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Europe Daily Bulletin No. 9414
A LOOK BEHIND THE NEWS / A look behind the news, by ferdinando riccardi

Matters that have to be cleared up on renewable and nuclear energy

A general survey of the problems and prospects of the European energy policy (see this column in our edition of yesterday and Monday) cannot omit the EU's not negligible own resources of oil, gas and coal. They account, however, for a decreasing share of our needs, and what is being discussed for the future are renewables and nuclear energy. For renewables, the policy stance is clearly positive and the targets ambitious.

Nuclear energy, reflection has begun. For nuclear power, the situation is clear politically: Europe will not impose anything, it is neither in favour nor against, it will be up to each member state to decide. The institutions, however, do not avoid assessments and are calling for discussion. The final paragraphs of the “action plan” approved by the Spring summit were devoted to this issue. Heads of government referred to the Commission's assessment of what nuclear power can bring in response to growing concerns over security of supply and CO² emissions, and took three initiatives: a) to support research and development on waste management under the 7th research programme; b) considered setting up a high level group on nuclear safety and waste management; and c) called for full discussion on the potential and risks of nuclear energy. The language was cautious, but the content looked very much like an opening.

At the same time, opposition remained strong in some quarters, within the European Parliament and elsewhere. The parameters to be considered are many. I propose to return to them in the near future.

A complicated exercise. For renewable energy, the first problem is how to share among the member states the target set by the EU, that renewable energy sources should account for 20% of overall energy consumption by 2020. The starting points vary enormously from one member state to another, and the summit conclusions show that account has to be taken of this. Setting national targets is a very complicated exercise. The Commission is actively involved, but has yet to say when it will bring forward its proposal, which will cover three sectors: a) electricity production, b) heating and cooling, and c) transport. Each member state will contribute to the targets which affect it, in each of the three sectors, the mix being a matter of national sovereignty. Every member state has demands to highlight. Support measures will be put in place, and the regulatory framework will have to be stable to encourage investment.

Biofuels: reality and populism. The minimum target for biofuels is that, in every member state, they account for at least 10% of the fuel used for transport. Strong objections to this target were raised by ecologists and picked up by the Greens of the European Parliament. They claim that the large scale production of biofuels would have a negative effect on the environment and could compromise food production. In my opinion, there is a certain amount of populism in these warnings, which place growing plants (cereals, maize, rape, sugar cane etc) specifically for biofuel production and the use of the biomass (agricultural and other waste) on the same level. Certainly, biofuel production can itself use a great deal of energy and lead to the destruction of forests. But not in Europe! It is a problem affecting some parts of Asia and South America. The accusation that food resources will be diverted towards the petrol pump and the call to choose between eating and driving, is pure populism, particularly from political forces which encourage the destruction of the EU agricultural policy through the opening of Europe's borders. Second generation biofuels, which will develop in the EU if the appropriate agricultural conditions are found and if the interests of the farmers, as well as those of industrialists and oil producers, are taken into account, will see these unjustified objections and reservations overcome.

The third key point. A few words in conclusion on energy saving. A great deal has been done, a lot remains to be done. The summit was ambitious. Paragraph 6 of the action plan is quite detailed, and contains intermediate targets for 2008 and 2009. The overall target is as high as the target for renewable energy: 20% of total energy consumption by 2020. In other words, in terms of current total energy consumption projections, savings must be the same as the entire production of all renewable energy. At the same time, the Commission has been called on to draw up a new draft international agreement on energy efficiency.

(F.R.)

 

Contents

A LOOK BEHIND THE NEWS
THE DAY IN POLITICS
GENERAL NEWS
ECONOMIC INTERPENETRATION