1 Transferring EU Legislation on Climate Change&Developing Low Carbon Policies, May 24 th, Graz, Austria Implementation of Directive 2009/28/EC in the Energy Community and the challenges of reaching binding 2020 RES targets Gabriela Cretu Electricity and Renewable Energy Expert Energy Community Secretariat

2 Transferring EU Legislation on Climate Change&Developing Low Carbon Policies, May 24 th, Graz, Austria CONTENT  Energy Community  Renewable Energy Directive 2009/28/EC as adapted by the Ministerial Council Decision 2012/04/EnC-MC  Renewable Energy Action Plans

3 Transferring EU Legislation on Climate Change&Developing Low Carbon Policies, May 24 th, Graz, Austria ENERGY COMMUNITY 9 Contracting Parties Albania, Bosnia and Herzegovina, Croatia, Moldova, Former Yugoslav Republic of Macedonia, Montenegro, Serbia, Kosovo* and Ukraine (since 1 st Feb 2011) 4 Observers Turkey, Georgia and Norway and Armenia (since 2011) 15 Participants Austria, Bulgaria, Cyprus, Czech Republic, France, Germany, Greece, Hungary, Italy, The Netherlands, Poland, Romania, Slovakia, Slovenia, United Kingdom European Commission On behalf of European Union

4 Transferring EU Legislation on Climate Change&Developing Low Carbon Policies, May 24 th, Graz, Austria MINISTERIAL COUNCIL PERMANENT HIGH LEVEL GROUP REGULATORY BOARD (ECRB) ELECTRICITY FORUM GAS FORUM SOCIAL FORUM SECRETARIAT (VIENNA) OIL FORUM Political decisions Advisory body Working groups Monitoring, coordination, support Stakeholder involvement INSTITUTIONS

5 Transferring EU Legislation on Climate Change&Developing Low Carbon Policies, May 24 th, Graz, Austria Title II EnC Treaty: Commitment for the implementation of the acquis communautaire ►Electricity and Gas Third Internal Market Liberalisation Package ►Competition Antitrust and State Aid ►Renewable Energy Directive on the promotion of the use of energy from RES ►Environment Directive on environmental impact assessment Large Combustion Plants Directive Sulphur in Fuels Directive Endeavour to accede: Kyoto Protocol; Council Directive 96/61/EC concerning integrated pollution prevention and control ►Energy efficiency Energy Services, Buildings and Labelling Directives ►StatisticsRegulation on energy statistics Directive on the transparency of gas and electricity prices ►OilDirective on minimum stocks of crude oil/petroleum products “… with a view to ensuring high levels of investment security and optimal investments” THE COMMON LEGAL FRAMEWORK

6 Transferring EU Legislation on Climate Change&Developing Low Carbon Policies, May 24 th, Graz, Austria EU BY 2020 Greenhouse gas levels Energy consumption Renewables in the energy mix -20% 100% +20% 8,5% Source: EU DG ENER

7 Transferring EU Legislation on Climate Change&Developing Low Carbon Policies, May 24 th, Graz, Austria THE RENEWABLE ENERGY DIRECTIVE 2009/28/EC 1.Sets mandatory national targets for renewable energy shares, including 10% renewable share for transport, in Creates flexibility by facilitating “joint projects” with EU Member States or third countries and “statistical transfers” between EU Member States to help reach targets cost effectively 3.Requires national renewable energy action plans 4.Requires reduction of administrative and regulatory barriers, improvements in provision of information and training and improves renewables’ access to the electricity grid 5.Creates a sustainability regime for biofuels

8 Transferring EU Legislation on Climate Change&Developing Low Carbon Policies, May 24 th, Graz, Austria 49% 13% 16% 13% 30% 18% 25% 16% 18% 20% 23% 17% 13% 40% 23% 11% 13% 14% 34% 15% 31% 24% 25% 14% 38% 15% 10% RES share in 2020 BE BG CZ DK DE EE IE EL ES FR IT CY LV LT LU HU MT NL AT PL PT RO SI SK FI SE UK EU-27 efforts in Renewables 2.2% 9.4% 6.1% 17.0% 5.8% 18.0% 3.1% 6.9% 8.7% 10.3% 5.2% 2.9% 32.6% 15% 0.9% 4.3% 2.4% 23.3% 7.2% 20.5% 17.8% 16% 6.7% 28.5% 1.3% 39.8% 0% RES share in 2005 MEMBER STATES’ TARGETS Source: DG ENER

9 Transferring EU Legislation on Climate Change&Developing Low Carbon Policies, May 24 th, Graz, Austria 18 October 2012 in Budva, Montenegro the Ministerial Council adopted the Decision to implement the Directive 2009/28/EC in the Energy Community and to amend the Article 20 of the Treaty establishing the Energy Community D/2012/04/MC-EnC MINISTERIAL COUNCIL

10 Transferring EU Legislation on Climate Change&Developing Low Carbon Policies, May 24 th, Graz, Austria CONTRACTING PARTIES’ 2020 RES TARGETS 38% 40% 28% 17% 33% 27% 11% 25% 20% * This designation is without prejudice to positions on status, and is in line with UNSCR 1244 and ICJ Opinion on the Kosovo declaration of independence baseline year

11 Transferring EU Legislation on Climate Change&Developing Low Carbon Policies, May 24 th, Graz, Austria  Directive 2009/28/EC, as adapted General adaptations - "Member States“ replaced by "Contracting Parties„  “Community” replaced by “Energy Community”  “European Commission” replaced by “Energy Community Secretariat” except for executive powers Ad-hoc adaptations -CPs targets -NREAPs -Calculation of share of energy from RES Article 20 of Energy Community Treaty - Implementation of Directive 2009/28/EC in the Contracting Parties MINISTERIAL COUNCIL DECISION

