2 european commission, dg energy and transport, jean-arnold vinois, head of the energy policy and...
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2European Commission, DG Energy and Transport, Jean-Arnold Vinois, Head of the Energy Policy and Security of Supply Unit Seminar Europe’s Energy Challenge: Securing Supply, RUSI, London, 21 May 2007.
INTEGRATING INTEGRATING ENERGY & ENVIRONMENTENERGY & ENVIRONMENT
Energy Policy for EuropeEnergy Policy for Europe
(Strategic Energy Review)(Strategic Energy Review)
Limiting Global ClimateLimiting Global Climate
ChangeChange to 2°Cto 2°C
A unilateral EU independent commitment of
at least 20% GHG emission reduction by 2020, compared to 1990 levels
And a 30% reduction if broader participation
STRATEGIC OBJECTIVE
3European Commission, DG Energy and Transport, Jean-Arnold Vinois, Head of the Energy Policy and Security of Supply Unit Seminar Europe’s Energy Challenge: Securing Supply, RUSI, London, 21 May 2007.
Developing countries GHG emissions
0%
40%
80%
120%
160%
200%
240%
280%
320%
1990 2005 2020 2030 2040 2050
Baseline Reduction Scenario
At EU level at least 20% GHG emission reduction by 2020,
compared to 1990 levels
For negotiations with developed countries: 30% GHG emission
reduction target by 2020, compared to 1990 levels
Developing countries: Decoupling emissions and growth asap,
absolute reductions after 2020
Deforestation: halt within two decades and then reverse
THE STRATEGIC OBJECTIVETHE STRATEGIC OBJECTIVE
Developed countries GHG emissions
0%
20%
40%
60%
80%
100%
120%
140%
1990 2005 2020 2030 2040 2050
Baseline Reduction Scenario
ENERGY FOR A CHANGING WORLD
EXTERNAL RELATIONS
ILLUSTRATIVE
NUCLEAR
PROGRAMME (PINC)
SUSTAINABLE FOSSIL
FUEL TECHNOLOGIES
INTERNAL MARKET
REPORT ON
FUNCTIONING OF
INTERNAL MARKET
DG COMP
SECTOR INQUIRY
PRIORITY
INTERCONNECTION
PLAN
PROGRESS REPORT
RES ELECTRICITY
PROGRESS REPORT
BIOFUELS
RENEWABLE ENERGY
ROAD MAP
SUSTAINABILITY AND LOW-CARBON ECONOMY
ENERGY EFFICIENCY
ACTION PLAN
(19 OCT 2006)
JOINT COMMISSION/ HR /COUNCIL JUNE 2006 PAPERAND COM PAPER OCT 2006
DIALOGUE WITH PRODUCERS:NORWAY-OPEC-GCC-
ALGERIA-CASPIAN BASIN(BAKU PROCESS)
EU-AFRICA PARTNERSHIP
NEGOTIATION MANDATEFOR NEW AGREEMENT
WITH RUSSIA
DIALOGUE WITH CONSUMERS:US, JAPAN,CHINA, INDIA,
BRAZIL
ACTION PLAN 2007-2009
ENERGY PACKAGE2007
ENERGY POLICY FOR EUROPE
GREEN PAPER ENERGY
SPRING EUROPEAN COUNCIL 2007
THE R&D 7TH FRAMEWORK PROGRAMME STRATEGIC ENERGY TECHNOLOGY PLAN (2007)
LIMITING CLIMATE CHANGE TO 2 °C
SPRING EUROPEAN COUNCIL 2006
5European Commission, DG Energy and Transport, Jean-Arnold Vinois, Head of the Energy Policy and Security of Supply Unit Seminar Europe’s Energy Challenge: Securing Supply, RUSI, London, 21 May 2007.
5
Competitiveness“LISBON”
Sustainable Development
“KYOTO”
Security of supply
FULLY FULLY
BALANCED BALANCED
INTEGRATEDINTEGRATED
AND AND
MUTUALLY REINFORCEDMUTUALLY REINFORCED
I. THE THREE CHALLENGESI. THE THREE CHALLENGES
6European Commission, DG Energy and Transport, Jean-Arnold Vinois, Head of the Energy Policy and Security of Supply Unit Seminar Europe’s Energy Challenge: Securing Supply, RUSI, London, 21 May 2007.
