E3G

Climate change: EU-China and economic growth

By Quentin de Molliens

It might be helpful to finish by identifying some of the more specific issues that we are both addressing, in Europe and in China, or may need to address.

We want to drive investment to accelerate the deployment of low carbon and energy efficient technology, for example through:

the use of market-based mechanisms such as tradeable renewables certificates in the UK. Such instruments can be very useful in growing the market for near commercial technologies, and making them competitive;

regulatory frameworks for carbon capture and storage, which we will need to reduce investor risk for this hugely important technology.

We need policies that make efficient energy choices easier and more attractive, such as:

clearly established mandatory standards, with a clear pathway towards rising levels of efficiency;

better information so that consumers can make more informed choices, for example through labelling.

We also need to put a value on carbon, to correct the market failure and generate revenues for investment in a faster low carbon transition:

fiscal measures are always sensitive but the Assistant Finance Minister spoke this morning of the possibility of a carbon tax to accelerate the uptake of renewables;

equally, greenhouse gas emissions trading is rapidly moving from experimental to routine, with the EU’s Emissions Trading Scheme leading the way.

An equally important part of the same kit of mutually reinforcing policy tools for energy and climate security is the creation of more open and competitive energy markets:

removing barriers to the entry into the market of new providers of energy and energy services; and

allowing prices in the energy system to move towards market levels

These are a few of the specific issues that are being or could be considered as we address the shared energy and climate dilemma. But the main message I want to leave is that we in the UK and the EU see a strong interest in close cooperation as we each try to meet the energy and climate needs of our societies.

Thank you for inviting me to take part in this symposium. We in the EU welcome the dialogue you are trying to build, and will do all we can to support it.