cepi 26 november
DESCRIPTION
The EU’s 2030 climate and energy framework: What’s in it for industrial sectors? Presentation by Tomas Wyns (IES) at the European Paper week 2014. How can the EU's climate policy (e.g. EU ETS) help industrial sectors innovate and become more competitive.TRANSCRIPT
The EU’s 2030 climate and energy framework: What’s in it for industrial sectors?
Tomas Wyns, [email protected] CEPI European Paper Week 2014
2020
20 20 20 20% GHG reductions
by 2020 ref. 1990
Implemented through ESD (-10% ref. 2005)
EU ETS (-21% ref. 2005)
20% Renewable Energy by 2020
Implemented through RE Directive
20% Energy Savings by 2020 ref. BAU
Implemented through EED
EPBD Ecodesign CO2 & cars
Binding Binding Indicative EU-wide target for
EU ETS (LRF 1.74%) National targets under
ESD
National targets under RE-directive
Indicative targets for MS (EED)
Binding measures (EED, EPBD, …)
2030
40 27 27 40% GHG reductions(*)
by 2030 ref. 1990
Implemented through ESD (-30% ref 2005)
EU ETS (-43% ref 2005)
27% Renewable Energy by 2030
Implemented through new governance system
National Energy Plans
Review of RE directive?!
27% Energy Savings by 2030 ref. BAU
Implemented through new governance system National Energy Plans
Reviews of EED,
EPBD, Ecodesign CO2 & cars ?!
Binding Binding (at EU level) Indicative
NO national binding targets
EU-wide target for EU ETS (LRF to 2.2%)
National targets under ESD
Possible future: indicative targets for MS or binding
measures
(*) “at least 40% domestic
EU ETS: what’s on the table (cap)
• Market Stability Reserve should increase price stability and hence investor certainty (ongoing - uncertainty over starting date), Council supports EC proposal.
• (21% reduction in 2020 going up to) -43% in 2030, ref. 2005 for ETS sectors, through
• increased Linear Reduction Factor (1.74-2.2%) brings EU ETS more in line with long-term (2050) targets (-80 to -95%)
EU ETS: what’s on the table (carbon leakage)
• Existing carbon leakage measures will not expire (as long as no comparable efforts undertaken in other major economies)
• Appropriate levels of support for sectors at risk of losing int’l competitiveness
• Benchmarks to be periodically reviewed (tech. progress in sectors)
• Direct and indirect carbon costs taken into account (but in line w state aid rules)
• Future allocation “better aligned” with changing production levels
EU ETS: supporting modernisation and industrial innovation
• New Entrants Reserve 300 to be renewed and extended (NER 400)
• Scope extended to low-carbon innovation in industrial sectors
• New reserve to address capital intensive investments in low-income Member States (e.g. energy efficiency, energy sector infrastructure)
EU (ETS) 2030: some personal reflections (i)
• Annual allocation adjustment based on actual production will be difficult (could be a curse in disguise).
• Additional allowances should be linked (more) with (physical) investments
• Cross-sectoral correction seems to remain in place but… does LRF have to be 2.2% for industry and power sector (e.g. 2% for industry and 2.4% for power)?
EU (ETS) 2030: some personal reflections (ii)
• Ensure EU wide level playing field for carbon leakage protection (not the case now)
• Industrial demand side management not mentioned in Council conclusions
• NER for industrial low-carbon innovation: Finally! (see next slides)
Industrial policy and innovation
NER 400
NER 400: Industrial low-carbon innovation
• Should focus on capital and risk intense (large scale) demonstration projects aiming towards commercialisation post 2030
• Create toolbox of risk-sharing instruments (grants, equity participation, loans, loan-guarantees, …)
• Facilitate upfront capital access through project milestones
• Industrial co-benefits should be acknowledged (e.g. productivity increase, resource efficiency, …)
• Encourage cross-sectoral/cross-company collaboration
Thank you!
For more information please contact:
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