The European Climate Foundation (ECF) has released a new report, From Roadmaps to Reality, which shows how the current EU energy framework can be improved to drive the decarbonisation of the power sector in Europe.
From Roadmaps To Reality, the latest report in the ECF’s “Roadmap 2050” series, finds that a fully integrated Internal Energy Market in combination with a functioning Emissions Trading System is the most cost-effective and sustainable pathway to decarbonisation, and is best fit to reap the cost savings potential of up to €70bn per year towards 2030 – as calculated in a previous ECF report, Power Perspectives 2030, and in a recent report from Booz & Co for the European Commission.
However, “policymakers need to take bold action to turn this vision into reality, by driving physical interconnections, activating the demand side, regionalising system operation and steering investments from high to low carbon assets”, says ECF. “In the meantime, well-designed market interventions to support renewable technologies, energy efficiency and resource adequacy can be allowed.”
According to ECF, “the challenge for EU policy is to capture the benefits of increased market integration while allowing careful use of market interventions.”
The report was written by a consortium of authors, made up of policy and market experts at RAP and E3G, legal experts at ClientEarth and the European Climate Foundation. They consulted with a large group of utility and energy companies, technology manufacturers, transmission system operators and NGOs to look at various policy, legal and governance solutions on the route towards an adequate framework to power sector decarbonisation.
The report concludes that EU governments should work towards a stronger EU energy framework that aligns market liberalisation and decarbonisation objectives and defines clear governance structures – including on a regional level.
Speaking at the report’s launch event, Arne Mogren, Director at the European Climate Foundation, said: “The timeframe between now and 2015 provides a unique window of opportunity to establish a more integrated and strengthened common EU strategy on climate and energy”.
The full report can be read at www.roadmap2050.eu/project/roadmap-to-reality.