Brussels, 18/01/2008 (Agence Europe) - As part of its “energy and climate” package which brings together measures to combat global warming (see other news item), the European Commission proposed a directive on Wednesday 23 January to implement the objectives on renewable energy adopted by the European Council of March 2007 at Community level (EUROPE 9383).
Guiding principles. In its legislative proposal, the Commission sets national objectives for each member state which will combine to achieve an overall binding objective of 20% (of total primary consumption) of the EU's energy mix to come from renewable sources by 2020. This figure of 20% compares to a share of the EU's energy mix in 2005 of 8.5% from renewable sources. Three sectors are concerned: electricity, heating/refrigeration and transport. For the transport sector, each member state will be assigned a minimum binding objective of 10% of the overall consumption of petrol and diesel to come from biofuels by 2020. This figure compares to the non-binding objective of 5.75% by 2010 set in the current directive on biofuels which, generally speaking, will not be adhered to.
Although the draft directive on the promotion and use of renewable energy sets a series of gradual overall objectives for 2012, 2014, 2016 and 2018 (not for biofuels), the member states will retain the ability to decide how to spread their national efforts across the three sectors in order to achieve the national objectives. Each member state will therefore be able to choose the methods which are best adapted to the national situation and potential. The member states will also have the possibility to achieve their objectives by supporting the development of renewable energy in other member states and third countries through the creation of a transferable guarantee of origin scheme: instead of developing domestic renewable energy sources, member states could buy guarantees of origin (certificates proving the renewable source of energy) from other member states where the production of renewable energy is less problematic.
Finally, the directive includes provisions designed to eliminate obstacles to the growth of renewable energy, in particular by simplifying the administrative procedures for new developments in this area, and encouraging the development of improved sources of renewable energy (setting ecological viability standards for biofuels, for example).
The member states would have to transpose the legislation at national level and submit their implementation plans by 31 March 2010 at the latest. (E.H.)
Method used to calculate the objectives and efforts for each member state. In order to achieve the overall objective of 20% of energy from renewable sources, the Commission has attempted to distribute action across the member states as fairly as possible, using a 5 step approach (see also EUROPE 9583): - the share of renewable energy in the EU's energy mix in 2005 (base year for all calculations in the energy and climate package) was modulated to reflect the starting point at national level and efforts already made by member states that achieved an increase in renewable energy of more than 2% between 2001 and 2005; - for each member state 5.75% is added to the modulated 2005 renewable energy share; - the remaining effort (0.16 tonnes of oil equivalent for every individual living in the EU) is weighted by a GDP per capita index to reflect different levels of wealth from state to state, then multiplied by the population of the member state; - these two elements are added together to obtain the complete renewable energy share of total final energy consumption in 2020; - finally, an overall cap (50%) setting a limit for the maximum effort demanded per member state (in reality this is only applied to Sweden, which is assigned an objective of 49%). At the same time, as seen above, the creation of a transferable guarantee of origin scheme should allow the member states to achieve their objectives in the most cost-effective manner possible.
The efforts demanded per member state are as follows: Austria (34% of the national energy mix from renewable energy in 2020); Belgium (13%); Bulgaria (16%); Cyprus (13%); Czech Republic (13%); Denmark (30%); Estonia (25%); Finland (38%); France (23%); Germany (18%); Greece (18%); Hungary (13%); Italy (17%); Ireland (16%); Latvia (42%); Lithuania (23%); Luxembourg (11%); Malta (10%); Netherlands (14%); Poland (15%); Portugal (31%); Romania (24%); Slovakia (14%); Slovenia (25%); Spain (20%); Sweden (49%); United Kingdom (15%). For comparison, in 2005 the share of the national energy mixes from renewable energy ranged from 0% in Malta to 39.8% in Sweden, with 1.3% in the UK, 2.2% in Belgium, 5.2% in Italy, 5.8% in Germany, 7.2% in Poland, 8.7% in Spain, 10.3% in France and 28.5% in Finland.
