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Edward Lowton
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Europe's energy-intensive industries get break from the EU
16 April 2014
Energy-intensive industries in Europe will benefit as the European Commission watered down some parts of new rules on government grants for renewables.

The rules change the terms for government subsidies for energy sources such as wind and solar.
The commission said government subsidies for renewables have led to progress on environmental goals, but caused market distortions and increased costs for consumers.
The money chemical, glass, steel and other heavy-energy users will have to pay into public funds to finance renewables was also reduced, compared with original proposals.
The decision illustrates how difficult it is for the EU and other organisations to deliver politically and economically acceptable measures to tackle climate change.
In the same month, the United Nations’ Intergovernmental Panel on Climate Change (IPCC) released its latest report on climate change, placing stress on the scientific consensus accepting climate change as a fact.
The IPCC’s third volume of its 5th Assessment Report on Climate Change: Mitigation of Climate Change finds:
• Greenhouse gas emissions are still rising, and the rate of increase has itself been increasing – most of this increase is being driven by increasing global prosperity.
• On a business-as-usual pathway, global mean temperatures will increase by 3 to 5 degrees over pre-industrial levels by the end of the century.
• Staying under the 2 degree limit is possible but increasingly difficult – it will require a wide range of changes, including changes in technology, institutions and behaviours.
• Efforts to reduce emissions needs to take place across all sectors (e.g. energy, transport, agriculture) and all regions – reductions in demand for energy (through, for example, energy efficiency measures) can play a big part.
• Many countries already have policies in place to reduce emissions, but much more needs to be done – investment in clean technology needs to be massively scaled-up and mitigation policies need to be integrated into broader political considerations, such as growth, jobs and the environment.
Identified risks from climate change for Europe include:
• Increased economic losses and more people affected by flooding in river basins and coasts, as urbanisation continues, sea levels rise and peak river flows increase.
• Increased water restrictions. Significant reduction in water availability from river abstraction and from groundwater resources combined with increased water demand (eg for irrigation, energy and industry and domestic use).
• Increased economic losses and people affected by extreme heat events: impacts on health and well-being, labour productivity, crop production and air quality.
The report was prepared over four years by 235 experts from across the world who reached their conclusions by reviewing thousands of published research papers. It has undergone peer review by many other scientists, experts and by IPCC member governments.
The thoroughness of the process is without parallel in terms of scope, rigour, transparency and level of government engagement, says the UN.
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