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State aid in the European Union is the name given to a subsidy or any other aid provided by a government that distorts competitions. Under European Union competition law the term has a legal meaning, being any measure that demonstrates any of the characteristics in Article 107 of Treaty on the Functioning of the European Union, in that if it distorts competition or the free market, it is classed by the European Union as being illegal state aid. Measures which fall within the definition of state aid are considered unlawful unless provided under an exemption or notified by the European Commission. In 2019, the EU member states provided state aid corresponding to 0.81% of the bloc's GDP.
Energy policy is the manner in which a given entity has decided to address issues of energy development including energy conversion, distribution and use as well as reduction of greenhouse gas emissions in order to contribute to climate change mitigation. The attributes of energy policy may include legislation, international treaties, incentives to investment, guidelines for energy conservation, taxation and other public policy techniques. Energy is a core component of modern economies. A functioning economy requires not only labor and capital but also energy, for manufacturing processes, transportation, communication, agriculture, and more. Energy planning is more detailed than energy policy.
Renewable energy plays an important and growing role in the energy system of the European Union. The Europe 2020 strategy included a target of reaching 20% of gross final energy consumption from renewable sources by 2020, and at least 32% by 2030. The EU27 reached 22% in 2020, up from 9.6% in 2004. These figures are based on energy use in all its forms across all three main sectors, the heating and cooling sector, the electricity sector, and the transport sector.
Although the European Union has legislated, set targets, and negotiated internationally in the area of energy policy for many years, and evolved out of the European Coal and Steel Community, the concept of introducing a mandatory common European Union energy policy was only approved at the meeting of the European Council on October 27, 2005 in London. Following this the first policy proposals, Energy for a Changing World, were published by the European Commission, on January 10, 2007. The most well known energy policy objectives in the EU are 20/20/20 objectives, binding for all EU Member States. The EU is planning to increase the share of renewable energy in its final energy use to 20%, reduce greenhouse gases by 20% and increase energy efficiency by 20%.
Renewable energy in Germany is mainly based on wind and biomass, plus solar and hydro. Germany had the world's largest photovoltaic installed capacity until 2014, and as of 2021 it has over 58 GW. It is also the world's third country by installed total wind power capacity, 64 GW in 2021 and second for offshore wind, with over 7 GW. Germany has been called "the world's first major renewable energy economy".
Renewable energy commercialization involves the deployment of three generations of renewable energy technologies dating back more than 100 years. First-generation technologies, which are already mature and economically competitive, include biomass, hydroelectricity, geothermal power and heat. Second-generation technologies are market-ready and are being deployed at the present time; they include solar heating, photovoltaics, wind power, solar thermal power stations, and modern forms of bioenergy. Third-generation technologies require continued R&D efforts in order to make large contributions on a global scale and include advanced biomass gasification, hot-dry-rock geothermal power, and ocean energy. As of 2012, renewable energy accounts for about half of new nameplate electrical capacity installed and costs are continuing to fall.
Efficient energy use, sometimes simply called energy efficiency, is the process of reducing the amount of energy required to provide products and services. For example, insulating a building allows it to use less heating and cooling energy to achieve and maintain a thermal comfort. Installing light-emitting diode bulbs, fluorescent lighting, or natural skylight windows reduces the amount of energy required to attain the same level of illumination compared to using traditional incandescent light bulbs. Improvements in energy efficiency are generally achieved by adopting a more efficient technology or production process or by application of commonly accepted methods to reduce energy losses.
A feed-in tariff is a policy mechanism designed to accelerate investment in renewable energy technologies by offering long-term contracts to renewable energy producers. This means promising renewable energy producers an above market price and providing price certainty and long-term contracts that help finance renewable energy investments. Typically, FITs award different prices to different sources of renewable energy in order to encourage development of one technology over another. For example, technologies such as wind power and solar PV are awarded a higher price per kWh than tidal power. FITs often include a "degression": a gradual decrease of the price or tariff in order to follow and encourage technological cost reductions.
Energy subsidies are measures that keep prices for customers below market levels, or for suppliers above market levels, or reduce costs for customers and suppliers. Energy subsidies may be direct cash transfers to suppliers, customers, or related bodies, as well as indirect support mechanisms, such as tax exemptions and rebates, price controls, trade restrictions, and limits on market access.
The Renewable Energy Sources Act or EEG is a series of German laws that originally provided a feed-in tariff (FIT) scheme to encourage the generation of renewable electricity. The EEG 2014 specified the transition to an auction system for most technologies which has been finished with the current version EEG 2017.
The LIFE programme is the European Union's funding instrument for the environment and climate action. The general objective of LIFE is to contribute to the implementation, updating and development of EU environmental and climate policy and legislation by co-financing projects with European added value. LIFE began in 1992 and to date there have been five phases of the programme. During this period, LIFE has co-financed some 4600 projects across the EU, with a total contribution of approximately 6.5 billion Euros to the protection of the environment and of climate. For the next phase of the programme (2021–2027) the European Commission proposed to raise the budget to 5.45 billion Euro.
Environmental issue in the European Union include the environmental issues identified by the European Union as well as its constituent states. The European Union has several federal bodies which create policy and practice across the constituent states.
The German National Renewable Energy Action Plan is the National Renewable Energy Action Plan (NREAP) for Germany. The plan was commissioned under EU Renewable Energy Directive 2009/28/EC which required member states of the European Union to notify the European Commission with a road map. The report describes how Germany plans to achieve its legally binding target of an 18% share of energy from renewable sources in gross final consumption of energy by 2020.
