- Email: [email protected]
EU energy and climate change strategy
Energy 40 (2012) 19e22
Contents lists available at SciVerse ScienceDirect
Energy journal homepage: www.elsevier.com/locate/energy
EU energy and climate change strategyq Maria da Graça Carvalho a, b, * a b
Instituto Superior Técnico, Lisbon, Portugal European Parliament, Brussels, Belgium
a r t i c l e i n f o
a b s t r a c t
Article history: Received 20 September 2011 Received in revised form 3 January 2012 Accepted 6 January 2012 Available online 8 February 2012
This paper will summarise the European Strategy for Energy and Climate Change. In current international negotiations Europe has proposed a 20% reduction in GHG (greenhouse gases) in the developed countries by 2020 or 30% should there be an international agreement in the domain. However it is important to define measures to achieve the targets. One of the principal tools is to improve energy efficiency under the energy efficiency action plan, which will help to achieve a 20% energy saving by 2020. On the other hand, the amount of energy from renewable sources consumed in Europe will have to rise from its current level of 8.5%e20% by 2020. These are ambitious but achievable targets. Nonetheless, these can only be achieved through strong investment in areas of the knowledge triangle which strengthens research and innovation in the energy sector in Europe. The paper covers European Energy and Climate Change Policy, the European Strategic Energy Technology plan, the consequences of the Lisbon Treaty, European and national Road maps to a low carbon economy, the Energy Efficiency Plan for 2011 and finishes with a brief consideration of the EU’s energy infrastructure priorities. Ó 2012 Elsevier Ltd. All rights reserved.
Keywords: European energy and climate change strategy Greenhouse gases Renewable energy Energy efficiency European Strategic Energy Technology plan
1. Introduction Europe will have to confront a number of major challenges in the twenty-first century, something that will have a direct impact on Europe and its place in the world. These challenges include, amongst others, energy security, the ageing of the population and climate change. In so far as climate change is concerned, there is, today, overall consensus on the need to reduce greenhouse gas emissions globally by 50% by 2050. This represents a cut of at least 80% in the industrialised world. This will mean, from now until 2050, considerable re-organisation of the way in which society works (work, transport, leisure, city planning, housing, electricity production). Taken separately, these challenges are threats that we have to face. However taken together, they can be seen as opportunities for a far-reaching transformation of our society. Furthermore, given the finite nature of oil reserves, fundamental societal changes will need to be driven by EU policies over the next decades. q Invited keynote paper from the 24th International Conference on Efficiency, Cost, Optimization, Simulation and Environmental Impact of Energy Systems – ECOS 2011. * Instituto Superior Técnico, Lisbon, Portugal. E-mail addresses: [email protected], mariadagraca.carvalho@ europarl.europa.eu. 0360-5442/$ e see front matter Ó 2012 Elsevier Ltd. All rights reserved. doi:10.1016/j.energy.2012.01.012
There is considerable optimism that a global agreement in the fight against climate change will be reached in the near future, hopefully in South Africa in 2011. The European proposal for an international agreement consists of a cut of 30% of greenhouse gas emissions by 2020 by comparison with levels of 2005. In order to show its commitment, Europe has proposed a unilateral target of reducing greenhouse gas emissions by 20%. The target will be achieved through the use of 20% of renewable energies and an increase of energy efficiency of 20% by 2020. The paper aims at summarising the European strategic vision on energy and climate change as a chance to reshape society in a more sustainable, cooperative and equitable manner, enabling the European economy to prosper while ensuring energy security and fighting climate change. To this end, this paper will summarise existing energy and climate change policy (including the European Strategic Energy Technology plan). It will then go on to briefly discuss the changes brought about by the Lisbon Treaty, something that will enable Europe to strengthen existing energy and climate change policy. Thirdly, the paper will describe current work to further European integration with regard to these policies. This section will discuss the roadmap to a low carbon economy by 2050, the 2011 Energy Efficiency Plan and the EU’s energy efficiency infrastructure priorities for 2020. The last section will be a brief description of policy challenges and budgetary resources for the period following 2013.
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M. da Graça Carvalho / Energy 40 (2012) 19e22
2. The five pillars of European energy and climate change policy The European energy and climate change policy was adopted by the Council and the Parliament in 2008. The main objective of the energy and climate package is to reduce greenhouse gas emissions by 30% in the case of an international agreement or 20% if there is no agreement. When compared with levels of 2005, this is an essential first step on the road to the ultimate goal of reducing global emissions by at least 50% below 1990 levels by 2050. As a result of the energy climate package, Europe’s energy future in an interdependent world now has a clearly defined set of objectives, based on five pillars. First, we will increase energy efficiency, saving 20% of our energy by 2020. Second, we will substantially increase the amount of energy used from renewable sources, tripling renewable energy use to 20% by 2020 (something that requires a 10% biofuel component in transport fuel by 2020 as well). The third pillar involves substantially raising the amount of clean hydrocarbons we consume. Sizeable technological advances are being made to reduce carbon emissions from hydrocarbons, for example through the capture and storage of carbon dioxide. In this respect, coal is of particular importance as it is a relatively cheap fuel, and is widely available in Europe. Fourth, we are strengthening the EU’s carbon market (which already covers 50% of our energy emissions and represents a market value of more than V20 billion). Finally, we are continuing to bolster the internal energy market.
several policy areas of great importance such as the areas of energy, climate change and scientific research. These policies are at the heart of the Europe 2020 initiative, an initiative that embodies the EU’s growth strategy for the next decade. Launched in 2010, Europe 2020 aims at furthering smart, sustainable and inclusive growth to prepare the EU economy for the future. In the Lisbon Treaty, Energy has now become a shared responsibility, paving the way for a common energy policy. The climate and energy package approved in 2008 can now be deepened and more ambitious goals can be set, particularly with regard to security of energy supply, internal energy market and solidarity between Member States. The Lisbon Treaty gives the Union a set of clear objectives: a functioning single internal energy market, security of supply, energy efficiency and the promotion of energy networks and renewable sources of energy. The Union now also has a stronger legal framework and legal basis to act on energy policy (article 194 TFEU). Climate change is one of the spheres of competence shared between the Union and the Member States but the Lisbon Treaty reinforces the efficiency and legitimacy of the Union in this matter. Europe e already a leader in the fight against climate change e can now speak legitimately with one voice. With the Treaty of Lisbon, fighting climate change at an international level becomes a specific objective of EU environmental policy, reinforcing the leading role Europe already plays on the world stage in this area. 5. Roadmap to a low carbon economy in 2050
3. European Strategic Energy Technology plan The objectives of the energy and climate change strategy can only be achieved through major investment in areas of the knowledge triangle: reinforcing research, education and innovation in the energy sector in Europe. In November 2007, the European Commission proposed a European Strategic Energy Technology plan e the SET-Plan e to establish a new research agenda for Europe in the energy area. Energy technologies will be crucial to ensuring energy supply for Europe and the world. To achieve the targets set for 2020 and 2050, the development of new, more efficient and affordable technologies is required. Europe has the potential to develop a new generation of low carbon energy technologies, such as the offshore wind, solar or second-generation biofuels. The European Strategic Energy Technologies outlines a fresh approach, focussing on joint planning (EU level, Members States and regional level), making better use of the potential for European Research and Innovation and fully exploiting the possibilities offered by the market. The plan aims to boost industrial research and innovation, by aligning sectoral, national and European activities. The SET-Plan builds on a set of actions already in place, the EU RTD Framework Programmes (EC and EURATOM), Intelligent Energy-Europe (part of the Competitiveness and Innovation Programme), European Technology Platforms (bringing stakeholders together on research agendas), the ERA-Net scheme (encouraging Member States to coordinate R&D programmes), Networks of Excellence (giving research centres greater opportunity to work together), Joint Technology Initiatives and Joint Programming. 4. The Lisbon treaty The climate and the Energy package was approved in 2008 in spite of the fact that the treaties considered energy a responsibility of the Members States. This perspective changed with the Lisbon Treaty that entered into force in 1 December 2009. The Lisbon Treaty gives new powers to Europe and to EU citizens to act in
Climate change is among the largest environmental, social and economic challenges currently facing mankind. It is also a cross boarder problem requiring coherent EU action. The European Institutions are actually looking beyond the 2020 objectives and setting out a plan to meet the long-term target of reducing domestic emissions by 80e95% by mid-century. The sectors responsible for Europe’s emission e power generation, industry, transport, buildings and construction e must all prepare the transition to a low-carbon economy [1]. In order to meet the 80e95% overall GHG (greenhouse gases) reduction objective by 2050, the Roadmap indicates that a cost effective and gradual transition requires a 40% domestic reduction of greenhouse gas emissions (compared to 1990) as a milestone for 2030 leading to the 80% figure by 2050. Building on what has already been achieved, the EU needs to start working now on appropriate strategies to move in this direction, and all Member States should soon develop national low carbon Roadmaps [1]. Electricity will play a central role in the low carbon economy. It is estimated that the the share of low carbon technologies in the electricity mix will increase from around 45% to around 60% in 2020. This requires significant use of renewables. Investment in smart grids is crucial for a low carbon electricity system, facilitating energy efficiency, an increased shares of renewables, distributed generation and the electrification of transport. Development of energy storage technologies will be fundamental. The key driver for this transition will be energy efficiency. 6. Energy efficiency plan 2011 The EU is on the way to achieving its targets for 2020 of reducing emissions to 20% below 1990 levels whilst raising the share of renewables by 20%. However, much greater efforts are needed to improve energy efficiency by 20%. The objectives for GHG emissions reduction and the share of renewables are binding. This will enable the EU to outperform the current 20% emission reduction target and achieve a 25% reduction. By contrast, the energy
M. da Graça Carvalho / Energy 40 (2012) 19e22
efficiency objective (20%) is not a binding target and recent European Commission estimates suggest that the EU is on course to achieve only half of the 20% objective. Energy efficiency is at the heart of European policies for smart, sustainable and inclusive growth. It is also key to the transition to a resource efficient economy. Moreover, it is one of the most cost effective ways of enhancing security of energy supply and reducing the emissions of greenhouse gases and other pollutants. In many ways, energy efficiency can be seen as Europe’s single most important energy resource. Substantial steps have been taken towards the objective of increasing energy efficiency, notably in the appliances and buildings markets. The EU needs to act now if it is to achieve its target. The new Energy Efficiency Plan [2] aims at responding to the call of the European Council of 4 February 2011 to take ’determined action to tap the considerable potential for higher energy savings of buildings, transport and products and processes’ [3]. The energy efficiency measures will be implemented as part of the EU’s wider resource efficiency goal, encompassing efficient use of all natural resources and ensuring high standards of environmental protection. The greatest energy saving potential lies in buildings whilst transport has the second largest potential. Energy efficiency in industry will be tackled through energy efficiency requirements for industrial equipment, improved information provision for SMEs and measures to introduce energy audits and energy management systems. Improvements to the efficiency of power and heat generation are also proposed, ensuring that the plan includes energy efficiency measures across the whole energy supply chain. A wide range of technologies and methods exist to improve energy efficiency, turn renewables into viable energy sources and reduce emissions. However, market conditions prevent these technologies from reaching their full potential. In order to overcome this problem, the European Union has developed funding programmes. The Intelligent Energy e Europe programme (IEE), for instance, offers a helping hand to organisations willing to improve energy sustainability. The Intelligent Energy e Europe (IEE) programme is giving a boost to clean and sustainable solutions. It supports their use and dissemination and the Europe-wide exchange of related knowledge and know-how. Targeted funding is provided for creative projects putting this idea into practice. The projects help to further the three main objectives: Promoting energy efficiency and encouraging the rational use of energy sources; Increasing the use of new and renewable energy sources as well as encouraging energy diversification; Stimulating energy efficiency and renewables in the field of transport. 7. Energy infrastructure priorities for 2020 In order to implement the energy strategy described in the above sections, a new EU energy infrastructure policy is needed. An integrated European grid will bring enormous benefits in terms of security of supply and the stabilisation of consumer prices. Business and citizens will have access to clean, secure and affordable energy contributing to maintaining a strong, diversified and competitive industrial base in Europe [4]. Europe will define priority corridors for the transport of electricity, gas and oil. This map of priorities will serve as a basis for future permit granting and financing decisions on concrete EU projects. Europe will also favour regional cooperation between countries, defining longer-term goals, such as European electricity highways [5]. In the electricity sector four EU priority corridors have been identified: 1) an offshore grid in the Northern Seas and connection
21
to Northern and Central Europe to transport power produced by offshore wind parks to consumers in large cities, on the one hand, and to store power in the hydro electric power plants in the Alps and the Nordic countries, on the other hand; 2) Interconnections in South Western Europe to transport power generated from wind, solar, hydro to the rest of the continent; 3) Connections in Central Eastern and South Eastern Europe, strengthening the regional network; 4) Integration of the Baltic Energy Market into the European market. In the gas sector, three EU priority corridors have been identified: 1) Southern Corridor to deliver gas directly from the Caspian sea to Europe to diversify gas sources; 2) Baltic Energy Market Integration and a connection to Central and South East Europe; 3) North-South corridor in Western Europe to remove internal bottlenecks and enable the best use of possible external supplies. Around 200 Billion Euro must be invested in energy transport, in gas pipelines and power grids alone. It is estimated that part of this will come from the private sector, leaving a financial gap of 100 Billion Euro [5]. 8. Policy challenges and budgetary resources for a sustainable European union after 2013 Energy security and the fight against climate change in Europe will require major and sustained investment in Europe. Public private financing mechanisms are key to overcoming initial financing risks and cash flow barriers. The European Investment Bank, the European Bank for Reconstruction and Development e as well as dedicated funding in the next Multi-Annual Financial Framework e should play a role in providing additional financing for energy efficient and low carbon technologies [1]. The next Multi-Annual Financial Framework [6] will also examine how EU funding can support instruments and investments that are necessary to promoting the transition to a low carbon economy, taking into account the specificities of sectors, countries and regions. The new multi-annual financial framework should reflect the EU’s political priorities; something that implies that a significantly higher proportion of the budget should be allocated to energy policy, including modern and smart energy infrastructure, energy efficiency, renewable-energy projects, research, development and the deployment of new energy technologies. 9. Conclusions The ambitious targets that Europe has set in order to combat climate change are conditional on international agreements. There is considerable hope that a global agreement will be reached before the end of this year, however. Although climate change is one of the many challenges that Europe has to face at the beginning of the twenty-first century, these challenges can also be seen as a chance to introduce reforms that will help shape a sustainable, cooperative and equitable Europe, enabling the economy to prosper while ensuring energy security and fighting climate change. To this end: 1) The EU has drawn up a European Energy and Climate Change Policy whose five pillars will enable greater energy efficiency, energy saving whilst actively encouraging the use of renewables and clean hydrocarbons alongside more effective use of both carbon and internal markets. 2) The European Strategic Energy Technologies programme e which builds on a number of existing projects e seeks to further research and innovation alongside a number of measures designed to encourage greater cooperation at sectoral, national and European levels.
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3) The Lisbon Treaty paves the way to a coordinated and comprehensive EU energy policy, one in which Europe e already a leader in the fight against climate change e can now speak legitimately with one voice. The climate and energy package can now be deepened and more ambitious goals can be set, particularly on security of energy supply, internal energy market and solidarity between Member States. 4) With regard to the Roadmap to a low carbon economy, all member states should strive to introduce a national low carbon Roadmap if the ambitious targets that have been set in this domain are to be met. Similarly, the different sectors involved in Europe’s emissions should all begin to pull in the same direction. Finally, investment in smart grids will contribute significantly to achieving a low carbon electricity sector. 5) The Energy Efficiency Plan for 2011 is of prime importance (and energy efficiency is perhaps Europe’s prime resource). The current energy efficiency target is not binding and more effort should be made to achieve the projected 20% reduction (with current projections suggesting that only half of this target will be met). Energy efficiency is one of the most cost effective ways of enhancing security of energy supply and reducing the emissions of greenhouse gases and other pollutants 6) As for the energy infrastructure priorities, an integrated European grid will bring enormous benefits in terms of security of supply and the stabilisation of consumer prices. In the electricity sector four EU priority corridors have been identified: In the gas sector, three EU priority corridors have been defined. 7) Policy challenges and budgetary resources devoted to energy security and the fight against climate change in Europe will require major and sustained investment. Public private financing mechanisms will be central in this respect. At the
same time, the achievement of a low carbon economy should be attentive to the particular needs and characteristics of different sectors, countries and regions. In short, we need ambitious measures to deliver a prosperous and sustainable Europe which meets the challenges of climate change and globalisation, and which has become the world leader in clean technologies and a driving force for economic growth and job creation. In this respect, it is desirable that a significantly higher proportion of the budget should be allocated to energy policy. This will include investment in modern and smart energy infrastructure, enhanced energy efficiency, renewable-energy projects in research and development as well as the deployment of new energy technologies. References [1] Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions, A Roadmap For Moving To A Competitive Low Carbon Economy In 2050, COM 2011; 112, Brussels, 8.3.2011. [2] Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions, Energy Efficiency Plan 2011, COM 2011; 109, Brussels, 8.3.2011. [3] European Council Conclusions, 4th February 2011. [4] Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions, Energy infrastructure priorities for 2020 and beyond e A blueprint for an integrated European energy network, COM 2010; 677, Brussels, 17.11.2010. [5] European Commission. Energy infrastructure: commission proposes EU priority corridors for power grids and gas pipelines Available at: http://europa.eu/rapid/ pressReleasesAction.do?reference¼IP/10/1512. [6] GARRIGA POLLEDO, Salvador. Draft report on investing in the future: a new Multiannual Financial Framework (MFF) for a competitive, sustainable and inclusive Europe. Brussels: European Parliament; 2nd March 2011.
Contents lists available at SciVerse ScienceDirect
Energy journal homepage: www.elsevier.com/locate/energy
EU energy and climate change strategyq Maria da Graça Carvalho a, b, * a b
Instituto Superior Técnico, Lisbon, Portugal European Parliament, Brussels, Belgium
a r t i c l e i n f o
a b s t r a c t
Article history: Received 20 September 2011 Received in revised form 3 January 2012 Accepted 6 January 2012 Available online 8 February 2012
This paper will summarise the European Strategy for Energy and Climate Change. In current international negotiations Europe has proposed a 20% reduction in GHG (greenhouse gases) in the developed countries by 2020 or 30% should there be an international agreement in the domain. However it is important to define measures to achieve the targets. One of the principal tools is to improve energy efficiency under the energy efficiency action plan, which will help to achieve a 20% energy saving by 2020. On the other hand, the amount of energy from renewable sources consumed in Europe will have to rise from its current level of 8.5%e20% by 2020. These are ambitious but achievable targets. Nonetheless, these can only be achieved through strong investment in areas of the knowledge triangle which strengthens research and innovation in the energy sector in Europe. The paper covers European Energy and Climate Change Policy, the European Strategic Energy Technology plan, the consequences of the Lisbon Treaty, European and national Road maps to a low carbon economy, the Energy Efficiency Plan for 2011 and finishes with a brief consideration of the EU’s energy infrastructure priorities. Ó 2012 Elsevier Ltd. All rights reserved.
Keywords: European energy and climate change strategy Greenhouse gases Renewable energy Energy efficiency European Strategic Energy Technology plan
1. Introduction Europe will have to confront a number of major challenges in the twenty-first century, something that will have a direct impact on Europe and its place in the world. These challenges include, amongst others, energy security, the ageing of the population and climate change. In so far as climate change is concerned, there is, today, overall consensus on the need to reduce greenhouse gas emissions globally by 50% by 2050. This represents a cut of at least 80% in the industrialised world. This will mean, from now until 2050, considerable re-organisation of the way in which society works (work, transport, leisure, city planning, housing, electricity production). Taken separately, these challenges are threats that we have to face. However taken together, they can be seen as opportunities for a far-reaching transformation of our society. Furthermore, given the finite nature of oil reserves, fundamental societal changes will need to be driven by EU policies over the next decades. q Invited keynote paper from the 24th International Conference on Efficiency, Cost, Optimization, Simulation and Environmental Impact of Energy Systems – ECOS 2011. * Instituto Superior Técnico, Lisbon, Portugal. E-mail addresses: [email protected], mariadagraca.carvalho@ europarl.europa.eu. 0360-5442/$ e see front matter Ó 2012 Elsevier Ltd. All rights reserved. doi:10.1016/j.energy.2012.01.012
There is considerable optimism that a global agreement in the fight against climate change will be reached in the near future, hopefully in South Africa in 2011. The European proposal for an international agreement consists of a cut of 30% of greenhouse gas emissions by 2020 by comparison with levels of 2005. In order to show its commitment, Europe has proposed a unilateral target of reducing greenhouse gas emissions by 20%. The target will be achieved through the use of 20% of renewable energies and an increase of energy efficiency of 20% by 2020. The paper aims at summarising the European strategic vision on energy and climate change as a chance to reshape society in a more sustainable, cooperative and equitable manner, enabling the European economy to prosper while ensuring energy security and fighting climate change. To this end, this paper will summarise existing energy and climate change policy (including the European Strategic Energy Technology plan). It will then go on to briefly discuss the changes brought about by the Lisbon Treaty, something that will enable Europe to strengthen existing energy and climate change policy. Thirdly, the paper will describe current work to further European integration with regard to these policies. This section will discuss the roadmap to a low carbon economy by 2050, the 2011 Energy Efficiency Plan and the EU’s energy efficiency infrastructure priorities for 2020. The last section will be a brief description of policy challenges and budgetary resources for the period following 2013.
20
M. da Graça Carvalho / Energy 40 (2012) 19e22
2. The five pillars of European energy and climate change policy The European energy and climate change policy was adopted by the Council and the Parliament in 2008. The main objective of the energy and climate package is to reduce greenhouse gas emissions by 30% in the case of an international agreement or 20% if there is no agreement. When compared with levels of 2005, this is an essential first step on the road to the ultimate goal of reducing global emissions by at least 50% below 1990 levels by 2050. As a result of the energy climate package, Europe’s energy future in an interdependent world now has a clearly defined set of objectives, based on five pillars. First, we will increase energy efficiency, saving 20% of our energy by 2020. Second, we will substantially increase the amount of energy used from renewable sources, tripling renewable energy use to 20% by 2020 (something that requires a 10% biofuel component in transport fuel by 2020 as well). The third pillar involves substantially raising the amount of clean hydrocarbons we consume. Sizeable technological advances are being made to reduce carbon emissions from hydrocarbons, for example through the capture and storage of carbon dioxide. In this respect, coal is of particular importance as it is a relatively cheap fuel, and is widely available in Europe. Fourth, we are strengthening the EU’s carbon market (which already covers 50% of our energy emissions and represents a market value of more than V20 billion). Finally, we are continuing to bolster the internal energy market.
several policy areas of great importance such as the areas of energy, climate change and scientific research. These policies are at the heart of the Europe 2020 initiative, an initiative that embodies the EU’s growth strategy for the next decade. Launched in 2010, Europe 2020 aims at furthering smart, sustainable and inclusive growth to prepare the EU economy for the future. In the Lisbon Treaty, Energy has now become a shared responsibility, paving the way for a common energy policy. The climate and energy package approved in 2008 can now be deepened and more ambitious goals can be set, particularly with regard to security of energy supply, internal energy market and solidarity between Member States. The Lisbon Treaty gives the Union a set of clear objectives: a functioning single internal energy market, security of supply, energy efficiency and the promotion of energy networks and renewable sources of energy. The Union now also has a stronger legal framework and legal basis to act on energy policy (article 194 TFEU). Climate change is one of the spheres of competence shared between the Union and the Member States but the Lisbon Treaty reinforces the efficiency and legitimacy of the Union in this matter. Europe e already a leader in the fight against climate change e can now speak legitimately with one voice. With the Treaty of Lisbon, fighting climate change at an international level becomes a specific objective of EU environmental policy, reinforcing the leading role Europe already plays on the world stage in this area. 5. Roadmap to a low carbon economy in 2050
3. European Strategic Energy Technology plan The objectives of the energy and climate change strategy can only be achieved through major investment in areas of the knowledge triangle: reinforcing research, education and innovation in the energy sector in Europe. In November 2007, the European Commission proposed a European Strategic Energy Technology plan e the SET-Plan e to establish a new research agenda for Europe in the energy area. Energy technologies will be crucial to ensuring energy supply for Europe and the world. To achieve the targets set for 2020 and 2050, the development of new, more efficient and affordable technologies is required. Europe has the potential to develop a new generation of low carbon energy technologies, such as the offshore wind, solar or second-generation biofuels. The European Strategic Energy Technologies outlines a fresh approach, focussing on joint planning (EU level, Members States and regional level), making better use of the potential for European Research and Innovation and fully exploiting the possibilities offered by the market. The plan aims to boost industrial research and innovation, by aligning sectoral, national and European activities. The SET-Plan builds on a set of actions already in place, the EU RTD Framework Programmes (EC and EURATOM), Intelligent Energy-Europe (part of the Competitiveness and Innovation Programme), European Technology Platforms (bringing stakeholders together on research agendas), the ERA-Net scheme (encouraging Member States to coordinate R&D programmes), Networks of Excellence (giving research centres greater opportunity to work together), Joint Technology Initiatives and Joint Programming. 4. The Lisbon treaty The climate and the Energy package was approved in 2008 in spite of the fact that the treaties considered energy a responsibility of the Members States. This perspective changed with the Lisbon Treaty that entered into force in 1 December 2009. The Lisbon Treaty gives new powers to Europe and to EU citizens to act in
Climate change is among the largest environmental, social and economic challenges currently facing mankind. It is also a cross boarder problem requiring coherent EU action. The European Institutions are actually looking beyond the 2020 objectives and setting out a plan to meet the long-term target of reducing domestic emissions by 80e95% by mid-century. The sectors responsible for Europe’s emission e power generation, industry, transport, buildings and construction e must all prepare the transition to a low-carbon economy [1]. In order to meet the 80e95% overall GHG (greenhouse gases) reduction objective by 2050, the Roadmap indicates that a cost effective and gradual transition requires a 40% domestic reduction of greenhouse gas emissions (compared to 1990) as a milestone for 2030 leading to the 80% figure by 2050. Building on what has already been achieved, the EU needs to start working now on appropriate strategies to move in this direction, and all Member States should soon develop national low carbon Roadmaps [1]. Electricity will play a central role in the low carbon economy. It is estimated that the the share of low carbon technologies in the electricity mix will increase from around 45% to around 60% in 2020. This requires significant use of renewables. Investment in smart grids is crucial for a low carbon electricity system, facilitating energy efficiency, an increased shares of renewables, distributed generation and the electrification of transport. Development of energy storage technologies will be fundamental. The key driver for this transition will be energy efficiency. 6. Energy efficiency plan 2011 The EU is on the way to achieving its targets for 2020 of reducing emissions to 20% below 1990 levels whilst raising the share of renewables by 20%. However, much greater efforts are needed to improve energy efficiency by 20%. The objectives for GHG emissions reduction and the share of renewables are binding. This will enable the EU to outperform the current 20% emission reduction target and achieve a 25% reduction. By contrast, the energy
M. da Graça Carvalho / Energy 40 (2012) 19e22
efficiency objective (20%) is not a binding target and recent European Commission estimates suggest that the EU is on course to achieve only half of the 20% objective. Energy efficiency is at the heart of European policies for smart, sustainable and inclusive growth. It is also key to the transition to a resource efficient economy. Moreover, it is one of the most cost effective ways of enhancing security of energy supply and reducing the emissions of greenhouse gases and other pollutants. In many ways, energy efficiency can be seen as Europe’s single most important energy resource. Substantial steps have been taken towards the objective of increasing energy efficiency, notably in the appliances and buildings markets. The EU needs to act now if it is to achieve its target. The new Energy Efficiency Plan [2] aims at responding to the call of the European Council of 4 February 2011 to take ’determined action to tap the considerable potential for higher energy savings of buildings, transport and products and processes’ [3]. The energy efficiency measures will be implemented as part of the EU’s wider resource efficiency goal, encompassing efficient use of all natural resources and ensuring high standards of environmental protection. The greatest energy saving potential lies in buildings whilst transport has the second largest potential. Energy efficiency in industry will be tackled through energy efficiency requirements for industrial equipment, improved information provision for SMEs and measures to introduce energy audits and energy management systems. Improvements to the efficiency of power and heat generation are also proposed, ensuring that the plan includes energy efficiency measures across the whole energy supply chain. A wide range of technologies and methods exist to improve energy efficiency, turn renewables into viable energy sources and reduce emissions. However, market conditions prevent these technologies from reaching their full potential. In order to overcome this problem, the European Union has developed funding programmes. The Intelligent Energy e Europe programme (IEE), for instance, offers a helping hand to organisations willing to improve energy sustainability. The Intelligent Energy e Europe (IEE) programme is giving a boost to clean and sustainable solutions. It supports their use and dissemination and the Europe-wide exchange of related knowledge and know-how. Targeted funding is provided for creative projects putting this idea into practice. The projects help to further the three main objectives: Promoting energy efficiency and encouraging the rational use of energy sources; Increasing the use of new and renewable energy sources as well as encouraging energy diversification; Stimulating energy efficiency and renewables in the field of transport. 7. Energy infrastructure priorities for 2020 In order to implement the energy strategy described in the above sections, a new EU energy infrastructure policy is needed. An integrated European grid will bring enormous benefits in terms of security of supply and the stabilisation of consumer prices. Business and citizens will have access to clean, secure and affordable energy contributing to maintaining a strong, diversified and competitive industrial base in Europe [4]. Europe will define priority corridors for the transport of electricity, gas and oil. This map of priorities will serve as a basis for future permit granting and financing decisions on concrete EU projects. Europe will also favour regional cooperation between countries, defining longer-term goals, such as European electricity highways [5]. In the electricity sector four EU priority corridors have been identified: 1) an offshore grid in the Northern Seas and connection
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to Northern and Central Europe to transport power produced by offshore wind parks to consumers in large cities, on the one hand, and to store power in the hydro electric power plants in the Alps and the Nordic countries, on the other hand; 2) Interconnections in South Western Europe to transport power generated from wind, solar, hydro to the rest of the continent; 3) Connections in Central Eastern and South Eastern Europe, strengthening the regional network; 4) Integration of the Baltic Energy Market into the European market. In the gas sector, three EU priority corridors have been identified: 1) Southern Corridor to deliver gas directly from the Caspian sea to Europe to diversify gas sources; 2) Baltic Energy Market Integration and a connection to Central and South East Europe; 3) North-South corridor in Western Europe to remove internal bottlenecks and enable the best use of possible external supplies. Around 200 Billion Euro must be invested in energy transport, in gas pipelines and power grids alone. It is estimated that part of this will come from the private sector, leaving a financial gap of 100 Billion Euro [5]. 8. Policy challenges and budgetary resources for a sustainable European union after 2013 Energy security and the fight against climate change in Europe will require major and sustained investment in Europe. Public private financing mechanisms are key to overcoming initial financing risks and cash flow barriers. The European Investment Bank, the European Bank for Reconstruction and Development e as well as dedicated funding in the next Multi-Annual Financial Framework e should play a role in providing additional financing for energy efficient and low carbon technologies [1]. The next Multi-Annual Financial Framework [6] will also examine how EU funding can support instruments and investments that are necessary to promoting the transition to a low carbon economy, taking into account the specificities of sectors, countries and regions. The new multi-annual financial framework should reflect the EU’s political priorities; something that implies that a significantly higher proportion of the budget should be allocated to energy policy, including modern and smart energy infrastructure, energy efficiency, renewable-energy projects, research, development and the deployment of new energy technologies. 9. Conclusions The ambitious targets that Europe has set in order to combat climate change are conditional on international agreements. There is considerable hope that a global agreement will be reached before the end of this year, however. Although climate change is one of the many challenges that Europe has to face at the beginning of the twenty-first century, these challenges can also be seen as a chance to introduce reforms that will help shape a sustainable, cooperative and equitable Europe, enabling the economy to prosper while ensuring energy security and fighting climate change. To this end: 1) The EU has drawn up a European Energy and Climate Change Policy whose five pillars will enable greater energy efficiency, energy saving whilst actively encouraging the use of renewables and clean hydrocarbons alongside more effective use of both carbon and internal markets. 2) The European Strategic Energy Technologies programme e which builds on a number of existing projects e seeks to further research and innovation alongside a number of measures designed to encourage greater cooperation at sectoral, national and European levels.
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M. da Graça Carvalho / Energy 40 (2012) 19e22
3) The Lisbon Treaty paves the way to a coordinated and comprehensive EU energy policy, one in which Europe e already a leader in the fight against climate change e can now speak legitimately with one voice. The climate and energy package can now be deepened and more ambitious goals can be set, particularly on security of energy supply, internal energy market and solidarity between Member States. 4) With regard to the Roadmap to a low carbon economy, all member states should strive to introduce a national low carbon Roadmap if the ambitious targets that have been set in this domain are to be met. Similarly, the different sectors involved in Europe’s emissions should all begin to pull in the same direction. Finally, investment in smart grids will contribute significantly to achieving a low carbon electricity sector. 5) The Energy Efficiency Plan for 2011 is of prime importance (and energy efficiency is perhaps Europe’s prime resource). The current energy efficiency target is not binding and more effort should be made to achieve the projected 20% reduction (with current projections suggesting that only half of this target will be met). Energy efficiency is one of the most cost effective ways of enhancing security of energy supply and reducing the emissions of greenhouse gases and other pollutants 6) As for the energy infrastructure priorities, an integrated European grid will bring enormous benefits in terms of security of supply and the stabilisation of consumer prices. In the electricity sector four EU priority corridors have been identified: In the gas sector, three EU priority corridors have been defined. 7) Policy challenges and budgetary resources devoted to energy security and the fight against climate change in Europe will require major and sustained investment. Public private financing mechanisms will be central in this respect. At the
same time, the achievement of a low carbon economy should be attentive to the particular needs and characteristics of different sectors, countries and regions. In short, we need ambitious measures to deliver a prosperous and sustainable Europe which meets the challenges of climate change and globalisation, and which has become the world leader in clean technologies and a driving force for economic growth and job creation. In this respect, it is desirable that a significantly higher proportion of the budget should be allocated to energy policy. This will include investment in modern and smart energy infrastructure, enhanced energy efficiency, renewable-energy projects in research and development as well as the deployment of new energy technologies. References [1] Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions, A Roadmap For Moving To A Competitive Low Carbon Economy In 2050, COM 2011; 112, Brussels, 8.3.2011. [2] Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions, Energy Efficiency Plan 2011, COM 2011; 109, Brussels, 8.3.2011. [3] European Council Conclusions, 4th February 2011. [4] Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions, Energy infrastructure priorities for 2020 and beyond e A blueprint for an integrated European energy network, COM 2010; 677, Brussels, 17.11.2010. [5] European Commission. Energy infrastructure: commission proposes EU priority corridors for power grids and gas pipelines Available at: http://europa.eu/rapid/ pressReleasesAction.do?reference¼IP/10/1512. [6] GARRIGA POLLEDO, Salvador. Draft report on investing in the future: a new Multiannual Financial Framework (MFF) for a competitive, sustainable and inclusive Europe. Brussels: European Parliament; 2nd March 2011.