The European Union is strengthening its efforts to make its energy systems cleaner and more resilient, reinforcing its global leadership in reducing greenhouse gas emissions, according to a new energy policy review by the International Energy Agency.
EU greenhouse gas emissions in 2019 were 23% lower than in 1990, meaning the bloc had already met its target of a 20% decline by 2020, according to the new IEA report. Cleaner electricity was the main driver behind the reduction, with the carbon intensity of European power generation now well below most other parts of the world. The EU is a leader in renewable energy technologies, notably offshore wind, and many of its Member States have policies in placed to phase out coal. However, greenhouse gas emissions in the EU transport sector are still rising, and the use of energy in buildings remains fossil-fuel intensive.
The new IEA report sets out recommendations to help the EU meet its 2030 targets for greenhouse gas emissions, renewables and energy efficiency as well as its longer-term decarbonisation goals. It finds that stronger policies than those currently in place will be needed to deliver on these ambitions and that the energy sector needs to be at the heart of those efforts, as it accounts for 75% of EU greenhouse gas emissions.
In December, the new European Commission led by President Ursula von der Leyen launched the European Green Deal in a bid to make the EU climate neutral by 2050. This plan quickly faced the added challenge of Covid-19, which has pushed the world into a sharp economic downturn. This crisis is a test of energy sector resilience and policy makers’ commitment to clean energy transitions. The EU energy sector has so far stood up well to the pressures it has been under, but the economic downturn continues to weigh on company and government balance sheets. Last month, the European Commission presented a massive recovery plan to counter the economic damage from Covid-19. The plan aims to achieve a resilient, inclusive and green recovery in Europe while laying the foundations for a low-carbon future.
“With its recovery plans, the EU has a real opportunity to boost economic activity, create jobs and support the long-term transformation of its energy sector,” said Dr Fatih Birol, IEA Executive Director, as he launched the new report with Kadri Simson, the European Commissioner for Energy. “The Sustainable Recovery Plan described in the IEA’s recent World Energy Outlook Special Report shows how to achieve these three objectives simultaneously. The IEA is working with the European Commission and EU Member States to design policies to repair the economic damage of the crisis while making their energy systems cleaner and more resilient.”
“The IEA’s review of EU energy policy comes at a crucial moment, as we debate the investment priorities for our economic recovery and the future EU budget,” said Commissioner Simson. “The review supports the Commission’s firm commitment to a green recovery, which is at the heart of our proposal for a €750 billion recovery plan. We will continue to work closely with the IEA as we design European policies to transform our energy sector and at the same time provide jobs, growth and better quality of life.”
As EU Member States have different energy policies and approaches to decarbonisation, the IEA report concludes that strong cooperation will be needed under the framework of the National Energy and Climate Plans. It also recommends that the EU build on the bloc’s integrated energy market and cross-border trade and develop stronger carbon price signals.
“The European Green Deal represents an opportunity to strengthen economies across the continent by pooling investments in energy technologies that are likely to play a crucial role in the future,” Dr Birol said. “Hydrogen electrolysers and lithium-ion batteries could potentially be game-changers both for the EU and globally. I welcome the efforts by the European Commission to accelerate innovation and commercialisation in these key areas. ”
The IEA report also underscores that maintaining EU energy security remains critical, as the energy sector is vital for the health of citizens and economies. In particular, EU electricity systems and markets will need to accommodate growing shares of variable renewable energy. At the same time, risks such as extreme weather and cybersecurity threats are intensifying the challenges for designing and operating electricity systems.
The EU is facing the retirement of half its nuclear power generation capacity over the next five years unless decisions are taken to extend the lifetimes of the plants, which currently provide a major part of the continent’s low-carbon electricity. To support the phase-out of coal, natural gas is becoming essential to ensure the flexibility of electricity systems in Europe, but the region’s supply of gas will be largely dependent on imports. In this context, the IEA report finds that the EU cannot afford to reduce its energy diversity and needs to invest in electricity sector resilience.
