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Climate and energy priorities
for Europe: the way forward
Presentation of J.M. Barroso
President of the European Commission,
to the European Council of 20-21 March 2014
1Presentation of J.M. Barroso to the European Council, 20-21 March 2014
Europe's priorities
Our goals
Need for cost-effective
and joint solutions
Predictability
for policy-makers
and investors
Speaking with
one voice
Why now?
Competitiveness
Security of
supply
Sustainability
2Presentation of J.M. Barroso to the European Council, 20-21 March 2014
Europe is on its way to meeting its 2020 targets
Source: European Commission
Reduce greenhouse
gas levels by 20%
Increase share of
renewables to 20%
Reduce energy
consumption by 20%
Estimate
in 2020:
-24%
Estimate
in 2020:
21%
Estimate
in 2020:
-17%
3Presentation of J.M. Barroso to the European Council, 20-21 March 2014
AT
BE
BG
HR
CY
CZ
DK
EE
FI
FRDE
EL
HU
IE
IT
LV
LT
LU
MT
NL
PL
PT
RO
SK
SI
ES
SE
UK
EU
-
1
2
3
4
5
6
7
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
Progress is visible at national level
Carbon intensity, by country
(greenhouse gas emissions / real GDP)
Reduction in carbon intensity between 2000 and 2011 (%)
Carbonintensityin2011
(indexEU=1)
Source: European Commission
US
JP
0
6
4
3
2
1
0
00
0
4Presentation of J.M. Barroso to the European Council, 20-21 March 2014
Climate policies are not the main driver
of price increases
EU electricity prices, broken down,
compared to support for renewables
* excludes VAT and other recoverable taxes in the case of industry
0
5
10
15
20
2008 2012
0
5
10
15
2008 2012
Eurocents
/ kWh
Energy supply Network costs Taxes and levies*
Households Industry
16.6
19.6
10.6
12.4
2008 2012
Support for renewables
(% of total - estimate)
Eurocents
/ kWh
3%
2008 2012
7% 4% 9%
Source: European Commission
+36%
+127%
+18%
+30%
+8%
-3%
5Presentation of J.M. Barroso to the European Council, 20-21 March 2014
Energy
efficiency:
review in 2014
A renewed ambition for 2030
40%
greenhouse
gas reduction
20%
greenhouse
gas reduction
20%
renewable
energy
20%
energy savings
≥27%
renewable
energy
2020
2030
Dedicated
governance
National plans
Common indicators
Monitoring
6Presentation of J.M. Barroso to the European Council, 20-21 March 2014
40
60
80
100
120
140
160
180
200
1990 2000 2010 2020 2030
Growing while saving
Decoupling GDP from greenhouse
gas emissions (GHG), 1990-2030
GDP GHG
1990=100
Reducing the EU fuel import bill
with our 2030 proposal
(import expenditure, in € billion)
0
100
200
300
400
500
600
700
2010 2015 2020 2025 2030 2035 2040 2045 2050
current policies
2030 proposal
Source: European Commission
7Presentation of J.M. Barroso to the European Council, 20-21 March 2014
Energy costs to rise in all scenarios until 2030,
but clear benefits from decarbonisation
Energy costs, broken down by components
(annual average in % of GDP)
Investment in
infrastructure
Investment in
energy efficiency
Fuel imports Other energy purchases
(domestic)
0%
4%
8%
12%
16%
-1.2
imports
2010
Business-
as-usual
With 2030
proposal
With 2030
proposal
2030 2050
+2.5
investment
12.8
14.3 14.1
Source: European Commission
-1.2
imports
8Presentation of J.M. Barroso to the European Council, 20-21 March 2014
This is about investing in our future: 45% of our
power generation capacity is more than 30 years old
0 MW
50.000 MW
100.000 MW
150.000 MW
200.000 MW
250.000 MW
300.000 MW
<10 11-20 20-30 30-40 40-50 >50
Years
Age of power generating capacities
in the EU in 2013 (in years)
Coal Oil Gas Nuclear Renewables
(including hydro)
Source: Platts Power Vision
300.000 MW
250.000 MW
200.000 MW
150.000 MW
100.000 MW
50.000 MW
0 MW
9Presentation of J.M. Barroso to the European Council, 20-21 March 2014
