GREEN PAPER Framework for climate change policy and energy policy until 2030

The EU has defined a clear framework for its climate change and energy policy until 2020. This framework includes different policy objectives, for example reducing greenhouse gas emissions (GHG), securing energy supplies and promoting growth, competitiveness and employment through cutting-edge technology and cost-effective resource-efficient concepts. These policy objectives are to be achieved through three main targets that relate to the reduction of emissions GHG, energy from renewable sources and energy savings. Additional targets were set for energy used in the transport sector. At the same time, the EU has put in place a regulatory framework to drive the creation of an open, integrated and competitive single energy market that promotes security of energy supply. While the EU is making convincing progress in reaching its 2020 targets, creating a single market and meeting other energy policy objectives, the time has come to consider a new framework for climate change and energy policy until 2030. Early agreement on the 2030 framework is important for three reasons:

· First, long investment cycles mean that infrastructure financed in the next few years will also be in service in 2030 and beyond. Investors therefore need certainty and reduced regulatory risk.

· Second, clarifying the 2030 targets will support progress towards a competitive economy and a secure energy system, as it will create even greater demand for energy-efficient and low-carbon technologies and support research, development and innovation that can create new opportunities for growth and employment. This reduces direct and indirect economic costs.

· Third, although negotiations on a legally binding international agreement to mitigate climate change have been difficult, the adoption of such an international agreement is nevertheless expected by the end of 2015. Before that, the EU will have to agree on a number of issues, including the level of its own ambitions, in order to actively engage in cooperation with other countries.

The 2030 framework must be sufficiently ambitious to ensure that the EU is on track to meet its longer-term climate goals. However, it must also reflect a number of significant changes that have taken place since 2008/2009, when the original framework was adopted:

· the consequences of the ongoing economic crisis,

· budgetary problems of member states and companies that have difficulty mobilizing funds for long-term investments,

· developments in energy markets in the EU and around the world, including developments in energy from renewable sources, unconventional gas and oil, and nuclear energy,

· concerns of households regarding the financial availability of energy and concerns of businesses regarding competitiveness,

· and different levels of commitments and ambitions of international partners in reducing emissions GHG.

The 2030 framework must draw on the lessons learned from the current framework: what worked, what didn't work and what can be improved. It should take into account international developments and should contain impulses for more vigorous steps to protect the climate on the international scene. Furthermore, it must determine how best to maximize cooperation and how to deal with situations where competitiveness, security of energy supply and sustainability are at odds.

It should also take into account the longer-term perspective outlined by the Commission in 2011 in the plan for the transition to a competitive low-carbon economy in 2050, in the Energy Roadmap to 2050 and in the White Paper on Transport. The European Parliament adopted a resolution on each of these plans[1]. These plans have been drawn up in accordance with the objective of reducing emissions GHG by 80 to 95 % by 2050 compared to 1990 emission levels, as part of the necessary efforts of developed countries as a whole. The scenarios in these plans report the following key findings:

· It is necessary to reduce emissions by 2030 GHG in the EU by 40 % to achieve the reduction GHG by 80-95 % by 2050, which corresponds to the internationally agreed goal of keeping global warming below 2 °C.

· A higher share of energy from renewable sources, improved energy efficiency and a better and smarter energy infrastructure are the best choices for the transformation of the EU energy system.

· Regarding energy from renewable sources, the policy scenarios in the Energy Roadmap to 2050 imply a share of approximately 30 % in 2030.

· The modernization of the energy system (regardless of the possible elimination of carbon emissions) requires significant investments, which will affect energy prices in the period up to 2030.

The purpose of this Green Paper is to consult with stakeholders to gather insights and views to help shape the 2030 framework. It begins by providing an overview of the current framework and achievements. Subsequently, topics are presented on which contributions from interested parties are requested. At the same time, the Commission is consulting on issues related to international negotiations on a new legally binding agreement on climate action, as well as its policy to enable the demonstration of carbon dioxide capture and storage technology.

