European Council sets ‘flexible’ 2030 EU energy and emission targets

40% cut for greenhouse gas emissions; renewables and energy efficiency industries remain vexed

The European Council has set an overall emissions target for the European Union of a reduction of 40% greenhouse gas emissions on 1990 levels by 2030, as well as a ‘binding’ 27% target for renewables; and a non-binding 27% target for saving energy.

As well as being less catchy than the EU’s 2020 ’20:20:20’ targets (which Europe is on course to achieve – see page XX), the targets are also not as strict. The renewables target is binding at EU-level, but there are no binding Member State level renewables targets, and there is a clause in the document that allows the Council to return to the targets after the December 2015 Paris UN climate change summit, should a legally binding outcome not be achieved in Paris.

The energy efficiency target has also been scaled back from the European Commission’s original recommendation of a goal of 30% savings on 1990 levels.

In addition, a ‘stability reserve’ has been drawn into the European Emissions Trading Scheme (ETS) – the mechanism which will do the bulk of the work in reducing emissions. The reserve is designed to adjust the supply of emission permits as and when needed, to avoid surplus allowances that have dogged the scheme since its inception. There will also be a tightening on the cap of the ETS, stipulating lower emissions across the EU after 2020.

Member States reacted differently to the outcome. The UK was happy with the ‘ambitious’ targets, having campaigned against a binding renewables target and arguing for a technology-neutral overall emissions reduction target. Poland opposed the 40% greenhouse gas reduction target. It and other Eastern European States received enhanced financial concessions as part of the deal, which will be partly funded by revenues from European carbon allowances.

A fourth point…..   A target for interconnection had been discussed, and Spain and Portugal, which struggle with access to the wider European electricity market, had been calling for a binding target for Member States to make 15% of their national generation capacity available to other EU States. A formal target was not agreed.

The reaction to the targets from industry and environmental groups was largely one of disappointment.

The energy efficiency industry was also disappointed. Knauf Insulation called the targets the ‘lost opportunity of a generation’. The renewables industry reacted in a similar fashion, with Thomas Becker, Chief Executive Officer of the European Wind Energy Association, saying: ‘The 27% target is disappointing and is contrary to the incoming Commission’s plans to make Europe the world leader in renewables. The EU urgently needs to put in place a legal and regulatory framework for renewable energy for the post-2020 period.’

Mark Kenber, CEO of The Climate Group, said: ‘40% is still not enough to put the EU on a path to net zero emissions by mid-century and kick start the transformational change we need. 40% must be seen as a floor which opens the door to increased ambition.’