The EU Commission today announced it will push for a 40 percent reduction in greenhouse gas (GHG) emissions compared to 1990 levels by 2030. The binding targets were released as part of the Commission's new climate and energy framework.

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Before the goals are finalised, the package must go before the EU Parliament and Council. A report on energy prices and costs in Europe, published alongside the Communication, suggested that rising energy prices can be partly mitigated by ensuring cost effective energy and climate policies, competitive energy markets and improved energy efficiency.

European Commission President José Manuel Barroso commented on Friday, "Climate action is central for the future of our planet, while a truly European energy policy is key for our competitiveness. Today's package proves that tackling the two issues simultaneously is not contradictory, but mutually reinforcing. It is in the EU's interest to build a job-rich economy that is less dependent on imported energy through increased efficiency and greater reliance on domestically produced clean energy."

Energy Commissioner Günther Oettinger added, "My aim is to make sure that energy remains affordable for households and companies. The 2030 framework sets a high level of ambition for action against climate change, but it also recognises that this needs to be achieved at least cost. The internal energy market provides the basis to achieve this goal and I will continue to work on its completion in order to use its full potential. This includes the 'Europeanisation' of renewable energy policies".

Environment and renewables groups react

However, renewables manufacturers and environment groups have accused the Commission of "selling out" on Europe's climate and energy policy. The Renewable Energy Association said it was disappointed by the lack of ambition for renewable energy in the Commission proposals and Greenpeace said the 40 percent target "is insufficient for the EU to deliver its fair share of global emission reductions required to keep global warming within safe levels."

REA was critical of the lack of specific renewables targets for member states, and drew attention to the UK Government's work, including pushing strongly for a 'technology-neutral' approach, which would downplay the role of renewables.

REA also criticised the failure to establish targets for transport, which accounts for 25 percent of UK greenhouse gas emissions. The Commission framework states that it "does not think it is appropriate to establish new targets for renewable energy or greenhouse gas intensity of fuels used in transport." REA said this oversight "Removes any direct incentive to decarbonise transport."

The Association's Chief Executive Dr Nina Skorupska commented, "We’re about to find out what happens when theoretical economics meets the real world. Theory suggests a 'technology neutral' approach is economically efficient. But experience shows that binding renewables targets do two things: First, they give a major long-term boost to investor confidence, helping accelerate market growth and technology cost reduction. Second, politics frequently trumps economics in the real world, and when politicians go wobbly on renewables, the targets help keep investment flowing.

"New binding targets for Member States would accelerate the cost reduction potential that is unique to renewables."

Connie Hedegaard, Commissioner for Climate Action, attempted to save face. She said, "In spite of all those arguing that nothing ambitious would come out of the Commission today, we did it. A 40 percent emissions reduction is the most cost-effective target for the EU and it takes account of our global responsibility."

Solar Trade Association spokesperson Leonie Greene countered, "It is something that Europe has agreed a 40% emissions reduction target, albeit not high enough, but renewable energy stands at the heart of achieving this. From a climate perspective Europe needs to expedite, not slow, renewables deployment. From an economic perspective weakening ambition is nonsensical given the massive investments in renewables our international competitors are making."

She added, "It's shocking that the UK Government, one of the poorest performers on renewables in Europe, sought to squash such a valuable target."

Greens within the European Parliament also criticised the Commission's framework. Green environment and public health spokesperson Carl Schlyter said, "These proposals represent a cop-out by the European Commission. Instead of seeking to address the very real environmental and public health concerns with shale gas and the controversial fracking process, Commission president Barroso has bowed to the pressure of the fossil fuel lobby and its political cheerleaders like David Cameron."

The next stage in the framework's progress is expected to be in two months' time, when it will go before the European Council, during the Council's spring meeting on 20-21 March. More information on the key elements of the framework is available from the European Commission.