Energy consumption in the European Union is rising, mainly because of transport growth. Energy efficiency is improving only slowly and renewable energy usage needs to expand by at least double the current rate if targets for boosting its market share by 2010 are to be reached
These are among the main conclusions from the European Environment Agency's first report on energy and the environment in the EU.
"The report shows that, while there have been some successes, overall progress in building environmental protection needs into energy policy has so far been insufficient," said Domingo Jiménez-Beltrán, EEA Executive Director. He added: "It also demonstrates that some countries and sectors in the EU are doing much better than others. And there is scope for further improvement even in areas where the EU is already ahead of the United States, such as the energy intensity of the economy and emissions of climate-altering greenhouse gases."
EU emissions of greenhouse gases fell by 3.5 per cent between 1990 and 2000, but without additional counter-measures they are likely to rise to their 1990 level by the year 2010, because of a projected increase in energy-related emissions. The EU's target, set under the Kyoto Protocol, is to cut ghg emissions to 8 per cent below their 1990 levels by the 2008-2012 period.
Furthermore, energy consumption levels are expected to continue increasing beyond 2010. This will make ghg emission cuts difficult to achieve unless policy action is taken now to change long-term patterns of energy production and consumption.
Despite increases in energy taxation, most energy prices in the EU have fallen since 1985. The report warns that this trend discourages energy saving efforts and may even encourage energy consumption unless policies are put in place to improve energy demand management and integrate energy's 'external costs - to the environment and human health - into its price. The external costs of electricity, for example, are estimated at 1-2 per cent of the EU's GDP.
Other main findings included:
• Energy prices fell between 1985 and 2001, while overall energy demand increased.
• Subsidies continue to distort the energy market in favour of fossil fuels.
• Spending on energy research and development fell by around 30 per cent between 1990 and 1998.
• Energy consumption rose by 1.1 per cent a year between 1990 and 1999.
• The share of electricity produced from combined heat and power increased from 9 per cent in 1994 to almost 11 per cent in 1998, and then declined slightly. Faster growth is needed to meet the EU's target of 18 per cent by 2010.
• The environmental impact of fossil fuels has been limited by a switch from coal and lignite to natural gas expected to continue until 2010.
• Renewable energy output grew by an average 2.8 peer cent per year between 1990 and 1999 but its share of total energy consumption grew only slightly, from 5.0 to 5.9 per cent.
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