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Which energy policy for EU? Energy developments and challenges of climate change Ulla Sirkeinen

Which energy policy for EU? Energy developments and challenges of climate change Ulla Sirkeinen 6.3.2007. An optimal energy mix EESC Opinion. A diversified mix All options to be kept open Strategy towards more non-emitting sources Efficiency Renewables Nuclear – safety and spent fuel

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Which energy policy for EU? Energy developments and challenges of climate change Ulla Sirkeinen

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  1. Which energy policy for EU?Energy developments and challenges of climate change Ulla Sirkeinen 6.3.2007 Ulla Sirkeinen

  2. An optimal energy mixEESC Opinion • A diversified mix • All options to be kept open • Strategy towards more non-emitting sources • Efficiency • Renewables • Nuclear – safety and spent fuel • Clean coal • Framework for investments • Global post Kyoto solution • Increased R&D Ulla Sirkeinen

  3. Role of technology and innovationEESC draft report on energy policy • Only technology and other innovation provide real progress • Innovation = renewal, ideas in wide use, economic value • Technology, management, organisation • Industry, services, public administration • Energy technologies,and flanking technologies • energy efficient technologies • ITC • operation and management • behaviour Ulla Sirkeinen

  4. Conditions for innovationEESC draft report on energy policy • Skilled labour force • High class education and training, LLL • Competition • Market access – EU and globally • Network access • Investments – planning &authorisation, stable regulatory framework, long term agreements (?) • Level playing field on global markets • Ambitious targets – under certain circumstances: technology maturity, investment cycles • Regulation in some cases – overregulation not Ulla Sirkeinen

  5. Instruments to enhance innovationEESC draft report on energy policy • R&D funding : EU EUR 887million – US $ 4,4 billion to energy • Public awareness – behaviour • Price mechanisms, taxation: influence user’s choices • Subsidies: effectiveness? market distortions? • Targets and obligations: winners and loosers, IA.. No suboptimal subtargets • Regulation, bindíng norms: plan carefully, risk of stiflig innovation • Voluntary standards, agreements: varying results – no drawbacks • Public procurement: equip byers, life cycle analysis Ulla Sirkeinen

  6. Choice of instrumentsEESC draft report on energy policy • Far from markets, R&D-phase • Targeted R&D, demonstration support • Price signals not sufficient • Close to market, too costly • Price signal (CO2-price) • Support demand (regulation?) • Good product on market, low demand (ex. energy efficient technologies) • Awareness raising • Regulation (?) Ulla Sirkeinen

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