1. 1. COMPETITIVENESSCOMPETITIVENESS
Problems with the Problems with the Internal Energy MarketInternal Energy Market : :
Incomplete and incorrect transposition of Incomplete and incorrect transposition of EU directives: 26 infringement cases EU directives: 26 infringement cases against 16 MSagainst 16 MS
Different powers and competences of Different powers and competences of national regulatorsnational regulators
Markets are not integrated sufficiently – Markets are not integrated sufficiently – national markets concentrated;national markets concentrated;
Lack of cross border capacity and need for Lack of cross border capacity and need for more interconnections;more interconnections;
Incompatible market design in some cases Incompatible market design in some cases – e.g. balancing, transmission tariff – e.g. balancing, transmission tariff regimesregimes
Limited wholesale tradingLimited wholesale trading
7European Commission, DG Energy and Transport, Jean-Arnold Vinois, Head of the Energy Policy and Security of Supply Unit Seminar Europe’s Energy Challenge: Securing Supply, RUSI, London, 21 May 2007.
Concentration of Concentration of national gas marketsnational gas markets
BelgiumFranceHungaryPoland
AustriaDenmarkGermany
ItalyNL
UK
0 20 40 60 80 100
Incumbent(s) share of available gas in %
8European Commission, DG Energy and Transport, Jean-Arnold Vinois, Head of the Energy Policy and Security of Supply Unit Seminar Europe’s Energy Challenge: Securing Supply, RUSI, London, 21 May 2007.
UK – fairly competitive market
SPAIN - duopolyFRANCE - single dominance
GERMANY - oligopoly
Concentration in electricity Concentration in electricity marketsmarkets
9European Commission, DG Energy and Transport, Jean-Arnold Vinois, Head of the Energy Policy and Security of Supply Unit Seminar Europe’s Energy Challenge: Securing Supply, RUSI, London, 21 May 2007.
Estimated hours of congestion as a percentage of all hours, Jan-May 2005
0
25
50
75
100
SK -HU
FR -CH
DE -DK
NL -BE
FR -UK
DE -NL (1)
FR -ES
CZ -DE
NL -DE (1)
BE -NL
DE -FR (1)
CZ -AT
DE -CZ (1)
UK -FR
FR -DE
Selection of borders
Hou
rs w
hen
requ
este
d ca
pac
ity e
xcee
ds
avai
labl
e ca
paci
ty a
s a
perc
enta
ge o
f al
l hou
rs
NL DE FR CZ
Electricity interconnectors are often chronically congested
10European Commission, DG Energy and Transport, Jean-Arnold Vinois, Head of the Energy Policy and Security of Supply Unit Seminar Europe’s Energy Challenge: Securing Supply, RUSI, London, 21 May 2007.
Average industrial electricity prices 2002-2006
Member States with regulated tariffs such as France and Spain are not representatives
Euro/MWh net of tax
Belgium
DenmarkGermany
Italy
Hungary
Czech RepFinland
UK
Sweden
0 20 40 60 80 100
Prices for commercial Prices for commercial electricity userselectricity users
11European Commission, DG Energy and Transport, Jean-Arnold Vinois, Head of the Energy Policy and Security of Supply Unit Seminar Europe’s Energy Challenge: Securing Supply, RUSI, London, 21 May 2007.
1. COMPETITIVENESS1. COMPETITIVENESS
Source: EUROSTAT
EU-27 INVESTMENT NEEDS up to 2030: EU-27 INVESTMENT NEEDS up to 2030: €€11.79 trillion.79 trillion
RES-H&C5%
Generation65%
Transmission8%
Distribution27%
Electricity77%
Oil5%
Gas12%
Coal1%
12European Commission, DG Energy and Transport, Jean-Arnold Vinois, Head of the Energy Policy and Security of Supply Unit Seminar Europe’s Energy Challenge: Securing Supply, RUSI, London, 21 May 2007.
Source: European Environemental Agency Report 2006
22. . SUSTAINABLE DEVELOPMENTSUSTAINABLE DEVELOPMENT
Energy => 80% of EU-GHGEnergy => 80% of EU-GHG
Energy 59%Transport 21%
Agriculture 9%
Industrial processes 8%
Waste 3%
13European Commission, DG Energy and Transport, Jean-Arnold Vinois, Head of the Energy Policy and Security of Supply Unit Seminar Europe’s Energy Challenge: Securing Supply, RUSI, London, 21 May 2007.
