Sustainable Energy

Moving toward competitive sustainable and secure energy for Europe

The European Union (EU) is committed to reducing its greenhouse gas emissions by between 80-95 % below 1990 levels by 2050. It has a clear agenda up to 2020. Now it is setting a new direction for its decarbonisation ambitions for the following 3 decades in order to provide certainty for investors, governments and citizens.

Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions – Energy roadmap 2050 (COM(2011) 885 final of 15.12.2011).

The energy roadmap examines various scenarios for achieving a competitive low carbon economy by 2050 while ensuring security of energy supply. It demonstrates that whichever scenario is chosen the decarbonisation aims are feasible.

KEY POINTS

To achieve the new energy system, the roadmap identifies the following factors:

the existing 2020 energy strategy, with its ability to help reduce emissions by 40 % by 2050, must be fully implemented;
the prime focus should be on energy efficiency, especially in new and old buildings, transport, products and appliances;
renewables have the potential to provide some 30 % of total EU energy consumption by 2030;
higher public and private investment is needed in R & D and technological innovation to make low-carbon energy commercially viable;
substituting gas for coal and oil can reduce emissions with existing technologies until at least 2030 or even 2035;
energy prices need to better reflect actual costs, especially when new investments are being made. The earlier this is done, the easier the change to a low-carbon system;
new energy infrastructure, for electric vehicles for example, and storage facilities are needed inside the EU and in neighbouring countries;
safety and security of traditional and new energy sources must remain paramount;
the EU should take a broader and more coordinated approach towards its international energy relations and moves to tackle climate change;
concrete milestones must be set for achievable goals and to give guidance to investors as the EU takes the next step by defining its 2030 policy framework.

BACKGROUND

Europe’s energy system needs to change for reasons of climate, security and the economy. Energy investment takes a long time to produce results. Decisions taken today are already shaping the energy system of 2050, as ageing infrastructure begins to be replaced and new forms of energy are developed. In this transformation, investors, both public and private, need a clear idea of the direction the EU is taking.

ACTS

Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions – Energy 2020: a strategy for competitive, sustainable and secure energy (COM(2010) 639 final of 10.11.2010).

The future of carbon capture and storage in Europe

Carbon capture and storage (CCS) is a technique of trapping carbon dioxide emissions from large sources, such as power plants, compressing and transporting them for safe storage deep in the ground. The technology has major potential to help mitigate climate change. However, the costs involved, particularly in capturing the emissions, are high.

Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions on the future of carbon capture and storage in Europe (COM(2013) 180 final of 27.3.2013)

The European Commission’s communication stresses that CCS is a key technology in the transition to a competitive low-carbon economy by 2050. It is capable of reconciling rising demand for fossil fuels with the need to reduce greenhouse gas emissions. It outlines the progress made to date and seeks the views of interested parties on a number of options to encourage the wider and commercially viable use of the technology in the European Union (EU).

KEY POINTS

Globally, over 20 demonstration scale CCS projects are operating successfully. Eight of these do the full capture, transport and storage. None are in the EU.

The communication identifies obstacles to wider use of CCS:

absence of economic rationale to invest in CCS given the low level of ETS prices;
public opposition to storing CO2 onshore (see background below);
sufficient storage capacity exists, but not all capacity is accessible or located close to CO2 emitters;
need for international cooperation.

Funding for large-scale CCS demonstration projects is available from the European energy programme for recovery and the NER300 programme.

BACKGROUND

CO2 can be stored in various places, notably oil, gas or deep saline reservoirs and unmineable coal seams. It must not come into contact with the atmosphere. Legislation in place since 2009 on the geological storage of CO2, known as the CCS Directive, stipulates how storage sites must be selected, permitted, operated and closed. They must demonstrate no significant risk of leakage or damage to human health or the environment.

A 2005 report by the intergovernmental panel on climate change concluded that geological reservoirs, if appropriately selected and managed, are ‘very likely’ to retain over 99 % of the stored CO2 for over 100 years and ‘likely’ to retain 99 % for longer than 1 000 years.

For more information, see the European Commission’s carbon capture and geological storage website.

Promotion of the use of energy from renewable sources

Directive 2009/28/EC — promoting the use of energy from renewable sources

This directive, which amends and repeals earlier Directives 2001/77/EC and 2003/30/EC, creates a common set of rules for the use of renewable energy in the EU so as to limit greenhouse gas (GHG) emissions and promote cleaner transport.
It sets national binding targets for all EU countries with the overall aim of making renewable energy sources account by 2020 for 20% of EU energy and for 10% of energy specifically in the transport sector (both measured in terms of gross final energy consumption, i.e. total energy consumed from all sources, including renewables).

KEY POINTS

Each EU country is to make a national action plan for 2020, setting out how to achieve the national target for renewables in gross final energy consumption as well as the 10% target for renewable energy sources in transport.

To help achieve targets in a cost-effective way, EU countries can exchange energy from renewable sources*. To count towards their action plans, EU countries can also receive renewable energy from countries outside the EU, provided that energy is consumed in the EU and that it is produced by modern/efficient installations.
Each EU country must be able to guarantee the origin of electricity, heating and cooling produced from renewable energy sources.
EU countries should build the necessary infrastructure for using renewable energy sources in the transport sector.

Directive (EU) 2015/1513 amends Directives 2009/28/EC and 98/70/EC, the EU’s law on the quality of petrol and diesel fuels. Among other things, it aims to start the transition from conventional* (first-generation) biofuels to advanced* (second-generation) biofuels that deliver substantial GHG savings. It introduces a 7% cap on conventional biofuels to count towards the renewable energy directive targets for final energy consumption in transport by 2020.