Climate change in Europe has resulted in an increase in temperature of 1.9 °C (2019) in Europe compared to pre-industrial levels. Europe's climate is getting warmer due to anthropogenic activity. According to international climate experts, global temperature rise should not exceed 2 °C to prevent the most dangerous consequences of climate change; without reduction in greenhouse gas emissions, this could happen before 2050. Climate change has implications for all regions of Europe, with the extent and nature of impacts varying across the continent.
The Energiewende is the ongoing transition by Germany to a low carbon, environmentally sound, reliable, and affordable energy supply. The new system intends to rely heavily on renewable energy, energy efficiency, and energy demand management.
The German National Action Plan on Energy Efficiency (NAPE) is the National Energy Efficiency Action Plan (NEEAP) for Germany. The plan was commissioned under EU Energy Efficiency Directive 2012/27/EU of the European Union and released on 3 December 2014. Under the plan, the German government offers an average increase of 2.1%/year in macroeconomic energy productivity from 2008 to 2020. The exact reduction in primary energy use is therefore dependent on the rate of economic growth. The NAPE is part of the Climate Action Programme 2020, also approved on 3 December 2014.
The German Climate Action Plan 2050 is a climate protection policy document approved by the German government on 14 November 2016. The plan outlines measures by which Germany can meet its various national greenhouse gas emissions reduction goals through to 2050 and service its international commitments under the 2016 Paris Climate Agreement. The Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety (BMUB), under minister Barbara Hendricks, led the development of the plan. The plan was progressively watered down since a draft was first leaked in early May 2016. Projections from the environment ministry in September 2016 indicate that Germany will likely miss its 2020 climate target.
Air pollution in Germany has significantly decreased over the past decade. Air pollution occurs when harmful substances are released into the Earth's atmosphere. These pollutants are released through human activity and natural sources. Germany took interest in reducing its greenhouse gas (GHG) emissions by switching to renewable energy sources. Renewable energy use rate from 6.3% in 2000 to 34% in 2016. Through the transition to renewable energy sources, some people believe Germany has become the climate change policy leader and renewable energy leader in the European Union (EU) and in the world with ambitious climate change programs, though Germany's CO
2 emissions per capita are in fact among the highest in Europe, almost twice those of e.g. France. The current goal of the German government was approved on 14 November 2016 in the German Climate Action Plan 2050, which outlines measures by which Germany can meet its greenhouse gas emissions by 2050. By 2050, Germany wants to reduce their GHGs by 80 to 95% and by 2030 they want to reduce it by 55%, compared to the EU target of 40%.
The European Green Deal, approved 2020, is a set of policy initiatives by the European Commission with the overarching aim of making the European Union (EU) climate neutral in 2050. An impact assessed plan will also be presented to increase the EU's greenhouse gas emission reductions target for 2030 to at least 50% and towards 55% compared with 1990 levels. The plan is to review each existing law on its climate merits, and also introduce new legislation on the circular economy, building renovation, biodiversity, farming and innovation.
The Energy Taxation Directive or ETD (2003/96/EC) is a European directive, which establishes the framework conditions of the European Union for the taxation of electricity, motor and aviation fuels and most heating fuels. The directive is part of European Union energy law; its core component is the setting of minimum tax rates for all Member States.
References
- ↑ "State Aid Overview". ec.europa.eu. Retrieved 2022-01-23.
- ↑ "CEEAG". 466. Archived from the original on 2022-01-20.
- ↑ "EU updates rules to pump more state aid into green projects". EUobserver . Archived from the original on 2021-12-22. Retrieved 2022-01-20.
- 1 2 "State aid: Commission endorses the new Guidelines on State aid for Climate, Environmental protection and Energy". European Commission Press corner. 21 December 2021. Archived from the original on 2021-12-21. Retrieved 2022-01-20.
- ↑ "State aid scoreboard".
- ↑ "State aid". ec.europa.eu. Retrieved 2022-01-23.
- 1 2 "Forms for notifications and reporting". ec.europa.eu. Retrieved 2022-01-20.
- ↑ "Introduction to state aid". Pinsent Masons . Archived from the original on 2019-09-25. Retrieved 2022-01-20.
- ↑ "State aid: ESA adopts revised climate, energy and environmental guidelines". EFTA surveillance authority. Retrieved 2022-10-10.
- ↑ "State Aid Decisions". European Commission . Archived from the original on 2017-10-13. Retrieved 2022-01-23.
- ↑ von Bonin, Andreas (14 June 2021). "State aid unchained – the EU Commission publishes its proposal for Guidelines on State aid for climate, environmental protection and energy (CEEAG)". Freshfields Bruckhaus Deringer . Archived from the original on 2022-01-20. Retrieved 2022-01-20.
- ↑ "Beihilferechtliches Genehmigungsverfahren zum EEG 2021" (PDF). Stiftung Umweltenergierecht . Archived (PDF) from the original on 2021-05-17.
- ↑ Klimaschutz, Bundesministerium für Wirtschaft und. "Stand der beihilferechtlichen Prüfung des EEG 2021 durch die EU-Kommission". www.bmwi.de (in German). Retrieved 2022-01-23.
- ↑ Klimaschutz, Bundesministerium für Wirtschaft und. "FAQ Stand der beihilferechtlichen Prüfung des EEG 2021 durch die EU- Kommission". www.bmwi.de (in German). Retrieved 2022-01-23.
- ↑ "State aid: Commission approves prolongation and modification of German scheme to support electricity production from renewable energy sources". European Commission . 29 April 2021. Archived from the original on 2021-04-29. Retrieved 2022-01-23.
