Working Breakfast “The Future EU Climate and Energy Policy: Political Ambitions vs. Reality”

On March 4th 2014 SME Europe together with the Austrian Chamber of Commerce was organizing a Working Breakfast on “The future EU Climate and Energy policy: Political Ambitions vs. Reality” in the Salon de Membres of the European Parliament.

Dr. Paul RÜBIG, MEP opened the event by stating that beside the other three aims of the European Energy plan, namely reduction of CO2 emissions, a rise in the quota of renewable energy and more energy efficiency, there should be a third one: an increase of the industry quota to 20% of the national GDPs. He pointed out that Germany and Austria through having a very high industry quota are economically better off especially considering the unemployment rate than Greece and France, with a very low percentage of industry. He also praised the Austrian climate policy for its innovativeness compared to European Standards.

Eric MAMER, assistant Chief of Cabinet of the Commissioner for Energy Günther Oettinger, presented the viewpoint of the Commission. He stated that one of the current benchmarks of the Commission is to build up a 20% quota of renewable energy until 2020. After 2020 the Commission plans that such quota should only be binding for the European Union in total, leaving it up to the individual member states how to contribute to achieving this aim. Mr. MAMER however warned that this flexibility also leaves the member states the choice the use nuclear energy. He highlighted that in many economic sectors the level of CO2 emissions has to be reduced, mentioning as example transport, where a reduction by 20% has to take place until 2020. For Industry, where a reduction of 25% until 2020 is aimed by the Commission, this means that many investions are necessary, he estimated that 40 billion € would have to be used to achieve the necessary technical changes for reducing CO2. Mr. MAMER stated that the challenge for the future will be to promote these investions. He also mentioned that Europe will have to tackle its rising costs for energy to be competitive in the international market again, especially comparing to the low energy cost in the US.

The Minister of agriculture, environment and water economy of Austria, Andrä RUPPRECHTER admitted the high importance of discussion between all involved stake holders in these areas. He criticised the still high dependance on fossil fuels, highlighting the importance of a successful energy turnaround but also warning against a renaissance of nuclear energy or a return of coal power stations. Mr. RUPPRECHTER stated that it would be necessary to formulate a common European position for energy and climate to be able to engage acitively in the international energy and climate debate and make an impact also on Non-European countries. For Austria he proposed to not only achieve renewable energy of 30% but of 40% of the whole energy consumption and pointed out that the use of water as an energy source will be of high relevance in that process.

Dr. Hans-Peter MAYER, MEP added to the speech of Mr. RUPPRECHTER, that although he supports the energy turnaround he is concerned about the means emploed to achieve that goal. He warned against to much speed in bringing about the energy turnabout and pointed out that the climate and energy benchmark have to be possible to achieve.

Rudolf ZROST, chairman of the industry division of the economic chamber of Salzburg, represented the economic viewpoint on this matter. He emphasised that at the current state of technical development the proposed further reduction of CO2 is technically impossible. Industry will need many exception from the current proposed legal framework to continue working effectively and competitively on the international market. He highlighted that especially SMEs are suffering drawbacks from the current operating system of CO2 certificates, which you have to buy if you emmit above the allowed CO2 benchmark. This system would disturb competition and lacks efficancy when it comes to motivating companies to reduce their emissions, since the CO2 certificates are available at a very low price. Mr. ZROST proposed the introduction of a European CO2 tax to tackle the current problems.

Jürgen HABENBACHER of the Wienerberger AG mentioned the importance of energy and climate policy for the business location Europe. Industry is important to promote the competitiveness of Europe on the international market, therefore although a reduction of CO2 should be achieved, it has to be on a level which is technically and financially possible. Currently the benchmarks set by the Commission are to high, that is why industry is dependant on a exception to be able to function. Mr. HABENBACHER pointed out the danger of the huge price gaps in energy prices between the EU and the US or Russia, but also within the EU. He emphasised the importance of industry for Europe, since a funtioning Industry will lead to economic growth, high employement and more jobs.

Judith MERKIES, MEP added to the nuclear debate, stating that although the Netherlands and Germany are currently reducing their nuclear power plants, the development in the Eastern European countries goes into the opposite direction. She mentioned that each state has a very national viewpoint on energy and climate, which makes the debate on the European level increasingly difficult. She also warned from the big influence Germany has on the energy debate, since Germany’s decision to achieve the energy turnaround impacted nearly all European countries. Mrs. MERKIES pledged for more harmonisation in the European taxation system, because the energy debate can only be tackled through Europe wide taxes.

The presentations were followed by a lively discussion.