EU climate policy at risk because of TTIP Energy Proposal

Energy


EU TTIP Energy Proposal to be included in the eal with the US could reduce energy saving measures and a planned switch to clean energy, say MEPs.


European efforts to save energy and switch to clean power risk being sabotaged by the latest draft version of the TTIP Energy Chapter, MEPs say.

On Monday, the EU and US has begun the 14th round of the negotiations on the Transatlantic Trade and Investment Partnership (TTIP) free trade deal. As shown by the leak obtained by the Guardian, the EU will suggest a reduction of measures in mandatory energy savings. Same goes for major obstacles to any potential pricing schemes intended to promote the uptake of renewable energies. Articles in the TTIP Energy proposal would also pressurize environmental protections against fossil fuel extraction, logging and mining in the developing world.

In the mind of the European commission, the free trade agreement aims to: “promote renewable energy and energy efficiency – areas that are crucial in terms of sustainability”.


For more information on the energy chapter in the TTIP, read “What is the impact of the TTIP in the energy sector?

This could incline the balance in future policy debates


Among the promises made by the bloc, is also the fact that any agreement would support its climate targets, which are compulsory for clean power and partly obligatory for energy efficiency, in the home appliance and building standards sectors.

However, the two trade blocs are obligated by the draft chapter to: “foster industry self-regulation of energy efficiency requirements for goods where such self-regulation is likely to deliver the policy objectives faster or in a less costly manner than mandatory requirements”.

This could incline the balance in future policy debates, campaigners fear, as well as hinder efforts to tackle climate change.

Legally-binding energy standards have done wonders to lower energy bills for homes and offices, so much so that energy use has dropped even as the British economy has grown and appliances have become more power-hungry,” said Jack Hunter, a spokesman for the European Environmental Bureau, “Voluntary agreements have a place, but are generally ‘business as usual’ and no substitute for the real thing. If they became the norm, it would seriously harm our fight against climate change.


An avenue for averting the imposition of feed-in tariffs aimed to promote the uptake of clean energy


According to another passage in the draft text, operators of energy networks are granted access to gas and electricity “on commercial terms that are reasonable, transparent and non-discriminatory, including as between types of energy”.

Therefore, an avenue could be created for averting the imposition of feed-in tariffs and other support schemes aimed to encourage the uptake of clean energy, according to lawmakers in Brussels.

These proposals are completely unacceptable,” said Claude Turmes, a Green MEP, “they would sabotage EU legislators’ ability to privilege renewables and energy efficiency over unsustainable fossil fuels. This is an attempt to undermine democracy in Europe.”

The new TTIP Energy proposal, which effectively derogated responsibility for urgent climate change actions agreed at COP21 to the business sector, raised the concern of ClientEarth, an environmental law consultancy: “Industry is not the right entity to lead the fight against climate change,” said ClientEarth’s lawyer, Laurens Ankersmit. “It is madness for the EU and the US to rely on it in this way.”

The energy chapter negotiations started as part of an EU efforts aimed at obtaining unlimited access to exports of the US’s somewhat cheap liquefied natural gas, a large amount of it deriving from shale.

Agreement on eliminating all existing restrictions on the export of natural gas

Committed to a reduction in greenhouse gas emissions of at least 80% by 2050, as measured against 1990 levels, the EU pledged a 40% CO2 cut by 2030 at the Paris climate conference, last December.

However, according to the new text: “the Parties must agree on a legally binding commitment to eliminate all existing restrictions on the export of natural gas in trade between them as of the date of entry into force of the Agreement”.

Whatever country might want to trade with the EU or US would also find itself up against requirements that they remove trade barriers.

Indeed, as written in the draft: “The Parties shall cooperate to reduce or eliminate trade and investment distorting measures in third countries affecting energy and raw materials.”

In 2013, Karel de Gucht, EU’s trade commissioner, promised the multinational oil giant Exxon that obstacles to its expansion plans in Africa and South America would be remove thanks to the energy chapter.

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