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Europe Daily Bulletin No. 11103
SECTORAL POLICIES / (ae) energy

Binding 2030 objective on energy efficiency being debated

Brussels, 18/06/2014 (Agence Europe) - Against the backdrop of the Ukrainian crisis and the risks for the EU's security of supply, the issue of what form the EU 2030 energy efficiency objective should take is rousing lively debate among the 28 EU member states.

Germany argues for a compulsory energy saving objective for 2030. “We've haven't really succeeded in taking account of the importance of energy efficiency. If we speak about reducing dependence on imports we can't allow ourselves not to take advantage of one of the tools available for achieving this - saving energy”, said Germany's economy minister, Sigmar Gabriel, at the Energy Council on 13 June. He urged the member states to opt for a binding objective for energy efficiency as part of the 2030 climate and energy policies. In Luxembourg last Friday, Denmark's energy minister, Helveg Petersen, also called for a binding objective - as did European Commissioner for Energy Günther Oettinger.

On the basis of a draft tabled by the European Commission in January (see EUROPE 11002), the EU is still reflecting on the form that an energy efficiency objective should take within the 2030 Energy/Climate framework - which provides for a 40% reduction in greenhouse gas emissions compared with 1990 and a renewable energy target of at least 27% of primary energy consumption. Although energy efficiency is defined as a key part of this framework - a framework which is due to be finalised for October - the Commission wants to wait for this summer's review of the 2012 energy efficiency directive before making a proposal. The EU has already set itself a 20% energy efficiency objective for 2020, but this is only voluntary. In order to reach a binding objective, the EU member states will have to review standards in the construction of buildings, insulation, heating networks, lighting and electricity networks.

The main debate focuses on models for estimating the percentage of gas imports - imports which could be reduced with a higher level of energy efficiency. According to a draft document on the Commission's estimates, quoted by the Financial Times on 17 June, an increased energy efficiency objective of 25% by 2030 could reduce EU gas imports by 9%, while a 35% objective would cut them by a third. Germany and Denmark support a “robust” energy efficiency objective which would require the EU member states to save 30-35% of fuel in 2030 compared with 2007, according to the Financial Times. As energy efficiency is considered the most profitable means of reducing greenhouse gas emissions, Berlin has made it a key part of its abandonment of nuclear energy. Germany wants real estate that is virtually carbon neutral by 2050 and it is focusing on large cuts in the energy consumption of transport.

While many member states were not much in favour of an energy efficiency objective during their initial examination of the 2030 framework at the Spring European Council, the Ukrainian crisis and the fears of disruption to supplies of Russian gas have changed the situation. Nevertheless, opposition to a binding objective remains strong. The Eastern European countries fear that 2030 objectives that are too ambitious would engender disproportionate costs because they would require a recast of the inefficient Soviet-era central heating systems that dominate their urban areas. The UK rejects a separate energy efficiency objective but supports an ambitious objective for cutting greenhouse gas emissions, arguing for the member states to have the freedom of choice as to how to cut these emissions.

Elsewhere, fears are being voiced at European administration expert level that a binding energy efficiency objective might distort the emissions quota trading system. A compromise being discussed provides for the creation of an obligatory objective for the whole EU rather than specific binding objectives for each member state. Whilst discussions are based on a 30-35% objective, some member states would prefer a lower objective of 27%. (EH)

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