Discussion Paper on the preparation of the Energy Union Governance. Meeting of Directors General for Energy and Climate.

Transcription

1 Discussion Paper on the preparation of the Energy Union Governance Meeting of Directors General for Energy and Climate 15 July 2015 In its Communication on a Framework Strategy for the Energy Union adopted on 25 February 2015, the Commission stated the need for an integrated governance and monitoring process of the Energy Union, to make sure that energy-related actions at European, regional, national and local level all contribute to the Energy Union's objectives. In its Conclusions on the Energy Union, the March 2015 European Council called for developing a reliable and transparent governance system. This call was reiterated in the June 2015 Energy Council Conclusions and is in line with the Conclusions of the October 2014 European Council on the 2030 Framework, which also stressed that the governance system will ensure that the EU meets its energy policy goals as well as the necessary flexibility for Member States and build on existing building blocks for planning and reporting. In May 2015, Vice-President Šefčovič launched an Energy Union Tour to engage in an intensive dialogue with governments, Members of national parliaments and the European Parliament as well as relevant stakeholders and citizens in order to present and discuss the Energy Union and its opportunities for Member States. As a basis for this dialogue, which will feed into the State of the Energy Union Report, draft country fiches addressing the Energy Union's five dimensions for each Member State were circulated to Member States. This paper presents (i) the Commissions objectives for a future governance system for the Energy Union (ii) illustrates the kind of instruments that could support a future governance system and (iii) the proposed next steps and key questions for the debate. Based on the discussions, the Commission will take further initiatives to develop the governance of the Energy Union. 1. Main objectives for the governance system The overarching purpose of the governance system is to help Member States deliver on the objectives of the five closely interrelated dimensions of the Energy Union: energy security, solidarity and trust; a fully integrated European energy market; energy efficiency contributing to moderation of demand; decarbonising the economy; and research, innovation and competitiveness. In particular, this is needed: to ensure the delivery of the 2030 climate and energy targets as agreed at the European Council in October 2014, to enhance transparency and streamline current planning and reporting requirements

2 through Better Regulation, to strengthen regional cooperation within a common EU framework. to give predictability to investors; 2. Setting up a governance system Governance of the Energy Union should start with building and sharing knowledge of energy policy and its development across all Member States. 2.1 Streamlined and coherent monitoring system The current reporting under the existing energy and climate legislation needs streamlining and simplification. A transparent monitoring system should be therefore put in place, based on (i) streamlining of reporting and planning requirements in order to reduce administrative burden and bring more coherence, as well as on (ii) assessing performance according to key energy and climate indicators based on e.g. on energy prices and cost, competition, diversification of energy imports, and infrastructure targets). This exercise should be based also on the recent streamlining process in the climate field. The core elements of this streamlined system would be (1) single integrated national plans for the post-2020 period (see below) and (2) biennial reports on the implementation of national plans. These implementation reports will be an important instrument to assess progress in implementating the Energy Union objectives. As a result of this streamlining exercise, Member States would have to submit fewer reports and plans. It will also bring more coherence, simplification and consistency between the various planning and reporting streams Integrated national energy and climate plans, to deliver on the Energy Union's objectives National plans would be the key instruments for Member States to set out their energy and climate policy approaches for the period up to 2030 in an integrated way. The integrated plans should cover all five dimensions of the Energy Union, including notably the agreed targets of the 2030 Framework (greenhouse gas emission reductions, renewable energy, energy efficiency, and electricity interconnections) and the indicators based on the 2030 Framework Communication. The plans should present the Member State's policy choices as well as policies and measures planned to meet the future binding 2030 national targets in the non-ets sectors (transport, buildings, agriculture), taking into account national and EU energy and climate policy objectives

3 until As regards the agreed EU-level binding target for renewable energy of at least 27% and the energy efficiency target of at least 27% (to be reviewed by 2020 with a view to 30%), the plans should set out national policies and measures planned to achieve them, taking into account the implementation of existing EU legislation (without fixing national binding targets). The Commission would aggregate these national plans and compare with the EU-level target. Furthermore, policies affecting the internal energy market, security of supply and energy dependence as well as research, innovation and competitiveness should be part of national plans in particular with cross-border impact. Some of the latter policies may be complemented by sector specific EU initiatives Indicators and projections National plans should include projections for the energy system and greenhouse gas emissions based on existing policies, notably a reference projection that does not include the effects of the planned policies described, and a policy projection with the planned measures. The Commission stands ready to support Member States by providing data and analysis. An important input will be the modelling work of the EU's new Reference Scenario, prepared in close cooperation with Member States. Without aiming to replace national projections developed by Member States, it can be a useful reference point for Member States in defining their own targets and objectives. Building on the indicators already included in the draft country fiches, the Commission will also present in the annual State of the Energy Union Reports a cross-country view of key energy and climate indicators, for example on energy prices and costs, competitiveness, the diversification of energy imports or energy market functioning. This will inform Member States on the challenges on national, regional as well as EU level in a comprehensive and comparable way, and help in the elaboration of the general aspects of the national plans and the monitoring of their implementation, as well as in tracking EU-wide progress. Political and technical dialogues between the Commission and Member States on the basis of the draft plans can be useful. They would provide an opportunity to take into account the upcoming energy and climate policy initiatives of the Commission and to ensure consistency between EU-level and national measures. 2.4 Regional cooperation The Energy Union strategy encourages closer regional cooperation on all five dimensions. This has been supported by Member States in a recent discussion at the Energy Council. National plans should reflect the outcome of regional cooperation in areas that would benefit

4 from joint or coordinated planning with neighbouring Member States. Therefore regional consultations on enhanced coordination of national policies with other Member States and consideration of potential impacts of national approaches on neighbouring countries will be of key importance. Regional cooperation can be built on existing fora or new ones, with the support of the Commission. 2.5 The Commission's State of the Energy Union Report The Commission will report annually on the State of the Energy Union. The Report will assess progress made in the Energy Union's five dimensions. It will bring together a number of reporting obligations falling on the Commission and present country-specific analysis showing individual and collective progress of Member States towards the Energy Union objectives. The first report will be published in the fourth quarter of 2015 and will be presented to the European Parliament and the Council. 3. Next steps The Commission welcomes that the Luxemburg Presidency has put the Energy Union and its related governance elements high on the political agenda. In the coming months, it intends to continue the consultation and dialogue with Member States and the European Parliament on the differents elements of governance. Further meetings with Directors-General, notably on regional cooperation, will be needed to discuss key policy issues of the future governance system with Member States the Commission also plans to consult stakeholders. 4. Questions for debate What could be the key elements for the National Energy and Climate Plans which would be needed for the delivery of Energy Union objectives? How can this be done while preserving Member States' flexibility across policy areas? Based on Member States' experiences, what areas offer the highest potential for streamlining existing reporting and planning obligations? How should the Commission assess Member States efforts in as indicated in their national plans in terms of the need to meet EU-level renewables and energy efficiency targets? In order to facilitate the achievement of these targets, how could the result of this assessment be used for EU and national policy making (e.g. through an iterative planning process)? Following the current validation exercise on the draft country fiches, how can data,

5 assessment and intelligence on the Energy Union be further improved?