Nov
10
Proposed Topic II: Iceland and the EU ETS
November 10, 2010 | Leave a Comment
I intend to examine the necessary legal restructuring for Iceland to emerge from the current financial crisis with a strong economy structured around the restoration of- (1) fishing stocks, (2) wetlands, and (3) the full implementation of the European Union Emissions Trading Scheme (EU ETS). I consider the most profitable and sustainable app[i]roaches to rebuilding Iceland’s economy, identify challenges that emerge and the legal framework which ensures minimal exploitation of Iceland’s natural resources. Iceland has the second largest untapped geothermal energy in the world, and the largest area of pristine wilderness in Scandinavia. Iceland’s geothermal energy is slowly being auctioned off to foreign companies to make up for lost government revenue. It is important for Iceland to find other solutions for creating revenue that will generate long-term employment, and cause minimal exploitation to the environment.
First, I argue for Iceland’s admission to the EU and full adaptation of ETS. An internal working paper released in May 2010 by the European Commission maintains that EU member states could make €26 billion in profit annually by 2020 through auctioning emission permits, and as much as €928 million a year by 2012 through the auctioning of permits to airlines.[ii] The profit Iceland could make, especially in light of their heavy airline traffic and vast geothermal- and hydro energy, will strengthen their economy considerably, and could be incentive to cease further aluminum smelter negotiations with Alcoa. Iceland applied for EU membership in July 2009, negotiations started in July 2010, and now the EU has opened accession talks. The European Commission recognizes that Iceland has already assimilated many of its national laws in accordance with EU laws.[iii] But progress has halted because the EU demands Iceland resolve the continued dispute with the UK and the Netherlands over the money lost when the online Icesave bank collapsed.[iv] Public opposition to joining the European Union is also a challenge.[v] Media and polls document public fear that the EU will regulate fishing quotas and whaling. But joining the EU would ensure vital legal restrictions on excessive external exploitation of geothermal extraction[vi] by means of the full implementation of the EU ETS.[vii] Fully implementing the EU ETS would also give Iceland further incentive to ease their dependency on renewing business contracts with Alcoa, and the planned expansion of aluminum smelters throughout Iceland, which have devastating impact on local farming communities. [viii] Iceland will not join the EU unless Icelanders support the decision in a referendum that may be held in early 2012. According to three polls conducted by Gallup between May and September 2010, 69 percent of those asked oppose Iceland joining the EU. There are concerns expressed by politicians that Iceland will no longer have a say in EU laws affecting national politics. [ix] This is a misconception. By joining the EU, Iceland would gain autonomy. Already a member of the EEA, Iceland implements all laws of the common market, except for agreements on fisheries and agricultural policy. Because a large majority of Iceland’s current laws are decided in Brussels, joining the EU means Iceland has a say laws already adopted by the Icelandic Parliament. Thus, Iceland would gain more autonomy by joining the EU.[x]
Second, I argue for wetland and wildlife restoration. New legislation from the Environmental- and Planning Ministry of Iceland proposes considerable limitation on foreign access to Iceland’s natural resources—the water, wetlands, glaciers, geothermal- and hydro energy for smelters.[xi] Proposals from the United Nations Framework Convention on Climate Change outline the importance, and potential profit, of implementing a legislative remedy to wetland restoration.[xii] Restoring drained and degraded wetlands would reduce carbon, nitrous oxide and methane from the atmosphere—an innovative means for Iceland to meet their annual EU ETS emissions requirements.
Third, I argue for the commitment to fish stock restoration. Fish stock restoration is vital to the Icelandic economy as 60% of Icelandic exports are fish products.[xiii] In order to restore fishing stocks, there must be strict government regulation. But citizens and politicians are also wry of outside intervention in national fishing matters, and fears are often publicly expressed that joining the EU will cause outside intervention in national quota laws.[xiv] Public distrust is exemplified by a history of fishing “wars” with the United Kingdom, most famously the Cod-wars.[xv] To combat the dangers of fish depletion, fishing stocks must be restored through stricter government regulation, which ensures appropriate national laws are in place to protect Iceland’s fishing interests before the country joins the EU.
My paper will explore how the implementation of the EU ETS, and legal restructuring which mandates restoration of fishing stocks and wetlands, can fuel Iceland’s economy, and create long-term job solutions that do not disappear when natural resources are tapped out. I will consider why joining the EU will give Iceland more autonomy by allowing the country to contribute to EU discourse on laws which have already been adopted.
