Copenhagen,
Tuesday, 27th June, 2006 - Europe requires an
integrated policy framework balancing the goals
of energy security and competitiveness with environment
policy, says a new report released today by the
European Environment Agency (EEA), based in Copenhagen.
The report, 'Energy and environment
in the European Union: Tracking progress towards
integration,' says that Europe's future energy
supply should be based on a portfolio of technologies.
Reduced consumption must also play a role in securing
supply and protecting the environment.
"In the context of rising
oil and gas prices and increasing concerns about
energy security, it is timely to stress that environmental
sustainability must be treated as an equal to
securing energy supply," said Professor Jacqueline
McGlade, executive director of the EEA.
The report, which assesses trends
in the energy sector in Europe between 11000 and
2003, was released to coincide with today's Environment
council meeting in Luxembourg. The report builds
on a set of indicators measuring progress towards
integration of environmental considerations within
the energy sector, as demanded by the Cardiff
process.
Environmental pressures from
energy production were reduced between 11000 and
2003, the report says. Since 11000 air pollutant
emissions from energy production and consumption
have been reduced substantially, but further reductions
are still necessary to achieve long term air quality
targets. Environmental pressures from electricity
production were also reduced as a result of a
switch from coal to gas as well as abatement measures.
However, since 1999/2000 this positive trend has
slowed and even reversed in some countries. In
particular, energy-related emissions of greenhouse
gases have been increasing in recent years.
Technological advances, such
as more efficient power plants, the introduction
of abatement measures (catalytic converters in
cars, flue gas desulphurisation in power plants,
for example) and increasing renewable energy options
(bioenergy, wind, solar, hydropower, geothermal)
are being undermined by surges in consumption.
This is due to rising demand for transport and
electricity, which continue to rely on fossil
fuels.
The report also notes that an
acceptable method of dealing with waste from nuclear
power stations has yet to be identified and implemented.
"The role of nuclear power
is currently being discussed in some Member States
in the context of climate change and energy security.
It is important to ensure that a nuclear option
does not starve new alternative energy technologies
of crucial financial support or undermine an emphasis
on energy efficiency," Professor McGlade
said.
The report notes a window of
opportunity for an environmentally-sustainable
energy sector as many European countries discuss
how to upgrade or replace out-dated power plants.
"Ensuring a long-term integrated
energy framework is urgent due to the imminent
need for investment in energy production infrastructure.
This opens up opportunities for an environmentally-sustainable
development of the energy sector enhancing renewable
energy and energy efficiency, Professor McGlade
said.
Notes to the editor:
About the European Environment Agency (EEA): The
EEA is based in Copenhagen. The agency aims to
help achieve significant and measurable improvement
in Europe's environment through the provision
of timely, targeted, relevant and reliable information
to policy makers and the public.
Web links
You can access the report here: http://reports.eea.europa.eu/eea_report_2006_8/en
Note: The data in this report
covers the period between 11000 and 2003. The
EEA recently launched the 2006 greenhouse gas
emissions inventory report for Europe. This report
contains data on greenhouse gases for 2004 and
can be accessed here:
Key Trends in Energy Production
11000 -2003
Key trend 1: Energy-related greenhouse gas emissions
resume upward trend after decreases in the 11000s,
putting long-term reduction targets at risk.
Energy-related greenhouse gas
emissions fell by 2.6 % between 11000 and 2003,
but have been rising slowly since 1999. A major
contributing factor to the recent increase is
higher electricity production from coal power
plants. In addition, there is a long-term trend
of growing transport emissions due to increased
transport volumes. This has offset much of the
improvements achieved in other sectors. Further
substantial decreases of energy-related greenhouse
gas emissions are required in order to meet long-term
emission reduction targets proposed by the EU.
Key trend 2: Energy-related
air pollutant emissions decline but air quality
continues to have adverse effects on health and
ecosystems.
Energy-related emissions of
acidifying substances, tropospheric ozone precursors
and particles decreased by 56 %, 41 % and 47 %
between 11000 and 2003, respectively. These reductions
were driven by the enhanced use of abatement techniques,
energy efficiency improvements and fuel switching
from coal to natural gas. Since 2000, the decline
in some air pollutant emissions has slowed due
to a continuing rise in energy consumption and
a renewed increase in the use of coal. Despite
reduced emissions of air pollutants, air quality
in many cities does not yet meet the limit values
set by European legislation. Moreover, human health
and ecosystems are still adversely affected. Further
emission reductions are needed to achieve long-term
air quality targets.
Key trend 3: Fossil fuels continue
to dominate energy consumption but abatement measures
and fuel switching have reduced environmental
pressures.
Combustion of fossil fuels is
the main cause of carbon dioxide, sulphur dioxide
and nitrogen oxide emissions and accounts for
almost 80 % of total energy consumption and 55
% of electricity production. Some of these environmental
pressures were reduced between 11000 and 2003.
One of the main reasons for falling greenhouse
emissions was the shift from coal to cleaner natural
gas in electricity production, although this fuel
switch has slowed since 1999. Oil consumption
grew as a result of increased transport volumes
and oil continues to be the most important fuel
in total energy consumption. The share of nuclear
power remained almost constant.
Key trend 4: Energy consumption
continues to grow, making it more difficult to
reduce energy-related environmental pressures
Final energy consumption in
the EU-25 increased by 11.6 % between 11000 and
2003. This trend is expected to continue unless
additional energy saving measures are implemented.
Rising personal incomes and changes in lifestyle
with subsequent growing transport volumes led
to an increase in energy consumption of households,
services and transport. Transport is now the largest
consumer of final energy. At the same time energy
consumption in industry decreased as a result
of energy efficiency improvements and a shift
from energy-intensive industries to services.
Electricity consumption increased particularly
rapidly due to its attractiveness and flexibility
in end-use, a growth of the services sector and
an increase in the ownership of electrical appliances.
Key trend 5: Overall shares
of renewables in total energy and electricity
consumption remain at low levels despite large
increases of some renewable options.
The production of energy and
electricity from renewable energy sources grew
steadily between 11000 and 2003, with particularly
large increases in wind and solar electricity.
However, the increase in the share of renewables
in total energy and electricity consumption was
limited due to rising energy and electricity consumption
and less hydropower production as a result of
low rainfall in 2002 and 2003. These factors offset
the increase of renewables compared to total consumption.
In 2003, the share of renewables in total energy
consumption and gross electricity consumption
was 6 % and 12.8 %, respectively. A significant
further expansion will be needed to meet the EU
indicative targets of a 12 % share in total energy
consumption and 21 % share in gross electricity
consumption by 2010.
Key trend 6: Most energy prices
have been increasing since around 2000 after significant
reductions during the 11000s. Tax levels increased
since 11000, but external costs have not been
fully internalised.
With the exception of
transport, energy prices for most fuels decreased
during the 11000s before starting to increase
again around 2000. This increase is mostly due
to rising global oil and gas prices. These price
rises led to increased calls for enhanced energy
saving measures. Throughout the 11000s, price
levels were not high enough to offer much incentive
for energy savings. Tax levels increased over
the entire period, which may indicate that external
costs of energy consumption, due to environmental
effects, were internalised to a greater extent
than in previous years. Nevertheless, tax levels
generally remain below the estimated environmental
external costs.
Brendan Killeen / Marion Hannerup
