EU agrees final targets for renewables and energy saving

• 5 years ago (2018-06-21)
• David Flin

Europe 1061 Renewables 751

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The EU has finalised new climate rules after months of talks, targeting a total energy saving of 32.5 per cent and an increase in the share of renewable energy to 32 per cent by 2030. National governments must now draft their own plans for implementing the bloc’s overall climate goal of lowering greenhouse gas emissions by at least 40 per cent below 1990 levels by 2030, in line with the Paris Agreement.

Talks to reach a compromise solution between the European Parliament and EU member states on the new energy efficiency and renewable energy targets after 2021 and the rules governing implementation had gone on for several months. Member states were wary of a push by lawmakers for more ambitious targets and stricter monitoring of efforts, fearing the potential impact of efforts to reduce emissions. The final deal includes a clause allowing the EU to revise up climate goals in 2023.

Analysts at Thomson Reuters said the change to the renewable target is likely to impact future carbon prices in Europe’s Emissions Trading System (ETS). The analysts said that they expect carbon emissions from the power sector to be 700 million tonnes, or 6.5 per cent lower, than previously forecast by 2030. Lower emissions mean that there will be less demand for carbon permits in the ETS, leading the analysts to cut their carbon price forecast for 2030 by €6 to €29 a tonne.