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European Commission 200 Rue de la Loi 1049 Brussels Belgium 10th May, 2010 document2/30.07.2010

The EU must make a binding commitment to reduce GHG emissions by 30 % by 2020 President Dr. Anselm Görres, GER Dear Commissioner, Green Budget Europe welcomes and strongly supports the initiative of Steering Committee Prof. Frank Convery, IRE Climate Commissioner to analyse the costs of and Prof. Dr. Paul Ekins, GBR possible routes to achieving a 30% reduction of GHG emissions in the Stephanie Favre, FRA EU by 2020. Miroslav Hájek, CZE Gabi Hildesheimer, SUI Every day spent holding back the shift towards a low-carbon economy John Hontelez, EEB and society is a day wasted. The costs of mitigating are Eero Yrjö-Koskinen, FIN far less than the costs of coping with its effects.1 The economic Valdur Lahtvee, EST downturn has created a window of opportunity to use recovery Sylvie Lefranc, FRA András Lukács, HUN measures to green the economy. In the current economic climate, the Aldo Ravazzi Douvan, ITA costs of achieving the 30% reduction target will not be significantly Klemens Riegler, AUT higher than estimates for the 20% target made prior to the economic Kai Schlegelmilch, GER crisis. Prof. Thomas Sterner, SWE Prof. Jon Strand, USA We have seen fiscal stimulus packages elsewhere used to accelerate a shift towards a low-carbon economy, as in China, South Korea and the GBE Office USA. The EU is in danger of lagging behind. A commitment to the Jacqueline Cottrell, GBR

30% reduction target will ensure that the EU remains a global Patrons frontrunner in creating an innovative, low-carbon economy. Jean-Philippe Barde, FRA Dr. Martin Bursík, CZE Sending a clear signal to business now that the 30% target is binding Ambassador Rae Kwon Chung, KOR will foster conditions for eco-innovation, improve competitiveness and Dr. Franz Fischler, AUT speed up the shift towards more sustainable consumption and Prof. Dr. Gebhard Kirchgässner, SUI production patterns. Making reduction targets dependent on Prof. Dr. Alberto Majocchi, ITA international negotiations is a poor stimulus for innovation. Prof. Jacqueline McGlade, DEN Dr. Paul Metz, NED A concerted effort to achieve the 30% reduction target and push Dr. , GER towards a greener economy would have multiple benefits: job creation Yannis Paleocrassas, GRE Dr. Rathin Roy, USA in green industries, enhanced energy security in the face of rising oil Simonetta Sommaruga, SUI prices, reduced energy costs due to increased energy efficiency, and Prof. Dr. Ernst-Ulrich Weizsäcker, GER improved competitiveness as the EU economy is greened. In addition, Alexander Wiedow, BEL of course, to sending a strong signal to all negotiating parties at the Anders Wijkman, SWE

1 As demonstrated by the Stern Review (2006), see http://www.hm-treasury.gov.uk/sternreview_index.htm.

GREEN BUDGET GERMANY (GBG) • FORUM ÖKOLOGISCH-SOZIALE MARKTWIRTSCHAFT e.V. (FÖS) Schwendenstraße 15a · D-13357 Berlin · Fon/Fax +49-30-76 23 991-30/-59 · [email protected] · www.foes.de GLS Gemeinschaftsbank eG Konto 804 371 3000 · BLZ 430 609 67 · IBAN DE87430609678043713000 Gemeinnützig zur Förderung wissenschaftlicher Zwecke laut Finanzamt München für Körperschaften Green Budget Europe (GBE) -30% for economy and environment Page 2 international climate negotiations of the EU’s commitment to reducing GHG emissions and mitigating climate change. Policy instruments that put a price on carbon are the most efficient means of achieving these reduc- tions. Emission trading combined with energy taxation to address those sectors not in the EU Emission Trading Scheme (ETS) are the EU’s strongest instruments to set a price on carbon. A new EU-wide cap for 2013 and other measures to facilitate increased auctioning of allowances are essential to ensure that the EU Emission Trading Scheme can contribute effectively to the achievement of the 30% reduction target. A strong Energy Taxation Directive to create the impetus for change throughout Europe, and to address competitiveness concerns of Member States throughout the EU, should be agreed upon and implemented as soon as possible. Green Budget Europe hereby calls for the EU Commission to decide in favour of the EU making a binding commitment to a domestic reduction target of 30% of GHG emissions by 2020. The Steering Committee of GBE, a Europe-wide platform of experts on Environmental Fiscal Reform, is are looking forward to contributing to the further development of policies to achieve these reductions. Please do not hesistate to contact us in this capacity. Yours sincerely,

The Green Budget Europe Steering Committee

Prof. Frank Convery, IRE Valdur Lahtvee, EST Prof. Dr. Paul Ekins, GBR Sylvie Lefranc, FRA Stephanie Favre, FRA András Lukács, HUN Dr. Anselm Görres, President, GER Aldo Ravazzi Douvan, ITA Miroslav Hájek, CZE Klemens Riegler, AUT Gabi Hildesheimer, SUI Kai Schlegelmilch, GER John Hontelez, EEB Prof. Thomas Sterner, SWE Eero Yrjö-Koskinen, FIN Prof. Jon Strand, USA

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GREEN BUDGET GERMANY (GBG) • FORUM ÖKOLOGISCH-SOZIALE MARKTWIRTSCHAFT e.V. (FÖS)