Safeguarding EU Emissions Trading - Setting Rules for Hydro

Monday, October 20, 2003

Briefing for the European Parliament.
Prepared by International Rivers, Greenpeace and CDMWatch

The proposed directive1 linking the EU emissions trading scheme with the flexible mechanisms of the Kyoto Protocol is contrary to the fundamental principle that climate change mitigation policy must be founded on domestic action.

The details of the directive create many additional risks. In particular, the following problems are created by the absence of any restrictions for hydroelectric projects developed under the Clean Development Mechanism (CDM) and Joint Implementation (JI):
• Investment in potentially destructive hydroelectric projects is encouraged.
• The risk of large volumes of ‘fake’ carbon credits flooding the European trading system is increased.
• Previous EU positions on the issue of large hydroelectric projects in the CDM are contradicted.
• Investment in real solutions, such as new renewable energy sources and energy efficiency measures, are discouraged.

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