Energy : sustainable, secure and affordable energy for Europeans.
Date: 2014-12-08
Institutions: Directorate-General for Communication
Subjects: European Union, climate change policy, common strategy, energy consumption, energy policy, energy saving, public awareness campaign, renewable energy

T H E   E U R O P E A N  
U N I O N  
E X P L A I N E D

Energy

Sustainable, 
secure and 
affordable 
energy for 
Europeans

S ec ur ing   rel iab l e  en er gy at  af for d a ble 
p ri ce s  is   o ne  o f  t he  b igge st   ch al le ng es 
t he  E U  c ur r entl y  fac es :  f urt her 
in te gr atio n  o f  E uro pe an   e ne rgy 
p o li cie s  and   sp eaking   wit h o n e  vo i ce 
o n  t he  g lo b al  sc en e  are  c ru cial   in 
o r de r  t o  s uc cee d.

2

THE EUROPEAN UNION 
EXPLAINED

This publication is a part of a series that explains  
what the EU does in different policy areas,  
why the EU is involved and what the results are. 

You can find the publications online:
http://europa.eu/pol/index_en.htm

http://europa.eu/!bY34KD

How the EU works
Europe in 12 lessons 
Europe 2020: Europe’s growth strategy
The founding fathers of the EU

Agriculture
Banking and finance 
Borders and security 
Budget
Climate action
Competition
Consumers
Culture and audiovisual
Customs
Digital agenda 
Economic and monetary union and the euro
Education, training, youth and sport 
Employment and social affairs

Energy
Enlargement
Enterprise
Environment
Fight against fraud
Food safety
Foreign affairs and security policy
Humanitarian aid and civil protection 
Internal market
International cooperation and development
Justice,  fundamental rights and equality 
Maritime affairs and fisheries 
Migration and asylum
Public health
Regional policy
Research and innovation
Taxation
Trade
Transport

CONTENTS

Why we need a European  
energy policy
Common interests in a strategic field .  .  . . 3

How the EU goes about it
A European energy strategy  .  .  .  .  .  .  .  .  .  .  . . 5

What the EU does
Empowering consumers and  
stimulating the energy sector .  .  .  .  .  .  .  .  .  . . 9

Work in progress
2020 and beyond:  
building an Energy Union .  .  .  .  .  .  .  .  .  .  .  .  . 14

Further reading  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 16

The EU explained: Energy

European Commission
Directorate-General for Communication
Citizens information
1049 Brussels
BELGIUM

Manuscript updated in November 2014

Cover and page 2 picture:
© Digital Vision/Getty Images

16 pp. — 21 × 29.7 cm
ISBN 978-92-79-42192-1
doi:10.2775/60236

Luxembourg: Publications Office  
of the European Union, 2014

© European Union, 2014
Reproduction is authorised. For any use or reproduction 
of individual photos, permission must be sought directly 
from the copyright holders.

THE EUROPEAN UNION EXPLAINEDWhy we need a European energy policy

  Common interests in a strategic field

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Lighting, heating, transport, industrial output: energy is 
vital for essential day-to-day services, without which we 
and our businesses cannot function. Europe’s stocks of 
fossil fuels (oil, gas and coal) will not, however, last 
forever. They need to be judiciously managed while we 
look into new sources of energy. Europe is consuming, 
and importing, increasing quantities of energy.  
EU countries are well aware of the advantages of 
coordinated action in this highly strategic field. This has 
led to common rules throughout Europe and a pooling 
of Europe’s efforts to secure the energy that it needs at 
an affordable price, while generating the least possible 
pollution.

A complex sector

Turning on our computers or starting our cars are 
actions that we take for granted, yet they represent the 
final stage of a complex process. First of all, energy 

EU-27 FOSSIL FUEL IMPORTS (1995–2012)

1995
2000
2005
2010
2012

100 %

90 %

80 %

70 %

60 %

50 %

40 %

30 %

20 %

10 %

0 %

Total 

Coal (*) 

Petroleum (**) 

Gas

Import dependency

(*) Includes lignite. 
(**) Includes oil products. 

Source: Eurostat, April 2013 .

