Discussing EC Climate and Energy priories for sustainable …17)_EinT207_MORAITOU.pdf · 2016. 12. 6. · (2010) 614 ﬁnal). • Speciﬁcally focusing the Transport sector, recent

EinT2016–1stInterna0onalConference“ENERGYinTRANSPORTATION2016”

DiscussingECClimateandEnergypriori5esforsustainabletransport;Ins5tu5onalstateoftheartand

futuretrends.

Dr.IouliaMoraitou,[email protected]

PanteionUniversity,DepartmentofEconomicandRegionalDevelopment,Athens,Greece


Thestructureofthepaper1.  Iden0fyingtheneedtoreflectforanew2030&

2050frameworkforclimateandenergypolicies2.   Mee5ngcommonenergyandclimate

challengesthroughamarketdrivenapproach;theroleofthetransportsector

3.  Newgovernancesystem,includingregulatoryandfinancialinstruments,withaviewatensuringthatpolicyobjec0vesaredelivered

4.   Concludingremarksandpolicyrecommenda5ons


1.Theneedforanewframework•  Most obvious is the current impact of theeconomic and financial crisiswhich has affectedMemberStates'capacitytoinvest.

•  The EU integrates various energy and climatepolicy objec0ves, such as reducing greenhousegas(GHG)emissions,securingenergysupplyandsuppor0ng growth, compe55veness and jobsthrough a high technology, cost effec5ve andresource efficient approachwhile, at the same0me, reflec5ng for a new 2030 & 2050frameworkforclimateandenergypolicies.


1.Theneedforanewframework•  Against this background the EU focuses efforts toambi5ously commit in undertaking furthergreenhouse gas emission reduc5ons in linewith thecost-effec5ve pathway described in the 2050roadmaps, primarily by assis0ng MS at mee0ngcommon energy and climate challenges, more cost-effec0vely, while furthering market integra0on andpreven0ngmarketdistor0on.

•  The transport sectorcouldplayan important rolebyachieving reduc5onof thegreenhouse gas emissionsand the desired market driven approach, mainlythroughamodernandcoherentinfrastructuredesignandsmarterpricingofinfrastructureusage.


1.Theneedforanewframework•  ECliteratureunderlinesthatChina,India,Brazil,theUSA,theEUand

more than 100 countries (represen0ng more than 80% of globalemissions)committhemselvescollec0velytospecificclimatepolicies.However, from a general point of view, climate ac5on has beenfragmentedandcustomisedtospecificeconomiccondi5ons.

•  Inthecontextoffiscalconsolida0on,andfromanECpointofviewitis

noted that compe55veness strategies cannot be built on majorspending programmes, but are more likely to address structuralreforms in areas such as improving the business environment,modernisingpublicadministra5ons, improvingcompanies’ability toinnovate or enhancing energy efficiency while at the same 0me,policy measures may be needed to accompany ongoing structuralchangewithinandacrossindustries.(COM(2010)614final)


1.Theneedforanewframework•  Furthermore, the EU approach priori5zes an integra5on of various energy and

climate policy objec5ves, such as: reducing greenhouse gas (GHG) emissions,securingenergysupplyandsuppor0nggrowth,compe00venessandjobsthrougha high technology, cost effec5ve and resource efficient perspec5ve while,iden0fying at the same 0me, the need to reflect for a new 2030 & 2050frameworkforclimateandenergypolicies(COM(2013),169final).

•  Against this background, the2030policy frameworkwould further enhance full

implementa0on of the 20/20/20 targets and: the 2050 roadmap steps (e.g.increased share of renewables, innova5on poten5al, reduced energy importdependence,minimizingundesirable impacts ofrenewablessupportschemesonenergy markets energy prices and public budgets), the simplifica5on of theEuropean policy framework, the improvement of complementarity andcoherencetargets,intermsofbe>ercalibra5ngpolicyobjec5vesandinstrumentsperformance, the regional coopera5on aiming atmee5ng common energy andclimate challenges while furthering themarket integra5on and enhancing thedevelopmentofrenewables.


1.Theneedforanewframework•  Moreover, the new 2030 framework must take into account the current

interna5onal situa5on and expected developments. More par0cularly focusingthe energy landscape it is accepted that the lacer is undergoing far-reachingchanges. Given also that in the period un5l 2030 energy demandwill increaseglobally,inpar5cularinAsia,withexpectedstrongriseinhydrocarbonsimportsincountriessuchasChinaandIndiathatmeansfulfillingexpecta0onsrelatedtothedevelopment of new resources (made possible by technological advances -deepoffshore, enhanced recovery techniques, unconven0onal resources-) and therelatedgeographical diversifica5onofproduc5onand trade routes (notably forLiquefiedNaturalGas).

