an indication about EU comission Industry Vision. 

We should continue asking for more realistic, social and economical substainable plans from the European Officials. Europe needs to compete in a global economy context without loosing our leadership in social  and environmental concerns. A difficult equilibrium in actual hard times that requires the combination of Disruptive Visions with Pragmatic Policies.