Energy Union: What is in it for climate and energy governance? Leonardo ZANNIER A.1: Energy Policy Coordination DG ENERGY European Commission

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1 Energy Union: What is in it for climate and energy governance? Leonardo ZANNIER A.1: Energy Policy Coordination DG ENERGY European Commission Source: Directorate-General for Energy

2 Energy Union 2

3 The Energy Union «I want to reform and reorganise Europe s energy policy in a new European Energy Union. «Jean Claude Juncker Energy Union Strategy Source: Directorate-General for Energy 3

4 Agreed headline targets EU Council 2030 Framework for Climate and Energy % Greenhouse Gas Emissions 20% Renewable Energy 20 % Energy Efficiency 10 % Interconnection % Greenhouse Gas Emissions 27 % Renewable Energy 27%* Energy Efficiency 15 % Interconnection * To be reviewed by 2020, having in mind an EU level of 30% New governance system + indicators 4

5 Five mutually supportive and interlinked dimensions Source: Directorate-General for Energy

6 5 State of the Energy Union (18 Nov) Energy Union Tour/ 28 Country Factsheets For each of the 5 dimensions: assessing what has been accomplished since the launch of the Energy Union Strategy in February 2015 For each of the 5 dimensions: focusing on concrete actions that need political focus in 2016, centered on 4 political messages... EU leadership in transition to a low-carbon economy (should continue also after COP21) Low-carbon transition should be socially fair and consumer-centered Geopolitical challenges will not go away in 2016 Importance of the governance system of the Energy Union

7 Implications for the EU of the COP21 INDC reflects the 2030 framework and the 40% GHG target for 2030 is in line with the ambition of Paris Agreement; The early ratification and entry into force of the Paris Agreement is crucial to give legal certainty; Implementing the 2030 framework is a priority in follow up to the Paris Agreement (legislative proposals to be fasttracked); Catalysing multi-stakeholder action from civil society is a prerequisite for the low-carbon transition (integrated and global Covenant of Mayors). Source: Directorate-General for Energy

8 Governance 8 Source: Directorate-General for Energy

9 Energy Union Governance Reliable and Transparent Governance System The Energy Union needs an integrated governance and monitoring process to make sure that energy-related actions at European, regional, national and local level all contribute to the Energy Union's objectives. Guidance on National Energy and Climate Plans (2015) Launches the process of national planning Explains the main steps from now until 2018 Clarifies the roles of the MS and COM 9

10 Energy Union Governance Streamlining of Planning, Reporting and Monitoring obligations MS: Today: 20 planning obligations 90 reporting obligations COM: 70 monitoring obligations MS: Post 2020: 1 national energy and climate plan 1 periodic progress report COM: 1 annual State of the Energy Union 10

11 Principles and scope of National Plans Principles: Holistic approach addressing all five dimensions of the Energy Union Preserve specific elements of existing plans where appropriate and build upon existing national strategies Integrate national energy and climate objectives and policies Scope: Objectives and policies until % GHG: Effort Sharing Decision 27% Energy Efficiency 27 % Renewable Energy 15 % Interconnection Greater coherence and cooperation among MS s energy and climate policies Long term predictability and investor certainty Long-term perspective until 2050

12 Content of National Plans a) Current Situation Overview of national energy systems Assessment of current energy and climate policies Overview of key issues of crossborder relevance Current Situation Administrative structure of implementing energy and climate policies 12

13 Content of National Plans b) Objectives, Policies and Measures for 5 Dimensions Energy security, solidarity and trust A fully integrated internal energy market Energy efficiency Decarbonisation of the economy Research, innovation and competitiveness Medium/longterm objectives for SoS Diversification, infrastructure Storage, demand response, alternative domestic sources SoS plans complying with gas regulation IGAs Measures to achieve 15% interconnection target PCIs Market competition, integration and coupling Smart technologies and grids Implications for prices and market integration Policies and measures supporting EUlevel EE target Trajectories for energy savings (energy consumption) National building renovation and EE investment strategies Measures to meet the annual binding emission limits for non-ets Support for EU-level RES target Trajectories for RES share in energy consumption Transport Contribution to European energy R&I approach (SET Plan) R&I in RES, EE, etc. Industrial policies strategies Competitivenes s of the energy system 13

14 Content of National Plans c) Integrated Projections and Indicators Projections Indicators For period and beyond To be presented timely to allow EU-level aggregation and assessment Reference and Policy Scenarios Biannual progress reports on implementation of national plans Current trends and existing policies at EU and national level Implementation of envisaged national objectives for 5 dimensions Commission Providing data and analysis (first half of 2016) Commission Indicators report as part of the State of the Energy Union 14

15 Regional Cooperation on National Plans What? Coordination and cooperation of MS in developing their energy policies and preparing national plans (regional consultations and review) Why? To address the regions challenges in the most secure and cost-effective way To asses the impact of national energy policies on neighbouring MS and ways of strengthening regional cooperation To increase long-term predictability and investment certainty Which areas? All five dimensions Development of new energy resources and infrastructures How? Existing and new fora Commission s guidance on regional cooperation (2016) 15

16 Process and timeline MS Integrated methodological tools Start national consultations and regional coordination Provide integrated projections Finalise national political process Submit draft national plans COM recommendations and MS reviews Submission of final national plans COM EU Reference Scenario Template for national plans Guidance on regional cooperation Legislative proposals (ESD, RES, EE, market design, governance) Technical support and facilitation of regional consultations Organisation of MS review of plans Recommendations to MS 4 th State of the Energy Union including first aggregate assessment of plans 16

17 Reports on implementation of the Plans and Updates ( ) MS COM Biannual progress reports on implementation of national plans (from 2020) Annual State of the Energy Union Update of national plans (once in the period ) MS

18 Nov 2015 TTE Council recognizes importance of the governance system Core features: Holistic National Plans identifying national contributions to EU 2030 targets Standardised templates A biennial review cycle starting with the first Progress Report, followed by an iterative dialogue with the Commission Guidance on regional cooperation List of indicators and a methodology 18 Source: Directorate-General for Energy

19 Legislative initiative 2016 Energy Union Governance Core features: A transparent and streamlined monitoring system on the implementation of national plans Template for integrated National Energy and Climate Plans (2021 to 2030) Iterative process. Annual State of the Energy Union to assess collective progress National efforts to be complemented by further EU measures in view of target achievement 19 Source: Directorate-General for Energy

20 Thank Our core values excellence, transparency, integrity 20 Source: Directorate-General for Energy