EU DIRECTIVE ON THE PROMOTION AND USE OF ENERGY FROM RENEWABLE SOURCES

Today’s lifestyles and our industrial economies are responsible for an increasing demand for energy. However, fluctuating oil and gas prices linked to uncertainty about their supply gives us reason to be concerned about the future of our fossil fuel energy supplies. The recent crisis in the Ukraine has also shown that these fossil fuel supplies can be easily disrupted. We are also aware because of climate change it is no longer possible for us to take for granted that our future energy needs will be provided for by a fossil fuel dominated energy sector.

The European Union has, in recent years, taken the lead in reducing our dependency on fossil fuels by achieving a commitment from Member States to increase their use of renewable energy. We need to diversify our energy sources by increasing our investment in renewable energy and, at the same time, improving our energy efficiency and developing new technologies to ensure a secure and sustainable energy supply.

Although the European Union is recognised as the world leader in the use of renewable energy, this development has been uneven throughout its Member States. Our energy sector is still dominated by the use of coal, gas and oil. The European Parliament and the Council of Ministers have, therefore, adopted a Directive which will establish a framework for the promotion of renewable energy sources and set binding targets on Member States to achieve a 20% share by renewables in overall energy consumption by 2020. The main sectors affected by this Directive are electricity, heating and cooling and transport. It will be up to each Member State to decide the mix of contributions from these energy sectors to reach their national renewables target.

It will, however, be mandatory for each Member State to ensure that the share of renewable energy from all forms of transport by 2020 is 10% of total consumption. This target has been set at the same level for each Member State to ensure consistency in transport fuel specifications. The Directive sets out stringent criteria to ensure that biofuels which are to be used to achieve this target are sustainable and whose production does not cause environmental damage. The Commission will report every 2 years on the impact within Member States and other countries supplying biofuels on its effect on the availability of foodstuffs at affordable prices and land usage.

Currently it is estimated that the EU renewable energy industry has a turnover of Euros 30 billion and provides approximately 350,000 jobs. It is predicted that by 2016
market revenues for renewable energy systems will

 

increase to Euros 150 billion. The implementation of this Directive will stimulate economic and employment opportunities in new industry sectors ranging from high tech energy component manufacture to energy system installation and maintenance work to biomass and biofuel production.

The benefits of renewable energy in reducing the impact of climate change are undeniable. If this EU Directive achieves its targets then it is estimated it will mean annual savings of 600 to 900 million tonnes of CO2 emissions and a reduction in fossil fuel consumption of 200 to 300 million tonnes. Fossil fuel causes environmental damage at every stage on its road to consumers, from extraction, production and transportation. The pollution it creates concerns not just CO2 emissions but also nitrogen oxide, sulphur dioxide and a range of particulates. They are detrimental to our health and the environment. So-called “clean” renewable energy use will not result in the removal of all these pollutants but they will be greatly minimised.

Renewable energy systems currently in use are not without flaws however. Different forms of renewable energy are at different stages of technological and commercial development. There are technological weaknesses and environmental and aesthetic concerns which need to be fully addressed. European Member States will need to carry out an audit of costs, carbon usage and environmental impact of their existing renewable energies to assess whether they can contribute effectively to the 20% national renewables target.

An important advantage of this renewables programme will be to provide us with a more sustainable and secure energy supply. Our dependence upon oil and gas supplies from Russia and the Middle East should reduce and we should, therefore, be protected to a greater extent from fluctuations in the market price. As renewable energy will be largely produced in the European Union, we will be less subject to supply disruptions. A diverse energy supply is a more secure energy supply.

This Directive on renewable energy forms an essential part of the climate change energy package along with directives on the Emissions Trading System (ETS), cars emissions, burden sharing between Member States, energy efficiency in buildings and carbon capture and storage (CCS) plants. All are linked to 2020 targets for EU Member States. The overall package represents an extremely ambitious, pace-setting approach to tackling climate change as we set out on the long road to a low carbon economy by 2050. Finally I have to point out that Europe has a good record in setting tough targets but consistently failing to achieve them. Still, it is better to try than regret doing nothing.