Reuters AlertNet Lite - FACTBOX-Main points of new EU energy strategy

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FACTBOX-Main points of new EU energy strategy

10 Jan 2007 14:34:34 GMT
Source: Reuters

BRUSSELS, Jan 10 (Reuters) - The European Commission launched an overhaul of Europe's energy policy on Wednesday, ranging from plans to cut carbon emissions to recommendations for breaking up energy giants.

Following are some of the main points of the strategy proposal which must now be approved by European Union countries:

To see a related story, please click on [ID:nL10243624]

GREENHOUSE GAS EMISSIONS

The Commission proposed a unilateral target of cutting EU greenhouse gas emissions by at least 20 percent by 2020 from 1990 levels, rising to 30 percent if other developed nations join in under an international agreement.

That compares with an existing target for an 8 percent cut from 1990 levels in the 2008-2012 period which was adopted by the 15 members of the EU before its 2004 enlargement but which several countries are struggling to meet.

RENEWABLE ENERGY SOURCES

The plan puts forward a binding target of producing 20 percent of EU energy needs -- including power generation and biofuels -- from renewable sources by 2020, up from about 7 percent now.

BIOFUELS

Biofuels, produced largely from crops and which produce few emissions, should account for at least 10 percent of vehicle fuel in the EU by 2020.

ENERGY EFFICIENCY

Brussels reiterated a previous target of improving energy efficiency by 20 percent by 2020.

COMPETITION

The Commission stated its preference for requiring utilities that generate power to sell off distribution assets as the most effective way to making the sector more competitive and help drive down prices.

But, faced with opposition to that idea from France and Germany, it also proposed a second option of allowing utilities to retain ownership of their grids while turning over management to an independent system operator.

ENERGY DIPLOMACY

The EU should speak with one voice when negotiating with energy producers such as Russia, Norway, Algeria in central Asia as competition for resources intensifies.

NUCLEAR POWER

The plan says the choice of whether to use nuclear power should remain up to individual governments but moves to cut nuclear output should be accompanied by introduction of supplementary low-carbon energy sources.

The Commission also suggested creating an EU-wide high-level group of experts to eventually propose European rules on standards and safety.

REGULATORY CONTROL

The Commission proposed a mechanism giving it the chance to review some decisions of national regulators which affect the internal market. It also suggested creating a body at EU-level to ensure cross-border energy trading works in practice.

INTERCONNECTIONS

Among other measures, Brussels proposed four co-ordinators to advance the most important projects:

-- links between Germany, Poland and Lithuania

-- links to off-shore wind power sites in Northern Europe

-- electricity interconnections between France and Spain

-- the Nabucco pipeline between the Caspian region and central Europe.

CARBON CAPTURE AND STORAGE

The Commission said it wanted to expand the use of carbon capture and storage (CCS) technology to help curb emissions. Brussels envisages the creation of 12 large-scale CCS demonstration plants by 2015. By 2020, all new coal-fired power plants should be fitted with CCS, the Commission said.

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Last updated:Wed Jan 10 14:35:47 2007