European Parliament adopts proposals for green EU energy policy; looks at a 'biopact' with South

The European Parliament today announced it wants binding targets to reduce carbon dioxide emissions and urges an increase in the use of renewable energy sources, especially biomass and biofuels. These views are set out in a wide ranging report on the Commission's energy strategy proposals, adopted by a large majority on Thursday.

Interestingly, for the first time, the European Parliament explicitly recognises the importance biofuel production can play in the developing world (earlier, the British Parliament also looked at importing biofuels from the South - previous post). The European Parliament is thinking of setting out rules thay may eventually lead to a kind of 'biopact' with the developing world where biofuels can be produced competitively and in an environmentally friendly way (unlike biofuels produced in the North). Moreover, a biofuels industry stands to bring unique opportunities for social and economic development. The Parliament says it:

"is convinced that the sustainable production and use of biomass offers considerable advantages for developing countries and technology transfer with these thirds countries and (underlines that) the export of bioenergy technologies should be supported by the European Union".

It does however stress that sustainability criteria and certification instruments must be developed to ensure that this energy produced in the developing world does neither damage fragile eco-systems, nor the food security of people. Being the world's largest economy and the largest energy consumer, the EU can and should use its power as a lever to ensure that sustainability is the key word for biofuels development in the South.

In its report, drawn up by Eluned Morgan, adopted with a large majority, Parliament welcomes the Commission's green paper on a European strategy for sustainable, competitive and secure energy, but stresses that changing conditions in the broader global energy market need to be taken into account. MEPs want a systematic approach considering production, distribution and consumption in order to develop a policy which secures affordable energy. An overview of the proposals:

• A binding CO2 target for 2020 and changes in Emissions Trading Scheme: To tackle climate change, MEPs say EU leaders should agree within the next year on a binding CO2 target for 2020 and an indicative one for 2050. They say the existing Emissions Trading Scheme (ETS) needs to be changed, to include a move towards auctioning or benchmarking based on output - and also to bring in further emitting sectors including all types of freight transport.
• Energy Efficiency to be a priority across the board: The report asks the Council and Commission to make the EU the most energy efficient economy in the world by 2020 and to set energy efficiency measures as cross-cutting priority for all EU policy areas. It supports an EU target for energy efficiency improvements of at least 20 per cent by 2020. MEPs call for an EU strategy on transport energy use, aiming at the phasing out of fossil fuel, a reduction in oil dependency and the gradual introduction of clean energy.
• Consumers at the centre of energy policies: MEPs stress that consumers must be placed at the centre of all future energy policies and that energy poverty should feature more clearly in the Commission's proposals. Consumers should have easy access to price and choice information, to an easy method of switching energy provider and a right to be heard by the regulators in each Member State.
• EU should speak with one voice with third countries: Parliament says a common stance vis-à-vis third countries is needed to increase the EU's ability to negotiate with energy producing and consuming countries. The Commissioner responsible for energy should, say MEPs, work to a well defined mandate with a long-term energy planning vision. MEPs urge the Commission and the Member States to take very seriously the real danger of a deficit in gas supplies from Russia after 2010. They insist on the ratification of the Transit Protocol and the Energy Charter Treaty, which are instrumental in ensuring much needed foreign investment in Russia’s energy infrastructure and to assure sufficient gas supply to the EU.

Implementing biomass as an alternative front of energy
The importance of developing the investigation and the application of biomass and biofuels to become one of the most important sources of energy in the EU in the future is in the centre of the report by Werner LANGEN (EPP-ED, DE), adopted by the European Parliament. Members urge the Commission to work for a European market for biomass and call the Members States to eliminate barriers inside and between them.

Biomass can be an alternative font of energy in Europe and can reduce dependence on imports and fossil fuels. An increased use of biomass could make a contribution to the main objectives of energy policy: security of supply, competitiveness and environmental sustainability. Its use in heating and cooling, transport and electricity generation assures a noticeable reduction in greenhouse gas emission. Currently the EU uses 4% of its energy needs from biomass. The objectives settled for the use of renewable energies in the EU are 12% in 2010 made up of a share of 21% for the electricity sector and of 5.75% for liquid biofuels for transport:
bioenergy :: energy policy :: renewables :: biomass :: biofuels :: biopact :: developing world :: certification :: sustainability criteria :: European Parliament ::

Sustainability criteria, certification
Members underline the importance of implementation of the cost-effective and sustainable production and use of biomass. They also ask the Commission "to introduce a mandatory and comprehensive certification scheme allowing sustainable production of biofuels at all stages, including standards for the cultivation and processing phases as well as for the overall life-cycle greenhouse gas balance, applicable to biofuels both produced within, and imported into, the European Union".

Member States are called upon to "promote the use of biofuels through the taxation and excise system so as to make the production and use of biofuels more attractive". The committee expects them "to come up with investment incentives for the production and use of biomass and biofuels that are the most efficient from a climatic point of view and compatible with structural and agricultural policy rules taking particular account of environmentally-compatible, regionally-adapted and traditional varieties; believes that such incentive schemes must under no circumstances lead to the replacement of sustainable local food production".

Given the size of the wood market and the potential uses available, the wood biomass is seen by members as an appropriated resource, but they underline that the market shortages an the rising prices must be take in attention. Therefore, even if MEPs endorsed the Commission intention to put forward an action plan for forestry they underlined that the use of forest biomass must not lead to increased pressure on natural forests.

The Parliament "is convinced that the sustainable production and use of biomass offers considerable advantages for developing countries and technology transfer with these thirds countries and (underlines that) the export of bioenergy technologies should be supported by the European Union". But this policy should be balanced and these countries should first satisfy their energy needs more than developing their export capacity.

Targets for renewables supported - nuclear power is up to Member States
In order to help diversify energy sources, the House says the EU needs a stable long-term policy framework, with binding sectoral targets for renewables to reach 25 per cent in primary energy by 2020 - and a route map to reach 50 per cent by 2040. Parliament recognises the role that nuclear energy plays in some Member States as part of the energy mix and as a way of avoiding CO2 emissions, but says decisions on the future of nuclear power must be taken by the Member States individually.

Assistance and finance instruments (for the 'pact')
Community assistance under this regulation shall be implemented on the basis of multi-annual strategy papers and indicative programmes and shall be established for a period of up to seven years. They shall set out the Community’s strategy for the provision of assistance under this Regulation, having regard to the needs of the countries concerned, the Community’s priorities, the international situation and the activities of the main partners.

When it comes to the 'biopact' of sorts, the financial, economic and technical assistance provided under this Regulation shall be complementary to any assistance that is provided by the European Community under the Humanitarian Aid instrument, the Pre-accession instrument, the European Neighbourhood and Partnership instrument, the Development Cooperation and Economic Cooperation instrument, and the instrument for Stability.