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Tackling Climate Change:
Taking action now for tomorrow's generations

The foundation was laid in 1997 in Kyoto. The second phase was prepared in 2007 in Bali, and a new climate agreement is to be signed at the end of next year in Copenhagen.

The European Union has had a leading role in international climate policy right from the start. This is doubtless an expression of the value that Europe places on environmental protection and conservation.

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It is certainly also motivated by the fact that the European Union economic area is responsible for a large part of greenhouse gas emissions. According to the Kyoto Protocol, the EU generates one-sixth of global CO₂ emissions.
The EU accepts the resulting commitment without any reservations.
What holds true for the EU on a global scale also applies to Germany within the EU: Our country wants to take on a responsible leading role within Europe.

The EU’s climate policy focuses on five areas, which the European Commission presented in March 2007:

1. Stipulation of targets to cut greenhouse gas emissions
2. Further development of emissions trading
3. Measures to increase energy efficiency
4. Expansion of renewable energies
And 5. Promotion of new technologies to combat climate change.

The very first point – the stipulation of targets for cutting greenhouse gas emissions – highlights the key dilemma in the fight against climate change. Success is only possible if everyone pulls together in the same direction.

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Although the EU covers a considerable area, going it alone would have only a small impact on climate change and would be a political and economic dead-end street.
If global warming is to be contained to a maximum of two degrees, as agreed in the Kyoto Protocol, we need clear global targets.
The EU has set itself such targets. It is committed to cutting greenhouse gases by at least 20 percent between 1990 and 2020.
And it offers the option of increasing this figure to 30 percent, if other industrial nations agree to the target.

German industry considers a target of 30 percent ambitious but doable – an opinion that is backed up by studies. The German government has already committed itself to achieving this target.
But will this additional ten percent offered by the EU motivate enough other countries – particularly the big CO₂ emitters – to raise their own targets?
Measured against the real development of energy consumption, even the European goal does not seem to be ambitious enough.

The German Institute for Economic Research has calculated that greenhouse gas emissions worldwide have risen by 27 percent from 1990 to 2005, despite the measures agreed in the Kyoto Protocol.
The International Energy Agency forecasts that global energy consumption will increase by a further 60 percent or so up to 2030.

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In this context, we must bear in mind that around one-third of the global population does not yet have access to electricity.
In particular, if the economies of emerging markets such as China, India, Brazil and South Africa continue to grow, their energy requirements, and thus their CO₂ emissions, will significantly increase.
The EU states that in order to prevent a rising concentration of greenhouse gases in the atmosphere, we must cut global emissions to 50 percent of 1990 levels by 2050.
In other words, we need to realize a turnaround in global greenhouse gas emissions.

How can we hope to achieve this?
This brings us to the second point in the European provisions – emissions trading.
Emissions trading is an important control instrument for climate policy. It sets the upper limit for emissions, distributes emissions authorizations among market players, and checks that the actual emissions are covered by allowances.

Companies can choose whether to invest in technologies that cut emissions or buy allowances on the market. This creates a market value for the allowances – and thus for a ton of carbon dioxide.
This also does not necessarily lead to an auction. The emissions trading system of the European Union has shown that a market and a price for CO₂ emissions has quickly become established, even without auctioning off the allowances, which is a concept that the European Commission plans to launch in the years ahead.

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The key to the concept’s long-term success is a globally standardized system of emissions trading with a global price for CO₂. We at Bayer welcome this approach very much.
Until then, emissions authorizations should be distributed free of charge for environmentally friendly energy technologies to stimulate their implementation. Technological innovation is one of the main levers for cutting CO₂ emissions.

Let me move on to the third point in the EU’s climate policy – increasing energy efficiency. At Bayer we see great potential for opportunities and developments in this area.
According to the EU’s action plan, suggested measures should cut primary energy consumption by 20 percent until 2020.
This is the first area that involves activities which can be implemented across the board – from industry right through to end consumers.

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Tackling Climate Change:Taking action now for tomorrow's generations

Tackling Climate Change:
Taking action now for tomorrow's generations