CINERGY CITIZENS FOR ENERGY
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CINERGY CITIZENS
FOR ENERGY
CINERGY CITIZENS
FOR ENERGY
Anamarija Jere
Written by Giulia Dakli
Salvatore Altiero
Simona Maltese
Contributions Ce.S.F.Or.
A Sud Ecologia e Cooperazione
Low Carbon Communities Network
Za Zemiata
Asociatia Prietenii Pamantului
DOOR
CIPRA Slovenia
London Borough of Haringey
Front cover
Grega Žorž
and layout
The contents of this report may be reproduced in whole or in part for educational or non-profit services without special
permission from the authors, provided acknowledgement of the source is made.
This publication was developed as a part of the project CINERGY – Citizens for Energy (LLP Gruntvig).
This project has been funded with support from the European Commission.
This publication reflects the views only of the authors, and the Commission cannot be held responsible for any use which
may be made of the information contained therein.
The views expressed in this report are not necessarily reflective of Haringey Council
June, 2014
Visit our project database at www.cinergyproject.eu More info at: cinergy.eu@gmail.com
Index
About the cinergy project 1
1. Eu legislation, directives and tools towards a post-carbon europe 5
1.1. “Energy conflicts”: new challenges for energy policies, beyond the protection of the environment
and the struggle against climate change 5
1.2 From conflicts over the hoarding of resources to environmental conflicts: energy policies and climate
change 7
1.3 First conclusions: geopolitics versus the biosphere 9
1.4 The enhancement of the critical aspects of the ets in times of financial crisis 11
1.5 European strategy on renewable energy from its birth 13
1.6. The europe 2020 strategy: the importance of energy choices towards an inclusive europe 15
1.7. Roadmap 2050 16
1.8. Conclusions and insights: a critical look 18
2. Citizens’ engament in energy management: communication and participation strategies 19
2.1. Energy policy-making process: what challenges for citizen engagement? 19
2.2. Eu’s communication and participation strategy: almost there but still not enough 24
2.3 National energy policy: civil society organizations call out government’s plans and private monopoly 27
2.4. Requirements and proposals for a democratic energy management 31
2.5. Conclusions 33
3. Good practices towards a post-carbon europe 34
3.1 Bulgaria 34
3.2 Italy 36
3.3 Romania 39
3.4. Slovenia 41
3.5 Croatia 43
3.6 United kingdom 45
4. Cinergy’s recommendation to the european commission 49
4.1. The role of the european commission towards a post-carbon europe 49
4.2. Structure and aims of cinergy strategic recommendations 49
4.3. Recommendations to the EC 50
CINERGY – CITIZENS FOR ENERGY
ABOUT THE CINERGY PROJECT
All over Europe more and more people and communities are engaging in post carbon actions and working
to develop sustainable energy systems. Communities and local authorities are working together to develop
participative methodologies that can engage all stakeholders in local post carbon actions, contributing to the
creation of energy communities throughout Europe.
CINERGY is working to build knowledge, skills and post carbon actions.
and shared experiences of post carbon citizenship in • Development of recommendations to local and
Europe. CINERGY does this through joint working and European Institutions regarding the promotion of civil
events linking professionals and active citizens involved society and stakeholders in local energy management
in community energy and post carbon processes and and post carbon actions.
activities. • A final transnational conference in Rome.
At the centre of the project are energy communities As mobilities are one of the main goals of the Gruntdvig
and their important role in promoting and developing Programme, a brief summary of our meetings follows.
sustainable energy systems.
Meeting in Zagreb (Croatia) in December 2012 was
CINERGY is a partnership, composed of a local authority, a Kick-off meeting where we talked about project
civil society and adult education organisations, which activities and project management and made a division
are building a participative process based on sharing of tasks.
and discussing experience, knowledge and competences
gained and enhanced during the project. Meetings Following workshops followed similar structure – each
between participants and local cooperation with other workshop consisted of:
stakeholders allows for the exchange of complementary • presentation of partners’ focus groups (a focus group
information through a mutual learning process in which was organised by each partner in their own country
all participants are both learners and teachers. before each workshop to discuss given topics with
different national stakeholders.)
The project is mainly focused on civil society • discussion of key problems and possible solutions
experiences in post carbon action. In-depth research on • field trip on selected good practice examples regarding
EU laws, actions and tools for a post carbon society and energy
energy democracy was conducted in order to provide
a theoretical framework to the exchange of good April 2013: 1st Transnational Workshop in Bucharest
practices. The project uses different participation and (Romania). Topic was “EU Laws, Actions and Tools
communication methodologies and techniques aimed towards Post-Carbon Society and Energy and
at enhancing knowledge and experiences. Democracy of the Commons”. Discussions were focused
on the democratization of energy. The public event
PROJECT OUTCOMES “Romanian stakeholders’ panel” gave the participants
the opportunity to meet representatives from several
• Joint international events: 6 transnational meetings and stakeholders and NGOs working on climate and energy
4 transnational workshops on knowledge, experiences issues. Chapter 1 of this e-book is the result of the works
and methodologies related to local energy management of this 1st Transnational Workshop.
and post carbon actions.
• 4 local focus groups organized by each partner in the July 2013: 2nd Transnational Workshop in Varna
6 project countries to share the project experience at (Bulgaria) on “Civil society experiences in post
the local level and to enhance informal and non-formal carbon action”. Partners’ presented good practices of
learning and participation in post carbon activities. community energy in their countries and visited 3 local
• Digital database built to map good practices for energy experiences: Varna Technical University's solar power
1
CINERGY – CITIZENS FOR ENERGY
labs; an energy efficient house (“How to transform a
typical townhouse into low-energy housing”) and an
electric car retrofitting facility. Chapter 3 is a collection
of all good practices presented during this Workshop.
