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ID: 109704

Imbalance in Europe's effort sharing decision: scope for strengthening incentives for energy savings in the non-ETS sectors / Harmsen, Robert; Eichhammer, Wolfgang; Wesselink, Bart

Harmsen, Robert	Journal Article
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2011.

Summary/Abstract

Europe's 2020 greenhouse gas (GHG) reduction target consists of two sub-targets: one for the Emissions Trading Scheme (ETS) sectors and one for the non-ETS sectors. The non-ETS target covers CO2 emissions in buildings, transport and non-ETS industry and non-CO2 GHG emissions. The non-ETS target is known as Europe's Effort Sharing Decision. This article discusses the GDP per capita method the European Commission has applied in setting Member State specific targets for the non-ETS ("the effort sharing") and shows that it results in an imbalanced reduction effort among the Member States. It turns out that the principal mechanism of the GDP per capita method (low-GDP countries get room to catch up with high-GDP countries by allowing them to increase emissions) is obscured by the non-CO2 GHGs, the baseline projections of which are highly policy-induced and not correlated with the growth of GDP per capita. We propose an alternative method that (1) corrects for the policy-induced decrease of non-CO2 GHG emissions and (2) is based on energy savings potentials. This approach could be used in future target setting for non-ETS sectors - including in the case that the overarching EU-wide target would be strengthened - and would provide a direct support to Europe's energy savings ambitions and policies.

Key Words

Energy Savings ; GHG Target ; Effort Sharing Decision

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ID: 105760

Unrecognized contribution of renewable energy to Europe's energ / Harmsen, Robert; Wesselink, Bart; Eichhammer, Wolfgang; Worrell, Ernst

Worrell, Ernst	Journal Article
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Publication

2011.

Summary/Abstract

We show that renewable energy contributes to Europe's 2020 primary energy savings target. This contribution, which is to a large extent still unknown and not recognized by policy makers, results from the way renewable energy is dealt with in Europe's energy statistics. We discuss the policy consequences and argue that the 'energy savings' occurring from the accounting of renewable energy should not distract attention from demand-side energy savings in sectors such as transport, industry and the built environment. The consequence of such a distraction could be that many of the benefits from demand-side energy savings, for example lower energy bills, increase of the renewable energy share in energy consumption without investing in new renewable capacity, and long-term climate targets to reduce greenhouse gas emissions by more than 80%, will be missed. Such distraction is not hypothetical since Europe's 2020 renewable energy target is binding whereas the 2020 primary energy savings target is only indicative.

Key Words

Energy ; Europe ; Energy Savings ; Renewable Energy ; Policy Interaction ; Renewable Energy Statistics

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