POST-COPENHAGEN STRATEGY UNVEILED
The European Commission has published this week a Communication on the EU post-Copenhagen international climate policy, with the aim of setting out a strategy to re-launch the international climate talks. The document focuses on three areas of action: implementing the Copenhagen Accord; delivering fast-start financial assistance for developing countries; and establishing the conditions needed to move to a 30% reduction in CO2 emissions, to be discussed at the June European Council. In parallel, the EU will continue to press for a legally binding global agreement, integrating the Copenhagen Accord into the UN negotiations and addressing the weaknesses in the Kyoto Protocol in a step-wise approach. In a related development, both India and China have now officially agreed to be listed in the introductory text of the Copenhagen Accord, meaning they recognise having been part of the negotiation process and agree to abide by it. 
 
EU CONSIDERS ENERGY CARBON TAX
The European Commission is considering an EU-wide tax on carbon, applicable to fuel, natural gas and coal, as part of its green energy agenda. Algirdas Šemeta, Commissioner for taxation, is working to revise the EU Energy Taxation Directive to include the CO2 element, taking up a proposal originally made by his predecessor Laszlo Kovacs. The proposal currently being examined aims at putting a price on carbon outside the sectors covered by the Emission Trading Scheme. Carbon taxes already exist in Sweden, Finland and Denmark. In France and Ireland the idea is under discussion. The UK appears to have instead expressed dissent, arguing that the current Directive allows member states the flexibility to introduce a carbon tax if they wish. An EU-wide carbon tax would require the agreement of all EU member states' governments. A proposal is expected to be published in April 2010.  
 
FINANCIAL TRANSACTION TAXES DEBATED
The European Parliament has adopted with a large majority a non-legislative resolution on financial transaction taxes, calling on the European Commission to study various modalities for a tax on financial transactions, as well as the potential areas on which the revenues could be reinvested: climate change, development aid, or a financial stability fund to rescue failing banks. The UK Conservative group disagrees with reinvesting the revenues in climate change and development aid, and voted against the resolution. They proposed instead that money should be spent on the recovery of the real economy of the country where the taxes are collected and not be shared between member states. In a Parliamentary debate held earlier this week, Taxation Commissioner Algirdas Šemeta said that the forthcoming Communication on Innovative Financing will include studies of the Tobin tax, a financial transaction tax and the stability fees introduced in the US and Sweden. The Communication on Innovative Financing is expected later his month.
 
RADIOACTIVE WASTE LAW IN THE PIPELINE
The European Commission is expected to table a legislative proposal on the treatment of radioactive waste before the end of 2010. Energy Commissioner, Günther Oettinger, had already hinted at legislation on nuclear waste management at his European Parliament hearing in January, stressing that the highest safety standards would be adopted. Waste disposal is a major controversial issue in Europe, with strong local opposition to storage sites across the EU. Notwithstanding the issue of waste disposal, nuclear energy seems to have a strong political backing in certain EU member states, with France at the forefront of the promoters. French President, Nicolas Sarkozy called on the World Bank and other financial institutions to finance nuclear projects, mentioning that these should also be part of the Kyoto Clean Development Mechanism. In June 2009, the EU adopted a new directive on nuclear safety, setting binding safety standards based on guidelines and principles drawn by the International Atomic Energy Agency. A Summit on nuclear safety will be held in Washington DC on 12-13 April 2010.  

  
COMING UP NEXT WEEK

• 15 March: Environment Council, Brussels. Agenda: climate change, biodiversity, CO2 emissions from vans. 
• 16 March: Economy and Finance Council, Brussels. Agenda: Greece, alternative investment funds directive, exit strategies.

 
Karl Isaksson, Managing Partner Brussels, Kreab Gavin Anderson
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Kreab Gavin Anderson • Tel: +32 2 737 6900 • kisaksson@kreabgavinanderson.com • www.kreabgavinanderson.com