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Europaudvalget 2009-10
Det Europæiske Råd 29-30/10-09 Bilag 6
Offentligt

COUNCIL OF

THE EUROPEAN UNION

Brussels, 23 October 2009

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POLGEN 146

NOTE

from:

to:

Subject:

Presidency

COREPER/Council

European Council (29 and 30 October 2009)

– Draft conclusions

The attached draft conclusions are presented by the Presidency with a view to their adoption by the

European Council on 29 and 30 October 2009.

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The meeting of the European Council was preceded by an exposé by the President of the

European Parliament, Mr Jerzy Buzek, followed by an exchange of views.

Institutional issues

p.m.

The European Council stresses the importance of ensuring a smooth entry into force of the

new Treaty, following ratification by all Member States. It takes note of the work conducted

as set out in the Presidency’s report (doc. 14928/09).

The European Council endorses the Presidency's report on guidelines for the European

External Action Service. It invites the future High Representative to present a proposal for the

setting up of the EEAS as soon as possible after the entry into force of the Lisbon Treaty with

a view to its adoption by the Council at the latest by the end of April 2010. In this context, it

also recognises the need for the European Union to become more capable, more coherent and

more strategic as a global actor, including in its relations with strategic partners, in its

neighbourhood and in conflict-affected areas.

II.

Climate change

The climate is changing faster than expected and the risks this poses can already be seen. We

experience widespread melting of ice, rising global sea levels and increased frequency,

intensity and duration of floods, droughts and heat waves.

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The European Council calls upon all Parties to embrace the 2°C objective and to agree to

global emission reductions of at least 50%, and aggregate developed country emission

reductions of at least 80-95%, as part of such global emission reductions, by 2050 compared

to 1990 levels; such objectives should provide both the aspiration and the yardstick to

establish mid-term goals, subject to regular scientific review. It supports an EU objective, in

the context of necessary reductions according to the IPCC by developed countries as a group,

to reduce emissions by 80-95% by 2050 compared to 1990 levels.

The European Union is at the forefront of efforts to fight climate change. It is committed to

move to a 30% reduction by 2020 compared to 1990 levels as its contribution to a global and

comprehensive agreement for the period beyond 2012, provided that other developed

countries commit themselves to comparable emission reductions and that developing

countries contribute adequately according to their responsibilities and respective capabilities.

Just weeks away from the Copenhagen Conference, the European Union is more than ever

fully determined to play a leading role and contribute to reaching a global, ambitious and

comprehensive agreement. All parties to the negotiation need to inject new momentum into

the process and the pace of the negotiations must be stepped up.

In this context, the European Council endorses the conclusions adopted by the Council on 21

October 2009 (doc. 14790/09), which together with these European Council conclusions and

the attached guidelines give the Union a strong negotiating position. It will allow the

European Union to play a constructive role during the final phase of the negotiating process,

in particular on key issues such as financing, technology transfer, adaptation, mitigation and

good governance.

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However, action by the European Union alone will not be enough. A comprehensive and

ambitious agreement can only be reached if all parties contribute to the process. Other

developed countries should also demonstrate their leadership and commit to ambitious

emission reductions and step up their current pledges. Developing countries, especially the

more advanced, should commit to appropriate mitigation action, reflecting their common but

differentiated responsibilities and respective capabilities. The European Council underlines

the need for measuring, reporting and verification (MRV) of mitigation actions in all

countries.

Adaptation is a necessary element that must be comprehensively addressed in a Copenhagen

agreement. The European Council recalls the proposal to create a Framework for Action on

Adaptation as part of this agreement. It underlines the need to scale up support for adaptation

in developing countries, until and beyond 2012, focusing on countries and regions that are

particularly vulnerable to the adverse impacts of climate change.

10.

The European Council underlines the importance of creating incentives to engage the private

sector in technology cooperation. RD&D must be substantially scaled up, global technology

objectives established and safe and sustainable technologies diffused.