-200
-100
0
100
200
300
400
500
600
2000/1990 2010/1990 2020/1990 2030/1990
transport industry electricity/steam other total CO2
Mt CO2 – relative to 1990 (Baseline)Mt CO2 – relative to 1990 (Baseline)
TRENDS IN CO2 EMISSIONS up to 2030TRENDS IN CO2 EMISSIONS up to 2030
22. . SUSTAINABLE DEVELOPMENTSUSTAINABLE DEVELOPMENT
14European Commission, DG Energy and Transport, Jean-Arnold Vinois, Head of the Energy Policy and Security of Supply Unit Seminar Europe’s Energy Challenge: Securing Supply, RUSI, London, 21 May 2007.
EU-27 ENERGY MIX: High dependence on fossil fuels EU-27 ENERGY MIX: High dependence on fossil fuels => Business as usual is => Business as usual is NOT SUSTAINABLENOT SUSTAINABLE
Source: EUROSTAT
Solid fuels18%
Oil38%
Gas24%
Nuclear14%
Renewables6%
Other0%
Oil34%
Gas27%
Nuclear11%
Renewables12% Solid fuels
16%
20042004 2030 2030 (BaU)(BaU)
22. . SUSTAINABLE DEVELOPMENTSUSTAINABLE DEVELOPMENT
15European Commission, DG Energy and Transport, Jean-Arnold Vinois, Head of the Energy Policy and Security of Supply Unit Seminar Europe’s Energy Challenge: Securing Supply, RUSI, London, 21 May 2007.
15
Sources : European Commission Eurostat 2004
3. SECURITY OF SUPPLY 3. SECURITY OF SUPPLY
EU-27 ORIGIN OF GASEU-27 ORIGIN OF GAS
EU37%
RUSSIA29%
ALGERIA13%
NORWAY17%
EU-27 ORIGIN OF OILEU-27 ORIGIN OF OIL
SAUDIARABIA
9%
IRAN5%
LIBYA8%
RUSSIA26%
Others10% EU
18%
NORWAY13%EU-27 ORIGIN OF COALEU-27 ORIGIN OF COAL
EU 54%RUSSIA
8%SOUTHAFRICA
13%
16European Commission, DG Energy and Transport, Jean-Arnold Vinois, Head of the Energy Policy and Security of Supply Unit Seminar Europe’s Energy Challenge: Securing Supply, RUSI, London, 21 May 2007.
THE KEY DRIVERS 3x20% by 2020THE KEY DRIVERS 3x20% by 2020
20% by 2020 EFFICIENCY20% by 2020 EFFICIENCY
BIO-FUELSBIO-FUELS
Min 10% bindingMin 10% binding
E-ELECTRICITYE-ELECTRICITY
MS bindingMS binding
choicechoice
HEATING & COOLINGHEATING & COOLING
MS bindingMS bindingchoicechoice
By 2020 binding 20% RENEWABLES By 2020 binding 20% RENEWABLES
EU levelEU level
NATIONAL TARGETS and ACTION PLANS NATIONAL TARGETS and ACTION PLANS
By 2020 20% EU GHGBy 2020 20% EU GHG
17European Commission, DG Energy and Transport, Jean-Arnold Vinois, Head of the Energy Policy and Security of Supply Unit Seminar Europe’s Energy Challenge: Securing Supply, RUSI, London, 21 May 2007.
II. II. Actions for aActions for a Post- Post-Industrial RevolutionIndustrial Revolution THE ACTION PLANTHE ACTION PLAN
Fully realising the Internal market for electricity and Fully realising the Internal market for electricity and gas and improving interconnectionsgas and improving interconnections
Making solidarity a daily realityMaking solidarity a daily reality
Strong measures to improve energy efficiencyStrong measures to improve energy efficiency
Longer term and binding targets for renewablesLonger term and binding targets for renewables
A strategic approach to energy technology, with a A strategic approach to energy technology, with a priority for low carbon technologiespriority for low carbon technologies
A clear perspective on nuclear A clear perspective on nuclear
A common A common internationalinternational energy policy and a energy policy and a common voice in negotiations with external partnerscommon voice in negotiations with external partners
Market analysis and reporting Market analysis and reporting
18European Commission, DG Energy and Transport, Jean-Arnold Vinois, Head of the Energy Policy and Security of Supply Unit Seminar Europe’s Energy Challenge: Securing Supply, RUSI, London, 21 May 2007.
