1. ECCP II Stakeholder meeting Oct 2005 Slide n° 1 The European Climate Change Programme ECCP II The European Climate Change Programme ECCP II Angel Perez Sainz Head of Unit Energy Production and Distribution Systems DG Research European Commission The role of Technology in Climate Change Policy Stakeholders Meeting 24 Oct 2005

2. ECCP II Stakeholder meeting Oct 2005 Slide n° 2 OUTLINE Where are we ? Where do we want to go ? A huge potential for technology Actions underway: Is there sufficient awareness, consistency ? Avenues for the future : The role of ECCP

3. ECCP II Stakeholder meeting Oct 2005 Slide n° 3 Communication from the EC (February 2005) :Winning the Battle Against Global Climate Change Challenges : More drastic GHG reductions will be needed max. 2°C increase, max. 450 ppmv,- 50 / 60% by 2050 Participation Challenge: Include all major emitters share of EU-25 in world GHG emissions will decline to <10% share of developing countries will expand to >50% Innovation Challenge Pulling technological change: Stimulate markets to promote adoption of new technology Pushing technological change: Invest in knowledge economy to give EU a competitive edge in a low carbon future Adaptation Challenge CLIMATE CHANGE - POST 2012

4. ECCP II Stakeholder meeting Oct 2005 Slide n° 4 Communication from the EC (February 2005) : Winning the Battle Against Global Climate Change Conclusions The inclusion of more policy areas: widen scope of international action to cover all greenhouse gases and all sectors. Enhanced innovation to transform energy and transport systems optimal mix of technology push (RTD) and pull (Market Stimulation) instruments The continued use of market based and flexible instruments The inclusion of adaptation policies More resources need to be allocated in the EU to adapt effectively to climate change The broadening of participation Specific projects/ programmes with major emitting nations to improve energy efficiency or to promote development and adoption of low- carbon technologies CLIMATE CHANGE - POST 2012

5. ECCP II Stakeholder meeting Oct 2005 Slide n° 5 Communication from the EC (February 2005) :Winning the Battle Against Global Climate Change EC recommendations for a post-2012 EU Climate Change Strategy: NEXT STEPS Immediate and effective implementation of agreed policies Kyoto Protocol, ETAP, Energy Efficiency Initiative. Increased public awareness More and better focused research increased EU funding under the 7th Framework Programme Stronger co-operation with third countries technology transfer, scientific R&D cooperation European Climate Change Programme in 2005 energy efficiency, RES, the transport sector carbon capture and storage. CLIMATE CHANGE - POST 2012

6. ECCP II Stakeholder meeting Oct 2005 Slide n° 6 Some issues and facts The Energy system is complex Debate by policy drivers, climate change, but also security of supply, growth and competitiveness Greenhouse gases and the energy system Sectoral approaches useful, but need to address the whole energy system Interaction between sources, carriers, and conversion must also be reflected in RTD programmes Energy efficiency and energy savings : Energy policy and Technology policy

7. ECCP II Stakeholder meeting Oct 2005 Slide n° 7 Development vs. Deployment Status of development Example of technologies Type of actions needed Future promising technology Termonuclear fusion RTD New energy technology Hydrogen Fuel cells New generation PV systems Virtual PP concepts CCS RTD: cost, safety, reliability, performance Preparation of regulatory and market frameworks Existing but not fully deployed commercially New nuclear / Most RES (PV, solar, biomass, ocean …) Microgrids Some fuel cells Biofuels Policy measures RTD (decrease costs) Established technology Fossil fuels Gas turbines Internal combustion energies Some RES (e.g. hydro, wind, geothermal) RTD focussed on improving efficiency (mainly private effort) Policy measures to stimulate efficiency/savings

8. ECCP II Stakeholder meeting Oct 2005 Slide n° 8 Technology Development vs. Deployment Factors to consider Factors to consider : Technology push vs. Market pull Competition factors : level playing field Internalisation of external costs High cost, long life of energy infrastructures

9. ECCP II Stakeholder meeting Oct 2005 Slide n° 9 The Stabilization Triangle 195520052055 0 7 14 1.9 Billions of tons of carbon per year year Historical emissions Interim goal Tougher targets Flat path Projected emissions Stabilization triangle Introduction to the Wedges Ref. R. Socolow-Princeton University

10. ECCP II Stakeholder meeting Oct 2005 Slide n° 10 Cutting the Stabilization Triangle in Wedges Flat path Projected emissions 7 * 1 GtC 50 years One wedge is 7*50/2 = 175 GtC Wedges

11. ECCP II Stakeholder meeting Oct 2005 Slide n° 11 A huge potential for technology (… but obstacles are also huge) Energy technology developed in the Framework programmes is all climate friendly FP6 : 205 M / yearFP7 : 418 M / year Short termLong term Large scale deployment of renewables Integration: RES + Efficiency (Building, Eco, Polygeneration) Alternative fuels Fuel cells Carriers, H2 & Electricity Renewables CO2 C+S Hydrogen and Fuel cells Renewable electricity generation Renewable fuel production Renewable for heating and cooling CO2 capture and storage technologies for zero emission power generation Clean coal technologies Smart energy networks Energy savings and energy efficiency Knowledge for energy policy making

12. ECCP II Stakeholder meeting Oct 2005 Slide n° 12 A great variety of initiatives underway Both at the European and International level RTD Framework programmes and Competitiveness and Innovation Programme (CIP) The United Nations Development Programme – Energy for sustainable development A number of initiatives for facilitating financing and investment in low carbon technologies

13. ECCP II Stakeholder meeting Oct 2005 Slide n° 13 A great variety of initiatives underway Need for awareness and coordination Need for a more coherent strategy on technology policy for climate change

14. ECCP II Stakeholder meeting Oct 2005 Slide n° 14 Winning the battle Next steps Recognise the role of technology Identify the interactions between policy measures, particularly those where technology has a central role A Climate change Technology Strategy and Policy

15. ECCP II Stakeholder meeting Oct 2005 Slide n° 15 Role of ECCP Establish a working group (including public and private stakeholders) to Discuss and clarify issues and Review and analyse initiatives underway Assess « strategies » in relevant major partners Recommend a way forward to the EC/EU