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Economic crisis threatens EU measures on climate change

(Agencies)
Updated: 2008-09-22 09:20

BRUXELLES -- The recent economic downturn could push the European Union to adopt more modest ambitions in its fight against climate change.

(L-R) Slovenia's Foreign Minister Dimitrij Rupel, Slovenia's Prime Minister Janez Jansa, European Commission President Jose Manuel Barroso give a press conference at the European Summit at the headquarters of the European Council in March 2008 in Brussels. The recent economic downturn could push the European Union to adopt more modest ambitions in its fight against climate change. [Agencies]

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Although the European Commission has said it wants to cut greenhouse gases by 20 percent by 2020, business leaders oppose the use of fines to oblige industry to reduce its emissions, especially in the current economic crisis.

The cost to industry is estimated at some 44 billion euros per year between 2013 and 2020, with a tonne (1.1 US tons) of C02 costing 30 euros.

Business leaders have denounced the policy as a "tax", threatening to take their investments elsewhere and move their more polluting activities out of Europe.

Faced with the threat of job losses, governments are feeling the pressure.

"As the economic situation becomes more challenging, it's normal that government becomes more defensive on climate change as the required efforts will lead to additional costs in the short term," a senior Commission official told AFP on the condition of anonymity.

A number of European politicians are now speaking openly about diluting, or even abandoning the project.

"This plan is garbage. It's politically correct, but it won't happen," former Italian prime minister Giuliano Amato said at the end of August.

Renato Brunetta, Italy's minister for innovation, has been equally blunt.

"If it happens, it would kill the economic upturn. No one needs to kill themselves," said Brunetta, a trained economist.

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