1. INTERNAL ENERGY MARKET1. INTERNAL ENERGY MARKETPolicy ActionsPolicy Actions (1) (1)
Enhancing the role of national regulators: Enhancing the role of national regulators: On third party access to networks and gas storage Balancing mechanisms Cross-border issues Market surveillance and consumer protection
Reinforcing co-ordination of regulators at EU level =Reinforcing co-ordination of regulators at EU level =>> OPTIONSOPTIONS
Enhanced co-operation between national regulators Binding power decision making to the European
Regulators Group for Gas and Electricity A new, single Community body
19European Commission, DG Energy and Transport, Jean-Arnold Vinois, Head of the Energy Policy and Security of Supply Unit Seminar Europe’s Energy Challenge: Securing Supply, RUSI, London, 21 May 2007.
Non-discriminatory access to networks through Non-discriminatory access to networks through
unbundling =unbundling =>> 2 OPTIONS 2 OPTIONS Ownership unbundling as the most efficient means Independent System Operator (ISO) second-best
Interconnection: more co-ordination between Interconnection: more co-ordination between Transmission System Operators (TSOs)Transmission System Operators (TSOs)
Increased Transparency of the marketIncreased Transparency of the market
BindingBinding network security standardsnetwork security standards
Energy Customers CharterEnergy Customers Charter
Assessment of Investment needsAssessment of Investment needs
1. INTERNAL ENERGY MARKET1. INTERNAL ENERGY MARKETPolicy ActionsPolicy Actions (2) (2)
20European Commission, DG Energy and Transport, Jean-Arnold Vinois, Head of the Energy Policy and Security of Supply Unit Seminar Europe’s Energy Challenge: Securing Supply, RUSI, London, 21 May 2007.
The Commission will develop an Energy Customers‘ The Commission will develop an Energy Customers‘ Charter to, inter alia:Charter to, inter alia:
tackle fuel poverty (public services obligations)tackle fuel poverty (public services obligations)
improve the minimum level of information available to improve the minimum level of information available to citizens to help them choose between suppliers and citizens to help them choose between suppliers and supply options and to increase energy efficiencysupply options and to increase energy efficiency
reduce red tape when customers change suppliersreduce red tape when customers change suppliers
protect customers from unfair selling practices in protect customers from unfair selling practices in compliance with the relevant EC directivescompliance with the relevant EC directives
1. INTERNAL ENERGY MARKET1. INTERNAL ENERGY MARKETEnergy CustomersEnergy Customers CharterCharter
21European Commission, DG Energy and Transport, Jean-Arnold Vinois, Head of the Energy Policy and Security of Supply Unit Seminar Europe’s Energy Challenge: Securing Supply, RUSI, London, 21 May 2007.
1. 1. INTERNAL ENERGY MARKETINTERNAL ENERGY MARKET Priority Interconnection PlanPriority Interconnection Plan
Continuous identification of missing infrastructureContinuous identification of missing infrastructure
European coordinators for 4 priority projects:European coordinators for 4 priority projects: Power-Link Germany, Poland Lithuania, Power-Link Germany, Poland Lithuania,
Connections to off-shore wind power Northern Europe, Connections to off-shore wind power Northern Europe,
Electricity interconnections France-Spain, Electricity interconnections France-Spain,
Nabucco pipelineNabucco pipeline
TEN-E projects of “European interest”: planning and approval TEN-E projects of “European interest”: planning and approval procedures to be completed in maximum 5 yearsprocedures to be completed in maximum 5 years
Possibility to increase funding for TEN-E (155 millions € for Possibility to increase funding for TEN-E (155 millions € for the period 2007-2013)the period 2007-2013)
New Community mechanism for TSOs coordination of New Community mechanism for TSOs coordination of network planningnetwork planning
22European Commission, DG Energy and Transport, Jean-Arnold Vinois, Head of the Energy Policy and Security of Supply Unit Seminar Europe’s Energy Challenge: Securing Supply, RUSI, London, 21 May 2007.