•  Thus, fromanECpointofview,globaliza5onofenergyflowsandthe increasedvarietyofinterna5onalactorsiscrea5ngmomentumtodevelopanewapproachtorule-basedenergygovernanceworldwide(COM(2014)15final).

•  Inaddi0on,theCleanDevelopmentMechanism(CDM),allowsacountrywithanemission-reduc0onoremission-limita0oncommitmentunder theKyotoProtocol(Annex B Party) to implement an emission-reduc0on project in developingcountries. The mechanism s5mulates sustainable development and emissionreduc5ons,whilegivingindustrializedcountriessomeflexibilityinhowtheymeettheiremissionreduc5onorlimita5ontargets.


2.commonenergy&ccchallenges•  Atthispoint, it is important tostress thattheoverallcompe55venessofEuropeanindustryhighlydependsonthequalityandefficiencyoftheenergy,transportandcommunica5oninfrastructureservices.

•  Transport networks need to be improved toovercome bo\lenecks and improve cross-borderconnexions. Addi0onally, energy networks must beupgradedandmodernizedtoincorporatesmartgrids,facilitatetheintegra5onofrenewables,ensureafullyfunc5onal internal energy market and improvesecurityofsupply.FurthereffortsneedtobemadetoupgradeinfrastructureinthenewMemberStatesandlessdevelopedregions.


2.commonenergy&ccchallenges•  FromanECpointofview,theseimprovementswouldberequiring

massive investments and the development of more innova5vefinancing solu5ons such as project bonds, private-publicpartnerships and smart finance could be of added value (COM(2010)614final).

•  SpecificallyfocusingtheTransportsector,recentEEAreport(2016)depicts thattheEU's transportsectordependsonoil for94%ofitsfuel(4),90%ofwhichisimportedthus,makingitpar5cularlyvulnerabletoinstabilityandchangesintheglobalenergymarketwhile adisrup0on in theenergy supply could severelyunderminetheeconomyandhamperthequalityoflifeintheEU.

•  To avoid these nega0ve impacts, the EU aims to reduce its oilconsump5onintransport(includingmari5mebunkers)by70%,by2050,comparedto2008levels.


2.commonenergy&ccchallenges•  Against this background, the EU intends to make an

ambi5ous commitment in undertaking furthergreenhousegasemissionreduc5ons,inlinewiththecost-effec5ve pathway described in the 2050 roadmaps,primarilybyassis5ngMSatmee5ngcommonenergyandclimatechallenges,morecost-effec5vely,whilefurtheringmarketintegra5onandpreven5ngmarketdistor5on.

•  Thetransportsectoragain,couldplayanimportantroleinterms of achieving reduc0on of the greenhouse gasemissionsandthedesiredmarketdrivenapproach,mainlythroughamodernandcoherentinfrastructuredesignandsmarter pricing of infrastructure usage (COM (2014) 15final;COM(2011)885,;COM(2011)112A).


2.commonenergy&ccchallenges•  TheTransportWhitePaper(COM(2011)144)establishedagoalto

reducethegreenhousegasemissionsfromthetransportsectorby60% by 2050 compared to 1990 and by around 20% by 2030compared to emissions in 2008. Further reduc5on of emissionsfromtransportwillrequireagradualtransforma5onoftheen5retransport system towards a be\er integra5on between modes,greater exploita5on of the non-road alterna5ves, improvedmanagement of traffic flows through intelligent transportsystems, and extensive innova5on in and deployment of newpropulsionandnaviga5ontechnologiesandalterna5vefuels.

•  This will need to be supported by a modern and coherentinfrastructuredesignandsmarterpricingof infrastructureusage.MemberStatesshouldalsoconsiderhowfuelandvehicletaxa5oncan be used to support greenhouse gas reduc5ons in thetransport sector in line with the Commission's proposal on thetaxa5onofenergyproducts(COM(2011)169).