11.

A deal on financing will be a central part of an agreement in Copenhagen. A gradual but

significant increase in additional public and private financial flows is needed to help

developing countries implement ambitious mitigation and adaptation strategies.

12.

The EU is ready to take its fair share of the global effort by setting an ambitious mitigation

target, allowing for offsets and providing its fair share of public support. It is estimated that

the total net incremental costs of mitigation and adaptation in developing countries could

amount to around €100 billion annually by 2020, to be met through a combination of their

own efforts, the international carbon market and international public finance.

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13.

The overall level of the international public support required is estimated to lie in the range of

EUR 22 to 50 billion per year by 2020, subject to a fair burden sharing at the global level in

line with the distribution key to be agreed by Parties, a governance arrangement and delivery

towards specific mitigation actions and ambitious Low Carbon Development Strategies/Low

Carbon Growth Plans. This range could be narrowed down in view of the Copenhagen

summit.

14.

An effective and efficient institutional framework for governance has to be developed at the

forefront of financing. Institutional anchoring of global functions must rely on a clear

separation of political and operational levels with guidance being given at the political level,

and decision making an implementation being done at a highly professional technical level.

The European Council supports the establishment of a high-level forum/body to be set up

under the guidance of the UNFCCC to inter alia provide an overview of international sources

for climate financing in developing countries.

15.

All countries, except the least developed, should contribute to international public financing,

through a comprehensive global distribution key based on emission levels and on GDP to

reflect both responsibility for global emissions and ability to pay. The weight on emissions

should increase over time to allow for adjustments of economies. The EU and its Member

States are ready to take on its resulting fair share of total international public finance.

[p.m. internal burden sharing].

16.

The European Council stresses that fast-start international public support is important in the

context of a comprehensive, balanced and ambitious Copenhagen agreement The purpose

should be to prepare for effective and efficient action in the medium and longer term and

avoid delay of ambitious action. It is estimated that an overall financing of EUR 5-7 billion

per year for the first three years is needed following an ambitious agreement in Copenhagen.

The European Council underlines that the EU in this context is ready to contribute its fair

share of these costs.

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17.

Private financing will be stimulated by developing a broad and liquid carbon market based on

robust cap-and-trade systems in developed countries, a reformed CDM and sectoral crediting

and trading mechanisms for action in developing countries.

18.

The European Council stresses the role of mitigation actions in land use, land use change and

forestry and in particular through creating incentives for reduced deforestation and forest

degradation in developing countries. A performance based mechanism which recognizes

verified emission reductions should be established.

19.

It recalls that the risk of carbon leakage is analysed and addressed in the new ETS Directive

(Directive 2009/29/EC) so that, to preserve the environmental integrity of the EU’s policies,

in the light of the outcome of the international negotiations and the extent to which these lead

to global greenhouse gas reductions, it is possible to consider appropriate measures to be

taken in compliance with international trade rules. An ambitious international agreement

remains the best way of addressing this issue.

20.

The European Council notes the Commission's draft decision containing a list of sectors and

subsectors deemed to be exposed to a significant risk of carbon leakage based on the criteria

set out in the new ETS directive (Directive 2009/29/EC). It notes that a sector or sub-sector

may be added to the list, on the basis of new information, if it satisfies the relevant criteria.

The list will be reviewed in light of the outcome of the international climate change

negotiations.

21.

In parallel with deliveries of climate financing all international parties should commit that

such financing would not undermine or jeopardize the fight against poverty and continued

progress towards the Millennium Development Goals.

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22.

The European Council invites the Presidency to take the necessary steps to maintain a strong

negotiating position throughout the process and will review the situation at its meeting in

December in order to take the necessary decisions in the light of the early stages of the

Copenhagen conference.

III. Economic, financial and employment situation

23.

The sharp decline in European economic activity is coming to a halt, with a stabilisation of

financial markets and an improvement in confidence. However, there is no room for

complacency. The incipient recovery needs close monitoring and the support by governments

and central banks should not be withdrawn until the recovery is fully secured.

