A reduction in greenhouse gas emissions by 40% below the 1990 level and an EU-wide binding target for renewable energy of at least 27% are among the key elements of the European Commission’s new EU framework on climate and energy for 2030.

Other measures include renewed ambitions for energy efficiency policies, a new governance system and a set of new indicators to ensure a competitive and secure energy system.

The Commission said that the 2030 framework, supported by a detailed analysis on energy prices and costs, will ensure regulatory certainty for investors and a coordinated approach among Member States, leading to the development of new technologies.

The Communication is also accompanied by a legislative proposal for a market stability reserve for the EU emissions trading system (EU ETS) starting in 2021, to improve its robustness. A report on energy prices and costs in Europe, published alongside the Communication, suggests that the rising energy prices can be partly mitigated by ensuring cost effective energy and climate policies, competitive energy markets and improved energy efficiency.

European Commission President José Manuel Barroso said:

"Climate action is central for the future of our planet, while a truly European energy policy is key for our competitiveness. Today's package proves that tackling the two issues simultaneously is not contradictory, but mutually reinforcing. It is in the EU's interest to build a job-rich economy that is less dependent on imported energy through increased efficiency and greater reliance on domestically produced clean energy. An ambitious 40% greenhouse reduction target for 2030 is the most cost-effective milestone in our path towards a low-carbon economy. And the renewables target of at least 27% is an important signal: to give stability to investors, boost green jobs and support our security of supply".

Connie Hedegaard, Commissioner for Climate Action, said:

“In spite of all those arguing that nothing ambitious would come out of the Commission today, we did it. A 40% emissions reduction is the most cost-effective target for the EU and it takes account of our global responsibility. And of course Europe must continue its strong focus on renewables. That is why it matters that the Commission is proposing today a binding EU-level target. The details of the framework will now have to be agreed, but the direction for Europe has been set. If all other regions were equally ambitious about tackling climate change, the world would be in significantly better shape.”

The proposal for the binding renewable energy target, which is supported by a number of member states including Germany, France and Italy, has been opposed by the UK.

The key elements of the 2030 policy framework set out by the Commission are as follows:

• A binding greenhouse gas reduction target: the target of a 40% emissions reduction below the 1990 level would be met through domestic measures alone.
• An EU-wide binding renewable energy target: an EU-wide binding target for renewable energy of at least 27% in 2030 -  which the Commission says is necessary to drive continued investment in the sector. However, it would not be translated into national targets through EU legislation, leaving flexibility for Member States to transform the energy system in a way that is adapted to national preferences and circumstances.
• Energy efficiency: The role of energy efficiency in the 2030 framework will be further considered in a review of the Energy Efficiency Directive due to be concluded later this year.
• Reform of EU ETS: The Commission proposes to establish a market stability reserve at the beginning of the next ETS trading period in 2021 to address the surplus of emission allowances that has built up in recent years and improve the system's resilience to major shocks.
• Competitive, affordable and secure energy: The Commission proposes a set of key indicators to assess progress over time and to provide a factual base for potential policy response.
• New governance system: The 2030 framework proposes a new governance framework based on national  energy plans to be based on upcoming guidance from the Commission.

UK "remains concerned" over renewables target

In response, Edward Davey, Secretary of State Energy and Climate Change said:

“Today’s proposals are a step in the right direction towards an ambitious emissions reduction target for Europe. They provide the flexibility to tackle climate change in the most cost-effective way, so that British consumers aren’t paying over the odds to go green. This package backs the green growth agenda I’ve been working for with other European colleagues.

“A 40% GHG target for Europe is a good start which the UK fought hard for, and will lead to massive investment in low carbon energy, including many more renewables.

“Yet Britain has been clear that Europe must be ready to adopt a 50% target if the rest of the world is prepared to sign an ambitious global climate deal in 2015.”

“The reform package for Europe’s Carbon market is another important and welcome step in the right direction. We had proposed more comprehensive reforms but these proposals have the potential to revive the EU ETS and deliver more emissions reductions at least cost."

However, he added that the UK “remains concerned” about any renewables target.

Proper environmental safeguards for fracking must be in place

Alongside the new framework the European Commission also  adopted a Recommendation aiming to ensure that proper environmental and climate safeguards are in place for "fracking" in shale gas operations.

The Commission said the Recommendation would help Member States to address health and environmental risks – and  also lay the ground for a level playing field for industry and establish a clearer framework for investors. Building on existing EU legislation, the Recommendation wants Member States to:

• Plan ahead of developments and evaluate possible cumulative effects before granting licences;
• Carefully assess environmental impacts and risks;
• Ensure that the integrity of the well is up to best practice standards;
• Check the quality of the local water, air, soil before operations start, in order to monitor any changes and deal with emerging risks;
• Control air emissions, including greenhouse gas emissions, by capturing the gases;
• Inform the public about chemicals used in individual wells, and
• Ensure that operators apply best practices throughout the project.

The measures the Commission wants Member States to adopt include the provision of clear rules on possible restrictions of activities, for example in protected, flood-prone or seismic-prone areas, and on minimum distances between authorised operations and residential and water-protection areas. They should also establish minimum depth limitations between the area to be fractured and groundwater. 

The Commission wants EU Member States to apply the principles within six months and, from December 2014 onwards, inform the Commission each year about measures that they have put in place.

Commenting on the Recommendation, Ed Davey said:

“The recognition that shale gas has an important role to play in cutting carbon as we move away from coal is also welcome. The UK pushed hard for proposals on shale gas to be robust but proportionate and I am pleased that the Commission has recognised that existing directives already cover the environmental issues shale gas raises. In the UK, we already have robust regulation in place and we must be careful to avoid delaying this emerging industry by years of debate over regulation that simply duplicates."

The Communication setting out the 2030 framework will now be debated in the European Council and European Parliament. The European Council is expected to consider the framework at its spring meeting on 20-21 March.