EU SUSTAINABLE ENERGY WEEK JUNE 2013 Energy Renewable Energy and Just Transition Benjamin Denis

2 Plan 1.ETUC key messages on climate and energy 2.Energy landscape 3.Job potential 4.Austerity and investment crisis 5.Price issue

3 1. ETUC key messages on climate and energy A socially-just de-carbonisation combining environmental ambition with a social dimension -80 to -95 % of GHG in 2050 for the EU compared to 1990 with adequate intermediary milestones for energy efficiency and renewables Investment is crucial, austerity is undermining the transition Energy should not be dealt with as if a normal commodity

4 Four requirements regarding EU energy policy SustainabilityAffordability Security of supplyIndustrial viability Progressive Energy Policy

5 2. Energy landscape World energy demand is expected to increase by one third by 2035 (WEO 2012) EU imports +/- 55 % of its needs (Eurostat) EU is highly dependent on external suppliers: – 83 % of oil imported – 64 % of gas imported Low-carbon roadmap for 2050: – Switching to domestically produced low carbon energy sources will reduce the EU's average fuel costs by between € 175 billion and € 320 billion per year – Without action the bill for oil and gas imports could instead double compared to today, a difference of €400 billion or more per annum by 2050, the equivalent of 3% of today's GDP

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8 Specific recommendations Energy dependency must be reduced in a sustainable way! Diversification of energy sources. (Reinforce the RE Directive with enhanced national targets). European support for the development of appropriate technological solutions (inter alia storage, smart grids). Promotion of energy savings and energy efficiency. (Introduction of objectives for 2030). GHG emissions’ reductions via appropriate price signals. (ETS reform using set-aside mechanism). Fight against energy poverty - heating and mobility. (Social criteria in the ETD and EED)

9 3. Job potential 1.2 million people work directly or indirectly in the renewables sector in the EU (EREC 2012) Potential : 2020 = 2,7 Mio; 2030 = 4,4 Mio Export potential and technology leadership But: Unfair trade practices should be tackled (e.g. Chinese solar panels) Green skills for the workforce must be developed (update of curriculae, training and re-qualifying programmes) Decent jobs: salary, working conditions, health and safety standards

10 4. Austerity and investment crisis undermine the transition Low-carbon roadmap 2050: “This represents an additional investment of around 1.5% of EU GDP per annum on top of the overall current investment representing 19% of GDP in 2009” ETUI Benchmarking 2013: « The main reason for the large drop last year was that many governments in industrial nations slashed subsidies for technologies ranging from wind turbines to solar power and biomass »

11 Global total new investment in clean energy ( ) Source: BNEF, 2013

12 New investment in clean energy 2012 (USD bn), 2012/2011 change (%) countryNew investment in clean energy (bn bn USD) Yearly change %, compared to previous year world268,7-11 China67+20 USA44,2-32 Germany23n.a. Japan16,3+75 Italy14,7-51 South Africa5,5Cca Spain3-68 Source: BNEF, 2013

13 5. Price issue Energy poverty and de-industrialisation are major sources of concern for trade unions Status quo is not the answer Shale gas and over-extension of ancient nuclear power plants are at odds with precautionary principle In the short term, the following instruments should be used to mitigate the cost of the energy transition: – Provisions of the ETS Directive (art 10 a (6)) – Social tarifs and support devices for vulnerable households – Border adjustment mechanism (as a last resort) for energy-intensive industries exposed to a significant risk of carbon leakage from companies that do not have to comply with the same environmental standards – Phasing out of fossil fuel subsidies – Support for energy savings and energy efficiency In the longer term, innovation and timely investments will reduce the cost of decarbonisation

14 Going beyond … Resolution on the energy strategy for Europe Putting just transition into action in Europe and globally: ETUC position towards Qatar COP18 Green Workplaces a guide for union representatives

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