In the last decade it has become clear that - amid increasing demand for
energy, rising oil prices, uncertain energy supplies and fears of global warming
- increases in energy consumption can no longer be taken for granted.
The European Union needs to intensify efforts to reduce greenhouse gas emissions, while also addressing its increasing dependence on imported energy. Alternative European energy sources should, therefore, be sought in order to reduce dependence and ensure the continuity and stability of energy supplies.
The EU is consequently endeavouring to reduce the adverse effects of climate change and shape a common energy policy. To that end, on 23 January 2008, the European Commission adopted a proposal for a Directive on the promotion of the use of energy from renewable sources, expected to come into force in 2010.
What does the energy and climate change package include?
The basic elements of the new package adopted by the European Commission on 23 January 2008 are as follows:
- a proposal amending Directive 2003/87/EC of the European Parliament and of the Council (OJ L 275, 25.10.2003), extending the current greenhouse gas emission allowance trading scheme to include all the largest industrial emitters and further greenhouse gases;
- emission reduction for sectors not included in the European greenhouse gas emission allowance trading scheme, taking account of differences between Member States;
- legally binding targets for each EU Member State on the increase in the share of renewables within the total energy mix, in line with the proposal for a Directive on the promotion of the use of energy from renewable sources;
- a new legal framework for carbon capture and storage.
With its energy and climate change package, the European Union is seeking to achieve the target of reducing greenhouse gas emissions by 20% and increasing the share of renewables in energy consumption to 20% by 2020. Reductions in greenhouse gas emissions need to be stepped up to 30% by 2020 in order to limit the global average temperature increase to no more than 2°C above pre-industrial levels. In addition, the package sets an overall minimum 10% target for the use of biofuels in EU transport to be achieved by each Member State by 2020.
The advantages of renewable energy sources include a positive impact on climate, stability of energy supply and long-term economic benefits. According to European Commission estimates, achieving the energy and climate change package targets throughout the EU by 2020 will mean the following:
- cutting CO2 emissions by between 600 and 900 million tonnes a year;
- cutting fossil fuel consumption by 200 to 300 million tonnes a year;
- reducing EU dependence on imported fossil fuels, thereby increasing the stability of the EU's energy supply;
- increased incentives for developing high-tech industries bringing new economic opportunities and new jobs.
If the European Union is to achieve the target of a 20% share of renewables in overall EU energy consumption by 2020, it needs to adhere to the principle of fairness and recognise that Member States have different capacities to invest and their different starting points and to ensure that the burden of achieving the target is shared equitably between EU Member States. The new greenhouse gas emissions trading scheme, covering all larger industrial emitters, provides for a single total quantity of emission coupons at EU level rather than for each Member State separately, as was practiced until now, and the sale of the majority of emission permits through auctions, held in the Member States, that should, in principle, be open to all potential buyers.
At the meeting of the EU Environment Council, chaired by the Slovenian Minister for Environment and Spatial Planning, Mr Janez Podobnik, on 3 March 2008, Ministers re-affirmed their commitment to adopting the climate-energy legislation package in spring 2009. The EU leaders confirmed their commitments on the European Council summit between 13 and 14 March 2008. As stated in Presidency conclusions, climate-energy legislation package is expected to be adopted within the current legislative term, at the latest early in 2009.