The EU Policy towards a low carbon economy Fabrizio Barbaso, Deputy Director General for Energy, DG TREN, European Commission EUROPEAN COMMISSION

| 2 EU energy mix: business as usual is not sustainable 2005 Import dependency Energy demand and carbon intensity ~ 80% fossil fuel SOURCE: Eurostat.

| 3 5.5% Additional effort based on GDP per capita RES share in 2005 Flat rate increase of 5.5% 8.5%6%20% DoneTo be done EU-27 efforts in Renewables Policy targets

| 4 31% 13% 16% 13% 30% 18% 25% 16% 18% 20% 23% 17% 13% 42 % 23% 11% 13% 10% 14% 34% 15% 25% 14% 38% 49% 15% 24% EU-27 RES share in 2020 EU-27 efforts in Renewables RES share in 2020 BE BG CZ DK DE EE IE EL ES FR IT CY LV LT LU HU MT NL AT PL PT RO SI SK FI SE UK

| 5 Responding to the triple challenge FULLYBALANCEDINTEGRATEDAND MUTUALLY REINFORCED Sustainable Development Close link to greenhouse gas emission target – savings of 600 to 900 mln tonnes of CO2 Competitiveness With falling renewable energy prices, renewables are increasingly an economically sound alternative Security of supply Renewable energy mostly generated within the EU

| 6 Article 5 creates opportunities for trade of RES-E from third countries to be counted against the national targets Conditions are:. Electricity should be consumed in the Community. Electricity from installation operational after entry into force of the Directive. The electricity is issued with a guarantee of origin part of a system of guarantees of origin equivalent to that laid down in the Directive

| 7 | 7. GHG savings – minimum of 35%. No raw material from undisturbed forests, biodiverse grassland, nature protection areas. No conversion of wetlands and continuously forested areas for biofuel production (to protect carbon stocks). All EU biofuels must meet “cross compliance” environmental rules Promotion of biofuels - Sustainability criteria for biofuels

| 8 Role of technology. Renewables sector has growing importance worldwide – already turnover of €30 billion in the EU, providing approximately 350,000 jobs. But renewable energies are at different stages of technological and commercial development. Increased demand will improve economies of scale and lower costs. Continued international cooperation in research is necessary

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