Reaching the EU 2020 goals

The increase of global output and population have put growing stress on the worlds natural resources and environment. The Stern Review (2006) has highlighted the depletion of non-renewable energy resources. His study shows that by acting now we can restrict the estimated costs to 1% of the world GDP. On the contrary postponing any intervention could cost us up to 10% of the global GDP (Stern, 2006). Measures like the Kyoto Protocol are global efforts that recognize the threat posed by the excess of GHG emissions. In 2009 the EU intervened with the Directive 2009/28/EC and the Decision 406/2009/EC setting the European 2020 targets, thus complementing Kyoto measures. The goals that this European legislation wants to achieve are: 1) 20% overall share of renewable energy in the EU and a 10% share for renewable energy in the transport sector and 2) decrease the levels of GHG emissions by 2020. Moreover, given the first pessimistic estimations to reach those targets by 2020, in 2012 the EU approved the Directive 2012/27/EU establishing new measures to enhance energy efficiency. Goals of this directive are: 1) to increase the energy security and therefore decrease the problem of importing dependency of European countries, 2) to decrease GHG emissions and 3) to promote economic growth, innovation and employment. In order to achieve these targets the use of renewable energy sources is crucial. Renewable sources of energy need to be carefully monitored in order to ensure their sustainability. Balance between sustainability and efficiency should be achieved. For these reasons the institutions at national and international level need to focus on green policies that aim to increase the world welfare on the long run.

In 2010 Europe imported more than half of its energy. Dependency is particularly high for oil (84.3% imported) and gas (62.4% imported). The main suppliers of these sources are Russia and Norway (EU, 2012). In 2010 the energy production of the European Union has reached 837 Mtoe (-14% compared to 1997). The largest share is produced through nuclear power (28%), followed by renewable sources and coal at 20% (see figure 1). Renewables have made an important step forward in this sense registering an increase of 11 percentage points compared to 1995. This fact confirms the increasing attention paid by the European Union for cleaner energy sources (EU, 2012). Figure 1: EU energy production by fuel 2010. Source: EU energy in figures 2012

On the consumption side as of 2010, the EU-27 generates 12.5% of its energy through renewable resources (Sturc, 2012). This share has grown steadily from 8.1% in 2004 and provides an optimistic view

on reaching the 20% target set for 2020. However, the differences among the 27 European countries are large. Leading examples in renewable sources are nations like Sweden and Estonia, whereas countries like the Netherlands and UK are still lagging behind more than ten points to the respective targets (Sturc, 2012). In 2010 wood and wood waste still represent the main renewable source for gross inland energy consumption (49%), this share has however decreased in the past two decades thanks to the progress of other sources such as wind power and biofuels (Sturc, 2012). In 2010 renewable sources generated 19.6% of the energy used for electricity and 14.3% for heating and cooling scoring a remarkable increasing magnitude (figure 2).

Figure 2: EU gross electricity (left) and heat (right) generation. Source: EU energy in figures 2012. The performance of the transportation sector has not achieved such standards. In transport, the share of renewables in 2010 is only 4.7% for the 27 European countries (Sturc, 2012). Transport is particularly important in terms of greenhouse emissions. In fact, with the Decision 406/2009/EC the European Union has set the target to reduce overall GHG emissions by 20% in 2020 compared to the level of 1990.

EU-27 GHG Emissions by sector in 2010

3% 6% 10% 7% 10% 12% 4% 19% 29% Energy Industries Manufacturing Industries and Construction Transport Commercial/Institutional Residential Industrial processes and solvent use Agriculture Waste and other

Figure 3: GHG emissions by Sector. Source: EC Energy country sheet 2012

Figure 3 shows how the transportation sector is very important in terms of greenhouse gas emissions in the European Union. It represents 19% of the total emissions in 2010, second only to the emissions coming from energy industries (EC, 2012). Moreover, the level of emissions has increased progressively during the last two decades. For these reasons a rapid intervention to invert this trend will be needed (Figure 4).

1.3 1.2 1.1 1 0.9 0.8 0.7 0.6

EU-27 GHG Emissions by Sector (1990=1)

199019911992199319941995199619971998199920002001200220032004200520062007200820092010 Energy Industries Manufacturing Industries and Construction Transport Commercial/Institutional Residential Industrial processes and solvent use Agriculture Waste and other Total GHG's Emissions

Figure 4: Evolution GHG emissions (1990=1). Source: EC Energy country sheet 2012

Finally, in terms of greenhouse gases and CO2 emissions, it is important to mention the increased attention paid by the policy makers on energy recovery from waste. Recent studies have demonstrated that incineration should be preferred over disposal in landfills (COWI, 2000). As a consequence, the European legislation has been trying to support investments in new highly efficient incineration plants that have the important advantage of low greenhouse gas emissions. In 2010 already four EU nations have reduced the net disposal in landfills to zero: Germany, Sweden, the Netherlands and Belgium (EurObservER, 2012). The energy recovered from the treatment of waste can be used to produce electricity or heating, with some plants being able to produce both.

References
COWI (2000). A Study on the Economic Valuation of Environmental Externalities from Landfill Disposal and Incineration of Waste. Brussels: European Commission. EC (2012). Country fact sheet 2012 V. 1.3. www.ec.europa.eu/energy/observatory/countries/countries_en.htm. EU (2012). EU Energy in figures. Statistical Pocketbook 2012. www.ec.europa.eu/energ. EurObservER (2012).Renewable municipal waste barometer. www.eurobserv-er.org. Stern, N. (2006) Review report on the economics of Climate Change. London: HM Treasury. Sturc, M. (2012). Renewable energy. Analysis on the latest data on energy from renewable sources.Eurostat, statistics in focus, 44/2012. www.epp.eurostat.ec.europa.eu/cache.