The European Commission has today (22 January) unveiled its 2030 framework for energy and climate change policies, in a move that has met mainly with disappointment.

The European Union (EU) will need to reduce greenhouse gas (GHG) emissions by 40 per cent (based on 1990 levels), see 27 per cent of energy come from renewable sources, renew ambitions for energy efficiency policies, and introduce a new governance system and set of indicators to ‘ensure a competitive and secure energy system’, the European Commission (EC) has announced.

The requirements form part of the new 2030 framework on climate and energy, which aims to ‘drive continued progress towards a low-carbon economy and a competitive and secure energy system’.

Building on the existing climate and energy targets for 2020 (as well as the commission’s 2050 roadmaps for energy and for a competitive low-carbon economy), it is hoped the framework will help ensure affordable energy for consumers, increase the security of the EU’s energy supplies, reduce Europe’s dependence on energy imports, and create ‘new opportunities for growth and jobs’.

2030 framework details

The communication on the policy framework released today, outlined that by 2030, Europe should:

• reduce greenhouse gas emissions by 40 per cent (of the 1990 level) through ‘domestic measures alone’, such as increasing the ‘cap’ on emissions from EU emissions trading sectors (EU ETS) from 1.74 per cent to 2.2 per cent after 2020, and cutting emissions from non-EU ETS sectors by 30 per cent below the 2005 level;
• deliver ‘at least’ 27 per cent of energy from renewable sources as ensured by the new governance system based on national energy plans (although this target would not be translated into national targets through EU legislation, thus leaving member states in charge of their own energy policies);
• improve energy efficiency (to be further considered in a review of the Energy Efficiency Directive due to be concluded later this year);
• reform the EU ETS system by establishing a ‘market stability reserve’ at the beginning of the next ETS trading period in 2021 (on top of the ‘backloading’ principle that will withhold credits until 2019/20);
• introduce a set of key indicators to asses energy security, including ‘supply diversification and reliance on indigenous energy sources’, as well as the ‘interconnection capacity’ between member states’; and
• introduce a new governance framework based on national plans for competitive, secure and sustainable energy (prepared by member states under a ‘common approach’).

According to a new report on energy prices and costs (also released by the EC today), as worldwide energy prices grow increasing disparate, as typified by the US’s low gas prices, Europe’s competitiveness could be ‘undermined’.

As such, the framework hopes to offset the costs of energy by introducing ‘cost effective energy and climate policies, competitive energy markets and improved energy efficiency measures, such as using more energy-efficient products’.

Although the targets are said to be ‘binding’ on an EU-wide level, a spokesperson for the EC told Resource instead of issuing infringements for missed targets, the EC would amend the framework and relevant directives to ensure that the targets are met.

The European Council is expected to consider the framework at its spring meeting on 20-21 March.

Protecting environment and boosting economy ‘mutually enforcing’

Speaking of the communication, European Commission President José Manuel Barroso, said: "Climate action is central for the future of our planet, while a truly European energy policy is key for our competitiveness. Today's package proves that tackling the two issues simultaneously is not contradictory, but mutually reinforcing.

"It is in the EU's interest to build a job-rich economy that is less dependent on imported energy through increased efficiency and greater reliance on domestically produced clean energy. An ambitious 40 per cent greenhouse reduction target for 2030 is the most cost-effective milestone in our path towards a low-carbon economy. And the renewables target of at least 27 per cent is an important signal: to give stability to investors, boost green jobs and support our security of supply."

A ‘toothless policy’

The release has been largely slammed by environmental groups, and been met with ‘disappointment’ from many industry bodies, however.

Commenting on the package, Greenpeace UK Executive Director John Sauven, said: "After months of bickering and in-fighting the European commission has produced a set of proposals that will satisfy almost no-one... This toothless policy, which involves no legal obligation on member states, has the fingerprints of a UK government in hock to the Big Six energy giants written all over it. David Cameron now has a clear choice ahead of him. He can go to Brussels and fight for British interests – which means supporting a genuinely binding renewables target that works for our world-class clean energy sector – or he can sacrifice the stability of the climate and the future of British industries in an attempt to buy off his party's anti-green clique."

