Green growth is the new black
By Glen Hodgson, Head of Transport and Energy Practice
Climate change is at the top of the agenda of EU policymakers, the business community and citizens alike. The EU has set itself ambitious climate targets, the so called 20-20-20 goals. This threefold approach to climate change involves reducing greenhouse gas emissions by 20% by 2020, increasing energy efficiency to save 20% of the EU's primary energy consumption and ensuring that renewable energy resources fuel at least 20% of Europe’s energy consumption. This bold set of targets needs to be achieved against the backdrop of the disappointing COP 15 Climate Change conference that occurred in Copenhagen last December.
Although the Copenhagen negotiations failed to yield any concrete results, European policymakers are seemingly undaunted. Not only have they put green growth at the heart of Europe’s 2020 Strategy, but the European Commission is even considering the possibility of upgrading Europe’s 2020 carbon reduction target from 20% to 30%, compared to 1990 levels. As Europe looks to transition to a sustainable, low-carbon economy, a key issue in the overall debate will be the definition of the relationship between climate change and Europe’s overall energy policy priorities.
Hedegaard, Potocnik and Oettinger in the hot seat
Over the past 100 days, EU Climate Action Commissioner Connie Hedegaard, Energy Commissioner Gunther Oettinger and Environment Commissioner Janez Potocnik have sat in some of the hottest seats in Brussels, and they have wasted no time in getting to work after confident performances during their hearings before the European Parliament.
Given the current economic situation, Commissioner Hedegaard has stressed the importance of the EU reallocating funds from areas like agriculture and devoting those resources to combating climate change. This would mean modernising European agriculture and making all the related processes greener. Hedegaard is also working on a Transport and Climate package with Transport Commissioner Siim Kallas. In this regard, she certainly wants to establish Europe as a global leader on climate change and to set the pace for the rest of the world.
The Commissioners have also underlined energy efficiency as a priority, especially as it relates to the construction of new buildings and the renovation of older ones. As usual, the devil of these initiatives is in the details, and therefore, the Commissioners have acknowledged that enforcement of any new legislation among EU Member States will be just as important as the creation of the legislation.
A busy agenda
The European Commission has a whole host of policy initiatives that it will pursue this year. The European Council will discuss the EU’s 2010-2014 Energy Action Plan in June. Currently, it is taking stock of the situation, with a view towards adopting the plan early next year. In the second half of 2010, the Commission will consult stakeholders on a low-carbon energy roadmap for 2050. The results of that consultation are due out in 2011.
Security of energy supplies also remains a key issue for European stakeholders and citizens, particularly in light of recent gas crises that left EU citizens without heat in the middle of winter. Many leaders would like to prevent energy supplies being used as geopolitical bargaining chips.
DG Energy will also soon receive an interim report from the task force on smart grids. Smart grids and smart metering will help the EU bring about efficiency savings. Additionally, they will facilitate micro-generation and the roll-out of green technologies such as the charging infrastructure for electric vehicles. Later this year, a legislative package on energy infrastructure is expected.
Over the past 100 days, the Commissioners have also begun addressing the role of nuclear energy in Europe’s energy mix. Some do not see nuclear as being a sustainable energy source but have nonetheless underlined that safety and R&D are very important. Vast amounts of money will likely be devoted to nuclear R&D but not to the detriment of renewable sources. Having launched a public consultation on nuclear energy in March 2010, the Commission has indicated that the further use of nuclear power will be a major political issue. In that vein, policymakers are exploring a possible EU legislative proposal on the management of spent fuel and radioactive waste. Not surprisingly, public opinion is strongly in favour of stronger rules on radioactive waste management, so this is an area in which policymakers can gain a few easy political points. The Commission will also adopt a Communication on nuclear energy (including an update on the Nuclear Illustrative Programme) later this year.
The Commissioners certainly have a busy schedule but when it comes to shaping the future agenda for environment, climate and energy policy, there really is no time like the present.