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<A name=1></a> <br>
<b> </b><br>
Foundation 2° - Response to EC consultation <br>
„A 2030 framework for climate and energy policies“ <br>
<b> </b><br>
<b> </b><br>
<b> <br>Response to the European Commission’s consultation on <br>a 2030 framework for climate and energy policies <br></b> <br><b> <br> <br> <br> <br> <br> <br>Stiftung 2 Grad / Foundation 2 Degrees <br></b>German CEOs for climate protection <br>Linienstraße 139/140
 <br>Aufgang B, 5. OG
 <br>10115 Berlin <br>Transparency Register ID number 539593110251-28 <br> <br><b> <br> <br> <br> <br> </b><br>
<b> </b><br>
<br> <br> <br> <br> <br> <br> <br>Through the Foundation 2°, German CEOs show their long-term commitment to <br>climate protection. We welcome the green paper on a 2030 energy and climate policy <br>framework, as it opens a debate on the transition to a low-carbon economy. Targets <br>for 2030 are necessary – but a vision beyond that date already needs to be sketched <br>if we are to achieve the EU’s ambition to cut its greenhouse gas emissions by 80-<br>95% by 2050. Without such a cut, avoiding an average global warming of over 2° <br>would no longer realistically be within reach. <br> <br> <br> <br><b> <br> <br> <br> <br> <br> <br> </b><br>
<br>
<hr>
<A name=2></a> <br>
<b> </b><br>
Foundation 2° - Response to EC consultation <br>
„A 2030 framework for climate and energy policies“ <br>
<b> </b><br>
<b> </b><br>
<b>Which lessons from the 2020 framework and the present state of the EU energy <br>system are most important when designing policies for 2030? <br></b> <br>The 2020 framework set three key targets: reducing GHG emissions by 20% <br>compared to 1990 levels; boosting the share of renewable energy sources to 20% of <br>the overall EU energy mix, and cutting overall energy consumption by 20% in <br>comparison with 2005 projections - all this by 2020. These targets should serve to cut <br>the EU’s GHG emissions as part of an international effort to tackle climate change, <br>secure energy supply and support growth, competitiveness and jobs. <br> <br>As the Commission starts working on a climate and energy framework for 2020-2030, <br>the 8 years lapsed since the adoption of the 2020 package allow us to draw lessons. <br> <br>
- Long-term predictability is crucial for investments <br>
Large investment decisions are made with decades in mind for the calculations of <br>returns. Such heavy investment decisions, e.g. in infrastructure, will only be met <br>today if there is sufficient trust in the stability of the policy framework – which calls for <br>consistency over time. In addition, such decisions can have an impact on the climate <br>well beyond 2030, for instance when it comes to the building sector. A stable policy <br>framework is central to foster a positive investment climate. More bluntly said, as <br>long as the policy framework is uncertain, investment simply doesn’t materialise. <br><b>We call on the EU to look beyond 2030 and set itself binding climate and <br>energy targets for 2040 and 2050 to that end. <br></b> <br>
- Market-based mechanisms are the most cost-efficient way to organise the <br>
EU’s climate and energy framework, but are disserved by blind adherence to a <br>non-intervention principle. <br>
The EU’s flagship climate policy, the ETS, has succeeded in cutting GHG emissions <br>to date – but it has failed to incentivise the transition to a low-carbon economy. <br>Worse, the current surplus of almost 2 billion allowances on the market has caused <br>their price to plummet to around 10% of the level predicted when the policy was <br>designed. This price level is so low that it encourages investments locking us in a <br>high-carbon economy. For instance, building coal-fired power plants currently makes <br>more sense than switching to gas. <br> <br>The Foundation 2° supports the use of market-based mechanisms to organise <br>climate protection, as they leave the private sector much more freedom than <br>regulation and are a cost-efficient way of incentivising climate-friendly solutions. <b>But <br>we are extremely concerned that non-intervention is depriving the ETS of any <br>sense and driving us fast towards a point where national government impose <br>national frameworks</b>. Letting the only market-based climate policy instrument fail <br>sets a dangerous precedent of showing that only regulation can achieve goals in this <br>field. The costs of complying with a patchwork of climate policies will bear no relation <br>to that of saving the ETS. Before free-market principles can be applied, functioning <br>markets are needed. <br><b> <br>We call on the European institutions and national governments to address the <br>surplus of allowances on the market in order to allow it to fulfil its double <br>function – cutting GHG emissions and incentivising a transition to a low-<br>carbon economy. </b><br>
<br>
<hr>
<A name=3></a> <br>
<b> </b><br>
Foundation 2° - Response to EC consultation <br>
„A 2030 framework for climate and energy policies“ <br>
<b> </b><br>
<b> </b><br>
<br>
- Binding targets are more effective than indicative ones <br>
The Commission’s own assessment of the three headlines 2020 targets is that the <br>GHG reduction target will be surpassed; that the renewables energy target may still <br>be met; but that the energy efficiency one, which was initially given no constraining <br>legislative framework and had to wait until 2012 to see a binding legal instrument to <br>organise it, will be missed. <br> <br>
- Conditional targets are not effective. <br>
Implementing an ambitious climate and energy policy cannot sustainably happen in a <br>vacuum. Although the EU’s historic responsibility for climate change means it must <br>also carry more of the efforts to tackle it, it is currently only responsible for 8 to 10% <br>of the world’s GHG emissions. Therefore, its efforts to tackle climate change need to <br>convince and inspire others to also move towards a low-carbon economy. Coalitions <br>are needed at international level to tackle climate change. EU efforts alone simply <br>cannot have enough of an impact on climate change. <br> <br>What has unequivocally failed to convince others is conditionality in climate targets. <br>The EU’s pledge to cut its emissions by 30% by 2020 if other major economies made <br>similar efforts did not convince others to step up their efforts. <br> <br>What has inspired others, however, are green technologies and sustainable jobs; <br>similarly, innovative climate policy frameworks such as emissions trading are now <br>also being replicated beyond EU borders. Climate and energy frameworks which <br>incentivise low-carbon technologies and reward sustainable solutions and energy <br>efficiency, are a surer way of adressing climate change than conditional <br>commitments. <br><b> <br>We call on the EU to unconditionally commit to a high level of ambition. <br></b> <br><b>Targets <br></b>Which targets for 2030 would be most effective in driving the objectives of climate <br>and energy policy? <br>Past experience shows that binding and unconditional targets are the most effective <br>at delivering results. <br> <br>The Foundation 2° supports the three pillars of the EU climate and energy package. <br>We believe that streamlined energy consumption, sustainable energy production and <br>lower GHG emissions are all necessary to limit average global warming to 2°, a <br>threshhold over which adaptation costs would create untold human misery, <br>undermine political stability and cripple the economy. <br> <br>We call for policymakers to endorse the following targets – and make <b>them binding, <br>unconditional and domestic</b>: <br> <br>
- <b>a 45-55% reduction of GHG emissions in comparison with 1990 by 2030; </b><br>
<b>and 65-75% by 2040. </b>These are necessary to maintain the possibility of <br>achieving the higher end of the EU’s 80-95% decarbonisation target range by <br>2050 – without which the 2° limit is likely to be overtaken, as explained by the <br>IEA and the World Bank. The Foundation 2° believes that a tightened up ETS <br>
<br>
<hr>
<A name=4></a> <br>
<b> </b><br>
Foundation 2° - Response to EC consultation <br>
„A 2030 framework for climate and energy policies“ <br>
<b> </b><br>
<b> </b><br>
will be the most cost-effective way of achieving these reductions, and calls on <br>the Commission to urgently propose a structural reform addressing the surplus <br>of allowances. <br>
80<br>
70<br>
60<br>
50<br>
40<br>
30<br>
20<br>
10<br>
0<br>
2020<br>
2030<br>
2040<br>
2050<br>
Lower ambition course<br>
Higher ambition course<br>
Commission<br>
<br>
<br>
- <b>a binding and ambitious target for the share of RES in the EU energy mix </b><br>