24.

At the same time, in order to anchor expectations and reinforce confidence, it is necessary to

prepare a coordinated strategy for exiting from the broad-based stimulus policies. The

European Council invites the Council and the Commission to continue their work on exit

strategies, taking fully into account the principles agreed by the Council on 20 October 2009,

and to report back to the European Council in December 2009.

25.

Structural reform will contribute to foster sustainable growth. The upcoming review of the

Lisbon Strategy for Jobs and Growth will be of particular importance in that regard.

26.

As the employment situation in Europe can be expected to deteriorate further, a continued

political commitment to active labour market policies is required. It is necessary to take

measures to support the connection to the labour market and to prevent high unemployment

levels from becoming persistent, thus ensuring high employment levels and sustainable public

finances in the long run. Labour market participation is a prerequisite for economic growth,

for the social and economic wellbeing of individuals and for a more socially cohesive Europe.

In this regard, active social security policies should also be promoted. The European Union

can contribute to these efforts by promoting cooperation, coordination and mutual learning.

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27.

The European Council recalls its Conclusions of June 2009 as regards strengthening the

supervisory framework in the EU and notes that there was broad agreement in the Council on

20 October 2009 on the two legislative proposals (draft Regulation and Council Decision) on

the establishment of the European Systemic Risk Board for macro-prudential supervision. The

European Council urges the Presidency to initiate the process with the European Parliament

on the draft Regulation and Decision. The European Council recognises the progress made

thus far and reiterates the importance of the swift continuation of the work on the

establishment of the European Supervisory Authorities for micro-prudential supervision, in

order to reach a general approach on these proposals. The European Council urges the

Council, after further political consideration, to reach agreement by December 2009 on a

complete package setting up a new supervisory structure in the EU.

28.

The European Council calls for rapid progress to be made on the strengthening of the

regulatory framework for the prevention, management and resolution of financial crises and

on the development of a comprehensive EU-wide framework for closer policy coordination

on financial stability, in line with the roadmap agreed by the Council on 20 October 2009.

29.

In this connection, the European Council welcomes the outcome of the G20 Pittsburgh

meeting, particularly as regards the preparation of a framework for strong, sustainable and

balanced growth as well as continuing work on a Charter for Sustainable Economic Activity.

It also welcomes the commitment to take measures to strengthen the international financial

supervisory and regulatory system, including reform of international standards for

compensation. It calls on the Council and the Commission to ensure thorough preparation by

the European Union of future G20 meetings.

30.

The European Council welcomes the progress achieved with regard to energy infrastructures

and interconnections as well as crisis mechanisms since last January as set out in the report

presented by the Presidency (doc. 13068/2/09). It invites the actors concerned to implement as

a matter of urgency the next steps set out in that report, in particular as regards the draft

Regulation on security of gas supply, which should be adopted as soon as possible.

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31.

The European Council welcomes the initiatives taken by the Commission to stabilize the

European dairy market, thereby responding to the European Council of June 2009. The

European Council encourages the Council to continue to responding to the challenges facing

the European dairy sector. The European Council notes that the Commission has set up a

High-level group with the important task of discussing the medium and long term

perspectives.

IV. EU Strategy for the Baltic Sea Region

32.

The European Council adopts the EU Strategy for the Baltic Sea Region and endorses the

Council conclusions on the subject (doc. 13744/09). This Strategy constitutes an integrated

framework to address common challenges, i.a. the urgent environmental challenges related to

the Baltic Sea, and to contribute to the economic success of the region and to its social and

territorial cohesion, as well as to the competitiveness of the EU.

33.

The European Council calls upon all relevant actors to act speedily and ensure full

implementation of the Strategy, which could constitute an example of a macro regional

strategy. It invites the Commission to present a progress report to the Council by June 2011.

Illegal immigration

34.

