WWF & the ‘Energy Policy for Europe’

Questions & Answers

Context and key dates for the discussion of the “Energy policy for Europe”

Following the recommendations of the European Council of (WHEN?), the European Commission presented on 10th January 2007 a set of measures “to establish a new Energy Policy for Europe to combat climate change and boost the EU's energy security and competitiveness”. The package includes guiding principles and targets to be achieved, but it does not include draft laws. The Energy and Environment Council will comment on it, but it will be up to the European Heads of State and Government – meeting in Brussels on 8-9 March – to make the final decision. Specific legislation should then follow.

Energy Council – 15 February 2007

Environment Council – 20 February 2007

European Council –8-9 March 2007

What is the general WWF evaluation of the Energy Policy for Europe proposed by the European Commission?

WWF welcomes the general approach taken by the European Commission to address a joint and comprehensive energy and climate policy. It is a step in the right direction that EU Member States, facilitated by the German Presidency, should take forward and improve.

The Head of Government’s Spring Council decisions are only the start to implement the measures on Europe’s way into a low-carbon and sustainable energy future.

To which extent the EU should commit to reduce its greenhouse gas emissions in order to effectively help fighting climate change?

In order to stay below 2 degree global warming compared to pre-industrial temperatures – the stated objective by the European governments – atmospheric science states that this translates into an overall greenhouse gas emissions reduction need of about 30% in all developed nations by 2020; and by about 80% by mid century based on 1990 emissions levels. Global emissions need to fall by about half by 2050. Those numbers include already a full reversal of all tropical deforestation and its associated emissions as well as a strong decarbonisation of energy supply in rapidly developing nations. However, as developed nations, including Europe, still have an up to five times higher per capita emissions and a much higher capacity to react and invest application of equity and fairness must allow poorer nations to industrialise to combat poverty.

Failing to adopt a significant target to reduce its own greenhouse gas emissions, the European Union will not be able to fulfil its engagement and will give up its global responsibility as the largest industrialised trading bloc in the world. Once its credibility notched, who will lead international negotiations to limit global warming?

Is 30% greenhouse gas reduction by 2020 a realistic target for the EU?

Yes. It is ambitious but this is not a matter of available technologies, but of political will.

How can it be achieved?

As energy from fossil fuels account for approx 80% of European emissions, decarbonising energy use and energy conservation/efficiency is key to reduce greenhouse gas emissions.

Although largely neglected, the easiest and cheapest way to reduce energy consumption consists in improving efficiency. Energy efficiency can be improved in all sectors, both for demand (residential, industrial, commercial and transport) and supply (power generation). With immediate measures – for example to promote use of more efficient appliances and cars, better insulation, as well as more efficient heating and cooling systems – it would be possible to reduce final energy consumption while not impeding on economic growth.

Therefore, WWF believes that the 20% energy saving potential mentioned in the EU Energy Efficiency Action Plan and in the Commission package should become a mandatory target. In the run of 2007 the EU should identify and agree on a set of new measures and policies to underline the target with real action such as in the transport sector as well as strengthen existing legislation (Directives on Buildings, Energy End Use of Products, Energy Services).

In addition, the EU should commit to an EU-wide legally- binding target in the order of 20-25% of energy coming from renewable sources – wind, biomass solar, geothermal – by 2020. In the run of 2007 this overall target needs to be broken down into national and sectoral targets (heating/coling, electricity) in addition to the biofuel target (in case this is being agreed already in the Council) because these sectors differ fundamentally from each other, have different potentials and investment requirements. Electricity, for example, where renewable energy penetration is most easy, should have a binding target of about 35% renewables by 2020.

WWF has shown that wind power, mainly new offshore wind energy and solid biomass from woody resources mainly for highly efficient combined heat and power (CHP) but also in separate applications have the highest potentials of all renewables in EU in next decades. Liquid biofuels both domestic and imported ones need to undergo binding certification to demonstrate reduced carbon footprint and no harmful impact on biodiversity.

What will be the impact of the measures WWF is suggesting on the economy and competitiveness of European industries?

Besides reducing carbon dioxide emissions, these measures will bring a range of economic benefits that will make Europe a safer place to live and do business. These include:

  • more security of supply and less dependency on foreign fossil energy sources
  • market stability because of reduced risk of energy shortages and price peaks
  • energy and money savings across all sectors – up to 100 bln EURO by 2020 annually from the energy savings target
  • reduction of health impacts and costs to society caused non-carbon pollution from fossil fuels
  • Net increase in jobs in the fields of energy efficiency and renewable sources of energy. The European Commission Green Paper on energy efficiency, published in March 2005, estimates that energy savings of 20 per cent by 2020 could generate up to one million jobs in the EU. Already today, renewable wind power in Germany, Spain and Denmark has created more than 120,000 new jobs in the last decade.

Shouldn’t the EU also help developing countries reducing greenhouse gas emissions?

