We don’t need more CO2 allowances

Position of CZ Biom – Czech Association for Biomass on the proposal of the European Commission to reduce the number of emission allowances

Economic growth and development of rural areas will be ensured by investment into cleaner technologies, which will also contribute to reducing emissions, rather than maintaining the unacceptable status quo.

As expected, the reduction in allocated emission allowances proposed by the European Commission by 17 million tons of CO₂ emissions (91 mil. allowances of one ton each, compared to the original expected 108 mil. allowances) produced a strong reaction from the Ministry of Industry and Trade (MIT) and the Federation of Industry and Transport (FIT). The representatives of MIT and FIT both state that the reduced number of CO₂ allowances that the European Union would like to allocate to CR will limit economic growth and reduce the competitiveness of Czech industry. The CZ Biom association, similar to a number of entrepreneurs is, however, of a different opinion.

The development of healthy Czech industry is bound by far more serious factors than the reduction of emission allowances – not to mention the fact that the commitment to reduce emissions of greenhouse gases by 12%, following from the Kyoto Protocol, has been exceeded by more than 12 percentage points without it being necessary to adopt a single measure to reduce emissions.

The competitiveness of Czech industry is limited by the high tax burden on work and other payments, low productivity and high energy intensity. The unsuitably initiated system of carrying out energy audits and their frequently poor quality over the past 3 years have not greatly assisted in implementing effective measures in energy consumption. Because of these facts (and, amongst other things, also as a result of not resolving the problem of eliminating rent regulation, which postpones effective measures in energy consumption in the housing sphere), there has been only a very slow improvement in the relationship of the banking sector and other means of financing energy-effective projects and projects for the use of renewable energy sources. Simultaneously, the State Energy Conception (SEC), which was approved by the Government a year ago (March 10, 2003), declares a reduction in the overall energy intensity of formation of GDP at a rate of up to 3.5% annually and a relatively substantial increase in the fraction of renewable energy sources (5-6% as early as in 2005).

Suitably chosen and suitably implemented measures to reduce emissions of greenhouse gases would undoubtedly create new jobs, contribute to meeting the targets of SEC and international obligations and would contribute to more stable development of the Czech economy. In this respect, CZ Biom offers its assistance in searching for suitable opportunities for implementation of measures in the areas of energy-production use of biomass, development of technologies, cultivation of energy crops and other related areas.

The approved law on support for energy from renewable sources should assist significantly in reducing, or at least not increasing, emissions of greenhouse gases. The conditions laid down in this law are already attracting many potential investors, including those from former opponents of this law, as business opportunities are stronger than personal convictions. There is also a danger that, in the first few years, not all the projects commenced will be of sufficient quality because of the lack of experience of project planners and companies, which could support the arguments of opponents of support for the use of renewable sources. CZ Biom will attempt to mitigate these potential conflicts through its activities in the spheres of enlightenment and consulting. CZ Biom proposes adoption of the proposed reduction in the number of emission allowances as a minimal contribution to sustainable development and to support the development of renewable energy and energy effectiveness through consistent transfer of commitments from the State Energy Conception to practice.

 

Some statements in the Czech Press:

“The proposal of Brussels does not correspond to the real state of affairs”, said Mr. Mravinac, the press agent of MIT. ”Our proposal was based on reality; such a significant reduction would obviously not be fair towards Czech enterprises. We don’t take the signal from Brussels to be definitive”, said Mr. Mravinac.

The President of the Federation of Industry and Transport of the Czech Republic (http://www.spcr.cz), Jaroslav Míl, considers the original Czech NAP to be realistic and that the proposed reduction by 17 million is not justified. “I can’t imagine that it would be under a hundred million tons”, he stated. Thus, according to Mr. Míl, the Government will have to defend its proposal, which it approved in the fall, at upcoming negotiations.

http://www.ekolist.cz/zprava.shtml?x=227269

The President of the Federation of Industry and Transport of the Czech Republic, Jaroslav Míl, stated that a reduction would lead to damaging of Czech industry. “We have substantial fears that the Government will not be capable of defending its standpoint”, said Mr. Míl. He stated that Czech industry could be damaged and considers the proposed reduction to be unjustified.

http://www.ekolist.cz/zprava.shtml?x=227273

“Any reduction in the proposed number of allowances would mean that the Government is not capable of defending the interests of the Czech Republic in the European Union. I would also have substantial fears that some individuals at the Ministry of the Environment are not seriously defending the interests of CR”, said Mr. Míl.

“What has been proposed for future negotiations is seen on the part of Unipetrol (http://www.unipetrol.cz) as discrimination of the new member states of the European Union and would simultaneously limit development of our sector in the Czech Republic”, the Director of Unipetrol, Pavel Švarc, told CTK.

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