Hi folks, let´s change our angle/perspective for a moment and have a look what´s currently going on at the European political level.
In October 2014 the European Council adopted the 2030 Energy and Climate Policy Framework setting three new headline targets:
- 40% reduction of GHG emissions relative to 1990
- 27% contribution to the final energy consumption from renewable energy
- 27% improvement of energy efficiency with respect to business-as-usual by 2030
In addition to the targets, three funds were established or enhanced: the first, an increase of the New Entrants Reserve NER-300 fund for renewables to NER-400 with the addition of funding for CCS (Carbon Capture and Storage) projects; the second, funded by 2% of the allowances for needs in low-income Member States (GDP less than 60% of the EU average) and the third, funded by 10% of the allowances for needs of Member States whose GDP is less than 90% of the EU average.
The 40% reduction of GHG is to come from the ETS (European Emissions Trading System) and the non-ETS sectors. Flexibility is allowed in the ETS sector, e.g. for inclusion of transport, and also in trading shares between Member States and even swapping parts of targets between ETS and non-ETS sectors.
The second target is to be reached by contributions from all Member States. In order to reach the aim of 27% contribution from renewables to the final energy consumption, the Member States can formulate their own policies, but in full compliance with the State Aid Guidelines and the EU target model of a fully liberalized and connected internal energy market.
However there remain uncertainties within this new package. Especially, the fact that the target regarding the increase of energy efficiency is just indicative leads to investment uncertainty as the indicative sectoral targets set by the EC will not be translated into nationally binding targets. Yet energy conservation, including in the housing sector, has a high potential for emission reduction and economic savings.
In summary, the 2030 Package represents an evolutionary extension of the general direction set by the 20-20-20 Package, with a main focus on GHG emissions reduction.
To read all details of the 2030 Package download the EC Staff Working Document under the following link: