At a press conference in Brussels on 10 January, European Commission president Barroso, together with Commissioners Piebalgs (Energy) and Dimas (Environment) presented the outline of the Energy Package, consisting of some twelve reports about different elements in energy. The package covers the European energy market, energy security, renewable energy, energy efficiency, clean fossil fuels and nuclear energy. The plans still have to be approved by the European Council (on 8 and 9 March) and the European Parliament. After approval the Commission can start to draw up a package of legislation, implementing the policies with Directives and other legislation.

According to Commissioner Stavros Dimas, a 30% reduction in greenhouse gas emissions is necessary by 2020 to keep the average global temperature increase within 2 degrees Celsius. “Beyond that level, climate change will have irreversible consequences”, Dimas explains. “To have a 50% chance to meet the 2° target, the world’s emissions have to peak before 2025 and then decrease again. For developed countries the objective is 60 to 80% emissions reduction in 2050, and 30% in 2020.” Dimas is also convinced that the richer countries can not take action alone, but also developing countries must contribute to cuts in the climate deal. “A new international agreement is required.”

The 30% emissions target is the highest end of the range of 15 to 30%, which the Spring 2005 Environment Council proposed ‘to be explored’. Even without such an international agreement, the European Commission wants to commit Member States to a unilateral 20% reduction of greenhouse gas emissions. Most of the efforts must come from decarbonisation of the energy supply, responsible for 80% of the emissions.. The Commission wants to send a message to the international community and also thinks that the European economy will profit from energy innovation. During the press conference, the Commissioners frequently pointed to the recent review of the economics of climate change by Nicholas Stern. The Stern Review claims that investments in measures to mitigate climate change are much cheaper than the costs of potential damage caused by climate change if no action is taken. “I am convinced that an investment of 1€ now will prevent an investment of 2€ tomorrow,” Energy Commissioner Andris Piebalgs said.

Energy efficiency, renewable energy and clean fossil fuels (with carbon sequestration) are the most important measures to be taken in the next few decades. Already in October the Commission presented an energy efficiency action plan. The plans regarding renewable energy and carbon sequestration were released as part of the 10 January package and are discussed in articles in this newsletter.