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2020 climate & energy package

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Although the European Union had legislated in the area of energy policy for many years, the concept of introducing a mandatory and comprehensive European energy policy was for a long time not approved. With the Treaty of Lisbon this changed. The Treaty includes legal solidarity in matters of energy supply and gives the EU the right to change energy policy within the EU.

Following the adoption of the Kyoto protocol, the EU set out in implementing the greenhouse gas reductions goals. Given the flagship initiative at the time of Europe 2020, the climate and energy package that was proposed in 2007 and adopted in 2009 took the form of the 20 20 20 by 2020 goals. The package is a set of binding legislation to ensure the EU meets its climate and energy targets by the year 2020. It includes three key targets:

* 20% cut in greenhouse gas emissions (from 1990 levels)

* 20% of EU energy from renewables

* 20% improvement in energy efficiency

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2020 climate & energy package

  1. 1. 2020 climate & energy package European Sustainable Energy & Climate Policy | Friday 11th March 2016
  2. 2. 1. Context of EU Energy & Climate policy 2. 2020 Energy & Climate package in brief 3. 20% of EU energy from Renewables 4. 20% improvement in Energy Efficiency 5. 20% cut in Greenhouse gas emissions 6. EU funding support 7. Progress as of 2015 8. What next? ummaryS
  3. 3. 1. Context of EU Energy & Climate policy £ (climate) Kyoto: - Key premise accepted, foundation of all climate policy. £ (energy) Security of supply: - EU competitiveness increasingly exposed due to imports. £ EU competence: - Treaty of Lisbon includes legal solidarity in matters of energy supply and gives the EU the right to change energy policy within the EU. £ Europe 2020: - 10 year jobs and growth strategy to create conditions for smart, sustainable and inclusive growth; 5 sets of key targets
  4. 4. 2. 2020 Energy & Climate package in brief £ It is a family of legislation to ensure the EU meets its climate and energy targets for the year 2020. £ The package sets three key targets: - 20% of EU energy from renewables - 20% improvement in energy efficiency - 20% cut in greenhouse gas emissions (from 1990 levels) £ The targets were set in 2007 (providing a 2020 “framework”) and then implemented in the relevant legislation in 2009 (becoming a “package”): - Renewable Energy Directive (2009) - Energy Efficiency Directive (2012) - The Effort Sharing Decision (2009) - EU ETS (Emissions Trading System) (2005/9)
  5. 5. 3. 20% of EU energy from Renewables £ The Renewable Energy Directive establishes an overall policy for the production and promotion of energy from renewable sources in the EU. - It requires the EU to fulfil at least 20% of its total energy needs with renewables by 2020 (double the 2010 level of 9.8%) - through the attainment of individual national targets. - All EU countries must also ensure that at least 10% of their transport fuels come from renewable sources by 2020. £ EU countries set out how they plan to meet these targets and the general course of their renewable energy policy in national renewable energy action plans. £ The Directive specifies national renewable energy targets for each country, taking into account its starting point and overall potential for renewables. These targets range from a low of 10% in Malta to a high of 49% in Sweden.
  6. 6. 3. 20% of EU energy from Renewables – contd. National Renewable Energy Action Plans £ individual renewable energy targets for the electricity, heating and cooling, and transport sectors; £ the planned mix of different renewables technologies; £ policy measures to achieve national targets including cooperation between local, regional, and national authorities; £ any planned statistical transfers and/or joint projects with other countries; £ national policies to develop biomass resources; £ measures to ensure that biofuels used to meet renewable energy targets are in compliance with the EU's sustainability criteria
  7. 7. 4. 20% improvement in Energy Efficiency Overall £ The EU has set itself a 20% energy savings target by 2020 when compared to the projected use of energy in 2020. £ Some of the adopted measures to improve energy efficiency in Europe include: - an annual reduction of 1.5% in national energy sales; - minimum energy efficiency standards and labelling for a variety of products such as boilers, household appliances, lighting and televisions (EcoDesign); - the preparation of National Energy Efficiency Action Plans every three years by EU countries; - the planned rollout of close to 200 million smart meters for electricity and 45 million for gas by 2020.
  8. 8. 4. 20% improvement in Energy Efficiency Energy Efficiency Directive £ The 2012 Energy Efficiency Directive established a set of binding measures to help the EU reach its 20% energy efficiency target by 2020. £ The Directive also sets out that EU countries are required to use energy more efficiently at all stages of the energy chain from its production to its final consumption. £ Much like in the Renewable Energy Directive, EU countries must draw up action plans and present how they plan to meet these targets through national energy efficiency action plans (NEEAPS) £ These set out estimated energy consumption, planned energy efficiency measures and the improvements individual EU countries expect to achieve. £ Under the Directive, EU countries must draw up these plans every three years and report the progress achieved towards their national energy efficiency targets on an annual basis.
