March Infringement Package: The EU Commission sends Reasoned Opinions to 4 Countries on Energy Labelling and Renewables Legislation

The European Commission sent on 22 March 2012 reasons opinions - first stage in the infringement procedure before referring them to the Court - to four Member States for lacking transposition of EU legislation on support to renewable energy sources (Directive 2009/28/EC) and energy labelling (Directive 2010/30/EU).

The press releases are available below:

Renewable energy: Finnish, Greek and Polish legislation still not in line with EU rules 

Here the Commission comments that: "The timely transposition of EU legislation is a priority for the Commission, especially since unnecessary delays in implementing may jeopardize the achievement of the EU renewable energy objective. However, Finland, Greece, and Poland have not yet informed the Commission of the full transposition of the Directive into their national legislation."

Energy Labelling: Commission urges Czech Republic and Poland to adopt consumer-friendly legislation 

The Commission stated in that case that : "The EU legislation aims at giving these possibilities in all countries. Despite letters of formal notice sent on 18 July 2011, Czech Republic and Poland have not yet informed the Commission of the full transposition of the Directive into their national legislation."

EFTA Surveillance Authority Clears Support to Development Phase of Industrial CCS project at Mongstad (Norway)

EFTA Suveillance Authority (ESA) adopted on 15 March 2012 a decision not to raise objections under state aid rules concerning the financing by the Norwegian state of the development phase for the industrial carbon capture and storage (CCS) project in Mongstad.

Hereafter is a copy of the press release published by ESA:

"The Authority has already approved State aid to finance generic research in a small CCS facility at the Mongstad Test Centre. The Norwegian State will now finance technology and feasibility studies for an industrial scale CCS facility. These studies will be the basis for the decision on the financing of the construction and operation of the CCS facility, which the Norwegian Parliament (Stortinget) will take no later than 2016.

The aid for the development phase, which amounts to NOK 2.85 billion (EUR 375 million), is granted on the basis of an agreement between the State, Gassnova and Statoil. Under the terms of this contract, Statoil acts as a project executioner and will subcontract technology vendors and other suppliers in line with national and EEA procurement rules. The State will cover 100% of the costs incurred by Statoil in the course of the project execution. The aid to Statoil is well targeted to promotion of CCS while limiting possible distortions of competition and negative effects on trade.

The State will also cover the costs of Gassnova, which amounts to NOK 200 million (EUR 375 million). However, Gassnova will merely supervise the project execution without being involved in economic activities. The Authority has therefore taken the view that the funds allocated to Gassnova in the context of this project do not involve State Aid." (My underlying)

Publication of Updated Column on EU Low Carbon Economy Targets in Energi og Klima

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Takk til nettmagasinet Energi og Klima for å ha publisert mitt innlegg om EUs Miljøråd konklusjoner om Low Cabron Economy Roadmap: No Decision on New Low-Carbon targets: What to conclude from the non-conclusions on new targets and Poland's opposition?

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Thanks to the webmagazine Energi og Klima for publishing an updated version of my previous column on EU low-carbon economy targets. Available here: No Decision on New Low-Carbon targets: What to conclude from the non-conclusions on new targets and Poland's opposition? 

What to Conclude from the Non-Conclusions of the Environment Council on Low-Carbon Economy (9 March 2012)?

The Council of the European Union (EU) held an Environment Council on 9 March 2009, the first one under the Danish presidency. The Environment Council discussed energy, climate change and low-carbon economy, all issues that should be at the basis of a coherent energy policy for 2050. The EU is currently discussing and drafting the concrete measures that will implement the low carbon economy Roadmap 2050 and Energy Roadmap 2050. The Council was expected to adopt conclusions, i.e.  a political endorsement, on the roadmap for moving to a low-carbon economy, but the resulting text reflects the opposition from one Member State in particular and the scepticism towards new "targets".

The political debate concentrated around the opposition from Poland to endorse Commission's proposal to adopt further commitments as to the implementation of the low-carbon Roadmap. Poland's opposition to the adoption of any new measures was however expected, following declarations by Polish representatives. Poland's opposition materialised by its veto to the Commission's conclusions finds its justifications in the particular energy mix of the country, mainly relying on coal. Commissioner for Climate Action Connie Hedegaard characterised Poland's stance as "unfortunate" (see MEMO/12/178 from 10.03.2012). Poland representatives were in favour of a sole reduction target for 2050, while they defend that implementation measures should be left to the Member States in accordance with the subsidiarity principle. The Commissioner provided the following answer:

"Let's imagine that we said the same about the economic crisis, that the EU defined the economic target for 2050 but how to reach it and whether anything happened in the next 38 years would be an exclusive matter for individual member states. Everyone can see that this wouldn't work. This is also true when it comes to our climate policies. [...] The Commission's job is to take care of the common European interest. [...] This is what we will do. There are already a number of proposals from the Commission paving the way, e.g. the energy efficiency directive that the European Council wants to be adopted already in June and the Commission's budget proposal with an ambitious climate mainstreaming."

The Commission recalls in the adopted conclusions from the Environment Council that the purpose was to adopt "milestones" and not "targets". More in detail, the roadmap for moving to a competitive low-carbon economy in 2050 has for objective to establish a "sustainable and cost-effective trajectory to 2050", based on the realisation of milestones for domestic greenhouse gas emissions reductions of: 40% by 2030; 60% by 2040; and 80% by 2050 compared to 1990. As reported by EuropeanVoice, Poland considers that these milestomes "would not allow each country to move at its own pace and decide its own energy mix." 

This is the second time Poland blocks the adoption of implementation measures for the Commission's roadmap, after the refusal of a 25% target reduction of GHG emissions by 2020 in June 2011. The matter is now referred to the European Council, the June Environment Council or the next EU Presidency (Cyprus).

The European Parliament will adopt a resolution on the roadmap next week, which should include reference to the set-aside of emissions allowances under the EU emissions trading scheme as a tool for support the cabron market and influence the carbon price.

I previously underlined on this blog that the EU energy policy was entering an "implementation phase". Many targets, binding or indicative, have been adopted and efforts must concentrate on implementation. This will still be the case in the coming years. In parallel, it is necessary to discuss long-term objectives, which is the purpose of the 2050 Roadmaps. Under this debate, we are clearly under a "negotiating phase" for post-2020 measures, illustrating by Friday's Environmental Council (lack of) conclusions. There is also a crucial need for coherence between the different objectives to be reached concomitantly, i.e. GHG emissions reductions, low-carbon economy, renewables, energy efficiency, security of supply, competitiveness, social policy. Here, it's "reflection time" for the Commission in a 2050 timeframe.

References: Council of the European Union, press release, Doc.7478/12, 9.3.2012.

Picture credits: Environmental Council, Meeting Room General View, Council of the European Union, 9.3.2012.

The EU Assesses Compliance with EU Environment Measures

The European Commission published on 7 March 2012 a new assessment of the implementation of EU environmental measures in the Member States.

References: Communication, European Commission, "Improving the delivery of benefits from EU environmental measures: building confidence through better knowledge and responsiveness". 07.03.2012, COM(2012) 95 final.

"Vi bygger Norge": Olje- og Energidepartement Legger fram Nettmelding

Olje- og Energidepartement la fram 2. mars 2012 sin nettmelding under tittelen "Vi bygger Norge - om utbygging av strømnettet" (Stortingsmelding 14 (2011-2012).