5 Climate and energy policies 2030
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8096/13
COM(13) 169
| Commission Green Paper: A 2030 framework for climate and energy policies
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| Legal base | —
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| Document originated | 27 March 2013
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| Deposited in Parliament | 5 April 2013
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| Department | Energy and Climate Change
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| Basis of consideration | EM of 16 April 2013
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| Previous Committee Report | None, but see footnote
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| Discussion in Council | No date set
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| Committee's assessment | Politically important
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| Committee's decision | Not cleared; Opinion sought from the Energy and Climate Change Committee under Standing Order No. 143 (11)
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Background
5.1 The Commission notes that the EU has a clear framework
for its energy and climate policies up to 2020, aimed at integrating
objectives such as reducing greenhouse gas emissions, securing
energy supply and supporting growth, and involving targets for
emission reductions, uptake of renewable energy, and energy savings,
and supported by a regulatory framework aimed at creating a single
market for energy. It says that, whilst good progress is being
made, there is a need now to consider a new framework for policies
in this area up to 2030, bearing in mind the long investment cycles
involved. It has therefore produced this Green Paper, which seeks
to explore available options, and poses a number of questions
on which responses have been invited by 2 July 2013.
The current document
5.2 The Commission says that the EU's approach must enable
it to meet its longer-term climate objectives set out in the Energy
Roadmap 2050,[35] whilst
taking into account the changes which have taken place since the
current framework was agreed in 2008-09, including the on-going
economic crisis, budgetary considerations, developments in energy
markets, the impact on household budgets and competitiveness,
and the international dimension, including the efforts made more
widely to reduce greenhouse gas emissions.
5.3 The Green Paper begins by reviewing the current
policy framework, and the progress made towards the targets of
achieving by 2020 a 20% reduction in emissions of greenhouse gases
through the Emissions Trading System and Effort Sharing Decision;
a 20% share of consumption for renewable energy following the
introduction of indicative targets; and a 20% saving in energy
consumption, through such measures as the Energy Efficiency Directive.
It also notes the extent to which legislation on the internal
energy market, and investment in infrastructure and new technology,
has contributed to the security of supply, and affordability,
of energy.
5.4 The document then identifies a number of
key issues for consideration. These include:
The use of targets
The Commission notes that there are differing views
about the usefulness of targets, including the level at which
they should be set and whether they should be legally binding.
It suggests that, whilst there is a broad consensus on the need
for interim greenhouse gas reduction targets if the EU is to achieve
its aim of a 80-95% reduction by 2050, further consideration needs
to be given to the role of targets for renewable energy and energy
efficiency (and the possible interaction between them), how these
should be expressed, how far they should be aspirational or binding,
and the balance between action at EU and Member State levels.
Coherence of policy instruments
The Commission notes that a combination of measures
will be needed, which will interact with each other, and that
it is also necessary to take into account the extent to which
the approach to the targets for 2020 has led to different approaches
by Member States in areas such as support schemes for renewables,
energy efficiency, and taxation. It suggest that a balance needs
to be struck between concrete measures at EU level and Member
States' flexibility to operate in ways most appropriate to their
own circumstances: and it also highlights the role which EU financial
support, particularly through Cohesion Policy and Research Programmes,
plays in relation to climate change and renewable energy, and
the role of globally agreed standards and policies in areas such
as shipping and aviation.
Impact on competitiveness
The Commission notes that energy policy must contribute
to EU competitiveness, but cautions on the danger of rising energy
prices, and of international developments (in particular the impact
of US shale gas) leading to an increasing divergence between EU
prices and those of other major industrial economies. It adds
that the various drivers of national energy costs need to be analysed,
with the issues to be addressed including greater market integration,
exploitation of oil and gas resources, diversified supply routes,
international climate negotiations, legislation on aviation and
maritime emissions, and the continuing impact of the Emissions
Trading System, including the distribution of revenues from it.
Capacity of Member States
Finally, the paper notes that the current policy
framework takes into account the differences between Member States
in terms of wealth, industrial structure, energy mix, exploitable
renewable sources and social structure, and the need to consider
how far any future framework should do so, pointing out that,
although differentiated targets may promote fairness, they also
work against the objectives of the internal energy market and
increase costs. It says that decisions in this area must depend
on comprehensive information about Member State-specific circumstances.
5.5 The Green Paper concludes by inviting comments
on a number of questions (see the Annex to this chapter).
The Government's view
5.6 In his Explanatory Memorandum of 16 April
2013, the Secretary of State for Energy and Climate Change (Edward
Davey) says that his Department is currently coordinating the
UK's response to the Commission's consultation, but he notes that
there is a significant discussion in the EU about the future of
its climate and energy policy, with investors having expressed
concerns about the uncertainty over the future regime after 2020,
bearing in mind their long planning horizons.
5.7 The Minister says that, domestically, the
UK already has a clear approach to a long-term climate and energy
framework, setting five-yearly carbon budgets to 2027, with a
trajectory for emissions reduction in line with the global ambition
to keep temperature rises below 2C. In addition, it has supported
the Commission's 2050 Roadmap, which identifies that the cost-effective
pathway for the EU to achieve the shared objective of cutting
1990 emission levels by 80-95% in 2050 will involve reductions
of 25% in 2020, 40% in 2030 and 60% in 2040.
5.8 The Minister also says that the ultimate
goal is to secure the EU-wide emissions reduction objective for
2050 cost effectively, and that the Government has not yet formed
a position on the 2030 framework. However, it considers that the
focus of any potential package for 2030 should be on ensuring
that the economically efficient decarbonisation pathway can be
taken in a way which promotes EU competitiveness and security
of supply. He adds that Member States will benefit from having
a clear framework for climate ambition, but that consideration
should be given as well to flexibility at the national level on
how to achieve the transition to a low carbon economy in a cost
effective way, with Member States able to select the most appropriate
energy mix to meet their needs. In particular, it will be important
for any EU framework to support the UK's own electricity market
reform, designed to promote investment in low carbon technologies
competing on price over time.
Conclusion
5.9 This document addresses a subject of some
topical interest, and highlights a number of policy areas where
further action may be needed in the not too distant future, and
consequently we think it right to draw it to the attention of
the House. As it is essentially a progress report, we think it
unlikely that it raises issues which require further consideration
at this stage, but, before taking a definitive view on this, we
would welcome the formal Opinion of the Energy and Climate Change
Committee on the significance of the Report, in accordance with
Standing Order No. 143 (11). In the meantime, the document remains
under scrutiny.
35 (33563) 18597/11: see HC 428-xlix (2010-12), chapter
14 (1 February 2012). Back
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