Futureproofing Europe's industry

Rome wasn’t built in one day, neither was the Energy Union. Yet, after five intense years of legislation, regulation, investment, coordination, partnership-building, and campaigning – we can now say that Europe does have both the legal framework and the infrastructure for a new energy and mobility system; one which is cleaner, smarter, more inclusive, and far more competitive. It’s not often politicians get to say they have fulfilled their manifesto. I am delighted to say that we have in the case of the Energy Union. 

Does that mean the work is done? No, it means it’s only just started.

But it’s on the right track!

Overhauling climate and energy system of an entire continent has never been attempted before. We set out an ambitious plan, calling for the deepest transformation of energy systems since the Second Industrial Revolution, ensuring that Europe’s industry was resilient and future-proof. This was about holistic change, not stop-gap initiatives. As a result, it required the work of multiple sectors and buy-in from stakeholders at all levels. This is not just about energy transformation but an economic and social transformation.

Tangible Successes

To give a few concrete examples, I can say categorically that Europe’s energy supply today is safer, more viable and more accessible to everyone than only a few years ago. The modernised energy system boosts the EU economy, attracts investments and creates local job opportunities.

Our internal electricity market is now mature, given that 26 countries (accounting for 90% of European electricity consumption or 80% of the EU population) have coupled their electricity day ahead markets. This ability to trade electricity across our borders has generated savings of some €1 billion per year. That is €1 billion we can do other great things with! When it comes to energy efficiency and decarbonisation we have not only made great strides towards our 2020 objectives but have been able to step up 2030 targets.

Beyond the strict energy field, I’m also very proud in how the Energy Union project helped bring energy transformation closer to citizens. I have spent a lot of time in the last years working with cities, for example through the EU Covenant of Mayors. The Covenant enables mayors of cities that want to advance towards cleaner energy, air, and mobility to make commitments and work together to transform policies and attract investment. Today, 8,800 European cities take part, home to almost every second European. This is a great reason for hope.

A lot done, more to do!

I wish I could say that the job is done. The programme we set out in 2015 has been completed, but it will take time to fully feel the results of the EU’s new energy and climate laws and the investments that we’ve made. Naturally, some challenges that we have confronted in the last 5 years will need further work, too.

Most immediately, the EU laws have to be implemented nationally. The EU is in good shape to achieve its goals for climate and energy for 2020, but there’s a need for a further push in some Member States on energy efficiency. The Commission has set up a task force with national authorities to help with that. Looking towards at the 2030 objectives, Member States’ National Energy and Climate Plans will have to reach the agreed targets. The EU28 have all completed their drafts and they are now being analysed. I look forward to working together with national authorities to finalise these plans and reap the maximum benefit of a coordinated, European approach. 

Secondly, the EU needs to continue to push for industrial leadership, and here the EU Battery Alliance provides an example of 21st Century industrial leadership. EU battery cell production is at 3% of global levels. If production isn’t supported then the EU will fall behind. I am convinced that being front-runners in the deployment of the next generation of batteries is key to the decarbonisation of our mobility and energy and the competitiveness of our automotive sector.

Thirdly, we have work to do to ensure a just transition. The Energy Union represents an energy, economic, and social transformation all across Europe. We know its overall benefits, but in certain regions the transition also brings disruption. This can fan the flames of negative political forces. The challenge is to make sure no Member State, no sector, no region, no community, no worker, no consumer is left behind. We have launched pilot schemes based on EU funds in 18 coal regions in the EU from 8 Member States to support an industrial-driven low-carbon transition, while mitigating its social consequences.

Lastly, we also need to look beyond 2030 and towards the objective of climate neutrality by 2050. The Commission proposed a vision of how to take Europe towards that objective in a beneficial way to our citizens and businesses. It’s now under debate across Europe, so that it can be endorsed in time for submission to the UN as the agreed European strategy - by 2020. The UN invitation to all countries to submit these strategies was part of the package that Europe brokered in Paris in 2015, and it’s very important we take it seriously to encourage other countries to do so as well. 

The way forward is clear

We started this process in 2014 with momentum to bring about the transition to a low-carbon, secure and competitive economy. After 5 intense years, I feel there is renewed momentum from stakeholders at all levels to continue this work into the future, to continue to transform our economies and increase green jobs.

No one can any longer argue that we have to choose between decarbonisation and economic growth. Between 1990 and 2017 the EU economy grew by 58% while emissions decreased by 22%. Green jobs in the EU already amount to 4 million. Nor do we need to choose between the clean energy transition and energy security. The choice that Europe did have to make was moving into the future or staying in the fossil age.

The Energy Union has put the EU in a position where green jobs, renewables and decentralised energy can be the backbone of our economy; and we can maintain our position as a global climate leader. This is an achievement we should be proud of.  

The Energy Union has shown the EU at its best!

It is a great example of the things Member States can achieve when acting collaboratively, tackling issues that could not be confronted alone. As Europeans we should remember and share this message in the coming 6 weeks. We go to the polls in May to elect our new Parliament, the people who will be representing us in tackling vitally important issues. I have spent the last 5 years understanding that energy is precious and should be used smartly. I am putting my energy into ensuring as many Europeans as possible express their civic right next month. And I hope they keep in mind the pride and inspiration that we can all take from the EU’s values and achievements.