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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