  9. 9. 4. 20% improvement in Energy Efficiency The Directive continued £ New national measures have to ensure major energy savings for consumers and industry alike. For instance through: - energy distributors or retail energy sales companies have to achieve 1.5% energy savings per year through the implementation of energy efficiency measures; - EU governments to carry out energy efficient renovations on at least 3% of the buildings they own and occupy by floor area annually; - empowering energy consumers to better manage consumption (i.e. easy and free access to data on consumption through individual metering);
  10. 10. 4. 20% improvement in Energy Efficiency The Directive continued £ Obligation Schemes - Under the Energy Efficiency Directive, EU countries also set up energy efficiency obligation schemes. The schemes require energy companies to achieve yearly energy savings of 1.5% of annual sales to final consumers. • In order to reach this target, companies have to carry out measures to help final consumers improve energy efficiency. - EU countries have also implemented alternative policy measures to reduce final energy consumption. - These measures included: • energy or CO2 taxes; • financial incentives that lead to an increased use of energy efficient technology; • energy labelling schemes beyond those that are already mandatory under EU law;
  11. 11. 5. 20% cut in GHG emissions / ETS & non-ETS EU ETS Emissions Trading Scheme The EU emissions trading system is the EU's key tool for cutting greenhouse gas emissions from large-scale facilities in the power and industry sectors, (and possibly others with time – aviation / maritime). £ The ETS covers around 45% of the EU's greenhouse gas emissions, which represents more than 11,000 power stations and industrial plants in 31 countries. £ In 2020, the target was set for the emissions from these sectors to be 21% lower than in 2005. £ Launched in 2005, the EU ETS is now in its third phase, running from 2013 to 2020
  12. 12. 5. 20% cut in greenhouse gas emissions National emission reduction targets £ This covers the sectors not in the ETS – accounting for some 55% of total EU emissions – such as: - buildings, agriculture, waste, and transport (excluding aviation, maritime) £ EU countries have taken on binding annual targets until 2020 for cutting emissions in these sectors (compared to 2005), under an "Effort-sharing decision” £ The targets differ according to national wealth – from a 20% cut for the richest countries to a maximum 20% increase for the least wealthy (although they were still projected to have to make efforts to limit emissions). £ Progress is monitored by the Commission every year, with each country required to report its emissions.
  13. 13. 6. EU funding support £ NER 300 - For renewables and CCS: support for wide range of CCS technologies (pre-combustion, post-combustion, oxyfuel, and industrial applications) and RES technologies (bioenergy, concentrated solar power, photovoltaics, geothermal, wind, ocean, hydropower, and smart grids). £ Horizon 2020 - For research and innovation - Energy challenge: just under 6 billion euro allocated to non-nuclear energy research for the period 2014-2020. - Main priority areas: Energy Efficiency, Low Carbon technologies, and Smart Cities and communities
  14. 14. 7. Progress as of 2015 Renewables £ 25 EU countries are expected to meet their 2013/2014 interim renewable energy targets £ In 2014, the projected share of renewable energy in the gross final energy consumption is 15.3% £ The 2014 projected share of renewable energy in transport is 5.7% meaning that achieving the target will be challenging but feasible, with some EU countries making good progress Energy Efficiency £ Final energy consumption decreased by 7% between 2005 and 2013. £ Primary energy consumption decreased by 8 % in the same period. £ EU countries will need to do more if the 20% energy efficiency target for 2020 is to be met. Currently, the sum of all national indicative targets set by all EU countries will add up to a saving of 17.6% in primary energy consumption.
  15. 15. 8. What next? 2030 and beyond… £ The 2030 climate and energy framework sets three key targets for the year 2030: - At least 40% cuts in greenhouse gas emissions (from 1990 levels); - At least 27% share for renewable energy; - At least 27% improvement in energy efficiency £ The framework was adopted by EU leaders in October 2014 and builds on the 2020 climate and energy package. £ Given the levels of ambition in the 2050 low carbon roadmap, the targets for 2030 may have to change to remain in line
  16. 16. LOGOS Public Affairs Member of MCI Group EU Office : Sqaure de Meeus 35 B-1000 Brussels HQ : Boulevard du Souverain 280 B-1160 Brussels Tel: + 32-2-743 15 40 www.logos-eu.com Aleš ŠINKOVEC Senior Account Manager ales.sinkovec@logos-eu.com

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