PRESENTATION by
Michael STEURER
Warsaw, 15 October 2014
The 2030 Framework for Climate and Energy
Sustainable Development or Expensive Dreams?
EUROCHAMBRES’ NETWORK
EU: frontrunner on climate action
Kyoto 1997
Paris 2015
Kyoto II
Source: World Energy Outlook Special Report (2013)
Towards the 2030 framework
Development of Industrial Production
Euro area (total industry, excluding construction)
Source: European Central Bank (Eurostat data)
Energy intensive goods
Share of global export markets for energy-intensive industries
Source: OECD/IEA 2013
Development of Energy Prices
Electricity price for industrial consumers (€/kWh)
EU data: average retail price of industrial consumers (includes all sectors); Source: EUROSTAT
US data: average retail price of electricity price to industrial consumers; Source: EIA
Development of Energy Prices
Natural gas price for industrial consumers (€/Gigajoule)
EU data: average retail price of industrial consumers (includes all sectors); Source: EUROSTAT
US data: average retail price of industrial consumers; Source: EIA
EU ETS: Open questions
• Carbon prices will rise in the future:
€6
€ 30-40?
• Post 2020 protection measures for energy-intensive
industries are uncertain (free allocation?)
• Pending ETS reform (Market Stability Reserve and
revised linear reduction factor) reduces predictability
of future development
Practical example
Business emitting 11 million tons of CO2/year
Current situation:
CO2 price of € 5 + purchase of 1 m. certificates
► costs of € 5,000,000
Projections for 2030:
CO2 price of € 35 + purchase of 4 m. certificates
► costs of € 140,000,000
Costs are multiplied by a factor of 28!
Conclusions
• Targets need to be realistic and achievable
• Current plans of the Commission undermine the
growth potential of the EU and could lead to carbon
leakage
• Only if Europe’s economic power can be preserved,
our low-carbon strategy will also be attractive for other
economies
• The EU should remain a low-carbon technology
leader. This is only possible if the attractiveness of the
EU as industrial local can be maintained.
Recommendations for action
1. Set a realistic and conditional greenhouse gas
reduction target, with the level dependent on the
conclusion of a legally-binding international climate
change agreement in December 2015.
2. Avoid measures that undermine the market-based
characteristics of the EU Emissions Trading
Scheme (ETS).
3. Put in place more cost-effective support schemes
for renewable energies which should be temporary
and degressive, rather than guaranteed over a long
period of time.
Recommendations for action
4. Swiftly complete the internal energy market and provide
adequate infrastructure to strengthen security of
energy supply in the EU and to cope with the
increased uptake of renewables.
5. Pursue energy efficiency by ensuring the right
framework conditions and facilitating effective measures
to promote the use of energy management tools and
practices, while refraining from a separate energy
efficiency target for 2030.
6. Invite the new Commission to urgently bring forth
concrete proposals for boosting the reindustrialisation of Europe and stimulating investments
in the EU.
CONTACT DETAILS
Thank you for your attention !
Michael STEURER
Advisor, EU Affairs
Energy, Climate Change, Environment
Avenue des Arts 19 A-D
B - 1000 Brussels
Tel: +32 (0)2 282 08 77
Fax: +32 (0)2 230 00 38
steurer@eurochambres.eu
www.eurochambres.eu