Legal & Regulatory

EC Agrees on 2030 Climate and Energy Policy Framework

Meeting in Brussels, Belgium, Oct. 23–24, the European Council (EC) agreed on the 2030 climate and energy policy framework for the European Union (EU), calling on all countries to come forward with ambitious targets and policies.

The EC endorsed a binding EU target of at least a 40% reduction in domestic greenhouse gas emissions by 2030, compared to 1990 levels. It proposed utilizing a reformed emissions trading system as the main instrument in achieving the target, changing the annual factor to reduce emissions from 1.74% to 2.2%, beginning in 2021.

Renewable energy targets were set at 27% in 2030—binding at the EU-level—while the EC left open the option of supporting member states that set more ambitious national targets. It noted that integration of rising levels of intermittent renewable energy will require appropriate backup and a more interconnected energy market, but left coordination of those aspects for regional entities to carry out.

Energy efficiency improvements were also a priority for the commission. An EU-level target was set of at least 27% savings in 2030 compared to projections of future energy consumption. The EC said it would review the policy by 2020, however, with a 30% goal on the table.

The renewable energy and energy efficiency targets are non-binding nationally, which is a point of contention for some groups. The European Wind Energy Association (EWEA) believes the EC missed an opportunity to be more aggressive. According to the EWEA, the “decision to set an EU-binding target of 27% showed a lack of ambition to improve Europe’s energy security. Governments also ignored calls from the renewable energy sector and European business leaders for a nationally-binding target of at least 30%.”

“The 27% target is disappointing and is contrary to the incoming Commission’s plans to make Europe the world leader in renewables,” Thomas Becker, CEO of the EWEA, said in a statement, but the EC said it didn’t want to dictate a specific energy mix to member states and that each state is free to set its own higher national target.

Another priority for the EC is developing a functional internal energy market connection. It is focusing specifically on integration of the Baltic States, Portugal, and Spain—member states that it feels have not yet attained a minimum level of integration in the internal energy market—setting a target of 10% of existing electricity interconnections. But even that was met with skepticism.

“The interconnectivity target is bewildering given the current political challenges Europe is facing,” Becker said. “We’re in the midst of an energy crisis with Russia holding Member States to ransom over gas supplies. Yet Heads of State see fit to trot out a meaningless target that will do nothing to improve connection in the Iberian Peninsula or the security of supply in the Baltic States, let alone allow an internal energy market to develop.”

In the area of energy security, the EC agreed to implement gas projects of common interest, such as the north-south corridor, the southern gas corridor, and the promotion of a new gas hub in Southern Europe. It also aims to improve the use of regasification and storage capacity to respond to emergency situations.

Aaron Larson, associate editor (@AaronL_Power, @POWERmagazine)

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