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Policy Department A: Economic and Scientific Policy ____________________________________________________________________________________________ With sufficient interconnections and infrastructure in place, it will be time for EU member states to reconsider their national approach to renewables support schemes. Policy harmonisation will be beneficial for reasons of productivity, cost effectiveness, cross-border externalities or economies of scale. Many aspects will remain the responsibility of the member states, such as permitting and more generally the administration. Different elements of such a framework can be developed within different timeframes. The EU’s SET-Plan, strengths and weaknesses The EU with the SET-Plan has set up a new roadmap for technology development in the energy sector, which tries to address the following weaknesses of the Framework Programmes: • Lack of coordination, • Lack of participation by the private sector, • Lack of follow-up procedures for research undertaken by the Framework Programme. The SET-Plan requires a generous level of financing estimated by the Commission to be around €50 billion over the next 10 years. The sources of this founding still need to be decided. Nevertheless, the SET-Plan has a number of unresolved issues and inherent weaknesses. The first incognito is how the level of financing required will be achieved. The central instrument which the EU possesses to finance this endeavour, namely the EU budget, is not in a condition to increase such funding. This is due to its inefficiencies, the encroached interests of specific groups and the reluctance of member states to allow it to reach the ceiling of 1.24% of gross national income. The R&D expenditures could be linked to the ETS levy. It fulfils very closely the criteria of the EU budget for own resources, but it is still collected and used domestically which is not correct from an allocation efficiency point of view, especially if funds are to be used to curb emissions or for adaptation. The use of the ETS revenues would require a reform of the Own Resources, which would only happen for the next Financial Perspective starting in 2014, requiring some intermediate solution until then, but an own resource reform is long overdue and this could be one of the elements. Other weaknesses of the SET-Plan are based on the existing framework programme evaluations and the regulations and bureaucratic structures which govern the financial mechanisms and the functioning of the European institutions. The financial regulations of the EU treat research funding in the same fashion as normal procurement policy which is unfit for the risk level required for the research into new technologies. There is a need to find new avenues using methods which are from the one side much more results driven, but from the other side more flexible, mirroring to a certain extent the mechanisms of venture capital systems. From the side of industry, one of the major barriers for their participation in projects are the rules on patents and licensing. A complaint from the research and the industry side is the politisation and bureaucratic interference by the European Commission on the objectives and processes of the European Technology Platforms, which may well be repeated in the European Industrial Initiatives, public private partnerships involving governments, the academic sector and the business sector. IP/A/ITRE/ST/2009-11 & 12 PE 440.278 xxPDF Image | Policy Department Renewable Technologies
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