EU ENERGY AND CLIMATE CHANGE POLICY

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EU ENERGY AND CLIMATE CHANGE POLICY

• Joseph Curtin
• Institute of European Affairs

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Overview

• I Background
• IIChallenges
• III The EU January Energy and Climate Change
  Package
• IV March European Council and Future Prospects
• V Implications for Ireland

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I Background

• EU Energy Policy
• Traditional Limited Competences regarding Member
  States Energy Mix - Art. 175.2 III, TEU
• Attempts to create integrated gas and electricity
  markets (Dir 2003/54/EC) largely unsuccessful
• General Lack of coordination of Member State
  positions in relation to external energy
  partners

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GERMANY NEGOTIATES WITH RUSSIA LARGELY IGNORING
OBJECTIONS OF OTHER MEMBER STATES
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II Background

• EU Climate Change policy
• Desire to play internal leadership role since
  1990s
• Tech standards on electric appliances and
  equipment (92/95), emissions from cars (95),
  remove subsidies on fossil fuels (97), promotion
  of renewables (97)
• EU Bubble at international negotiations - prior
  agreement on emission reduction targets proposed
  for all industrialised countries at Kyoto with
  differentiation among EU member states
• Emissions Trading since 2005

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II Key Challenges

• Peak Oil Climate Change
• Prices
• Security of Supply - Russia

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Peak Oil
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Climate Change
Warmest 12 years 1998,2005,2003,2002,2004,2006,
2001,1997,1995,1999,1990,2000
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Electricity Prices
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Security of Supply
Origins of Oil EU 27
Origins of Gas EU 27
Origins of Coal EU 27
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III EU Response January Energy and Climate
Change Package

• Three Pillars
• Sustainability - Control of Emissions
• Competitiveness - Internal Market Reform
• Security of Supply - External Energy Policy

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(No Transcript)
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IV March European Council and Beyond

• 1. Sustanability
• 20 Emissions reductions on 1990 levels by 2020
  (30 if other developed countries on board) - all
  three goals
• Long-term indicative target of 60-80
  reductions by 2050!!
• 20 Total Energy Consumption from renewables by
  2020
• Energy Efficiency Action Plan - 20 efficiency
  gains by 2020
• Biofuels target - 10 of fuel consumed
• a new industrial revolution

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Problems

• Legal Basis
• Burden Sharing
• Member State Competence
• Competitiveness

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Which Policies Measures?

• Emissions Trading
• NAP 2007-2009 and legal challenges (Poland, Czec,
  Slovakia and Hungary)
• Current Review aviationshipping/auctioning/inter
  national linking
• Technical standards
• 120-130gm CO2/km for cars, phase out
  incandescent lighting
• Technology/RD (Strategic Energy Tech. Plan, Oct
  2007)
• Taxation??

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2. Competitiveness

• Principles Agreed
• Increasingly Competitive markets
• Fair grid access to all
• Investment Decisions independent of supplier
  interests
• Unbundeling French and German opposition
  remains
• National Regulators Power will be Enhanced and
  independent mechanisms for cooperation
  established
• Sept 2007 Commission follow up expected

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3. Security of Supply

• Priority Partnership and Cooperation Agreement
  (PCA) with Russia
• Crisis Response Mechanism agreed
• Member States continue to enter bilateral
  negotiations with energy suppliers

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4. Autumn - A new wave

• Autumn "energy technology plan
• A Compromise on unbundeling?
• Commission to draw up draft directive on burden
  sharing for renewables and later on emissions
• Opening of PCA with Russia?

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V Implications for Ireland

• Renewables Energy White Paper
• 33 electricity to come from renewables by 2020
• 10 penetration of biofuels
• 10 thermal energy
• Together only 11 of energy from renewables
  (target 20)
• Emissions Targets
• 2012 130 of 1990 levels!
• Energy Liberalisation White Paper
• Transfer ownership of transmission grid from ESB
  to Eirgrid
• IEA Climate Change Working Group

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