On June 30th, EU Member States have to submit the final revision of their updated National Energy and Climate Plans (NECPs) to the European Commission. NECPs specify their climate and energy targets and trajectories up to 2030, with an outlook to 2040 and the longer term. NECPs must also feature the policies and measures planned to achieve these targets, as well as their funding needs and sources. But, as Federico Mascolo at CAN Europe explains, … [Read more...]
REPowerEU gas reduction is exceeding targets. But that means the same 2025 target can see gas rise again
The REPowerEU policy has done well so far in its aim of ending Europe’s dependency on Russian fossil fuels by 2027. The target of 15% reduction in gas use, compared to the average consumption between April 2017 and March 2022, was exceeded in both 2023 and 2024. The Commission has again set the same 15% target for the coming year. However, by doing so the very many EU countries that have succeeded so well in exceeding that target are effectively … [Read more...]
After the EU elections: what should be Europe’s energy and climate priorities for 2024-29?
After June’s European Parliament elections the new Commission will be tasked with setting the agenda for EU energy and climate policy. What should its priorities be? Maciej Jakubik at Forum Energii summarises their paper that sets out six. Energy security, improving access to data and therefore planning, energy market reforms and grid development, protecting and supporting vulnerable citizens, establishing an Energy Transformation Fund, global … [Read more...]
EU: no CO2-emitting car sales from 2035. But beware of the small exemption for e-fuels
At the end of March, EU countries gave final approval to end sales of new CO2-emitting cars in 2035. It came after Germany argued for and won an exemption for cars running on e-fuels. William Todts at T&E celebrates the landmark decision, but warns that this lifeline for e-fuels will be used by its supporters and the oil lobby to obstruct the rapid transition to EVs. He quotes T&E research that shows e-fuels are far less efficient than … [Read more...]
‘Green Deal Industrial Plan’ explainer: 40%+ of the top low-carbon technologies must be made in the EU by 2030
The EC’s new series of proposed targets and reforms, contained in its Green Deal Industrial Plan, aim to ensure that at least 40% of the EU’s low-carbon technologies will be made within its borders by 2030. The eight “strategic net-zero technologies” are: Solar (power and thermal); Onshore and offshore wind; Batteries and energy storage; Heat pumps and geothermal; Electrolysers and fuel cells; Sustainable biogas/biomethane; CCS; Grid … [Read more...]
What is the future of Woody Biomass in the EU energy mix?
Simon Göss provides an overview of the main issues surrounding the intense policy debate over the future of biomass in the EU. The current proposals of the EU parliament still allow certain woody biomass to be used for all kinds of energy purposes but limits the share that primary woody biomass can contribute towards renewable energy targets. Included in the proposals is a new definition of primary woody biomass, and a phase-out of financial … [Read more...]
Heating Households and Buildings: Heat Pumps will be up to three times cheaper than Green Hydrogen
A new study concludes that heating from 100% green-hydrogen would be up to three times more expensive than one based on 100% electrification of buildings with heat pumps. Josh Gabbatiss at Carbon Brief summarises the findings, who says it’s yet more evidence to push back against the voices of politicians and fossil-fuel companies wanting to see hydrogen in the household and buildings heating mix (for example, the UK is planning a “hydrogen … [Read more...]
EC Consultation: ESG ratings need regulation to fix inconsistencies and bias
There are multiple problems with ESG ratings and that’s why they need to be properly regulated, says Hazel James Ilango at IEEFA. Different ratings agencies have different methodologies that are difficult to compare. They can lack transparency and be biased due to industry, geographical location or company size. As for a company’s impact on the planet and society, it can be overrated or underrated due to the aggregation of Environmental, Social … [Read more...]
Europe’s decoupling of electricity and gas prices: the crisis is temporary, so why do it?
The debate is intensifying over how to decouple power prices from the extraordinarily high natural gas prices in Europe. Simona Benedettini and Carlo Stagnaro warn that the current problem of high prices is not caused by the mis-functioning of electricity markets, but by the exceptional trend in gas prices. So should the markets be re-designed at all? Will we lose the benefits of the current design, one being the reliable profits that renewables … [Read more...]
“Options to Reform the EU ETS”: coping with price volatility and speculation (event summary)
Sara Stefanini provides a written summary of our panel discussion held on 31st March 2022, “Options to Reform the EU ETS”. It’s a full summary of the 90 minute discussion (with a link to the video), but it begins conveniently with a summary of the highlights, leading with the role of financial players, who they are, the causes of price volatility, what reforms can create stability, and the cost of decarbonisation. The main concern is speculation … [Read more...]
Russia-Ukraine crisis: reforming the EU ETS is a matter of energy security, says PGE
European leaders are now rushing to make decisions on how to drastically cut dependence on Russian fossil energy imports. Russia’s invasion of Ukraine has exposed Europe’s energy security vulnerabilities like nothing else could have. It also means Europe’s clean energy transition will need an overhaul, and a newly designed optimal pathway created, and fast. Wojciech Dąbrowski, President at PGE Polska Grupa Energetyczna, explains that it must also … [Read more...]
Germany suspends Nord Stream 2: Q&A on what happens next
Following Russia’s invasion of Ukraine, Germany has suspended the go-ahead of the switch-on of Nord Stream 2, the new pipeline for Russian gas imports. What does this mean for the pipeline and Germany’s – and the EU’s – energy strategy? With events moving so rapidly, the full picture cannot be clear. So Kerstine Appunn, Benjamin Wehrmann and Julian Wettengel at Clean Energy Wire raise the big questions and summarise the answers being given. Those … [Read more...]
EU Taxonomy: labelling Gas “green” is a gift to Putin
Many of today’s clean energy technologies were given their first boost in the wake of the 1973 oil crisis, explains William Todts at T&E. He now hopes the current confrontation between NATO and Russia over Ukraine will shake up and deepen Europe’s commitment to the energy transition. But entirely the wrong signal was sent over the New Year, says Todts. He describes the European Commission’s inclusion of gas in the EU Taxonomy for sustainable … [Read more...]
Intelligent, flexible Sector Coupling in cities can double the potential for Wind and Solar
This week the European Commission tabled the Energy Performance of Buildings Directive (EPBD) which should accelerate the decarbonisation of buildings. Buildings and cities play a key role in the energy transition. And the target high shares of variable renewable power supply will be much more easily achieved if the sectors using them display demand flexibility. In essence, that means using or storing the excess wind and solar generation … [Read more...]
Electricity Market Reform: ACER must empower consumers, not just network operators
ACER, the EU Agency for the Cooperation of Energy Regulators, has delivered to the EC its preliminary assessment of Europe's high energy prices and the current wholesale electricity market design. Simon Skillings and Lisa Fischer at E3G interpret ACER’s assessment as showing it wants to maintain the status quo. However, long-term changes in market design are inevitable. The authors want ACER to accept this reality and ensure the changes are … [Read more...]
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