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Heads of State Reach EU Climate Deal

At a summit last week, the EU Heads of State endorsed the 20% mandatory targets for renewables agreed and adopted a general principle of 100% auctioning of CO2 allowances in the power sector. The two measures will be forceful drivers for Europe’s wind power industry, according to the European Wind Energy Association (EWEA).

“The Heads of State commitment to domestic EU carbon reductions was watered down today, but the 27 mandatory national renewable energy targets, combined with an effective price on emitting carbon in the power sector, will give a boost to wind energy investments in Europe,” said Christian Kjaer, CEO of EWEA.

The Intergovernmental Panel on Climate Change (IPCC) has said that to in order to limit limited the global average temperature increase of 2°C per year, emissions in industrialized countries must be reduced by 25% to 40% by 2020.

The agreement allows for at least half of the reduction effort to be met by external credits in non-EU countries. It means that the domestic reductions to which Europe has committed are closer to 8%. This would increase to approximately 12% if an international agreement is reached next year in Copenhagen, EWEA said.