EU energy policy: time for honesty

The European Council has adopted an energy policy that highlights priorities for further debate.

One of the major criticisms leveled at the European Union is that elaborate proposals are made but, due to the competing interests of its members, they end up watered down. The recent European Council meeting held in mid-February is an apt example. A wide variety of energy proposals were reconfirmed, only to be put forward for further debate in the next council meeting.
The meeting reaffirmed the need to promote energy efficiency through renewable energy, to enhance the internal market for gas and electricity and to contribute towards European security of supply.

There is little wonder that the press greeted it with skepticism, reporting that efforts to introduce legally binding requirements would be rejected.

Take the goal for member states to achieve a target of a 20% share of renewable energies in overall EU energy consumption by 2020. So far, only a minority of states are set to achieve the 10% of the renewable energy directive set in 2001. With competing and incompatible national renewable energy policies, it is highly improbable and impractical that a 20% target will be achieved EU-wide come 2020.

Another stated objective is the importance of emissions trading in the EU’s long-term goal to reduce GHG emissions. The Emissions Trading System (ETS) is a market-based, cost-effective scheme to achieve a reduction in greenhouse gas emissions. Due to its failure to efficiently price carbon, however, there is currently no incentive to switch from coal.

Energy Business