Environmental sustainability criteria for biofuels. The 10% target for biofuels for transport was fixed at the same level for all member states in order to ensure consistency in fuel specification and availability destined for transport use. Member states that do not have the necessary resources to produce biofuels for transport “may easily procure such fuels elsewhere”, the Commission said. It added that, although it is technically possible for the EU to meet its biofuel needs through domestic production alone, it is both plausible and desirable that, in reality, such needs are met using not only internal EU production but also imports.
Although the Commission considers that biofuels are an excellent solution to the rise in emissions from transport and that most biofuels currently consumed in the EU are produced in an environmentally sustainable manner, it wished to take account in its proposal of the “legitimate concerns” voiced about the sustainable nature of biofuel production. Its draft text therefore sets out strict environmental sustainability criteria to ensure that biofuels taken into account for achieving the 10% objective for each member state will be compatible with sustainable development and will not compromise the EU's overall environmental objectives. In order to be counted for achieving the objective, biofuels should respect a minimum 35% threshold of CO2 emissions savings compared to traditional fuels. This threshold was preferred to the 50% threshold requested by members of the Commission who expressed the most reservations about “green” fuels. Furthermore, biofuels should not be produced by growing raw materials on land that has hitherto been used to stock carbon or safeguard natural diversity (natural forests, nature conservation areas, wetlands). In 2012, the Commission will study the possibility of extending this system to other forms of bioenergy.
With regards imports, the Commission suggests giving its endorsement to agreements with third countries able to guarantee that the biofuels they produce come from crops grown in full respect of the environmental criteria fixed for Community production.
Economic arguments. The Commission does not fail to justify its strategy in favour of renewable energy sources. Given the impact that renewables have on climate change, energy supply security and long-term economic use, the many advantages of renewable energy sources are broadly recognised, the Commission stresses. An analysis carried out by its services ensures that the achievement of EU objectives for renewables must allow: - reduction of CO2 emissions by way of 600-900 million tonnes annually; - reduction of fossil fuel consumption (largely imported) by way of 200-300 million tonnes annually; - and the relaunching of high tech industry, new economic perspectives and job creation. If the overall cost of its plan is assessed at between €13 and 18 billion annually, the Commission nonetheless considers that investment made will, in time, allow the price of green technology to come down. Also, the certification system allowing investment to be directed towards places where the most profitable renewable energy is produced should ensure savings of €1.8 billion compared to the announced cost.
The Commission takes the view that renewable energies can be unquestionably justified from an economic point of view. They are an economically sustainable alternative solution to hydrocarbons given the surge in oil prices. Also, as biofuels are increasingly used, the EU can expect their cost to fall over time, all the more as a considerable fall has already been registered in recent years. In 2006, investment in green energies increased by 43% worldwide and the commercial proceeds of wind power and solar power, biofuels and fuel cells is expected to reach €150 billion in 2016. The use of renewable energy sources also promotes the use of local and regional labour forces. The renewables sector currently represents a turnover of €30 billion and employs nearly 350,000 persons in the EU. Employment possibilities are plentiful, not only in the high tech manufacturing industries (photovoltaic components) but also in the sector for maintenance of wind power plants or in the field of agricultural biomass. Renewables can also be justified for being environmentally friendly. Energy from fossil fuels has an impact on the environment at all stages of extraction, production, transport and final use. Renewables will allow such adverse effects to be at least alleviated. Also, the EU may find it difficult to reach its targets for reduction of greenhouse gas emissions without significantly increasing the share of renewables in its energy mix. Finally, renewables can be justified from the point of view of energy supply security. While the EU's dependency on a limited number of energy sources (gas and oil), which are becoming increasingly costly, becomes a cause for concern, by producing most of the renewables that it consumes on its own territory, the EU will be less vulnerable to interruptions in supplies and will be able to attenuate the increases in fuel prices. (E.H.)