An Update on the EU's Energy Union Project

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1 An Update on the EU's Energy Union Project European Power Summit Amsterdam, April Dr Pierre Dechamps Policy Officer, Climate Action Directorate General for Research and Innovation Neither the European Commission, nor any person acting on behalf of the Commission is responsible for the use which might be made of the information contained in this presentation. The views expressed here are those of the author and do not necessarily reflect those of the European Commission.

2 Reduction in 2013: -19.8% Share In 2014: 16%

3 A yearly decarbonisation rate of 3% per year (CO2/GDP)

4

5 >= 27 %

6 2030 Framework Possible Key Indicators issues to watch in the governance system

7 The Paris COP21 Agreement Main points A Starting point a new bottom-up approach instead of top-down, initiated at COP in Durban INDCs Intended Nationally Determined Contributions A strong political signal 2 C with a view to 1.5 C emissions peaking as soon as possible but no date net zero anthropogenic emissions after 2050 calling for 2050 national strategies by 2020 revision of the INDCs every 5 years from BUT no "actions" from a supranational direction dangers of ratification 100b$ weak no progress on carbon market A progressive disconnect between political intentions and the "real world"?

8 The Paris COP21 Agreement Consequences for the EU The 40% GHG objective of the 2030 package is the core of our INDC The ambition of Paris is a call to revise, upwards in 2018 for the 2020 climate meeting But position remain very distant between the Member States The 2050 roadmap needs revision Zero emissions post 2050 call for CCS, CCUS, geoengineering (?) From an research and innovation point of view EURICS (Energy Union Research Innovation and Competitiveness) Communication the end of this year Decarbonisation Initiative Contribution to the IPCC 1.5 C special report

9 What we are up to is a fast transition from this situation: GHG emission intensity vs. per capita, major economies, Baseline

10 To this, if we want to stay on the 2 C trajectory: GHG emission intensity vs. per capita, major economies, Global mitigation scenario

11 Roadmap for a Competitive Low Carbon Economy 2050 COM(2011)112 Reduction of energy sector emissions by 85% by 2050 Energy costs rising to 2030, coming down thereafter 5 scenarios - high efficiency - diversified supply technologies - high RES - delayed CCS (not commercial by 2030) - no nuclear RES more than 50% of supply in all scenarios!!! It is feasible, and in many different ways!!!

12 A Sectorial Approach * 2020 package Policies in place in early 2011 * 2030 package

13 Energy Union Developments in 2016 February Revision of the security of gas supply regulation LNG and storage strategy Heating and cooling strategy March Assessment of the outcome of COP21 Summer Autumn Revision of the effort sharing decision Land use, land use change and forestry (LULUCF) Transport decarbonisation strategy Report on energy prices and costs 2016

14 Energy Union Developments in 2016 November Second State of the Energy Union Proposal for the governance Proposals for the electricity market design Revision of the security of electricity supply Directive Renewables Package (RES Dir revision and bioenergy sustainability) Energy Union Research Innovation and Competitiveness Strategy 15% electricity interconnection target Waste to energy Communication

15 Climate change in Horizon2020 The EU framework programme for research and innovation The EU is committed to spend at least 35% of the overall 80 billion Euro budget of Horizon 2020 for Climate-related research and innovation actions This includes: physical and social sciences, climate services, energy and transport innovation, earth observation, sustainable food production and water management, etc. 15

16 Mitigating and Adapting to climate change Climate action in Horizon 2020 is challenge-driven and solution-oriented, with focus on: Developing climate services in Europe and worldwide, also including actions to help the climate services market grow Designing realistic and cost-effective decarbonisation pathways planned budget of 30m for Addressing critical climate change hot-spots like the Arctic

17 In Conclusion The EU energy policies are based on the three interdependent pillars: security of supply, competitiveness and sustainability; The EU has equipped itself back in 2008/9 with a coherent energy and climate package to face those challenges, with clear objectives for 2020; We are now extending this approach, learning from the past, to 2030, in order to provide visibility to the actors, with the Energy Union; Beyond this, a real holistic / systemic / societal approach is required. The objective is clear : deep decarbonisation by 2050, fully consistent with the 2 C objective, and it is a R&I topic by nature

18 THANK YOU FOR YOUR ATTENTION Dr Pierre Dechamps Neither the European Commission, nor any person acting on behalf of the Commission is responsible for the use which might be made of the information contained in this presentation. The views expressed here are those of the authors and do not necessarily reflect those of the European Commission.

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