RISKS AND CHALLENGES IN THE PROCESS OF IMPLEMENTATION OF THE EU CLIMATE PACKAGE
RISKS AND CHALLENGES IN THE PROCESS OF IMPLEMENTATION OF THE EU CLIMATE PACKAGE

Summary/Abstract: The European Commission's 60 billion Euros climate action and renewable energy package has received a mixed reaction from the Member States, environmental organisations, industry and experts. More precisely, the Commission proposed a 20 % cut in carbon dioxide emissions so that by 2020 they are 20 % lower than in 1990. In the case of an international agreement, the target could be increased to 30 % by 2020. The restructuring of Europe's energy markets has attracted the attention of more than just traditional players in the energy sector. In the light of increasing concerns about climate change, environmental sustainability, economic growth and security of energy supply, a growing chorus of voices has chimed in for the shape of the EU’s future energy policy. Reaching the targets set in the new package will be quite challenging. Some of the EU countries have very low level of renewable energy use and they are already scoping a vast expansion of wind energy offshore. Energy-intensive industries which are included in emissions trading continue to receive the necessary CO2 allowances free of charge. Thus, the package should apply to steel, aluminum and cement production. While most parties agree that Europe's energy policy should simultaneously guarantee security of supply, competitiveness and environmental sustainability, stakeholders differ widely on how these objectives should be achieved. The success of the internal energy market will also be heavily dependent on a predictable and stable carbon price, without which electricity producers across Europe will be unable to make correct investment and business strategy decisions. The paper will discuss the reactions towards the new package of measures, the new challenges and the possible scenarios in the process of its implementation.

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