The IEA report also points out that as the EU accounts for a relatively small share of global greenhouse gas emissions (8%), global climate action and global partnerships will be essential to amplify its climate ambitions. The IEA stands ready to continue to support EU efforts to strengthen clean energy transitions worldwide by sharing lessons and insights from European experiences across the globe.
Innovation and market reform needed to drive Japan’s clean energy transition
Japan will need to move quickly to make headway on the steep emissions reductions that are required to achieve its recently announced ambition of reaching carbon-neutrality by 2050, the International Energy Agency said today in its latest in-depth review of the country’s energy policies.
Nearly a decade after the 2011 earthquake and the resulting Fukushima nuclear accident, Japan has made real progress towards developing a more efficient, resilient and sustainable energy system. It has embarked on major reforms of its energy market and diversified its energy mix. Energy-related CO2 emissions have fallen continuously since their peak in 2013, thanks to the expansion of renewable energy, the restart of some nuclear power plants and energy efficiency gains. By 2018, Japan’s emissions had declined to a level last seen in 2009. Reliance on fossil fuels has also declined but remains high at nearly 90% of energy supply, making Japan among the most carbon-intensive economies of IEA members.
“Japan needs to accelerate the deployment of low-carbon technologies, remove regulatory barriers and increase competition in its energy markets if it is to reach carbon-neutrality by 2050. I welcome Japan’s new Green Growth Strategy that puts emphasis on these priorities. The IEA is committed to supporting the government in these vital efforts,” said Dr Fatih Birol, the IEA’s Executive Director, who launched the report today at an online event with Shin Hosaka, Commissioner of the Agency for Natural Resources and Energy at Japan’s Ministry for Economy, Trade and Industry.
The new IEA report on Japan’s policies analyses its energy challenges and recommends possible solutions to help it achieve a secure, affordable and sustainable energy future. It finds that Japan has made important strides in reforming its domestic electricity and natural gas markets. The increasing competition in these sectors is encouraging, but further reform is needed to achieve a true level playing field for all market participants. Additional regulatory reforms will be important to encourage investments in zero-emissions electricity and to improve power system flexibility. The IEA also calls for policy makers to ensure that the market regulator has sufficient powers and independence.
The report highlights that Japan has seen continuous growth in renewables in the power sector, but that grid constraints have hampered investment in new projects and posed challenges to security of supply. Creating a well-integrated national grid and taking steps to improve the operational efficiency of the electricity system will facilitate the integration of more renewables while enhancing system resilience. The recent cold snap in January led to very low reserve margins in Japan’s electricity systems. This event provided a reminder of the importance of regional interconnections and the need to have sufficient generation capacity.
The IEA welcomes the government’s recent announcement to phase out inefficient coal plants by 2030. This will further improve the already high efficiency of Japan’s thermal power fleet. Yet even efficient coal plants emit more CO2 than any other power generation source, and Japan ranks among the few IEA members that plan to add new coal capacity. Japan should tackle emissions from those new coal power plants by retrofitting, repurposing them as flexibility sources or able to use other fuels, or through other measures to help them avoid becoming stranded assets.
The IEA report highlights that Japan’s strong innovation and technology base can play a vital role in developing the technologies needed to achieve its 2050 energy and climate ambitions. “I applaud Japan for its leadership in advancing low-carbon hydrogen and carbon-recycling technologies, which will be crucial for decarbonising sectors where emissions are hardest to reduce, such as long-distance transport and heavy industry,” Dr Birol said.
Reducing the costs of these technologies will be essential to promote their deployment at scale. Stronger reliance on market-based instruments is an additional option for Japan to reduce emissions cost-effectively, foster innovation for low-carbon technologies and further increase Japan’s already high level of energy efficiency.