<b>by 2030</b> is needed to ensure that the current take-up of RES continues. <br>Targets (declined into national targets reflecting the different capacities of <br>various member states) are also needed for 2040 and 2050. <br>Cutting renewables subsidies in Spain has led to a complete collapse of the <br>market there, despite the obvious potential of e.g. photovoltaic. To avoid a <br>similar effect across the EU, long-term political commitment to sustainable <br>heat and power production needs to be reaffirmed beyond 2020. <br>The benefits of boosting sustainable and domestic energy production in times <br>of growing imports dependency and rising energy prices cannot be overstated <br>for security of supply and economic development as well as to fight climate <br>change. <br>
- <b>a minimum 30% target in energy efficiency</b> to take into account the short <br>
timeframe between the implementation of the energy efficiency directive and <br>the adoption of the 2030 framework. Significantly more ambitious figures are <br>needed for 2040 and 2050. The Foundation 2° prefers binding targets to <br>binding measures that restrain entrepreneurs’ freedom. <br> <br>
Flexibility is needed to accomodate economic and technological developments, so <br>that setting 2030, 2040 and 2050 targets may appear cumbersome and risksy. <br>However, the current lack of predictability of the EU’s overarching goals in energy <br>and climate policy urgently needs to be addressed, as it hinders and delays <br>necessary investment. <br> <br>We look forward to continuing our dialogue with policymakers to define the <br>instruments necessary to achieve the objectives set out above. <br> <br>
<br>
<hr>
<A name=5></a> <br>
<b> </b><br>
Foundation 2° - Response to EC consultation <br>
„A 2030 framework for climate and energy policies“ <br>
<b> </b><br>
<b> </b><br>
<br><b> <br> <br> <br>Contact details: <br></b>Sophie Heitz <br>Climate Policy Officer <br>Stiftung 2 grad/ Foundation 2 degrees <br>sophie.heitz@2grad.org <br>+49 (0)30 2021 4320 <br>www.stiftung2grad.org <br> <br>
<br>
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<A name=1></a>3M (Europe) <br>Hermeslaan 7 <br>B – 1831 Diegem (Brussels) <br>Belgium <br>Contact: Maxime Bureau <br>mbureau@mmm.com <br>ID in TR: 91425447458-88 <br>
<b> </b><br>
<b>3M Response to the EC Public Consultation </b><br>
<b>on a 2030 framework for climate and energy policies </b><br>
<b> </b><br>
General <br>
3M is a global technology company with nearly 20,000 people in Europe as well as more than 50 <br>manufacturing sites and 18 research &amp; development centers in this key region for the company. 3M has <br>a diversified portfolio of innovative solutions in healthcare, energy, water, transportation, security and <br>communications. In particular, 3M develops sustainable alternatives in the areas of power generation, <br>transmission and distribution, e-Mobility, energy storage, smart buildings, and ICT. <br>
In discussing the future EU climate and energy policy, 3M believes it is critical that its objectives are <br>clearly identified and well understood. Binding targets, e.g. for energy efficiency and renewable <br>energies, as well as instruments such as the EU Emissions Trading Scheme (EU ETS) closely aligned with <br>other climate policies should be the key components of any post-2020 Climate and Energy framework. <br>
A long-term and predictable policy environment is key for companies to be successful in Europe and will <br>restore confidence in the region. In order to achieve the EU’s emission reduction objectives and to <br>stimulate low carbon investments, there should be continuous targeted support and public funding <br>focused on research and development (R&amp;D) of low-carbon technologies. In this respect 3M would like <br>to see more coherence between EU level objectives and national support schemes, as well as better <br>implementation of EU legislation at national levels. <br>
Last but not least, there should be a global approach to reducing greenhouse gas (GHG) emissions. In <br>this respect the EU should strengthen its efforts to convince other major countries to commit to <br>ambitious GHG reduction targets. To this end 3M supports the on-going United Nations Framework <br>Convention on Climate Change (UNFCCC) negotiations aimed at reaching an international agreement by <br>2015 and will engage with stakeholders at the upcoming COP-19 meeting in Warsaw this November. <br> <br>
<br>
<br>
<br>
1 <br>
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<hr>
<A name=2></a>3M (Europe) <br>Hermeslaan 7 <br>B – 1831 Diegem (Brussels) <br>Belgium <br>Contact: Maxime Bureau <br>mbureau@mmm.com <br>ID in TR: 91425447458-88 <br>
<br>
