Towards a low-carbon energy future
Transcript of Towards a low-carbon energy future
Towards a low-carbon energy future
Dr Derek M. Taylor
Energy Adviser
European Commission
Content
• Energy the EU in 2006
• The first Energy and Climate Change Package
• Completion of the Internal Energy Market
• The second Energy and Climate Change Package
• A new Energy Package
• Where are we now?
The European system
European Commission
European Council (Representatives of EU Member States)
European Parliament
PROPOSES
ADOPTS
for policy development and legislation for policy development and legislation -- Very simplifiedVery simplified!!
EU energy situation in 2006
Our energy supply:
• Was increasingly dependent on imported sources
• Was increasingly expensive (and making us less competitive with others)
• Was increasing pollution and accelerating climate change
- So a new energy policy was urgently needed
Security of supply
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
total oil natural gas solids
2000 2010 2020 2030
Main sources of imports
• Main suppliers of oil
– Russia (31%)
– Norway (20%)
– Saudi Arabia* (13%)
– Libya (10%)
– Iran* ( 7%)
– (* Total Middle East ~22%)
• Main suppliers of gas– Russia (42%)
– Norway (24%)
– Algeria (18%)
– Mainly LNG (16%)
• Main suppliers of coal
– South Africa (26%)
– Russia (16%)
– Australia (15%)
– Colombia (12%)
Border prices for oil and gas
Changes in CO2 emissions(in millions of tonnes – relative to 1990)
-200
-100
0
100
200
300
400
500
600
2000/1990 2010/1990 2020/1990 2030/1990
transport industry electricity/steam other total CO2
On a clear day …..
But all too often ……
….and the cause?
Energy and Climate Change- 1 -
• The first “Energy and Climate Change”package was adopted by the Commission in January 2007
• It became known as the “3 x 20 by 2020”
• It forms the basis of an EU energy policy
Core Objective
The core objective of the policy is:
• A 20% reduction of the greenhouse gas emissions thatenergy produces by 2020
• A « must do » target is we are to slow down climate change
And even …..
One very important target of 30%
• The Commission believes that when an international agreement is reached on the post-2012 Kyoto targets, that this shouldlead to a 30% cut in greenhouse gasemissions from developed countries by 2020 (of course!)
The other “20”s
Renewable energies
• Increase the level of renewable energiesin the EU’s overall energy mix to 20% by 2020
Energy efficiency
• The policy calls for a ambitiousimprovement in energy efficiency of 20%by 2020
European Summit of March 2007
• At the European Summit of March 2007 the Heads of State/Head of Government of the EU Member States strongly endorsed the Commission’s proposal.
• All three “20”s were endorsed by the Member States.
• The Commission was invited to follow up with proposals for legislation in a number of areas.
The Internal Energy Market
• The expected opening of the EU energy markets is slower than expected
• Further EU liberalisation is an important element of Community energy policy
• The Council clearly supported the Commission’s efforts to secure an effective liberalisation of EU energy markets and its work to secure more open and transparent energy markets.
As a result:
• Adoption by the Commission of the third package on energy market liberalisation on 19 September 2007
Main elements of the 3rd Internal Market Package
• The main elements of the Third Package are:
– Unbundling
– Control of EU networks – third country companies
– Facilitating cross-border transfers – new Agency
– More effective national regulators - measures
– Promoting cross-border collaboration and investment – European Network of TSOs
– Greater transparency - network operation and supply and pricing
– Increased solidarity – in the face of threats to supply
Energy and Climate Change - 2 -
• In January 2008 the Commission adopted the second “Energy and Climate Change”Package
• The main focus of this was on new legislation covering:
– Emission Trading (the ETS)
– Renewables
– Carbon Capture and Storage
Reducing Greenhouse Gases
• Proposal to amend the Directive which establishes the EU ETS.
• Cover the period beyond 2012
• Objective is to strengthen, expand and improve the functioning of the ETS
• The Directive defines MS emissions of GHG in 2020
Main changes to existing Directive
• Some of the main changes to the scheme include:– There will be one EU-wide cap on the number of
emission allowances instead of 27 national caps.– The annual cap will decrease along a linear trend line,
which will continue beyond the end of the third trading period (2013-2020).
– A much larger share of allowances will be auctioned instead of allocated free of charge.
– A number of new industries (e.g. aluminium and ammonia producers) will be included in the ETS; so will two further gases (nitrous oxide and perfluorocarbons).
Use of renewable energies
• This proposed legislation is to establish binding targets for the share of renewable energy sources in consumption and for biofuels in transport.
• A Community with target of 20% for renewables – with a specific binding target identified for each MS – by 2020
• Each MS to have 10% biofuels in transport
Current and future EU objectives for renewables
10%20%2020 (proposed
binding objective)
5.75%12%2010 (indicative
objective)
1.5%(2006)
8.5% (2005)Current (achieved)
BiofuelsRenewable
energy
Some examples….
