Working Group on Energy and Climate Change
The EPC Working Group on Energy and Climate Change was created in June 2011 after the merging of the Joint EFC - EPC working group on the international financial aspects of climate change with the EPC working group on the economic aspects of EU energy and climate policy. The mandate of the Working Group covers both workstreams.
The working group should focus on issues related to:
1. the economic and financial aspects of international climate policy, and
2. the economic and financial aspects of internal EU energy, climate change policy and related issues, including in the context of the integrated economic surveillance and the European Semester.
The working group will focus on priority issues within its area of expertise, namely the macro-economic and fiscal implications of climate policy, energy and related issues, cost-effective mitigation and adaptation instruments for delivering climate change objectives and international climate finance issues.
The working group will also provide inputs on specific issues at the request of the EPC or the presidency of the EU.
Climate finance will be one of the main issues for the 2015 Agreement. Analysis and reflection on what could be the key asks and deliverables by the EU and its Member States on climate finance pre and post 2020 will be important. To this end, the working group should provide timely input, via EPC and EFC, to ECOFIN Ministers in order for them to consider and define the EU’s position on climate finance. The timing of meetings and reports should have regard to the timing of external events and milestones.
1. Regarding the economic and financial aspects of international climate policy, the working group should focus on the following main areas:
Long term financing commitment, including potential sources of climate finance: Reflection on and contribution to how climate finance could be reflected in the 2015 Agreement and accompanying decisions. This includes reflecting on and outlining potential international and national public, private and alternative finance instruments for scaling up financial flows globally and at EU level, reflecting on types of financing to be mobilised pre and post-2020 as part of future international decisions, reflecting on how to scale up climate financing to 2020 in line with current international commitments.
Contributions are expected from the group to prepare draft ECOFIN Council Conclusions on the climate finance aspects of the EU position for the UNFCCC negotiations. In addition, the group should maintain flexibility and within its area of expertise address other issues of relevance to finance ministers as needed due to possible developments in the international negotiations, in particular with regard to negotiations related to climate finance in the Ad-hoc Working Group on the Durban Platform for Enhanced Action.
2. EU policies on energy and climate change and their impact on Member States are also important for the work of the group. The working group will support the EPC in providing economic analysis in the context of the implementation and further development of the EU energy and climate framework and in examining the macroeconomic and financial implications of policy options to meet EU energy and climate objectives beyond 2020 and upcoming proposals on an EU Energy Union. The working group will focus on the 2 main areas:
Membership will consist of two reimbursed experts per Member State.
The Working Group will follow the working practices set out in the 5 November 2009 report by the Chairman of the EPC on “Streamlining of EPC work – Restructuring of EPC Working Groups”, in particular with regard to reporting back regularly to the EPC and the development of projects plans to be approved by the EPC. The working group will work closely with other Council formations and their sub-groups, in particular the Environment and Energy Councils to ensure communication, coordination, consistency of work, while fully respecting the responsibilities of the relevant Council formations and their respective areas of expertise. In particular, on international climate finance issues, the Working Group will work closely together with WPIEI and EGI. It is agreed that the ECCWG remains a time-limited working group.