EUROPE:The European Commission has said that its ambitious targets for reduction in carbon dioxide emissions are achievable and will not have a significant negative impact on the world economy.
In its energy and climate change package published yesterday, the commission has proposed a 30 per cent reduction in CO2 emissions for developed countries below 1990 levels across the globe.
In a bid to lead the way in securing a new global agreement on climate change, the commission is proposing that the EU adopt a post-Kyoto commitment to reduce its emissions by 20 per cent by 2020.
The commission has a wide-ranging set of proposals aimed at achieving this target, including cutting energy use in homes and businesses, increasing renewable energies, and the use of new technologies to reduce greenhouse gas emissions from existing power plants and major energy users.
The commission's proposals, if implemented, are expected to have a profound effect on consumers and businesses across Europe, requiring significant reductions in the use of gas, coal, oil and electricity.
However, the commission has claimed that the cost of these measures will be more than offset by the savings to firms and consumers from reduced energy bills.
It estimates that that every euro spent on energy and climate change measures will result in €2 in savings.
The commission's proposal include a series of radical reforms for the EU's energy market, aimed at encouraging competition, securing supplies, and reducing reliance on imported oil and gas from outside the union.
The measures, aimed at improving competition, include proposals for "unbundling" the electricity market. This would effectively mean the break-up of major electricity firms in Europe to separate power generation from electricity transmission grids.
It follows a report published yesterday which warned about a serious lack of competition in the energy sector in the EU.
The commission stated yesterday there was "alarm" over the current poor state of energy infrastructure in Europe and it has estimated that €1,800 billion in investment is needed to replace old power plants, energy lines and construct new interconnectors.
The commission has proposed a legally binding target of 20 per cent for renewable energy, including a 10 per cent target for biofuels, to be achieved through a range of measures, including tax breaks and direct funding.
A large funding package for research into "clean" energy sources is also proposed, with €6 billion to be spent on the area of energy technology research.
The most controversial aspect of the energy plan from an Irish perspective is the emphasis on the importance of nuclear energy in achieving CO2 reductions. The commission stated yesterday that it respected the right of countries to opt out of nuclear energy. It warned, however, that countries which reject nuclear power must come up with additional measures to reduce carbon dioxide emissions.
It is envisaged that gas, oil and coal will continue to play a key role in energy supply in the EU, but that the high levels of CO2 emissions from these sources could be reduced through new technology known as carbon sequestration.
This would involve the "capture" of carbon dioxide gases at power plants which could then be stored on a long-term basis without being released into the atmosphere.
The commission has also set an ambitious target of improving energy efficiency in the EU and to reduce "primary" energy consumption in the EU by 20 per cent by 2020. This would save €100 billion a year, the commission estimates.
New legally binding standards to improve fuel efficiencies in cars and other vehicles is to be brought forward by the commission.
It is also expected to propose stringent standards for homes and new buildings, which may mean that most homes built after 2012 would be "passive homes" which require very little energy to heat because of the way they are constructed and the building and heating technologies used.
It is also proposed that legally binding energy efficiency standards could be applied to homes and offices undergoing major refurbishment.
The commission yesterday claimed that a global action plan to reduce greenhouse gas emissions, including a 30 per cent reduction target for developed countries, would not have a significant negative impact on global development.
The commission said measures would cost "5 per cent of total global GDP over the period 2013-2030. This would reduce global GDP growth by just 0.19 per cent per year up to 2030, a fraction of the expected annual GDP growth rate of 2.8 per cent," the commission said.