WASHINGTON – Newly publicised internal documents suggest that U.S. negotiators are working to permanently block a landmark regulatory proposal in the European Union aimed at addressing climate change, and instead to force European countries to import particularly dirty forms of oil.
Environmentalists, working off of documents released through open government requests, say U.S. trade representatives are responding to frustrations voiced by the oil and gas industry here. This week, U.S. and E.U. officials are in Brussels for the sixth round of talks towards what would be the world’s largest free-trade area, known as the Transatlantic Trade and Investment Partnership (TTIP).
“These documents show that the U.S. is simply not interested in an open, transparent [negotiation] process.” — Bill Waren
“These documents show that the U.S. is simply not interested in an open, transparent [negotiation] process,” Bill Waren, a senior trade analyst with Friends of the Earth U.S., a watchdog group, told IPS. “Rather, U.S. representatives have been lobbying on the [E.U. regulatory proposal] in a way that reflects the interests of Chevron, ExxonMobil and others.”
The oil industry has repeatedly expressed concern over the European Union’s potential tightening of regulations around transport fuel emissions, first proposed in 2009 for what’s known as the Fuel Quality Directive (FQD). Yet according to a report released Thursday by Friends of the Earth Europe, the sector now appears to have convinced the U.S. government to work to permanently block the implementation of this standard.
Current negotiating texts for the TTIP talks are unavailable. But critics say the negotiations are forcing open the massive E.U market for a particularly heavy form of petroleum known as tar sands oil, significant deposits of which are in the Canadian province of Alberta.
“Since the adoption of the revised Fuel Quality Directive in 2009, the international oil companies … petroleum refiners, the Canadian government and the Albertan provincial government have spent enormous resources and used aggressive lobbying tactics to delay and weaken the implementation proposal,” the new report, which is being supported by a half-dozen environmental groups, states.
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“The oil industry and the Canadian government … are afraid that the FQD could set a precedent by recognising and labelling tar sands as highly polluting and inspire similar legislation elsewhere.”
At issue is the mechanism by which the European Union would determine the greenhouse gas emissions of various types of oil and gas. As part of Europe’s broader climate pledges, the FQD was revised to reduce the emissions of transport fuels by six percent by the end of the decade.
In 2011, the E.U. proposed that tar sands and other unconventional oils be formally characterised as having higher greenhouse gas “intensity” than conventional oil, given that they require more energy to produce – 23 percent higher, according to a study for the European Commission.
Yet tar sands have received massive interest from oil majors in recent years. Some 150 billion dollars were invested in Canadian tar sands between 2001 and 2012, according to Friends of the Earth, a figure expected to grow to nearly 200 billion dollars through 2022.
“Major oil investors want to immediately move as much tar sands oil as possible to Europe,” Waren says. “Over the longer term, they want to get the investments that will allow them to develop the infrastructure necessary to ship that exceptionally dirty fossil fuel to Europe.”
Many investors likely assumed the Canadian tar sands oil would have a ready market in the United States. But not only is the U.S. economy reducing its dependence on oil – particularly imports – but the trans-national transport of Canadian tar sands oils has become a major political flashpoint here, and remains uncertain.
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