Commission falls between two stools on financing for low carbon technologies

Press release - October 7, 2009
The European Commission has proposed increased and coordinated funding to develop a greener energy sector, but has failed to deliver a consistent strategy to achieve this objective, said Greenpeace today following the release of an EU proposal for public and private investment in low carbon technologies. The proposal supports renewables and energy efficiency and an upgrade of the energy system to integrate these technologies in a smart grid network. Yet, it also persists in subsidies for outdated nuclear and coal-based technologies that are designed to operate in centralised and inflexible power grids.

"The Commission has once again fallen between two stools on where to invest in the energy system. It recognises the need for renewables and efficiency, but it is also bowing to pressure to fund outdated technologies like coal and nuclear. It's time for the EU to choose the type of energy system it wants in the future and stop playing the field," said Frauke Thies, Greenpeace EU energy policy campaigner

The conflict between a centralised and inflexible energy system that relies on nuclear and coal, and versatile renewables is already becoming apparent. In northern Germany, wind power is being cut off the grid during times of low power demand, because nuclear and coal plants are unable to adjust their output. The situation will only worsen unless the right policies are implemented across Europe.

"Instead of diverting resources to fossil and nuclear experiments that only perpetuate our outdated energy system, more efforts should go into the development of a smart energy network that can integrate renewable energy sources and efficiency," said Thies.

The Commission proposes seven industrial initiatives and estimates the public and private funding needed for these initiatives over the next ten years, including wind energy (6bn€), solar energy (16bn€), bioenergy (9bn€), the electricity grid (2bn€), carbon capture and storage (13bn€), nuclear energy (7bn€) and fuel cells and hydrogen (5bn€). It also proposes a so-called 'smart cities' initiative for efficiency measures and the deployment of renewable energy in large cities (11bn€).

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