New EU energy labels applicable from 1 March 2021
To help EU consumers cut their energy bills and carbon footprint, a brand new version of the widely-recognised EU energy label will be applicable in all shops and online retailers from Monday, 1 March 2021. The new labels will initially apply to four product categories – fridges and freezers, dishwashers, washing machines, and television sets (and other external monitors). New labels for light bulbs and lamps with fixed light sources will follow on 1 September, and other products will follow in the coming years.
With more and more products achieving ratings as A+, A++ or A+++ according to the current scale, the most important change is to return to a simpler A-G scale. This scale is stricter and designed so that very few products are initially able to achieve the “A” rating, leaving space for more efficient products to be included in the future. The most energy efficient products currently on the market will typically now be labelled as “B”, “C” or “D”. A number of new elements will be included on the labels, including a QR link to an EU-wide database, which will allow consumers to find more details about the product. A number of ecodesign rules will also come into force from 1 March – notably on reparability and the need for manufacturers to keep spare parts available for a number of years after products are no longer on the market.
Commissioner for Energy, Kadri Simson, said: “The original energy label has been very successful, saving an average household in Europe several hundred euros per year and motivating companies to invest into research and development. Until the end of February, over 90% of products were labelled either A+, A++ or A+++. The new system will be clearer for consumers and ensure that businesses continue to innovate and offer even more efficient products. This also helps us to reduce our greenhouse gas emissions.”
As well as rescaling the energy efficiency class of the product concerned, the layout of the new label is different, with clearer and more modern icons. Like the previous labels, the rescaled labels show more than just the energy efficiency class. For a washing machine, for example, they show at a glance the number of water liters per cycle, the duration of a cycle, and the energy consumption, as measured for a standardised programme.
A further significant change is the introduction of a QR code on the top right of the new labels. By scanning the QR-code, consumers can find additional information about the product model, such as data relating to the dimensions, specific features or test results depending on the appliance. All appliances on the EU market have to be registered in a new EU-wide database – European Product Registry for Energy Labels (EPREL). This will further facilitate the comparison of similar products in the future.
In addition to the new energy labelling rules, there are corresponding new regulations on ecodesign that take effect on 1 March 2021. These relate notably to the updated minimum efficiency requirements and reinforce consumer rights to repair products and support the circular economy. Manufacturers or importers will now be obliged to make a range of essential parts (motors and motor brushes, pumps, shock absorbers and springs, washing drums, etc.) available to professional repairers for at least 7-10 years after the last unit of a model has been placed on the EU market. For end-users, too (i.e. consumers who are not professional repairers, but like to repair things themselves), manufacturers must make certain spare parts available for several years after a product is taken off the market – products such as doors or hinges and seals, which are suitable for DIY action. The maximum delivery time for all these pieces is 15 working days after ordering.
The EU energy label is a widely recognised feature on household products, like lightbulbs, television sets or washing machines, and has helped consumers make informed choices for more than 25 years. In an EU-wide (Eurobarometer) survey in 2019, 93% of consumers confirmed that they recognised the label and 79% confirmed that it had influenced their decision on what product to buy. Together with harmonised minimum performance requirements (known as ecodesign), EU energy labelling rules are estimated to cut consumer expenditure by tens of billions of euros every year, whilst generating multiple other benefits for the environment and for manufacturers and retailers.
The new categories for the rescaled label were agreed after a rigorous and fully transparent consultation process, with the close involvement of stakeholders and Member States at all stages, scrutiny by the Council and the European Parliament and with sufficient involvement of and notice provided to manufacturers. As required by the framework regulation, other product groups will be “rescaled” in the coming years – including tumble dryers, local space heaters, air conditioners, cooking appliances, ventilation units, professional refrigeration cabinets, space and water heaters, and solid fuel boilers.
The switch to the rescaled labels coincides with the entry into force of two horizontal (“omnibus”) regulations recently adopted to correct or clarify a range of issues identified in the concerned energy labelling and ecodesign regulations as originally adopted in 2019.
