epp group position paper: climate & energy policy

Climate and Energy Policy

EPP Group Position Paper

EPP Groupin the European Parl iament

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EPP Group Position PaperClimate and Energy Pol icy

Table of Contents

Challenges � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 3

1. Promoting an ambitious energy and climate policy for 2030 � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 5

2. Our energy policy must go hand in hand with the EU’s industrial competitiveness � � � � � � � � � � � � � � � � � � � � � � � � 9

3. Diversifying EU energy sources and suppliers � � � � � � � � � � � � � � � � � 11

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Challenges

Energy is one of the key elements which drives the European economy. Our goal is to ensure a steady and sustainable supply of energ y at a reasonable cost to our businesses and households. The world as a whole, including the EU, is facing serious challenges regarding greenhouse gas emissions and global warming, a large part of which is related to our continued massive use of fossil fuels. At the same time, the EU is confronted with other serious challenges regarding energy import dependency and security of supply, as well as the relatively high cost of energy which cuts into the competitiveness of our industries in the global economy. The way forward is the Energy Union.

Europe has committed itself to a leading role in the fight against climate change and to drive progress towards establishing a low carbon economy. The EU Institutions have committed themselves to a long-term target of an 80-95% reduction in greenhouse gas until 2050. The EU is expected to provide for ambitious pledges ahead of the United

Nations Paris meeting on fighting climate change in December 2015 and aims at a thorough and ambitious agreement in Paris that contains sound guarantees for an effective limit of temperature levels to 2 degrees maximum.

Substantial progress has been made towards meeting the 2020 objectives for greenhouse gas (GHG) reductions, renewable energies and energ y efficiency. During the first semester of 2015, the European Commission will present a number of legislative and non-legislative initiatives in order to set an ambitious climate and energy framework for 2030 as the EU’s contribution to the conclusion of a global climate agreement ahead of the UNFCCC summit in Paris. For this EU framework, the EPP Group outlines its following priorities.

2030

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1. Promoting an ambitious energy and climate policy for 2030

A binding greenhouse gas reduction target of at least 40% in the EU:

> Enable the ETS to be a cost-effective tool to reduce GHG emissions. We support the introduction of a market stability reserve (MSR) to be operational by 1 January 2019. The 900 million allowances that were backloaded in 2013 should be transferred to the MSR while it has to be ensured that at least 300 million allowances are set aside to support breakthrough technologies in the industry sectors covered by the ETS.

> Additionally, a comprehensive, structural, post-2020 reform of the EU’s ETS should be proposed by the European Commission by mid-2015 at the latest; this reform will have to include tangible and harmonised measures on carbon leakage to safeguard EU industry, at the level of best performers, by ensuring that they will not incur direct and indirect ETS costs and by taking into account changing production levels.

> Member States should be flexible in deciding how to achieve the GHG goal in non-ETS sectors while striving to increase energ y efficiency and renewable energ y sources (RES). Energy efficiency serves the purpose of reducing energy dependency, creating jobs and growth as well as improving industrial competitiveness by lowering overall energy costs.

> We support the introduction of an ambitious EU level energy efficiency target for 2030 of 30% but insist that it should focus on non-ETS sectors because the ETS already triggers energy efficiency measures in those sectors covered by the scheme.

> Energy efficiency policies should be ambitious and rely on promoting the right incentives, particularly in buildings which consume about 40% of the EU´s energy. Regulatory measures should only be used where needed. Member States need flexibility on the measures and methods on how to achieve this

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objective. We support a prolongation of the Energy Efficiency Directive after 2020 along these lines.

> We want to promote the major role and potential of ICT for a more efficient use of energy in households, transport, energy production and transmission as well as in manufacturing; the use of smart meters, effi-cient lighting and devices, cloud computing or distributed software should be encouraged by setting the right incentives, setting standards and disseminating best practices (not by EU level regulatory enforcement).

> A more careful and balanced approach on Eco-design measures which in the past have contributed to a growing public scepticism towards regulation at European level. They should be based on their energ y saving potential and on market relevance and must not interfere with citizens’ behavioural habits; we support clear energy labelling to give consumers a choice.

Endorsing President Juncker’s ambition to make the EU a world leader in renewable energ y technologies and actively promoting an increased use of RES at Member State level even beyond the EU objectives, as RES are among the most effective ways to reduce dependency on fossil fuels, to address our import dependence and contribute to a low carbon economy while taking into account that RES can contribute to the creation of jobs and new business opportunities.

> Creating RES support schemes according to EU (not national) criteria and maximising the intra-EU trade in renewable electricity, to allow the use of these resources across the EU where they are most effective, and with a view to achieving a harmonised EU support system in the long run. Subsidies for mature RES technologies should be gradually phased out.

> RES technologies in particular must be installed where they are effective. An EU level binding target of 27% with effective governance ensuring that all Member States contribute an ambitious share is necessary.

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> Driving the development of innovative storage technologies which will make the large and cross-border development of renewable energies where most efficient even more credible.

Promoting eMobility, including by encouraging research and standardisation of respective technologies and continuing a biofuel policy beyond 2020 in order to ensure a long-term perspective for investments and in order to support innovations in sustainable biofuels.

All the elements of the 2030 package must be decided in co-decision between Parliament and Council. A weakening of European democracy through new governance structures is not acceptable. For the European Parliament, the EPP Group insists that for all climate and energy legislation, inter-institutional negotiations should only be mandated by a plenary vote.

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Endorsing the industrial competitiveness goal to meet a 20% share of the EU’s GDP for the manufacturing industry by 2020; this goal has to go hand in hand with our climate and energy objectives and should be further strengthened in a 2030 perspective.

If, under the Paris Agreement, other major com-petitors of the EU energy-intensive industries do not make similar commitments, carbon leakage provisions have to be maintained in the long-term and be strengthened when necessary.

ETS revenues should be earmarked - at least partly - to support innovation, energy efficiency and other CO2 reduction measures (i.e. in energy-intensive industry sectors).

2. Our energy policy must go

hand in hand with the EU’s industrial competitiveness


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Enhanced diversification of supply, in particular of gas, is an absolute priority. In order to ensure diversification, infrastructure development - such as the development of interconnectors, reserve flows, LNG terminals - and the better use of existing infrastructure must be supported.

While the choice of energy sources remains a national competence, the Treaty obliges EU Member States to promote energy efficiency and renewable energy sources.

When Member States decide to use shale gas on their territory, European rules must be strictly imposed to ensure the highest environmental protection, especially when it comes to the cross-border protection of water.

Fossil fuels will continue to play a significant role in the EU’s energy supply for a foreseeable period of time.

The EU should encourage the upgrading of existing low carbon technologies including clean coal and drive the development and market uptake of carbon capture and storage projects.

Nuclear energy will continue to be a part of the energy mix in a number of Member States. The EU should make sure that the highest EU provisions on nuclear safety, including on waste management, are in place.

Intelligent policies must ensure that our ambitious CO2 reduction target does not force Member States to become more dependent on imports.

Diversification is a complement to increased efficiency, moderation of demand and RES usage which will increase our security of supply.

3. Diversifying EU energy sources and suppliers

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Published by: EPP Group in the European Parliament Press and Communications Service Publications Team

Editor: Pedro López de Pablo

Responsible: Greet Gysen

Coordinator: Mark Dunne

Address: European Parliament, 60 Rue Wiertz, B-1047 - Brussels

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epp group position paper: climate & energy policy

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