1/6/2007
Andris Piebalgs, Energy Commissioner, ”Energy and Climate Change”, Ministerial Conference "Energy in a Changing World" Paris, 31 May 2007

Director General Matsuura,

Minister Khristenko,

Dear Ministers,

Your Excellencies,

Ladies and gentlemen,

I would like to thank both organisers of the conference, Director General Mr.Koichiro Matsuura and the Russian Minister of Industry and Energy Mr.Viktor Khristenko, for the opportunity extended to me to address this distinguished audience.

I highly welcome your initiative of putting the issues related to the role of science for sustainable energy development and addressing the energy poverty at the core of the discussion on 'Energy in a changing world'.

In my opening remarks, I would like to give you a brief insight in the European Union’s response to the current challenges.

We are facing challenging times for the world's energy sector and for mankind. Demand for energy is set to increase by more than 50% by 2030. If continuing business as usual, such a dramatic increase of energy demand poses a threat to the global economy and to the climate, as energy consumption will be accompanied by a related rise in CO2 emissions.

Climate change is already visible to us all. Evidence about its reality is overwhelming and the scientific community unanimous. The IPCC message was clear. It is becoming increasingly clear that without real and effective action, the impact on our environment, on our economy, and our way of life will be tremendous. Climate change has already reached the top of the political agenda in most developed countries yet it is said to affect first of all the poorest countries of the world.

We have to realise that there is just a brief window of opportunity during which we can deal with this problem. If the world waits a decade or more, it will be too late. We will have left our children and grandchildren the legacy of climate change and by that time there will be absolutely nothing that they will be able to do about it.

But I believe that we are turning a corner, and that it is becoming increasingly evident that the world will act together to rise to this challenge. We must only hope that the action is not too little and too late. But I believe that we will succeed, for a reason perhaps best expressed by Jeffrey Sachs, the Director of the Earth Institute of the Colombia University in a recent series of lectures.

He points out that the world has already dealt with a similar problem through international cooperation in the 1990's, that of chlorofluorocarbons - or CFC's - which were destroying the earth's ozone layer, a discovery which was also made by Paul Crutzen. As Sachs observes, getting action to deal with this involved a five stage process.

Firstly, science identified the problem. Secondly, the vested interests - the makers of CFC's and aerosols in this case - publicly and actively doubted the science. But nature, the laws of physics, has a way of overcoming vested interests. In the case of CFC's it was the photo taken by NASA of the hole in the ozone layer. So thirdly, came public acceptance - the realisation that the problem was a personal one that would affect the lives of our own children and grandchildren. And so the call to act. Then came the scientists and researchers, looking for solutions. And finally, as Sachs puts it, the crucial stage, when the previously sceptical companies whisper in the ears of politicians "its OK, you can reach an agreement, we can handle this". And from this point on an international agreement was quickly reached.

The climate change debate is following the same path. Although global warming was first identified in 1896, it has only recently – after Hurricanes, after melting of the glaciers in front of our eyes and statistically meaningful and worrying increases in average temperatures - become accepted by global community. And it is now beginning to be widely understood that climate change is, indeed, personal.

So, after the initial scepticism on the science, fuelled by vested interests, we now have increasing public acceptance about the need to act, right across the globe. Science has followed and I believe that we are entering Sach's final phase; companies are indeed beginning to whisper in the ears of politicians "its OK, you can reach an agreement, we can handle this".

Ladies and Gentlemen,

The European Union is resolved to seriously take its responsibility in the struggle against global warming. As one of the world's largest energy consumer and a major emitter of green house gases, the need for a new European Energy Policy to face these challenges is self-evident.

Last march the EU adopted a fully comprehensive action plan to steer such a new energy policy for Europe. It will aim to ensure the sustainability of the energy we use, our security of supply and the competitiveness of the economy. We have embarked in the most wide-ranging reform of Europe's energy policy ever attempted which will fundamentally change the direction we were heading until now.