It has applied since 25 June 2009. EU countries had to incorporate it into national law by 5 December 2010.

BACKGROUND

This directive implements one of the 20-20-20 targets from the EU’s 2020 climate and energy package. The other two targets are to:
reduce GHG emissions by 20% from 1990 levels; and
improve energy efficiency by 20%.

Energy from renewable sources: energy from non-fossil sources, such as wind, solar, geothermal, hydropower, biomass and sewage treatment plant gas (e.g. methane).

Conventional biofuels: made from food crops, such as sugar, starch and vegetable oils. They are produced from land using feedstock, which can also be used for food and feed.

Advanced biofuels: made from sources that do not compete directly with food and feed crops, such as wastes and agricultural residues.

DOCUMENTS

Directive 2009/28/EC of the European Parliament and of the Council of 23 April 2009 on the promotion of the use of energy from renewable sources and amending and subsequently repealing Directives 2001/77/EC and 2003/30/EC (OJ L 140, 5.6.2009, pp. 16-62)

Successive amendments and corrections to Directive 2009/28/EC have been incorporated in the basic text. This consolidated version is of documentary value only.

Directive 98/70/EC of the European Parliament and of the Council of 13 October 1998 relating to the quality of petrol and diesel fuels and amending Council Directive 93/12/EEC (OJ L 350, 28.12.1998, pp. 58-68)

Encouraging the use of biomass as an alternative source of energy

Biomass can help tackle climate change by lowering greenhouse gas emissions. Its use for heating, electricity generation and transport fuels can diversify the European Union’s (EU) energy supply and create growth and jobs. For its contribution to be effective, it must be produced in a sustainable manner.

Communication from the Commission – Biomass action plan (COM(2005) 628 final of 7 December 2005).

It sets out ways to increase the development of biomass energy by creating incentives for its use and removing obstacles to its production. It identifies measures to promote biomass in heating, electricity and transport. It addresses issues such as supply, financing and research. The action plan was a first step to highlight the industry’s importance.

KEY POINTS

The communication led to further initiatives to promote biofuels.

Sustainability criteria exist to ensure that the use of biofuels guarantees real carbon savings and protects biodiversity. They stipulate that biofuels:

must achieve greenhouse gas savings of at least 35 % compared to fossil fuels. This rises to 50 % in 2017;
cannot be grown in areas with previously high carbon stock such as wetlands and forests;
cannot be produced from raw materials harvested from biodiversity-rich land.
Voluntary schemes verify whether producers comply with the sustainability criteria. If they do, they are eligible for financial support or their output counts towards national renewable targets.

Procedures for permits: practical recommendations provide help and advice to project developers, NGOs and public authorities when handling requests to build biomass plants.

The European advanced biofuels flight path aims to promote biofuels as a renewable fuel alternative for aircraft.

Biomass is derived from organic material such as trees, plants and agricultural and urban waste. Its production involves a chain of activities from growing of feedstock to final energy conversion. In 2012, biomass and waste accounted for some two thirds of all renewable energy consumption in the EU.

ACTS

Green Paper – A European strategy for sustainable, competitive and secure energy (COM(2006) 105 final of 8.3.2006).

Bioeconomy for Europe

This communication on bioeconomy* outlines a wide-ranging strategy to move the European Union towards greater and more sustainable use of renewable resources in the face of environmental, energy and food security challenges, while stimulating economic growth and creating jobs.

Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions: Innovating for sustainable growth: a bioeconomy for Europe (COM(2012) 60 final of 13.2.2012).

The strategy’s goal is a more innovative and low-emission economy, reconciling these diverse but interconnected challenges and embracing the sustainable use of renewable biological resources in industry. In doing this, biodiversity and environmental protection should be assured, stimulating economic growth and creating jobs.

With the world’s population expected to increase by more than 30 % in the next 40 years, meeting these complex challenges requires research and innovation in order to achieve rapid, concerted and sustained change.

KEY POINTS

For its implementation, the strategy presents a bioeconomy action plan, which focuses on three main areas, as indicated below.

Ensuring investment in research, innovation and skills for the bioeconomy, through EU funding, national funding and partnerships with the private sector. Supporting the development of bioeconomy curricula in universities and vocational training schemes is an important element of this.
Better coordination and engagement with policy makers and stakeholders on bioeconomic issues, through the creation of advisory bioeconomy panels at all levels. A bioeconomy observatory should monitor progress, while the strategy also proposes regular conferences of interested parties. International cooperation and the sharing of expertise on food security, climate change and the issue of sustainable biomass supply are to be encouraged.

Opening up markets and improving competitiveness in the bioeconomy sector by boosting sustainable production and promoting waste conversion into new products. The strategy also promotes the importance of standards and consistent ways of assessing sustainability, as well as facilitating ‘green’public procurement.

BACKGROUND

With an annual turnover of around €2 trillion and employing around 22 million people, the bioeconomy is already one of the most important components of the EU economy.

It is estimated that direct research funding associated with the bioeconomy strategy under Horizon 2020 could generate about 130,000 jobs and €45 billion by 2025.

Bioeconomy: an economy using biological resources from the land and sea as well as waste, including food wastes, as inputs to industry and energy production. It also covers the use of bio-based processes to green industries.

For more information, see the European Commission’s Bioeconomy website.