EPRG Presentation on the Climate and Energy Package

							                Energy for a changing world


Limiting Global Climate Change to 2° Celsius
            The way ahead for 2020 and beyond
           1. Key Objectives Climate Change and
           Energy Package

Meeting the 2°C objective:
  In international negotiations GHG reduction target of
  30% by 2020 for developed countries (vs. 1990).

  A firm, independent commitment to achieve at least
  20% GHG reduction by 2020 for EU-27 (vs. 1990)

Perspective of Kyoto Protocol:
  2012 -8% (EU-15)
  Today -5% (EU-27)
        -1% (EU-15)
           2. An Energy Policy for Europe

Energy efficiency (eg. cars, appliances, buildings)
   to be improved by 20% by 2020
Renewable energy: 20% mandatory objective by 2020
   differentiation of targets necessary between Member States
   flexibility in target setting within a country between sectors
   includes minimum biofuels target of 10% by 2020
Sustainable power generation from fossil fuels: aiming at
near-zero emissions of new plants by 2020
New steps to reach internal market - options for
unbundling and regulatory powers:
   important for functioning EU ETS
   decrease hurdles for renewables
Nuclear: Member States’ choice
Towards a European strategic energy technology plan
           3. Global Participation
The 2°C objective:            140%
                                        Developed countries GHG emissions

Global GHG emissions need     120%

to peak around 2020           100%
                              80%

EU & Developed countries:     60%


30% GHG emission reduction
                              40%
                              20%
target by 2020, compared to    0%

1990 levels                          1990       2005         2020
                                                       Baseline
                                                                          2030        2040
                                                                     Reduction Scenario
                                                                                             2050



Developing countries:
Reduced growth asap,                        Developing countries GHG emissions

absolute reductions after
                              320%
                              280%

2020                          240%
                              200%

Deforestation: halt within    160%

two decades and then
                              120%
                               80%

reverse                        40%
                                0%
                                     1990        2005         2020         2030       2040   2050
                                                        Baseline     Reduction Scenario
              4. Global carbon market
• Firm independent target = long term signal for investors in ETS
• Review EU ETS
• Link it to compatible systems
                                                INVESTMENT COST
• Global emissions peak around 2020: global        GLOBAL GDP
  carbon market decreases investment costs
  with a factor 3.
• Proposals to increase market signals in
  developing countries:
   • Improve and widen CDM
   • Improved access to financing (EBRD,
     GEEREF etc.)
          5. Benefits and Costs

“Winning the Battle” & Stern Review: benefits of limiting
Climate Change outweigh costs of action
Costs of inaction: 5%-20% of global GDP (Stern Review)
Costs of action for the EU (2030):
  -30% target with global participation: -0,19% annualised GDP
  -20% independent target: -0,02% to -0,09% annualised GDP
Does not include co-benefits:
  Increased energy security
  Improved competitiveness through innovation
  Health benefits from reduced air pollution
  Limits on climate change
         More information

Climate change:
http://ec.europa.eu/environment/climat/future_action.htm

 Energy:
http://ec.europa.eu/energy/energy_policy/index_en.htm