A 2030 framework for climate and energy policies

The CEZ Group welcomes the fact that 2030 Green paper combines the two key issues - energy and climate change policies. This integrated approach is the only one which can tackle both immediate and long-term challenges.

In energy policy, these include restoring the functionality of the market approach to internalize GHG emissions, introducing technologically neutral parity among all low-carbon sources, developing infrastructure and managing the supply & demand of energy, and above all completing the internal energy market. The challenges of climate-change policy include the conclusion of a new global and binding agreement that would leverage and balance the ambitions of all major economies. Following principles are of paramount importance for any debate on the future shape of the climate and energy framework:

  1. The European framework must be consistent with the internal market and be based on a single EU-wide common target – reduction of GHG emissions. We have learnt that multiple goals and measures risk negative interactions and overlaps resulting in a reduction of synergies.
  2. National frameworks ought to support the internal market (while respecting the sovereignty provisions of the Lisbon treaty), prevent it from further fragmentation and eliminate such fragmentation as has already occurred.
  3. The called-for de-carbonization will continue to be based on a market approach and be fiscally neutral, inasmuch as the market is the only mechanism trusted by the majority of stakeholders.
  4. The 2030 framework should guarantee stability, yet also be flexible enough to react to changing economic circumstances; i.e., on one hand it must reflect the natural coupling of GDP development and emissions reduction, whilst on the other hand the year 2030 should represent just a transitional target on the way to the goals for 2050, as outlined in the Roadmap for moving to a competitive low carbon economy in 2050.
  5. The framework should reflect the development of international negotiations, too. Should it continue to amount to a unilateral commitment of the EU, it must contain effective mechanisms to alleviate the carbon leakage threat as well as to maintain and further promote international competitiveness of European energy industries.

In the light of the above, the CEZ Group is concerned by the slow pace of implementing the new legislation for trade liberalization and believes this is a major obstacle preventing the achievement of the IEM target by 2014. Full implementation of the existing energy liberalization packages must precede the adoption of latter measures.