At first glance, a revised 2030 target seems to be a significant boost for solar power and other renewable energy.
But power is the easy bit – the new target should also support decarbonization of the heating, cooling and transport sectors,” Coralie Laurencin, senior director for European power, renewables and climate at IHS Markit told pv magazine.
The 20% by 2020 target was binding and broken down to national targets depending on member states’ starting point and renewable resources.
“I do not think it is a big issue for solar PV that the target is not legally binding for member states.
Some say even a 40% renewables target may be too modest to align with the 55% GHG target for 2030 and the 2050 net-zero target.
“ 38% to 40% renewables is a significant increase to the current levels, especially as 2030 is only nine years away.
The Benchmark DEC 21 contract closed above €56/ton on the ICE exchange on Friday 14 May, up from around €20/ton the same time last year.
The price rally has been driven by regulatory reforms and the decision by the EU institutions to limit the supply of allowances and take credits out of the market if the number reaches certain thresholds, also known as the Market Stability Reserve.
Coal-fired generation decreased by 20% year on year in the 27 EU countries in 2020, according to data from the European Commission and Agora Energiewende.
The July package will include a proposal to further limit the supply of allowances – the linear reduction factor – and possibly to include the shipping sector under the ETS.
Including shipping is a good idea, but it will be difficult as it is a very international industry with many stakeholder interests to manage,” said Majumder-Russell.
The Energy Performance in Buildings Directive is also up for review this summer, and more ambitious targets for lower energy consumption are expected.
Support will also come from the European Structural and Investment Funds and from the European Fund for Strategic Investment, according to European energy commissioner Kadri Simson.
The revised directive aims to outline how transportation networks for green hydrogen will be operated, and will set rules for retrofitting existing gas networks as well as gas blending.
The unbundling obligation under the current gas package – which came into effect in 2012 – states that companies cannot operate production, supply, and transmission assets as a vertically integrated business.
A stakeholder consultation revealed that many energy companies want the principles under the existing gas package to be transferred to the hydrogen sector.
A number of energy companies have also called on the commission to set specific targets for renewable gases – for example, 11% of European gas demand by 2030 as proposed by Eurogas.
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