The successful conclusion of the international climate change negotiations at Copenhagen at the end of 2009 is a key priority for the European Union (“EU”). In January 2009, the European Commission (“EC”) set out its proposals for a comprehensive and ambitious new global agreement to tackle climate change and how it could be financed in a communiqué entitled “Towards a comprehensive climate change agreement in Copenhagen COM(2009) 39” (the “EC Communication”). The EU’s goal is to limit global warming to less than 2°C above the pre-industrial temperature based on strong scientific evidence that climate change will become dangerous beyond this point. The EC Communication addresses some of the key global challenges including targets and actions, financing, and building an effective global carbon market.

The key points of the EC’s Communication can be summarized as follows...