A cost-effective reduction in emissions
Emissions
trading system*
Non-ETS
sector*
-21%
-43%
-10%
-30%
-20%
-40%
EU GHG target
(1990 base)
HOW?  'Cap and trade'
 Market stability reserve
 Protection against
carbon leakage
 Effort-sharing through
binding national targets
 Support measures
(e.g. standards)
2020
2030
* Compared to 2005
10Presentation of J.M. Barroso to the European Council, 20-21 March 2014
0%
20%
40%
60%
80%
100%
1990 2000 2010 2020 2030
All sectors should contribute
Share of greenhouse gas emissions,
per sector and gas
CO2 power sector CO2 heating buildings CO2 industry CO2 transport Other greenhouse gases
current policies
Source: European Commission
11Presentation of J.M. Barroso to the European Council, 20-21 March 2014
0
100
200
300
400
500
600
700
2011-2015 2016-2020 2021-2025 2026-2030
Estimated savings from current
commitments on energy efficiency
Energy efficiency is key
Necessary investment Resulting savings
Source: European Commission
€billion
21
Net savings/year (in € bn)
178
311
363
12Presentation of J.M. Barroso to the European Council, 20-21 March 2014
Connecting and diversifying
Reaping the benefits of a fully integrated
energy market up to 2030
Internal market:
€ 43 - 70 bn per
year in gas and
electricity
Potential for
renewable energy
Future potential
for gas sources
Potential for
shale gas
Hydroelectric
Wind
offshore
Wind
onshore
15 years of the EU
current gas consumption
250 years of the EU
current gas consumption
5 years of the EU
current gas consumption
Solar
13Presentation of J.M. Barroso to the European Council, 20-21 March 2014
Next steps
 Today: orientations
 Later in 2014: energy efficiency review
 Sept. 2014: UN Secretary General leaders' summit
 Agreement on 2030 framework at EU level
 Dec. 2015 (Paris): global climate talks
Climate Energy Priorities in Europe

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Climate Energy Priorities in Europe

  • 1. Climate and energy priorities for Europe: the way forward Presentation of J.M. Barroso President of the European Commission, to the European Council of 20-21 March 2014
  • 2. 1Presentation of J.M. Barroso to the European Council, 20-21 March 2014 Europe's priorities Our goals Need for cost-effective and joint solutions Predictability for policy-makers and investors Speaking with one voice Why now? Competitiveness Security of supply Sustainability
  • 3. 2Presentation of J.M. Barroso to the European Council, 20-21 March 2014 Europe is on its way to meeting its 2020 targets Source: European Commission Reduce greenhouse gas levels by 20% Increase share of renewables to 20% Reduce energy consumption by 20% Estimate in 2020: -24% Estimate in 2020: 21% Estimate in 2020: -17%
  • 4. 3Presentation of J.M. Barroso to the European Council, 20-21 March 2014 AT BE BG HR CY CZ DK EE FI FRDE EL HU IE IT LV LT LU MT NL PL PT RO SK SI ES SE UK EU - 1 2 3 4 5 6 7 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Progress is visible at national level Carbon intensity, by country (greenhouse gas emissions / real GDP) Reduction in carbon intensity between 2000 and 2011 (%) Carbonintensityin2011 (indexEU=1) Source: European Commission US JP 0 6 4 3 2 1 0 00 0
  • 5. 4Presentation of J.M. Barroso to the European Council, 20-21 March 2014 Climate policies are not the main driver of price increases EU electricity prices, broken down, compared to support for renewables * excludes VAT and other recoverable taxes in the case of industry 0 5 10 15 20 2008 2012 0 5 10 15 2008 2012 Eurocents / kWh Energy supply Network costs Taxes and levies* Households Industry 16.6 19.6 10.6 12.4 2008 2012 Support for renewables (% of total - estimate) Eurocents / kWh 3% 2008 2012 7% 4% 9% Source: European Commission +36% +127% +18% +30% +8% -3%
