But while Bush’s statements are not living up to the commitments already made by a large number of US states, within the EU the situation seems to be the opposite. The first discussions about the Energy Package signal that EU Member States are largely opposed to strengthening renewable energy policies with binding targets. Will that be a threat to European industries?

Let’s have a closer look at the difference between ‘binding’ and ‘indicative’ targets.

At first sight, the difference may not be so large. Indicative or not, governments have to implement legislation. Even if the EU targets are only indicative, national governments may implement national binding legislation. See what the UK did with renewable energy. Although not forced by a binding target from Brussels, the UK government imposes a long term renewable obligation on the electricity industry.

Of course the willingness of Member States to implement binding national legislation will be larger if targets are binding and fines are higher. See for instance the status of the EU Emissions Trading Scheme. Infringement procedures cause a lot of public discussions in national newspapers and political arenas, but that also happens if a country does not meet its indicative target. Nevertheless, if the sanctions are right, a government might be throwing away a lot of money paying a fine.

In the case of indicative targets, countries will be able to make their own choices when translating EU legislation into national law. If the European Council does finally decide that national targets will only be indicative, the European internal market for renewables will again be frustrated. Some countries will take the indicative targets seriously, but others will not.

Again, no harmonised strategy will be followed across the EU. No doubt, the renewable industry is strong enough to survive, or even profit from a differentiation in strategies between Member States – as it flourishes now in the absence of binding targets. But there is no doubt that  the industry would be greatly stimulated by one uniform EU strategy on renewables.

We may hope that EU Energy Ministers will acknowledge this during their EU Council discussions in three weeks time.

Rolf de Vos

Editor in chief