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...]
âGreen Deal Industrial Planâ explainer: 40%+ of the top low-carbon technologies must be made in the EU by 2030
The ECâs new series of proposed targets and reforms, contained in its Green Deal Industrial Plan, aim to ensure that at least 40% of the EUâs low-carbon technologies will be made within its borders by 2030. The eight âstrategic net-zero technologiesâ 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 itâs 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 âhydrogen … [Read more...]
EC Consultation: ESG ratings need regulation to fix inconsistencies and bias
There are multiple problems with ESG ratings and thatâs 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 companyâs impact on the planet and society, it can be overrated or underrated due to the aggregation of Environmental, Social … [Read more...]
Europeâs 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...]
âOptions to Reform the EU ETSâ: coping with price volatility and speculation (event summary)
Sara Stefanini provides a written summary of our panel discussion held on 31st March 2022, âOptions to Reform the EU ETSâ. Itâs 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. Russiaâs invasion of Ukraine has exposed Europeâs energy security vulnerabilities like nothing else could have. It also means Europeâs clean energy transition will need an overhaul, and a newly designed optimal pathway created, and fast. Wojciech DÄ browski, 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 Russiaâs 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 Germanyâs â and the EUâs â 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 âgreenâ is a gift to Putin
Many of todayâs 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 Europeâs commitment to the energy transition. But entirely the wrong signal was sent over the New Year, says Todts. He describes the European Commissionâs 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 ACERâs 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...]
COP26: a strategy for tackling âimported deforestationâ
Palm oil, beef, cocoa, coffee, soy, and other agricultural products are responsible for deforestation in the producing countries. Of the 10m hectares of tropical forest lost each year, two-thirds can be unambiguously attributed to agricultural expansion and international trade is responsible for about half of this. The EC is due in December to unveil a legislative proposal to address the issue. Alain Karsenty and Nicolas Picard, writing for IFRI, … [Read more...]
CBAM needs universal adoption of methods for measuring carbon intensity
Europe needs to account for the emissions of imported goods. That cannot happen without the international agreement on standards and certification systems for the carbon intensity of all steps in the value chain for all relevant products. Dolf Gielen and Francisco Boshell at IRENA and Massamba Thioye at the UNFCCC explain that several such systems exist around the world, but they need to be harmonised and widely adopted to truly reflect what is … [Read more...]
‘Fit for 55’ should prioritise decarbonisation of laggards: buildings, transport, industry, agriculture
Todayâs long-awaited "Fit for 55" legislative package from the European Commission will trigger intense and difficult negotiations that will last two years, says Nicolas Berghmans at IDDRI. Its scope is wide and inevitably interconnected. The twelve legislative proposals include adjustments to existing measures (renewable energy, energy efficiency, carbon market/EU ETS, energy taxation, climate effort sharing between Member States/ESR, land use … [Read more...]
