In June 2014, the European Union committed to moving towards an Energy Union in order to provide secure energy for all EU countries, affordable energy for companies and citizens and make Europe a global leader in renewable energy. The next few weeks will see plans for the Energy Union take shape with the first senior meeting taking place in Riga, Latvia, today.
Having a fully functioning internal energy market that delivers secure, competitive and sustainable energy to EU companies and consumers is vital for the economic growth of the EU. It will also help the EU to reach its climate goals, including the 40 per cent reduction in the EU’s domestic greenhouse gas emissions by 2030.
The EU must continue to demonstrate leadership to help reach a global climate agreement at the United Nations Climate Change Conference due to be held in Paris in December 2015 that delivers fair and ambitious commitments from all countries, keeping the 2oC target in reach.
It is essential that the Energy Union strengthens the EU’s energy security
Meeting these goals is critical and can best be done by promoting not only renewable energy but also other low and lower carbon sources of energy. The Energy Union should allow for EU member states to choose their own energy mix including nuclear power, fossil fuels with carbon capture and storage and lower carbon sources such as shale gas.
It is essential that the Energy Union strengthens the EU’s energy security. We have seen in recent years how non-EU countries have used, or threatened to use, their position as an energy supplier to exert political pressure on the EU.
We need to ensure that this does not happen in the future by putting in place greater transparency around energy agreements and, where appropriate, helping member states in their negotiation of gas and other contracts. By improving the energy infrastructure and maximising supply diversity (including development of LNG terminals and exploitation of all available energy sources) we can help minimise the chances that the EU will again suffer damaging energy shortages.
The Energy Union should support regional approaches where there are particular regional challenges, or opportunities or where acting regionally can pilot new approaches on a smaller scale.
The European Commission has an important role to play in enforcing existing EU legislation to ensure the opening of energy markets to competition and external sources to deliver a functioning market.
The Energy Union can help improve energy efficiency, for example on energy performance standards and labelling for energy using products. It is important though that this is done without over-prescriptive legislation and that the Energy Union allows EU member states to determine best how to promote energy efficiency within their countries.
Finally, the EU must increase its effort on low carbon innovation in order to meet 2030 climate objectives cost-effectively plus make progress towards its goal of reducing emissions by 80-95 per cent by 2050. Innovation in this area can reduce energy generation costs and cut energy demands.
This is a hugely ambitious project. But, done correctly, it will set the EU’s energy policy for the foreseeable future and bring long term benefits to both businesses and citizens.
Rob Luke is British High Commissioner for Malta.