<i>Which lessons from the 2020 framework and the present state of the EU energy system are most <br>important when designing policies for 2030? </i><br>
<i>Energy Efficiency </i><br>
The EU is not capturing the vast potential for energy savings and efficiency in many sectors, particularly <br>in the buildings sector and on the supply-side that include power generation, transmission and <br>distribution. 3M believes the economic potential of energy savings and efficiency in EU Member states <br>should be a bigger political priority and more should be done to ensure its implementation through <br>national allocation plans. This would create local jobs, savings in public budgets and reduce energy <br>import dependency. <br>
The EU needs to properly calculate the long-term risk and missed opportunities from not focusing on <br>energy efficiency. Progress towards 20% target has been limited, due to low prioritization by Member <br>states. This is especially seen in the building sector, which accounts for 41% of Europe's energy <br>consumption. Studies indicate that the deep renovation of Europe's existing building stock can bring up <br>to a 32% saving of the total primary energy used in Europe and there are many already existing <br>sustainable solutions, such as window films, which can significantly increase the energy performance of <br>buildings through solar heat absorption and reduced heat loss. 3M would like to encourage the EU and <br>Member states to recognize that the environmental effects of cooling can be at least as significant as <br>those of heating and should be included in guidelines related to energy saving to help targets to be met. <br>
<i>Renewable Energy (RES) </i><br>
The 2020 climate and energy framework, including its binding renewable energy targets, has provided <br>the energy sector with the necessary stability and predictability. The EU should continue those policies, <br>which have proven to be successful in ensuring the market deployment of RES technologies and large-<br>scale cost decrease. In order to expand the use of wind and solar power in the grid, it is essential to <br>increase the current capacity of electricity storage facilities and develop systems to deal with excess <br>power created due to weather conditions, but not needed immediately. <br>
To increase the amount of renewable energy power used in the network, it must be effectively <br>transmitted and distributed. The expansion of small distribution systems is essential and regional <br>utilities need to invest in new power plants, photovoltaic energy sources and wind turbines to integrate <br>these into the network. It is essential to ensure the further development of energy infrastructure, along <br>with more consistency and coherence between EU level objectives and national support schemes. <br>
<br>
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2 <br>
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<A name=3></a>3M (Europe) <br>Hermeslaan 7 <br>B – 1831 Diegem (Brussels) <br>Belgium <br>Contact: Maxime Bureau <br>mbureau@mmm.com <br>ID in TR: 91425447458-88 <br> <br>
Apart from the construction of new power lines or retrofitting of existing ones, Smart Grids are needed <br>to provide the missing link enabling the intelligent networking of producers and consumers. These <br>modern power networks will bring reliable renewable energy to customers. Consumption in households <br>and businesses can then be adapted to optimize the most convenient times and network loads. Keys are <br>to ensure reliable production of electricity, enhance the existing utility grid, improve the efficiency of <br>the power network, make homes and businesses more energy efficient and reduce emissions. <br>
Targets <br>
EU level targets are essential, as they send a broad strategic message and encourage investors to take <br>advantage of the single market’s economies of scale. To be most effective, targets must be set for a long <br>timeframe, be simple, clear and binding in order to be implemented. Consistent with the long-term 2050 <br>objectives of the 80-95 % CO2 reduction target, <b>3M supports an ambitious economy-wide GHG <br>reduction target for 2030</b>, together with energy efficiency and RES being recognized as key policies to <br>be promoted. Apart from extensive CO2 reduction levels, the EU should also focus on phasing-out other <br>highly potent GHG emissions, such as F-gases, for example. <br>
