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2030 EU climate and energy goals

Hydrocarbon Engineering,

The pillars of the new EU framework on climate and energy for 2030 include;

  • A reduction in GHG emissions by 40% below the 1990 level.
  • An EU wide binding target for renewable energy of at least 27%.
  • Renewed ambitions for energy efficiency policies.
  • A new governance system.
  • A set of new indicators to ensure a competitive and secure energy system.

The framework is supported by detailed analysis on energy price and costs which will hopefully ensure regulatory certainty for investors and a coordinated approach among Member States, leading to the development of new technologies. The framework aims to drive continued progress towards a low carbon economy and a competitive and secure energy system that ensures affordable energy for all consumers, increases the security of the EU’s energy supplies, reduces dependence on energy imports and creates new opportunities for growth and jobs, by taking into account potential price impacts on the longer term.

Key elements

A binding GHG reduction target

The reduction of emissions by 40% to below 1990 levels will hopefully be met through domestic measures along. The annual reduction in the cap on emission from EU ETS sectors would be increased from 1.74% now to 2.2% after 2020. Emissions from sectors outside the EU ETC would need to be cut by 30% below the 2005 level, and this effort would be shared equitably between the Member States. The Commission invites the Council and the European Parliament to agree by the end of 2014 that the EU should pledge the 40% reduction in early 2015 as part of the international negotiations on a new global climate agreement due to be concluded in Paris at the end of 2015.

EU wide binding renewable target

This will be driven by a more market oriented approach with enabling conditions for emerging technologies, an EU wide binding target for renewable energy of at least 27% in 2030 comes with significant benefits in terms of energy trade balances, reliance on indigenous energy sources, jobs and growth. An EU level target for renewable energy is necessary to drive continued investment in the sector. However, it would not be translated into national targets through EU legislation, thus leaving flexibility for Member States to transform the energy system in a way that is adapted to national preferences and circumstances. Attainment of the EU renewables target would be ensured by the new governance system based on national energy plans.

Energy efficiency

An improvement in energy efficiency will contribute to all objectives of EU energy policy and no transition towards a competitive, secure and sustainable energy system is possible without it. The role of energy efficiency in the 2030 framework will be considered further in a review of the Energy Efficiency Directive due to be concluded later this year.

Reform of EU ETS

The Commission has proposed to establish a market stability reserve at the beginning of the next ETS trading period in 2021. The reserve would both address the surplus of emission allowances that has built up in recent years and improve the system’s resilience to major shocks by automatically adjusting the supply of allowances to be auctioned. The creation of such a reserve is supported by a broad spectrum of stakeholders. Under the proposed legislation, the reserve would operate entirely according to predefined rules which would leave no discretion to the Commission or Member States in its implementation.

Competitive, affordable and secure energy

A set of key indicators to assess progress over time and to provide a factual base for potential policy response has been proposed. These indicators relate to, for example, energy price differentials with major trading partners, supply diversification and reliance on indigenous energy sources, as well as the interconnection capacity between Member States. Through these indicators, policies will ensure a competitive and secure energy system in a 2030 perspective that will continue to build on market integration, supply diversification, enhanced competition, development of indigenous energy sources, as well as support o research, development and innovation.

New governance system including national plans for competitive, secure and sustainable energy

This is based on upcoming guidance by the Commission, these plans will be prepared by the member States under a common approach, which will ensure stronger investor certainty and greater transparency, and will enhance coherence, EU coordination and surveillance. An interactive process between the Commission and Member States will ensure the plans are sufficiently ambitious, as well as their consistency and compliance over time.

Adapted from a press release by Claira Lloyd.

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