DG Energy and Transport, European Commission Fabrizio Barbaso 17/04/2008 EU RENEWABLE ENERGY PROPOSALS ARF Energy Security Seminar EUROPEAN COMMISSION

| 2 EU RENEWABLE ENERGY PROPOSALS Integrated climate and energy policy FULLYBALANCEDINTEGRATEDAND MUTUALLY REINFORCED Sustainable Development Competitiveness Security of supply

| 3 EU RENEWABLE ENERGY PROPOSALS Key drivers by 2020 By % EFFICIENCY BIO-FUELS Min 10% binding ELECTRICITY MS binding choice HEATING & COOLING MS binding choice By 2020 binding 20% RENEWABLES in final energy consumption at EU level NATIONAL TARGETS & ACTION PLANS By % EU GHG

| 4 EU RENEWABLE ENERGY PROPOSALS European Commission proposals 23/01/08. A new EU emissions trading scheme with a European (not national) cap, auctioning of allowances: to generate reductions in GHG of 21%. New national targets to achieve a 10% GHG reduction in non ETS sectors. A framework to promote the development of CO2 capture and storage. New guidelines on state aid for environmental protection. An assessment of national Energy Efficiency Action Plans. New directive to reach the 20% renewable energy target and 10% biofuels target

| 5 EU RENEWABLE ENERGY PROPOSALS The renewables directive. Sets mandatory national targets for renewable energy shares, including 10% biofuels share, in 2020 (Articles 3 and 5). Requires national action plans (Article 4). Standardises guarantees of origin (certifying the renewable origin of electricity or heat) and enables the transfer of these to provide flexibility to Member States (Articles 6, 7, 8, 9 and 10). Requires reduction of administrative and regulatory barriers (Article 12), improvements in provision of information and training (Article 13) and improves renewables access to the electricity grid (Article 14). Creates a sustainability regime for biofuels (Articles 15-18)

| 6 EU RENEWABLE ENERGY PROPOSALS Trajectory to 20%

| 7 EU RENEWABLE ENERGY PROPOSALS Responding to the triple challenge FULLYBALANCEDINTEGRATEDAND MUTUALLY REINFORCED Sustainable Development Close link to greenhouse gas emission target – savings of 600 to 900 mln tonnes of CO2 Competitiveness With falling renewable energy prices, renewables are increasingly an economically sound alternative Security of supply Renewable energy mostly generated within the EU

| 8 EU RENEWABLE ENERGY PROPOSALS Promotion of biofuels Sustainability criteria for biofuels:. GHG savings – minimum of 35%. No raw material from undisturbed forests, biodiverse grassland, nature protection areas (unless taken harmlessly). No conversion of wetlands and continuously forested areas for biofuel production (to protect carbon stocks). All EU biofuels must meet cross compliance environmental rules

| 9 EU RENEWABLE ENERGY PROPOSALS Role of technology. Renewables sector has growing importance worldwide – already turnover of 30 billion in the EU, providing approximately 350,000 jobs. But renewable energies are at different stages of technological and commercial development. Increased demand will improve economies of scale and lower costs. Continued international cooperation in research is necessary

| 10 EU RENEWABLE ENERGY PROPOSALS Thank you for your attention! For more information on integrated proposal for Climate Action, including the renewables directive proposal: