David Charter in Strasbourg
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America and China face trade protection measures from Europe if they fail to join a global climate deal to replace the Kyoto Protocol, EU leaders will caution at their summit in Brussels today.
Nations that refuse to curb greenhouse gases will be told that they face “appropriate measures” — code for trade sanctions — if they try to gain a competitive advantage by continuing to allow cheap, high-pollution production.
EU leaders are particularly concerned to try to stop big companies relocating from Europe to countries that refuse to join a post-2012 climate change agreement in order to avoid the EU's tough CO2 targets.
The two-day European Council will concentrate on financial issues, including calls for greater transparency to head off catastrophes such as the collapse of Northern Rock, as well as a voluntary code of conduct for powerful sovereign wealth funds.
Gordon Brown is planning to urge the leaders today to consider reduced VAT rates for “green” goods such as low-energy fridges and washing machines. The Prime Minister believes that VAT should be used as another part of the EU's drive towards a low-carbon economy, although several other countries will resist fiscal measures.
Speaking to The Times, José Manuel Barroso, the European Commission President, said that the EU could take protective measures sector by sector to safeguard European production of cement or steel.
“We do not want to put our energy-intensive industries in a situation of disadvantage in competition terms, so that is why we will have measures that we are ready to take if there is not a global [climate] agreement,” Mr Barroso said.
“We want a binding decision now that we will take measures to protect these industries in 2012 in case there is not agreement. It would be completely foolish for the Europe Union to export the pollution and the jobs because globally the effects on climate change will be just the same, only we lose the jobs and our industry.”
An international summit will be held in Copenhagen next year to set out a global post-Kyoto framework.
Mr Barroso strongly defended the EU target for 10 per cent of all fuel to be biofuels by 2020 and rejected arguments that it had contributed to food price rises and shortages. In January Stavros Dimas, the EU Environment Commissioner, gave warning that biofuels were causing larger than expected environmental and social problems and there have been calls for the target, agreed last year, to be scrapped.
“Some of the arguments that have been advanced about the rise of food prices coming from biofuels are really exaggerated - the rise is mainly due to a structural increase in demand and it will continue with or without biofuels,” Mr Barroso said.
“The problem of hunger in Africa has nothing to do with biofuels. The idea that, if you have more production of food near you, you can eat better is a complete mistake.”
Mr Barroso called for international agreement on the types of biofuels that should be allowed but insisted that the EU targets would increase their sustainability. “The only alternative we have for biofuels today is oil. And there is no question, the impact on the environment of oil is much greater than for biofuels.”
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"and now that the Arctic ice has returned, " like when? or because that parts of the world have been using biofuels and improved the environment a little bit?..like Hurricane Katrina didn't hit Missisippi..or you just don't see the connection?...
Joy, Beijing, China
I see the Global Warming Deniers are well represented amongst those commenting on this story so far, whining that the EU's position is stupid or unfair or both for this or that or the other reason. I'll tell you what's stupid and unfair -- obstructing desperately needed progress on environmental protection until global warming becomes irreversible. Do the global warming deniers have children?
Mathews Hollinshead, St. Paul, MN
It's disturbing that the EU wants to punish America and other countries for not quite jumping on the "Global Warming/Climate Change" bus yet. It has been consistently said that we lack enough information to definitively connect human activity to the 1 degree Farenheit (0.6 Celsius) increase in the temperature average. Believe me, I'm not proud of Al Gore by any means for selling a doomsday movie to the world that is full of exaggerations and outright lies about the current environment concerns, and now that the Arctic ice has returned, we have yet to hear anything from our Nobel Prize winner. Can we possibly give science enough time to find out if we are threatened by an environmental catastrophe before we start tanking everyone's economy?
Nicole, Mississippi, USA
It's disturbing that the EU wants to punish America and other countries for not jumping on the "Global Warming/Climate Change" bus yet. It has been consistently said that we lack enough information to definitively connect human activity to the 1 degree Farenheit (0.6 Celsius) increase in average temperature. Believe me, I'm not proud that Al Gore sold the world a doomsday movie based on exaggerations and outright lies (look it up, it's been proven by a UK court, so I've heard), and now that the Arctic ice has returned, we have not heard one word from our Nobel Prize swindler. Can we let science find out if we are threatened before we start to tank everyone's economy? (And does anyone know how to get the Nobel Society to revoke his award?)
Nicole, Mississippi, USA
Love the Smugness from the Euros. I'm all for EU trade embargoes. The US is overextended and needs to strengthens its domestic economy. BTW Eugene, check and see that the US is reducing CO2 emissions faster than Kyoto signatures.
mac, toronto, Canada
All three presidential candidates, McCain, Clinton and Obama are much more environmental friendly than Bush. Next January Bush will be history.
The US has objected to unfair targets and will get on board when China and India have equal targets of compliance.
The EU should not risk upsetting the applecart. In a trade war of this magnitude - everybody loses - including airplane manufacturing jobs in Europe and access to cheaper goods made in China.
Alance, Tampa, FL
"It would be completely foolish for the Europe Union to export the pollution and the jobs because globally the effects on climate change will be just the same, only we lose the jobs and our industry.â
That is the exact reason that the US gave for not ratifying Kyoto, and the EU demonized them for that all these years. The EU also repeatedly stated that 'going green' would increase jobs, not export jobs.
J, Los Angeles, CA
So now the global warming scam artist are going to resort to black mail. Once a criminal mind always a criminal mind. There is no scientific proof of man made global warming, only poorly written computer models that are being proven wrong every day because mother nature is the biggest gorebull warming denier.
Robert G, Silver Spring, MD/US
Looks like the proposed EU directive will cure the falling dollar.
CR, denver,
I guess the EU shredding a few decades of treaties covering trade isn't being "unilateral" then?
Although the same can't be said of China, the EU needs to sell stuff to the Yanks more than the Yanks need to buy it.
The EU (and everyone else on earth) has trade surpluses with the US. So threaten away! We Canadians can use the extra business.
Jason, London, Canada
The EU will really have to do better than threats to emerging economies,lets leave aside the USA for now what about China and India they argue that they must also be allowed to develope like other countries have and how they deal with polution is a major problem.Better we all try to find a way of caping those Chinese coal powered staions coming on line at the alarming pace of 2 per week!! so less postulating EU and more R&D to help those economies get greener rather than threats.
Margot Parker, Kettering, UK
So much for America's holier-than-thou attitude. Come on, Uncle Sam, take your trousers to the laundry.
(No, not the Chinese laundry.)
eugene, heidelberg, germany
Over 400 World Wide Prominent Scientists Disputed Man-Made Global Warming Claims in 2007. See http://tinyurl.com/2dv6nz
Dr F Coles, Los Angeles, USA
After all the jobs have left Europe, at least we will have the satisfaction of knowing that our leaders were imagining that they were doing something useful.
Patrick Henry, Bristol,