13%6.1%Czech Republic
15%7.2%Poland
14%2.4%The Netherlands
15%1.3%UK
18%5.8%Germany
23%10%France
49%39.8%Sweden
38%28.5%Finland
16%9.4%Bulgaria
13%2.2%Belgium
Renewables Target 2020
Renewables 2005MS
Geological storage of CO2
• Main elements of a new Directive are:
– Enables CCS by providing legal framework
– Provisions for ensuring environmental integrity through the life-cycle of a storage plant (site selection up to post closure)
– CO2 captured and stored will be considered not emitted under the ETS
• The proposal is widely supported by Member States.
Demonstrating CCS
• While all technologies that will be used for CCS are in use, they have not been deployed together on a commercial scale
• Demonstration of CCS is therefore vital
• This should help convince the public (and politicians) that the technology works
• It should also result in technology improvements
• ….. and bring down the costs
Some of the (burden sharing) discussions are clearly proving to be very “difficult”….
Meanwhile ……
ETS and Renewables
• A big part of the debate is about “burden sharing” for both CO2 and RES
• The Commission proposals were based on exhaustive studies and analyses – in particular the “Impact Assessment” (SEC (2008) 85/3), its Annex (SEC (2008) 85 - 211 pages!) and other supporting documents
• All these documents are publicly available
• Please remember – the sole objective of the ETS is to drive down carbon emissions – in the fairest and most cost effective way possible
• Renewables, on the other hand, both reduce carbon emissions and increase security of supply.
Strategic Energy Review 2- and other documents
Adopted by the Commission on 13 November 2008 :
20 documents including:– 5 legislative proposals
• Oil stocks• Energy performance of buildings• Energy labelling• Tyres labelling• CHP Guidelines
– 8 Communications • Including SER, Green Paper on TEN E, Offshore wind, Update of
PINC, Energy efficiency proposals
– Remainder are staff working papers • Including one on energy demand, supply and investments
2nd Strategic Energy Review
• Title “An EU Energy Security and Solidarity Action Plan”(provisional)
• Number of interesting remarks– A competitive energy market is fundamental to achieving the
"20-20-20" targets.– The Energy Package will reduce energy consumption by as
much as 15% in 2020.– Complementary measures necessary to achieve 3 objectives –
above all security of supply.– Net imports of fossil fuels are expected to stay at roughly today's
level. – even when package fully implemented.
• Also looks at challenges to be faced beyond 2020
An EU Energy Security and
Solidarity Action Plan
• A five-point Action Plan covering:
– Infrastructure needs and the diversification of energy supplies
– External energy relations
– Oil and gas stocks and crisis response mechanisms
– Energy efficiency
– Making the best use of the EU’s indigenous energy resources.
Promoting energy infrastructure– 6 priorities
• Connect isolated energy markets - Baltic Interconnection Plan
• Southern gas corridor – must be developed –one of highest priorities
• Mid-2009 Communication
• LNG Action Plan in 2009• Communication on completing the
Mediterranean energy ring (2010)• N-S gas and electricity interconnection –
building on NETS initiative• Blueprint for a North Sea Offshore Grid – one of
building blocks for EU supergrid
A new impetus on energy efficiency
• 2008 Energy Efficiency Package
– Energy performance of Buildings – develop energy certificates of buildings into a real market instrument
– Revision of Energy Labelling Directive – extend beyond household appliances
– New energy label for car tyres
– Intensification of implementation of the Ecodesign Directive – e.g. new minimum requirements for light bulbs to be adopted, stand-by and off mode functions, street and office lighting ….
Energy efficiency continued…
– Promotion of co-generation – detailed guidelines for implementation of the Cogeneration Directive
– Cohesion Programme allocated over €9 billion to promotion of EE and RES
– Green Tax Package – review Energy Tax Directive and examine VAT and other fiscal instruments to see how they can be used to promote energy efficiency.
– Build on the IPEEC
– Evaluate the Energy Efficiency Action Plan in 2009 and prepare a more focused plan
Main scenario in 2020
233218249221257Nuclear
274270221197123Renewables
253216340342320Solids
345399443505445Gas
567608648702666Oil
16721712190319681811P.E.D.
New Policy
$100/bbl
New Policy
$61/bbl
Baseline $100/bbl
Baseline $61/bbl
2005mtoe
Vision for 2050
• Decarbonising EU electricity supply
• Ending oil dependence in transport
• Low energy and positive power buildings
• Smart electricity grid
• Prepare a "Roadmap towards a 2050 Energy Policy" in the framework of the SET Plan.
Finally…..
• The 20-20-20 by 2020 are targets that, once met, will set us well on the road towards achieving our vision for 2050
• They are important – in fact, very important if not vital – steps to a sustainable future
• If we fail to achieve them the cost to ourselves -and to the next and future generations – cannot be overestimated. But it will certainly be enormous.
• If you think life it hard now ……