Greenhouse gas mitigation and energy policy, a European perspective Presentation by Cristóbal Burgos European Commission In-Session Workshop on climate change mitigation Hotel Maritim, Bonn 19 June 2004 European.
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Greenhouse gas mitigation and energy policy, a European perspective Presentation by Cristóbal Burgos European Commission In-Session Workshop on climate change mitigation Hotel Maritim, Bonn 19 June 2004 European Commission DG TREN / C: Conventional Energy 18.06.2004 Context of the EU energy policy Need for imports: External dependence of EU forecast to rise from current 50% to 70% in 2030 Climate change: CO2 emissions forecast to rise by over 5% from 2000 to 2010 Rising demand: Demand for energy in transport could rise by 20% (passengers) and 30% (freight) in next 20 years Demand for electricity could rise by 2% pa (3% in new Member States). Technology development: No dramatic breakthrough of renewables expected under current market conditions New, enlarged internal market requires investments in new, cleaner infrastructure European Commission DG TREN / C: Conventional Energy 18.06.2004 A starting point: the approach of the EU Green Paper European Commission’s Green Paper on security of supply: • Develops long term integrated approach to energy supply and demand, taking into account development needs of rich and poorer nations and need to protect environment • Proposes step change in energy use needed to de-couple economic growth from rising energy needs • Looks to stable but dynamic markets to innovate and invest in new, cleaner and more efficient technologies and infrastructure. European Commission DG TREN / C: Conventional Energy 18.06.2004 1. Setting targets • Double the share of renewable energy in national gross energy consumption from 6% to 12% by 2010. • Renewables Directive commits MS to introduce targets for share of renewables in electricity generation (average of 22% by 2010 from 14% today) • Biofuels Directive sets targets for a minimum share of biofuels for transport (5.75% by 2010 and 20% by 2020). • Proposed Energy efficiency directive would bind Member States to saving 1% more energy than has been the case over the last 5 years European Commission DG TREN / C: Conventional Energy 18.06.2004 2. Changing the legal framework • New EU legislation will enforce greater demand management, eg • Better energy performance of building • Wider use of energy labelling • Minimum energy efficiency standards • Proposals for cleaner vehicles, more ecological design for energy using products and higher end use energy efficiency European Commission DG TREN / C: Conventional Energy 18.06.2004 3. Creating a more diversified energy base • New EU legislation has given clear political backing to alternative and non-conventional energy sources by - setting a minium share of renewables in electricity generation - supporting the wider use of clean cogeneration (CHP) - setting targets for the use of biofuels in transport and permitting tax reductions for biofuels European Commission DG TREN / C: Conventional Energy 18.06.2004 4. Stimulating research and investment • EU’s 6th RTD Framework Programme focusses on clean energy sources and low carbon technologies and gives greater emphasis to core priorities • EU single energy market legislation encourages innovation and creates conditions for greater investment in energy efficiency • EU emissions trading will create incentives and release funds to improve efficiency and invest in low carbon technologies European Commission DG TREN / C: Conventional Energy 18.06.2004 5. Providing information and access to know-how • Intelligent Energy Programme promotes clean technologies and energy efficient practices and enhances the impact of results of projects • EU supports information networks and internet services for industry, public sector and the general public (eg OPETs, Managenergy etc) • Clean vehicle and hydrogen task forces will pool expertise and increase international synergies European Commission DG TREN / C: Conventional Energy 18.06.2004 6. Taking an international role Commission took leading role in securing positive outcome for developing countries at Johannesburg World Summit on Sustainable Development and its follow up • New priority given to improving energy collaboration with key energy producers and consumers (Russia, CHINA, USA) and extending this to energy demand issues • New Neighbourhood policies will help to extend benefits of EU approach to neighbouring countries and regions to the east and south European Commission DG TREN / C: Conventional Energy 18.06.2004 Second ECCP Progress Report : ex-ante mitigation potential • Supply of energy: current proposals emission reduction potential of 150Mt CO2eq. • Energy demand measures: potential in the first commitment period estimated at 214-259 Mt CO2eq. European Commission DG TREN / C: Conventional Energy 18.06.2004 Conclusions Depite progress, obstacles remain • Social, fiscal and economic structures which result in persistently growing demand for imported oil and gas and electricity • Consumers’ lack of motivation to invest in cleaner and more efficient energy use and production • Energy supply depends on decisions in other areas, such as international relations, environment, tax, agriculture, research, competition – which have different objectives European Commission DG TREN / C: Conventional Energy 18.06.2004