25 February 2015: The European Commission has adopted a framework strategy that aims to create, for the European Union, a resilient ‘Energy Union’ with a forward-looking climate change policy. An annexed action plan presents fifteen “action points” for the coming years, including electricity market legislation, enhanced regional cooperation, increased funding for energy efficiency and a new renewable energy package. Two related communications focus on improved electricity interconnection and a vision for a global climate change agreement in Paris in December 2015.

The ‘Framework Strategy for a Resilient Energy Union with a Forward-Looking Climate Change Policy,’ was launched on 25 February 2015, in Brussels, Belgium. Based on the objectives of the EU’s energy policy, security of supply, sustainability and competitiveness, the Energy Union focuses on five dimensions: energy security, solidarity and trust; an integrated European energy market; energy efficiency and moderation of demand; decarbonization of the economy, including with renewable energy and a emission reduction target; and research, innovation and competitiveness.

With regard to energy security, the strategy includes: the development of a resilience and diversification package for natural gas, and a strategy for enhanced use of liquefied natural gas (LNG) and storage potential; a revision of the Security of Gas Supply regulation; work on the Southern Gas Corridor; and the establishment of liquid gas hubs with multiple suppliers.

On energy efficiency, the Commission will undertake a review of the Energy Efficiency and Energy Performance of Buildings Directives, and support simplification of access to existing financing for measures in building stocks. The Commission also proposes tackling energy poverty through a combination of measures, with an emphasis on energy efficiency improvements.

On renewable energy, the Commission plans to: implement existing legislation and establish new market rules for efficient market integration of renewables; facilitate convergence of national support policies and schemes; promote focused research and demonstration, including through dedicated EU funds; support renewable heating and cooling; and accelerate decarbonization in the transport sector through electrification, advanced biofuels and integration of the energy and transport systems.

The target of 40% domestic greenhouse gas (GHG) emission reductions by 2030, compared to 1990 levels, endorsed by EU leaders in October 2014, will, inter alia: serve as a basis for the EU’s input to the UN negotiations for an international climate change agreement in 2015; be delivered in the most cost-effective manner possible; contribute to growth, competitiveness and job creation; improve the EU’s energy security and resource efficiency; reduce air pollution; and foster green growth. On next steps in this regard, the European Council will endorse implementing legislation for the EU’s 2030 climate and energy framework, with the adoption of a market stability reserve for improving the functioning of the EU Emission Trading System (ETS) as a priority.

Describing the strategy as “the most ambitious European energy project since the Coal and Steel Community,” Maroš Šefčovič, European Commission Vice-President responsible for the Energy Union, said the strategy would “set in motion a fundamental transition towards a low-carbon and climate-friendly economy” that offers citizens “more affordable, secure, and sustainable energy.”

Noting that the “path to real energy security and climate protection begins here at home,” Miguel Arias Cañete, Commissioner for Climate Action and Energy, stated he would focus on building the EU’s common energy market, saving energy, expanding renewable energy and diversifying the Union’s energy supply.

An ‘Interconnection Communication,’ launched in parallel, sets out the steps for achieving a 10% electricity interconnection between the EU Member States by 2020.

And a Communication on the UN climate change agreement lays out the EU’s vision for a “transparent and dynamic, legally binding” UN climate change agreement, or “The Paris Protocol,” that sets the world on a pathway to prevent global warming from reaching dangerous levels. This Communication seeks to translate “the decisions taken at the European Summit in October 2014 into the EU’s proposed emissions reduction target (the so-called Intended Nationally Determined Contribution, or INDC) for the new agreement.” [European Commission Press Release] [European Commission Fact Sheet on the Energy Union] [A Framework Strategy for a Resilient Energy Union with a Forward-Looking Climate Change Policy] [European Commission Fact Sheet on the Interconnection Communication] [European Commission Fact Sheet on the Climate Agreement]