  • 6. 5Presentation of J.M. Barroso to the European Council, 20-21 March 2014 Energy efficiency: review in 2014 A renewed ambition for 2030 40% greenhouse gas reduction 20% greenhouse gas reduction 20% renewable energy 20% energy savings ≥27% renewable energy 2020 2030 Dedicated governance National plans Common indicators Monitoring
  • 7. 6Presentation of J.M. Barroso to the European Council, 20-21 March 2014 40 60 80 100 120 140 160 180 200 1990 2000 2010 2020 2030 Growing while saving Decoupling GDP from greenhouse gas emissions (GHG), 1990-2030 GDP GHG 1990=100 Reducing the EU fuel import bill with our 2030 proposal (import expenditure, in € billion) 0 100 200 300 400 500 600 700 2010 2015 2020 2025 2030 2035 2040 2045 2050 current policies 2030 proposal Source: European Commission
  • 8. 7Presentation of J.M. Barroso to the European Council, 20-21 March 2014 Energy costs to rise in all scenarios until 2030, but clear benefits from decarbonisation Energy costs, broken down by components (annual average in % of GDP) Investment in infrastructure Investment in energy efficiency Fuel imports Other energy purchases (domestic) 0% 4% 8% 12% 16% -1.2 imports 2010 Business- as-usual With 2030 proposal With 2030 proposal 2030 2050 +2.5 investment 12.8 14.3 14.1 Source: European Commission -1.2 imports
  • 9. 8Presentation of J.M. Barroso to the European Council, 20-21 March 2014 This is about investing in our future: 45% of our power generation capacity is more than 30 years old 0 MW 50.000 MW 100.000 MW 150.000 MW 200.000 MW 250.000 MW 300.000 MW <10 11-20 20-30 30-40 40-50 >50 Years Age of power generating capacities in the EU in 2013 (in years) Coal Oil Gas Nuclear Renewables (including hydro) Source: Platts Power Vision 300.000 MW 250.000 MW 200.000 MW 150.000 MW 100.000 MW 50.000 MW 0 MW
  • 10. 9Presentation of J.M. Barroso to the European Council, 20-21 March 2014 A cost-effective reduction in emissions Emissions trading system* Non-ETS sector* -21% -43% -10% -30% -20% -40% EU GHG target (1990 base) HOW?  'Cap and trade'  Market stability reserve  Protection against carbon leakage  Effort-sharing through binding national targets  Support measures (e.g. standards) 2020 2030 * Compared to 2005
  • 11. 10Presentation of J.M. Barroso to the European Council, 20-21 March 2014 0% 20% 40% 60% 80% 100% 1990 2000 2010 2020 2030 All sectors should contribute Share of greenhouse gas emissions, per sector and gas CO2 power sector CO2 heating buildings CO2 industry CO2 transport Other greenhouse gases current policies Source: European Commission
  • 12. 11Presentation of J.M. Barroso to the European Council, 20-21 March 2014 0 100 200 300 400 500 600 700 2011-2015 2016-2020 2021-2025 2026-2030 Estimated savings from current commitments on energy efficiency Energy efficiency is key Necessary investment Resulting savings Source: European Commission €billion 21 Net savings/year (in € bn) 178 311 363
  • 13. 12Presentation of J.M. Barroso to the European Council, 20-21 March 2014 Connecting and diversifying Reaping the benefits of a fully integrated energy market up to 2030 Internal market: € 43 - 70 bn per year in gas and electricity Potential for renewable energy Future potential for gas sources Potential for shale gas Hydroelectric Wind offshore Wind onshore 15 years of the EU current gas consumption 250 years of the EU current gas consumption 5 years of the EU current gas consumption Solar
  • 14. 13Presentation of J.M. Barroso to the European Council, 20-21 March 2014 Next steps  Today: orientations  Later in 2014: energy efficiency review  Sept. 2014: UN Secretary General leaders' summit  Agreement on 2030 framework at EU level  Dec. 2015 (Paris): global climate talks