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IFIEC Europe NewsletterFebruary 2019

In This Issue

IFIEC Europe News

EU Industry Days 2019

DG CLIMA at IE Board

Romanian EU Council

Presidency Event

EU Brussels News

EP ups climate targets

Gas will be No.1 topic

EC considers doubling

Southern Gas corridor

National News

National Energy &

Climate Plans

Director PA leaves

Brussels Events

Innovation Fund

launch

Consultation on PCIs

IFIEC Europe NewsEU Industry Days: IFIEC call for Industrial Strategy

On 5-6 February, the European Commission sponsored the third EU Industry Days conference. It brought together 1'500 industry stakeholders and policymakers and was structured into high level speeches and panel discussions. The main speech by EU Commission President Jean-Claude Juncker and his quote that "my father was a steelworker" reminded participants of the origins of the EU - the Coal and Steel community - and the industrial prowess through which Europe was built, as well as the need to bring this prowess back and to protect it: a central topic of the conference and key challenge in the coming years for industry stakeholders and EU policymakers alike.

As part of the conference, IFIEC was allocated a prestigious stakeholder workshop. Organised by IFIEC Director Daniel Gerber, it was titled “Energy Intensive Industries - Innovating for a sustainable future” with panelists Steinar Solheim, Tomas Wyns (VUB University), DG CLIMA's Roman Doubrava, Aneta Muskala (International Paper) and Brigitta Huckestein (BASF).

IFIEC President Steinar Solheim gave an introductory speech in which he highlighted two key points: "Energy Costs are a huge challenge for European industry. (...) EU policies have to therefore focus on diversifying energy supplies, putting in place a functioning single energy market, and introduce climate policies that encourage rather than hinder growth in the manufacturing sector." Secondly, Solheim praised the fact that the recent energy intensive industries sector study was referenced in the new EU long term Climate Strategy, but also criticized the fact that "the strategy is called a « Clean Planet for All », however, the international dimension is missing – and this is very worrying. Carbon leakage continues and as long as EU ETS is not arranged internationally, this will continue."

EC President Juncker starts EUID, watch his speech here

IFIEC President Steinar Solheim opened the workshop

 

CLICK HERE FOR THE VIDEO  of S. Solheim's speech, the presentations of R. Doubrava and T. Wyns, as well as the panel discussion with BASF & International Paper 

Solheim concluded by calling for the need of "An ambitious long-term EU industrial policy strategy that focuses on growth and ensures industrial competitiveness in a sustainable, long-term, measurable and globally competitive context". IFIEC would soon present its recommendations in a new Manifesto for the 2019-2024 EU institutional cycle, Solheim added.  

IFIEC Board & DG CLIMA discuss EU Climate vision

On 20 February, as part of the IFIEC Europe Board meeting, a representative from DG CLIMA was invited to discuss the recent EU long-term climate strategy. Mr. Tom Van Ierland,  Head of Unit of DG CLIMA.C.1. Strategy & Economic Assessment joined the Board and gave a comprehensive presentation. It was noted that while previously it was referred to as a Climate Strategy, the terminoloy had now shifted towards Vision.

Next important step:On 9 May 2019 the EU Council will present conclusions on the EU Climate Strategy, to submit later in the year to UNFCC. 

New Elephant in the

Tom van Ierland highlighted innovation as a key driver reflected in all 8 scenarios proposed in the climate strategy, stating that "We are not at the end of the technology chain. The question is on we can do it smartly under current conditions." In this respect he noted the importance of discussing with IFIEC and working with the EII sector organisations in the framework of the High Level Group organised by DG GROW. After the presentation, IFIEC Board members provided clear feedback, highlighting in particular the need to focus on industrial competitiveness amid the immense pressures of international competition, as well as clear-cut policy and investment predictability. 

Room:The EU had agreed to reduce 40% GHG by 2030. But now, in order to achieve 2050 carbon neutrality, the EC impact assessment states need to reduce 49% GHG by 2030. EU Parliament wants more... 

 

EC Overview of EU Climate Strategies and Targets

IFIEC at Romanian EU Council Event on Nuclear

On 19 February FORATOM - the European Nuclear Industry Federation organised a high-level conference together with the Romanian EU Council Presidency titled "Solutions for a 2050 Carbon-Free Europe". Speakers included Romanian Energy Minister Dr. Anton Anton, EU Climate Commissioner Arias

Cañete, IFIEC Vice President Peter Claes, Eurelectric Secretary General Kristian Ruby, ROMATOM President Cosmin Ghita and WindEurope CEO Giles Dickson.

