1 December 2014: The International Energy Agency (IEA) has launched a report reviewing the European Union’s (EU) energy policies and recommending cost-effective ways to meet the EU’s 2030 energy and climate targets. Titled ‘Energy Policies of IEA Countries: European Union 2014 Review,’ the report assesses the state of renewable energy, energy efficiency and greenhouse gas (GHG) emissions and analyzes the EU’s energy security and industrial competitiveness.

In the report, IEA highlights the EU’s global leadership in transitioning to a low-carbon economy, noting progress toward the 20-20-20 goals. Under these goals, the EU intends to cut emissions by at least 20%, improve energy efficiency by 20% and increase the share of renewables in the energy mix to 20%, all by 2020. The report notes that, while the EU is on track to meet the emissions goal, largely as the result of reduced carbon intensity and vehicle fuel economy standards, it will need to supplement current efforts with policy initiative to meet the latter two goals.

The report suggests an ‘Energy Union’ will be needed for the EU to meet its 2030 targets of a 40% reduction in emissions, boosting renewables’ share to 27% and improving efficiency by at least 27%. IEA Executive Director Maria van der Hoeven explained such a union would “feature an integrated energy market and effective climate and energy policies.”

While the report commends the sustainability aspect of the EU energy policy, it expresses concern that the other two tenets of EU energy policy, security of supply and economic competitiveness, require targeted actions and should be addressed through the suggested Energy Union. The report’s recommendations focus on actions that can create a cohesive internal energy market within the EU, with diversified supplies and greater price liberalization.

The report recommends the EU, inter alia: further integrate EU electricity markets across borders; boost the level of interconnectivity of its energy network; and deregulate retail prices and engage consumers through demand-side response, smart meters and grids and greater choice of products and tariffs. It further recommends the EU ensure: cooperation on nuclear power plant safety standards and regulations; coordination of radioactive waste disposal and consider creating regional repositories; and adequate energy research, development and demonstration (RD&D) funding to meet energy policy goals.

IEA launched the report at an event in Brussels, Belgium, on 1 December 2014. [IEA Press Release] [Publication: Energy Policies of IEA Countries: European Union 2014 Review Executive Summary] [IEA Event Page] [IISD RS Story on EU 2030 Climate and Energy Policy Framework]