1. Limiting Global Climate Change to 2 °Celsius The way ahead for 2020 and beyond Jos Delbeke DG ENV Director Climate Change & Air Energy for a changing world

2. Key Objectives Climate Change and Energy Package l Meeting the 2°C objective (Top down): m EU: In the international negotiations set forward the GHG reduction target of 30 % by 2020 for developed countries (compared to 1990 levels). m EU: An reduction objective of 20% GHG emission reductions by 2020 (compared to 1990) l Tools (Bottom up): m “An Energy Policy for Europe” m GHG policies including Emissions trading m Global carbon market

3. l 3 Competitiveness “LISBON” Renewable energy Energy efficiency Carbon sequestration Research and innovation Emission trading International Dialogue European stock management (oil/gas) Refining capacity and energy storage Diversification Internal Market Interconnections (Trans-European networks) European electricity and gas network Research and innovation Clean coal Carbon sequestration Alternative fuels Energy efficiency Nuclear Sustainable Development “KYOTO” Security of supply „MOSCOW“ FULLYBALANCEDINTEGRATEDAND MUTUALLY REINFORCED THE CHALLENGE

4. An Energy Policy for Europe: l New steps to reach internal market - options for unbundling and regulatory powers: m important for functioning EU ETS m decrease hurdles for renewables l Renewable Energy 20% objective by 2020 m differentiation of targets necessary between countries m flexibility in target setting within a country between sectors l Includes biofuels target of 10% by 2020 l Nuclear: member states’ choice l Sustainable power generation from fossil fuels: 12 demonstration plants by 2015, aiming at near-zero emissions by 2020 l Towards a European strategic energy technology plan Key Objectives Climate Change and Energy Package

5. Recommendations by the High Level Group on Competitiveness, Energy and Environment Policies l Climate change is likely to have major negative global implications l Global temperature increase should not exceed 2°C l Preference for a well functioning EU ETS as a central instrument for GHG reductions l Increase levels of certainty for investors l Take into account the need for regulatory stability l More harmonisation of allocation across the EU l Advance the international policy framework post-2012 l Make significant contribution to further development of a global carbon market, consider linking of EU ETS with compatible systems emerging in other countries