INDUSTRY NEWS
New Renewable Energy Directive: regaining EU global leadership
Material supplied by Jean-Baptiste Boucher, Head of Communications, European Biomass Association E-mail:
boucher@aebiom.org
A s the European
Commission rolled out a public consultation in the preparatory phase
of the new Renewable Energy directive (REDII) for the period 2020-2030, AEBIOM, in association with other EU renewable energy associations, seized the opportunity to push EU decision makers to make full use of their action capacity to reflect on COP21 ambitions. According to AEBIOM, the EU Commission should propose ambitious mechanisms to Member States and compel them to reach the minimum 27% renewables energy target by 2030 and even go beyond. Bioenergy and other RES technologies are well positioned to deliver on this!
In its Energy Union Framework Strategy, the Commission announced a new renewable energy package for the period post2020, including a new renewable energy directive (REDII) for the period 2020-2030 and an updated EU bioenergy sustainability policy. In its preparation, the European Commission launched a wide consultation on the new renewable energy directive (RED) that AEBIOM responded to. Such a review is always an opportunity to look back on achievements and apply lessons learnt.
So far, despite some cyclical and specific sectoral concerns, the first renewable energy directive (RED) allowed RES operators to organise and plan investments within a stable medium term regulatory framework. The RED, at the time pioneering, has encouraged Member States (MS) to support RES projects through financial incentives necessary to gain maturity and face competition from fossil fuels. This stability and support was a strong signal for economic operators
who answered the call en masse, allowing the European Union to achieve its general objective and exceed them in several Member States. On that basis, it is possible to say that the RED has been a success.
However, a political signal is not made to last over a decade, you need to revive it when its time comes. Indeed, investment in renewable energy assets in the EU dropped by 18% in 2015 reaching its lowest level since 2006*, and this is mainly due to an unstable policy framework, both at EU and national level. To date, when key industry players all over Europe are queried, two main concerns are raised: a lack of visibility after 2020 and the retroactivity of national support schemes. In this context, COP21 outcomes are a great opportunity for the EU to renew momentum.
Today, what RES market players need above all is a strong positive message and a real long term vision within the framework of this new renewable energy directive, as they are ready to deliver. With this in mind AEBIOM has thrown its weight behind an ambitious post-2020 renewable energy package that fosters a vibrant home market, with clear growth perspectives, and asserts the EU’s leadership in renewables in the face of rising international competition.
However, we think that the EU renewable energy sector can deliver more than the 27% 2030 target agreed by the Commission and Member States. We also regret that the EU target is not translated into national legally binding targets. Besides those key concerns AEBIOM is advocating for a pragmatic approach enabling reassurance for market players: Firstly, we should meet the 2020 objectives (20% RES). Secondly, we need to build on the existing RED and seek to improve it. Thirdly, the recent EU Heating and Cooling strategy is welcome, as the sector represents 50% of our final energy consumption. It could be decarbonized with RES H&C sources like biomass, and this should be taken into account in the new RED. The building sector plays an important role in this goal, the residential sector representing 45% of final H&C consumption. Minimum share of RES should be required for new buildings and long-term renovation strategies of existing buildings should be established at MS level to address the existing building stock. Finally, an important barrier to the deployment of RES today is the low fossil fuel prices and the continuous support to fossil fuels, which make competitiveness for RES more difficult to achieve, in particular in the H&C sector.
Fossil fuels subsidies should be phased-out urgently and carbon outside the ETS sectors should be priced, as is already done today in several Member States who have introduced a carbon tax. Overall, we need coherence, with long-term climate and energy objectives (i.e. 80-95% GHG emissions reduction by 2050) to avoid the risk of technology lock-in or stranded assets in fossil fuel infrastructure.
2016 will be a key year for the bioenergy sector politically speaking at EU level, as it will also see the development of an EU bioenergy sustainability policy as announced by the Commission. The Commission is currently consulting on this issue. AEBIOM will of course provide inputs. In this context, maybe more than ever, AEBIOM needs your support and feedback to ensure a sustainable development path for the bioenergy sector!
To find out more about AEBIOM’s response to the Commission consultation, please refer to the Association’s website:
www.aebiom.org/ aebiom-answers-to-the-public- consultation-preparation-of-a-new- renewable-energy-directive-for-the- period-after-2020/
*BNEF, Clean Energy Investment, 2016
AEBIOM
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