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Assessment of Potential and Promotion of New Generation of Renewable Technologies ____________________________________________________________________________________________ 3. EU Policy Assessment 3.1. Energy regulatory policy The principle objectives of EU energy policy are sustainability, security of supply and competitiveness. The energy and climate change package addresses the sustainability challenge, while the Second Strategic Energy Review aims to increase the security of Europe’s energy supplies. Both of these policy packages contain elements influencing the use of renewable energy sources in Europe. In addition, the 3rd legislative package – aimed at setting up a functioning internal market for electricity and gas – will impact renewables in several ways. This chapter describes the main elements of these three policy initiatives and assesses how they will impact the use of renewables in the European energy mix. 3.1.1. The Energy and Climate Change Package Although there have been several prior EU policy initiatives, the heart of its current greenhouse gas emissions reduction strategy is the energy and climate change package,14 which was formally adopted on 6 April 2009. This package intends to achieve the EU’s overall binding environmental targets, which were adopted by the European heads of state and government at their 8-9 March 2007 summit chaired by the German presidency [Council of the European Union 2007]. They had committed themselves by 2020 to unilaterally reduce greenhouse gas emissions by 20% compared to 1990 levels (up to 30% if other developed countries were to commit to comparable emissions reductions) and to increase the share of renewable energy in the EU’s total energy consumption to 20%. While these two targets are binding, they had also set themselves a non-binding energy efficiency goal of reducing primary energy consumption by 20% by 2020 compared to projections. The core elements of the energy and climate change package are the revised EU Emissions Trading System,15 in combination with the effort-sharing decision,16 and the directive for the promotion of renewable energy sources.17 The former strengthens the EU ETS with the aim to reduce GHG emissions by 2020 by 21% below 2005 levels in the covered sectors (representing some 40% of the EU’s total GHG emissions). Emissions reductions outside of the ETS sectors are covered by the so-called “effort sharing” decision which requires non- ETS sectors (covering some 60% of EU GHG emissions) by 2020 to reduce their emissions by 10% compared to 2005 levels. Efforts will be shared among member states according to the principles of solidarity and equity, resulting in different (binding) targets for different countries. Taken together, both pieces of legislation will result in GHG emissions reductions of 14% compared with 2005, which is equivalent to a reduction of 20% compared with 1990. 14 The energy and climate change package contains six elements: The renewable energy directive, a directive improving and extending the EU ETS, an effort sharing decision covering GHG emissions outside of the EU ETS, a regulation on reduced CO2 emissions from cars, a revised fuel quality directive, and a directive setting up an EU-wide regulatory framework for CCS. 15 Directive 2009/29/EC of the European Parliament and of the Council of 23 April 2009 amending Directive 2003/87/EC so as to improve and extend the greenhouse gas emission allowance trading scheme of the Community. 16 Decision No 406/2009/EC of the European Parliament and of the Council of 23 April 2009 on the effort of Member States to reduce their greenhouse gas emissions to meet the Community’s greenhouse gas emission reduction commitments up to 2020. 17 Directive 2009/28/EC of the European Parliament and of the Council of 23 April 2009 on the promotion of the use of energy from renewable sources and amending and subsequently repealing Directives 2001/77/EC and 2003/30/EC. IP/A/ITRE/ST/2009-11 & 12 73 PE 440.278PDF Image | Policy Department Renewable Technologies
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