CE.S.F.OR. (Centro Studi Formazione Orientamento)
October 2013: 3rd Transnational Workshop in London is a non profit organization that works in the fields
(United Kingdom) on “Methodologies of participation of Education, Training, Guidance, Counselling and
and communication”. The Workshop included a Mobility for young people and adult citizens. The
presentation on ‘Lobbying the EU’ by Danny Bates (of Centre has a Quality Assurance ISO9001:2008. Cesfor
representative Jean Lambert Green MEP for London) works for citizens’ social inclusion and the development
and a presentation from local project Manor House and learning of the organizations through innovative
PACK. The group visited the Living Under One Sun methodologies, training activities, counselling and
allotment; Hale Village apartments (featuring CHP research.
boiler, roof allotments, water recycling, building www.cesfor.net
insulation, energy standards and green roof) and a
community owned solar array, installed on the roof of
Marks & Spenser, Muswell Hill and met representatives
of local community energy company En10ergy. Chapter
2 contains all topics discussed during the Workshop in A Sud is an independent Italian association founded
UK. in 2003, dedicated to developing cooperation between
northern and southern countries, environmental
February 2014: 4th Transnational Workshop in and intercultural education in schools, universities,
Ljubljana (Slovenia) on “Valorisation of knowledge communities and companies; research on issues of
and experiences shared during the CINERGY project: environmental conflicts, the ecological reconversion
development of recommendations to the European of energy and productive sectors; the promotion of
Commission towards a post-carbon Europe”. The group national and International campaigns for environmental
visited Thermal Spa Snovik, a good practice example on and social justice; collaborative and sustainable projects
energy efficiency in tourism (for the realization of the with a European wide network of academics and CSOs;
excursion only public transport was used, to underline communication and publications on participatory
the importance of saving energy in transport). The final democracy, community and ecological economics.
part of this e-book – Chapter 4 – contains CINERGY’s www.asud.net
recommendations to the EU institutions.
The UK Low Carbon Communities Network (LCCN)
is a UK NGO that since 2008 has built up a unique
PARTNERSHIP open network of some 800 organisations working on
low carbon practice and policy. These include voluntary
An international partnership is one of the main groups, community social enterprises, NGOs,
advantages offered by the Gruntdvig Programme. non-statutory ‘parish councils’ and similar bodies.
CINERGY has a partnership composed by 8 partners LCCN’s role is to work alongside and communities
from 6 different countries from all Europe (Italy, United and organisations in the UK and across the world to
Kingdom, Croatia, Slovenia, Bulgaria, Romania). This encourage the adoption of low carbon and zero carbon
diversity represents a challenge, as each country is policies, technologies and lifestyles through local action,
living different situations and, therefore, expectations, to enable groups engaged in this action to be as effective
experiences and competencies are necessarily diversified, and efficient as possible and to enable those active at a
but dialogue and participation methodologies local level to positively influence UK national and local
contributed to strengthen the partnership throughout government policy and practice. Members work on
the project. awareness raising, community energy production and
2
CINERGY – CITIZENS FOR ENERGY
related issues. community development, local participative democracy,
http://lowcarboncommunities.org energy and environment fields. Prietenii Pamantului
has good practicing in the field of sustainable energy
but also in public participation, in supporting newly
registered NGOs, partnership between NGOs and has
history in the field of critical analysis of the projects, and
Za Zemiata (For the Earth) is a Bulgarian environmental in participating together with professional bodies and
NGO, registered in 1995 and determined to work for public authorities in making environmental policies,
sustainable life on our planet and combat exploitation of strategies and action plans impacting the environment
people and nature. Za Zemiata strives for an outward- as it results from a long record of more than 60 successful
oriented policy and activities are carried out in co- local, national and international projects implemented
operation with volunteers and other Bulgarian NGOs. in the fields of education, campaigning, demonstration.
Za Zemiata is the representative organisation of the www.comunitativerzi.ro
INFORSE Europe, CAN Europe and of the International
Energy Brigades, and a member of GAIA, Central - and
Eastern European Bankwatch network and SEEEN
(South Eastern Europe Environmental NGO) networks.
www.zazemiata.org
CIPRA Slovenia is a non-governmental and non-profit
organization, which works on sustainable development
in the Alps. We strive for nature and heritage protection
and encourage the alpine region to become a low
DOOR's mission is education and promotion of carbon society. We are also working on implementation
sustainable development options, primarily related to of Alpine convention, which covers variety of fields:
energy issues. It has extensive experience and expertise inhabitants and culture, mobility and spatial planning,
in renewable energy sources and energy efficiency tourism, nature protection, agriculture and forestry,
measures - the two key pillars of the sustainable energy. energy and climate change. Our work is also influencing
DOOR regularly organizes awareness rising and on local, regional and national policies.
educational events with multisectoral participation and www.cipra.org/sl
it promotes dialogue among interested stakeholders of
different backgrounds. DOOR's usual target groups are
local authorities' representatives, environmental and
consumer protection NGOs, trade unions and teachers.
It has more than 50 active members and a network of
interested volunteers. Within this project, DOOR will The London Borough of Haringey has committed
mobilise its members, volunteers as well as members to reduce borough wide carbon emissions by 40% by
of all the target groups who will collaborate closely and 2020 and by 2015 for its own estate and operations.
develop new approaches and strategies of transition Since this time the borough has carried out a number
into the post-carbon society. of pilot projects to test approaches to reducing carbon
www.door.hr/wordpress emissions, such as the Muswell Hill Low Carbon Zone
and Low Carbon Communities Challenge. In 2011, the
Council launched a borough wide initiative Haringey
40:20 (www.haringey4020.org.uk) and membership
organisation, working with local voluntary groups
to drive forward action on climate change across the
Prietenii Pamantului (Earth Friends) is a Romanian borough. The borough has also launched a Carbon
environmental NGO registered in 1991, aiming Commission; an independent expert group to advise
to promote sustainability through education and Haringey 40:20 on how to achieve its ambitious target.
public participation. The main activities are focused www.haringey.gov.uk
on education for sustainability with expertise on
3CINERGY – CITIZENS FOR ENERGY
THIS PUBLICATION
This e-book is the result of the joint work of CINERGY’s partnership. Thanks to the different participatory
techniques used throughout the project’s life (December 2012 – June 2014), over 200 people – active citizens,
administrators, researchers, students – engaged in a debate on energy democracy and energy communities.
