DG Energy and Transport, European CommissionFabrizio Barbaso

17/04/2008

EU RENEWABLE ENERGY PROPOSALS

ARF Energy Security Seminar

EUROPEANCOMMISSION

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Integrated climate and energy policy

FULLY FULLY

BALANCED BALANCED

INTEGRATEDINTEGRATED

AND AND

MUTUALLY REINFORCEDMUTUALLY REINFORCED

Sustainable Development

Competitiveness

Security of supply

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Key drivers by 2020

By 2020 +20% EFFICIENCY

BIO-FUELS

Min 10%binding

ELECTRICITY

MS binding choice

HEATING & COOLING

MS bindingchoice

By 2020 binding 20% RENEWABLES in final energy consumption at EU level

NATIONAL TARGETS & ACTION PLANS

By 2020 -20% EU GHG

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European Commission proposals 23/01/08. A new EU emissions trading scheme with a European (not national) cap, auctioning of

allowances: to generate reductions in GHG of 21%

. New national targets to achieve a 10% GHG reduction in non ETS sectors

. A framework to promote the development of CO2 capture and storage

. New guidelines on state aid for environmental protection

. An assessment of national Energy Efficiency Action Plans

. New directive to reach the 20% renewable energy target and 10% biofuels target

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The renewables directive

. Sets mandatory national targets for renewable energy shares, including 10% biofuels share, in 2020 (Articles 3 and 5)

. Requires national action plans (Article 4)

. Standardises “guarantees of origin” (certifying the renewable origin of electricity or heat) and enables the transfer of these to provide flexibility to Member States (Articles 6, 7, 8, 9 and 10)

. Requires reduction of administrative and regulatory barriers (Article 12), improvements in provision of information and training (Article 13) and improves renewables’ access to the electricity grid (Article 14)

. Creates a sustainability regime for biofuels (Articles 15-18)

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Trajectory to 20%

0

5

10

15

20

25

30

35

40

45

50

2005 2011/12 2013/14 2015/16 2017/18 2019/20

Austria

Belgium

Bulgaria

Cyprus

Czech Rep.

Denmark

Estonia

Finland

France

Germany

Greece

Hungary

Ireland

Italy

Latvia

Lithuania

Luxemb.

Malta

Netherl.

Poland

Portugal

Romania

Slovakia

Slovenia

Spain

Sweden

UK

EU27

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Responding to the triple challenge

FULLY FULLY

BALANCED BALANCED

INTEGRATEDINTEGRATED

AND AND

MUTUALLY REINFORCEDMUTUALLY REINFORCEDSustainable

Development

• Close link to greenhouse gas emission target – savings of 600 to 900 mln tonnes of CO2

Competitiveness • With falling renewable energy prices, renewables are increasingly an economically sound alternative

Security of supply

• Renewable energy mostly generated within the EU

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Promotion of biofuels

Sustainability criteria for biofuels: . GHG savings – minimum of 35%

. No raw material from undisturbed forests, biodiverse grassland, nature protection areas (unless taken harmlessly)

. No conversion of wetlands and continuously forested areas for biofuel production (to protect carbon stocks)

. All EU biofuels must meet “cross compliance” environmental rules

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Role of technology

. Renewables sector has growing importance worldwide – already turnover of €30 billion in the EU, providing approximately 350,000 jobs

. But renewable energies are at different stages of technological and commercial development

. Increased demand will improve economies of scale and lower costs

. Continued international cooperation in research is necessary

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Thank you for your attention!

For more information on integrated proposal for Climate Action, including the renewables directive proposal:

http://ec.europa.eu/energy/climate_actions/index_en.htm