12 Transferring EU Legislation on Climate Change&Developing Low Carbon Policies, May 24 th, Graz, Austria MINISTERIAL COUNCIL DECISION (cont’)  Directive 2009/28/EC, as adapted Statistical transfers between EU-MS and EnC-CPs Joint support schemes between EU-MS and EnC- CPs Joint Projects between EU-MS and EnC-CPs External Audits Review based on the experience

13 Transferring EU Legislation on Climate Change&Developing Low Carbon Policies, May 24 th, Graz, Austria FLEXIBILITY AND COST EFFECTIVENESS Contracting Parties are free to choose sectors to develop RES No technology-specific requirements Statistical transfers, joint support schemes Joint projects between EU Member States and the Contracting Parties based on physical transfer of electricity

14 Transferring EU Legislation on Climate Change&Developing Low Carbon Policies, May 24 th, Graz, Austria Article 8 – Statistical Transfers from Contracting Parties to Member States of the European Union - Statistical transfer between CPs and EU MS possible under conditions - A statistical transfer shall not affect the achievement of the national target of the Contracting Party making the transfer Article 9 - Joint support schemes between Contracting Parties and Member States of the European Union MC DECISION - LEGAL ADAPTATIONS

15 Transferring EU Legislation on Climate Change&Developing Low Carbon Policies, May 24 th, Graz, Austria Article 11 - Decisions of the Ministerial Council 1.The Decision of the Ministerial Council referred to in Articles 8 and 9 of this Decision shall be adopted by majority of the Members of the Ministerial Council, which must include a vote in favour by the European Union. 2.The Decision shall be positive only if all the following conditions are met: a)Contracting Party has fully transposed Directive 2009/28/EC, as adapted by this Decision; b)that the envisaged statistical transfers or distribution rule (as appropriate) are based on reliable and accurate energy statistics that are compiled in accordance with the European Union's methodology on energy statistics, c)and that the Contracting Party is expected to exceed the indicative trajectory and binding target without including potential contributions from joint projects with third countries. 3.The Ministerial Council shall adopt a procedural act on the implementation of the present article. LEGAL ADAPTATIONS (cont’)

16 Transferring EU Legislation on Climate Change&Developing Low Carbon Policies, May 24 th, Graz, Austria Statistical Transfer Joint Projects Joint Support Schemes Short-term cost-efficiency Gaining time for domestic deployment = Statistical Transfer + new investment in concrete installation Technology specific objectives Establishing longer term cooperation Security of supply considerations Mutual learning Long-term efficiency through broader resource portfolio and more liquid markets European Commission Guidance on the Implementation of cooperation mechanisms To be issued in July 2013

17 Transferring EU Legislation on Climate Change&Developing Low Carbon Policies, May 24 th, Graz, Austria IMPLEMENTATION DEADLINES Contracting Parties shall bring into force the laws, regulations and administrative procedures necessary to comply with this Directive by 1 January 2014 Article 4 - Directive 2009/28/EC as adapted: Notification of the National Renewable Energy Action Plans to the Secretariat NREAP– 30 June 2013  NREAP based on the EC template, the same for EU-MS; Notification of the forecast documents by 31 December 2012 (i.e. six months before the NREAPs are due): –its estimated excess production of energy from renewable sources compared to the indicative trajectory which could be transferred to other Contracting Party in accordance with Articles 6 to 11, as well as its estimated potential for joint projects, until 2020; and –its estimated demand for energy from renewable sources to be satisfied by means other than domestic production until 2020.

18 Transferring EU Legislation on Climate Change&Developing Low Carbon Policies, May 24 th, Graz, Austria RENEWABLE ENERGY ACTION PLANS  NREAP requirements: National sectoral targets and trajectories (electricity, transport heating& cooling) Adequate measures to achieve the overall target Means of cooperation between national, regional and local authorities Planned statistical transfers or joint projects Measures to remove administrative barriers, accelerate authorisation procedures, reinforce renewable energy integration into the energy system and the better exploitation of biomass resources in particular. Explanations of the support schemes For the Contracting Parties – 2009 baseline year

19 Transferring EU Legislation on Climate Change&Developing Low Carbon Policies, May 24 th, Graz, Austria INDICATIVE TRAJECTORY Energy efficient scenario considered in the forecast >>> posibble adjustments in the RES Action Plan will be needed in the future Target achievement in energy efficiency will help to reach the RES target at lower cost S ,20 (S 2020 – S 2009 ), as an average for the two-year period 2011 to 2012; S ,30 (S 2020 – S 2009 ), as an average for the two-year period 2013 to 2014; S ,45 (S 2020 – S 2009 ), as an average for the two-year period 2015 to 2016 S ,65 (S 2020 – S 2009 ), as an average for the two-year period 2017 to 2018

20 Transferring EU Legislation on Climate Change&Developing Low Carbon Policies, May 24 th, Graz, Austria  Dispute settlement proceedings for:  failure to produce an credible national action plan  failure to implement all aspects of the Directive  significant deviation from plan or trajectory  valid complaints from any Contracting Party natural or legal persons regarding incorrect implementation or enforcement by the Contracting Party  Dispute settlement proceedings are the usual tool for enforcing Energy Community Treaty. Effectiveness:  most cases are resolved (corrective action taken by Contracting Parties) before reaching the Ministerial Council. ENFORCEMENT!

21 Transferring EU Legislation on Climate Change&Developing Low Carbon Policies, May 24 th, Graz, Austria For further RES information please contact: Gabriela Cretu (RES-E) Karolina Cegir (RES-T) Borko Raicevic (RES-H) Energy Community Secretariat Am Hof 4, 1010 Vienna Energy Community Secretariat Am Hof 4, 1010 Vienna Thank you!