2.commonenergy&ccchallenges•  Transport con0nues to heavily rely on fossil fuels,

especiallypetrolanddiesel.But,inprincipletheenergyforpropellingvehiclescanbederived fromdifferentsourcesas well e.g. biofuels (biodiesel and bioethanol);alterna5ve fossil fuels (liquidified petroleumgas LPG andcompressed natural gas CNG); hydrogen and electricity.(DelkReport,2006)

•  The impacts of transport on human health, theenvironmentandclimatechangeareclosely linkedtothechoiceoffuel.Cleanalterna0vefuels, includingelectricity,are already available and can cons0tute viable op0ons topetrol anddiesel.Trip lengthplays a role in determiningthe suitability of the fuel type (for example, electricitymightbemoresuitedtopassengercarsinurbanselngsorthosetravellingshorterdistances).


2.commonenergy&ccchallenges•  Theuptakeofcleanerfuelsalsodependsontheextentof

the infrastructure and incen5ves offered to prospec5veowners(lowertaxa5on,freetolls,etc.).

•  EU legisla0on requires thateachEUMember Statemeets10%of its transport energy consump0on from renewableenergy sources by 2020, while iden0fies certainsustainabilitycriteria(onlythosebiofuelsthatcomplywiththesecriteriaareconsidered'sustainable'accordingtothislegisla0on).

•  Moreover, the end product (electricity, biofuels, etc.) isnot the only factor determining how environmentallysustainable a fuel is and that the way the actual fuel isproducedshouldalsobetakenintoaccount.


2.commonenergy&ccchallenges•  From an EU perspec0ve, establishing new targets for

renewableenergyorthegreenhousegasintensityoffuelsusedinthetransportsectororanyothersub-sectorader2020isnotsoappropriate;andtheassessmentofhowtominimize indirect land-use change emissionsmade clearthat first genera5on biofuels have a limited role indecarbonizingthetransportsector.

•  Also, European Commission previously indicated, forexample, that food-based biofuels should not receivepublic support aker 2020(EEA Signal 2016; COM (2012)595),whileacertainrangeofalterna5verenewablefuelsand a mix of targeted policy measures building on theTransport White Paper are needed to address thechallenges of the transport sector, in a 2030 perspec0veandbeyond.


2.commonenergy&ccchallenges•  The focus ofpolicydevelopmentshouldbeon improving

the efficiency of the transport system, furtherdevelopmentanddeploymentofelectricvehicles,secondand third genera5on biofuels and other alterna5ve,sustainablefuelsaspartofamoreholis0cand integratedapproach.This alsogoes in linewith thealterna5ve fuelsstrategy(COM(2013)17final)andshouldbefurthertakeninto account in future reviews and revisions of therelevantlegisla5on,fortheperiodader2020.

•  AccordingagaintotheEEAreport(2016),thedevelopmentof the alterna5ve-fuelsmarket, including investments intheir infrastructure, is also expected to boost theeconomyandcreatenewjobs.


2.commonenergy&ccchallenges•  European Climate Founda0on, notes that greening cars could

create 700 000 extra jobs in the EU by 2025. Moreover, thealterna5ve fuelsmarket could also significantly reduce the EU'sdependence on oil and thus the economic risks linked tofluctua5onsinsupply.Renewingexis0ngfleetswithmoreefficientmodelswilltake0me.

•  It is easily acknowledged that decarbonizing Europe's transportsector will take 5me. It requires a combina0on of measures,including becer urban planning, technological improvements, awider use of alterna0ve fuels, stronger price signals, innova0veresearch, con0nuous follow up of latest developments andadop0on of culng edge technology and stricter enforcement ofexis0ngrules.

•  TurningEurope'scarbon-dependent transport sector intoa cleanandsmartmobilitysystemmightseemutopiantarget,butcouldbefeasible,ifwellplannedandimplemented.


3.Newgovernancesystem•  The Commission considers that there is a need to simplify and

streamline the current separate processes for repor5ng onrenewable energy, energy efficiency and greenhouse gasreduc5on for the period aker 2020, and to have a consolidatedgovernance process with Member States. While Member Statesneed flexibility to choose policies that are best-matched to theirna0onal energy mix and preferences, this flexibility must becompa0blewithfurthermarketintegra0on,increasedcompe00onandtheacainmentofUnion-levelclimateandenergyobjec0ves.

•  Mee5ngtherelevanttargetswouldbeachievedbyamixofUnionmeasures and na5onal measures described in Member States'na5onal plans for compe55ve, secure and sustainable energywhich would: ensure that EU policy objec0ves for climate andenergyaredelivered;providegreatercoherenceofMemberStates'approaches;promote furthermarket integra0onandcompe00on;providecertaintytoinvestorsfortheperiodaker2020.


