Trading must not hamper renewables target

Press release - February 28, 2008
Belgium — Greenpeace welcomes the broadly positive reception by ministers of the renewable energy directive published by the Commission in January(1), but warns member states that a flexibility mechanism must not undermine the EU’s chances of reaching its 20% renewables objective.

"The EU must ensure that a flexibility mechanism helps rather than hampers the 20% target. We do not want a situation where a few giant companies can profit from trading, while increasing costs for European consumers and jeopardising the EU's ambition to develop clean energy," said Frauke Thies, Greenpeace EU renewable energy campaigner.

Greenpeace supports any flexibility mechanism where member states can trade renewable credits once they have reached their national targets, but believes that trading between companies, rather that states, could spell the end for successful support measures for renewable energy. With growing evidence proving the unsustainability of most biofuels, Greenpeace also urges ministers to drop the 10% renewable sub-target for the transport sector.

Negotiations are still ongoing on whether ministers will endorse the separation of energy network ownership from energy supply, also known as unbundling. "Greenpeace endorses the Commission's proposal for full ownership unbundling and the establishment of a level playing field, while underlining the need for a strong European regulator," said Thies. "We reject attempts by certain member states and big business to hold on to de-facto monopolies that create unfair market conditions for new operators, such as renewable energy providers," she added.

European ministers are also still discussing about the focus of energy-related technological research for the coming years. "The Strategic Energy Technology (SET) Plan should exclude support for expensive technologies that bear an unacceptable environmental cost, such as nuclear energy, and that are mere distractions, like carbon capture and storage," said Thies. "The SET Plan cannot effectively promote an innovative and sustainable energy system based on efficiency, renewables and smart energy grid operation, while at the same time perpetuating an outdated centralised energy model."(2)

Other contacts:

Frauke Thies – EU renewable energy policy campaigner, , tel. +32 2 274 1912, +32 (0)477 79 04 15
Mark Breddy – EU communications manager, , tel. +32 2 274 1903, +32 (0)496 15 62 29

Notes:

(1) Background media briefing on the ‘climate and energy package’: http://www.greenpeace.org/raw/content/eu-unit/press-centre/policy-papers-briefings/briefing-on-commission-energy-package.pdf; Press release on the ‘climate and energy package’ (English): http://www.greenpeace.org/eu-unit/press-centre/press-releases2/eu-climate-energy-package-; Press release on the ‘climate and energy package’ (French): http://www.greenpeace.org/eu-unit/press-centre/french-versions/plan-climat-energie-ue-.
(2) Half of Europe’s total energy needs could be delivered by clean renewable energy technologies by 2050, providing the necessary emission cuts, without any further investment into coal and nuclear energy. Greenpeace report: Energy Revolution: A sustainable pathway to a clean energy future for Europe: http://www.greenpeace.org/eu-unit/press-centre/reports/energy-r-evolution2 (executive summary: http://www.greenpeace.org/eu-unit/press-centre/reports/energy-r-evolution-executiv).

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