The European Commission has presented its 2030 climate and energy framework, which includes a binding greenhouse gas (GHG) emissions reduction target of 40% below the 1990 level.
Also included in the White Paper are an EU-wide binding target for renewable energy of at least 27% of final energy consumption, renewed ambitions for energy efficiency policies, a new governance system and a set of new indicators to ensure a competitive and secure energy system. With this framework, the Commission aims to provide regulatory certainty for investors and encourage a coordinated approach among Member States.
In a statement released by the Commission, Energy Commissioner Günther Oettinger said that the 2030 framework was the EU's drive for progress towards a competitive low-carbon economy, investment stability and security of energy supply. “My aim is to make sure that energy remains affordable for households and companies. The 2030 framework sets a high level of ambition for action against climate change, but it also recognises that this needs to be achieved at least cost," he said.
Stressing the framework’s contribution to security and investor confidence European Commission President José Manuel Barroso said: "Climate action is central for the future of our planet, while a truly European energy policy is key for our competitiveness. Today's package proves that tackling the two issues simultaneously is not contradictory, but mutually reinforcing. It is in the EU's interest to build a job-rich economy that is less dependent on imported energy through increased efficiency and greater reliance on domestically produced clean energy. An ambitious 40% greenhouse reduction target for 2030 is the most cost-effective milestone in our path towards a low-carbon economy. And the renewables target of at least 27% is an important signal: to give stability to investors, boost green jobs and support our security of supply".
Reaction to the targets set in the framework has been mixed. Representatives from renewable energy organizations believe that the targets set are too low. European Renewable Energy Council (EREC) President Rainer Hinrichs-Rahlwes called the targets set in the framework ‘unambitious’. The EREC and other stakeholders are calling for a mutually reinforcing policy framework, including a binding target for renewable energy of 45% of energy consumption.
EPIA Policy Director Frauke Thies noted that, while the binding 2020 target for renewables proved to be a success story, initiating massive costs reduction and technology leadership in Europe, the Commission's proposal for 2030 had fallen short of expectations. "27% renewables by 2030 is indeed barely more than the Commission's business-as-usual scenario,” she said.
However, representatives from the investment community have been more enthusiastic. Stephanie Pfeifer, chief executive of the Institutional Investors Group on Climate Change, a UK-based platform that encourages public policies, investment practices, and corporate behaviour that address the risks and opportunities associated with climate change, called the new target a good first step. "A 40% emissions reduction target is the minimum necessary to keep Europe on course for a low-carbon economy as outlined in the EU's 2050 Roadmap," she said, adding that achieving this target would be well within Member States’ capabilities and crucial for long-term certainty. The lower than anticipated targets will also be appreciated by European industry, particularly energy intensive industries that struggle to meet renewable and efficiency targets while remaining competitive.
In addition to the GHD and renewable energy targets, the 2030 framework also contains a legislative proposal for a market stability reserve for the EU emissions trading system (EU ETS) starting in 2021, which aims to improve its robustness. With this framework, the Commission aims to drive continued progress towards a low-carbon economy and a competitive and secure energy system while increasing the security of the EU’s energy supplies, reducing Europe’s dependence on energy imports and creating new opportunities for growth and jobs.
Both Thies and Hinrichs-Rahlwes concluded that it would now be up to the European Council to give the framework some teeth by turning the figures in the document into national binding targets. All of the proposals put forward by the Commission will now be reviewed at the March and June sessions of the European Council, but it is not expected that formal legislative proposals will be agreed before 2015.
For more information:
http://europa.eu/rapid/press-release_IP-14-54_en.htm
http://www.epia.org/news/press-releases/