The point of departure for the new energy policy is a strategic objective: we redirect our energy policy to enable the EU to achieve a 20% reduction of our greenhouse gas emissions by 2020, compared to 1990 levels. This means transforming Europe into a highly energy efficient and low CO2 energy economy: nothing less than a new industrial revolution in the European energy policy! So, what steps do we envisage?

1) Towards the end of this year, the Commission will table a revision of the Emissions Trading Scheme, taking it beyond 2012 and evolving it so that it is fit to provide the 20% greenhouse gas cuts that we are looking for to achieve by 2020. And it will continue - redouble - its efforts to reach a global agreement on climate change.

2) And also by the end of this year, I will table a new "umbrella renewables Directive". This will give very concrete effect to the European Council's acceptance of legally binding national renewable energy targets.

A 20% renewable energy target by 2020 is, of course, very ambitious. I have heard some describe it as unrealistic. But if we allow ourselves to accept that such levels of renewable energy are "impossible", we also have to accept that we will leave our children and grandchildren the legacy of global warming. If the whole Europe would follow Germany and Denmark’s lead on renewable energy, for example, we would reach the levels we need to meet our 20% objectives. I have heard others argue that it will be too expensive. I think that it is too expensive not to take this step.

3) From next year onwards, the Commission will start rolling out a whole series of initiatives on energy efficiency; from minimum product standards, to better labelling, to improved building codes, to more efficient transport systems in Europe's cities. The potential here is huge, not just in terms of reducing emissions, but equally in improving Europe's competitiveness. In addition, in the coming months the Commission intends to put forward the basis of a new international agreement on energy efficiency. This could bring together the OECD and key developing countries to agree common approaches to saving energy. The potential energy saving and CO2 reduction is enormous - improved energy efficiency alone for the EU could cut around 20% of current global CO2 emissions.

4) At the end of this year the Commission will answer the call of the European Council for a European Strategic Energy Technology Initiative. This is a fundamental plank in Europe's new Energy Policy and in my view the key to turning the challenge of climate change and energy security into a competitive advantage for Europe.

Like all industrial revolutions, success in combating climate change will be technology driven. This means a new generation of energy efficient equipment, carbon sequestration technologies and new materials that bring down the cost of wind and photovoltaic, to name but a few.

It makes no sense for Europe to lead the world in dealing with climate change but not take leadership in developing the next generation of low carbon technology. The financial means made available to energy research, including renewable energy, energy efficiency and carbon sequestration will be significantly increased in the 7th Framework Programme for Research and Development in the EU.

5) Finally, I would like to emphasize the need for a common external EU energy policy which is enhance the EU's ability to engage in cooperation with the rest of the world. As Minister Khristenko mentioned in his speech Energy Policy is one of the greatest challenges to address. In this regard, the Commission has proposed to launch by the end of the year, an EU- Africa Energy Partnership. Our attention will focus on strengthening the EU – Africa dialogue on access to energy and energy security; increasing investment in energy infrastructure, including promotion of energy efficiency and renewable energy, placing capacity building in the areas of energy and climate change high on our agenda of development aid.

Global warming is a global challenge and energy security will only increase from real international action. By being the largest integrated energy market in the world, the EU can set the pace on these issues, but it needs to bring other partners on board. The interest shown by UNESCO Director General to this subject is the evidence of the need of the broadest international coalition to address such issues as the reduction of green house gases, the improvement of energy efficiency, the development of sustainable energy sources and tackling the energy poverty.

Ladies and gentlemen,

We have a collective responsibility towards all our citizens to prepare a better future. Markets and technologies will not solve all our problems. Strong policies and real political will are needed to reverse the trends. Business as usual is not an option. Action is needed.

Our new Energy Policy for Europe is the European Union’s response. It is truly ambitious, it is a plan of action for making Europe become a motor for prosperity and a key contributor to growth and jobs, overcoming the threats of climate change and globalisation. It can be the beginning of a new industrial revolution in the energy use in the EU.

But to achieve of all this, we need to act jointly and urgently. Europe and the world will benefit from our resolve. Let us do so.

Again, quoting Kennedy to finish my presentation, "Man's reason and spirit have often solved the seemingly unsolvable, and we believe that he can do it again".

Thank you for your attention.