布鲁盖尔-The-European-Union-energy-transition_-key-priorities-for-the-next-five-years_8页_343kb

EU Energy Transition: Key Priorities for the Next Five Years

Authors

• Simone Tagliapietra (Research Fellow, Bruegel)
• Georg Zachmann (Senior Fellow, Bruegel)
• Ottmar Edenhofer (Director and Chief Economist, Potsdam Institute for Climate Impact Research)
• Jean-Michel Glachant (Director, Florence School of Regulation)
• Pedro Linares (Professor, Universidad Pontificia Comillas)
• Andreas Loeschel (Professor, University of Münster)

Summary

The report outlines four key priorities for the EU to accelerate its energy transition and align with the Paris Agreement by 2024, which will shape the energy system by 2050.

1. Core Content

The European Union has made progress in integrating renewable technologies and improving energy efficiency, but further transformation is needed to meet decarbonisation goals. The energy transition is both an environmental necessity and an economic opportunity, offering the potential to lead in low-carbon industries and enhance competitiveness and security.

2. Main Priorities

• Priority 1: Adopt transformative policies to decarbonise the transport sector

  • Transport emissions have increased by 20% since 1990, becoming a major obstacle to EU decarbonisation.
  • Road transport accounts for over 70% of emissions, so policies should focus on reducing reliance on private vehicles.
  • Measures include promoting public transport, alternative mobility, and clean vehicles.
  • Policies should also address distributional effects, such as fuel price increases, which can lead to social backlash.
  • A combination of incentives (carrots) and disincentives (sticks) is needed, including emission standards, fuel taxes, and registration taxes.
  • Subsidies for low-income consumers and support for R&D in alternative vehicles are recommended.

• Priority 2: Get the electricity system ready for a substantial increase of renewables

  • Renewable energy generation is growing, especially in wind and solar, and the EU must prepare its electricity system to handle this expansion.
  • Integration requires expanding transmission capacity, adding flexibility, and improving market design.
  • The electricity sector is moving towards digitalisation and decentralisation, with the need for an open distribution platform.
  • A common distribution operation code and data-sharing framework are essential for a coherent energy system.
  • A pan-EU framework for data exchange and power-flow operation is necessary to support the interaction of all energy components.

• Priority 3: Strengthen the EU comparative advantage in low-carbon technologies

  • The EU has a strong position in renewable energy, energy efficiency, and related technologies.
  • Public funding is crucial in the early stages of innovation, especially for energy efficiency in buildings and carbon capture.
  • R&D support in areas such as electrochemical storage, hydrogen economy, and carbon capture and utilisation is important.
  • A predictable market environment and clear policy signals (e.g., carbon pricing) will help foster a low-carbon industrial ecosystem.

• Priority 4: Foster decarbonisation in industry and buildings

  • Industry contributes 25% of EU greenhouse gas emissions and is subject to the ETS, but it still needs stronger policies.
  • Current carbon pricing mechanisms do not fully affect industry due to free allowances and competitiveness concerns.
  • Policies should promote recycling, create lead markets for climate-friendly options, and enhance energy efficiency in buildings.
  • The building sector requires stronger efficiency standards, targeted financing, and cooperation between central and municipal governments to achieve deeper decarbonisation.

3. Key Considerations

• Social Acceptability: Policies must address distributional effects, such as fuel price increases, to avoid public resistance.
• Economic Opportunities: The EU has the potential to become a global leader in low-carbon technologies, including electric vehicles and renewable energy.
• Energy Security and Competitiveness: The EU needs to develop a unique approach to energy security and competitiveness, given its lack of shale potential and reliance on external investments.
• Technological Flexibility: The EU should remain open to various decarbonisation technologies, including hydrogen and synthetic fuels, depending on the sector and stage of development.

4. Conclusion

The EU must act decisively in the next five years to set the right policy priorities and ensure a socially acceptable, economically viable, and environmentally effective energy transition. This includes a mix of regulatory, market, and technological measures, supported by a strong focus on innovation, digitalisation, and fair distribution of costs and benefits.