Green Paper. A 2030 framework for climate and energy policies

The EU has a clear framework to steer its energy and climate policies up to 2020. This framework integrates different policy objectives such as reducing greenhouse gas (GHG) emissions, securing energy supply and supporting growth, competitiveness and jobs through a high technology, cost effective and resource efficient approach. These policy objectives are delivered by three headline targets for GHG emission reductions, renewable energy and energy savings. There are additional targets for energy used by the transport sector. In parallel, the EU has put in place a regulatory framework to drive the creation of an open, integrated and competitive single market for energy which promotes the security of energy supplies. While the EU is making good progress towards meeting the 2020 targets, creating the internal market for energy and meeting other objectives of energy policy, there is a need now to reflect on a new 2030 framework for climate and energy policies.

Early agreement on the 2030 framework is important for three reasons:
- First, long investment cycles mean that infrastructure funded in the near term will still be in place in 2030 and beyond and investors therefore need certainty and reduced regulatory risk.
- Second, clarifying the objectives for 2030 will support progress towards a competitive economy and a secure energy system by creating more demand for efficient and low carbon technologies and spurring research, development and innovation, which can create new opportunities for jobs and growth. This in turn reduces both directly and indirectly the economic cost.
- Third, while negotiations for a legally binding international agreement on climate mitigation have been difficult, an international agreement is still expected by the end of 2015. The EU will have to agree on a series of issues, including its own ambition level, in advance of this date in order to engage actively with other countries.

This framework for 2030 must be sufficiently ambitious to ensure that the EU is on track to meet longer term climate objectives. But it must also reflect a number of important changes that have taken place since the original framework was agreed in 2008/9:
- the consequences of the on-going economic crisis;
- the budgetary problems of Member States and businesses who have difficulty mobilising funds for long term investments;
- developments on EU and global energy markets, including in relation to renewables, unconventional gas and oil, and nuclear;
- concerns of households about the affordability of energy and of businesses with respect to competitiveness; and
- the varying levels of commitment and ambition of international partners in reducing GHG emissions.

The 2030 framework must draw on the lessons from the current framework: what has worked, what has not worked and what can be improved. It should take into account international developments and spur stronger international climate action. And it must identify how best to maximise synergies and deal with trade-offs between the objectives of competitiveness, security of energy supply and sustainability.

The framework should also take into account the longer term perspective which the Commission laid out in 2011 in the Roadmap for moving to a competitive low carbon economy in 2050, the Energy Roadmap 2050, and the Transport White Paper. The European Parliament has adopted resolutions on each of the Roadmaps. These Roadmaps were developed in line with the objective of reducing GHG emissions by 80 to 95% by 2050 compared to 1990 levels as part of necessary efforts by developed countries as a group.

The scenarios in these Roadmaps suggested the following key findings:
- By 2030 GHG emissions would need to be reduced by 40% in the EU to be on track to reach a GHG reduction of between 80-95% by 2050, consistent with the internationally agreed target to limit atmospheric warming to below 2°C.
- Higher shares of renewable energy, energy efficiency improvements and better and smarter energy infrastructure are "no regrets" options for transforming the EU's energy system.
- For renewables, the policy scenarios in the Energy Roadmap 2050 indicate a share of around 30% in 2030.
- Significant investments are needed to modernise the energy system, with or without decarbonisation, which will impact the energy prices in the period up to 2030.

The aim of this Green Paper is to consult stakeholders to obtain evidence and views to support the development of the 2030 framework. It begins with an overview of the current framework and what has been achieved and then presents the issues where stakeholder input is sought. In parallel, the Commission is consulting on issues relating to the international negotiations of a new legally binding agreement for climate action as well its policy to enable the demonstration of the carbon capture and storage technology.

EUR-Lex: COM(2013)169: Follow the progress of this paper through the decision-making procedure http://eur-lex.europa.eu/legal-content/EN/HIS/?uri=COM:2013:169:FIN

ESO: Background information: Commission moves forward on climate and energy towards 2030 http://www.europeansources.info/record/press-release-commission-moves-forward-on-climate-and-energy-towards-2030/

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