| Author (Person) | Taylor, Simon |
|---|---|
| Series Title | European Voice |
| Series Details | 11.01.07 |
| Publication Date | 11/01/2007 |
| Content Type | News |
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The parts of the energy package that the Commissioners found most difficult to agree on were the greenhouse gas reduction targets and the issue of ownership unbundling for energy companies. European Environment Commissioner Stavros Dimas was arguing for a 30% reduction target in greenhouse gas emissions by 2020 but the majority view of commissioners was that 20% was more realistic and this view prevailed. Barroso said after the meeting that he doubted that the Commission’s targets would have been accepted by member states if they had been more ambitious. "We could be more ambitious but it would not be adopted," he said. He emphasised that the EU was alone in making a pledge for greenhouse gas reductions beyond 2010 when the current Kyoto Protocol expires. There were also divisions over whether to call for ownership unbundling for energy companies, with opposition coming from Jacques Barrot, the Frenchman who is transport commissioner. He spoke out against the enforced splitting off of energy firms’ transmission and distribution businesses. Even though EU Competition Commissioner Neelie Kroes is convinced that ownership unbundling is the most effective way of ensuring effective competition, she came up with a formula with Energy Commissioner Andris Piebalgs saying that there should be a commitment to further unbundling through ownership unbundling or through a fully independent system operator. This was accepted by the commissioners. Barroso said: "The Commission has set out a clear preference for the option of ownership unbundling." He argued that creating a truly competitive energy market was essential as an inquiry into the sector, ordered by Kroes, showed that gas and electricity markets were not performing as they should. On nuclear energy, the Commission warned that any reduction in the level of use of nuclear energy (around 30% of total electricity supply) should be phased in with the introduction of other low-carbon energy sources. Otherwise, it warned, "the objective of cutting greenhouse gas emissions and improving security of energy supply will not be met." Barroso stressed that the decision on whether to rely on nuclear energy was up to each member state but emphasised that it was essential to move to a low-carbon economy. Barroso highlighted the need to ensure reliable supplies, referring to the recent dispute between Belarus and Russia which cut off supplies of oil to Germany, Poland, Hungary, Slovakia and other EU member states. "The cut in oil supplies from Russia is unacceptable and raises a real problem of credibility [of Russia as an energy supplier]," he said. He stressed the need for the EU to develop a common external energy policy to enable it to "speak with one voice to third countries", adding: "We can only be credible if we speak with one voice internally." He emphasised that the EU, while it was setting the most ambitious targets for reducing greenhouse gas emissions after 2012, could not be expected to fight global warming alone. The EU needed to do its utmost to convince its international partners to play their part in cutting greenhouse gases and tackling climate change. Referring to his recent visit to the US to see US President George W. Bush and the new leaders of the Democrat controlled Congress, he said that he expected the US to "change and be much more ambitious in the future". Key elements of the energy package
- This over-arching paper asks governments to endorse a ten-point action plan at the European Council in March - The challenge is defined as "transforming Europe into a highly energy efficient and low CO2 energy economy, catalysing a new industrial revolution, accelerating the change to low carbon growth and, over a period of years, dramatically increasing the amount of local, low emission energy that we produce and use"
- Four EU energy co-ordinators are needed to oversee critical network infrastructure projects - Co-operation between system operators must be improved - Governments should aim to complete EU infrastructure projects within five years at most - Renewable energy should be better integrated in the energy grid
- EU rules have so far not created a working and competitive internal energy market - The EU should work to put a competitive market, with a European gas and electricity grid in place by January 2009 - Before then the Commission will propose legislation on minimum transparency standards and minimum network security standards - An EU energy regulator is needed to oversee the market. If a single regulator is not possible a European network of independent regulators could be accepted as a minimum - Production and distribution of energy have to be more clearly separated - The Commission prefers the option of ownership unbundling
- The EU will miss its non-binding target of getting 12% of its energy from renewable sources by 2010 - The EU should commit itself to getting 20% of its energy from renewables by 2020 - The Commission will in 2007 propose a renewables legislative package to increase the use of renewable energy for electricity, heating and cooling and transport. - Member states will have to change their national policies to increase the use of renewables.
- The EU will miss its non-binding target of generating 21% of its electricity from renewable sources by 2010 - The Commission will this year re-examine support schemes for renewable electricity
- The EU will not meet its non-binding target to replace 5.75% of petrol and diesel with biofuels by 2010 - The EU should adopt a binding target to get 10% of its transport fuels from biofuels by 2020
- The EU should commit itself to cutting greenhouse gas emission by 20% by 2020 - It should also work for an international commitment for developed countries to cut emissions by 30% by 2020
- The Commission will publish a proposal for a European Strategic Energy Technology Action Plan by the end of 2007 - This should be endorsed by the spring European Council in 2008
- Nuclear power is one energy option with a major role to play in the fight against climate change - Nuclear is one of the cheapest low-carbon energy sources - The decision on whether or not to use nuclear power rests with member states - The Commission will draw up a new nuclear energy framework to help member states which choose nuclear - In particular, new rules are needed for waste management and decommissioning funds - The EU must continue its work to develop nuclear fusion
- The Commission plans to help Europe build up to 12 large-scale clean coal demonstration projects by 2015 - By 2020 all new coal power plants should include CO2 capture and storage (CCS) technologies
- Newcomers are blocked from the EU energy market by anti-competitive behaviour - The Commission will take legal action against the worst offenders - Possible cartels, high costs, market concentration, under-investment and inefficiency pose particular problems Emily Smith The parts of the energy package that the Commissioners found most difficult to agree on were the greenhouse gas reduction targets and the issue of ownership unbundling for energy companies. |
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| Source Link | http://www.europeanvoice.com |
