Posted on March, 24 2006

Brussels, Belgium - A real common EU energy policy driven by transparent harmonisation of the markets and effective liberalisation of the power and gas sectors can help to both combat climate change and ensure security of energy supply, according to WWF, the global conservation organisation.

WWF welcomes the outcome of the European Council, where EU Heads of State and Government agreed to have a common energy policy for the European Union, but highlights the need to establish a level playing field among all actors on the market.

“True liberalisation with transparent prices, together with a harmonised and independent power grid will enable renewable energies and more efficient energy to enter the supply chain”, says Stephan Singer, Head of Climate and Energy Unit at WWF.

“True liberalisation also means different ownership for power production and power distribution so that end consumers all over Europe will have the choice to select the power source they want for the energy they use”.

According to WWF, it is essential to remove illegitimate subsidies to fossil fuels, which amount to 24 billion euros per year in the EU 15 “old” Member States alone. The European Environment Agency assessed that the external costs to the environment and society of fossil fuels and nuclear power amount to 30-70 billion euros per year, excluding the costs of climate change.

“If only a fraction of these sums would be reinvested in energy efficiency and renewable energies, the EU would easily be able to cut carbon dioxide emissions by 30 per cent by 2020 and lead the world in the fight against climate change”, added Stephan Singer.

“This is extremely important for the up-coming technology of off-shore clean wind power which may be providing 20-30 per cent of Europe's power in the future”.

In Europe there should be an independent regulator that should review the ongoing windfall profits in the power sector resulting from lack of competition. At present, in Germany alone the five largest utilities are likely to pocket between 30 and 60 billion euros, more than enough to meet the 12 billion euro investment needed to meet the country’s future energy needs.

NOTE:
In a report published in October 2005, WWF has shown that a 30% cut in greenhouse gas emissions by 2020 and the associated cuts in energy import needs will save about 0.7% of Europe's GDP (based on current prices).

For further information:
Stephan Singer, Head of European Climate and Energy Unit
WWF European Policy Office,
Tel: +32 2 743 8817,
E-mail: ssinger@wwfepo.org

Claudia Delpero, Communications Manager,
WWF European Policy Office,
Tel: +32 2 740 0925,
Mobile: +32 497 406 381,
E-mail: cdelpero@wwfepo.org