Published on 02 July 2020
Overview
Our key asks are:
Setting higher EU targets is important to drive the transition, but to make investments happen robust measures and policies need to be implemented at Member States level:
- At least 55% GHG emission reduction target by 2030. Pursuing this target will avoid postponing the bulk of climate & energy efforts to the post-2030 period;
- This translates into a renewable energy target higher than the current 32% by 2030;
- The new target should be enshrined in the Renewable Energy Directive and Governance Regulation.
Setting higher EU targets is important to drive the transition, but to make investments happen robust measures and policies need to be implemented at Member States level:
- The National Energy and Climate Plans are 'investment brochures' that should spell out ambitious policies and provide long-term visibility to the renewable energy sector;
- Technology-specific auctions are crucial to provide certainty to investors and well-designed premiums are essential to reduce the cost of capital. Two-sided Contracts for Difference are the best model, paired with corporate renewable Power Purchase Agreements where applicable. The revision of the Energy & Environment State Aid Guidelines should fully support it;
- Short and simplified permitting for new and repowered wind and other renewable energy installations is crucial to unlock renewable energy investments;
- Renewable-based direct electrification is essential to decarbonisation. Direct electrification in most of industry, transport and buildings should come first. Indirect electrification via renewable hydrogen will have a key role to play in decarbonising hard-to-abate sectors;