With the exchange of views focusing on how low-carbon technologies can together contribute to manifesting the EU 2050 climate vision, the nuclear energy perspective was presented via the recently published FORATOM study “Pathways to 2050: role of nuclear in a low-carbon Europe”. The study highlights the important contribution of nuclear energy provides for an efficient transition towards a decarbonised European power system. It helps to ensure compliance with EU emissions targets, avoid temporary increase of emissions and locking in fossil fuels investments. The complementarity role of nuclear for renewables was also emphasised.

IFIEC's Peter Claes provided the perspective of industrial energy consumers, in particular the fact that they need a stable supply of electricity at an affordable cost. Equally important is storage as a back-up for renewables and the fact that they do not guarantee the continuous supply of electricity needed by the industry – and thus the importance of a reliable and low carbon baseload energy source. Other potential pathways to decarbonise the power sector, listed by Peter Claes, were renewables with gas, nuclear energy and geothermal energy.

EU Climate Commissioner Arias Cañete

 

Summary of the Event

Romanian EU Council Presidency Website

FORATOM Study

Presentations:

IFIEC

FORATOM .

WindEurope

Eurelectric

IFIEC Director Public Affairs Daniel Gerber leaves 

At the Board Meeting on 20 February, Daniel Gerber thanked IFIEC Europe's Board for the possibility to work for IFIEC. Following a short-notice offer from the European Commission, Daniel will soon take up a new role as an EU civil servant. 

"It has been a great pleasure to work with everyone involved in IFIEC. While I look forward to my new role, I also regret leaving IFIEC already. Over the last months we achieved important deliverables particularly on the association's visibility. For the successful and pleasant collaboration I would like to thank my colleague Roger Goffin, Steinar and all Board members - and remain with the thought, that in life, we always meet twice."

IFIEC Europe has partnered with the Energy Transition World Forum, which takes place on 16 May 2019 in Amsterdam. This high level conference will feature speakers from among the IFIEC membership, such as Hans Grünfeld from VEMW and Barbara Minderjahn from VIK. IFIEC members can attend the conference at discounted rates. For more information see the

Conference website

Relevant upcoming Stakeholder Events in Brussels

5 March: 5th EU Energy Summit

6 March: Solar Power Summit

6-7 March: Circular Economy Stakeholder Conference

8 March: CEPS Event on "Composition and Drivers of Energy Prices and Costs: Case Studies in Selected Energy Intensive Industries"

19 March: PCI Energy Days Conference (Projects of Common European Interest)

19 March: Euractiv Event on "Transforming the Global energy System"

9 April: Euractiv Event on "Contributing to a CO2 neutral Gas Supply - on the Road to 2050"  

22 May: Energy Storage in the Clean Energy for All Europeans Package Workshop

17-21 June: EU Sustainable Energy Week (IE seminar tbc)

EU Brussels NewsEU Parliament may raise EU 2030 Climate ambition

What a mess in the European Parliament! Pictured on the left (image is courtesy of Euractiv), the chairwoman of the Environment Committee Ioana Valean and Jerzy Buzek Chairman of the Industry and Energy Committee cannot agree on who is in charge of the Parliament's climate resolution. 

While confusion over technical rules is not an uncommon occurrence in the European Parliament, this final climate showdown has the potential to significantly raise EU 2030 climate ambitions. Both, the ENVI and ITRE committee resolutions will be put up for vote at the Strasbourg Plenary session in mid-March and it is not yet clear which one supersedes the other or whether they are to be merged.Both draft texts support the Commission's preference for net-zero by 2050. However, the largest political group (EPP conservatives) rejects that this requires reference for the 2030 targets to be raised to 55%. While ENVI explicitly backs 55% (this committee’s EPP members were outvoted on this aspect), ITRE makes no reference to changing the 2030 targets.

In summary, the reference for a 55% 2030 target splits the European Parliament and will lead to a final vote in which it is either removed or introduced into a final text. The vote is significant as it can influence whether or not the EU Energy & climate targets are to be revised again before 2030. 

Gas set to become main driver of EU

Energy Policy

For IFIEC, the new EU legislative cycle will bring major new challenges perfectly suited for its experts and the organisation's lobbying power. Chief among the upcoming tasks, is the EU's mission to regulate the decarbonisation of gas, possibly via setting of targets for low-carbon gases such as hydrogen or biomethane. A comprehensive "Gas Package" is expected to be presented by the Commission  in 2020. 

