Investors need clarity for their investments in the future energy supply and for this reason, the Danish Energy Association supports the initiatives laid out in the green paper published by the Commission for an ambitious energy and climate framework towards 2030. A binding target for CO2 reductions at a minimum of 40 pct. and a structural reform of the EU ETS are necessary measures if the CO2 price is to increase and signal that investors in the future must invest in low-carbon technologies at the expense of coal.
In the response the Danish Energy Association emphasizes that the EU must take matters into their own hands and not compromise on a 2030 framework no matter the outcome of the international climate negotiations in Paris in 2015. If we are to promote investments in decarbonizing the energy sector an ambitious EU policy are more important than an international agreement. An ambitious EU policy will, all things being equal, result in growth and jobs in the clean-tech sector, benefitting also the energy intensive industry.
In the green paper, the EU Commission suggests binding targets for CO2, renewable energy and energy efficiency as was the case with the 2020 targets. The focus of the Danish Energy Association is that the division of labor and the dosage between a regulation of CO2, renewable energy and energy efficiency towards 2030 support each other and does not contradict.
The Danish Energy Association fully supports a CO2 target for 2030 at a minimum of 40 pct. and acknowledges that it might be necessary to supplement a CO2 target with a target for renewable energy in order to create predictable conditions for the planning of investments and to ensure that promising but not yet mature technologies is matured through an industrialization process. Furthermore, the Danish Energy Association supports an extension of the rationale behind the energy efficiency directive, which was agreed upon during the Danish presidency in 2012, from 2020 to 2030.
The Commission is expected to publish their final proposal to a 2030 framework for the energy and climate policy by the end of this year.