2. SOLIDARITY IN SECURITY OF SUPPLY2. SOLIDARITY IN SECURITY OF SUPPLY
A fully functioning internal energy market is the A fully functioning internal energy market is the best guarantee of supply security and best guarantee of supply security and contributes to a better prediction of demandcontributes to a better prediction of demand
Gas Coordination Group Gas Coordination Group
Oil Supply GroupOil Supply Group
Energy Correspondents NetworkEnergy Correspondents Network
Communication on strategic stocks (oil and gas)Communication on strategic stocks (oil and gas)
Effective mechanisms for energy crisis Effective mechanisms for energy crisis managementmanagement
Electricity InterconnectionsElectricity Interconnections
23European Commission, DG Energy and Transport, Jean-Arnold Vinois, Head of the Energy Policy and Security of Supply Unit Seminar Europe’s Energy Challenge: Securing Supply, RUSI, London, 21 May 2007.
33. ENERGY EFFICIENCY. ENERGY EFFICIENCY Saving 20% Saving 20% energy energy by 2020by 2020
Energy Efficiency Action PlanEnergy Efficiency Action Plan - - adopted on 19 October 2006adopted on 19 October 2006
Most issues are as valid for Russia as for EUMost issues are as valid for Russia as for EURealising the Potential:Realising the Potential: Transport: fuel efficient cars; better use of public
transport; introduction of biofuels
Appliances: tougher standards and better labelling
Buildings: improving the energy performance of the EU’s building stock
Improving the efficiency of heat and electricity generation, transmission and distribution
Competitiveness and Innovation Programme (CIP) funds the intelligent energy-Europe programme=> 640 millions € for the period 2007-2013
24European Commission, DG Energy and Transport, Jean-Arnold Vinois, Head of the Energy Policy and Security of Supply Unit Seminar Europe’s Energy Challenge: Securing Supply, RUSI, London, 21 May 2007.
44.. RENEWABLE ENERGY SOURCESRENEWABLE ENERGY SOURCES 20% 20% RES RES by 2020by 2020
Commission proposes a binding overall Commission proposes a binding overall EU 20% target by 2020 and a EU 20% target by 2020 and a 10% minimum binding target for biofuels for each Member State.
Member States to set national targets and to adopt action plans on:
RES in electricity
Heating and cooling
Biofuels
25European Commission, DG Energy and Transport, Jean-Arnold Vinois, Head of the Energy Policy and Security of Supply Unit Seminar Europe’s Energy Challenge: Securing Supply, RUSI, London, 21 May 2007.
5. RESEARCH 5. RESEARCH Strategic Energy Technology PlanStrategic Energy Technology Plan
Ready by the end 2007Ready by the end 2007
To be discussed by the Spring European Council 2008To be discussed by the Spring European Council 2008
Sustainable coal and gas: to make power plants Carbon Sustainable coal and gas: to make power plants Carbon
Capture and Storage (CCS) ready by 2020Capture and Storage (CCS) ready by 2020
Second generation biofuels, photovoltaic, large-scale Second generation biofuels, photovoltaic, large-scale
offshore-wind, hydrogen fuel cellsoffshore-wind, hydrogen fuel cells
Generation IV fission power, nuclear fusionGeneration IV fission power, nuclear fusion
Energy efficient transports, appliances and industrial Energy efficient transports, appliances and industrial
systemssystems
26European Commission, DG Energy and Transport, Jean-Arnold Vinois, Head of the Energy Policy and Security of Supply Unit Seminar Europe’s Energy Challenge: Securing Supply, RUSI, London, 21 May 2007.
In the 7th Framework Programme (FP) energyIn the 7th Framework Programme (FP) energy
funds increased by 50% in comparison with the funds increased by 50% in comparison with the last FP:last FP:
2007-20132007-2013 Non nuclear Energy: €2350 millionNon nuclear Energy: €2350 million
(>50% for RES and energy efficiency)(>50% for RES and energy efficiency) Environment : €1890 million (including Environment : €1890 million (including
climate change) climate change) Nuclear (Euratom): €2751 million (of which Nuclear (Euratom): €2751 million (of which
€1947 for fusion, €517 CCR research and €1947 for fusion, €517 CCR research and 287€ for fission)287€ for fission)
5. 5. RESEARCHRESEARCH FundingFunding
27European Commission, DG Energy and Transport, Jean-Arnold Vinois, Head of the Energy Policy and Security of Supply Unit Seminar Europe’s Energy Challenge: Securing Supply, RUSI, London, 21 May 2007.