116 women
110 men
4CINERGY – CITIZENS FOR ENERGY
~ CHAPTER 1 ~
E U L E G I S L AT I O N , D I R E C T I V E S A N D
TOOLS TOWARDS A POST-CARBON EUROPE
1.1. “Energy conflicts”: New challenges for energy policies, beyond the
protection of the environment and the struggle against climate change
For a long time the essential links between energy policy independence from the USSR.
and environmental protection have not been taken The standard of the population’s living conditions is
into account, but these policies need to be structured extremely poor: at least one third of Georgians live below
within a framework that can facilitate the definition of the poverty line. The Anglo-American construction of
strategies that go beyond national boundaries, up to a the Baku-Tbilisi-Ceyhan pipeline, aimed at bringing
global level, whilst combining the themes of energy and Caspian oil to Western markets, has started to represent
environment, thus providing an integrated response to a hope for the recovery of Georgian economy, but at the
these issues. same time it has complicated economic and political
The global challenge to tackle climate change is related relations with Moscow, as Georgia is now in direct
to energy issues on two grounds: energy production competition with the traditional Russian hegemony on
and sources that reduce greenhouse gas emissions along the management of oil resources in the Caspian Sea.
with a more rational use of energy.
The connection between environment and energy Natural gas would be then taken from the Caspian Sea
is increasingly evident during times of growing and distributed with the Nabucco and White Stream gas
concern regarding the social and economic impact of pipelines1 .
global warming, and it exacerbates due to the current
international tensions linked to the availability of Depending on whether the Caspian Sea is legally
energy resources. considered a water basin, an inland lake or a sea,
Europe has adopted the combination “energy- different gas exploitation prospects arise, favouring
environment” in its policies through regulations that this or that State. If the Caspian Sea is declared to be
encourage the abandonment of coal as a primary a sea, then its water would be divided according to the
energy source; however, aside from environmental provisions of the 1982 Montego Bay Convention on
criticism, these policies have shown a growing number the Law of the Sea, and every country would have its’
of limitations. own Exclusive Economic Zone, which could permit an
exclusive exploitation of resources.
From this point of view it is easy to interpret energy If it was declared a lake, the profits derived from the
policies as “peace policies.” The Ukrainian crisis of 2014, high presence of hydrocarbons would be divided
shortly after the 2008 crisis in Georgia, demonstrates equally between the coastal States. The difficulty in
that it is essential to drastically reduce the use of fossil finding an agreement lies in the uneven distribution
energy sources, focusing on an energy model aimed at of hydrocarbon reservoirs, most of which, in fact, are
reducing the geographical distance between production
1 The issue of the legal status of the Caspian Sea is rooted in
and consumption, thus fostering the development of time. There are two agreements that govern the exploitation of
renewable energy. The recent Ukrainian crisis reveals the resources of the Caspian, one dating back to 1921, signed by
that a change in policies is of great importance, not only the USSR and Persia, and the other in 1940, between the USSR
from an environmental perspective. and Iran. These agreements stipulated that the exploitation of the
As for Georgia, the recent civil wars, widespread Caspian should be shared between the two countries. Of course,
at that time it was not possible to imagine the emergence of new
corruption and the scarcity of energy resources independent states that would have had ambitions of exploitation
has impeded Georgia’s economic recovery after its of this inland sea.
5CINERGY – CITIZENS FOR ENERGY
concentrated in the jurisdiction within the Caucasian The solution of the legal status of the Caspian Sea also
republics, particularly in Kazakhstan, which, together involves those States whose coasts are not washed by
with Azerbaijan, pushes for the definition of the its waters. It is evident that these tensions are due to
Caspian as a sea, in order to freely exploit its resources; a great hunger for fossil energy resources. Therefore,
this would then disadvantage Iran, which, would in this the overcoming of fossil fuels would not only have a
case, be entitled to exploit only 13% of the resources of beneficial effect on the environment, but it is a goal to
the basin. Russia seeks to assert its sovereignty over the be pursued for the sake of peace in Europe.
waters of the Caspian, trying to draw Azerbaijan and
Turkmenistan into its sphere of influence, removing It is necessary to overcome the use of fossil fuels and
them from the incorporative attempts of the European to move towards an energy policy that is not only an
Union and its energy projects aimed at gaining energy alternative to nuclear power but also aimed at protecting
independence from Russia. global climate through the development of renewable
The exploitation of the Caspian resources does not sources and improvements in energy saving and energy
involve only the coastal States. It is intertwined with efficiency. This would have a significant impact not
the problem of energy supplies from Russia and the only in terms of the reduction of environmental and
European Union. The EU is increasingly determined climatic change factors, but also to strive towards a
to become independent from Moscow for the European Union based on peace between peoples,
transportation of gas and to differentiate its energy conviviality, new lifestyles and consumption patterns,
policy; giving impetus to various projects including, thus representing an alternative solution to the multiple
1: the Nabucco pipeline, which is expected to go from crises (financial, productive, socio-political, ecological
Turkey to Austria via Bulgaria, Romania and Hungary, and climate) which are affecting its Member States.
and 2: the White Stream, which would transport gas The desired direction is that of a “sustainable” energy
from the Caspian Sea to Eastern Europe (Poland, model based on renewable energy sources, energy
Romania, Ukraine) starting from Tbilisi in Georgia and efficiency and distributed production, which would
heading to Supsa via the Black Sea, in direct competition contribute to, and strengthen, those stakeholders in
with the Russian South Stream. civil society who can contribute to implement a more
effective change in energy policies.
