1. The Design and Philosophy of the RES Directive Hans van Steen - Head of Unit European Commission, DG TREN D1 European Forum For Renewable Energy Sources - 7th Inter-ParliamentaryMeeting, Berlin, 5-6 October 2007

2. Starting points European Forum For Renewable Energy Sources - 7th Inter-ParliamentaryMeeting, Berlin, 5-6 October 2007 The European Commission´s Renewable Energy Roadmap January 2007 European Council Conclusions March 2007 European Parliament Report on the Roadmap September 2007

3. Promoting renewables is a central element in both EU energy policy and in EU climate policy The targets agreed by the European Council on renewables and on greenhouse gas reductions are linked but are also two self-standing objectives Basic philosophy (1) European Forum For Renewable Energy Sources - 7th Inter-ParliamentaryMeeting, Berlin, 5-6 October 2007

4. Basic philosophy (2) Binding targets for 2020 Flexibility between sectors, but… …minimum target for biofuels Compliance and sectoral targets through National Action Plans Improved possibilities for cross-border trade Sustainability criteria for biofuels European Forum For Renewable Energy Sources - 7th Inter-ParliamentaryMeeting, Berlin, 5-6 October 2007

5. Design issues Legal basis Target allocation National Action Plans Removing barriers Biofuels sustainability European Forum For Renewable Energy Sources - 7th Inter-ParliamentaryMeeting, Berlin, 5-6 October 2007

6. Design issues (1) Legal base: So far EU renewable policy has been conducted based on co-decision The Commission is of the view that this should continue Current thinking: double legal basis (Article 175.1 and 95) All Member State to agree on their national target European Forum For Renewable Energy Sources - 7th Inter-ParliamentaryMeeting, Berlin, 5-6 October 2007

7. Design issues (2) Allocation of 20% target Principles set out in European Council Conclusions Primary energy vs. final energy accounting Currently the Commission’s analysis looks at 2 approaches for the allocation –Based on potential in each Member State –Flat rate (equal increase in all Member States) Possibility of modulating for differences in GDP European Forum For Renewable Energy Sources - 7th Inter-ParliamentaryMeeting, Berlin, 5-6 October 2007

8. Flexibility and trade New ambitious targets will require more opportunities for trade in renewables Physical trade Virtual trade Improved guarantees of origin European Forum For Renewable Energy Sources - 7th Inter-ParliamentaryMeeting, Berlin, 5-6 October 2007

9. Design issues (3) National Action Plans Containing sectoral targets and measures to meet these Would become key monitoring and compliance tool for the Commission Directive should clearly define criteria for compliance European Forum For Renewable Energy Sources - 7th Inter-ParliamentaryMeeting, Berlin, 5-6 October 2007

10. Design issues (4) Removing barriers Essential feature of existing legislation Maintain and improve requirements in new directive Include heating and cooling - currently not subject to EU legislation Elements: o Autorisation procedures oPlanning permits oCertification procedures oRequirements for new buildings European Forum For Renewable Energy Sources - 7th Inter-ParliamentaryMeeting, Berlin, 5-6 October 2007

11. Design issues (5) Biofuels sustainability The 10% binding target is only politically acceptable with clear sustainability requirements Public consultation (April – June 2007) Scheme is currently being developped based on the following criteria –Greenhouse gas balance –Biodiversity –Rewards for second generation biofuels European Forum For Renewable Energy Sources - 7th Inter-ParliamentaryMeeting, Berlin, 5-6 October 2007

12. Conclusions European Forum For Renewable Energy Sources - 7th Inter-ParliamentaryMeeting, Berlin, 5-6 October 2007 Commission will come forward with a comprehensive renewable directive To be proposed as part of a package including GHG and ETS review Planned adoption on 5 December 2007

13. Thank you for your attention