The Renewable Energy Association (REA) and Solar Trade Association (STA) have both voiced ‘disappointment’ at the EC’s lack of binding renewable energy targets for member states in particular, as they say the UK government has been ‘pushing strongly for a “technology-neutral” approach, downplaying the role of renewables’.

As such, the two associations are pushing for ‘binding member state renewable energy targets’ as a means of ‘sending a clear signal to industry of sustained government ambition for renewables’.

Dr Nina Skorupska, REA Chief Executive, said: “[E]xperience shows that binding renewables targets do two things: First, they give a major long-term boost to investor confidence, helping accelerate market growth and technology cost reduction. Second, politics frequently trumps economics in the real world, and when politicians go wobbly on renewables, the targets help keep investment flowing.”

She added that as well as binding member state renewables targets, the EC should also look into setting a decarbonisation target for transport.

STA Head of External Affairs Leonie Greene added that although “it is something that Europe has agreed a 40 per cent emissions reduction target”, the target is not “high enough”.

No shale gas regulations

Greene added that a pan-EU target (rather than member state targets) would “likely” lead to a scenario “where countries like Germany that take a long-term perspective continue to strongly back their renewables industry into the next decade, while we [the UK] fall even further behind”.

Indeed, the UK government has been criticised in many quarters for stalling the domestic renewable energy market by backing fossil-fuel based energy sources, such as shale gas.

However, despite calls for the EC to introduce binding regulations on shale gas exploration (through a process known as ‘fracking’), it has instead today issued a ‘Recommendation’ inviting member states to undertake the following procedures to ‘ensure that proper environmental and climate safeguards are in place’:

1. Plan ahead of developments and evaluate possible cumulative effects before granting licences;
2. ‘Carefully assess’environmental impacts and risks;
3. Ensure that the integrity of the well is up to best practice standards;
4. Check the quality of the local water, air, soil before operations start, in order to monitor any changes and deal with emerging risks;
5. Control air emissions, including greenhouse gas emissions, by capturing the gases;
6. Inform the publicabout chemicals used in individual wells; and
7. Ensure that operators apply best practices throughout the project.

Environment campaign group Friends of the Earth, has lambasted the EC’s recommendation, with Energy Campaigner Tony Bosworth, saying: “The EU’s failure to introduce binding regulations for fracking shows a real disregard for the environmental risks faced by communities across Europe.

“The UK government must take much of the blame for this – it proclaims the benefit of regulation at home but has led the charge against action in Brussels.”

UK government response

However, the UK government has said that the framework is a 'step in the right direction', and praised the EC for its 'recognition' of the 'importance' of shale gas.

Secretary of State for Energy and Climate Change Edward Davey said: “Today’s proposals are a step in the right direction towards an ambitious emissions reduction target for Europe. They provide the flexibility to tackle climate change in the most cost-effective way, so that British consumers aren’t paying over the odds to go green. This package backs the green growth agenda I’ve been working for with other European colleagues.

“It’s good news that the commission has listened to the UK argument that countries must be allowed to decarbonise in the cheapest way possible. However, the UK remains concerned about any renewables target especially as the debate within Parliament and the British green movement has moved on to technology neutral options like a decarbonisation target as the most cost-effective and practical way of fighting climate change.”

Davey added that the EU ETS reforms were also welcome, as was the recognition that shale gas has an important role to play in cutting carbon as we move away from coal”.

He continued: “The UK pushed hard for proposals on shale gas to be robust but proportionate and I am pleased that the commission has recognised that existing directives already cover the environmental issues shale gas raises. In the UK, we already have robust regulation in place and we must be careful to avoid delaying this emerging industry by years of debate over regulation that simply duplicates.”

Find out more about the EC’s 2030 framework for climate change and energy policies.