The European Union is on track to meet its carbon emissions reduction target but will struggle to meet renewable energy targets, according to a new report.
Capgemini’s latest European Energy Markets Observatory (EEMO) shows that the economic recession has helped to produce a drop in greenhouse gas emissions from the 27-nation bloc, but is causing problems for project finance flow to renewable energy projects.
The EEMO – an annual report that tracks developments in the EU’s electricity and gas markets – also examines Europe’s energy security and progress towards energy reduction consumption, a non-compulsory target in Europe’s energy legislation.
Capgemini’s analysis indicates that total European carbon dioxide (CO2) emissions fell by seven per cent in 2009 owing to the economic recession as well as national legislation.
The EU is close to achieving its Kyoto target for greenhouse gas emissions, and emission targets set out in the EU’s 20-20-20 policy should be met or even surpassed due to “a continued soft economy and industrial plants moving outside Europe”, says Capgemini.
Renewable energy growth continued in 2009 but “the pace of change is currently not quick enough to reach the EU’s target of 20 per cent renewably sourced energy in the energy mix by 2020”, according to Capgemini. Moreover, the financial crisis has decreased the flow of finance for renewable energy projects while austerity plans have pushed governments to reduce their support for solar and wind energy.
Capgemini’s report also indicates that Europe’s energy consumption goal “looks challenging”. The target – reducing primary energy consumption from 1750 Million Tons of Oil Equivalent (Mtoe) in 2005 to 1520 Mtoe in 2020 – will require significant reduction from sectors such as buildings and transportation – sectors that have long lead times and multiple and dispersed stakeholders.
“2020 could be too tight a timeframe for these measures to make enough of an impact,” says Capgemini. “In addition, significant investments, innovation and technology breakthrough (such as electrical batteries) will be required.”
EEMO also shows that although overall electricity and gas security of supply increased in 2009, more peak generating units, cross-border interconnections and demand response programmes are needed in Europe in order to guarantee supplies during extreme events.
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