bbc.co.uk Navigation

BBC News
Launch consoleThe News in 2 minutes
LANGUAGES
Last Updated: Wednesday, 10 January 2007, 10:46 GMT
Q&A;: EU energy proposals
The European Commission says climate change is the biggest challenge facing the world and the EU's top international priority.

German wind farm
The EU is keen to boost wind power and other renewables
It has published a number of policy papers calling for major reductions in the EU's greenhouse gas emissions in coming decades, and emphasising the importance of nuclear power, clean coal technology, renewable energy, biofuels and increased energy efficiency.

Plans to further open Europe's energy market were also unveiled on Wednesday. They include measures to loosen the control that energy producers have over transmission networks, in some countries.


How dangerous does the European Commission think climate change is?

The commission warns there is a more than 50% chance that global temperatures will rise this century by more than 5C and "urgent action is needed to limit climate change".

It predicts serious consequences for human health, and major economic costs arising from drought, floods, rising sea levels, acidification of the sea and reduced soil fertility in southern Europe.

What action does it propose?

It says the EU should cut its greenhouse gas emissions by at least 20% by 2020, and try to persuade other countries to follow suit.

The EU should cut the amount of carbon dioxide (CO2) it emits as a result of energy use by 60-80% by 2050, it says.

The commission also wants faster adoption of fuel-efficient vehicles, tougher and better labelling on appliances, better building insulation and more energy-efficient power generation and transmission.

It calls for strengthening and expanding the EU carbon trading scheme and proposes an increase of at least 50% in annual EU spending on energy research for the next seven years.

The commission has already put forward an action plan on energy efficiency to save the EU 20% of the energy it would otherwise be using by 2020.

Does the commission suggest reducing dependence on fossil fuels?

Energy Commissioner Andris Piebalgs said in September that by 2050 the EU would need to "source the clear majority of its energy use from carbon-free sources".

Andris Piebalgs
A Russian oil supply problem is the latest of Mr Piebalgs' worries
The EU is already aiming to produce at least 12% of electricity from renewable sources by 2010. Now it says it wants to raise that figure to 20% or more in the longer term.

The European Commission also argues that reducing nuclear power will make it hard to meet CO2 reduction targets, though it recognises that some countries object to nuclear power on principle.

Biofuels are recommended as the car fuel of the future.

However, the commission says it would not be in Europe's interests to stop burning coal, because this would increase dependence on imported energy (which is likely to account for two-thirds of the total by 2030 on current trends). It therefore calls for the use of clean coal technology and the capture and storage of CO2 from coal-fired plants.

What are the other main elements of the EU's energy strategy?

The three buzzwords are sustainability, competitiveness and security.

Climate change falls under the "sustainability" heading.

Under "competitiveness" come policies to ensure that Europe's economy remains competitive despite the extra costs of moving over, even partially, to low-carbon energy. The top priorities are to further liberalise Europe's internal energy market - in order to bring down prices - and to boost research on low-carbon technologies.

Under "security", the commission talks about reducing dependence on imported hydrocarbons, but also diversifying sources of energy, building infrastructure such as new liquefied natural gas terminals, and improving Europe's capacity to cope with disruptions in supply. The commission is seeking a new long-term pact with Russia on energy supplies.

Hasn't the EU spent 10 years trying to open up energy markets?

Yes, but results have been disappointing. One paper to be published on 10 January is reported to state that "meaningful competition does not exist in many member states".

The commission would now like to stop energy producers controlling the energy distribution system, which still occurs in some countries. Ideally, it would like to forcibly "unbundle" ownership of production and distribution. An alternative would be to strengthen the role of national regulators, or (without insisting on a change of ownership) to create independent transmission system operators.

Competition Commissioner Neelie Kroes has warned that inefficient and expensive energy firms will face legal action over their behaviour. She could use her existing powers to insist on the break-up of any company abusing its market position.

The commission has called for a new energy regulator to help complete the EU's internal energy market.

Since when has the EU taken such a big interest in energy?

The idea of a common energy policy was approved at a summit at Hampton Court, in London, in October 2005.

A Green Paper outlining a European energy strategy was published in March 2006. It called for an annual Strategic Energy Review, which is one of the documents published this week.

How soon will all this become law?

It is likely to take some time. These papers give a much more detailed account of the European Commission's vision of a future energy policy than the Green Paper, but they are not yet draft legislation. The ideas will be discussed at a summit of EU leaders in March, and laws could be drafted some time after that. Many of them would have to get the approval of EU member states (the EU's Council), and the European Parliament too. This often takes a couple of years, and the end result can differ considerably from the commission's initial proposal.




RELATED INTERNET LINKS
The BBC is not responsible for the content of external internet sites



PRODUCTS AND SERVICES

Americas Africa Europe Middle East South Asia Asia Pacific