RIGA, Latvia, June 20, 2007.
Some people say that renewables are too expensive, but the European energy commissioner says it is “too expensive not to take this step.”
“With oil prices at $70 and a carbon price of Euro 20, the target to supply 20% from renewable energy more or less pays for itself,” Andris Piebalgs told a Baltic regional energy forum. “Not only, therefore, is this policy a sensible measure to enable Europe to manage its security of energy supply, it also represents an enormous commercial opportunity for Europe.”
The EU will table a new directive this year that will legislate legally-binding national targets on renewable energies, to source 20% of the continent’s energy mix from renewables by 2020.
“The Baltic region has considerable potential to increase the share of renewable energy, especially with regard to the use of biomass, wind energy and biogas,” he explained. “Renewable energy also has the advantage of being indigenous, as well as clean. It creates jobs.”
The EU has recommended a 30% reduction in GHG emissions for the developed world by 2020 and will unilaterally commit itself to a 20% goal “but, in reality, we know that this is just the beginning,” he adds. “We will need cuts of 50% and more by 2050.”
“To achieve this requires a massive shift to energy efficiency, to low carbon and renewable energy and to carbon sequestration,” he says. “Truly, this amounts to a new industrial revolution.”
The regions of the world which take real action to address climate change “will gain massively in terms of security of supply and competitiveness tomorrow,” he continues. “It is these regions that will be better able to deal with future price shocks, having invested in indigenous low-carbon energy with stable prices.”
Global demand for energy will increase 50% by 2030 as population grows from 6.6 to 9 billion people. “Such dramatic increases pose a threat to the global economy and to the climate, as energy consumption will be accompanied by a related rise in CO2 emissions,” including an increase in CO2 emissions by 2030 of 110%.
“With every challenge comes an opportunity,” he concluded. “The real challenge for the EU, and for the Baltic States in particular, is to translate its energy needs into more sustainable energy security for its citizens.”
