European Union Climate and Energy Package - Debates

Debates

During the negotiations, some member states have expressed concerns about the increase in energy costs caused by the implementation of the package: the increase could be of 10% to 15% by 2020. Above all, several countries were concerned about the supposed consequences of the auctioning of all emissions of greenhouse gases on electricity prices, on the one hand, and above all on the competitiveness of the most polluting industrial companies.

Poland and most new member states, whose electricity relies mainly on coal, fear that this reform, increasing electricity prices, could undermine their economic growth and their energy security. They wanted to benefit from a derogation allowing a progressive switch to paying quotas, starting at 20% in 2013 to reach 100% in 2020. Poland and the Baltic States also claimed that the package would force them to develop their gas imports from Russia to reduce their GHG emissions, limiting their energy independence. The member states responded by proposing to improve the electrical interconnections of these countries with the European market. In late October, the Prime Ministers of Poland, Sweden, Finland, Estonia, Latvia and Lithuania agreed to establish a plan of energy interconnection.

On the other hand, member states disputed on how to avoid the outsourcings of the most polluting industries, subject to competition of rivals from countries with little involvement in the fight against global warming. Germany proposed the allocation of free emission quotas to the most vulnerable (especially steel industry) companies.