Green Energy/Technology Companies

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EU renewables deal in doubt?

Stop press: Deal agreed - story will be updated shortly.

BRUSSELS, BELGIUM, December 11 2008. Despite widespread celebration and media reports that complex negotiations surrounding the EU renewable energy directive had apparently been brought to a successful conclusion with a deal done and dusted, those close to the process aren't taking anything for granted.yet.

And it seems that they are right to be cautious - as rumours surface that Austria has thrown a last minute spanner in the works. According to European Renewable Energy Council (EREC), the Austrian Government has decided to question the Austrian national objective of 34% of renewable energy share in final energy consumption by 2020, and thus "put at [risk] the agreement on the RES Directive reached by the Council, the European Parliament and the European Commission".

This would come with massive disappointment after the past few weeks' frenetic activity. There had been initial fears that some major sticking points would not be resolved before the end of the French Presidency in a few weeks time, but on this front at least the fear seems to have been unfounded. A controversial 2014 "review clause"- demanded by the Italians and the source of much anger from renewables activists who saw this as a potential red light to those that would invest in the renewables sector - has apparently made the final cut. But crucially all individual Member State targets (not to mention the headline 20% by 2020 target) are set in stone and cannot be changed, regardless of the clause.

On trade, Member States will be able to decide themselves whether (and to what extent) they will engage with other Member States, rather than have mandatory trading forced upon them, something that could have endangered national support schemes. And also on the thorny issue of biofuels a compromise of sorts has been thrashed out, say sources: the 10% transport target has been retained, but this will include cars and trains running on electric power (electric cars count 2.5 times towards the target due to increased efficiency), while the European Commission is to report within two years on the impact on land use of biofuels and on their "sustainability."

With this in mind, there had been widespread reporting of a "successful conclusion to the negotiations" from lobby and industry groups and NGOs, but some advise caution, pointing out that until the new document has been ratified by Heads of State, last minute problems and negotiating positions - such as that from Austria - are still likely to arise. But with COP 14 taking place this week in Poznan, Poland, EU ministers are now being urged to put an end to the speculation and quickly sign up to the Renewables Directive, something that will see Europe serve as an example to the world on what needs to be done to seriously help address climate change.

"The Renewables Directive is a breakthrough for the deployment of renewables in the EU providing binding EU targets and a stable long-term investment framework," highlights Dirk Hendricks, Director of the EU Liaison Office of the World Future Council, "Heads of EU Governments need now to stick to their commitment."
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