The European Council welcomes progress made on implementing the measures it identified at

its June 2009 meeting regarding illegal migration in the Mediterranean. A determined

European response based on firmness, solidarity and shared responsibility remains essential,

in line with the European Pact on Asylum and Migration and the EU Global Approach to

Migration. It calls for continued concerted action to address this challenge in a comprehensive

manner and to avoid the reoccurrence of tragedies at sea.

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35.

The European Council notes the launch of the pilot project for Malta and the concrete

solidarity showed by a number of Member States in the reallocation of beneficiaries of

international protection and urges more Member States to participate in the project, on a

voluntary basis. It also notes good progress on the establishment of the European Asylum

Support Office and reiterates that the office should be established before the end of 2009. It

furthermore notes ongoing work on the enhancement of FRONTEX. It expresses its

satisfaction with the reinforced dialogue on migration between the EU and Turkey.

36.

A broad, forward-looking and comprehensive EU migration policy, in accordance with

international law, is the basis for sustainable medium- and long-term actions for migration

management. This will be reflected in the multi-annual Stockholm Programme, to be adopted

in December.

37.

In this context the European Council:



calls for additional efforts to adopt, implement and evaluate existing instruments and to

continue with the realisation of the Common European Asylum System, addressing the

issue of internal secondary movements as well as the need for tangible and effective

solidarity with Member States under particular pressure;



calls for the enhancement of the operational capacities of FRONTEX as well as

progress in its development and invites the Commission to present proposals to that end

early 2010. Such an enhancement could be based on the following elements:

i) the preparation of clear common operational procedures containing clear

rules of engagement for joint operations at sea, with due regard to ensuring

protection for those in need who travel in mixed flows, in accordance with

international law;

ii) increased operational cooperation between FRONTEX and countries of

origin and transit;

iii) examination of the possibility of regular chartering financed by

FRONTEX of joint return flights;

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

invites the Commission and Member States to accelerate the implementation of the

Global Approach to Migration with emphasis to its strategic and effective application,

including the Regional Protection Programmes. In this context it will be essential to

secure effective use of all relevant existing financial instruments;



calls on the Presidency and the Commission to continue efforts to promote a dialogue

with Libya on managing migration and responding to irregular immigration, including

cooperation at sea.

VI. External relations

38.

The European Council endorses the conclusions of the Council meeting of 27 October on

Afghanistan and Pakistan and welcomes the adoption of the plan for strengthened EU action

in the region. The Plan of Action will strengthen the civilian capacity of the state institutions

in Afghanistan and Pakistan. The European Union now stands stronger to respond to the

challenges facing the region. The EU welcomes the work of the electoral institutions in

Afghanistan in safeguarding the credibility of the election process. The European Council

stresses the need for the second round of the Presidential election to be credible, inclusive,

secure and reflect the will of the Afghan people. The European Council shares the concern

about the deteriorating security situation in Pakistan and reiterates the European Union's

readiness to assist the affected population.

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ANNEX

Guidelines for the EU position on international climate finance

The EU STRESSES that addressing climate change by building greenhouse gas efficient and

climate resilient economies is in the mutual interest of all countries and will underpin

sustainable development as well as energy security. Success will require strong commitments

and efforts by all countries.

The EU REITERATES that all countries, except the least developed, should cover their fair

share of the costs of tackling climate change. RECALLING the March 2009 Council

conclusions, developed countries should demonstrate their leadership and commit to

ambitious emission reductions and step up their current pledges. Developing countries,

especially the economically more advanced, should commit to appropriate mitigation action,

reflecting their common but differentiated responsibilities and respective capabilities.

Promoting additional efforts these commitments should be assisted by an effective and

efficient international architecture for cooperation and appropriate support. International

support should also assist adaptation to climate change.

