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EU SUSTAINABLE ENERGY WEEK

EU SUSTAINABLE ENERGY WEEK. 24-28 JUNE 2013. Renewable Energy and Just Transition . Benjamin Denis . Energy. Plan. ETUC key messages on climate and energy Energy landscape Job potential Austerity and investment crisis Price issue. 1. ETUC key messages on climate and energy.

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EU SUSTAINABLE ENERGY WEEK

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  1. EU SUSTAINABLEENERGY WEEK 24-28 JUNE 2013 Renewable Energy and Just Transition Benjamin Denis Energy

  2. Plan • ETUC key messages on climate and energy • Energy landscape • Job potential • Austerity and investment crisis • Price issue

  3. 1. ETUC key messages on climate and energy • A socially-just de-carbonisation combining environmental ambition with a social dimension • -80 to -95 % of GHG in 2050 for the EU compared to 1990 with adequate intermediary milestones for energy efficiency and renewables • Investment is crucial, austerity is undermining the transition • Energy should not be dealt with as if a normal commodity

  4. Four requirements regarding EU energy policy

  5. 2. Energy landscape • World energy demand is expected to increase by one third by 2035 (WEO 2012) • EU imports +/- 55 % of its needs (Eurostat) • EU is highly dependent on external suppliers: • 83 % of oil imported • 64 % of gas imported • Low-carbon roadmap for 2050: • Switching to domestically produced low carbon energy sources will reduce the EU's average fuel costs by between € 175 billion and € 320 billion per year • Without action the bill for oil and gas imports could instead double compared to today, a difference of €400 billion or more per annum by 2050, the equivalent of 3% of today's GDP

  6. Specific recommendations • Energy dependency must be reduced in a sustainable way! • Diversification of energy sources. (Reinforce the RE Directive with enhanced national targets). • European support for the development of appropriate technological solutions (inter alia storage, smart grids). • Promotion of energy savings and energy efficiency. (Introduction of objectives for 2030). • GHG emissions’ reductions via appropriate price signals. (ETS reform using set-aside mechanism). • Fight against energy poverty - heating and mobility. (Social criteria in the ETD and EED)

  7. 3. Job potential • 1.2 million people work directly or indirectly in the renewables sector in the EU (EREC 2012) • Potential : 2020 = 2,7 Mio; 2030 = 4,4 Mio • Export potential and technology leadership But: • Unfair trade practices should be tackled (e.g. Chinese solar panels) • Green skills for the workforce must be developed (update of curriculae, training and re-qualifying programmes) • Decent jobs: salary, working conditions, health and safety standards

  8. 4. Austerity and investment crisis undermine the transition • Low-carbon roadmap 2050: “This represents an additional investment of around 1.5% of EU GDP per annum on top of the overall current investment representing 19% of GDP in 2009” • ETUI Benchmarking 2013: « The main reason for the large drop last year was that many governments in industrial nations slashed subsidies for technologies ranging from wind turbines to solar power and biomass »

  9. Global total new investment in clean energy (2005-2012) Source: BNEF, 2013

  10. New investment in clean energy 2012 (USD bn), 2012/2011 change (%) Source: BNEF, 2013

  11. 5. Price issue • Energy poverty and de-industrialisation are major sources of concern for trade unions • Status quo is not the answer • Shale gas and over-extension of ancient nuclear power plants are at odds with precautionary principle • In the short term, the following instruments should be used to mitigate the cost of the energy transition: • Provisions of the ETS Directive (art 10 a (6)) • Social tarifs and support devices for vulnerable households • Border adjustment mechanism (as a last resort) for energy-intensive industries exposed to a significant risk of carbon leakage from companies that do not have to comply with the same environmental standards • Phasing out of fossil fuel subsidies • Support for energy savings and energy efficiency • In the longer term, innovation and timely investments will reduce the cost of decarbonisation

  12. Going beyond … • Resolution on the energy strategy for Europe 2011-2020 http://www.etuc.org/a/7953 • Putting just transition into action in Europe and globally: ETUC position towards Qatar COP18 http://www.etuc.org/a/10041 • Green Workplaces a guide for union representatives http://www.etuc.org/a/10377

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