Archived press release

EU to agree new energy deal

2 December 2008

The EU is expected to reach a compromise on a new energy deal tomorrow (Wednesday 3 December) which is set to transform the way we power our industry, heat our homes and fuel our vehicles.

The Renewable Energy Directive will require Europe to produce 20 per cent of its electricity and heat from renewable sources by 2020 - this will increase energy security and reduce climate changing emissions.

Andy Atkins, Friends of the Earth's executive director, said:

"With massive wind, wave, and tidal resources, Britain is well placed to reap the economic and environmental benefits of this exciting new European energy package."

"Developing green power could kick-start exciting business opportunities and create thousands of new jobs."

"But investor confidence will be seriously damaged if the EU doesn't drop plans for a review of the Renewable Energy Directive in 2014."

"The only area that would benefit from a rethink is the rush for biofuels - which are pushing up food prices and leading to more emissions, not less."

The Renewable Energy Directive is part of a package of EU measures to tackle climate change. The bloc is committed to a 20 per cent reduction in greenhouse gas emissions by 2020 - with a further 10 per cent reduction if a global climate deal is reached. Friends of the Earth believes that the richest nations should cut emissions by at least 40 per cent by 2020 to avoid catastrophic climate change.

Friends of the Earth welcomes the EU Renewable Energy Directive's aim of boosting solar, wind, wave and tidal power - but is urging the EU it to:

1. Scrap plans to require 10 per cent of road transport fuel to come from biofuels - which are pushing up food prices and causing deforestation.
2. Drop proposals for a wide-ranging review of the directive in 2014 - such a move could seriously damage investor confidence in green energy schemes.
3. Require new and refurbished buildings to include renewable energy systems - some nations are trying to remove this obligation from the final directive.
4. Include energy-use from the aviation sector in the directive - this rapidly growing source of carbon dioxide emissions must not be excluded from moves to tackle climate change.

Notes:

European heads of state originally agreed to ensure that 20 per cent of the EU's energy comes from renewable sources at the EU summit in 2007. Since then the proposals have been debated in the European Parliament and in negotiations with the European Commission and Energy Ministers. The outcome of these talks should become clear tomorrow (Wed 3 December). However, the compromise deal will still need to be officially approved by the European Parliament on the 17 December.

The UK's proposed renewable energy target by 2020 is 15 per cent, almost an eight-fold increase. However, a series of leaked documents over the last year have revealed that the UK has tried to wriggle out of its commitments. The UK Government has also come under fire from environmental campaigners for attempting to exclude the aviation sector from any targets.

Currently around seven per cent of EU energy comes from renewable sources such as wind, solar and hydroelectric energy. But this varies widely from country to country - the UK has around 2 per cent of renewable energy, whereas Sweden has around 40 per cent. Germany, which has had higher incentives in the form of a feed-in-tariff, generates 15 per cent of its electricity from renewable sources. Turnover in the German renewable industry is £20 billion and employment in the sector is 250,000, compared to a UK renewable energy sector that employs about 20,000 people.

The Renewable Energy Directive is one part of a wider EU Energy Package known as the 20/20/20 deal, which consists of four elements:

1. A commitment to reducing EU emissions by 20 per cent by 2020, or 30 per cent in the context of an international deal.
2. A commitment to sourcing 20 per cent of the EU's overall energy consumption from renewable energy sources by 2020
3. Negotiations on the rules governing the Emissions Trading Scheme after 2012
4. A framework for regulating Carbon Capture and Storage technology

Reviewing the directive

The EU is discussing a wide-ranging review of the Renewable Energy Directive in 2014. Friends of the Earth is concerned that a review would create a lack of certainty about EU commitments to green energy and thus damage investor confidence. Whilst it is appropriate for the use of biofuels to be reviewed (if it is still in the directive) given the widespread worries about unintended impacts on food prices and deforestation, a review of other elements of the Directive could seriously affect investment if the post-2014 framework remains unclear.

Biofuels

Finding enough land to grow 10 per cent of Europe's road transport fuel will lead to further displacement of food crops - which in turn leads to higher than anticipated emissions as more carbon-rich forests and grasslands are cleared for agriculture. At the moment the EU does not count the impact of these so-called 'indirect land use changes' in its figures for the carbon savings of biofuels. If it did the policy would be discredited, because research shows that biofuels actually create more emissions than they save by increasing demand for agricultural land. Friends of the Earth believes there are much better ways to reduce emissions from road transport and is calling for a new direction in transport policy - based on smarter cars that use less fuel and better public transport.

Renewables and buildings

A provision in the draft Directive would require Governments to set standards for renewable energy use in new and refurbished buildings, but the UK has been trying to eliminate this text on the grounds that we have other programmes in place. However the European Parliament believes that the provisions should in fact be strengthened since this sector could greatly contribute to renewable energy targets.

The electricity grid

Access to the electricity grid access is currently a problem for renewable developers in the UK, but the Department for Energy and Climate Change has told Friends of the Earth that it would support proposals in the EU Directive that would give renewable projects prompt connection.

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Published by Friends of the Earth Trust