About cows and trees -Policy implications of the 2030 EU climate and energy framework on agricultural and forestry sectors

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1 About cows and trees -Policy implications of the 2030 EU climate and energy framework on agricultural and forestry sectors European Economic and Social Committee Public Hearing Jelgava, Latvia, 10 March 2015 Peter Wehrheim, DG Climate Action, European Commission

2 Table of contents 1.Introduction: the role of "cows and trees" in protecting the climate 2. Trends 3.Land Use, Land Use Change and Forestry: reporting accounting 4.Current Policy framework: improved accounting for LULUCF 5. Roadmap: options and next steps

3 1 Introduction Emissions and Removals from agriculture, forestry and other land uses in current climate policy 1. CH 4 and N 2 O from agriculture = Effort Sharing Decision 2. CO 2 from agricultural soils and forestry = UNFCCC/Kyoto

4 1 Introduction 1.2 Policy context: EU objectives 2020 Climate and energy package 3x20 targets GreenHouse Gas (GHG) emissions: 20% reduction ineuin2020comparedto1990levels 2030 framework -October 2014 EU EU endorsed a binding target of at least 40% reduction in 2030 compared to 1990 levels A least -43% for the EU ETS sectors and -30% for non-ets sectors Invite Commission to assess the option for the inclusion of Agriculture + LULUCF into the 2030 Climate& Energy framework

5 2 Trends Projection of EU agriculture non-co2 emissions Agriculture and land based emissions will grow in relative importance 100% 80% 60% Power Sector Residential & Tertiary Current policy 100% 80% 60% By 2050: third of total EU emissions, tripling its current share 40% 20% Industry Transport Non CO 2 Agriculture 40% 20% Non CO 2 Other Sectors 0% 0%

6 2 Trends Decoupling agricultural production from (non-co2) GHG emissions

7 2 Trends Emissions (+) and net removals (-) from Agriculture and LULUCF at EU level, sinks 7 Source: JRC 2011

8 3 LULUCF: reporting vs. accounting 3.1 LULUCF = Land Use, Land Use Change and Forestry LULUCF includes all human management of vegetation and soils; LULUCF net removals amount to 7% of the EU s total GHG budget; Relative importance of sector varies significantly across Member States. 8

9 3 LULUCF: reporting vs. accounting Net removals accounted removals (credits) and emissions (debits) Accounting rules are important Principle: crediting is based on additional efforts (to Buisness as Usual) which requires: A base line scenario A projection in the future Net change in carbon stock Removals Emissions Dashed black line = Projected reference level Red-green dashed line = Actual performance Less removals than reference level = Debits More removals than reference level = Credits

10 3 LULUCF: reporting vs. accounting LULUCF emissions and removals (Commitment Period 1 under Kyoto Protocol): differences among MSs The Forest Management (FM) activity became mandatory under CP2 and was not elected by a significant sub-set of EU Member States; and the EU LULUCF Decision requires that Member States provide estimates for Cropland Management (CM) and Grazing land Management activities.

11 4 Current policy framework 4.1 International framework for LULUCF: UNFCCC and Kyoto Protocol, Different sets of rules UNFCCC (Convention) obligation to reportghg using sectorial approach (National Inventories) Land-based (UNFCCC): all lands Kyoto Protocol (KP): obligation to account GHG using same sectors towards a target (reduction commitment) Different reference: projected trend, base year level Activity-based(KP): partial lands through activities Difference between LULUCF in EU domestic legislation and under Kyoto Protocol EU: LULUCF included in GHG inventories, but not counted against domestic 2020 target KP: LULUCF is included in GHG inventories; If debits from LULUCF, they need to be compensated through emissions reductions in other sectors

12 4 Current policy framework 4.2 Treatment of emissions from agriculture, forestry and other land uses in currenteuclimate policy: improved accounting and knowledge base EU 2020 GHG reduction Target: - 20% ETS ESD: 28 MS targets Decision 529/2013/EU: Accounting exercise No inclusion in the 2020 ESD target But covered under Kyoto CP2 Improved information(nat. information action, more comprehensive accouting) Energy power stations Industrial installations Transport, buildings, and waste Agriculture: Non-CO2 emissions (livestock and fertilizer use) Cropland and Grassland Management, CO2 emissions LULUCF Decision Forest Management Aforestation Reforestation Deforestation Wetland Drainage and Rewetting Putting this into EU law

13 5.1 Roadmap 3 main options: Option 1: LULUCF pillar: Maintain non-co2 AGRI emissions in ESD, further develop a LULUCF sector policy separately. Option 2: Land use sector pillar: Address specific characteristics of emissions and removals from both sectors in one joint policy. Option 3: Effort sharing: Include LULUCF sector into the Effort Sharing Decision (with buildings, transport, waste and AGRI).

14 5.2 Next steps A stakeholder consultation will be launched in March/April Commission work on the Impact Assessment in 2015 Climate Conference in Paris in December 2015

15 Thanks for your attention! Yourviewson: Cows and Trees???