Brussels urges renewable subsidy harmonisation, starts ball rolling for 2030 energy and emissions targets

Lack of long term certainty on energy policy direction is hindering member states from reaching their 2020 targets. Beyond that, the policy void risks creating a slump in renewable energy investment, the European Commission said today.

Brussels has put forward three options to prepare for 2030 targets: new goals for greenhouse gas (GHG) emissions but no new renewable energy goals; national targets for renewable energy, energy efficiency and GHG; or EU wide targets for all three elements.

The communique comes a day after SSE and a group of other energy companies urged the Commission to set a binding 2030 renewables target. The EU Emissions Trading Scheme alone would not be enough to drive renewables expansion, said the company (see this link).

The EU said that even to hit 2020 renewables targets, investment across the bloc would have to quickly double to €70bn a year. It is not yet clear what penalty member states may face for failing to hit those targets, nor whether failure may be the least expensive option.

Despite acknowledging that investment needs to double, the Commission called for keenly priced harmonious support schemes, i.e. similar subsidies in every member state. Brussels also urged more use of co-operation mechanisms to allow member states to meet national targets by trading renewable energy - even from outside Europe - which could be cheaper than local production.

Author: Paul Newton,
Channel: Markets & Trading
Tags: Energy Efficiency , Trading , Finance and Investment

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