As quoted by news portal Euractiv, Bartłomiej Gurba, head of gas policy at the Commission, stated that “Gas is going to be one of the main drivers of energy policy”. With the Commission's internal kitchen still cooking its proposal, Gurba stated that the “cross-sectoral view is a driving force for decarbonisation” and “this is how we should look at the new market design for gas". Amid calls from parts of the industry and some stakeholders for the introduction of binding targets for renewable and decarbonised gases, others remain unconvinced, equally Gurba admitted that "One cannot go for a one-size-fits-all solution  that puts all decarbonised gases in the same basket".

Recommended reading:  

Euractiv Article "EU wary about one-size-fits-all target for ‘clean gas’ (27 Feb)"

Eurctiv Article "Gas industry boss: ‘We have to make gas greener’ (26 Feb)"

F lorence School of Regulation Workshop on   Gas (19 Feb)  

Commission eager to double Southern gas corridor 

On 20 February, the Southern Gas Corridor Advisory Council met in Baku, Azerbaijan. EU Commissioner  Oettinger attended the meeting, expressing the importance of Azerbaijan as strategic gas partner for the EU and unveiling Commission plans to double the volume of gas provided via this corridor in the next ten years. The SGC is a EU priority project aiming to transport 10 billion cubic meters of gas per year from the Caspian region through Georgia/Turkey to Europe. The 3'500 km corridor consists of the South Caucasus Pipeline, the Trans Anatolian Pipeline and the Trans Adriatic Pipeline.

 

Read full Euractiv Article

Innovation Fund for low-carbon technologies starts

On 26 February, the Commission announced the launch of the Innovation Fund investment programme worth over €10 billion for low-carbon technologies in several sectors to boost their global competitiveness.  The first call for proposals will be in 2020, with regular calls occurring until 2030. Climate Commissioner Arias Cañete said: “Less than three months after adopting our strategic vision for a climate neutral Europe by 2050, we are putting the money where the mouth is. Our objective is to keep building a modern, competitive and socially fair Paris-aligned economy for all Europeans. For this to happen, we will need deployment of clean innovative technologies on an industrial scale.”

 

Website of Innovation Fund

EU Commisson Press Release

Projects of Common Interest in gas infrastructure

The guidelines for trans-European energy infrastructure (the TEN-E Regulation) set the framework for modernizing Europe’s aging infrastructure. As part of this framework, nine priority corridors and three thematic areas have been identified as requiring urgent infrastructure upgrades.As part of the next list of Projects of Common Interest, on 26 February the Commission opened a consultation in the field of gas infrastructure. For more information and to submit views (deadline 20 May), click here . For an interactive map of all energy-related projects of common interest, click here

National NewsNational Energy and Climate Plans 2030

Important news: On 25 February, the European Commission announced that the 28 draft National Energy & Climate Plans have all been received and that the Commission is now analysing and evaluating them, with a view to present country-specific recommendations before end June 2019. If an individual country's draft NECP and its objectives, policies and measures do not sufficiently or not consistently contribute to reaching the energy union's objectives, or if the EU collectively does not make sufficient progress towards these objectives, the Commission may issue recommendations to countries by 30 June 2019 to amend the draft NECP. Member States then have until the end of 2019 to submit their final NECP.   

 All the draft plans can be viewed here

Some Country-specific points that stand out: 

Upcoming IFIEC Meetings 

9 April 2019: Working Party Climate & Efficiency, Avenue Louise 250, 11-15.30h

10 April 2019: Management Committee, Avenue Louise 250, 11-15.30h

11 April 2019: Working Party Electricity, Norway House, 11-16.00h

14 May 2019: Board Meeting, Avenue Louise 250, 11-15.30h

13 June 2019: General Assembly, Avenue Louise 250, 11-15.30h

19 June 2019: Working Party Electricity, Avenue Louise 250, 11-16.00h

2 July 2019: Working Party Climate & Efficiency, Avenue Louise 250, 11-15.30h

10 July 2019: Management Committee, Avenue Louise 250, 11-15.30h

11 September 2019: Management Committee, Avenue Louise 250, 11-15.30h

17 September 2019: Working Party Climate & Efficiency, Avenue Louise 250, 11-15.30h

18 September 2019: Working Party Electricity, Avenue Louise 250, 11-16.00h

15 October 2019: Board Meeting, Avenue Louise 250, 11-15.30h

16 October 2019: Energy Forum, TBC 

12 November 2019: Working Party Climate & Efficiency, Avenue Louise 250, 11-15.30h

13 November 2019: Working Party Electricity, Avenue Louise 250, 11-15.30h

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