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Policy Department A: Economic and Scientific Policy ____________________________________________________________________________________________ The present assistance for green energy still consists of single projects without a coherent strategy. The EU could help build highly effective and coordinated programmes. Those low carbon regions could form the basis for large scale testing and demonstration of new technologies, benefitting the regions where those are deployed and providing a real scale testing ground for companies. The creation of low carbon zones along with the transformation of energy and transport systems in poorer countries and regions will not only serve the SET Plan but also foster the creation of green jobs, as well as the development of a modern knowledge economy. It is an opportunity not to be missed. There is, however, a practical barrier, which is the need to reform the EU structural funds regulations to allow for such large scale strategies and also to improve radically the strategic planning and implementation capacity in member states. Many are ill prepared to handle such complex multiannual and highly integrated developments. The level of state participation and the in-depth collaboration needed among state departments, regional bodies, the research community, private business and wider civil society is for many administrations unprecedented. [Núñez Ferrer et al. 2009] A [CEETA 2005] analysis, in fact, detected that in a number of actions on renewable energy by the EU stryuctural funds, there was a lack of connection with energy efficiency, i.e. new, renewable energy systems may supply energy-inefficient houses or industries. If projects are not energy efficient, the benefits of increasing renewable energy will be partly eroded. The Community Strategic Guidelines for the structural and cohesion funds (Cohesion Policy) do mention the need for member states to promote investments in sustainable energy, transport and investments to contribute to the EU’s Kyoto commitments. Nevertheless, the guidelines were published in 2005, when climate change was not at the centre of policy development. The guidelines therefore do not give these actions the level of urgency or any precise obligation, as is the case for the Lisbon strategy, which benefits from earmarking and the requirement to prove the compatibility of programmes with this strategy. As far as actual regulations are concerned, the cohesion fund regulation49 allows the following investments under Art. 2, para. 1(b): “energy efficiency and renewable energy and, in the transport sector outside the Trans-European Networks, rail, river and sea transport, intermodal transport systems and their interoperability, management of road, sea and air traffic, clean urban transport and public transport”. At the outset, the incentives to use EU funding appropriately in this field were too weak. This was reflected in the programming documents, which were mainly oriented towards growth and fund absorption. Road infrastructure is, for example, one of the fastest ways to use EU funding. Climate change and energy efficiency nevertheless began to take centre stage in EU policy shortly after the start of the programming period. The political importance of emission reductions, the EU target reductions of 20-30% in 2020 and the introduction of the ETS are having an effect in changing the development objectives of countries, but these changes have to be patched into the existing structural fund strategies, which will likely result in more inefficient and less effective outcomes. 49 See Council Regulation (EC) No. 1084/2006 of 11 July 2006 establishing a Cohesion Fund and repealing Regulation (EC) No. 1164/94, OJ L 210/79, 31.7.2006. IP/A/ITRE/ST/2009-11 & 12 104 PE 440.278PDF Image | Policy Department Renewable Technologies
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