March 2008
First Notes Of Discord In The Concert Of Europe
The EU's shibboleth of environmental protection and progress began looking somewhat tarnished this month following two set backs at the national and supranational level.
In its annual EU Environment related Indicators Assessment, the Directorate-General announced that in spite of good progress in certain areas, the EU was failing to meet a number of crucial environmental targets that it had set itself.
Of the 37 core indicators used to check progress on targets relating to agriculture, climate change, pollution, bio-diversity and resource management, the report noted that "in most areas there has been little improvement, with only one indicator showing positive progress towards reaching EU targets."
Amongst these, poor performances were scene in the field of freight transportation, increased generation from renewable sources, reducing particulate matter pollution in urban areas as well as unsustainable fishing and the loss of biodiversity.
And although the relatively recent accession states of Eastern Europe contribute much towards the backsliding of grades, they also represent examples of progress, with Romania demonstrating 1.6% growth in the use of renewable energy. More promisingly though, "air emissions", the lone indicator denoted as having a good performance, is set to meet its 2010 target as stated in the National Emissions Ceilings Directive.
Nonetheless, problems between EU leaders presented a further cause for concern as they came to the fore during a Brussels summit of member state leaders. Under intense pressure from German industry, Chancellor Angela Merkel succeeded in changing a proposed summit statement so as to detail how "energy-intensive industries" could be granted special treatment in the climate change deal.
Stating that she would be "standing up particularly for jobs in Germany’s car sector" and wanting to ensure "a fair set of rules", Mrs Merkel eventually secured the deal in a quid pro quo for Gordon Brown’s previously unpopular proposals to use VAT rates to encourage green consumption.
Head of the commission Jose Manuel Barroso brokered the deal was keen to maintain a united front, but warned that "the European Union would lose all credibility if one year after having given a strong signal, it was unable to meet its targets."
Referring to EU targets agreed one year ago with national leaders, the criticism directed towards Mrs Merkel did not go unnoticed, as it was Mrs Merkel herself, who as the environment minister, helped to negotiate Kyoto and championed EU target setting this time last year.
A senior figure in the commission commented that "Mrs Merkel was completely different from last year when she chaired the summit… this time she was the chancellor of German industry." And the Chancellor feels that it is a role that she has to take on. The medium and heavy industry sector still plays a significant role in Germany, Europe’s largest economy, and with car manufacturers facing hefty fines for failing to meet emissions targets, action was demanded by the heads of German industry.
In fact, there have already been warnings of "carbon leakage", the relocating of industry to outside of the EU so as to be able to operate in the US and Far East with lesser environmental constraints. This is something that European economies, in the face of a potential economic downturn, cannot afford.
Nevertheless, Mr Barroso re-emphasised his hope that international negotiations to ensure that the US, China and India would sign up to similar measures could still succeed. This would render moot the need for the Germans and their allies to call into effect the special regime for particular industries in Europe.
In the interim, the commission, who have to table the draft law by the end of the year, are purposely keeping tight lipped over the matter, as they believe that detailing exceptions would encourage negative thinking and make industry and governments abroad less likely to join in the fight against climate change.
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