Brussels, 22/01/2014 (Agence Europe) - Between now and 2030, a 40% reduction in greenhouse gas emissions compared to 1990 figures as a binding objective, a European objective of at least 27% of renewable energies in the total energy consumption mix - binding upon the EU, even though this will not be translated into binding national targets, in order to avoid the pitfall of the 2020 package - are the proposals made by the European Commission on Wednesday 22 January, in its Climate/Energy 2030 package (EUROPE 11001 and 10998). For the time being, the framework the Commission is proposing for an integrated policy in the fields of climate and energy between now and 2030, the cutting edge of a low-carbon, competitive Europe creating jobs and leading international climate negotiations, contains no new energy efficiency objectives ahead of the revision of the “energy efficiency” directive scheduled for mid-2014. The only legislative proposal the Commission has presented at this stage concerns the long-term structural reform of the European carbon market (ETS) with the creation of an annual market stability reserve in 2021.
In order to create a framework for the exploration and exploitation of shale gas, a long way from the legislation called for by Environment Commissioner Janez Potoènik, the Commission will go no further than a recommendation laying down minimum principles to steer member states which choose to use the technique of large-volume fracking (which include Lithuania, Romania, Poland and the United Kingdom), to manage the environmental and health risks, guarantee transparency for the citizens and to ensure predictability for operators and investors (EUROPE 10998).
A new governance framework guaranteeing a competitive and safe energy system - based on national plans for sustainable, safe and competitive energy, and new indicators to measure progress made in such matters - will complete the mechanism. These are the main pillars of the framework proposed by the European Commission to ensure the EU's transition towards a competitive, low-carbon economy, and allow it to send out a strong signal to its international partners to guarantee the success of the UN climate conference of Paris (COP 21), where a legally binding climate agreement is to be concluded by the end of 2015, involving all parties. That agreement will enter into force in 2020.
The Commission's communication is accompanied by a report on the prices and costs of energy in Europe, assessing the key factors and comparing EU prices with those of its principal trading partners (see other article).
This climate/energy package will be debated by the Environment Council of 3 March, and then by the Energy Council of 4 March, before being brought before the European Council of 20 and 21 March for political arbitration at the highest level. The discussions are expected to be lively, as unanimity is required.
“We have agreed on the long-term course of our energy and climate policy. We are showing that the European Union's leadership in global climate action is uncontestable and we are showing that it can be carried out for the benefit of the economy. Climate change is the challenge of our times, and a genuinely European energy policy is vital for our competitiveness. A 40% reduction in emissions by 2030 is both an ambitious objective and feasible one, and the most effective landmark from the point of view of costs. Bringing the share of renewable energies up to 27% sends out an important signal. It guarantees stability for investors, stimulates green jobs and supports our security of supply”, Commission President José Manuel Barroso told the press.
Connie Hedegaard, Commissioner for Climate Action, took the view that this package “marks a new chapter towards a low-carbon European society, by following a degressive trajectory towards an 85% reduction in emissions by 2050”. She added that a 40% reduction in emissions is a “realistic objective which remains ambitious”, although the environmental NGOs have pointed out that in order to comply with the objective of keeping the increase in temperatures at 2°C, a 55% reduction in emissions would be required by 2030 and 95% by 2050. “We are on track to achieve a reduction of 24% by 2020, but it will take major efforts to achieve 40% by 2030”, she warned. Welcoming the innovation represented by the binding nature of the European objective of at least 27% from renewables, she expressed her hopes that “the governments and the European Parliament will have the political courage” to support it. “If all of the major economies set themselves a similar objective, the fight against climate change would go much better", she said.
“If we move to 27% of renewables by 2030, this mean that we will have 45% of electricity produced from renewables” said Energy Commissioner Gunter Oettinger. In order to justify the absence of a new energy efficiency objective, he pointed out that the Energy Efficiency directive is a “young directive” which is due to be re-examined in July on the basis of the transposition reports. “These reports will allow us to act in order to present new measures to be adopted from 2015. As of September, we need new measures to be launched”, he said.
Cutting emissions - the binding objective of 40% will be achieved only by measures taken nationally (without the option of credits obtained in return for green investments in third countries). The annual reduction of the ceiling of emissions from sectors covered by the ETS will rise from 1.74% to 2.2% after 2020. Emissions from sectors not covered by the ETS should be cut by 30% compared to 2005 levels, with a fair share-out of efforts between the member states. The Commission calls upon the Council and the European Parliament to agree, by the end of this year, for the EU to commit to reduce its emissions by 40% early in 2015, in the framework of international negotiations.
Renewables - the binding objective of at least 27% at EU level will not be translated into national objectives by EU legislation, in order to allow the member states a certain amount of leeway to transform their energy mixes, whilst taking account of their national preferences and specific characters (Poland is 90% coal-dependent for its electricity production). Achieving the EU objective would be guaranteed by the new governance system, based on the national energy plans.
Energy efficiency - improving energy efficiency will help towards all of the objectives of the EU energy policy and no transition to a competitive, safe and sustainable energy system will be possible without this progress. The role of energy efficiency in the framework for 2030 will be analysed in greater depth when the directive on energy efficiency is revised, to be finalised over the course of the year. Once this revision has been completed, the Commission will examine the need for changes to the directive. The national energy plans of the member states will also cover energy efficiency.
ETS reform - the Commission is proposing to establish a market stability reserve as of 1 January 2021, by creating a reserve made up of a percentage of surplus quotas to function in accordance with pre-defined rules, which would give the Commission and member states no discretionary powers in its implementation (see EUROPE 11001). This mechanism would be designed both to remedy the problem of surplus emissions quotas which have built up in recent years and to improve the resilience of the system to major disturbances by automatically adapting the volume of quotas to be auctioned.
Competitive, affordable and safe energy - the Commission has proposed a raft of key indicators to assess progress made and to provide a factual basis which would be used, if required, to develop a strategic response. These indicators relate to differences in energy prices compared to the main commercial partners, the diversification of energy supply and use of indigenous energy sources, as well as the interconnection capacity between the member states. Thanks to these indicators, the policies will guarantee a competitive and safe energy system by 2030, which will continue to be based on market integration, the diversification of supply, increased competition and the development of indigenous energy sources as well as on support for research, development and innovation.
New system of governance - based on the forthcoming guidelines from the Commission, plans for competitive, safe and sustainable energy will be established by the member states in the framework of a common approach, which will guarantee investors greater legal security and greater transparency whilst reinforcing consistency, as well as coordination within the EU and surveillance. An iterative process between the Commission and the member states will guarantee that the plans are sufficiently ambitious and that they remain consistent and compliant over time. (AN/transl.fl)