Diplomacy by Directive

Abstract

This paper examines the EU's Energy and Climate Package, and notably the new Emissions Trading Scheme Directive (2009/29) from an external perspective. It argues that the various Directives, Decision and Regulation that make up this package contain elements that are related to the upcoming international negotiations for a successor to the Kyoto Protocol. The provisions on carbon leakage, the move to a 30% emissions reduction target, inclusion of LULUCF in the EU ETS and other elements are all aimed at influencing third countries in the December 2009 negotiations in Copenhagen. The rules on biomass production in third countries have a similar effect. Whether or not this package plays a role in the international negotiations is uncertain, but the EU certainly aims to 'set the scene' with this package.

Keywords: climate change, energy and climate package, UNFCCC, Kyoto, EU ETS

JEL Classification: K32, K33, Q4