EU lawmakers urge caution on bloc's CO2 curbs

The EU's main tool against global warming could be altered to lighten the impact on heavy industry and reduce the chances of the EU tightening its CO2 reduction goals, a document shows.

The moves aimed at protecting EU industry from overseas competitors have alarmed environmentalists, who already accuse lawmakers of weakening curbs on emissions from cars and aviation.

As part of its drive to lead the world in fighting climate change, the 27-country EU has committed to cutting carbon dioxide emissions by one fifth by 2020, compared to 1990 levels.

It is also considering increasing the cut to 30 per cent if big countries such as China and the US commit to their own reductions.

But members of the European Parliament's influential industry committee are mulling an amendment that would demand a full impact assessment before cutting beyond 20 per cent. Any such move to extend cuts would also be subjected to full legislative scrutiny by the EU's member states and EU lawmakers before becoming law.

"This would make it much harder to move to 30 per cent cuts automatically, as the EU would have to go through the whole co-decision procedure, and it could even prevent it altogether," said WWF campaigner Kirsty Clough.

Industry committee members returning to work this week are also considering amendments to alter the EU's flagship Emission Trading Scheme (ETS) so it has less impact on energy-intensive industries such as steel.

The ETS seeks to put a cap on EU emissions by making polluters pay for permits to emit carbon dioxide, the main greenhouse gas blamed for climate change.

The power sector, which now gets most of its permits for free, will have to pay for all of them from 2013, under European Commission proposals. The power sector passes on the extra cost of carbon emissions permits to consumers, but companies which operate in globally competitive markets such as the steel sector are less able to do that.

EU steelmakers say the current plans could cost the sector more than €50 billion between 2013 and 2020 and put thousands of jobs at risk.

The European Commission is considering whether to allow steel and other energy-intensive industry to continue to get free permits from 2013.