The second progress report on the planned Energy Union, which was presented by the European Commission on Wednesday 1 February, shows that the modernisation of the EU economy and the transition to a low-carbon energy system are making good headway.
This document, which takes stock of the Energy Union, the vast European integration project in the field of energy launched by the Juncker Commission in early 2014 to reinforce the energy independence of the EU and support its sustainable transition, stresses new progress in the implementation of the energy and climate targets of the bloc up to 2020, since the first progress report of November 2015 (see EUROPE 11433).
First and foremost, it stresses that the EU has succeeded in uncoupling the growth of its GDP, which grew by 50% between 1990 and 2015, from that of its carbon emissions, which fell by 22% the same period.
The EU is also on the right track in the renewable energy sector, the share of which in the energy mix of the EU has grown from 16% in 2014 to 16.5% in 2015, according to the initial figures, putting the EU as a whole on track to achieve its target of 20% by 2020. Furthermore, renewables generated 27.5% of all electricity produced in 2014 compared to 21.7% in 2011, a share that is expected to reach 50% by 2030. According to the report, the EU's initial efforts to promote the use of renewables gave a shot into the arm to this steady growth, leading to a reduction in the costs of green energy, making it viable and, in some cases, cheaper than fossil fuels. The sector is playing a key role for the EU economy, turning over nearly €144 billion in 2014 and employing more than 1 million people. On the other hand, European investments in the sector have fallen by more than 50% to stand at €44 billion in 2016, against global trends (more than €260 billion of investment globally last year).
The Commission is also confident that the EU is on track to achieve its target of 20% improvement in energy efficiency by 2020. As regards the final consumption of energy (energy used by end-users - residential consumers, industry and services), Europe has already hit its 2020 target: in 2014, it consumed 1.062 trillion tonnes of oil equivalent (Mtoe), or 2.2% less than the indicative target of 1086 Mtoe by 2020, and final energy consumption fell by 11% between 2005 and 2014. As regards the consumption of primary energy (including final energy consumption, the production sectors and distribution losses), Europe has still to meet its 2020 target: it used 1507 Mtoe in 2014, which is 1.6% higher than the target of 1483 Mtoe for 2020. Even so, the EU is on the right track, as it primary energy consumption fell by 12% between 2005 and 2014, although consumption of primary energy rose slightly from 2014 to 2015.
As regards the EU's leadership line for climate diplomacy (the swift ratification by the EU of the international agreement on the climate of 2015 allowed it to enter into force at the end of 2016), the EU is making progress in energy diplomacy, aiming to reinforce the security of energy supply for the EU thanks to increased diversification, to increase its exports of green technologies and boost Europe's industrial competitiveness, the Commission stresses.
2016 saw the Energy Union strategic framework laid down in 2014 fleshed out with two packages of measures (including legislative and non-legislative initiatives): the package on gas security, which was tabled in February (see EUROPE 11491), and the clean energy package presented in November (see EUROPE 11679). Additionally, the Commission has presented a European strategy for low-emission mobility, aiming to reduce the greenhouse gas emissions of the transport sector by at least 60% to their 1990 levels, with the ultimate aim of a zero rate, the Vice-President of the Commission with responsibility for the Energy Union, Maroš Šefčovič, said on Wednesday.
Šefčovič did, however, have a few negative points to reiterate: - the insufficient electricity interconnection level between member states, with eleven of them still failing to reach the threshold of 10% and seven member states still facing bottleneck issues; - the evolution of retail prices is not following the downwards trend of wholesale prices, feeding into the increase in energy poverty noted since 2005.
This stock-take will be followed by a further in-depth analysis of the policies of member states, with Šefčovič planning to tour Europe throughout 2017 to campaign to stimulate the rapid implementation of the Energy Union at several levels. At the level of the member states, Šefčovič will discuss the national energy and climate plans and ensure that these instruments are presented by the end of 2017. At local level, his tour will allow him to present the most promising and innovative local projects at urban and regional levels to stimulate their financing, a dossier on which the Commission is working closely with the Committee of the Regions. (Original version in French by Emmanuel Hagry)