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The EU’s multi-front approach undermines European competitiveness and the development of common energy markets

Finnish Energy Industries association meeting in Levi, 8th of May, 2008

The EU has decided to restrain climate change by reducing carbon dioxide emissions, better energy efficiency and by increasing the use of renewable energy and biofuels. These are all fine measures when used individually. However, without a focus, the parallel use all of these measures will create unnecessary costs because several control mechanisms are required.

Instead, if emissions trade would be the main target it would affect the other goals positively as well, since it spurs for biofuel and energy efficiency. If we also want to support renewable energy sources it should primarily be done with a determinant approach to investment aid, and secondarily with a cost-effective and market orientated certificate model that could be used in the whole EU. Otherwise renewable energy will be supported differently in every member state. When the goals are very high and the amount of support is limited, it might lead to unnecessary rivalry among the member states, elevate costs and hinder the development of a common market.
 
Too high and firm targets will undermine the EU’s competitiveness and jeopardize the Lisbon strategy. I hope some modifications will be made to the EU’s climate strategy during the French presidency since we already hear the growing criticism of biofuel as the raw materials are questioned and food prices are rising. (Juha Naukkarinen, Managing Director, Finnish Energy Industries)

For further information, please contact Juha Naukkarinen, tel. +358 50 60 772