Appropriate governance of climate finance

The EU RECALLS that the purpose of carbon market financing and international public

support is to contribute to the objective of the Copenhagen agreement in full by ensuring

effective and efficient mitigation and adaptation action in developing countries. This requires

an effective and efficient institutional framework for governance which has to be developed at

the forefront of financing. The overall basis for efforts should be comprehensive national

strategies.

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RECALLING the March and June conclusions of the Council, the EU HIGHLIGHTS that the

most important components of the governance framework for financing of mitigation should

be:



Submission of ambitious and robust country-owned Low Carbon Growth Plans

(LCGPs) by all countries except the least developed countries. LCGPs should describe

their current mitigation and energy policy frameworks, including regulation and pricing.

Developed countries should outline their plans for implementing economy-wide

reduction targets and providing international support. Developing countries should

describe their intended emission trajectories and reductions below business-as-usual,

identify broad areas and types of possible action to this end, and set out expectations for

domestic and international financing.



There should be an independent, international technical assessment of these country-

owned plans. This would help to facilitate access to support for specific actions.



Support for specific nationally appropriate mitigation actions (NAMAs) at sectoral or

programmatic level would come from multiple multilateral and bilateral channels.

Coherence and consistency of the support system would build on Measuring, Reporting

and Verification (MRV) of mitigation actions and the two global functions of registry

and matching support with mitigation action:

Unsupported actions could be measured and verified domestically on the

basis of internationally agreed standards, and should be reported

internationally. Supported and carbon-market related action should be

measured, reported and verified

internationally. The MRV of supported

action would verify that financing as well as action is delivering in full

towards commitments.

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All mitigation action would enter an

international registry.

LCGPs and the

registry of all NAMAs will ensure full transparency about the context in

which individual NAMAs are supported.

matching function

that provides overview and guidance and assists

information diffusion would be available for countries putting forward

NAMAs for support as well as countries and institutions offering support.

This would facilitate matching of competencies and needs and improve

overall performance.



Governance at the global level should rely on principles of effectiveness, efficiency and

equity. Institutional anchoring of global functions must rely on a clear separation of

political and operational levels with guidance being given at the political level, and

decision making and implementation being done at a highly professional technical level.

Both levels could be informed by advice from internationally recognised experts.

Balanced representation at political level is needed.



Gaps and imbalances in financing mitigation and adaptation actions that may arise

should be monitored and regularly reviewed at high level by an appropriate body.

International track-keeping is required in order to ensure clear transparency of overall efforts.

This encompasses domestic efforts, offset acquisition and public support in developed

countries and unsupported efforts, supported efforts and offset-based emission reductions in

developing countries.

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Provisions should be made for an effective and orderly transition from project-based to sector-

based carbon market mechanisms especially in the more advanced developing countries. This

is indispensable to ensure a manageable administration of offset crediting in the context of

increasing carbon market financial flows to developing economies. It would also increase

environmental integrity and implies larger scope for discretion for developing countries as

regards technologies and policies applied to deliver action for credits. The crediting thresholds

and targets for sectoral systems should be set to reflect ambitious own efforts in line with

countries’ respective capabilities. International cooperation and a system for verifying and

authorising the ambition of such thresholds and targets would be crucial.

The EU STRESSES that international public finance should also assist adaptation to climate

change in the developing countries especially for the poorest and the most vulnerable

countries with limited national capabilities. Adaptation concerns should be effectively

integrated with development strategies and national planning via country led processes and

coordination. Financial support for adaptation would be based on these national strategies and

plans. The international level should provide general guidance as well as analysis and sharing

of good practices. Development cooperation and delivery of ODA-based investments should

be fully consistent with the building of climate-resilient economies and all key players in

development cooperation should as appropriate integrate climate concerns in their actions.

Synergies in the implementation of international climate finance and other assistance in

developing countries should be fully exploited, and implementation of international climate

finance should respect agreed standards on aid effectiveness. The experience of existing

institutions in delivering support to developing countries should be fully used. Reporting on

progress on adaptation should also be country led via improved National Communications.

