Analysts have stated that an EU deal to phase out coal subsidies within the Paris Climate Agreement is “completely inconsistent”.
Negotiations at COP24 ended on Wednesday. A benchmark CO2 emissions standard of 550 grams per kWh for all European power plants has been set, with limitations set to be in effect by 2025. Unfortunately, a loophole has been secured by Poland, a coal-dependent country, which allows countries another year to negotiate new ‘capacity mechanisms’ that would be exempt from the deadline. This may allow for unprofitable coal plants to keep operating until 2035, which is five years after the projected cut-off for meeting the goals of the Paris Climate Agreement.
“Continued support for coal as just agreed by the EU is completely inconsistent with meeting the Paris agreement goals and in particular with limiting warming to 1.5C [above pre-industrial levels].” said Bill Hare, the director of the Climate Analytics thinktank. “It appears to be a de facto rejection of the Intergovernmental Panel on Climate Change finding that coal needs to exit the power sector rapidly. In the EU this means by 2030.”
After the deal was signed, the EU’s climate commissioner, Miguel Arias Cañete, tweeted “A more flexible market will facilitate the integration of more renewables. We also limit capacity mechanisms and #support5050 to move #BeyondCoal. #CleanEnergyEU completed.”
This has not been met with universal support. Environmental campaigners Greenpeace have said that the proposed capacity mechanisms and stay of execution for subsidies levied on the coal industry showed unequivocally that many EU governments were still not fully serious about or dedicated to tackling climate breakdown.
The deal “will help the transformation to cleaner electricity production” said MEP Krišjānis Kariņš. “It will open up more competition in electricity across the EU border – good for the climate and good for the wallet”.
Green MEP Florent Marcellesi said that the delayed introductions of an emissions standard guaranteed “a free licence to go on polluting despite the impact on climate and public health”, meaning that the deal is ‘insufficient’ to meet the goals of the Paris Climate Agreement.
“The cost-optimal pathways show that to be in line with the Paris Agreement, the OECD and EU countries need to phase out coal the fastest – by 2030. China would need to phase out coal around 2040, and the rest of the world by 2050.”