1. EU Environmental approximation in the WB and Turkey- ETNAR Conference Climate, transport and energy policy analysis in Serbia Zvezdan Kalmar Leona Mezei CEKOR Palić, September 24 th to 26 th 2013

2. Climate Serbia is a Party to the UNFCCC since 2001 and to the Kyoto Protocol since 2008. Serbia has an obligation to report on its emissions and mitigation actions, every 4 years. Serbia has started preparing the second report. With the SEE CT (2005) Serbia is committed to ensuring that its TPP comply with the emissions requirements of the EU Large Combustion Plants Directive. Serbian authorities are planning to negotiate implementation of those directives since deadline for implementation of LCD is 31 December 2017. Directive 2010/75/EU on industrial emissions should be transpozed until 2018.

3. The national framework for environment and climate change policy 1.The National Programme for Integration with the European Union; 2.The National Sustainable Development Strategy of the Republic of Serbia – 2008; 3.National Programme for Environmental Protection 2010-2019; 4.The Environmental Approximation Strategy 2011-2019 (EAS); 5.Strategy for development of energy sector of the Republic of Serbia stimulates EU accession as a main political objective; 6.The Law on Mining and Geological Exploration. Strategy for combat of climate change with an action plan 2013- 2015 is under construction. ** Which implies meeting EU standards

4. Transport The National Strategy for Sustainable Development - reducing of share of transport in air pollution and noise emission, and noise emission by improving quality of fuel and vehicles and by reducing the use of fossil fuels; Law on Air Transport - covers only basic principles contained in the European regulations; From Energy and climate package Serbia should implement DIRECTIVE 2003/87/EC establishing a scheme for GHG emission allowance trading within the Community.

5. Transport According to Strategy of railway, road, inland waterway, air and intermodal transport development in Serbia, 2008 – 2015: The vision of the transport system in 2015 in terms of sustainable development in the transport system are: -it should use all modes of transport in accordance with their respective advantages, - traffic safety should be improved to the level achieved by the EU, - the negative social and environmental impacts of transportation are controlled and permanently reduced.

6. Transport Serbia has ratified the Directive related to a reduction of the sulphur content of certain liquid fuels and amending Directive 93/12/EEC. Following Regulations should be implemented too: Regulation on reduction of CO ₂ emissions from new cars Revision fuel quality directive Biofuels – it is expected that biofuels will be available from 2014.

7. Energy According to the Draft of Energy Strategy until 2025 with the projection until 2030 the major priorities are: -Reconstruction of TPP in accordance with Directive on LCP, -***Concern – risk that life expectancy of TPPs will extend for 20 years, -Construction of the new TPP based on lignite capacity of 700 MW until 2025 (TPP based on lignite capacity of 350 MW until 2020). -Construction of Pump storage Bistrica. -**High probability - Đredap pump storage. -Construction heat and power cogeneration on natural gas in Novi Sad until 2020. (capacity on 450 MW). -Construction of the transmission and distribution infrastructure – High voltage transmission network.

8. Energy efficiency and emission control Law on planning and construction - the first time to became a legal regulations of Energy efficiency -predicts improvement of EE, energy characteristics of buildings and measures for improving EE in buildings in order to the reduce energy consumption, increase energy savings and ensure sustainable building sector. Law on Rational Use of Energy - has been prepared and final adoption was adopted in March 2013. Second Energy Efficiency Action Plan 2013-2015 is in preparation and expected to be adopted in 2013. There is Directive from Energy Package should be implemented DIRECTIVE 2012/27/EU on energy efficiency Energy

9. Energy Renewable energy The National renewable energy Action Plan until 2020 has predicted objective that 27% of overall final energy will produces from RES. o By signing the Treaty establishing the Energy Community Serbia has to provide a plan to implement: o a) Directive 2001/77/EC on the promotion of electricity produced from RES in the internal electricity market and o b) Directive 2003/30/EC on the promotion of the use of biofuels or other renewable fuels for transport.

10. Energy Renewable energy -Draft of Energy Strategy until 2025 with the projection until 2030., the following projections on production of electricity from RES are envisaged:  The wind power plants with 300 MW capacity, 42 MW hydropower (<10MW) and 5 MW solar power plants will build until 2025.  While in 2030 it is planned to build the following capacities from RES: 600 MW wind power plants, 400 MW hydropower ( 10MW), 80 MW power plants on biogas, 5 MW geothermal power plants, 200 MW Biomass power plant, 200 MW solar power plants.  !!! Due to reason of high “CAPEX” for large hydro and big wind farms government Is foreseeing massive participation of foreign investors and long-term (25 years) export of green energy – ENERGY GRAB.

11. The first Regulation on feed-in tariffs implemented in 2009. The new Regulation - 2013. Amount of 0.044 RSD/kWh will pay final consumers 20092013 Type of power plantPurchase price (c€/kWh) Small hydro power plant7,8 – 9,77,38 - 12,40 Plants on biomass11,4 – 13,68,22 - 13,82 Biogas plants12 – 1615,66 - 16,49 Sewage and landfill gas6,76,91 Wind power plant9,59,20 Solar power2316,25 – 20,66 On the object ≥0,03MW On the object 0,03-0,05 MW On the ground 20,66; 20,941 – 9,383 16,25 Geothermal power plant7,56,92 – 9,67 Power plant on combined production 7,6 – 10,48,04 Power plants that use waste8,5 – 9,28,57

12. Case study How to make energy sector sustainable? Issues Issues  There is not developed any form of Alternative „Zero carbon“ strategy.  The existence of a monopoly in the energy sector, which is based on the lignite mining and burning from Kolubara and Kostolac basins, wich does not allow to develop other options.  Notion of energy security is misunderstood and presented on the erroneously way in Serbia – strong push toward keeping lignite production as far as possible  Energy dependence of primary energy is over 40%.

13. Recommendations:  Reversal of monopoly in Serbian energy sector and introducing levelheaded conditions for competition of classic and renewable energy industries.  Developing an alternative „Zero carbon“ energy strategy – wich does not depend on lignite and does not produce GHG.  For early development of Energy security is necessery to implemet the Third package for electricity and gas market.  Strong focus on powerty reduction (more than 60% of citizens is under powerty line in energy supply). Case study How to make energy sector sustainable?

14. Recommendations: Implementation Third package for electricity and gas market: Directive 2009/72/EC concerning common rules for the internal market in electricity  Regulation No 714/2009 on conditions for access to the network for cross-border exchanges in electricity Directive 2009/73/EC concerning common rules for the internal market in natural gas  Regulation No 715/2009 on conditions for access to the natural gas transmission networks Case study How to make energy sector sustainable?

15. Thank you for attention!!