Climate policy challenges

Climate policy challenges

• Climate policy challenges

• Where does the EU stand now?

• Roadmap 2050

• Global analysis
• EU analysis

• Next steps

The first extensive global and EU analysis on how the long term target can be reached:

• The first extensive global and EU analysis on how the long term target can be reached:

• identifies cost-effective pathway, with intermediate milestones,

• identifies key technologies guiding R&D,

• identifies investments needs and benefits,

• identifies opportunities and trade-offs,

• guides EU, national and regional policies,

• gives direction to private sector and private households for long term investments.

Energy efficiency is the single most important contribution by 2050

• Energy efficiency is the single most important contribution by 2050

• Also essential in the short term

• Climate and energy package: 20% GHG reduction, 20% renewables and 20% energy efficiency improvement
• Current policies only result in 10% energy efficiency improvement
• Roadmap confirms key role of efficiency up to 2020 and beyond
• Efforts towards 20% efficiency target would deliver 25% GHG reduction
• ETS is one instrument to deliver additional efficiency

Where will new jobs come from?

• Where will new jobs come from?

• Short term: e.g. in renovation of buildings, production of insulation materials, renewables industry
• Potential net job creation up to 1.5 million by 2020
• Use auctioning revenues from EU emissions trading system and tax revenues for reduction of labour costs and increase in investments and R&D
• Long term job prospects depend on favourable economic framework conditions, e.g. expenditure on research & technology development, innovation, entrepreneurship, new skills, investment

All competitors develop their own low carbon strategies, e.g.

• All competitors develop their own low carbon strategies, e.g.

• US:

• 1 million electric cars on road by 2015
• 80% clean energy by 2035

• China:

• Two-year investment plan: +0.8% GDP on innovation, restructuring, energy conservation, emissions reductions and ecological improvement
• 12th 5-year plan (2011-2015): reducing emissions per unit of GDP by 17%, accelerating R&D and use of low-carbon technologies, low-carbon pilot projects

Ensure the achievement of 20% energy efficiency target by 2020, and in this context use the role of the emissions trading system

• Ensure the achievement of 20% energy efficiency target by 2020, and in this context use the role of the emissions trading system

• Give clarity for long term investments, especially in ETS sectors

• Define 2020 - 2030 policy framework
• Upward review of 1.74% linear reduction to be considered to achieve -80% GHG emissions by 2050
• Measures to protect vulnerable industries against carbon leakage in the case of fragmented action

Implement Strategic Energy Technology (SET) Plan (€ 50 billion from 2014-2020)

• Implement Strategic Energy Technology (SET) Plan (€ 50 billion from 2014-2020)

• Develop innovative financing instruments to use limited public finance to leverage private sector investments in the next EU budget, e.g. in cohesion policy

• Use CAP to contribute to further emission reductions and increased absorption of natural sinks, taking into account the increased demand for agricultural and forestry products including for bio-energy

Negotiation of EU Multi-annual Financial Framework and detailed legislation for individual spending programmes.

• Negotiation of EU Multi-annual Financial Framework and detailed legislation for individual spending programmes.

• Further Commission analysis of cost efficient and equitable mix of individual policy instruments and implications for individual Member States.

• Member States to develop long-term national and regional low emission development strategies.