European Union energy policy

The European Union energy policy is facing huge challenges and changes. The operational environment of energy policy is facing challenges concerning both the constantly growing demand for energy, its availability, and the threat scenarios brought about by climate change. Energy policy choices are highly significant in the effort towards a balance of economic, social and environmental factors necessary for sustainable development.

When discussing the integration of Europe, it is often pointed out that energy has been at the heart of European integration from the start. The founders of the European Community recognised the importance of energy to society, aiming for an energy policy that would not only secure the supply of energy, but also act as an engine of political integration. This is shown by the European Coal and Steel Community treaty signed in 1951 and containing themes related to energy. The EURATOM treaty, signed by the member states in 1958, was also an indication of the belief in atomic energy as the foundation of a common energy policy, prevalent at the time. The first oil crisis of 1973 showed that it was necessary to develop an energy strategy that would minimise the disruptions caused by availability of energy and thus increase Europe’s energy self-sufficiency.

Arguments for the necessity of a common Union energy policy include the need to respond to the challenges brought to the energy sector by climate change, security of energy supply, and Europe’s competitiveness.

Thus, the European Union energy policy has three principal aims: sustainable development, maintaining competitiveness, and ensuring security of energy supply. The routes to these three goals are improving energy efficiency, furthering the deployment of new technology, and better utilisation of renewable energy sources.

In March 2007, the European Council set the common strategic targets of reducing emissions by 20 per cent from 1990 levels and improving energy efficiency by 20 per cent by the year 2020. A further target is to increase the use of renewable energy sources, so that their share of energy end-use would be 20 per cent by the year 2020. In the transport sector, the target for renewable energy was set at 10 per cent. In addition to these targets, a challenge facing the European Union is the significant improvement of the efficient functioning of the internal electricity and natural gas markets.

Innovations and rapid technological development are necessary if the targets of energy policy are to be reached. The greatest challenges in the field of technology in the coming years concern especially the development of clean energy technologies: taking into account the sustainability criteria covering production and deployment of second generation biofuels, commercial deployment of carbon dioxide capture and storage; more effective utilisation of wind and solar energy; fourth generation nuclear power; improving the power network and connections, and furthering energy efficiency.

Thus, the aim is to move towards a more sustainable, efficient and varied combination of energy sources in order to ensure energy security.

Lisbon Treaty introduced energy chapter to original Treaty

The Lisbon Treaty, which reformed the European Union, contains a chapter on energy for the first time. It defines the general goals, which are functional energy markets; security of energy supply; energy efficiency and energy saving; development of renewable energy sources, and the linking together of energy networks.

The Lisbon Treaty has been considered to increase solidarity in energy policy between member states, as well as improving energy security. Under the Treaty, each member state can decide for itself how and from which energy sources it produces the energy it requires.

Future of energy policy

The EU Commission has issued several strategic documents concerning the future of energy, such as Energy 2020 - A strategy for competitive, sustainable and secure energy issued at the end of 2010 and the Energy Infrastructure Package. In addition to scrutinising the medium term, the Community is drafting several roadmaps, looking as far as 2050. Roadmaps already published or under way include Roadmap to a low-carbon economy, Transport White Paper, Roadmap for a resource-efficient Europe, and Energy roadmap. The EU target is taking shape as reducing carbon emissions by 80-95% by the year 2050. Currently under scrutiny are the interim stages between the years 2020 and 2050.

The EUR-Lex database of the European Union portal contains all European Union legislation. The subject areas of energy and the environment alone contain more than 500 paragraphs of law.