EU aims to cut emissions 40% by 2030, targets 27% of renewables

Jonathan Lopez

22-Jan-2014

European Commission headquarters, BrusselsLONDON (ICIS)–The European Commission, according to its 2030 framework for climate and energy policies, released on Wednesday, wants a 40% reduction in gas emissions below 1990 levels by 2030 and at least 27% of all energy to come from renewables by the same year.

The 40% reduction in gas emissions by 2030 could be met through domestic measures alone, the Commission said.

It announced the annual reduction in the ‘cap’ on certain greenhouse gases from the EU Emissions Trading System (EU ETS) sectors would be increased from the current 1.74% to 2.2% after 2020.

The EU ETS works on the ‘cap and trade’ principle, in which a limit is set on the total amount of certain greenhouse gases that can be emitted by the factories, power plants and other installations in the system.

Within the cap, companies receive or buy emission allowances which they can trade with one another as needed. They can also buy limited amounts of international credits from emission-saving projects around the world.

The Commission also proposed a reform of the EU ETS itself, which covers over 11,000 power stations and industrial plants in 31 countries, with the aim of establishing a market stability reserve at the beginning of the next ETS trading period in 2021.

This market stability reserve would operate entirely according to pre-defined rules which would leave no discretion to the Commission or member states in its implementation.

In the 2030 framework for climate and energy policies, the Commission also said energy prices had risen in almost every country since 2008.

“[That fact] could undermine Europe’s competitiveness, particularly for energy intensive industries. Nevertheless, rising energy prices can be partly offset by cost effective energy and climate policies, competitive energy markets and improved energy efficiency measures such as using more energy-efficient products,” said the Commission.

“An EU-level target for renewable energy is necessary to drive continued investment in the sector. However, it would not be translated into national targets through EU legislation, thus leaving flexibility for member states to transform the energy system in a way that is adapted to national preferences and circumstances,” it added.

The Commission called on the European Council and the European Parliament to agree by the end of 2014 as part of the international negotiation on a new global climate agreement to be concluded in Paris at the end of 2015.

Meanwhile, the Commission’s president, Jose Manuel Barroso, said in a press conference on Wednesday that shale gas is changing the landscape of energy “in a dramatic way and it will have important consequences.”

Following the debate taking place in Europe about shale gas, Barroso said the Commission has proposed a communication and recommendation which will let member states to decide whether or not to explore that type of energy.

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