Take a look at other topics that we address in our EnviLaw newsletter #8:

• Essential Review of the Forest and Soil Protection Legislation is Getting Sharp Outline
• The EU Wants to Support Green Transport with Focus on Railways
• The European Central Bank will focus its 2022 bank stress tests on climate risks
• First calls under the National Recovery Plan
• COP26 Fails to Achieve Fundamental Goals

If you do not want to miss any important news, subscribe to the EnviLaw newsletter!

WEO: Energy sector on safer ground

Against the backdrop of turbulent markets and a crucial meeting of the COP26 conference on climate change in Glasgow, the 2021 World Energy Outlook (WEO) becomes an indispensable guide to the opportunities, benefits and risks ahead in this crucial moment for clean energy transitions.

This special edition of the WEO has been designed to help decision makers at COP26 and elsewhere. The document describes key decision points that can move the energy sector onto safer ground and provides a detailed overview of how far countries have progressed in their clean energy transitions, how far they still have to go to reach the 1.5 °C goal, and the actions that governments and others can take to evade the pitfalls along the way towards the common goal. Thanks to many scenarios and case studies, this WEO clearly explains what is at stake at a time when informed debate on energy and climate is more important than ever.

Renewable energy sources are more important than fossil fuels for the first time

On 26 October 2021, the European Commission released the State of the Energy Union 2021  report Every year, the report assesses the progress that has been made in implementing European policies in the area of energy and climate. It focuses mainly on the progress in the Energy Union and its five pillars: decarbonisation (including renewable energy sources), energy efficiency, internal energy market, supply security and research & innovation and competitiveness. The report is published in the context of the emerging post-COVID economic recovery as well as the recent exceptional situation related to the sharp rise in gas and electricity prices in the European Union and in many areas around the world.

The report says that renewable energy sources have, for the first time in 2020, become a more important source of energy than fossil fuels in the EU. They were the source of 38% of energy produced while fossil fuels were the source of 37% of energy produced. It can be expected that the share of renewable energy sources in the overall EU energy mix will reach at least 22%, although some Member States face the risk of failing to meet their national binding target. To date, nine Member States have ceased to use coal as an energy source, thirteen have pledged to phase it out by a certain date, and four states are considering possible roadmaps. Even though many positive trends have been monitored, reaching the goal of reducing net emission by at least 55% by 2030 and reaching climate neutrality by 2050 will require more effort.

A mechanism to support renewable energy use has been put into practice

The potential for renewable energy sources is not equal in all regions of the EU and so the European Union offers cooperation mechanisms to the Member States. Member States that expect not to meet their binding targets can increase their share of renewable energy sources via common projects, support schemes or statistical transfers between the Member States. On the other hand, countries with more favourable environmental conditions and with a sufficient share of renewable energy sources may receive finances for the volume of energy transferred.

In practice, it means that the countries that have not met their binding national goals for 2020 can “buy” energy from renewable sources from the countries that have surpassed their goals. As the Czech Republic did meet its binding share of renewable energy sources for 2020 set by the EU, it could   and to transfer 465 GWh of energy from renewable sources. This is the first time that the Czech Republic has used this option of cooperation with another Member State.

In order to facilitate statistical transfers of energy between the Member States, the Commission has established a Union renewable development platform (URDP). The URDP should provide an overview of the target and contribution achievement in the Member States. It also includes information provided by the Member States on supply and demand for statistical transfers of renewable energy, which should allow the Member States to easily indicate their willingness to engage in statistical transfers.

EU remains global leader in clean energy research

EU has a good position in several parts of the value chain in clean energy share on the global market. Higher investments in research and development and further efforts in technology transfers would, however, ensure that the EU utilises the transfer to clean energy to strengthen its competitiveness in the clean energy sector. This follows from the Commission’s Progress on competitiveness of clean energy technologies report, published on 26 October 2021 by the European Commission.

This second report on progress on competitiveness states that the EU remains the global leader in clean energy research. Globally, compared to other large economies, it has a greater share of environmentally friendly inventions in climate change mitigation technologies. The rate of EU public investment in clean energy that is necessary for decarbonisation is, however, the lowest among major economies.

The EU is also the world leader in the wind energy sector, although the competition remains intense. When it comes to solar photovoltaics, the EU has a relatively small share of the photovoltaic cells and module manufacturing industry. It does, however, retain a top standing in other parts of the value chain, including research and development. Heat pumps, renewable fuels, intelligent networks, batteries and hydrogen from renewable sources all have good prerequisites in the EU to benefit from future demand resulting from the expansion of relevant markets based on related policies.