The EU's climate change and energy strategy Limiting global climate change to 2C and the contributio

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The EU's climate change and energy strategy
Limiting global climate change to 2Cand the
contribution of the energy policy
FEANI General Assembly, Valencia, 4 October May
2007
Jean-Arnold Vinois Head of Unit Energy policy
and security of supply DG Energy and Transport,
European Commission
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Outline

• The EUs international ambition Limiting climate
  change to 2 degrees Celsius
• Leadership starts at home Energy for a changing
  world

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The EUs 2 degrees Celsius objective
Source IPCC 2007
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Why 2 degrees Celsius?
EUs 2C
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Why 2 degrees Celsius?Millions at risk
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A global vision a 50 chance to stay below 2
degrees Celsius
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Action by developed countries

• Common but differentiated responsibility take
  the lead and make most of the effort
• Reduction efforts
• 30 by 2020
• 60-80 by 2050
• Emissions trading, linking domestic schemes and
  global carbon market
• Binding and effective rules for monitoring and
  enforcing commitments

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Action in developing countries

• Reduce growth of emissions asap
• Absolute reductions after 2020
• Toolbox
• Sustainable development policies
• New approach to CDM
• Improved access to finance
• Sectoral approaches
• Quantified emission limits
• No commitments for least developed countries

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Further elements

• International research and technology cooperation
• Large-scale technology demonstration
• Quantification of regional and local impacts and
  adaptation and mitigation strategies
• Action to halt deforestation within 2-3 decades
  and reverse afterwards
• Large-scale pilot schemes
• Adaptation measures
• Integrate in public and private investment
  decisions
• Enhanced alliance building with developing
  countries building on EU action plan on climate
  change and development
• International agreement on energy efficiency
  standards

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It is technically feasible e.g. the energy
sector
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The EU 2 degrees vision is economically affordable
World GDP relative to 2005
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Benefits of limiting climate change outweigh
costs of action

• Costs of inaction 5-20 of global GDP (Stern
  Review)
• Costs of global action (2030)
• Investment costs 0.5 of global GDP per year
• Reduce global GDP growth by 0.19 per year
• Reduce global GDP growth by 0.12 per year (IPCC
  WG3)
• Co-benefits
• Increased energy security
• Improved competitiveness through innovation
• Health benefits from reduced air pollution

Commission analysis
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International climate negotiations Outlook
2007
2008
2009
2010
FIN
GER
PORT
ESP
FRA
SWE
CZ
SLO
BEL
COP 12
COP 13 Indonesia
COP 14, Poland
COP 15, Denmark
COP16, Latin America
Science 4th AR IPCC
Follow-Up Convention Dialogue
Convention Dialogue
Deal on New International Framework
New targets for industrialised countries under
the Kyoto Protocol (Art 3.9)
Review of Kyoto Protocol (Art 9)
Follow-Up Review
G20 Gleneagles Plan of Action
G8 GER
G8 JAP
G8 ITA
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Leadership starts at home
Energy for a changing world
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One strategic objective for energy and climate

• At least 20 unilateral EU reduction of GHG by
  2020

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Interlinked energy policy objectives
Competitiveness

• Internal Market
• Interconnections (Trans-European networks)
• European electricity and gas network
• Research and innovation
• Clean coal
• Carbon sequestration
• Alternative fuels
• Energy efficiency
• Nuclear

FULLY BALANCED INTEGRATED AND MUTUALLY
REINFORCED
Sustainable Development
Security of supply

• Renewable energy
• Energy efficiency
• Nuclear
• Research and innovation
• Emission trading

• International Dialogue
• European stock management (oil/gas)
• Refining capacity and energy storage
• Diversification

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CO2 emissions from energy
TRENDS IN CO2 EMISSIONS up to 2030 without any
additional CO2 mitigation measures
Mt CO2 relative to 1990 (Baseline)
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Energy and CO2 emissions
Energy gt 80 of EU-GHG Energy gt 93 of EU CO2
emissions 75 of GHG are CO2 emissions
Source European Environemental Agency Report 2006
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Towards a more sustainable, secure and
competitive energy mix
EU-27 ENERGY MIX
2030 (BaU)
2004
Source EUROSTAT
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Investment for a more sustainable
energy base
EU-27 INVESTMENT NEEDS up to 2030 1.79 trillion
Source EUROSTAT
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Open markets to encourage investment and new
entrants
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Diversity to tackle rising import dependence
Import trends EU 27
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II. THE ACTION PLAN decided by the European
Council in March 2007
Actions for a Post-industrial revolution
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1. Internal Market will facilitate achievement of
policy objectives

• Non-discriminatory access to networks for new
  suppliers through unbundling between supply
  activities and transmission networks.
• Enhancing the role, independence and
  effectiveness of national regulators
• Reinforcing co-ordination of regulators at EU
  level to ensure equal treatment for all
  participants an EU regulatory agency?
• Towards a European grid, incorporating offshore
  wind, thanks to TSOs cooperation
• Ensuring transparency of the market

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2. Solidarity a common purpose towards common
ends

• Common energy policy objectives promote Member
  State collaboration and integration
• Development of mechanisms to promote solidarity
  in energy crisis situation
• Common EU fora to share information, serve as
  early warning mechanism and organising joint
  responses, eg
• Gas Coordination Group
• Oil Supply Group
• Energy Correspondents Network

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3. Energy Efficiency for quick, easy and cheap
reductions in emissions

• Energy Efficiency Action Plan
• (adopted on 19 October 2006)
• Saving 20 by 2020
• Realising the Potential
• Transport fuel efficient cars better use of
  public transport introduction of biofuels
• Appliances tougher standards and better
  labelling
• Buildings improving the energy performance of
  the EUs building stock
• Improving the efficiency of heat and electricity
  generation, tranmission and distribution

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3.Energy Efficiency Implementation

• Implementation of the Action Plan
• Intelligent Energy Agency now Executive Agency
  for Competitiveness and Innovation
• Commission Work Programme
• Energy performance of Buildings Directive,
  Cogeneration Directive, Eco-Design Directive,
  Energy Star Agreement, Energy End-Use Efficiency,
  Energy Services Directive, Labelling Directive
• Industrial agreements/commitments
• ManagEnergy and Sustainable Energy Europe
  Campaigns

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3.Energy Efficiency the widest possible promotion

• Structural Funds and the EIB/EBRD to support
  energy efficiency
• Facilitating investments and financial incentives
  for energy efficiency in cooperation with
  financial institutions, including new Member
  States
• International platform on energy efficiency
  (improved, internationally agreed minimum energy
  efficiency standards for a wide range of products
  and equipment and a process for the gradual
  raising of these standards) with IEA countries,
  Russia, China and India.

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4. A binding Renewable Energy Target

• EU MUST deliver on existing 21 (power) and 5.75
  (transport) RES targets by 2010
• European Council has agreed a binding overall 20
  target by 2020 and a 10 minimum binding target
  per Member State for biofuels
• Supporting legislation to be tabled by Commission
  early December 2007
• Member States to set national targets and action
  plans on RES in electricity,
  Heating and cooling and Biofuels

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5. Technology a new strategy

• Strategic energy technology plan - by end 2007
• Promotion of technologies to support the Energy
  Policy for Europe and the low-carbon energy
  economy
• Pooling all EU, national and industry means
  to push
• the technologies needed
• Transport fuel efficient cars alternative
  fuels hydrogen fuel cells
• Renewables solar, photovoltaic, second
  generaltion biofuels, offshore wind etc
• Nuclear Generation IV, fusion
• Energy efficient products and processes.

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5. Technology more EU research funding

• In the 7th Framework Programme (FP) energy
• funds increased by 50in comparison with the last
  FP
• 2007-2013
• Energy 2350 million
• (gt50 for RES and energy efficiency)
• Environment (including climate change)
• 1890 million
• Nuclear (Euratom) 2751 million
• Intelligent Energy Agency will help disseminate
  programme results

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5. Technology a new emphasis on Sustainable
Fossil Fuels

• Up to 12 industrial-scale demonstration
  facilities of sustainable power generation from
  fossil fuel in Europe (Early mover incentives,
  Technology platform, Pooling of EU and MS Funds,
  Joint Undertakings)
• Clear timeframe for installation of CO2 capture
  storage CCS for coal- and gas-fired power plants
• CCS for new fossil fuel plant after 2020
  RETROFITTING of existing plants
• Improvement of the legal framework (CCS in ETS)
  and public acceptance

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6. A safe and secure nuclear option

• Council calls for a debate on opportunities and
  risks of nuclear energy
• Commission will establish an EU High Level Group
  on Nuclear Safety and waste management
• Waste management must be priority for Research
  and Technology Development Programme

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7. An external energy policy towards global
sustainability

• Negotiations and agreements on climate, trade and
  technology
• Post-2012 climate regime, World Bank Gas Flaring
  Reduction Partnership, Extractive Industries
  Transparency Initiative, Energy Charter,
  extension of ETS to global partners, energy
  efficiency, energy star
• Energy relations with EU Neighbours
• Norway, ENP, Egypt, Mashrek/Magreb, Libya,
  Algeria, Turkey

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7. Encouraging sustainable energy policies with
key partners

• EU Russia energy cooperation
• Energy partnership in the framework of the
  post-PCA agreement
• Cooperation with key energy producers, transit
  countries and consumers
• Through OPEC, GCC, with Caspian Basin, Latin
  America, Caribbean, a new Africa-Europe
  Partnership, partnerships with USA, China, India,
  Brazil
• Dialogues extend to demand, efficiency,
  technology and climate issues

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Benefits of new policies outweigh costs

• COSTS OF ACTION
• 20 share of renewables by 2020
• additional average costs
• - 18 billion/year 6 of EUs total energy
  import bill (48/barrel by 2020)
• - 10.6 billion/year at 78/barrel
• - no additional costs in comparison to
  relying on traditional energy sources if carbon
  price at 20 per ton.
• BENEFITS
• From energy efficiency (20 by 2020)
• save 100 billion/year and 780 Mt CO2
• Improved competitiveness through innovation
• Energy supply security, reduced import bill
• Health benefits from reduced air pollution

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