| Author (Person) | McLauchlin, Anna |
|---|---|
| Series Title | European Voice |
| Series Details | Vol.11, No.21, 2.6.05 |
| Publication Date | 02/06/2005 |
| Content Type | News |
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By Anna McLauchlin Date: 02/06/05 Europe should cut its energy consumption by 20% over the next 15 years, according to a draft Green Paper overseen by Energy Commissioner Andris Piebalgs. But the plan, scheduled to be published later this month, may yet change before adoption as the Commission's finance and industry departments (DG Ecfin and DG Enterprise) are critical of the draft. Piebalgs proposes in the draft paper that member states focus on fiscal incentives and cleaner transport to slash their energy needs. Cutting consumption by 20% would mean an annual decrease of 0.9% until 2020 and savings of €60 billion per year, instead of the current estimated average annual increase of 0.6%, the paper says. Member states should be subject to mandatory energy efficiency targets enshrined in the national plans that they will submit to the Commission at the end of 2005, it says. According to the Commission, market tools should play a large part in cutting energy consumption. It urges member states to make more use of fiscal measures, such as reduced Value Added Tax on energy efficient products or higher rates on high-consuming goods, such as gas-guzzling cars. Recognising that it is notoriously difficult to reach consensus on tax issues, the Commission suggests that a group of member states could agree on certain policies under the EU's enhanced co-operation method. It recommends that member states review their lighter tax regime for company cars, which are "far from being conducive to using public transport for going to work", and reiterates plans to force public authorities to buy cleaner vehicles. State aid should be steered towards eco-innovation and productivity gains due to energy efficiency, the paper says. It also recommends that the European Investment Bank and commercial banks should improve access to investment for smaller energy saving projects. Energy saving in buildings also comes under scrutiny in the paper, which suggests that measures to improve the energy efficiency of buildings, to come into force in 2006, could be extended to the renovation even of small buildings. It would set mandatory standards for lighting to reduce the life-cycle costs and heat emissions. Stephan Singer, head of WWF's European climate and energy programme, said that the paper was a "missed opportunity" to set minimum targets for energy efficiency standards for appliances, corporations and public authorities. "Nobody disputes that taxes can work as an incentive but we know from experience that it is an endless debate," he said. "The Commission shouldn't fiddle around the edges but go in and set meaningful standards." The draft may change, as sources say that DG Enterprise and DG Ecofin fear the current text may put too heavy an economic burden on member states. If adopted on 15 June as planned, the paper will be discussed by energy ministers in December, along with an action plan from the Commission which could lead to concrete proposals in 2006. annamclauchlin@economist.com Anticipation of a debate in the European Commission on the adoption of a Green Paper on energy efficiency. In his draft for the Paper, European Commissioner for Energy, Andris Piebalgs, suggested that Europe cut its energy consumption by 20% until 2020. |
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| Source Link | Link to Main Source http://www.european-voice.com/ |
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| Subject Categories | Energy |
| Countries / Regions | Europe |
