13 October 2008 | Luca Del Buono

 

The European Union's French presidency sought on Thursday to defuse mounting opposition to EU climate goals by offering opt-outs for some industries and countries that fear economic damage, angering environmentalists.

Some eastern European states have assembled a blocking minority to carbon dioxide curbs they fear will stunt economic growth, while Germany is fighting hard to protect its industry from added costs.

But France recommended opt-outs for industries facing competition from unregulated overseas rivals and for some countries' power sectors, prompting environmentalists to accuse President Nicolas Sarkozy of back-sliding.

The European Union has ambitious plans to cut carbon dioxide (CO2) emissions by a fifth by 2020, compared with 1990 levels, partly by making power generators and heavy industry pay for permits to pollute in its emissions trading scheme (ETS).

But some eastern European states have threatened to derail the proposal, saying it puts a costly burden on their highly polluting communist-era coal-fired power stations.

Heavy industries, such as steel, aluminum and chemicals have also raised opposition, saying they will lose out to rivals in neighboring regions that have less environmental regulation and therefore lower costs.

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Source: Reuters

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