The European Commission, in preparing a new proposal on an EU energy efficiency target, has adopted somewhat more realistic assumptions than it did last time around, writes Brook Riley of Friends of the Earth Europe. But according to Riley, voices inside the Commission still seem to want to torpedo more ambitious efforts: they are aiming for a simple least-cost scenario, without regard for the many benefits of energy efficiency. “That’s daft!” … [Read more...]
Leading by example? Impacts of a domestic French carbon price floor
If enacted, France’s plan for a domestic carbon price floor will lower CO2 emissions and increase power prices in France, but it will only have a marginal impact on total EU CO2 emissions and European carbon prices, write Hæge Fjellheim, Yan Qin and Emil Dimantchev, senior analysts at Thomson Reuters. They surmise that for the French government the plan is a way to lead by example. It will also bring in extra government revenues and improve the … [Read more...]
Brexit likely to lead to higher not lower UK energy prices
If the UK electorate votes to leave the EU on 23rd June, will British households then face higher or lower energy bills? Nobody knows for sure, writes Stephen Tindale, Director of the Alvin Weinberg Foundation: it would depend on decisions taken by a post-Brexit government and the impact of a Leave victory on British politics. But according to Tindale claims from Brexiteers that leaving the UK would lead to lower energy prices are misleading. The … [Read more...]
Interview Joan MacNaughton, World Energy Council: “Policy is key – you can’t allow a free for all”
Focused, well-designed energy policy in a robust regulatory environment is key to achieve energy security, sustainability and affordability. That’s the major conclusion from the 2016 World Energy Trilemma report of the World Energy Council, presented at the Clean Energy Ministerial in San Francisco on 1 June. According to Joan MacNaughton, Executive Chair of the study, “it’s still hard for most countries to balance all three aspects of the energy … [Read more...]
Nord Stream 2: Trust in Europe
The prospect of building the Nord Stream 2 pipeline between Russia and Germany is dividing the EU into two camps. By following geopolitical considerations, both sides are neglecting the concept of a liberalized natural gas market and are overlooking Europe’s favorable position in current international gas trade, writes Severin Fischer, Senior Researcher in the Global Security Team at the Center for Security Studies (CCS), ETH ZĂĽrich. … [Read more...]
The fight over the EU’s nuclear ambitions – and what it means for European energy research
A leaked “strategy paper” in the German media has thrown  up fresh questions over what Europe intends to spend its innovation budget on. In the paper the European Commission and member states set out broad goals for the nuclear industry, including developing small modular reactors. Nuclear opponents reacted furiously. In her new Brussels Insider column, for the Energy Post Weekly premium newsletter, Sonja van Renssen investigates the fight over … [Read more...]
European researchers: include consumers in the EU Emission Trading Scheme
The EU Emission Trading Scheme should not only be applied to industrial producers of CO2, but also to their consumers, proposes Karsten Neuhoff, Head of the Climate Policy Department at the German Institute for Economic Research (DIW Berlin). This would provide sufficient incentives to all market players to reduce their emissions and would do a lot to clarify the structure of free allowance allocation, providing long-term certainty for … [Read more...]
A bipartisan US climate policy – crazy? Here is what it could look like
In the middle of one of the United States’ most contentious elections seasons in living memory, talk of a bipartisan climate policy may seem like an esoteric idea. Climate action appears to cause particularly deep divisions between the Republican and Democratic parties. The presumptive Republican presidential nominee, Donald Trump, refuses to even acknowledge the problem of anthropogenic climate change, while Democratic candidates Hillary Clinton … [Read more...]
Time for Europe to stop supporting Ukraine’s risky nuclear power sector
Three decades after Chernobyl, nuclear power remains a mainstay of Ukrainian energy supply, writes Iryna Holovko, campaigner of NGO CEE Bankwatch Network in Ukraine. Despite persistent safety problems, the Ukrainian government has approved lifetime extensions for four of its 15 nuclear units since 2010, and two more could be greenlighted later this year. What is more, Holovko adds, Ukraine’s nuclear sector survives in part thanks to European … [Read more...]
Out of reach without nuclear and shale
Contrary to what some politicians are arguing, US emission reduction goals for 2025 cannot be achieved without nuclear power and shale gas, argues Geoffrey Styles, Managing Director of independent US-based consultancy GSW Strategy Group. Recent official revisions from the Environmental Protection Agency  (EPA) on estimated methane leaks from gas production and use do not negate the benefits of gas in recducing  emssions, he adds.  … [Read more...]
Has China’s coal use peaked? Here’s how to read the tea leaves
As the largest emitter of carbon dioxide in the world, how much coal China is burning is of global interest, writes Valerie J. Karplus of the MIT Sloan School of Management. According to Karplus, an expert on Chinese energy, China's reported leveling off of coal use may be both real and sustainable. Nevertheless, there is one scenario in which coal use could easily go back up again: high oil and natural gas prices. In addition, it is likely that … [Read more...]
Capacity mechanisms: DG Competition and DG Energy clash over future of EU energy market
EU member states are setting up capacity mechanisms that may be unnecessary, expensive and badly designed. This is the conclusion of the European Commission's Competition Directorate in the interim report of its first ever “sector enquiry” into capacity mechanisms as a form of state aid for electricity producers. But the report shows that DG Competition has a different view than DG Energy about the future of the EU's energy market design, writes … [Read more...]
To end windfall profits EU should limit free allocation of CO2 allowances to industry
EU member states intend to continue giving European manufacturers free CO2 allowances, even though this will hand them windfall profits, and will not motivate them to reduce CO2 emissions, writes Emil Dimantchev,  senior carbon market analyst at Thomson Reuters. Dimantchev calls on the European Commission to start a discussion with stakeholders and lawmakers from the European Parliament and member states to find a compromise ensuring that … [Read more...]
EPH’s takeover of Vattenfall’s lignite assets should ring alarm bells in Berlin and Stockholm
By taking over the German lignite assets of Vattenfall, Czech utility EPH shows it believes in the future of lignite in Germany. This raises questions for the German government about its climate policies - and for the Swedish government which has to decide on the deal, writes Julian Schwartzkopff, researcher at energy and climate think tank E3G. … [Read more...]
Phasing out fossil fuels for renewables may not be a straightforward swap
To have any chance of preventing dangerous climate change, the world needs to reduce greenhouse gas emissions to net zero or even negative by mid-century. Many experts suggest this means we need to completely phase out fossil fuels and replace them with renewable energy sources such as solar and wind. But according to Anthony James, lecturer with the National Centre for Sustainability, Swinburne University of Technology in Australia, new … [Read more...]
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