Up to 12 industrial-scale demonstration Up to 12 industrial-scale demonstration
facilities of sustainable power generation from facilities of sustainable power generation from
fossil fuel in Europe;fossil fuel in Europe;
Clear timeframe for installation of CO2 capture Clear timeframe for installation of CO2 capture
& storage (CCS) for coal- and gas-fired power & storage (CCS) for coal- and gas-fired power
plants;plants;
CCS fitting any new fossil fuel plant after 2020;CCS fitting any new fossil fuel plant after 2020;
Retrofitting of existing plants to be examinedRetrofitting of existing plants to be examined
Improvement of the legal framework (eg CCS in Improvement of the legal framework (eg CCS in
Emission Trading Scheme; storage) and public Emission Trading Scheme; storage) and public
acceptance acceptance
5. 5. RESEARCHRESEARCH Sustainable Fossil FuelsSustainable Fossil Fuels
28European Commission, DG Energy and Transport, Jean-Arnold Vinois, Head of the Energy Policy and Security of Supply Unit Seminar Europe’s Energy Challenge: Securing Supply, RUSI, London, 21 May 2007.
66. THE FUTURE OF NUCLEAR. THE FUTURE OF NUCLEAR
Around 1/3 of the electricity and 15% of the EU energy Around 1/3 of the electricity and 15% of the EU energy mix is from nuclear; 15 Member States concernedmix is from nuclear; 15 Member States concerned
CO2-free source with importance in low emission CO2-free source with importance in low emission scenariosscenarios
Concerns on nuclear waste and decommissioningConcerns on nuclear waste and decommissioning
Illustrative Nuclear Programme (PINC) describes Illustrative Nuclear Programme (PINC) describes present EU and world situation of the nuclear sectorpresent EU and world situation of the nuclear sector
Policy Actions:Policy Actions: EU High Level Group on Nuclear Safety and Waste EU High Level Group on Nuclear Safety and Waste
ManagementManagement Support R&D on waste management under FP7 Support R&D on waste management under FP7
research programmeresearch programme Nuclear Forum to be set up (with all stakeholders)Nuclear Forum to be set up (with all stakeholders)
29European Commission, DG Energy and Transport, Jean-Arnold Vinois, Head of the Energy Policy and Security of Supply Unit Seminar Europe’s Energy Challenge: Securing Supply, RUSI, London, 21 May 2007.
NEGOTIATIONS & AGREEMENTS on energy, climate, trade and NEGOTIATIONS & AGREEMENTS on energy, climate, trade and
technology:technology: Post-2012 climate regime to be discussed in UN frameworkPost-2012 climate regime to be discussed in UN framework
World Bank Gas Flaring Reduction PartnershipWorld Bank Gas Flaring Reduction Partnership
Extractive Industries Transparency InitiativeExtractive Industries Transparency Initiative
Energy Charter Treaty to be fully functioningEnergy Charter Treaty to be fully functioning
Extension of Emission Trading Scheme (ETS) to global Extension of Emission Trading Scheme (ETS) to global partners and to other sectorspartners and to other sectors
International agreement on energy efficiency of interest for all International agreement on energy efficiency of interest for all major consumers of energy, including Russiamajor consumers of energy, including Russia
Energy Star (office equipment)Energy Star (office equipment) ENERGY RELATIONS WITH EU NEIGHBOURS:
(Norway, Energy Community Treaty, European Neighbourhood Policy, Egypt, Mashrek/Magreb, Libya, Algeria, Turkey)
77. INTERNATIONAL ENERGY POLICY. INTERNATIONAL ENERGY POLICY ( (11))
30European Commission, DG Energy and Transport, Jean-Arnold Vinois, Head of the Energy Policy and Security of Supply Unit Seminar Europe’s Energy Challenge: Securing Supply, RUSI, London, 21 May 2007.