The possibility of finding an alternative to Russian supply
has prompted countries such as Romania, Georgia and Returning to the Ukrainian crisis, it is undeniable that
Ukraine to reach agreements with the States bordering peace and democracy in Europe is endangered by the
the Caspian Sea. In April 2010, a Memorandum of scarcity of non-renewable energy resources on which
Understanding was signed by Azerbaijan, Georgia and our energy model is still based on. In the case of Ukraine,
Romania for the transportation of natural gas in the a large part of the problem could have been avoided
Black Sea, that eventually led to the creation of AGRI with the establishment of a common European energy
(Azerbaijan - Georgia - Romania Interconnector) with policy designed to validate resources and specificities
the task of evaluating various aspects of the project to of each country, geared towards a greater efficiency and
then arrive at a conclusion that could link the Caspian towards a strong reduction of environmental impacts,
Sea directly to Central Europe without passing through aimed at abandoning the dependence from nuclear
Russian territory. Turkmenistan now seems to be geared energy and fossil fuels by focusing on the rational
towards supporting the construction of Nabucco, even use of all renewable sources, according to the specific
offering itself as a supplier of gas and oil and proposing characteristics of each region.
the creation of a trans-Caspian gas pipeline that would
be directly connected with Nabucco.
6CINERGY – CITIZENS FOR ENERGY
1.2. From conflicts over the hoarding of resources to environmental
conflicts: energy policies and climate change.
The race to hoard energy resources along with the increase has thus doubled, rising from 1% in 2000 to
collective environmental impacts of energy production/ 2.2% in the last decade, with the emissions of the upper-
consumption are concerns that could lead to conflict. middle-income countries having almost doubled,
It is necessary to remember that energy policies have taking up the majority of the richest countries’ quota,
a twofold role: on the one hand they can facilitate the which has over the years maintained a steady but much
reduction of environmental impacts of the energy more gradual increase1 .
production system, and on the other, they can prevent
the emergence of new social and economic unrest. The report argues for the need to respect a strict schedule
It is clear that climate change does not only lead to as part of the fight against global warming and proposes
dangerous consequences for the environment but it can a two-steps strategy.
also results in devastating social impacts: eg. the effects
of the advancing desertification or of the scarcity of Step 1 is for the year 2100: for that year the international
water in agricultural areas on local economies. community has set a goal of limiting the increase in
Earth’s average temperature (14°C) to a maximum of
The recent 5th IPCC Report on Climate Change +2°C, a figure linked to the pre-industrial era, and a
includes a prediction of the devastation that climate threshold that scientists recognize as the only way to
change will produce in Europe if it is not stopped. The avoid irreparable damage to our survival on the planet.
1700 IPCC scientists, who have been researching global Step 2 is for the year 2030: as reiterated by many
warming since 1988 for the UN, reported that we will global conferences on climate (from Copenhagen’s
have to live with storms, floods, and in an atmosphere COP15 to Doha’s COP18), the interventions must be
contaminated by poisonous gases and dusts. The very timed, because it is likely that by 2030 the emissions of
geography of Europe would be completely redesigned greenhouse gases, particularly CO2, will supersede the
if temperatures continue to raise: Alpine glaciers will 2100 goal. This step is the most important, on which all
definitely melt down, deserts will advance, the sea countries should steer the majority of their efforts.
would swallow coastal cities and thousands of animals
and plants would become extinct. Aside from measures regarding transportation, housing,
industries, urban settlements and citizens’ consumption,
To understand the impending social drama it is enough in order to reduce GHG emissions, interventions related
to say that the report predicts millions of environmental to energy production and consumption are absolutely
refugees due to lack of water. necessary. From this point of view, the abandonment
According to the 5th IPCC report, greenhouse gas of the “business-as-usual” practice in the energy field
emissions have risen steeply between 2000 and 2010, entails a major change in the direction of investments,
more so that in each of the previous 3 decades, and it as the reduction of GHG emissions will cost more
is for this reason, according to the researchers, that the every year; in fact, despite the policies put in place so
practice of “business as usual” can in no way lead to the far, the IPCC Report states that if the policies remain
reduction or arrest of the Earth’s rising temperature. unchanged the costs to reduce GHG emissions will
In particular, the Report highlights the fact that more increase from 1.6% to 3% every year.
instruments and tools are needed to reduce the amount After analysing the 1,200 scenarios proposed in the
of emissions, or the environmental and economic costs scientific literature, the third part of the IPCC Report
of our production model will increase. These costs will outlines a hypothetical framework of the direction cash
become unsustainable for weaker economies, strangled flows should take, on a global scale, between 2010 and
by the inability to intervene economically. 2029, to effectively reduce emissions and achieve the
The same Report states that “within the next 5-10 years, impending milestone for 2030. Based on this analysis,
many more conflicts will emerge due to water and food the annual investment for the production of electricity
issues as a result of climate change”, and that, between 1 In 1990 countries such as China, India, Brazil and South Africa
2000 and 2010, emission rates have gone from 40 to 50 did not reach 10 giga-tonnes of GHG emissions, but between 2000
giga-tonnes of greenhouse gases per year. The annual and 2010 they reached an average of 18 giga-tonnes of emissions.
7CINERGY – CITIZENS FOR ENERGY
from fossil fuels is expected to decline by about $30 (March 2014) to postpone conclusions on the new
billion (-20% compared to 2010). Instead, the resources Directive on climate is alarming; it is hard to understand
invested in renewable sources should increase by about the reason of this delay. The only real solution should be
$147 billion (+100% compared to 2010). These estimated based on zero tolerance of fossil fuel usage, a creation
figures were calculated on the current investment in the of a new energy model based 100% on renewable
global energy system, this equates to about 1.2 trillion energy, the replacement of the old centralized model of
dollars a year. The current business structure needs to production and distribution of energy, the installation
be changed and the scale of investment proposed could of advanced solar and wind energy technologies… all
ultimately be more cost-effective over a long period of this cannot be achieved without the active participation
time. of citizens in all decisions concerning the management
From this perspective, the European Council’s decision of their territory.
Shale gas exploring and exploitation in Romania
May 2/2012: Once nominated, the government Ponta presented for the public a Governance Program in which
one of objectives stated: Immediate setting-up of a moratorium regarding shale gas exploitation until the end of
researches on environmental impact of hydraulic fracking".
June 22/2012: Victor Ponta declared that Romania will analyse in December its position regarding the
exploitation of Shale Gas.“We don’t want to be the alone accepting neither opposing the use of shale gas” said
Ponta for APP.
July 5/2012: Prime Minister Ponta announced that he will hire Wesley Clark – American general in retreat,
as adviser in the field of strategy and security. Clark is member in the Director Council of BNK Petroleum, an
oil company. The company, in that Clark is member of steering committee operates in the field of shale gas in
Poland.
December 20/2012: The new Governance Program adopted by Ponta government includes restarting of actions
of exploring to identify the gas fields as one of the priorities of the energy sector.
January 5/2013: The prime minister Ponta announces that “the idea of shale gas must be considered with
positive seriousity”.
8CINERGY – CITIZENS FOR ENERGY
1.3. First conclusions: Geopolitics versus the biosphere
Seemingly this issue is the crux of the conflict between a moratorium on shale gas was introduced in 2012, just
fossil and renewable energy sources, with both the prior to the South Stream gas pipeline negotiations with
economy and politics attempting to remove the issue Russia (that is trying to convince Romania to join the
of resource exhaustion and climate change from the pipeline project). Bulgaria reaffirmed the moratorium
debate. The underestimation of the ecological debt in 2014, banning shale gas exploration. In the Czech
and an ideology that justifies social inequality within Republic, the moratorium will remain in force until
the accounts of the current monetary debt reinforce the pipeline connected to the North Stream pipeline is
a centralized energy model: based on the combustion completed. The North Stream pipeline will travel under
of fossil reserves; on the requisition of huge reservoirs the Baltic Sea (from Russia to Germany).
of water masses, etc. In contrast, the benefit of citizens
and peoples, the availability of technologies that use Similarly, Poland, whose shale gas reserves – amongst
alternative sources efficiently, the spread of a scientific the most significant in Europe – are estimated at
culture that exceeds mechanization and reductionism, about two trillion cubic meters [346 to 768 of which
as well as the establishment of a conscious organization could be extracted] could be interested in exploiting
of territorial democracy, can all bring to fruition an this potential to gain independence from Russian gas
‘energy revolution’, which considers public access to supplies. In this case, however, Poland’s decision is still
decentralized and cooperative local renewable sources uncertain – the energy conversion strategy from coal
more important than profit. Alongside these two to gas, recommended by the EU, could then based on a
ideologies the conflict between the governance of the technique that impacts on the environment.
energy market – meant to be a product owned by a
combination of states, multinational corporations, At present, France, Bulgaria, Romania and the Czech
military facilities - and the right to energy as a common Republic have suspended the exploitation of their
good, continues. deposits due to environmental concerns. The Romanian
government of Victor Ponta has declared itself in
If the decentralized and cooperative systems were to favour of freezing the exploration of shale gas. The new
prevail, the organisation of mobility and transportation Romanian economic programme states, “a moratorium
should be reconsidered, agricultural models and a on the exploitation of shale gas will be introduced
power supply systems which are disconnected from the as soon as possible, pending the completion of the
natural cycles would lose their appeal and convenience, European research on the effects of hydraulic fracturing
furthermore the life cycle of non reusable or recyclable on the environment.” These positions are opposed
goods/materials would necessarily be redesigned. by the U.S. multinational Chevron, which owns 4 gas
In the face of a potentially enormous breakthrough, exploration concessions in Romania. Chevron had also
it appears instead that governments and international received a request asking to probe some deposits of shale
institutions have chosen to favour the advancement of gas in Bulgaria, which would compromise the project
new technologies for the extraction of gas (shale gas) and approval of a resolution to “permanently” prohibit the
nuclear power. Nevertheless, these chosen solutions are drilling and exploitation of oil and gas extracted from
unsustainable and will have severe impacts on: national shale fracturing. France was the first country in the
health, environment, democratic control. world - immediately followed by Bulgaria – to prohibit
To understand the turning point that could be the use of this technique.
represented by the extraction and sale of shale gas in In Italy, a wide area of fields in the Po Valley can be
Europe, it is beneficial to reflect, once again, on the role evidently seen to be sloping, in regions such as Emilia-
played in the Ukrainian crisis by the potential extraction Romagna, Veneto, Lombardia, Trentino-Alto Adige
of shale gas in the country’s territory, that could put the and Friuli-Venezia Giulia; finally, in a climate of almost
EU in direct competition with Russia’s export of natural total disinterest, on the 18th of September 2013, the
gas. Environmental Commission of the Italian Parliament
passed a resolution “that immediately excludes any
In fact, in some EU countries, the prohibition of activity related to fracking, that is, the extraction of oil
extracting shale gas could favour Gazprom. In Bulgaria through hydraulic fracturing of underground”.
9CINERGY – CITIZENS FOR ENERGY
In October 2013, the European Parliament has As regards, however, the strengthening of investments
approved the draft of the new Directive which in nuclear power (this is escaping the attention of many
could introduce mandatory Environmental Impact observers), the inverse relationship between nuclear
Assessments on activities related to the exploration and disarmament and proliferation of civilian nuclear power
extraction and which should come into force by 2016. needs to be observed.
Strasbourg has also introduced the requirement of
absolute independence of the client from the competent The investment in nuclear energy has in fact proven
authority and eliminated the possibility for Member to be tempting and continues to inspire the industrial
States to grant derogations to special projects (the only policies of the world powers. The global nuclear power
exceptions are those projects which are motivated by industry is steadily advancing, with 70 reactors under
reasons of public safety). construction around the world and another 160 or more
These are positions that cannot be ignored by the scheduled during the next 10 years. Most of the increase
European Commission and that observe that it is in planned capacity (over 80 %) will be concentrated in
essential to tackle the energy problem not from a countries that already use nuclear power and possess
perspective of rivalry between Russia and Europe but nuclear arsenals. So, while popular sentiment focuses
applying the “precautionary principle” with respect to on renewable energy, nuclear power and shale gas
environmental damage related to the extraction of shale technologies seem likely to be available soon on a large
gas. scale as they are compatible with the current centralized
system of energy production1 .
1
China is embarking on a huge increase in nuclear capacity to 58 GWe by 2020, while India's goal is to add to those already in operation
from 20 to 30 new reactors by 2030.
At the commercial level, finally, three major alliances between Western and Japanese are getting stronger: Areva, a French company,
with Mitsubishi Heavy Industries, Japan; General Electric of the U.S. with Hitachi, Japan; Westinghouse of the U.S., but controlled by
77 percent by Toshiba, Japan. Many of China's reactors use technology from Canada, Russia, France and the United States, while China
assists countries such as Pakistan in the development of their nuclear programs. Russia is active in the construction and financing of new
nuclear power plants in several countries. South Korea is building a nuclear power project worth 20 billion dollars in the United Arab
Emirates.
10CINERGY – CITIZENS FOR ENERGY
1.4. The enhancement of the critical aspects of the ETS in times of
financial crisis
As it stands, the main instrument of European policies pollution enters their cost function and in time
designed to reduce emissions is not exempt from the companies will be encouraged to reduce their
criticism either. pollution levels by becoming more energy efficient.
The ETS is now fulfilling this function. The European
The Emission Trading Scheme (ETS) is the first and, Commission allocates emission quotas to each country
so far, the greatest example of a regulated market of that distributes them to each company. In a way, this
CO2 emissions; now in force for 9 years, it does not avoids the penalization of companies that are exposed
yet work for the purpose for which it was created. The to international competition from other companies that
carbon market has represented a great hope for all operate in countries where there is no such system. A
environmental economists of the late 20th century, and steel mill in competition with Chinese steel mills will
the ETS, set up in 2005 by the European Commission, receive more shares, while a national energy company
was meant to respond to this hope. The production of will receive less, as the target market and competitors
CO2 is a negative externality of economic action which are restricted to Europe and therefore subject to the
impacts on the welfare of other subjects, thus generating same regulations.
a social cost; if companies are not required to pay this
cost, they have then no reason to take this cost into Aside from other critical aspects, at the time that the
account when they determine their levels and patterns system was introduced, the EU could not predict the
of production, ending up producing more pollution effect it would have on the outbreak of one of the most
than it is socially sustainable. serious crises of capitalism and it is no coincidence
that in the IPCC Report certified that, even if only by
One of the solutions adopted to solve the problem is a small percentage, the observed reduction of annual
the regulation of the production of pollution: States set GHG emissions is partly due to the economic crisis. The
caps on emissions and ensures that they are followed productive contraction and the consequent lowering
and respected. However, as monitoring the caps is a of industrial energy consumption from 156 thousand
difficult task, it was considered necessary to entrust the GWh in 2007 to 130 thousand GWh in 2012 (a level
market with the generation of economic impulses that unseen since 1995) has meant that the share of CO2
tend to make the abatement of emissions cost-effective emissions set by the European Commission (which
and convenient. have since remained unchanged) exceed the total
If it is true that pollution is a “public bad”, like the case emissions produced by European industry, generating
for public goods, then the market is failing to determine a substantial surplus of allowances, which is valued
the social optimum, i.e. a sustainable level of production poorly by the law of supply and demand.
for the welfare of the community – a level that meets the This on the one hand encourages the hoarding of a sort
environmental and social needs without putting a strain of “future pollution law” in the sense that the lowering
on those who produce polluting goods. of the cost of emission allowances favours companies
that deal with the “regulatory risk” or the fear that
This leads to the idea of creating an artificial market, the Commission will put in place a more restrictive
where a Regulator establishes the total amount of the regulation to give value to the shares in circulation.
offer (i.e., the total amount of tons of CO2 that the On the other hand, although there is a variable market
economic system can produce), obliging companies price driven by constant offers of purchase and sale,
to ask for emission quotes depending on their levels present on the Stock Exchange of CO2 and other
of pollution (this system is technically called “cap and macroeconomic factors, the value amounted in recent
trade”). years to about EUR 5 per tonne of CO2 emitted. Whilst
In a nutshell, by assigning each company a share of it is believed its price should be at least EUR 20 per
“emission rights”, those companies that pollute in tonne, in order to have a real impact on CO2 emissions.
a greater measure are likely to buy emission rights
from those companies that pollute less. At that point, One solution would be to reduce the circulating quotas,
11CINERGY – CITIZENS FOR ENERGY
but this would increase the cost of production by In a nutshell, one can say that the emission trading
reducing the competitiveness against companies that system functions through the transformation of the
operate outside the ETS. In a time of crisis like the one benefits to the environment achieved through the
that is currently disrupting the European economy, it is reduction of CO2 emissions in pieces of paper traded on
highly unlikely that this solution would be implemented. the global market and to be collected in another point
In fact, there is talk about pushing back this solution on the planet, maybe also in areas characterized by an
to 2021, thanks to the efficient work of the industrial increase of the industrial production. This mechanism
lobby in Brussels. In the meantime, the Commission can be defined as a “virtualization of pollution.”
has sought a short-term solution to increase prices
by reducing supply through the provision of permits/ EU action on energy issues has a complex genesis.
credits during the period 2014-16 (back loading), a Energy was not included at first in the agreements of
mechanism that led to the reduction in the supply the Treaty of Rome that gave birth to the European
of around 40%. It is uncertain what decision will be Economic Community in 1957, as it was for agriculture
chosen post-2016, credits may eventually reappear and for particular technologies such as coal, steel, and,
on the market, or, alternatively they could completely later on, nuclear power (The Euratom Treaty, 1958).
disappear. Energy strategies and energy tariffs and taxes have
always been different in each EU country, each applying
As a paradox, the crisis has done more for the climate its own national rules on these issues; the EU started to
than any of the “official” regulatory mechanism put in include energy within its competences in virtue of other
place by EU and International Institutions… issues: environment, competitiveness, social cohesion,
scientific research and cross-border trade.
12CINERGY – CITIZENS FOR ENERGY
1 . 5 . E u r o p e a n s t r ate g y o n r e n e w a b l e e n e r g y f r o m i t s b i r t h
In the last few years, energy policies in EU countries sources; the conclusions of the EU Council of Energy
have focused on two main objectives: responding to Ministers (8th of December 1997 and 11th of May 1998),
those environmental challenges related to the use of emphasizing the need to encourage the promotion of
fossil energy sources and, in particular, the objective of renewable energy sources, energy efficiency and natural
reducing Green House Gas (GHG) emissions; increasing gas combined cycles; the conclusions of the EU Council
the efficiency of the energy industries and, in particular, of Ministers for Environment of the 25th of June 1996
improving the competitiveness of the electricity and gas for the reduction of fuel consumption of motor vehicles
markets without jeopardizing the security of supply or by 2005; the European Commission’s Communication
the state of health of the environment. on transport and CO2 emissions (COM 98/204) that
identifies the technological, organizational and fiscal
Regarding the first objective, since 1990 the EU has measures for the reduction of emissions; tax measures
played a leading role at the global level, it was the first set by the Council and by the European Commission
to deliberately adopt as its objective the stabilization to promote renewable energies and low-carbon sources;
of CO2 emissions to 1990 levels by the year 2000. The the promotion of cultivations for biomass energy
Council Meeting of EU Ministers for the Environment production as part of the Common Agricultural Policy
of 17 June 1998 established the continuing commitment (CAP); the adaptation of waste management policies to
of the Community and its Member States to fulfil the the GHG emission reduction targets, with particular
commitments under Article 3 of the Kyoto Protocol, reference to methane emissions from landfills.
towards the reduction of 8% in greenhouse gas
emissions to be achieved by the Community as a whole. In recent years the EU developed several tools, along
This objective should then be reflected at the national with the national programs, to promote the achievement
levels in a set of policies and a national action plans for of Kyoto targets. In particular, the European Council of
the achievement of these goals. the 1st of December 2003, cites: the European Climate
Change Programme - ECCP; Directive 2003/87/
Reduction targets were to be achieved through subsequent EC establishing a greenhouse gas emission trading
steps, with the first CO2 emission reductions detectable scheme; the proposal for a Directive COM (2003) 403
from 2002 and with a first significant intermediate of the 23rd of July 2003, designed to allow the use of
result in 2005; the use of “flexible mechanisms” was emission credits within the European emission trading
intended to supplement national measures; the actual system, as foreseen by Kyoto Protocol mechanism
reduction in emissions was subjected to verification and (Joint Implementation – JI – and Clean Development
monitoring on an annual basis, both at national and EU Mechanism – CDM); the monitoring mechanism of EU
level. greenhouse gas emissions, set up by Council Decision
93/389/EEC, subsequently amended by Decision
Regarding the second objective, the conclusions of 17 99/296/EC and Decision 2004/280/EC.
June 1998 explicitly recalled the context and the EU policy
framework within which to place emission reduction As for the developments of the negotiations under the
measures. In particular: the IPPC 96/61/EC Directive, Framework Convention, the conclusions of the EU
which requires the use of the best techniques available in Council of Ministers for Environment of 2 March 2004
industrial processes from 2000 in new plants and from emphasized the importance of the entry into force of the
2006 in existing plants; Directive 96/92/EC concerning Kyoto Protocol, stating as its objective the containment
the liberalization of the market and the efficient use of of the increase in Earth’s average temperature to 2°C.
energy, as well as the directive approved on May 11, The Council asked the Community and its Member
1998 on the distribution and transmission of natural States to take into account the medium and long-term
gas; the White Paper of the European Commission on strategies for the reduction of emissions that included
the development of renewable energy sources (26th of specific targets.
November 1997), which assumes the minimum scenario Ultimately, the EU has set out the economic and
of doubling the production of energy from renewable industrial policies of the early decades of the 21st
13CINERGY – CITIZENS FOR ENERGY
century in the context of the Kyoto Protocol. support schemes and local planning giving priority to
the less contaminating technologies.
…. And today
To ease the burden on those countries which recently
Based on the experiences and developments of energy joined the EU – already engaged in adjusting their
policies that have seen an increasing integration of economic and regulatory systems, starting from an
environmental issues within energy strategies, the EU estimate of the level of energy end-use in 2020 and an
has defined its own strategy for the reduction of GHG assessment of the contribution of renewable sources
emissions of 20% by 2020, later formalized in Directive to the mix in 2005, the target to be reached has been
2009 / 28/CE of June 5 2009, with specific guidelines divided into two parts, one is the same for all countries,
related to renewable energy sources. the second varies from country to country in relation to
population and GDP.
In the period 2001-2008 several preparatory actions have
taken place, with the participation of various actors who The ETS system has then been revised in order to reach
have contributed to the definition of a shared European a greater reduction of GHG emissions in the most
energy strategy. The main directives issued are: 2001/77/ energy consuming sectors. From 2012 heavy industry is
EC on the development of renewable electricity; 2004/8/ expected to contribute significantly to the achievement
EC on the promotion of cogeneration; 2005/32/EC on of the EU target of cutting emissions by one fifth more
eco-design of energy-using products; 2006/32/EC on than in 1990.
energy end-use efficiency and energy services; 2008/98/ The goal is obviously to combat climate change and
EC on waste; 2009/29/EC (amending of 2003/87/EC) to promote the use of renewable energy sources through
improve and extend the EU’s emission trading system. binding targets for member countries.
The first objective for the EU was to find a way to engage in
The climate and energy package is a set of binding the “post-Kyoto” period without waiting for slow global
legislation that aims to ensure the European Union agreements: the European commitment was meant
meets its ambitious climate and energy targets for 2020. to represent an example for COP 15 in Copenhagen
These targets, known as the “20-20-20” targets, set three in December 2009, where the assumption was to be
key objectives for 2020: able to reach an agreement to combat climate change
• A 20% reduction in EU greenhouse gas emissions on the basis of the European experience. As is known,
from 1990 levels; an agreement has not been reached in COP 15 but,
• Raising the share of EU energy consumption produced nevertheless, the EU wanted to promote its unilateral
from renewable resources to 20%; commitment, so its target to reach a 20% reduction of
• A 20% improvement in the EU’s energy efficiency. its emissions by 2020 has been launched, bringing it to
30% by 2030 and 50% by 2050 (the baseline is 1990).
The EU directives differ from national laws, as they must
then be ratified and applied in very different contexts. At present, work continues towards the 2015 summit in
In particular, Directive 2009/28/EC on renewable Paris, which is expected to launch a new global climate
energy sources regards the final energy consumption agreement to come into force from 2020. Paris is not the
in the EU: by providing a required target (20% of total last resort, however, the V IPCC Report reminds us that
consumption produced by renewable energy sources), we must act globally. Within a few years, if we want to
the Directive aims to reassure investors and encourage avoid the dangerous threshold of the average increase in
technological development for the production of energy global temperature of more than 1.5-2˚C compared to
from renewable sources. Renewable energy definitions the pre-industrial era (the limit set to avoid catastrophic
presented in Directive 2009/28/EC are, however, changes). Action has to be taken at all levels, local,
insufficient. According to the definition given by the national and continental; but to achieve the desired
Directive, renewables are characterized only by the fact result the commitment must be agreed and delivered
they are energy not based on fossil sources. Renewable globally, in order to use all the levers to promote a low
energies need to be differentiated among themselves on carbon development.
the basis of their different environmental impacts. This
would allow planning for national strategies, priority The path of the Convention on Climate goes in parallel
14CINERGY – CITIZENS FOR ENERGY
with the objectives for sustainable development of the the other hand, the fact that all the countries whose
UN, which should draw the lines of a more equitable emissions affect the atmosphere must take the path of
and environmentally sustainable ?well-being? for the decarbonization is now recognized.
“Future We Want” in the world. In recent years we
have seen CO2 emissions rise steeply, reaching 400 In recent years, renewable energies have made big
parts per million: the phenomenon of climate change leaps forward. From 1977, the cost of photovoltaics has
has been caused by the industrial revolution based on fallen by 99%. It is also true that subsidies to fossil fuels
fossil fuels occurred in the last two centuries in those continue: 544 billion dollars in 2012 alone, according to
countries we call “developed”; a development that has the International Energy Agency (estimated by default).
created enormous wealth and consumption, but also Unfortunately, in recent years renewable energy has
large disparities. Today, other countries are following been attacked on multiple fronts: cuts to incentives,
the same path, and the level of GHG emissions has risen legislative barriers and new levies. The reality is that the
to dangerous levels. transition will take place, but the interests of the most
To try to avoid the most dangerous levels, it is necessary powerful lobby in the world could make it difficult and
for the emissions to diminish rapidly. The path must be expensive, especially if governments do not assume a
initiated by the developed countries, in the framework long-term perspective and do not act immediately with
of a common but differentiated responsibility. However, consistency.
so far there has been much talking and little action. On
1.6. The Europe 2020 strategy: the importance of energy choices
towards an inclusive Europe
The European Union is currently engaged in a major imbalances in the use of natural resources and energy
effort to leave the crisis behind and create conditions use, it is obvious that the transition to an efficient and low
for a more competitive economy with a higher carbon economy entails the promotion of an equitable
employment rate. In this context, Europe’s 2020 strategy distribution of economic benefits and environmental
aims to achieve a growth that is: intelligent, thanks to costs in a context of solidarity.
more effective investments in education, research and For this reason, energy security must be guaranteed by
innovation; sustainable, thanks to ambitious CO2 policies aimed at:
reduction targets; and inclusive, being focused on job - reducing the intensity in terms of the resources that
creation and poverty reduction. The strategy hinges we use and consume
on five ambitious objectives related to: employment, - helping small enterprises and cooperatives
innovation, education, poverty reduction and climate - promoting a diffused energy production
change/energy. In this sense, the only way to bring down the global
It is therefore no coincidence that Europe’s 2020 Strategy competition for natural resources – otherwise destined
resumes the Climate and Energy Package targets to worsen with greater environmental and social
(reduction of GHG emissions by 20% by 2020, etc.), consequences – is to overcome energy strategies still
formalized in Directive 2009/28/EC of June 5, 2009. based on the extraction of fossil sources, as an excessive
This shows, as also emerged in the Intergovernmental dependence on gas and coal continues to expose
Panel on Climate Change (IPCC) V Report (2013) the consumers and businesses to harmful and costly price
close relation between climate change, and therefore shocks, with all the related employment and social costs.
energy choices, and social impacts of environmental According to the estimates published on the European
policies. Commission website: “Meeting EU energy goals could
If economic growth in one part of the world and the save €60 billion on Europe’s bill for oil and gas imports by
disparities that have resulted so far also provoke 2020 – essential for both energy security and economic
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