2. The current EU political framework and achievements so far

At the heart of the current policy framework are three main goals to be achieved by 2020: 1) the goal of reducing emissions GHG in the EU by 20 % compared to the level of 1990, 2) the goal of covering 20 % of the total energy consumption in the EU with energy from renewable sources, while individual targets apply for each member state, 3) the goal of achieving 20 % energy savings compared to forecasts . In addition, the framework until 2020 contains specific goals in the field of energy from renewable sources in the transport sector (10 % share) and fuel decarbonization (6 %). The framework takes into account the different energy mix, economic well-being and capacity of individual member states to act, and therefore includes mechanisms to ensure a fair distribution of the level of effort they must make. It contains measures to address the risk of carbon leakage and its consequences for energy-intensive industries. The framework is based on a wide range of financial instruments of the Union and the European Strategic Plan for Energy Technologies. In addition, the Commission has proposed a revision of the EU legislation on the taxation of energy products and electricity[2] to remove cases where valid fiscal instruments overlap. The framework until 2020 is complemented by the Energy 2020 Strategy[3], which assesses challenges and measures to ensure a competitive, sustainable and secure energy system.

2.1. The goal is to reduce emissions GHG o 20 % and measures to achieve it

The goal of reducing emissions by 2020 GHG o 20 % compared to the 1990 level is implemented through the EU Emissions Trading System (ETS) and the Joint Effort Decision, which sets reduction targets in non-ETS sectors. Its achievement is supported by the EU and the member states with their policies aimed at reducing emissions. In 2011, the volume of emissions GHG included in the climate-energy package, he estimated at 16 % below the 1990 level.

Through the ETS, a uniform carbon price is determined for large industrial facilities, the energy and aviation sectors. It applies to over 10,000 devices and almost 50 % of the entire volume of emissions GHG from the EU. This single price ensures that climate targets are met in a cost-effective way and that businesses across the EU are on a level playing field. The price of carbon already figures as a factor in the considerations of companies in the EU when deciding on operations and investments, which has significantly contributed to reducing the volume of emissions. However, it has not become the main driver of longer-term investments in low-carbon technologies. Despite the fact that the limit value of emissions according to the ETS compared to 2005 will decrease by 21 % by 2020 and will decrease further, which in principle provides a legal guarantee that non-negligible investments in low-carbon technologies will be needed, the current significant surplus of emission allowances, caused in part by the economic crisis, prevents this decline from being reflected in the price of carbon. A low carbon price does not represent a sufficient incentive for investors to invest and increases the risk of a "carbon trap". Some Member States are concerned about this development and have adopted or are considering national measures, such as taxing carbon-intensive fuels in sectors covered by the ETS. There is a growing risk of policy fragmentation threatening the single market, as national and sectoral policies weaken the role of the ETS and the level playing field that the ETS was supposed to create. The functioning of the ETS was the subject of a more detailed analysis in the report on the state of the carbon market[4].

The joint effort decision (CED) set national emission targets GHG in sectors that do not fall under the ETS. The overall target is to reduce emissions by 10 % at EU level by 2020 compared to 2005. Many EU policies, including legislation and sector-specific initiatives, have contributed to reducing emissions in the sectors concerned. These policies and initiatives range from policies to improve the energy efficiency and CO2 efficiency of cars, residential buildings and energy-using equipment, to specific measures in waste, environment, agriculture and land use (see Annex). The implementation of political measures to achieve the goal in the area of energy from renewable sources and energy efficiency also contributes to the reduction of emissions. Specific targets for individual member states are determined on the basis of economic capacity. Some member states must reduce their emissions compared to 2005 levels, while others have been allowed a limited increase in emissions. Overall, the EU is well on its way to achieving its goal of reducing emissions by 10 %, while there are significant differences between member states – half need to take additional measures. The RSO also allows member states to achieve their goals in a flexible way, either through obtaining international credits or through trade with member states that have achieved even better results than the set goals.

