The challenges facing EU energy policy are quickly apparent when one looks, on the one hand, at future projections and, on the other, our climate objectives - says the EU Commissioner as he explores our energy future in Europe.
According to the modelling work done for the Commission , the EU could use 30% more energy in 2030 than in 2005 if more policies and measures are not put in place than those that existed at the end of 2006. Equally, the share of renewable energy would amount to 12.7% in 2020, which is well below the target of 20% that the EU has set for itself. Carbon dioxide emissions are also expected to rise by over 5% by 2020, compared to their level in 1990, whereas the EU actually wants to reduce its greenhouse gas emissions by 20%, or even 30%. The conclusion to be drawn from this modelling work is clear: Europe has to do more if it is to live up to its ambitions.
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So what can the European Commission in Brussels do to assist the Member States in living up to their ambitions? First, the Commission is doing its utmost to make electricity and gas markets function better by ensuring effective competition and creating suitable conditions for the expansion of renewable energy. The starting point in several Member States is that the incumbent electricity and gas companies have not done enough to allow smaller renewable energy newcomers fair access to the market.
The Commission is also eager to promote the expansion of renewable energy, in all its forms. This is being done by the proposed Directive that sets national targets of renewable energy use for each Member State. The Member States will then have to strengthen and expand support measures for renewable energy. Each Member States has also committed to a 10% target for renewable energy in transport, which will be primarily met through the use of biofuels. In order to ensure that the biofuels used do not harm the environment, sustainability criteria were proposed and are now being negotiated. This means that whether biofuels are produced within Europe, or are imported from outside, they will be unquestionably good biofuels.
It is also crucially important to improve the EU's energy efficiency. An Action Plan was adopted in the autumn of 2007 that foresaw a 20% improvement in energy efficiency compared to what would normally have happened by 2020. A number of legislative proposals are soon to be published by the Commission, on energy efficiency standards of new and refurbished buildings, on energy labelling, and on performance standards for several categories of electrical product (e.g. lighting, stand-by equipment, and TV set-top boxes). The Commission is also supporting a scheme called the "Covenant of Mayors", where municipalities commit themselves to climate change objectives. Such initiatives at the grass roots level are welcome as they do not require complex legislative processes to happen first.
Clearly, technology will have a major role to play in the field of energy. With that in mind, the Commission's "Strategic Energy Technology Plan" aims to promote emerging technologies in 6 areas, including renewable energy (e.g. second generation biofuels), nuclear fission and carbon capture and storage. Financing of these new technologies will be a focus of further work by the Commission.
The other tasks to be overseen by the Commission in the energy area include nuclear safety, where nuclear power is used, to further solidarity between Member States, for example in the building of infrastructure, and to develop a more coherent external policy in energy matters.
The next major initiative will be to product a second Strategic Energy Review later this autumn. This will emphasise the importance of energy efficiency and security of supply. Furthermore, it will look forward even beyond 2020, and endeavour to set out a vision of what Europe needs to do in coming years. The inevitable back-drop for such an analysis is the need to address climate change, and the need to manage increasingly scarce fossil fuel resources.
The Strategic Energy Review will be accompanied by other measures, such as a Green Paper on Trans-European energy networks, a Communication of Offshore Wind and followed soon after by the revised energy efficiency standards of new and refurbished buildings.
Finally, a word about the Lisbon Treaty. The Lisbon Treaty contains a new Article dedicated to energy. In it is mentioned environmental improvement, solidarity between Member States, security of energy supply, the promotion of energy efficiency and the development of new and renewable forms of energy. Whether or not the Lisbon Treaty ever comes into force – and I sincerely hope it does – it is clear that the Member States are willing to acknowledge more explicitly the importance of an EU energy policy. Energy has earned a higher profile in the eyes of national Governments, and, in some shape or form, this higher profile will be reflected in the EU's wider agenda.
Energy policy presents the Member States with a number of complex and interrelated challenges. Fundamental problems need addressing, and the European Union can help in solving these. As Winston Churchill once said: "The pessimist sees difficulty in every opportunity. The optimist sees the opportunity in every difficulty."