Welcome address by Thomas H A Schneider DG Energy and Transport

1. Advanced fossil fuel boiler technologies for reaching the goals of the Kyoto protocolOPET-Seminar Celje, 20-21 May 2004 Welcome address by Thomas H A Schneider DG Energy and Transport European Commission – Coal & Oil Unit

2. Global Policy Context Climate change • Johannesburg World Summit on Sustainable Development 2002 • EU set to decrease its GHG emissions by 8% in 2008-2012 compared to 1990 under the Kyoto protocol • Burden sharing agreement between Member States • On track so far, but target likely to be missed in ‘business as usual’ scenario • European Climate Change Programme has identified most promising and cheapest routes • EU Greenhouse Gas Trading Directive – trading starting Jan 05 • Adoption of a “linking” directive which transfers CDM and JI credits into the EU GHG trading directive

3. Total equivalent CO2 concentration (all greenhouse gases) in the atmosphere as a function of time – past data and projection according to the IPCC is92a scenario(subject to debate in GDP projections).

4. Global Policy Context Climate change - Post Kyoto • More drastic reductions will be needed • max. 2°C increase, max. 450 ppm(v) • 50 to 60% emissions reduction by 2050 • from developed economies (JI) • from economies in transition (CDM) • Fossil fuel use in developing economies to be tackled

5. EU Compliance with Kyoto Protocol % Shortfalls (+) or over-compliance (-) with policies currently in place Source: European Environ-ment Agency, 2003

6. Energy Policy Context Industry Competitiveness • EU industry must be placed in a position to compete in a post-Kyoto scenario addressing the emissions of developing countries

7. Energy Policy Context Scenarios and Projections (source : WETO) Still 90% fossil fuels worldwide by 2030

8. Energy Related CO2 Emissions(WETO - EC DG RTD)

9. GREEN PAPER : Strategy Issues • Security of supply risks • Containment of demand increase (“demand side management”) • Influence on supply dependence

10. EU ENVIRONMENTAL TECHNOLOGY OFFENSIVE : ETAP Key contribution of environmental technologies to sustainable growth in Europe and world wide • Efficient conversion of fossil fuels • International Cooperation • Priorities : Russia China India • In preparation : Latin America

11. ETAP– Climate Change (discussion paper) Key technologies on demand side – Households and Services • Building fabric • Integrated building design • Controls & building energy mgt systems • Heating, cooling & ventilation equipment • Energy efficiency equipment – office & do- mestic equipment • Lighting

12. Fossil and Renewable Energy Sources • CO2 C+S sometimes seen as fossil fuels back by the back-door • But projections indicate fossil fuels are here to stay and will be used, especially in economies in transition • RES need to be supported, but will not be sufficient in the short to medium term, both in developed and developing economies • RES and CO2 C+S are complementary • from a timing point of view • from a generation mix point of view • to ease the penetration of hydrogen as a vector

13. UNFCCC • This is in force, whatever happens to Kyoto Protocol • “The ultimate objective of this Convention and any related legal instruments that the Conference of the Parties may adopt is to achieve, in accordance with the relevant provisions of the Convention, stabilization of greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system. Such a level should be achieved within a time-frame sufficient to allow ecosystems to adapt naturally to climate change, to ensure that food production is not threatened and to enable economic development to proceed in a sustainable manner.”

14. Contact Thomas H A Schneider European Commission Directorate-General for Energy & Transport Coal & Oil Unit Rue de la Loi 200 – DM24 6/25 B - 1049 - Brussels - Belgium phone : 32-2-29-86236 fax : 32-2-29-64337 email : thomas.schneider@cec.eu.int