Utility Week

Policy & Regulation Analysis Green target compromise Megan Darby says the fudge on 2030 renewables targets is progress of sorts. R enewables target: stain on the purity of a carbon market or essential to investment in our green future? That has been the big ideological fault line in the runup to the unveiling of Europe's 2030 climate and energy framework. Proponents of targets say they cut the cost of renewables by making them more attractive to investors. Detractors say renewable energy is not necessarily the cheapest route to cutting emissions (energy efficiency and switching from coal to gas generally cost less) and a technology-neutral carbon market is more efficient. The UK government is in the latter camp. Last week the European Commission came up with a curious compromise. It proposes a binding target to get "at least" 27 per cent of energy from renewables by 2030, across the EU. However, it will not dictate the contribution each member state must make. Commission president Jose Manuel Barroso says national targets "risk the fragmentation of the internal market and do not allow us to reach the targets in the most cost effective way". Nations can come up with their own plans and the Commission will attempt to co-ordinate so the figures add up. While acknowledging the theoretical superiority of a technology-neutral approach, Nina Skorupska, chief executive of the Renewable Energy Association, would prefer to see binding member state targets. She says: "Politics frequently trumps economics in the real world, and when politicians go wobbly on renewables, the targets help keep investment flowing." Nor are the sceptics satisfied. Energy secretary Ed Davey says the UK "remains concerned about any renewables target", especially since the debate has "moved on" to technologyneutral options as the best way forward. Meanwhile, proposed reforms to the EU Emissions Trading System will go some way to restore carbon price signals, given time. On the whole, it seems the Commission has come up with a package most people can live with. Next, it is a case of getting the Council and Parliament on board and setting the policies to make those targets happen. In brief: EU 2030 targets 40% greenhouse gas emissions reduction target 32% "The 2030 framework sets a high level of ambition for action against climate change, but it also recognises that this needs to be achieved at least cost" – Gunther Oettinger, EU energy commissioner the cut Europe is currently on course for 50% the UK government's aspiration, if matched by global ambition "With these weak proposals, the EC has failed to deliver science-based proposals needed to keep the world within two degrees of warming" – nick Mabey, E3G "Politics frequently trumps economics in the real world" 27% the 2030 renewable energy target 20% the 2020 renewable energy target 24% Nina Skorupska, Renewable Energy Dorothy Thompson, chief executive of Association biomass generator Drax the renewable market share Europe is on course to reach in 2020 UTILITY WEEK | 31sT JanUarY - 6Th FEbrUarY 2014 | 17

• Cover