2.2. Target for energy from renewable sources and measures to achieve it

The EU is progressing towards the goal of covering 20 % of total gross energy consumption with energy from renewable sources by 2020. In 2010, the share of energy from renewable sources in the EU was 12.71 TP3T, compared to 8.5 % in 2005. In the period 1995-2000, when there was no regulatory framework, the share of energy from renewable sources grew annually by 1.9 %. After the introduction of indicative targets (period 2001-2010), the share of energy from renewable sources grew by 4.5 % annually. With the introduction of legally binding national targets, growth has accelerated, but to reach the overall target for 2020, it needs to reach an average of 6.3 % per year. The share of energy from renewable sources in transport reached 4.7 % in 2010, compared to a share of only 1.2 % in 2005. In the heating and cooling sector, the share of energy from renewable sources continues to grow, and is expected to almost double by 2020 . However, due to cuts in support schemes and more difficult access to funds in times of economic crisis, most Member States will need to introduce new measures to reach their 2020 targets.

In 2012, the Commission evaluated the current situation with energy from renewable sources[5]. An updated progress report is published alongside this Green Paper. Investments in research and development, innovation and deployment of renewable energy on a large scale have contributed to a significant reduction in the cost of renewable energy technologies. The introduction of energy from renewable sources on a large scale is associated with several major challenges, such as the full integration of this type of energy into the electricity system in a way that solves the problem of interruptions in the supply of this type of energy, and improving cooperation between Member States in achieving the goals. Connecting the EU's wholesale electricity markets will help the integration of energy from renewable sources into the electricity grid, as well as the introduction of smart grids, which present opportunities to adapt production, grid management, storage and consumption to changing market conditions. However, the introduction of energy from renewable sources will also require massive investments in transmission and distribution systems, including through cross-border infrastructure, to complete the internal energy market. Another big challenge is to ensure that renewable energy sources become more cost-effective over time, so that the use of support schemes can be limited to only those areas of technology where they will continue to be needed. Such schemes should be designed to avoid overcompensation, improve cost-effectiveness, stimulate significant emission reductions GHG, strengthened innovation, ensured the sustainable use of raw materials, enabled adaptation to price developments in order to avoid a state of dependency on subsidies, achieved the same procedure in all Member States and above all to ensure compliance with WTO rules with regard to biofuels.

2.3. Energy savings goal and measures to achieve it

The target of achieving 20 % of energy savings in the EU's primary energy consumption by 2020 (compared to 2007 forecasts) is not legally binding for Member States, but considerable progress has been made. After years of growth, primary energy consumption peaked in 2005/2006 (about 1,825 million toe) and started to decline slightly from 2007 (to 1,730 million toe in 2011). This trend is partly related to the economic crisis and partly to the effectiveness of valid political measures. Another reason is the reduced energy intensity of the EU industrial sector, which fell from 149 toe per million EUR in 2010 to 174 in 2000 and 167 in 2005.

The adoption of the Energy Efficiency Directive in 2012 created a comprehensive framework of legislation at EU level that must be fully implemented by Member States. The Directive will contribute to accelerating progress in this area, although the Commission's preliminary analysis suggests that the 2020 targets will not be achieved with current policies[6]. The lack of appropriate tools to monitor progress and measure impact at Member State level is part of the problem. Another big challenge is mobilizing the funds needed to ensure further progress.

From 2009-2010, implementation measures were adopted within the framework of the directive on ecodesign and labeling of energy-important products with energy labels. These measures reduce the demand for industrial and household products, resulting in savings for end users. Such measures have been taken for a range of household electrical appliances, including dishwashers, refrigerators, washing machines, televisions and tyres, as well as industrial products such as motors, fans and pumps. It is estimated that the impact of measures taken with regard to ecodesign and energy labels will be reflected in energy savings of 90 million toe by 2020.

