Thread by @DaveKeating

#EUCO leaders have talked through the night on two contentious issues: sanctions against Turkey and raising the EU’s 2030 emissions reduction target.

On thé latter, we’re close to a deal but not quite there yet. Eastern countries want more money for the energy transition.

But they are still stuck on the 2030 climate target as Poland wields its veto, just as it did for the 2050 target.

Last time Poland was bypassed and the target was signed by all except Warsaw. Will they have to do that again now?

PM #Morawiecki says he’ll only drop his climate veto if #Poland can keep more profits from #EUETS emission trading, reportedly telling the other leaders he’ll lose his job if he returns to Warsaw without this concession (having caved on his #EUBudget veto threat last night).

BREAKING: the raised 2030 climate target has been adopted.

Waiting to get clarity on what concessions were made to avoid a Polish veto.

https://twitter.com/vonderleyen/status/1337296607860101120

#EUCO conclusions finally published.

2030 target will "take account of Member States’ different starting points", "taking into account considerations of fairness and solidarity"
consilium.europa.eu/media/47296/10…

The Council conclusions specifically mention the use of fossil fuel natural gas as a 'transition fuel' - meaning it could still be eligible for EU funds and be compatible with the #GreenDeal.

And here's compromise with #Poland:

Commission will consider allowing MS to keep more #EUETS revenues. "Imbalances for beneficiaries of the Modernisation Fund in not receiving revenues that are equivalent to the costs paid by the ETS installations in those MS will be addressed"

#EUCO President @CharlesMichel: "On climate, let’s just say quite a lot of last night was spent discussing this. It wasn’t at all easy because the Commission was very ambitious."

A beaming, visibly relieved (maybe even elated) Commission President @vonderleyen says the climate and budget deals reached overnight mark a great day for Europe.

"This puts us on a clear path toward climate neutrality in 2050, and gives certainty to businesses and citizens."

President Michel dodges a question from @FredSimonEU about specifically what cash concessions were made to Eastern Europe in order to end the Polish veto on 2030 climate target.

Michel: "We’ll come back to the #EUCO to continue our discussion on implementation of these measures"

An EU official provides more clarity on what the hold-up was:

💶Modernisation Fund: "Discussions were challenging because a member state was seeking to secure certainty and stability of the funding. Other MS couldn't commit to such certainty". Issue will be dealt with later.

📈#EUETS: Disagreement over whether there should be national targets for economic sectors not in ETS. "Solution was to retain on this issue a role for the European Council."

Essentially, they got a climate agreement by putting off implementation decisions.

#Poland says it's happy with the end result on 2030.

But other leaders are deeply unhappy about Poland's behaviour last night.

One diplomat says #Morawiecki was exploiting tomorrow's #ParisAgreement anniversary time pressure to extract extra cash for Warsaw.

So what's next after #EUCO leaders overcame #Poland's veto this morning and adopted the #EU2030 target?

Many things have been kicked into next year for the Commission to decide.

My article for @Forbes:
forbes.com/sites/davekeat…

Last update for the night before I finally get some much-needed sleep.

A quick explanation of why Poland was able to extort cash from the EU last night in exchange for agreeing the #EU2030 target, and their justifications for doing so.
nymag.com/intelligencer/…