Communication: Second report on the State of the Energy Union

For the Energy Union, 2016 was the year of delivery. It was a year in which the vision of the Energy Union Framework Strategy was further translated into concrete legislative and non-legislative initiatives, most recently with the Clean Energy for all Europeans package presented on 30 November 2016. As a next step, the low emission mobility strategy will also be translated into concrete initiatives, in line with the Commission Work Programme for 2017. It is important that the co-legislators work towards the adoption of the proposed initiatives without delay and in line with the Joint Declaration of the three institutions on the European Union's legislative priorities for 2017, to allow for a swift energy transition on the ground.

The Energy Union is a European priority project, identified by the Juncker Commission as one of the 10 political priorities, in which five dimensions are closely interlinked: energy security, solidarity and trust; a fully integrated European energy market; energy efficiency contributing to moderation of demand; decarbonising the economy; and research, innovation and competitiveness. Progress has been made on all these dimensions.

The Energy Union is about more than energy and climate alone: it is about accelerating the modernisation of Europe’s entire economy, making it low carbon and efficient in energy and resources, in a socially fair manner. Its ultimate goal is to make sure that Europe's consumers, workers and businesses benefit from it. European companies should be at the forefront of the necessary investments, since this would create an early mover advantage for new technologies and business models. There is, in other words, a strong business case for the transition to a more modern, low carbon economy.

This also requires a strong external dimension. In a fast-changing geopolitical environment, a successful Energy Union is crucial to protect the long term economic interests and well-being of Europe and its citizens. Work on the internal agenda has therefore been complemented by a reinforced energy diplomacy, designed to strengthen security of energy supply, to expand exports of European low carbon technology solutions and boost industrial competitiveness. More generally, energy diplomacy should increase Europe’s room-of-manoeuvre, together with its international partners, in a more volatile world. This is the area where Europe has solid potential to show global leadership.

A strong external dimension includes a robust climate diplomacy, showing leadership in steering the world towards a global clean energy transition and contributing to achieving the Sustainable Development Goals, in particular ensuring sustainable energy for all. Following the adoption of the Paris Agreement in December 2015, it was the swift ratification by the European Union that enabled the entry into force of the first-ever universal, legally binding global climate deal on 4 November 2016.

In 2016, the European Union demonstrated that it is also at the forefront of implementing the Paris Agreement at home. The Commission has adopted all the legislative proposals necessary to deliver the European Union's ambitious commitments under the Agreement. These proposals and the facilitating measures accompanying them contribute fundamentally to the Commission's overall agenda to create jobs, growth and related investments. At the same time, the Commission proposals should ensure that this transition remains affordable for European citizens and businesses alike, and that it leads to new jobs, skills and opportunities, boosting growth and ensuring high quality of life in the European Union. This is what also young Europeans expect from the European Union.

For all these reasons, the focus now turns to implementation. Agreement with the European Parliament and the Council should be reached on the legislative initiatives, existing legislation should be implemented and the Treaty’s competition and state aid rules should be strictly enforced. At the same time non-legislative action at Union, national and local level should continue and be reinforced.

ESO: Background information: Second report on the State of the Energy Union (February 2017) http://www.europeansources.info/record/second-report-on-the-state-of-the-energy-union/

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