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Debate begins over fate of renewable energy subsidies

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Published 03 December 2012, updated 23 May 2013

EU energy ministers are poised to seek "non-binding" guidance from the European Commission on reform of green fuel subsidies as part of a debate on new post-2020 policy goals, according to a draft document.

The cost of renewable energy is divisive, as politicians in Germany, for instance, blame it for high prices that can undermine EU competitiveness compared with the United States, which has benefited from cheap and abundant shale gas.

Other nations, such as Denmark, which tax fossil fuel energy at high rates, have preferred to emphasise energy efficiency to reduce consumption and cut carbon emissions.

A document to be debated today (3 December) by energy ministers from the 27 member states calls on the Commission to present "non-binding guidance on the further improvement of national support schemes".

"Well-targeted and cost-efficient and effective post-2020 support may be needed, which does not cause inefficiencies in cross-border trade of electricity," the draft document, seen by Reuters, also stated.

"There is also a need for the rationalisation and the phasing out of environmentally or economically harmful subsidies, including fossil fuels," it said.

The European Union's three main green energy goals to cut carbon emissions by 20%, increase the share of renewables in the energy mix by 20% and increase energy savings by 20% expire in 2020.

Debate on 2030 targets is underway, with commissioners throwing their weight behind new targets for renewables and carbon cutting in principle, without saying how ambitious they should be.

So far, there has been little mention in public from the policy-makers of an energy savings goal for 2030 after a protracted battle to try to implement the 2020 efficiency target.

Renewable energy campaigners say they are relieved the post-2020 debate has begun and decisions are needed soon to help provide investor certainty.

They want high levels of ambition as global warming gathers speed and non-binding EU road maps state the need for a reduction of between 80% and 95% in carbon emissions by 2050 to limit temperature rise.

The European Renewable Energy Council, the umbrella organisation for European green energy, has called for a goal of drawing 45% of EU energy from renewable sources by 2030.   

EurActiv.com with Reuters

COMMENTS

  • Could someone please point me in the direction of an EU publication( backed by peer reviewed science) which shows:
    a) that the proposed reduction in EU carbon emissions (80 to 95%) will limit temperature rise.By how much ?
    b) How this will take effect given that the EU accounts for an ever dwindling percentage of global carbon emissions.
    c) how this reduction in emissions will be achieved.What renewables are envisaged ?
    d) the cost of this reduction in emissions..

    Clearly before any further policy steps/targets towards increased renewables and carbon cutting are introduced which will impact in a major way on all our lives, such back up material must be produced by the EU. The full implications must then be openly debated by EU citizens in line with the Aarhus Convention. Or are we going to continue to have further unjustified targets foisted on us by vested interests in Brussels ?.

    By :
    James
    - Posted on :
    03/12/2012
  • To James:

    Ambitious targets for renewable energy are rarely "foisted on us by vested interests in Brussels"; the really big vested interests (fossil fuels, nuclear) are usually busy fighting those targets. True, things may be a bit different for biofuels.

    In the 2020s, the extra cost of renewable generation will decline and often be cheaper than new fossil fuel or new nuclear generation by then. Eventually renewable energy will be cheaper than fossil energy - and cleaner as a side-effect. But of course this demands investments. Also, we will only know the exact damage from excessive carbon emissions if we stick to fossil energy long enough to make the big catastrophes come true.

    Joseph

    By :
    Volkmar Lauber
    - Posted on :
    03/12/2012
  • The post-2020 debate is indeed very important. A White Paper recently published by the ‘Future of Rural Energy in Europe’ (FREE)’ initiative notes the importance of renewable energies in European rural areas. Their benefits are manifold: reductions in CO2 emissions, creation of new jobs, increase in security of supply, and diversification of sources of revenues in the area. Clarity and consistency in support schemes is needed for the post-2020 period and some general principles could be applied. As noted by the OECD in a new report on ‘Linking Renewable Energy to Rural Development’, it is important to “avoid imposing types of renewable energies on areas that are not suited to them. (…) More care is needed to identify those [appropriate] places rather than adopting policies that somewhat arbitrarily spread renewable energy projects across national landscapes.” Another principle worth considering is to cross-check the impact of renewable energies on other environmental considerations, such as air quality.
    For example, encouraging biomass use in rural areas has been linked with significant increases in PM and NOx emissions in some Member States. Should the Commission decide to eventually introduce sustainability criteria for biomass, these criteria should acknowledge the high NOx and PM emissions caused by the combustion of biomass. These criteria could come with NOx and PM emissions limits or with new financing help to apply state-of-the-art technologies to develop biomass in the most sustainable conditions.
    One of the ideas which the FREE initiative is putting forward for further stakeholder discussions in its ‘White Paper’ is a 60/40 energy mix target for heat production in rural areas (60% renewables, 40% gas) by 2050. A 60/40 energy mix would mean that the share of renewable energies in heat production would quadruple in rural areas, while LPG and LNG would substitute for more polluting fuels such as coal and heating oil, which are still dominating today’s rural energy mix.
    For further reference, please consult the FREE White Paper, which is available here: http://www.rural-energy.eu/uploads/documents/freewhitepaper.pdf

    By :
    Future of Rural Energy in Europe (FREE) initiative
    - Posted on :
    03/12/2012
  • Thanks for info on "Future of Rural Energy in Europe". I look forward to reading this publication. Given that the key reason for public and official planning opposition to wind farms, on land and near shore, is visual impact, I trust that FREE addresses this issue as a major environmental consideration. To date, impact of wind farms on European landscapes and coastlines,clearly an issue of central concern to EU citizens, has been given scant recognition by the EU Commission. Indeed EU officials seem hell bent on overriding and ignoring these legitimate public concerns. A vast amount of reports, literature , and lobby groups have been funded by the EU at huge public expense, promoting wind energy both on and offshore. Could anyone point me to EU funded research or indeed ANY EU initiative which acknowledges, addresses and gives appropriate weight to EU citizen's demonstrated concern regarding landscape issues ?.

    By :
    James
    - Posted on :
    03/12/2012

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