77. INTERNATIONAL ENERGY POLICY. INTERNATIONAL ENERGY POLICY (2) (2)
EU - RUSSIA ENERGY COOPERATIONEU - RUSSIA ENERGY COOPERATION
Energy partnership in the framework of the post-PCA agreement and strengthening the energy dialogue through joint works.
COOPERATION WITH KEY ENERGY PRODUCERS, TRANSIT COOPERATION WITH KEY ENERGY PRODUCERS, TRANSIT COUNTRIES AND CONSUMERSCOUNTRIES AND CONSUMERS
OPEC, Golf Cooperation Council, Central Asia (e.g. MoU Azerbaijan, Kazakhstan), Baku InitiativeLatin America, Caribbean Africa-Europe Partnership
NETWORK OF ENERGY CORRESPONDENTSNETWORK OF ENERGY CORRESPONDENTS
NON-PROLIFERATION and NUCLEAR SAFETY AND SECURITY NON-PROLIFERATION and NUCLEAR SAFETY AND SECURITY with IAEAwith IAEA
31European Commission, DG Energy and Transport, Jean-Arnold Vinois, Head of the Energy Policy and Security of Supply Unit Seminar Europe’s Energy Challenge: Securing Supply, RUSI, London, 21 May 2007.
IIIIII. Costs and benefits(1). Costs and benefits(1)
Investments in a low carbon economy: 0.5% of total global GDP 2013-
2030
20% share for renewables: - additional costs of €18
billion/year (oil prices of $48/barrel by 2020)
- or €10.6 billion ($78/barrel)- no additional costs if carbon
price at €20
Business as Usual would cost more: $100/barrel in 2030 would add €170 billion to our bill
What about the cost of the uncertainty of oil and
gas prices and climate damages?
32European Commission, DG Energy and Transport, Jean-Arnold Vinois, Head of the Energy Policy and Security of Supply Unit Seminar Europe’s Energy Challenge: Securing Supply, RUSI, London, 21 May 2007.
IIIIII. Costs and . Costs and Benefits(2)Benefits(2)
Improvement of the Emission Trading Scheme Reduction of abatement costs for regulated industries and
sectors but need to extend sectoral and geographical coverage; Stimulation of growth and job creation and innovation
Saving 20% energy by 2020 Would save €100 billion and around 780 Mt CO2/year in 2020 or
1/5 of today's emissions
Technical progress fostered by clear policies Efficiency gains New technologies being developed to make fuel mix more
sustainable and to deploy renewables sources of energy
Internal Market Efficiency gains and competitive prices Downward pressure on costs for downstream industries and
consumers; Enhanced solidarity between Member States Credibility of EU speaking with common voice
33European Commission, DG Energy and Transport, Jean-Arnold Vinois, Head of the Energy Policy and Security of Supply Unit Seminar Europe’s Energy Challenge: Securing Supply, RUSI, London, 21 May 2007.
IV. THE EUROPEAN COUNCIL ACTION PLAN 2007-2009IV. THE EUROPEAN COUNCIL ACTION PLAN 2007-2009
European Council fully endorsed on 9 March 2007European Council fully endorsed on 9 March 2007 an action plan an action plan for An Energy Policy for Europe, for An Energy Policy for Europe, based on Commission’s proposals.based on Commission’s proposals.
European Parliament had been more ambitious in European Parliament had been more ambitious in its resolution ofits resolution of 14 December 2006.14 December 2006.
Legislative proposals to be tabled by the Legislative proposals to be tabled by the Commission (eg internal market and Renewables) Commission (eg internal market and Renewables) in autumn 2007.in autumn 2007.
UNFCCC & Kyoto Protocol processes (2007-2009)UNFCCC & Kyoto Protocol processes (2007-2009)
June G8 meeting in Heiligendamm under DE Pres.June G8 meeting in Heiligendamm under DE Pres.
34European Commission, DG Energy and Transport, Jean-Arnold Vinois, Head of the Energy Policy and Security of Supply Unit Seminar Europe’s Energy Challenge: Securing Supply, RUSI, London, 21 May 2007.
THANK YOU FOR YOUR ATTENTIONTHANK YOU FOR YOUR ATTENTION
All documents on the climate and energy package are available on:
http://ec.europa.eu/energy/energy_policy/index_en.htm
EENERGY FOR A CHANGING WORLDNERGY FOR A CHANGING WORLD