In order to solve the problem of energy consumption of existing buildings, especially energy for heating and cooling, the EU adopted a directive on the energy efficiency of buildings in 2010. It not only obliges member states to apply minimum energy efficiency requirements for new and existing buildings, but also to ensure that by 2021 all new buildings are "nearly zero energy buildings". However, delays and incomplete national measures to implement this directive may jeopardize the necessary contribution of the building sector to reducing emissions GHG and energy consumption. The potential for cost-effective savings in the buildings sector is estimated at 65 million toe by 2020. The EU supports the development of energy-efficient technologies, including through public partnerships on energy-efficient buildings, green cars and sustainable manufacturing.

In the transport sector, regulations setting emission standards for light vehicles resulted in significant reductions in emissions GHG, which also shows a decrease in the average volume of CO2 emissions of the fleet of new vehicles from 172 g per kilometer in 2000 to 135.7 g per kilometer in 2011.

2.4. Security of supply and financial availability of energy in the internal energy market

The climate and energy package from 2009 is not the only line of work in this area. In 2009 and 2010, the EU adopted comprehensive legislation on the internal market for electricity and natural gas, and after two natural gas supply crises, a regulation on the security of natural gas supply. As none of the energy policy objectives can be achieved without adequate network connections, the Commission has also proposed a regulation on guidelines for trans-European energy infrastructure, on which the European Parliament and the Council have politically agreed. The proposal addresses infrastructure challenges in order to ensure a truly interconnected internal market, the integration of energy from renewable energies and increased security of energy supply[7].

Other EU measures, such as the European Energy Technology Strategic Plan, have been introduced to support the transition to new technologies through development and demonstration projects for new and innovative technologies: e.g. second-generation biofuels, smart grids, smart cities and smart grids, electricity storage and electromobility, carbon capture and storage and next-generation nuclear power, and heating and cooling with renewable energy. At the beginning of 2013, the Commission also proposed a directive on the introduction of infrastructure for alternative fuels, which will be supported by the proposed revision of the guidelines on the trans-European transport network.

When compiling the climate and energy package from 2009, attention was not paid to a whole range of issues. For example, the necessary transmission and distribution infrastructure was not defined. Management issues related to the introduction of energy from renewable sources, such as the fluctuation of energy supplies from certain renewable sources (eg wind and solar energy), were also not fully taken into account. The impact of the large number of national renewable energy support schemes on market integration has been underestimated.

The third energy package focused on the question of how to stimulate competition in the market, but did not address whether the market offers sufficient incentives for investment in generation, distribution, transmission and storage capacity in a system with a greater share of energy from renewable sources. Until renewable energy becomes cost competitive, the goal of a more sustainable energy system must go hand in hand with the need for a fully liberalized and integrated energy market capable of efficiently mobilizing and allocating investment.

Significant developments are taking place inside and outside the EU and significant trends are emerging, such as the EU's increasing dependence on imported energy and the technological progress of our main competitors, new supply routes, as well as the rise of new energy producers in Africa and Latin America. All this will have an impact on energy costs and security of supply in the EU.

3. Key questions of this consultation

The 2030 Climate Change and Energy Policy Framework will build on the remarkable progress we have already made in this area. It must draw on lessons learned from the current framework and identify where improvements can be made. The experiences and opinions of stakeholders, preferably supported by well-founded evidence, are particularly needed in the following four respects: objectives, other policy instruments, competitiveness and varying degrees of capacity of Member States to act.

3.1. Goals

The fundamental questions regarding the 2030 framework for climate change and energy policy relate to the type, nature and level of targets and how they interact. Should targets be set at EU, national or sectoral level and should they be legally binding? Opinions on the need for goals and the type of goals differ. Experience with the current framework shows that the targets provide political impetus, provide a long-term vision for investment and are a measure of success, but some stakeholders argue that the targets in place and the policies to achieve them are not necessarily consistent or cost-effective, or that they do not sufficiently take into account competitiveness , economic viability and technology maturity. The 2030 framework should take into account the ongoing development of technology and support research and innovation. Therefore, it is necessary to assess what goals can drive climate change and energy policy in the best possible way and at the same time as simply and cost-effectively as possible until 2030, and whether the current concept can be simplified due to the need for different sub-goals (e.g. in the transport sector) . The subject of this analysis should also be the question of whether it would be appropriate to set only a goal regarding emissions by 2030 GHG, while other objectives such as security of supply and competitiveness must be taken into account.

