The European Parliament has put itself on a collision course with several
member states, including the UK, after the environment committee voted for new
legislation that would effectively ban all new coal-fired power stations built
without carbon capture and storage (CCS) technologies after 2015.
While all member states are pushing for the rapid roll out of CCS
technologies capable of sequestering carbon emissions underground, countries
such as the UK and Poland have argued that with the technology still unproven
blocking new plants without CCS could lead to increased energy insecurity.
Former UK business secretary, John Hutton, has
repeatedly
argued that the price of carbon imposed through the EU's emissions trading
scheme represented the best means of encouraging energy firms to install CCS
systems.
However, yesterday the European Parliament's environment committee voted
overwhelmingly in favour of the so-called "Schwarzenegger-clause", named after
the policy adopted by the Californian governor, which would impose carbon
emission standards on new coal-fired power plants, effectively banning plants
built without CCS technology.
Under the proposals, new power plants with a capacity of more than 300MW
would from 2015 be allowed to emit a maximum of 500g of carbon dioxide per
kilowatt hour on an average annual basis. This would prohibit the building of
new coal-fired power stations that typically emit between 700g and 850g of CO2
per kilowatt hour, and new oil-fired stations that emitted 590g per kilowatt
hour, while allowing cleaner gas-fired power stations and plants with CCS
systems fitted.
The legislation also includes plans to help finance 12 CCS demonstration
projects by issuing the projects with 500 million carbon credits under the
European emissions trading scheme with a potential value of over €10bn (£7.8bn),
and outlines a timeline designed to ensure that the demonstration projects have
been agreed before the UN's Copenhagen climate change talks in late 2009.
In addition, the legislation sets outs rules governing CCS facilities that
require developers to take responsibility for the site for 50 years and help
fund an independent agency for monitoring the effectiveness of carbon storage
sites.
A spokeswoman for the environment committee said that negotiations between
the parliament and member states will now commence, with a goal of reaching a
final agreement on the legislation by the end of the year. The full European
Parliament would then be in a position to vote on the package in December.
However, she admitted that the negotiations were likely to be "very tough"
and that a compromise deal may be required to secure the support of coal-reliant
economies such as Poland.
Do you agree?
Have your say on this article