3.Newgovernancesystem•  In thisprocess, it ispossiblealso: toproposeaCleanand

Energy-efficient Vehicles plaform, bringing togetherMemberStates, industry,andotherstakeholdersensuringinfrastructure investments, including pilot projects, andlaunching research ini0a0ves on key technologies andmaterials (2012); to launch a Strategic TransportTechnology Plan (2011) including a strategic ini0a0ve onClean Transport Systems and an e-mobility package andundertakeafeasibilitystudyondemonstra0onprojectsonrailenergystorageandthehybridiza0onofdieseltrac0on.(COM(2010)614final)

•  Theenhancedgovernancestructuremayneedtobesetinlegisla5on at a later date if the envisaged coopera5veapproachisnoteffec5ve.


3.Newgovernancesystem•  Moreover, detailed guidance would be developed by the

Commission on the opera5on of the new governanceprocess and the content of na5onal plans in par0cularincluding prepara0on of Member State plans through aninterac0ve process; together with an assessment of theMember States' plans and commitments; and theiden5fica5onofIndicatorsandobjec5vesforcompe55ve,secureandsustainableenergy.

•  TheCommissionalsoinvitestheCouncilandtheEuropeanParliament to endorse the Commission's approach tofuture climate and energy policies and its proposal toestablishasimplifiedbuteffec5vegovernancesystemforthe delivery of climate and energy objec5ves. (COM(2014)15final)


3.Newgovernancesystem•  AccordingtothePosi0onPaperforGreece(2012),coveringtheperiod2014-2020:

the Greek economy has been in recession since 2008. In 2011, real GDPcontractedsubstan5allymorethanin2010,fallingby7.1%.Despiteacon0nuedeconomic growth in Greece up to 2008, dispari0es within and among regionsremain pronounced. There are serious structural challenges that need to beaddressed na5onally and transna5onally to make the Greek economy moresustainable and inclusive. The lack of an efficient public administra0on and amodern,flexibleandcompe00vebusiness-friendlyenvironmentprohibitsgrowthandjobcrea0on.Thecurrenteconomicandfinancialcrisishasbeentransformedtoa jobandsocialcrisis.Greecehasnotyetcompletedandtackledstrategicallykey road, rail, port and airport infrastructure networks, and other support ormul0modalinfrastructureswhichhindereasyaccessforthetransporta0onsystemto goods and people. Connec0ng routes within the country and to neighboringcountries are insufficient. In the field of energy, the country lacks adequateenergy networks to face the challenges of the growth poten5al in electricity(exceptRES)andnaturalgas.Highvoltagegridslacksufficientcapacitytosupportthepenetra0onofRES.Naturalgaspenetra5oninGreeceislargelydependingontheexpansionofthehighpressuregrid”.


3.Newgovernancesystem•  Overthecurrentperiod(fromApril2015ongoing),importantsteps

are undertaken both in terms of infrastructures, strategydevelopment andpublicworks implementa5on;precisely, up toMarch 2017 comple0on of the 5 major projects in terms ofna0onal key road infrastructure, is expected avoidingcompensa0onsof0.8billioneuros for4outof the5highways. Interms of rail infrastructure, major projects restarted aker a longperiod of serious delays; their comple0on is gradually expectedfrom2018upto2022.

•  Athenswill be then be\er and faster linkedwith Patras (within2hours) and Thessaloniki (within 3 hours and 15min, out ofapproximately 6 hours today). Moreover, Thessaloniki would bealsobenefi5ngfromthecomple5onof itsMetrocentral lineandits extensions (east extension, towards Micra Airport and westextensiontowardsThessalonikimainrailwaysta0on).


3.Newgovernancesystem•  Addi0onally,anewairportinHeraklion,Creta(KasteliAirport)isplannedtobeimplementedpar0allyfundedbyanEIBloan(upto220mioeuro);theAthensMetroline 4 (first sec5on “Alsos Veikou-Goudi”); theTramway extension from Piraeus port to KeratsiniandPerama; thesouthsec5onoftheCentralGreeceroadaxisE65 (LamiatoXyniadahighwaysec0on)andthePatra - Pyrgos road axisaremainly the principalmajor projects thoroughly addressing the major(development) target that key–strategic road, rail,port and airport infrastructure networks, and othermul5modalinfrastructurescouldchallenge.


