A draft of proposals being considered by EU heads of state and government, seen by Green MEPs, would have seriously negative implications for achieving the EU's emissions reduction targets.
EU leaders, meeting on the 11th and 12th December at a summit in Brussels, are considering proposals to drastically undermine the EU's climate package of legislation.
Commenting on the draft text, Green MEP Dr Caroline Lucas said:
"EU climate policy is in meltdown. The proposals currently on the table for consideration by EU leaders are really an exercise in poor law-making and represent the lowest possible common denominator.
"This dramatic retreat on the climate package of legislation could not come at a worse time: with UN climate talks currently underway in Poznan, the eyes of the world are on the EU. The EU's credibility as a leading actor on climate change is in freefall. It's not too late for heads of state and government to intervene and save face.
"The only good news from the summit is that the agreement on renewables will not be reopened by heads of state. Greens are proud to have at least secured this legislation which will put renewables at the heart of EU energy policy and make them the number one energy source for the 21st century, bringing the EU two million jobs and a huge export industry."
"The proposals on ETS currently being considered risk creating a monster. Allocating such a large proportion of emissions permits for free, as the summit is contemplating, would turn the ETS into a windfall profit machine for Europe's most polluting industries. Instead of learning from the lessons of the first phases of the ETS, EU leaders seem intent on repeating them - creating laws that would subsidise these industries and delay our transition to a cleaner more sustainable economy.
"Based on the current drafts, outmoded power sectors could potentially get exemptions from the auctioning of permits throughout the term of the scheme until 2020. Nearly all the remaining industry sectors would also get all their emissions permits for free under the cover of so-called ‘carbon leakage'. The criteria proposed would ensure that 96% of the remaining emissions under the ETS would be considered to be exposed to carbon leakage - in most cases despite overwhelming evidence to the contrary - and therefore eligible for free allocation."
Proposed ‘effort sharing' legislation on emissions reductions from other sectors (covering 55% of emissions and including transport, agriculture and domestic heating and cooling) is also being drastically weakened.
Dr Lucas concluded: "The proposals on the table make a mockery of the EU's hitherto proclaimed leadership on climate change. EU governments are proposing to outsource the vast majority of their emissions reduction effort through external offsetting - close to 80% of the reduction targets could be offset. This is completely inconsistent with the scientific recommendations for delivering emissions reductions within developing countries.
"Outsourcing our emissions reductions is not just scientifically unsound, it is ethically wrong. It means the EU could cherry pick the cheapest climate mitigation potential in developing countries in order to prolong our own unsustainable model. This neo-colonial approach to climate policy completely undermines the EU's credibility in international climate negotiations. EU leaders must rectify this before it's too late."