March 22nd 2005

Position Paper on Climate Change Strategy Post-2012

Summary
The American Chamber of Commerce to the European Union (AmCham EU) supports the
new Commissions themes of diplomacy, international inclusion and market-orientated
polices to gather support for a long-term international policy approach to tackle global
climate change. AmCham EU hopes that EU leaders will endorse this approach at their
Spring Summit in Brussels.
Meeting the twin challenges of tackling climate change and improving energy security that face
governments, industry and society as a whole, requires a coordinated and international
response. The entry into force of the Kyoto Protocol on February 16th 2005 marks the first step
in a long-term endeavour to lay the foundations for a less greenhouse gas intensive economy.
This will necessarily be a long-term effort and the future evolution of international structures
will depend on them being flexible, inclusive and market orientated.
The European Union will be a key player in the diplomatic efforts that will be needed to build
on and improve international co-operation, and its policy choices within the European Union
will be crucial not only for the competitiveness and environmental performance of the region,
but as an example for others. AmCham EU, representing the interests of 135 European
companies of US parentage looks to the EU to formulate cost-effective strategies to reduce
greenhouse gas emissions and encourage the deployment of low-emission technologies in the
European Union and worldwide.
The immediate task is to ensure the development of a long-term international policy approach
from 2012 that includes all countries and regions; balances environmental, economic and social
impacts; and utilises incentives and other market-orientated approaches as alternatives to
targets and timetables. The bureaucratic process for international projects under the Clean
Development Mechanism needs to be streamlined, and much will depend on the EU emissions
trading scheme being a success. Such an approach will be much more likely to gather
international support and indeed the support of industry, both of which are keys to its success.
It is in the interest of industry to improve their energy efficiency. Many companies have
already succeeded in radically reducing their energy consumption and producing more energy
efficient products without the need for regulations. They also want to succeed in emerging
markets for low or zero greenhouse gas emission products - the European Union should aim to
be the most attractive market for such products.

March 22nd 2005

Climate Change
On February 9th, the European Commission outlined core elements for a post-2012 strategy in a
Communication Winning the Battle Against Global Climate Change. We are particularly
pleased that the elements include:

broader international participation in emission reduction; the EU cannot solve the

challenge of climate change on its own. We therefore urge the Spring Council not to set
new regional or global emission targets as a starting point for the post 2012
negotiations. Proposing global targets will not meet the participation challenge and
imposing unilateral EU targets will lead only have a negative effect on the EU
competitiveness without solving the Climate Change Challenge;
a push for innovation: technology research, development and deployment are key to
create long term solutions; therefore:
o budgets for R&D on less GHG intensive energy systems needs to be increased
in the upcoming 7th Framework Program;
o fiscal and regulatory framework needs to be created for Companies to increase
R&D budgets;
o we welcome the proposed enhanced co-operation with the US;
o we would like to see greater emphasis on improving market conditions, for
example by revising the 2001 EU state aid guidelines for environmental
protection, which are overly focused on renewable energy sources and need to
be widened so that other less GHG intensive technologies, like fuel cells,
carbon sequestration, co-generation, can benefit;
continued use of JI and CDM flexible market-based instruments, like Joint
Implementation and the Clean Development Mechanism, in the EU and globally, and
other initiatives encouraging public/private partnerships;
inclusion of more policy areas, like forestry, maritime transport and aviation the last
two are by their nature international and require an international response. We are
disappointed to note that despite an emphasis on market-based instruments, the
Commission confines itself to commenting on the tax aspects, omitting references
either to existing international frameworks, like the International Civil Aviation
Organisation (ICAO), or other policy options like emission trading;
more research on improving knowledge on climate change and developing costeffective adaptation and mitigation strategies; and
a new phase of the European Climate Change Programme (ECCP) in 2005 and its
emphasis to review progress and explore options for cost-effective emission reduction
options. We hope that this new phase of the ECCP will include extensive stakeholder
involvement as was the case in the last exercise which was completed in June 2001.

Overall, we welcome the Commissions pragmatic emphasis on diplomacy and building

international support for tackling climate change, rather than dogmatic appeals based on
inflexible targets that are ill-adapted for a long-term international policy approach.

March 22nd 2005

Climate Change
AmCham EU hopes that at their Spring Council, EU leaders will also endorse a similar
approach for a post-2012 climate change strategy.
Yours sincerely,

Claudio Murri
Chair
American Chamber of Commerce to the European Union

Darcy Nicolle
Chair of the Environment Committee
American Chamber of Commerce to the European Union
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The American Chamber of Commerce to the European Union (AmCham EU) is the
voice of companies of American parentage committed to Europe towards the
institutions and governments of the European Union. It aims to ensure an optimum
business and investment climate in Europe. AmCham EU facilitates the resolution of
EU US issues that impact business and plays a role in creating better understanding
of EU and US positions on business matters. Total US investment in Europe amounts to
$850 billion, and currently supports over 3.5 million jobs.
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