Source: Directorate-General for Energy

Energy Union: What is in it for climate and

energy governance?

Leonardo ZANNIER A.1: Energy Policy Coordination

DG ENERGY European Commission

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Energy Union

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Source: Directorate-General for Energy

The Energy Union

Energy Union Strategy

I want to reform and reorganise Europe’s energy policy in a new European Energy Union.

Jean Claude Juncker

«

«

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Agreed headline targets - 2014 EU Council 2030 Framework for Climate and Energy

2020

2030

New governance system + indicators

-20 % Greenhouse

Gas Emissions

20% Renewable

Energy

20 % Energy

Efficiency

- 40 % Greenhouse Gas

Emissions

27 % Renewable

Energy

27%* Energy

Efficiency

10 % Interconnection

15 % Interconnection

* To be reviewed by 2020, having in mind an EU level of 30%

Source: Directorate-General for Energy

Five mutually supportive and interlinked dimensions

State of the Energy Union (18 Nov) • Energy Union Tour/ 28 Country Factsheets

• For each of the 5 dimensions: assessing what has been accomplished since the launch of the Energy Union Strategy in February 2015

• For each of the 5 dimensions: focusing on concrete actions that need political focus in 2016, centered on 4 political messages...

EU leadership in transition to a low-carbon economy

(should continue also after COP21)

Low-carbon transition should be socially fair and consumer-centered

Importance of the governance system of the

Energy Union

Geopolitical challenges will not go away in 2016

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Source: Directorate-General for Energy

• INDC reflects the 2030 framework and the 40% GHG target for 2030 is in line with the ambition of Paris Agreement;

• The early ratification and entry into force of the Paris Agreement is crucial to give legal certainty;

• Implementing the 2030 framework is a priority in follow up to the Paris Agreement (legislative proposals to be fast-tracked);

• Catalysing multi-stakeholder action from civil society is a prerequisite for the low-carbon transition (integrated and global Covenant of Mayors).

Implications for the EU of the COP21

Source: Directorate-General for Energy 8

Governance

Energy Union Governance Reliable and Transparent Governance System

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”The Energy Union needs an integrated governance and monitoring process to make sure that energy-related actions at European, regional, national and local level all contribute to the Energy Union's objectives.”

Guidance on National Energy and Climate Plans (2015)

Launches the

process of national planning

Explains the main

steps from now until

2018

Clarifies the roles of the MS and COM

Energy Union Governance Streamlining of Planning, Reporting and Monitoring

obligations

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Today:

MS:

20 planning obligations

90 reporting obligations

COM:

70 monitoring obligations

Post 2020:

MS:

1 national energy and climate plan

1 periodic progress report

COM:

1 annual State of the Energy Union

Long-term perspective until 2050

Objectives and policies until 2030

Principles and scope of National Plans

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Principles: Scope:

30 % GHG: Effort

Sharing Decision

27 % Renewable

Energy

27% Energy

Efficiency

15 % Interconnection

2021 -

2030

2030 -

2050

Holistic approach addressing all five dimensions of the Energy Union

Preserve specific elements of existing plans where appropriate and build upon existing national strategies

Integrate national energy and climate objectives and policies

Greater coherence and cooperation among MS’s energy and climate policies

Long term predictability and investor certainty

Content of National Plans a) Current Situation

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Current Situation

Overview of national energy systems

Assessment of current energy and climate policies

Overview of key issues of cross-border relevance

Administrative structure of implementing energy and climate policies

Content of National Plans b) Objectives, Policies and Measures for 5 Dimensions

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Energy security, solidarity and

trust

A fully integrated

internal energy market

Energy efficiency Decarbonisation of the economy

Research, innovation and

competitiveness

Medium/long-term objectives for SoS

Diversification, infrastructure

Storage, demand response, alternative domestic sources

SoS plans complying with gas regulation

IGAs

Measures to achieve 15% interconnection target

PCIs

Market competition, integration and coupling

Smart technologies and grids

Implications for prices and market integration

Policies and measures supporting EU-level EE target

Trajectories for energy savings (energy consumption)

National building renovation and EE investment strategies

Measures to meet the annual binding emission limits for non-ETS

Support for EU-level RES target

Trajectories for RES share in energy consumption

Transport

Contribution to European energy R&I approach (SET Plan)

R&I in RES, EE, etc.

Industrial policies strategies

Competitiveness of the energy system

Content of National Plans c) Integrated Projections and Indicators

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Projections

Reference and Policy Scenarios

Current trends and existing

policies at EU and national level

Implementation of envisaged

national objectives for 5

dimensions

Commission

Providing data and analysis (first half of 2016)

Indicators

Biannual progress reports on implementation of national plans

Commission

Indicators report as part of the State of the Energy Union

For period 2021-2030 and beyond To be presented timely to allow EU-level aggregation and assessment

Regional Cooperation on National Plans

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What?

Coordination and cooperation of MS in developing their energy policies and preparing national plans (regional consultations and review)

Why?

To address the regions’ challenges in the most secure and cost-effective way

To asses the impact of national energy policies on neighbouring MS and ways of strengthening regional cooperation

To increase long-term predictability and investment certainty

Which areas?

All five dimensions

Development of new energy resources and infrastructures

How?

Existing and new fora

Commission’s guidance on regional cooperation (2016)

Process and timeline

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COM

MS

2016 2017 2018

2016 2017 2018

Integrated methodological tools

Start national consultations and regional coordination

Provide integrated projections

Finalise national political process

Submit draft national plans

COM recom-mendations and MS reviews

Submission of final national plans

EU Reference Scenario

Template for national plans

Guidance on regional cooperation

Legislative proposals (ESD, RES, EE, market design, governance)

Technical support and facilitation of regional consultations

Organisation of MS review of plans

Recommendations to MS

4th State of the Energy Union including first aggregate assessment of plans

Reports on implementation of the Plans

and Updates (2021-2030)

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Biannual progress

reports on implementation

of national plans

(from 2020)

Annual State of the Energy

Union

Update of national plans (once in the period 2021-

2030)

MS

COM

MS

Source: Directorate-General for Energy

Nov 2015 – TTE Council recognizes importance of the governance system

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Core features:

• Holistic National Plans identifying national contributions to EU 2030 targets

• Standardised templates

• A biennial review cycle starting with the first Progress Report, followed by an iterative dialogue with the Commission

• Guidance on regional cooperation

• List of indicators and a methodology

Source: Directorate-General for Energy

Core features:

Legislative initiative 2016 – Energy Union Governance

• A transparent and streamlined monitoring system on the implementation of national plans

• Template for integrated National Energy and Climate Plans (2021 to 2030)

• Iterative process. Annual State of the Energy Union to assess collective progress

• National efforts to be complemented by further EU measures in view of target achievement

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Source: Directorate-General for Energy

#EnergyUnion

@Energy4Europe

Thank you! @LeonardoZannier

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