The EU Policy towards a low carbon economy

Fabrizio Barbaso, Deputy Director General for Energy, DG TREN, European Commission

EUROPEANCOMMISSION

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EU energy mix: business as usual is not sustainable

20020055

Solid fuels17,7%

Natural gas

24,6%

Nuclear14,2%

Renewables

6,7%

Others0,2%

Crude oil and

petroleum products36,7%

0%

20%

40%

60%

80%

100%

total oil natural gas solids

2000 2010 2020 2030

Import dependency

0

250

500

750

1000

1250

1500

1750

2000

1990 2000 2010 2020 2030

0

25

50

75

100

Energy demand and carbon intensity

~ 80% fossil fuel

SOURCE: Eurostat.

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5.5%

Additional effort based on GDP per capita

RES share in 2005

Flat rate increase of 5.5%

8.5% 6% 20%

2005

2020

Done To be done

EU-27 efforts in RenewablesPolicy targets

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31%

13%

16%

13%

30%

18%

25%

16%

18%

20%

23%

17%

13%

42%

23%

11%

13%

10%

14%

34%

15%

25%

14%

38%

49%

15%

24%

EU-27

RES share in 2020

EU-27 efforts in Renewables RES share in 2020

BEBGCZDKDEEEIEELESFRITCYLVLTLUHUMTNLATPLPTROSISKFISEUK

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Responding to the triple challenge

FULLY FULLY

BALANCED BALANCED

INTEGRATEDINTEGRATED

AND AND

MUTUALLY REINFORCEDMUTUALLY REINFORCEDSustainable

Development

• Close link to greenhouse gas emission target – savings of 600 to 900 mln tonnes of CO2

Competitiveness • With falling renewable energy prices, renewables are increasingly an economically sound alternative

Security of supply

• Renewable energy mostly generated within the EU

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Article 5 creates opportunities for trade of RES-E from third countries to be counted against the national targets

Conditions are:

.Electricity should be consumed in the Community.Electricity from installation operational after entry into force of the Directive.The electricity is issued with a guarantee of origin part of a system of guarantees of origin equivalent to that laid down in the Directive

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.GHG savings – minimum of 35%

.No raw material from undisturbed forests, biodiverse grassland, nature protection areas

.No conversion of wetlands and continuously forested areas for biofuel production (to protect carbon stocks)

.All EU biofuels must meet “cross compliance” environmental rules

Promotion of biofuels - Sustainability criteria for biofuels

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Role of technology

. Renewables sector has growing importance worldwide – already turnover of €30 billion in the EU, providing approximately 350,000 jobs

. But renewable energies are at different stages of technological and commercial development

. Increased demand will improve economies of scale and lower costs

. Continued international cooperation in research is necessary

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Thank you for your attention!

For more information:

http://ec.europa.eu/energy/index_en.html