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Energy Savings

The Energy Question?

The European Commission in a major new green paper on the European Energy Policy proposes 6 key areas for review and action. In its fourth area, the commission suggests

“A series of measures to address the challenges of global warming. In particular, it puts forward possible contents for an Action Plan on energy efficiency to be adopted by the Commission later this year. This Action Plan will identify the measures necessary for the EU to save 20% of the energy that it would otherwise consume by 2020”.

Key EU energy challenges:

  • Our import dependency is rising. Unless we can make domestic energy more competitive, in the next 20 to 30 years around  70 % of the Union’s energy requirements, compared to 50% today, will be met by imported products – some from regions threatened by insecurity.
  • Reserves are concentrated in a few countries. Today, roughly half of the EU’s gas consumption comes from only three countries (Russia, Norway, and Algeria). On current trends, gas imports would increase to 80 % over the next 25 years.
  • Global demand for energy is increasing. World energy demand - and CO2 emissions – is expected to rise by some 60% by 2030. Global oil consumption has increased by 20% since 1994, and global oil demand is projected to grow by 1.6% per year.
  • Oil and gas prices are rising. They have nearly doubled in the EU over the past two years, with electricity prices following. With increasing global demand for fossil fuels, stretched supply chains and increasing dependence on imports, high prices for oil and gas are probably here to stay. This is difficult for consumers in the short term but may, however, trigger greater energy efficiency and innovation.
  • Our climate is getting warmer. According to the Intergovernmental Panel on Climate Change (IPCC), greenhouse gas emissions have already made the world 0.6° warmer. If no action is taken there will be an increase of between 1.4° and 5.8° by the end of the century. All regions in the world – including the EU - will face serious consequences for their economies and ecosystems.

The UK Government Energy White paper of 2003 states a key objective as being,

To put ourselves on a path to cut the UK’s carbon dioxide (CO2) emissions by some 60% by about 2050, with real progress by 2020.

Progress to date is shown in the following graph,

Carbon emissions by sector and the 2050 goal - Source: DTI

To ensure we take this target seriously the Government in 2000 introduced a fixed rate tax, the Climate Change Levy. This is now index linked to rise with inflation each year.

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