EU legislation

Cleaner energy in the European Union

As of 2005, only 8.5% of European energy came from renewable sources.

Europe is now working under a new common energy policy that is seeking to reach a 20% rate of renewable energy within overall EU energy production by 2020.

This is being led by the Climate Action and Energy Package, as issued by the EU Commission in January 2007. The package called for a cut in carbon emissions, and identified five main areas for action:

• Existing EU Directives

  Existing EU regulations promoting cleaner energy generally have indicative rather than compulsory targets. The main two Directives are to be replaced by the new Renewable Energy Directive:

  Renewable Electricity Directive (2001)
  - Sets indicative targets to produce 22% of EU electricity from renewable sources by 2010;
  - Sets indicative national targets for Member States (10% for UK);
  - Encourages national support schemes, cutting of red tape, improvement of grid access for renewable energy generators.

  Biofuels Directive (2003)
  - Sets target of 5.75% of petrol and diesel for transport to come from biofuels by 2010
  - Member States to set indicative target for 2005, based on 2% reference point.

  Other existing measures seen as promoting low carbon energy include the Energy Performance of Buildings Directive (2003) and the CHP Directive (2004).

  Renewable energy production
• Carbon dioxide capture and storage
• Emissions reduction in transport
• Revision of the EU emissions trading scheme
• Reduction of greenhouse gas emissions 

The package points out that as well as environmental benefits, an increase in renewable energy would reduce EU dependence on increasingly expensive imported fossil fuels.

It also calls for a reduction in red tape to make the energy sector in Europe more competitive and sustainable, as well as being more attractive to investors.

As part of the climate and energy package, a Renewable Energy Roadmap was published in January 2007, setting out the Commission's thoughts on new legislation to promote renewable energy. It comprised five main elements:

1. Binding national targets for Member States to increase renewable energy consumption.
2. "Guarantees of Origin" allowing Member States to support renewable energy projects abroad if they cannot do so domestically.
3. National Action Plans to set out targets and support for different industry sectors.
4. Requirements for Member States to cut regulatory red tape and market barriers, provide priority grid access to renewable energy projects, and develop grid infrastructure.
5. Improving use of biofuels in transport fuel.

Directive 

Dominating the new Directive is the legally-binding EU-wide target to generate 20% of Europe's energy from renewable sources by 2020. Already agreed by the Member States, the sharing out of this target will most likely see the UK set an individual target to generate 15% of its energy from renewable sources by 2020.

For more detail on the Renewable Energy Directive and other parts of Europe's climate package of developing legislation see the following reports: