Ambitious EU Energy and Climate Targets 2030 essential for the Transition to a Low Carbon Economy:
SRU special report available in english
(WK-intern) – EU Energy and Climate Targets 2030 essential for the Transition to a Low Carbon Economy The SRU Special Report on “Shaping the Electricity Market of the Future” is now available in English.
This report is a contribution to the debate on long-term transitions towards a low carbon economy.
It highlights the interdependence between the German energy transition and European climate and energy policies. So far, the German energy transition was in line with the triple energy and climate targets for 2020 and with the long-term low carbon economy agenda. However, the overcautious targets suggested by the Commission in its recent Climate and Energy Package may endanger a stable and continuous transition beyond 2020.
The report insists that a consistent electricity market transition requires a high CO2-price and national leeway in the policy design for renewables promotion within the European context. This will not be possible without a renewed EU climate and energy agenda, also giving due attention to the growth of renewable energy sources and to energy efficiency.
In particular, the failure of the EU ETS to create effective incentives for innovation has contributed to the paradox in Germany that high renewable shares coincide with increased shares of coal in the electricity market. A revitalization of emission trading hence is needed, but will not be possible without a climate target considerably beyond a 40% reduction.
The report assesses the potentials and limitations of the current electricity market design in a system with very high renewables shares. It concludes that the energy-only-market needs to be strengthened but that in the long rund, additional measures will be needed to finance renewable backup capacity and seasonal storage. On the basis of this long-term analysis the SRU develops specific recommendations for a smooth transition, enabling the continued growth of renewable energy shares as well a stronger role for market signals.
PR: SRU website: http://www.umweltrat.de
German Advisory Council for the Environment Chair – EEAC Energy Working Group