IN ASSOCIATION WITH
Designed by committee
medieval cult based on the appearance of to three-year grace period where the CERs will the most economically costly, but politically
comets, but it is actually far more mysterious. continue to be acceptable after which they will desirable, renewable energy project in a least
Comitology only exists as a word within be barred. developed country could at any given moment
the Lexicon of the European Parliament. The committee could sit any time after the be banned from use in the EU ETS by the
Essentially when agreement on a standard that adoption of the EU ETS regulations by the comitology process. Furthermore, that ban may
falls within the remit of a piece legislation European Parliament in the spring of 2009. be overturned or broadened by the outcome of
passing through the European Parliament The European Commission has, however, the international negotiation process, which may
cannot be reached, control of the standard can expressed the desire that the committee not sit happen this year, in 2010 or even later.
be passed to a committee of experts chaired by until after the international Copenhagen Kyoto This is clearly not an environment that
the European Commission. Protocol discussion at the end of 2009. The is conducive to encouraging any form of
To further complicate matters there are four Commission’s thinking on this seems to be that investment whatsoever, even in ‘Gold Standard
types of comitology committee, differentiated it is pointless to decide upon detailed standards type’ projects. Which is to say this is not an
by the degree of control that parliament and the that may then be swept away by the terms of a environment that is conducive to engaging the
council has versus the degree of control that the subsequent international agreement. developing world, even the poorest members,
European Commission has. The two types of in the fi ght against climate change. Which is
committee on the extremes of this spectrum are
advisory committees, and regulatory committees Comitology
presumably not the intended outcome of the
Phase III negotiations around CDM use.
with scrutiny. With an advisory committee the
‘
There is a clear solution.
European Commission has to try to take the
may sound
While the key task of the comitology
opinion of the committee into account, but committee, when or if it ever sits, is to consider
is under no enforceable obligation to do so.
For a regulatory committee with scrutiny the
like a medieval
what types of projects will be barred from the
EU ETS, there is nothing to prevent it from
European Parliament and Council of Ministers
not only drive what the committee looks at, but cult based on
identifying a core group of project types that
it will not be touched. For instance projects in
also has an effective right of veto in the event Africa or in least developed countries could
that the committee passes a standard that it
comets
be exempted from comitology. One of the key
considers unacceptable. The comitology process criticisms of the CDM has been that these areas
for CERs in Phase III is a regulatory committee This implies that the three catego
’
ries of CER are under-represented. Making projects in these
with scrutiny and so will be relatively open and allowed post-2012 and the comitology process countries ‘safe’ at a time when all other areas of
should refl ect the position of Member States. that can at any given point supersede them may the market are in fl ux would do much to address
The work of the committee for CER themselves be superseded by the outcome of this imbalance.
standards will essentially be to compose a international negotiations. One fi nal point needs to be addressed. It
negative list of project types that will not be All of which doesn’t seem wildly has been suggested that this would cramp the
allowed for use in the EU ETS post-2012. Any unreasonable until you take into account the EU’s negotiating position in the forthcoming
restrictions that the committee decides upon fact that the CDM is funded by private venture talks. This may be true if projects outside
supersede those of the three categories that are capital, the international negotiations may well these areas were protected. However, even
currently allowed for use. This even applies to not be concluded in Copenhagen, and we are the most curmudgeon parties involved in
projects in least developed countries. currently in the grip of what is shaping up to the international process do not suggest that
The current thinking on the initial restrictions be the worst recession for seventy years and projects in Africa and least developed countries
that the committee will pass are, that HFC possibly ever. As a result venture capital is be banned.
projects will be removed, and thin on the ground and When the European Parliament adopts
it will formally adopt the pathologically risk the legislation in the spring, as a matter of
European standard for averse. urgency the comitology committee must sit and
large hydro projects. Put another pass the safe list. To do otherwise will be to
In the event that a way, even miss a crucial window of opportunity to keep
given type of CER investment capital fl owing to Africa and least
is placed on the developed countries, exactly when they need it
negative list there the most.
is a six-month
Miles Austin is head of European regulatory
affairs at EcoSecurities, a specialist in sourcing
and trading emission reduction credits.
FACT FILE: DEFINITIONS
n EU ETS - European emissions trading
scheme
n CER - Certified emission reduction
n CDM - Clean development mechanism
n LDCs - Least developed countries.
SUSTAINABLE SOLUTIONS April 2009 11
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