Current climate change and energy policy reduction targets GHG, the share of energy from renewable sources and energy savings have been set to support each other and indeed there is an interaction between them. Higher shares of energy from renewable sources can contribute to the reduction GHG, as long as they do not replace other low-carbon energy sources, and better energy efficiency can help reduce emissions GHG and facilitate the achievement of renewable energy targets. Obvious synergies can be observed, but also potential conflicts. For example, higher-than-forecast energy savings and higher-than-expected renewable energy production may cause the price of carbon to fall, as they would weaken the demand for ETS allowances. This in turn may weaken the ETS price signal in favor of innovation and investment in energy efficiency and the deployment of low-carbon technologies, although this would have no impact on achieving the overall reduction target GHG.

The 2030 framework, with its many goals, will need to explicitly take these interactions into account. It must also take into account the fact that a higher share of energy from renewable sources and greater energy savings alone cannot guarantee greater competitiveness or security of supply. Specialized policy measures will continue to be needed, and possibly additional indicators that capture these goals more faithfully.

There is a broad consensus that to achieve the ambition to reduce emissions GHG by 2050, 80-95 % will be necessary medium-term goals. The key issue is determining the most appropriate level of these medium-term goals. The plan for the transition to a low-carbon economy in 2050 states that a 40 % reduction in emissions by 2030 compared to 1990 would be cost-effective. A reduction of less than 40 % would in the long run cause an increase in the cost of eliminating carbon emissions in the economy. According to the conclusions in the plan, 40 % reduction GHG can be achieved by 2030 without excessively increasing the cost of our energy system, but mobilizing the funds needed to cover the capital costs of the significant initial investment will be a challenge.

The progress plan in energy until 2050 demonstrated that the share of energy from renewable sources in the energy system must continue to grow after 2020. A 2030 renewable energy target would need to be carefully considered, as many renewable energy sources will have outgrown their infancy by this time frame and will increasingly compete with other low-carbon technologies. It should also be considered whether a higher share of energy from renewable sources can be achieved at EU level without a specific target, but through the ETS and regulatory measures to create the right market conditions. The form of a possible target for energy from renewable sources will depend on whether i) such a target is considered necessary to achieve an increased share of energy from renewable sources after 2020, thus contributing to the use of local energy sources, reducing dependence on energy imports and increasing employment and growth, and ii) whether and how this can be achieved without adverse impacts of renewable energy support schemes on energy markets, energy prices and public budgets. It must be determined whether the renewable energy targets can best be achieved on the basis of a new headline target (with or without sub-targets in sectors such as transport, industry and agriculture) and/or other specific measures. Any renewable energy target or policy will need to take into account the growing body of evidence on sustainability, costs, technology maturity and innovation potential.

The EU framework for energy efficiency policy has recently been updated through the adoption of the Energy Efficiency Directive. Its revision is planned for 2014 with regard to the goal until 2020. Discussions about the goal for energy savings until 2030 must be seen in this context. A number of aspects must be considered. First, the Energy Plan 2050 refers to energy efficiency and the resulting energy savings as "options without negative consequences" for the energy system. Although full knowledge of the operation of the current system will not be available until 2014 or later, it is extremely important to ensure compliance with possible energy saving targets and all other targets. Consideration will also need to be given to whether progress in energy efficiency can best be achieved on the basis of targets for Member States or targets for individual sectors.

Furthermore, it will also have to be considered whether the basis for measuring such a target should continue to be the absolute level of energy consumption, or whether a relative target depending on the energy intensity (e.g. energy consumption in relation to GDP or gross added value) would be more appropriate. Although the absolute target could better guarantee the overall goal of savings, the relative target could better take into account the dynamics of the EU economy and the reality of economic development.