3.Newgovernancesystem•  In termsof undertaking furthernecessary ins5tu5onal steps, the

processofa5mewisetransposi5onintotheGreeklawsystemofDirec5ve 2014/94/EU (of the European Parliament and of theCouncilof22October2014,onthedeploymentofalterna0vefuelsinfrastructures, foreseen to conclude by 18/11/2016), is currentlysmoothly takingplace, targe5ngmainly “a coordinatedapproachwhichisnecessaryinordertomeetthelong-termenergyneedsofall transportmodes. In par0cular, policies should build upon theuseofalterna0vefuels,withafocusonthespecificneedsofeachtransportmode.

•  In order to promote alterna5ve fuels and develop the relevantinfrastructure, the na5onal policy frameworks may consist ofseveral plans, strategies or other planning documenta5ondeveloped separately or in an integratedmanner, or in anotherform,andattheadministra0veleveldecideduponbytheMemberStates.


3.Newgovernancesystem•  Finally, a poten5al amendment of the EnergyEfficiency Direc5ve which takes a more holis0capproach to energy savings in the EU could enableconcertedini5a5vesandinstruments(bothregulatoryand ins0tu0onal) specifically tailoredformee5ngtheneedsofGreece;

•  Lastly,tosubstan5allyreviseDirec5veonRenewableEnergySources,soastoensurethatthe2030EUleveltarget can bemet could further facilitate to rapidlydeploy renewable energy market (mainly through amarketdrivenapproachandfocusingamongthemainsectorsconcerned:thetransportsector),linkingbe\ertheinvestmentcycleswiththeinfrastructure.


4.Conclusions&recommenda0ons•  Acknowledging that infrastructure shapesmobility, no major change in transport canhappen without the support of an adequatenetwork and more intelligence/technologicalinnova0oninusingit;

•  While, transport infrastructure investmentshaveaposi5veimpactoneconomicgrowth,canmobilize wealth and jobs by enhancing trade,succeeding geographical accessibility, andupgradingeasier–fasterpeoplemobility,


4.Conclusions&recommenda0ons•  various Member States are very diverse in terms of

compara0ve wealth, industrial structure, energy mix,building stocks, carbon and energy intensity, exploitablerenewableresources,andsocialstructure;Whileindividualconsumer groups have different capaci0es to invest andadapt, there lies the clear manifesta5on of a diversitywhich necessary to be taken into account whendevelopingapolicyframework.ClimateandenergytargetshaveverydifferentimpactsineachMemberStateandtheirrespec0ve ci0zens; various op5ons to enable effec5vecoopera5on and an equitable sharing of the requiredefforts will need to be assessed as part of the newframework.


4.Conclusions&recommenda0ons•  Access to finance for investments, be it through direct

fundingorsmartfinance,isalreadypartofthetoolboxofEU policies; e.g. the proposed European RegionalDevelopment Fund for 2014-2020 and the Connec0ngEuropeFacility.(COM(2013)169final).

•  Furthermore, Transport sectors which are dealing withheavyinterna5onalcompe55on,suchasavia0on,shippingandfreighttransportbyroad,canbestbeincorporatedinthe EU Emission Trading System ETS. In these sectors alimited number of rela0vely large companies is ac0ve, sothataneffec0vetradingsystemcaneasilybesetupunderthecondi0onthatafeasibleCO2monitoringsystemcanbedesigned and implemented (see e.g. (CE, 2006a) for thecaseofavia5on).


4.Conclusions&recommenda0ons•  Several concrete steps could be envisaged includingamong others concerted ac5ons managing energytransi5ons;specificmeasuressuchasRegula0on,CO2labelling and government campaignspromo0ng eco-driving; Emission trading and CO2 differen0atedtaxa0on as several other examples of genericinstruments;

•  Specialcareshouldbetakeninthefollowingissuesaswell: alterna5ve trading system, fiscal and pricingmeasures, consumer informa5on (e.g. labelling),increasedfuelexcisedu0es(thatwouldmostprobablyinfluence consumers to buy more efficient vehicles)andharmoniza5onofexis5ngtaxregimes.


4.Conclusions&recommenda0ons

Alltheseop0ons(technicalorpolicymeasures)

couldfitwithinthesame(sub)sectororbecometheop0onsfordifferenteconomicsectors(e.g.Industry).

(DelkReport,2006)


Dr.IouliaMoraitou,Speaker

[email protected]

Thankyouverymuchforyouacen0on

Documents

Discussing EC Climate and Energy priories for sustainable …17)_EinT207_MORAITOU.pdf · 2016. 12. 6. · (2010) 614 ﬁnal). • Speciﬁcally focusing the Transport sector, recent