A paradigm shift in policy making – EU long term strategy for climate and energy transition COHESION POLICY POST-2020 AND SUSTAINABILITY TRANSITIONS 19th of October 2018
Philipp Offenberg Analyst, Sustainable Development, EPSC, European Commission
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#EnergyUnion 2
Getting started: The Juncker Commission's ten priorities I want to reform and reorganise Europe’s energy policy into a new European Energy Union. (…) We need to strengthen the share of renewable energies on our continent. This is not only a matter of a responsible climate change policy. It is, at the same time, an industrial policy imperative if we still want to have affordable energy at our disposal in the medium term. I strongly believe in the potential of green growth. I therefore want Europe’s Energy Union to become the world number one in renewable energies. (…) Jean-Claude Juncker, A New Start for Europe: My Agenda for Jobs, Growth, Fairness and Democratic Change – Political Guidelines for the next European Commission, 22 October 2014 A binding 30% objective for energy efficiency by 2030 is to me the minimum if we want to be credible. Transport policy will also have to make a contribution to these objectives. Jean-Claude Juncker, Mission Letter to Maroš Šefčovič, Vice-President for the Energy Union, 1 November 2014
The Project Team approach
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A new way of designing policy packages
Political Communication:
Explaining in simple terms why we act, what we aim to achieve, and how this can be realised • Communication Chapeau • Communication Strategy
(single narrative, fact sheets, follow-ups)
• Citizens Dialogue and Energy Union Tour
Enabling Framework:
A wider range of measures and initiatives that complement the core regulatory framework • EU investment strategy • Social dimension • Spill-overs and second-order
effects
Regulatory Framework:
Bundling different legislative instruments and proposals in a coherent and mutually reinforcing way • Tangible targets • Sectoral legislative
instruments • Regulatory measures
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On the road to 2030: Clean Energy for all Europeans
Regulatory Framework
Global leadership in renewables: 32% by 2030
Delivering a fair deal for consumers: NOW
Putting energy efficiency first : 32.5% by 2030
The Enabling Framework
Smart Finance for Smart Buildings
Initiative for Carbon intensive regions
Investments: At least 40% of the European Fund for Strategic Investments (EFSI) will support projects with components that contribute to climate action
40%
New Electricity
Market Design
Energy Union
Governance
Three priorities
Key energy infrastructure projects
Sustainable Finance Action Plan
Europe is on the move: transforming the mobility system
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A Renewed Industrial Strategy for a Sustainable Europe
HOW? BATTERY ACTION PLAN
The European Commission supports efforts of the European industry, Member States and the European Investment Bank, to establish a competitive manufacturing chain, capture sizeable markets and boost jobs, growth and investment across Europe.
Project team approach Industry-led comprehensive workstream
with more than 120 European (and non-European) stakeholders representing the whole value chain
Dialogue with EU Member States
Securing the supply of raw materials Supporting projects covering different
segments of the battery value chain, including cell manufacturing
Research and innovation to support a competitive batteries value chain
Making Europe the global leader in safe and sustainable battery technology
Developing and strenghtening a skilled workforce
Creating and enforcing an enabling and regulatory framework that is supportive of battery demand
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Transforming policies into industrial initiatives with a value chain approach for instance on batteries
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Facilitating the necessary investments in the transition
A Sustainable Finance Action Plan addressing Capital markets throughout the finance value chain
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Leaving no one behind in the transition to a clean economy: the European Pillar of Social Rights, Skills Agenda, and regional policies
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Making climate action a Jobs and Growth agenda by supporting local value chains
Source: International Renewable Energy Agency
Smart specialisation strategies for Europe's regions
Creating local jobs Distribution of human resources for the development
of a 50MW wind farm
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The legacy of the October 2014 European Council has been delivered
CUT GREENHOUSE GAS EMISSIONS BY AT LEAST 40%
INCREASE THE SHARE OF RENEWABLES
IN THE ENERGY MIX TO AT LEAST 27%
IMPROVE ENERGY EFFICIENCY BY AT LEAST 27%
(Compared to the "Business-as-usual" scenario)
(Compared to 1990)
2020
2030
ETS REFORM
EFFORT SHARING DECISION
2020 INTERCONNECTION TARGET 10% IMPLEMENT CRITICAL PROJECTS OF COMMON INTEREST IN
THE GAS SECTOR
On Track On Track
Target set
Target set to 32%
Target set to 32.5%
Implemented
Implemented
Tabled
ENERGY UNION GOVERNANCE
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For the medium term: At least 25% of the proposed future EU budget contributing to climate objectives
Snapshot: The Connecting Europe Facility
Preparing for the long term
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"The Paris Agreement is a key element for the modernisation of the European industry and economy." European Council Conclusions, June 2017
The European Council calls the European Commission to prepare a European vision steering a comprehensive strategy based on strong analysis
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Paris Agreement - Article 2 (a) : Holding the increase in the global average temperature to well below 2°C above pre-industrial levels and pursuing efforts to limit the temperature increase to 1.5°C above pre-industrial levels, recognizing that this would significantly reduce the risks and impacts of climate change;
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Our vision is
A Europe that protects the planet • The planetary boundaries: net zero emissions by 2050 and Sustainable
Development Goals by 2030
A Europe that defends its people • No one left behind in the transition: all citizens, workers, and regions on board
A Europe that empowers its economy • New clean technologies and business models stimulating competiveness,
jobs, growth and investments
How to integrate the different sustainability transitions in a coherent way ?
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Source: OECD Skills Outlook 2013, OECD
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Truck drivers on strike in France
How to address the skills challenge ?
Industrial Union in the Mining, Chemical and Energy Industry protesting against the "social
blackout for entire regions" in Germany
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Managing restructuring of regions is a matter of European cohesion
Source: European Commission, Joint Research Centre
Potential job losses in coal regions Unemployment rates are falling but differ substantially across Europe (in %, Feb. 2017)
Source: European Commission
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How to organise global adjustment ?
Source: European Commission
Job creation is essentially in the services sector Employment per sector in EU-27, in millions % change 2005-2016
Clean Energy Wire, 11 May 2017
From pilots to mainstream policies: How scale up the enabling framework for the transition ?
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Thank you for your attention Philipp Offenberg Analyst, Sustainable Development, EPSC, European Commission @phil_offenberg
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