[ii] Wit, Ron, Bart Boon, André van Velzen, Martin Cames, Odette Deuber, and
David Lee, “Giving Wings to Emissions Trading: Inclusion of Aviation Under the European Emission Trading System, Design and Impacts,” European Commission, May 2010,
http://ec.europa.eu/environment/climat/pdf/aviation_et_study.pdf (accessed October 8, 2010).
[iii] “EU Enlargement: The Next Eight,” BBC World News, http://www.bbc.co.uk/news/world-europe-11283616 (accessed September 14, 2010).
[iv] Neelman, David, “Grimsson Says Iceland Seeks Solution in Depositor Spat: Video,” Washington Post Online, http://www.washingtonpost.com/wp-dyn/content/video/2010/09/14/VI2010091407299.html (accessed September 24, 2010).
[v] “Many Icelanders Keen on Adopting Euro, Mixed on EU,” Gallup,” http://www.gallup.com/poll/118381/icelanders-keen-adopting-euro-mixed.aspx (accessed October 5, 2010).
[vi] Sigurjónsson, Júlís, “Forsetar Raeddu Orkumalin,” Morgunbladid,” http://www.mbl.is/mm/frettir/innlent/2010/09/19/forsetar_raeddu_orkumalin/ (accessed September 19, 2010).
[vii] “Establishing a Scheme for Greenhouse Gas Emission Allowance Trading Within the Community and Amending Council Directive 96/61/EC,” Journal of the European Union, http://eurlex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2003:275:0032:0032:EN:PDF (accessed September 14, 2010).
[viii] Del Giudice, Marguerite, “Power Struggle,” National Geographic Magazine, http://ngm.nationalgeographic.com/2008/03/iceland/del-giudice-text (accessed September 22, 2010).
[ix] Brown, Ian T., “Many Icelanders Keen on Adopting Euro, Mixed on EU,” Gallup, http://www.gallup.com/poll/118381/icelanders-keen-adopting-euro-mixed.aspx (accessed October 5, 2010).
[ix] As proposed, but never implemented, by Icelandic parliament for AWG-KP 6, part I meeting in Acura 2008.
[x] Van Treek, Sophia, “Sophia and the EU,” The Reykjavik Grapevine, http://www.grapevine.is/Home/ReadArticle/Sophia-And-The-EU- (accessed October 18, 2010).
[xi] “Legislation,” Ministry for the Environment, Iceland, http://eng.umhverfisraduneyti.is/legislation/ (accessed October 5, 2010).
[xii] United Nations Framework Convention on Climate Change, “Iceland – Economic Analysis of Climate Change Mitigation Potential,” KP Workshop, Bonn, 27 March 2009, http://unfccc.int/files/kyoto_protocol/application/pdf/1_8_iceland.pdf (accessed October 18, 2010).
[xiii] Food and Agriculture Organization of the United Nations, “FAO Country Profiles, Iceland,” Food and Agriculture Organization of the United Nations, http://www.fao.org/countryprofiles/index.asp?lang=en&iso3=ISL&subj=4 (accessed October 18, 2010).
[xiv] McFarlane, Andrew, “Why Is Britain Braced for a Mackerel War?” BBC World News, http://www.bbc.co.uk/news/magazine-11062674 (accessed August 25, 2010); BBC News, “Faroes and Iceland urged to back down over mackerel,” BBC News, http://www.bbc.co.uk/news/uk-scotland-11199799 (accessed September 10, 2010); BBC News, “Scottish fishermen are to boycott a meeting in the Faroe Islands over the host country’s decision to unilaterally increase mackerel quotas,” BBC News, http://www.bbc.co.uk/news/uk-scotland-11199799 (accessed September 10, 2010).
[xv] The Cod wars, or Þorskastríðin, was a series of territorial confrontations in the 1950s and 1970s regarding fishing rights in the Atlantic between the United Kingdom and Iceland. In 1976 Britian deployed naval vessels within the disputed waters and Iceland treatened to close the major NATO base in Keflavik—the dispute ended shortly thereafter.
BBC News, “1975: Attack on British vessels heightens Cod War,” BBC News, http://news.bbc.co.uk/onthisday/hi/dates/stories/december/11/newsid_2546000/2546045.stm (accessed September 22, 2010).
