Policies and Measures in the EU
Policies and Measures (summary)

Cutting emissions of greenhouse gases like carbon dioxide (CO2) depends on how rapidly low-emission technologies and less-polluting ways of doing things can be implemented. Effective policies and measures are essential as the framework and the means for meeting emission reduction targets.

It is well known that society wastes large amounts of energy in virtually all activities. In most cases, though, new technologies using a fraction of the energy of conventional equipment can provide an equal or better service, with a much lower environmental impact. Energy-saving lightbulbs are one of the best-known examples. Similarly, every country could be making far greater use of renewable energy. The main question for decision-makers is to decide which policies and measures applied in what way will prove most effective in cutting emissions.

A recent report for WWF assessed the combined effect on CO2 emissions in the European Union of implementing a variety of policies and measures which have already been shown to work in one or more country. The report, "Policies and Measures to Reduce CO2 Emissions by Efficiency and Renewables", concluded that:

  • use of proven policies and measures for promote energy efficiency and renewable energy sources, starting in 1998, could reduce EU CO2 emissions 14% below the 1990 level by 2005;

  • the largest CO2 reductions could be achieved in the residential sector, followed by heavy industry, the transport sector, by using renewable energy for power generation, and in the service sector;

  • two-thirds of the CO2 reductions would come from saving energy, which highlights the need for much more attention to be given to these measures across the entire economy;

  • the majority of the measures would be cost-effective. The exceptions were in accelerating the insulation of existing buildings and in introducing some forms of renewable energy;

  • there would still be plenty of energy-saving options to continue reducing emissions after 2005, when the contribution of renewable energy would also become increasingly significant.

The analysis split EU energy use into eight sectors. It considered the overall potential for reducing emissions in each sub-sector before quantifying the reductions that particular measures could deliver in the period to 2005. Reductions in each sector were then subtracted from the level of emissions which the European Commission projects for 2005, assuming no additional action is taken to curb emissions - their "Conventional Wisdom" scenario. The 14% reduction in CO2 emissions compares with a 7% increase projected under Conventional Wisdom (see figure**). The EU has made the modest proposal of reducing emissions of three greenhouse gases by 7.5% by 2005 and 15% by 2010.

Policies and measures in the major sectors:

Residential sector
The most important policies and measures would be:

  • a strong programme to progressively insulate existing homes in Europe based on financial incentives, building energy efficiency standards and public information programmes;

  • improving the efficiency of heating equipment through energy taxes, subsidies and other financial incentives, regulation and information programmes;

  • billing of energy costs on the basis of actual energy consumption;

  • strict building standards for new buildings;

  • reducing energy demand for hot

  • energy performance standards for domestic appliances such as refrigerators, washing machines and home computers and information and incentive schemes for upgrading lighting.

Heavy industry
The target of the policy in the report was to reach an average efficiency in sub-sectors of European heavy industry in 2005 equal to the best-existing plants of 1988. In view of the small number of firms operating, the primary measures envisaged were negotiated agreements at European level, extending the type of agreements common in the Netherlands and Denmark.

Transport
For passenger transport, an effective and realistic measure is to introduce fuel efficiency standards for cars. Improving efficiency at a rate of 4% per year would be well within what is technically and economically feasible. But this would need to be combined with encouraging a shift to public transport through measures such as planning which avoids car use, improving public transport infrastructure, discouraging car use in city centres, and road pricing. In the freight sector, fuel efficiency standards for trucks are important, along with shifting freight to a modernised rail infrastructure.

For full details, see the report "Policies and Measures to Reduce CO2 Emissions by Efficiency and Renewables"*, Department of Science, Technology and Society, Utrecht University, Netherlands. WWF Climate Change Campaign, 1996.