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EC warns €1 trillion needed for “competitive, sustainable and secure” energy system

The European Commission has released a Communication entitled "Energy 2020" defining the energy priorities for the next ten years. The report sends out a clear message to EU Member States: investments in the order of €1 trillion are needed over the next ten years, which would also show clear benefits to citizens, with average energy savings for a household amounting to €1,000 per year.

"The energy challenge is one of the greatest tests for us all. Putting our energy system onto a new, more sustainable and secure path may take time but ambitious decisions need to be taken now. To have an efficient, competitive and low-carbon economy we have to Europeanise our energy policy and focus on a few but pressing priorities," said Energy Commissioner, Günther Oettinger.

In the Communication adopted this week, the Commission identifies five top priorities to tackle the challenges of saving energy, achieving a market with competitive prices and secure supplies, boosting technological leadership, and effectively negotiate with our international partners.

On the basis of these priorities and the action presented, the Commission will come forward with concrete legislative initiatives and proposals within the next 18 months. This communication also sets the agenda for the discussion by Heads of States and Governments at the very first EU Summit on Energy on 4 February 2011.

Energy savings

The Commission proposes to focus its initiatives on the two sectors with the biggest energy saving potential: transport and buildings. To help house owners and local entities to finance renovation and energy saving measures, the Commission will propose investment incentives and innovative financial instruments by mid 2011. The public sector should take energy efficiency into consideration when buying works, services or products. In the industrial sector, energy efficiency certificates could be an incentive for companies to invest in technology which uses less energy.

Pan-European integrated energy market

The Commission sets a target date for completing the internal energy market. By 2015 no Member State should be isolated. Over the next ten years, overall energy infrastructure investments in the EU of €1 trillion are needed. To speed up essential EU strategic projects, the Commission proposes simplified and shorter building permits, setting a maximum time frame until final authorisation and EU funding. A "one-stop shop" should coordinate all the permit requests needed to realize a project.

One voice on energy in the world

It is proposed that the EU coordinates its energy policy vis-à-vis third countries, especially in its relation with key partners. Within the neighbourhood policy, the Commission proposes to extend and deepen the Energy Community Treaty to further integrate countries willing to participate in the EU’s energy market. A major cooperation with Africa is also announced, which aims at providing sustainable energy to all citizens of this continent.

European leadership

Four major projects in key areas for Europe's competitiveness will be launched, such as new technologies for intelligent networks and electricity storage, research on second-generation biofuels and the 'smart cities' partnership to promote energy savings in urban areas.

Consumer involvement

Finally, the Commission proposes new measures on price comparison, switching suppliers, clear and transparent billing to ensure consumers are empowered and play an active role in saving energy.

EU energy goals have been incorporated into the "Europe 2020 Strategy for smart, sustainable and inclusive growth", as adopted by the European Council in June 2010. In particular, the EU aims at achieving ambitious energy and climate-change objectives for 2020: reduce the greenhouse gas emissions by 20%, increase the share of renewable energy to 20% and make a 20% improvement in energy efficiency.

However, this latest Communication sends a very stark warning to EU Member States that without strong new policy initiatives the EU’s existing energy and climate strategy is currently unlikely to achieve the 2020 targets, and it is wholly inadequate to the longer term challenges concerning energy and climate-change objectives.

For additional information:

Energy 2020

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