Setting EU 2030 Targets: Lessons Learnt

In her speech at Gas Week 2013, Mechtilde Wörsdörfer, Head of Unit "Energy Policy & Monitoring of electricity, gas, coal and oil markets", DG Energy, European Commission, offered an outline of the Commission's future Framework on climate and energy policies for 2030, and the role of gas within it.

Recalling the Framework for 2020, she said the Commission had agreed rather ambitious targets for 2020. "Now in 2013 we have an economic crisis in most member states and we have to prepare and take that into account."

She reported that the Commission had done Energy and Low Carbon Economy Roadmaps for 2050. Ms. Wörsdörfer recalled that the Green Paper published by the Commission on 27 March had resulted in many questions. "And we expect a lot of answers, which we will then analyze; the idea is to come up with proposals by the end of this year to prepare and define this climate and energy policy framework."

According to her, a stakeholder conference was being organized for 19 June in Brussels, and other events would follow.

"Why are we preparing this Framework? First of all, it's to increase certainty. Energy investments, as you all know, are long term, so even though we have a 2020 framework, investments done now are long term and we need more certainty, both for investors and the member states."

Of growth and jobs, she said: "In the Green Paper we say 'we could create 5 million jobs in renewable energy and efficiency by 2020 if all goes fine.' We will do a more in-depth study now on the transformation of the energy sector and the different scenarios predicted in the Roadmap 2050 to look at the gains and losses of employment during that progress of transformation."

The figures would be available before summer, she said.

The 2030 Framework was also being done to define the EU position in view of international climate change negotiation in Paris in 2015.

"When we look at our three objectives in defining the 2020 targets, they were more focused on sustainability than the others. Times have changed," explained Ms. Wörsdörfer, "and the Green Paper has a specific chapter on competitiveness and security of supply, and a set of questions, because if you look at our objectives equally to the three objectives if we're speaking about emissions reduction or reduction of consumption, it fulfills the objective of sustainability, but also partly competitiveness.

"The need to diversify our sources, our routes, be open for indigenous resources—conventional and unconventional resources in the gas sector, for example—is a good way to diversify our supply."

She noted the existence of grid stability, which was a key issue for infrastructure. "Here the Commission has already come up with a number of proposals."

In terms of competitiveness, she said the issue of energy prices was absolutely key and being discussed in the member states. Ms. Wörsdörfer recalled the situation in Bulgaria, where the government had to step down, partially as a result of increased energy prices there.

She asked what could be learned from the 2020 Framework to take into account for the 2030 framework, offering, "We will also monitor progress made in the three targets on GHG reduction, where we are roughly around minus 16% compared to 1990.

"Indeed, there are some member states where the CO2 emissions are going up," she admitted, "but the tendency is that they are going down."

For renewables, she said the Commission had published a progress report together with a Green Paper 2030 on 27 March, explaining, "We are very happy because we are above the indicative target of 11.7%; we had 12.7% in 2010."

She said the latest figures made it clear that in some member states policies had changed: renewables schemes had been cut, like in Spain, the Czech Republic. "It is clear that we need to monitor very closely in a number of member states that will need additional efforts to meet their EU target for renewables."

Regarding energy efficiency and consumption, she said it was a key area, but it was not likely the Union would achieve minus 20%, even with the efforts of the Energy Efficiency Directive and all other measures.

Ms. Wörsdörfer outlined the challenges for 2030, like the increase of import dependency. "Everything we can do to look at our own resources, be they renewables, gas or other inside the EU, it is important, but also to look at rising energy prices and what we can do," she said.

Completion of the Internal Energy Market was key, both for electricity and natural gas.

"It's very clear that we need massive investments, both in transmission and distribution networks inside the member states, but certainly also cross border."

She noted that the low carbon price was not providing any incentive, commenting: "The EP has voted against the backloading proposal, so it might be even more important to look at that in the context of the 2030 framework."

There were four areas in which the Commission was soliciting feedback, according to her, such as which of the targets it should propose, about which there was a wide range of opinions. "But obviously it's interesting for us which will be binding for different sectors. Besides targets, it's also important to look at instruments we can have to fulfill our objectives—R&D can play a key role.

"On competitiveness and security of supply we have to look at EU policies, taking into account international developments to find out how we can ensure we have competitive and affordable energy prices."

The last area, she said, was to be realistic and include all member states in the debate, that their situations could vary greatly.

Ms. Wörsdörfer concluded by inviting those in attendance to weigh in on the Green Paper, and that the Commission would come up with proposals by the end of the year.