Yes, this will have to come on top of CO2 emissions reduction within the EU. WWF believes that a strong EU target such as a 30% GHG cut by 2020 should be topped with a clear commitment to enlarge the global carbon market in and with developing countries via the Clean Development Mechanisms (CDM). Carbon credits bought from developing countries should comply with the highest environmental standards, the Gold Standard. Also, additional incentives are needed to invest in reducing tropical deforestation – a key prerequisite to stay below 2 degree global warming.

Does WWF believe that carbon capture and storage is the solution to dirty coal?

Carbon capture and storage (CCS) is a way to mitigating climate change by capturing and compressing carbon dioxide from large sources such as power plants and storing it away safely instead of releasing it into the atmosphere. The world’s emissions presently grow by 3% annually and less than 5% of all energy supply worldwide is based on clean renewable energy (wind, geothermal, solar, biomass but excluding large hydro and unsustainable biomass). Coal consumption is growing by double digit numbers each three years and sees a large revival for a variety of reasons. CCS therefore is just an emergency action, but probably a very vital one.

However, any policy to develop a sustainable energy system must be based on a strong priority for renewables and energy efficiency.

WWF believes that, following an immediate and thourough geological analysis of potential carbon storage sites, and after an uniform legislation including liability and monitoring provisions to ensure against any leakage, by 2015 all new fossil fuel power stations in Europe should have a very low CO2 emission standard. If they cannot comply with this one, they should be equipped with the most modern CCS technology – or direct their investments in renewables and energy efficiency to reduce demand. It is important to know as soon as possible if the storage technology works as about half of Europe’s power stations need to be replaced within the next 20 years or so.

The same CO2 emission standard should become true in EU for all existing fossil fuel power stations by 2020. If they cannot be retrofitted to this standard, they simply need to close down.

Also WWF urges the EU to extend CCS research into the coal-rich developing countries who presently industrialise very fast, such as China, India, South Africa.

WWF believes that there should be strong, ambitious and credible legislation by 2007 on early testing and implementation of CCS.

Nuclear energy?

WWF does not consider nuclear power as a solution. Nuclear power stations inhibit immense risks and are expensive. Any safe storage of waste has not been possible – so far nowhere in the world. Nuclear power does not contribute to peace, security and stability.

It needs 5 kg of Plutonium to build a nuclear bomb – stockpiled in the waste are about 230,000 kg. All in all there are about 270,000 tons of liquid waste fuels distributed all over the place, adding 12,000 tons per year – all highly radioactive for many decades of thousands of years.

WWF believes that nuclear power stations should be phased out.

Why is WWF in favour of theliberalisation of energy markets?

Liberalisation facilitates access of new players and new sources of energy in the market. Monopolies and oligopolies tend to keep new and innovative players – such as suppliers of renewable energy and combined heat and power (CHP) – out of the market. Liberalisation of the market needs a strict ownership unbundling of the grid and the production of power. Independent grid and load management will be beneficial to new clean power entering the market with fair conditions.

What is the legislation in place in the EU on energy efficiency and renewables?

  • The eco-design directive is the framework directive setting minimum standards for energy-using products, excluding transport. The directive entered into force in August 2005 and is in its implementation phase. In order to assess which requirements should be set for a particular product, preparatory studies for 14 product categoriesare undergoing. The aim of these studies is to provide the necessary information on the existing requirements and further potential savings that could be reached through a better/different product design. The real impact of the directive will depend on the standards adopted during the implementation.
  • The energy end-use efficiency and energy services directive sets a non-binding energy saving target of 1% per year for 9 years. The directive entered into force on 17 May 2006. Member states will have to submit a national Energy Efficiency Action Plan every 3 years, as of June 2007. In order to reach the potential, Member States should propose ambitious national energy efficiency plan.
  • The directive on energy performance of buildings applies to energy certification for all new buildings and existing buildings undergoing major renovation if larger than 1000m². As large part of the energy consumption in the building sector comes from old buildings often smaller than 1000m², the directive should be extended to all existing buildings.
  • The energy labelling directive applies only to freezers, refrigerators and washing machines. It is in force since 1992, so its standards needs to be revised and it should be extended to brown goods (TVs, VHS, Hi-Fis etc.),consumer electronics (mobile phones,i-pods,audio equipment, calculators, DVDs, Home theatre systems) and home office equipment.
  • ANY DIRECTIVE/REGULATION ON BIOFUELS? (ASK JP!)
  • ANYTHING ELSE? (YES!!! We have a renewable 2010 target, ask JP please to add a few lines)
  • Also cross-reference to EU ETS (our position paper ask Delia!) but make sure that EU ETS is NOT part of the Commission package (so is the Car Directive!)

Useful links

For further information:

Dr. Stephan Singer, Head of European Climate and Energy Unit at WWF, Tel. +32 (0)496 550709, Email .

Claudia Delpero, Communications Manager, WWF European Policy Office, Tel. +32 (0)2 7400925, Mobile +32 (0)497 406381, Email