E-Boda-Bodas: a promising day for electric transportation in East Africa
Forty-nine motorcycles made little noise but raised much interest in Nairobi’s Karura Forest this morning, as the UN Environment Programme (UNEP) launched a pilot electric bikes project in the presence of Kenyan government officials and business leaders. Following the pilot phase in four locations in Kenya, the project is expected to expand in an effort to reduce air pollution, improve national energy security and create green jobs.
“Kenya is importing more motorcycles than cars, doubling its fleet every 7-8 years. These are generally inefficient and poorly maintained polluting motorcycles,” said Joyce Msuya, UNEP Deputy Executive Director. “Kenya’s electricity is very green in 2019 with more than 80% was generated by hydro, solar, geothermal, and wind. Shifting to electric bikes in Kenya, Rwanda, Uganda and elsewhere will reduce costs, air pollution and Greenhouse Gas Emissions, as well as create jobs.”
“The average motorcycle is estimated to be 10 times more polluting per mile than a passenger car, light truck or SUV. Hydrocarbons are dangerous to human health,” said Peter Anyang’ Nyong’o, Governor of Kisumu County. “Electric motorcycles not only mitigate against this health hazard but also help reduce noise pollution that the rampant increase of petroleum powered motorbikes currently causes in our cities.”
The pilot aims to help policy makers assess the barriers in uptake of the much-needed technological shift towards electric bikes, and to demonstrate that the shift is feasible and within reach. In Kenya, the number of newly registered motorcycles, commonly used as taxis (boda-boda), was estimated in 2018 at 1.5 million and will likely grow over five million by 2030. Though developing countries have the fastest growing fleets of bikes, most lack vehicle emissions standards or programmes and incentives to promote zero emission vehicles.
The pilot test launched today in Kenya is based on a study implemented by the Energy and Petroleum Regulatory Authority, the University of Nairobi, and Sustainable Transport Africa. The pilot includes a host of local partners, including ministries, and national and sub-national authorities, and uses bikes donated by Shenzhen Shenling Car Company Limited (TAILG). It will last 6-12 months and is replicated in Uganda, Ethiopia, the Philippines, Thailand and Viet Nam. The overarching project, “Integrating Electric 2&3 Wheelers into Existing Urban Transport Modes in Developing and Transitional Countries” is supported by UNEP with funding from the International Climate Initiative (IKI) of the German Ministry for the Environment.
John Chege, infrastructure coordinator from Friends of Karura Forest said, “In my restoration work, the bike will help me move swiftly through the vast forest of over 1000 hectares in a very short period. At first, I was nervous about having to charge it, but now I got used to it. Since it is fast and emits no noise and air pollution like the diesel motor, they allow us to provide better security in the forest and tackle one of Nairobi’s worst environmental problems.”
Two- and three-wheelers are a central transport mode in many low and middle-income countries, including African ones, quickly rising in numbers to a 50 percent increase by 2050. Highly polluting two- and three-wheelers can account for the same amount of emissions as a passenger car. A rapid global shift to electric motorcycles can result in saving 11 billion tons of co2 and about USD 350 billion by 2050 (more than double the annual energy-related emissions in the USA and about 14 times the 2019/2020 budget of Kenya).
A global leapfrog to electric vehicles, already underway in countries like Norway and China, is essential to curb carbon dioxide emissions. Transportation contributes approximately one-quarter of all energy related CO2 emissions. By 2050 it is likely to reach one-third, when the global number of passenger cars is projected to more than double. This growth is expected mostly in low-income countries, where there are rarely any vehicle emissions standards.
Scaling up the transition to electric mobility will require investments in battery charging infrastructure. Kenya’s electric power generation capacity is sufficient to support the charging infrastructure. However, while demand for motorcycles is high, particularly in rural areas, distribution networks are inadequate. However, this challenge may be tackled by using solar energy, setting up charging stations, consulting boda-boda operators and using lithium ion batteries.
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