Unlike the concept with regard to emissions GHG and energy from renewable sources is the current concept of energy efficiency based on a combination of ambitious goals and binding measures. The need for EU legislation (e.g. the ecodesign framework, the energy efficiency directive, the directive on the energy efficiency of buildings) within the framework of the year 2020 is at least partly related to the absence of legally binding energy savings targets for the member states. Any legally binding energy saving/energy intensity target would have to provide Member States with sufficient room for maneuver to achieve the targets with as few binding measures as possible at the EU level. However, such a concept would have to take into account the fact that much of the EU legislation that contributes to the reduction of energy consumption also plays an essential role in creating the internal market for the products concerned (for example, the ecodesign framework). If the goals remain only at the level of ambition, it will be necessary to consider whether the current concrete measures are sufficient or whether new measures are needed. A key aspect is the extent to which energy markets themselves, through price signals and demand-side response, will stimulate improvements in energy efficiency, including changing customer behaviour, and whether the ETS and its impact on electricity prices will provide an incentive to save energy even in the absence of specific targets or measures. The relatively small price elasticity of energy demand in many important sectors of the economy and the expected levels in the future will have to be taken into account, as well as the variability of the ETS price.

3.2. Consistency of policy instruments

The 2020 targets are implemented through policy instruments at EU level, which are closely linked to the internal market. Member States have more room to maneuver when implementing EU legislation on renewable energy and energy efficiency and on emissions GHG, which do not fall under the ETS, for example in the road transport sector. This results in different national concepts of renewable energy support schemes, energy and CO2 taxation, building energy performance standards and other energy efficiency policies.

A combination of interacting instruments is likely to be needed to achieve different policy objectives and overcome market barriers, as described in the previous section of this paper. Given these interactions, some stakeholders criticized the lack of consistency between policies and pointed to the need to improve the cost-effectiveness of different climate and energy measures, taking into account technological feasibility. Moreover, national measures should not have the effect of fragmenting the internal market. A strong emphasis should be placed on investment in infrastructure, especially in networks, as this will deepen the integration of EU markets and ensure sustainability, competitiveness and security of supply.

The 2030 policy framework should therefore guarantee a balance between concrete implementation measures at EU level and the flexibility of Member States to achieve the objectives in a way that is most appropriate to the circumstances of a given country and is at the same time compatible with the internal market. The current conceptual balance between EU-level instruments and Member States' targets/domestic instruments, including the impact of fossil fuel subsidies, will need to be assessed in more detail. Even in this case, it will be necessary to consider the fair distribution of the level of effort.

In addition to regulatory instruments, the EU also provides significant financial assistance in the field of climate change and sustainable energy, primarily through cohesion policy, EU research programs and in the future through the Connecting Europe Facility. Climate action targets will account for at least 20 % of EU spending in the period 2014-2020, which will also be reflected in adequate instruments to ensure that they contribute to strengthening energy security, building a low-carbon, climate-resilient and resource-efficient economy , which will improve Europe's competitiveness and create more and greener jobs[8].

Access to international credits will need to be explored after 2020. The use of international credits can lead to cost reductions, but also to uncertainty about what needs to be done in the home country and has resulted in an excess of ETS emissions allowances. Moreover, the EU industrial sector and the governments of the Member States have subsidized competitive sectors, especially in countries with developing economies such as China, India and Brazil, through the Clean Development Mechanism. A shift from project-based offsets to emissions trading and other market-based mechanisms could mean better consideration of countries' differing capacities to take action on climate change and more significant progress in developing a global carbon market with broad international participation.

In sectors such as shipping and aviation, policy measures include a coordinated effort to set agreed standards and policies with global effect in order to effectively achieve global emission reductions. As a first step, the International Maritime Organization approved a design energy efficiency index that came into force in 2013 and is expected to slow the rise in emissions GHG from worldwide shipping.