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Covering incremental cost and private financing

The EU UNDERLINES that available financial support should be scaled up over time in line

with absorptive capacity, the overall scale of efforts and the development and implementation

of the effective framework for governance. Developing countries’ own efforts should increase

with their level of development, also reflecting available mitigation potential. Mitigation

support will be delivered against specific action anchored in an ambitious overall strategy of

the recipient country.

The Commission estimate of mitigation financing requirements assumes implementation of

the most cost efficient measures. The EU STRESSES that choosing measures other than the

most cost efficient should not reduce the ambition of mitigation efforts and the extra costs

entailed should be borne by the authorities making such choices. All developing countries are

expected over the medium term to implement such own efforts mitigation action that deliver

direct economic benefits and directly assist sustainable development, including by removing

fossil fuel subsidies and other incentives to select overly emission-intensive patterns of

production and consumption. Support for capacity building to facilitate such policy changes

may be necessary.

10.

All countries will have to generate private financing by pursuing appropriate policies that

drive inter alia incentives for investment. In this context, the EU RECOGNISES the

importance of well-functioning financial markets and an appropriate business environment in

developing

countries

enabling

lending

for

low-carbon

investments

and

ACKNOWLEDGES that lending from international institutions can also play a catalysing

role.

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11.

Private financing will also be stimulated by developing a broad and liquid carbon market

based on robust cap-and-trade systems in developed countries, a reformed CDM and sectoral

crediting and trading mechanisms for action in developing countries.

12.

The EU ACKNOWLEDGES that development and delivery of a robust carbon market relies

on the ambition of mitigation targets and respective emission reduction paths in developed

countries.

International public finance over the medium term

13.

Financing through the carbon market should be monitored and recognised separately and

cannot be counted towards fulfilment of commitments to public financial support, except for

procurement of offset credits that are not used for compliance with quantified emission

targets.

14.

A global distribution key would increase the overall amount of financing raised including by

ensuring trust in the fair distribution of financing, and it would increase global ownership and

take into account developments in the world economy. At the same time it would ensure more

stable levels of support and a benchmark against which financing deliveries can be verified.

Developing countries would be net beneficiaries with magnitudes depending inter alia on their

capabilities and mitigation potential.

15.

Countries should finance their contributions based on national priorities and in accordance

with budgetary frameworks and national budgetary principles. Countries may want to

consider the use of revenues from specific sources. Revenues from specific sources should be

recognised as contributions under the global distribution key to the extent such contributions

unambiguously can be referred back to a country of origin.

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16.

Robust MRV for mitigation and monitoring and review for adaptation and regular review

should enhance compliance with international financing commitments.

17.

Contributions from global sources could complement other public finance contributions and

could be directed through global accounts. Financing flows through global accounts should be

channelled through existing institutions to implement support, maximise synergies and limit

administrative costs. Such financing could focus on closing gaps in international financing.

18.

To maximise global mitigation efforts and a level playing field vis-à-vis other emission

sources the EU STRESSES there is a strong need for appropriate global regulation of

otherwise unregulated emissions from international aviation and maritime transport. The

International Civil Aviation Organisation (ICAO) and International Maritime Organisation

(IMO) respectively are the appropriate forums to develop global frameworks, based on global

sectoral targets set by UNFCCC, which should provide a flag-neutral, un-distortive coverage

of each sector to avoid carbon-leakage, while building on market-based measures and

observing national fiscal responsibilities. Moreover, to reflect different circumstances and

respective capabilities, part of potential revenues could be directed to the benefit of climate

change purposes in developing countries.

19.

A comprehensive set of statistics for climate financing and support should be established,

preferably by building on existing reporting mechanisms such as the OECD-DAC system for

monitoring financial flows to developing countries, including ODA, based on proper

engagement of developing countries. The statistics should be fully consistent and transparent

and thus able to assist identifying any risk to poverty reduction efforts and efforts towards the

Millennium Development Goals.

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