<b>Future climate and energy policies should continue on the basis of a three-target approach</b>. However, <br>in order to avoid any potential discrepancies between them, as well as to encourage synergies, the EU <br>should ensure that all three targets are set at the right level of ambition and opt for in-built safety <br>measures, in order to ensure their coherence. <br>
EU targets could be broken down at national level to provide Member states with some flexibility on the <br>strategy to reach the set targets and ensure their legal responsibility. There should also be more <br>coordination between the EU and Member states vis-a-vis implementation. Lack of coordination at EU <br>and Member state level have in some cases led to support schemes which have not been cost-efficient, <br>raised the financial burden on consumers and affected competitiveness. <br>
Specific efforts should be made with respect to the transport sector, still a growing source of GHGs. In <br>the White paper on Transport published in 2011 the Commission called for a reduction of at least 60% of <br>GHGs in the Transport sector by 2050 (20% by 2030). In order to build a competitive and clean transport <br>system for the next decade, the climate and energy framework should include also aspects of <br>electrification of the transport (especially automotive) sector and promote further environmentally-<br>friendly and efficient solutions in reaching the GHG (CO2 reduction) target. <br>
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<A name=4></a>3M (Europe) <br>Hermeslaan 7 <br>B – 1831 Diegem (Brussels) <br>Belgium <br>Contact: Maxime Bureau <br>mbureau@mmm.com <br>ID in TR: 91425447458-88 <br> <br>
Instruments <br>
The EU Emissions Trading System (ETS) is the flagship policy in the EU’s climate and energy framework <br>which is now being imitated by other international players (e.g. China, Australia). In order for it to <br>remain the key instrument of ensuring emission reductions at the lowest cost to the economy, it should <br>be revised in light with the post-2020 EU policy objectives. Structural reform measures are needed for <br>the EU ETS to be able to take into account unforeseen (economic) developments and to attract further <br>low carbon investments. <br>
At the same time, the EU should also allow for the continuation of other innovative financial <br>instruments and ensure a strong coordination between EU level instruments (such as EU ETS) and <br>national support schemes (such as feed-in tariffs). Any instruments should be brought in line with the <br>overall CO2 reduction target.<b> </b><br>
EU climate and energy policy in the future should be addressed in conjunction with EU industrial policy <br>and should recognize and support both current and future opportunities for industry to provide low <br>carbon technologies and solutions. To keep its front-runner advantage in developing low carbon <br>technologies on a commercial scale, a real industrial policy would strengthen further local investments. <br>Such a policy should be based on: <br>
o Implementing a transparent and efficient European energy market that provides an <br>
attractive investment climate; <br>
o Ensuring investment security through a stable and favorable policy framework with long-<br>
term 2030 binding targets; <br>
o Setting high standards through qualitative public procurement processes (rules) to leverage <br>
already existing sustainable technologies; <br>
o Simplifying sustainable support schemes, streamlining administrative procedures and <br>
implementing efficient grid connections; <br>
o Using the new energy infrastructure package - notably the Connecting Europe Facility (CEF) <br>
as well as the structural funds to support the realization of the climate and energy targets. <br>
<br>An ambitious Climate and Energy framework for 2030 should be a key driver for R&amp;D and innovation. By <br>2030, Europe needs to have developed, demonstrated and deployed a wide range of low carbon and <br>energy efficient technologies. Programs should not only target research but also demonstration in order <br>to shorten the time to commercialization for the most promising technologies. Main areas of action <br>should also focus on the cost and energy efficiency aspects by promoting the retrofitting solutions, <br>which can upgrade the already existing networks, technologies and products - for example in energy <br>transmission as well as buildings. Financial instruments should be adapted to the 2030 objectives and <br>support the deployment of innovative energy projects. <br>
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