3.3. Supporting the competitiveness of the EU economy

One of the basic objectives of the EU energy policy is to ensure competitive domestic and international energy markets and energy prices that are competitive on the international stage and accessible to final consumers, and to ensure that the energy system benefits the competitiveness of the EU economy. It is particularly important for socially weaker households and industrial sectors exposed to international economic competition, for which energy is an important factor of production. Since electricity is expected to play a more significant role in the transition to a new form of energy system, its costs are particularly important in terms of the situation by 2030.

Energy and climate change policies can stimulate demand and growth in a low-carbon economy. The EU is a leader in clean and energy-efficient technologies, products and services, as well as green technologies, with around 5 million jobs expected to be created in this area by 2020[9]. Many of these policies also contribute to reducing air pollution and improving the health of the population. At the same time, however, they are subject to criticism because they have a negative impact on energy prices, and therefore also on the financial availability of energy for socially weaker households and on the competitiveness of energy-intensive industries, despite the fact that they can reduce the sensitivity of industry to energy price fluctuations and increase its resilience against sudden increases in energy prices.

Despite only a slight increase in wholesale energy prices in the EU, consumer prices of electricity for many businesses and households have demonstrably grown much more significantly in real terms in the past decade. According to the Plan in the field of energy until 2050, this trend will continue in the future. Developments in international markets and the use of unconventional hydrocarbons may cause a higher discrepancy between prices in the EU compared to prices in other major economies, such as the US, which currently use shale gas more intensively as an energy source. In 2012, gas prices for industry in the USA were four times lower than in Europe[10]. It is clear that this trend is the result of many factors, not just EU climate and energy policy, and that wholesale electricity prices in the EU continue to be largely driven by fossil fuel prices. Member States' decisions on tariffs, fees and taxes have a significant impact on prices for final consumers. These aspects must be taken into account when formulating new policies. It is necessary to examine the factors determining energy prices, including taxation, in a differentiated way, as they appear to have diverse effects on the overall cost of energy production. In this context, a number of questions need to be clarified.

First, the full implementation of internal market legislation is extremely important in order to keep prices within limits and achieve targets in a cost-effective way, both through more intense market competition and more efficient use of energy infrastructure (using network regulations).

Second, it is necessary to enable the use of conventional and unconventional local oil and gas resources in an environmentally safe way in the future, as they could contribute to reducing energy prices and the EU's dependence on energy imports.

Third, further diversification of energy supply routes could contribute to improving competition in energy markets, and investments in energy efficiency can lead to significant savings in the long term. The further deployment of energy production from renewable sources must be accompanied by improved system management, reduced costs and improved technology performance, as well as continuous support for innovation.

Fourth, concerns were raised that other regions are not committed to the fight against climate change to the same extent as the EU, which affects competitiveness. On the other hand, the EU's commitment to reduce emissions GHG o 20 % by 2020 has contributed to the progress made since the Copenhagen Climate Change Conference in 2009. More than 90 countries have made pledges in this area with varying degrees of ambition. The international community has confirmed the goal of keeping global warming below 2°C. In addition, several countries are introducing or drafting legislation on their own emissions trading system (Switzerland, Australia, New Zealand, South Korea, China and several US states). Despite this development, the EU offer to set a conditional target of 30 % reductions GHG it did not prompt any pledges or actions to help achieve the 2°C target by 2020 through a concerted effort. Therefore, it is extremely important to develop intensive cooperation with third countries and to strive for the Durban Platform to reach an agreement on the post-2020 period by 2015. Such efforts are all the more important as the EU is responsible for only 11 % of global emissions GHG and this share shows a decreasing trend, so the fight against climate change is only possible with effective measures at the global level[11].

Fifth, in air and maritime transport, the EU actively advocates progress in the relevant fora to ensure global participation and a level playing field for all.

