European Economic Andsocial Committee

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European Economic andSocial Committee

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CONFERENCE

"Implementing the eu energy roadmap 2050: at what cost and at what speed?"

14may 2012, EESC

Report

Background

In its opinion on the energy roadmap 2050 the EESC supports the exercise in particular regarding the need for a common understanding of the key requirements for a transition to a low-carbon energy system and the need for increased coordination of the national energy policies to support the transition. The EESC agrees with the main policy options identified in the roadmap, especially energy efficiency (saving) and energy demand management; a much higher share of renewable energy in the EU's energy system; and better and smarter grids.

However these "no regret options" require a wider policy framework to achieve the transition, including a clear course for 2030, burden sharing and coordination mechanisms and active public engagement to convince civil society that the 2050 decarbonisation objective is attainable and that they share responsibility.

Defining and implementing a common vision of the low-carbon transition, whilst involving citizens is at the heart of the EESC's efforts in favour of the Europeanization of energy policy. The EESC therefore supports the progressive establishment of a European energy community and a European civil society forum on energy issues.

Against this backdrop the EESC contributed to the debate on the energy roadmap by looking at the impact of the low-carbon transition on civil society low-carbon from a twofold perspective:the optimisation ofthe cost-effectiveness of the implementation process and thespeed of this process.

Conclusions

Based on the discussions held at the conference, the European Economic and Social Committee notes the following:

1. Policy coordination at European, national and local levels and the move towards a truly common European energy policy are necessary

1. Certainty on EU policy course is essential to ensure predictability and spur the necessary investments to make decarbonisation a reality

1. Renewable energy support schemes should progressively converge at EU level and be brought in line with transition objectives, whereby investments should happen for competitiveness reasons and not because of subsidies

1. A fair and effective carbon price through the EU ETS and, if possible a global scheme, should be the preferred way to internalise climate change related costs and trigger investments/manage energy demand

1. Market coupling and integrated wholesale markets are essential to cost-effectively increase the share of renewable energy

1. Upgrading grids is the most efficient way to balance a power sector in transition

1. Interconnections at national and regional levels are essential to remove energy islands and enable the free flow of energy within the EU. Broader areas are more relevant in terms of infrastructure investments than national level only. Required investments increase when coordination is suboptimal

1. Costs must be fairly distributed (consumers should pay for effective benefits), transparent and justified

1. Stronger public engagement is key to explain energy challenges and promote acceptance. Behavioural change and citizens' involvement in energy (transition) issues are essentialfor the success of EU policy-making

1. For a successful transition to happen within the agreed timeframe societal, industrial political and institutional issues will need to be addressed to create the right framework

• The transition must and can happen
• Designing a common EU energy policy is necessary to focus efforts, increase efficiency and reduce costs
• Intermediate renewable energy or CO2 emissions targets for 2030 combined with an appropriate carbon price would help in terms of both costs and speed of the transition

• Broad public engagement on the energy transition will be necessary to strike the right balance between investment risk, social impact and expected outcomes, and spur awareness/behavioural change