2 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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| Department | Energy and Climate Change
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| Basis of consideration | See para 2.4 below
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| Previous Committee Report | HC 83-i (2013-14), chapter 5 (8 May 2013)
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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 | For debate in European Committee A
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Background
2.1 In our Report of 8 May 2013, we drew to the attention
of the House a Commission Green Paper which said that, whilst
the EU was making good progress in meeting its energy and climate
policies up to 2020, there was now a need to consider a new framework
for policies in this area up to 2030, bearing in mind the long
investment cycles involved. The Green Paper therefore sought to
explore available options, and posed a number of questions (on
which responses had been invited by 2 July 2013), covering such
issues as the use of targets, the coherence of the various policy
instruments, the impact of energy policy on competitiveness, and
the need to take into account the different situations within
Member States.
2.2 We noted that, although the Government was
currently coordinating the UK's response to the Commission's consultation,
and saw the ultimate goal as being to secure the EU-wide emissions
reduction objective for 2050 cost effectively, it had not yet
formed a position on the 2030 framework (though it considered
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). We also noted that the Government had highlighted
the UK's approach to a long-term climate and energy framework
by setting five-yearly carbon budgets to 2027, and that it supported
the Commission's 2050 Roadmap, which identified the cost-effective
pathway for the EU to cut 1990 emission levels by 80-95% in 2050.
2.3 We commented that the document addressed
a subject of some topical interest, and highlighted a number of
policy areas where further action might be needed in the not too
distant future, but we said that, before taking a definitive view
on whether it raised issues requiring further consideration at
this stage, we would welcome the 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
remained under scrutiny.
Opinion of the Energy and Climate Change Committee
2.4 We have now received the following reply
from the Energy and Climate Change Committee, dated 20 June:
"Following discussions during a recent Committee
meeting, we have agreed the following note:
1. We welcome the Commission's Green Paper on
climate and energy policies beyond 2020. As the paper points out,
long cycles in infrastructure investment mean that regulatory
certainty is urgently needed to mobilise the necessary funds to
2030 and beyond. In addition, clear and agreed objectives will
be important in order for the EU to push actively for an international
climate change agreement in 2015, and to structure the pathway
to the ambitious 2050 target.[2]
2. We agree that lessons must be learned from
the 2020 framework and that future policy must be adapted to changing
economic and energy market conditions. In particular, we welcome
the emphasis the paper places on affordability of energy and competitiveness
impacts — a key concern in the current economic climate.
3. The paper poses questions on fundamental issues
for the 2030 framework relating to the role of EU-level targets,
coherence with Member States' policy and impacts on competitiveness.
It is clear that extensive debate will be required on many issues
before consensus can be gained to move forward with the 2030 proposals."
The Government's position
"DECC is currently coordinating the UK response
to the Green Paper consultation, which will give a clearer indication
of the Government's position on the 2030 framework. In the meantime,
we note the following points:
- We agree with the Government that DECC's five-yearly
carbon budgets to 2027 provide a clear framework for medium-term
climate and energy policy, although we note that the inclusion
of aviation and shipping emissions in these budgets remains unresolved.
- We support the Government and the Commission
in endorsing the proposed target of a 40% emissions cut by 2030.
The Secretary of State has recently announced his support for
an even more ambitious target of 50% — this should be welcomed
if it can be achieved in a cost-effective way which does not jeopardise
EU competitiveness.[3]
- We agree that any EU 2030 framework must support
the UK's plans for electricity market reform through the provisions
of the Energy Bill.
- The Secretary of State's Written Ministerial
Statement states that an EU-wide renewable energy target should
not be imposed because Member States need the flexibility to choose
the energy mix which best suits their needs and capacity.[4]
We suggest that further debate is needed before deciding on the
nature and level of EU targets. All targets must be achievable,
however whether they should be aspirational or legally binding
is as yet unclear.
- We agree with the Government that "urgent
structural reform"[5]
of the EU ETS is necessary if the carbon price is to act as a
major driver in low-carbon investment. It is disappointing that
proposals for back-loading were rejected by the European Parliament.
The Green Paper highlights the risk of policy fragmentation as
Member States resort to national measures such as the Carbon Price
Floor in the UK. We agree that this is not a desirable development
and that the EU ETS is the most constructive mechanism for driving
down emissions in Europe.
- The Green Paper sets out product-related policies
such as the Ecodesign and Energy Labelling Directives which have
led to energy savings in domestic and household appliances. We
support the energy efficiency measures directed at building stock
through the Energy Performance of Buildings Directive (EPBD)and
recognise the urgency of improving inefficient housing stock in
the UK. There is certainly merit in considering the development
of further EU-wide energy efficiency standards."
"A 2030 framework is clearly needed to drive
investment in low-carbon infrastructure and pave the way to the
2050 target, however the economic crisis and difficulties encountered
under the EU ETS make this a highly challenging objective. We
look forward to receiving the Government's official response to
this Green Paper consultation which will need to balance EU and
national approaches to long-term energy and climate policies."
Conclusion
2.5 We are grateful to the Energy and Climate
Change Committee for this helpful Opinion, in the light of which
we have considered carefully how this document should be handled.
As the Opinion suggests, an extensive debate on the 2030 climate
and energy framework will clearly be required at some stage, and,
as ever, it is a matter of judgement whether this should be held
at a time when the House is able to make an input to the general
issues raised, or deferred until the future shape of any EU approach
has become clearer.
2.6 Having initially been inclined to the
latter approach, we are now persuaded that an early debate would
in this instance be helpful, and we are accordingly recommending
the Green Paper for debate in European Committee A. Also, although
we recognise that the timing of this is a matter for the Government,
we do see some merit in it being held after the Government has
given its response to the Green Paper consultation, thereby allowing
this to inform the debate.
2 The Commission's Energy Roadmap 2050 sets a target
to reduce GHG emissions by 80-95% on 1990 levels by 2050. Back
3
http://blog.decc.gov.uk/2013/05/28/europe-must-stay-ambitious-on-climate-change/. Back
4
DECC, Written Ministerial Statement, UK Negotiating Position,
4 June 2013. Back
5
DECC, Written Ministerial Statement, UK Negotiating Position,
4 June 2013. Back
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