Sixth, it is clear that higher ETS prices and policies aimed at increasing renewable energy production capacity through support or preferential treatment to facilitate its market entry could lead to higher electricity prices. On the other hand, the ETS creates a level playing field for all EU member states and minimizes abatement costs GHG in the sectors to which it applies. The ETS also includes measures to reduce the impact on the competitiveness of energy-intensive industries that are exposed to the risk of carbon leakage. These measures will remain in place until 2020. Given the structure of free emission allowances in industrial sectors and access to cheap international credits, the impact on these sectors is likely to be moderate, at least until 2020. State aid rules applicable to the ETS allow Member States from 2013 to provide reimbursements for part of the indirect costs related to the ETS in most electricity-intensive industries. Furthermore, the state aid rules in the field of the environment make it possible to specifically exempt certain industrial sectors from energy taxation. With the framework until 2030, it will be necessary to consider whether and in what way this concept should be preserved.

Finally, the 2030 framework should consider whether ETS-related revenues could be used to further help the sector to innovate. Currently, the member states implement this option primarily by using revenues from auctions of emission quotas within the limits allowed for the provision of state aid, despite the fact that in the current framework, financing from Union sources in the form of NER300 is specifically intended for energy from renewable sources and carbon dioxide capture and storage projects.

3.4. Taking into account the different capacity of the member states

Member States differ significantly from each other in terms of comparative wealth, industrial structure, energy mix, buildings, carbon and energy intensity, usable renewable energy sources and social structure. Different groups of consumers have different abilities to adapt and invest. This diversity must be taken into account when drawing up the 2030 framework. Climate and energy targets have a different impact on each Member State and its citizens, so the possibilities for effective cooperation and a fair distribution of the level of effort required should be assessed as part of the new framework.

The current climate and energy policy framework reflects the different capabilities of Member States, as it distributes the level of effort in achieving the EU's targets in these areas between Member States, with less effort required from Member States with lower incomes. Revenues from auctions of emission allowances are also partially distributed for the purpose of compensating differences in costs. In the directive on energy from renewable sources, there are also cooperation mechanisms, on the basis of which the energy produced from renewable sources in one member state can be counted towards the target of another member state. However, despite its potential economic benefits, no countries (with the exception of Sweden and Norway) have yet used this scheme. The Energy Efficiency Directive takes into account national circumstances and contains a full range of flexibilities that Member States can apply in their efforts to achieve 1.5 % savings per year, including phasing in this target, exempting the ETS sector and including the energy transformation and distribution sector and recognizing early steps. These options can also be applied in a cumulative way, which, however, must not negatively affect the energy savings that are imposed in the directive.

Consideration should be given to whether similar distribution mechanisms should be maintained in the 2030 framework or whether new approaches are needed depending on the level of ambition and the nature of future targets and measures. The introduction of different targets for individual Member States may lead to a fairer situation (although it may conflict with the objectives of the internal energy market), but at the same time to an increase in the overall cost of achieving the targets, if sufficient flexibility is not allowed, for example in the form of trading mechanisms. Irrespective of the final form of the 2030 framework, when drawing it up, it must be considered whether there is sufficient flexibility between member states to enable cost-effective achievement of different goals. In this context, the fact that the Member States that need the most investments and that have the most opportunities to reduce emissions in a cost-effective manner should also be taken into account GHG, and opportunities for the development of renewable energy, improvements in energy efficiency, etc., often do not have the necessary economic capacity to reap the resulting benefits. In addition, some Member States face difficulties in obtaining sufficient support to change industrial practices and energy use, which could affect employment and the use of domestic energy sources. Access to investment funds, whether in the form of direct financing or innovative financing models, is already part of EU policy instruments[12], but with a view to the period up to 2030, there may be a need to facilitate it. Such measures could contribute to a fair and balanced distribution of the level of effort, while promoting a positive public attitude and involving all concerned parties in the transition to a sustainable, secure and competitive economy.

As part of the new framework, Member State-specific information will have to be compiled and submitted to form the basis of a discussion on a fair distribution of effort to ensure that no Member State is overburdened.