1. European Commission DG TREN / C: Conventional Energy 18.06.2004 Greenhouse gas mitigation and energy policy, a European perspective Presentation by Cristóbal Burgos European Commission In-Session Workshop on climate change mitigation Hotel Maritim, Bonn 19 June 2004

2. European Commission DG TREN / C: Conventional Energy 18.06.2004 Context of the EU energy policy Need for imports: External dependence of EU forecast to rise from current 50% to 70% in 2030 Climate change: CO2 emissions forecast to rise by over 5% from 2000 to 2010 Rising demand: Demand for energy in transport could rise by 20% (passengers) and 30% (freight) in next 20 years Demand for electricity could rise by 2% pa (3% in new Member States). Technology development: No dramatic breakthrough of renewables expected under current market conditions New, enlarged internal market requires investments in new, cleaner infrastructure

3. European Commission DG TREN / C: Conventional Energy 18.06.2004 A starting point: the approach of the EU Green Paper European Commission’s Green Paper on security of supply: Develops long term integrated approach to energy supply and demand, taking into account development needs of rich and poorer nations and need to protect environment Proposes step change in energy use needed to de-couple economic growth from rising energy needs Looks to stable but dynamic markets to innovate and invest in new, cleaner and more efficient technologies and infrastructure.

4. European Commission DG TREN / C: Conventional Energy 18.06.2004 1. Setting targets Double the share of renewable energy in national gross energy consumption from 6% to 12% by 2010. Renewables Directive commits MS to introduce targets for share of renewables in electricity generation (average of 22% by 2010 from 14% today) Biofuels Directive sets targets for a minimum share of biofuels for transport (5.75% by 2010 and 20% by 2020). Proposed Energy efficiency directive would bind Member States to saving 1% more energy than has been the case over the last 5 years

5. European Commission DG TREN / C: Conventional Energy 18.06.2004 2. Changing the legal framework New EU legislation will enforce greater demand management, eg Better energy performance of building Wider use of energy labelling Minimum energy efficiency standards Proposals for cleaner vehicles, more ecological design for energy using products and higher end use energy efficiency

6. European Commission DG TREN / C: Conventional Energy 18.06.2004 3. Creating a more diversified energy base New EU legislation has given clear political backing to alternative and non-conventional energy sources by - setting a minium share of renewables in electricity generation - supporting the wider use of clean cogeneration (CHP) - setting targets for the use of biofuels in transport and permitting tax reductions for biofuels

7. European Commission DG TREN / C: Conventional Energy 18.06.2004 4. Stimulating research and investment EU’s 6 th RTD Framework Programme focusses on clean energy sources and low carbon technologies and gives greater emphasis to core priorities EU single energy market legislation encourages innovation and creates conditions for greater investment in energy efficiency EU emissions trading will create incentives and release funds to improve efficiency and invest in low carbon technologies

8. European Commission DG TREN / C: Conventional Energy 18.06.2004 5. Providing information and access to know-how Intelligent Energy Programme promotes clean technologies and energy efficient practices and enhances the impact of results of projects EU supports information networks and internet services for industry, public sector and the general public (eg OPETs, Managenergy etc) Clean vehicle and hydrogen task forces will pool expertise and increase international synergies

9. European Commission DG TREN / C: Conventional Energy 18.06.2004 6. Taking an international role Commission took leading role in securing positive outcome for developing countries at Johannesburg World Summit on Sustainable Development and its follow up New priority given to improving energy collaboration with key energy producers and consumers (Russia, CHINA, USA) and extending this to energy demand issues New Neighbourhood policies will help to extend benefits of EU approach to neighbouring countries and regions to the east and south

10. European Commission DG TREN / C: Conventional Energy 18.06.2004 Second ECCP Progress Report : ex-ante mitigation potential Supply of energy: current proposals emission reduction potential of 150Mt CO2eq. Energy demand measures: potential in the first commitment period estimated at 214-259 Mt CO2eq.

11. European Commission DG TREN / C: Conventional Energy 18.06.2004 Conclusions Depite progress, obstacles remain Social, fiscal and economic structures which result in persistently growing demand for imported oil and gas and electricity Consumers’ lack of motivation to invest in cleaner and more efficient energy use and production Energy supply depends on decisions in other areas, such as international relations, environment, tax, agriculture, research, competition – which have different objectives