Generating energy and transporting it to consumers requires 
huge technical, logistical and financial resources.

resources, such as gas, oil and coal, have to be 
extracted from the ground. Wood can also be converted 
into heat, and electricity generated from wind, water 
and sunlight by using wind turbines, dams and solar 
panels. This energy then has to be transported, 
sometimes across continents or under the sea, to the 
place where it will be used. That requires power plants 
capable of producing an uninterrupted energy supply 
for many decades. Massive technical, logistical and 
financial resources are therefore involved.

Energy is a strategic sector because we cannot do 
without it. It is vital for lighting, protecting against the 
cold and transporting people and goods, and it also 
underpins all the sectors of the economy — agriculture, 
industry and services — as well as scientific progress. 
Our standard of living requires huge amounts of energy, 
and that obviously generates pollution (air, water, soil 
and climate) whose impact needs to be reduced as 
much as possible.

ENERGY 
 
4

The world’s largest importer

Europe depends on the rest of the world for its energy. 
The European Union, the world’s second largest 
economy, consumes one fifth of the world’s energy, but 
has very few reserves of its own. Fortunately, here in 
Europe, our portfolio — known as the energy mix — is 
very diverse: from Austria’s many dams, Poland’s coal 
mines and France’s nuclear power stations to the oil 
rigs of the North Sea and the gas fields of Denmark 
and the Netherlands, none of Europe’s countries are 
alike, and that is not a disadvantage. Provided, of 
course, that those countries work together to make the 
most of their diversity.

Europe’s energy dependence has an enormous impact 
on our economy. We buy our oil from the Organisation 
of Petroleum Exporting Countries (OPEC) and Russia, 
and our gas from Algeria, Norway and Russia. Europe’s 
coffers are depleted to the tune of over €350 billion 
every year to pay for it. Energy costs are also constantly 
on the increase. That leaves us with no other option: EU 
countries have to be efficient, set ambitious goals and 
work together if they are to diversify their energy 
sources and supply channels. 

Climate constraints

Leading experts have demonstrated what the exorbitant 
cost of climate change will be if the world does not 
succeed in reducing its greenhouse gas emissions. The 
energy sector is directly involved here as over 80 % of 
its output comes from fossil fuels, which emit carbon 
dioxide (CO2), the main greenhouse gas, when they are 
burnt. In the future, therefore, the European energy 
sector will have to cut down on fossil fuels and make 
much more use of low-carbon energy sources.

Europe must act together

The importance that EU countries attach to the energy 
sector is nothing new. Its relevance was recognised 
immediately after the Second World War, when Europe’s 
founding fathers resolved to ‘place the instruments of 
war at the service of peace’, to use the words of Jean 
Monnet. Coal and steel and atomic energy were the 
starting point for the first European treaties: the 
European Coal and Steel Community (ECSC) Treaty, 
which was mainstreamed into EU policy in 2002, and 
the Euratom Treaty on atomic energy, which is still in 
force today.

In the 1960s, EU countries realised that they had to 
work together to resolve energy supply problems. As a 
result, they pooled strategic oil stocks and set up a 
crisis-management procedure. Nowadays, energy policy 
also has an impact on many other fields: industry, the 
environment, transport, research and innovation, and 
even external relations.

Europe’s goals

The European Union has the powers and 
instruments that it needs to implement an energy 
policy geared towards:

 — securing Europe’s energy supply; 

 — ensuring that energy prices do not make Europe 

less competitive; 

 — protecting the environment and in particular 

combating climate change; 

 — improving energy grids.

EU countries are free to develop whatever energy 
sources they wish. They must, however, take 
account of EU renewable energy objectives.

A single market of half a billion Europeans.

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THE EUROPEAN UNION EXPLAINED 
 
 
 
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How the EU goes about it

  A European energy strategy

Europe currently has to import over half of its energy 
because it has few energy reserves. And it has to accept 
the price decided by world markets or even by individual 
supply countries. A powerful way to cut our energy bill 
is to reduce the amount of energy that we consume. 
That may seem obvious. But can we consume less while 
maintaining our living standards and modern 
conveniences? 

Saving energy

Reducing our energy consumption is no easy matter, but 
the answer is yes: by using energy in better and more 
efficient ways. A win–win solution is possible: CO2 
emissions can be reduced and we can create new jobs 
and save money by becoming less dependent on energy 
imports. Moreover, we have the opportunity to export 
our expertise. Energy efficiency is therefore one of the 
European Union’s main objectives for 2020. European 
leaders decided that our total energy consumption 
needed to be cut by 20 % of 1990 levels by 2020.  
A substantial cut of that kind is tantamount to turning 
off over 400 power stations. To achieve its objective, 
the European Union has to encourage its members to 

stop energy wastage from electrical appliances, 
industry and transport. Buildings are also a key area, as 
we consume 40 % of our energy in them and they emit 
36 % of all greenhouse gases in the EU, 80 % in the 
form of heat.

The energy efficiency directive, adopted in 2012, will 
help the EU to reach these targets and benefit from all 
energy efficiency opportunities. It is a cross-cutting law 
introducing measures across all major economic 
sectors, including new energy targets and audits, heat 
recovery and energy performance objectives. In 2014 
the European Commission will assess whether the EU is 
on track to reach its 20 % target and will suggest an 
appropriate way forward.

All EU countries have had to set indicative national 
energy efficiency targets for 2020 and draw up plans 
outlining how they intend to reach them. Given the 
challenging economic climate, the EU has to pull out all 
the stops if it is to spur investment and concrete actions 
in the field of energy efficiency. Even if investments in 
energy efficiency quickly become profitable and act as 
leverage for further investment, the money has to be 
made available in the first place. The European Union 
can help its members to finance their energy efficiency 

The challenge for Europe: 
lowering consumption while 
preserving living standards.

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ENERGY 
6

plans through its budget and its financial institutions.  
A significant amount of EU funding is available during 
the 2014–20 period to help upscale energy efficiency 
investments (€23 billion alone from EU Structural 
Funds). Moreover, energy efficiency is becoming an 
important area for research and innovation under the 
new Horizon 2020 programme (see below).

A genuine European energy market

In principle, electricity and gas can flow freely though 
the grids which criss-cross Europe. In a single European 
energy market, all producers and suppliers compete 
with one another. In theory, it is therefore possible to 
buy and sell electricity and gas wherever one wants, the 
aim being to obtain high-quality energy at the most 
competitive price. However, this market of 500 million 
consumers has yet to become a reality because a series 
of national rules hamper the development of cross-
border energy businesses. The prices of gas and 
electricity for businesses, set by governments, are just 
one example. Some players even have privileged and 
unfair access to energy grids. Investors are therefore 
deterred because the outlook is not very promising. As a 
consequence, the regeneration of power plants that 
have become outdated could be delayed. Competition 
therefore needs to be enhanced and common rules 
need to be introduced on the equitable use of grids. The 
European Union has a leading role to play here, both in 
setting the common rules and in strictly supervising 
markets to prevent certain players from unjustly 
exploiting any kind of monopoly.

Up-to-date energy grids

Energy grids also need to be modernised and developed 
in order to cope with the growing demand for energy, to 
diversify existing resources and to make the market 
more fluid. Over the next 10 years, a massive 
investment of around €1 trillion will have to be made in 
energy grids. The EU can give its members a helping 
hand here, as it is in all their interests to develop 
high-voltage lines and transnational gas pipelines and 
to store energy. High-voltage electricity grids, originally 
built to connect large electricity power stations to 
neighbouring consumer areas, must also be connected 
up to power stations intermittently generating electricity 
from renewable sources. Finally, distribution grids must 
make it possible to use electricity in a more flexible 
way, so that peaks in demand can be better managed, 
and must allow for individual micro-generation (solar 
panels for instance).

However, it still takes too long to obtain the permits 
needed for grid projects. The European Union therefore 
encourages the development and modernisation of 
energy grids in order to speed up the construction of 
any ‘missing links’, especially in eastern Europe. The 
role of the European Union should not just be one of 
overall coordination; in some cases it can financially 
support certain projects which are essential but involve 
too many economic risks for businesses and countries 
alone.

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European households, public 
services and businesses need 
safe and reliable energy.

THE EUROPEAN UNION EXPLAINED 
7

Consumers are central to concerns

Leaders in low-carbon technology

The ultimate aim of EU energy policy is to benefit 
consumers, be they individuals or small or large 
companies. Consumers have rights and must be better 
informed about them in order to make the most of the 
opportunities offered by the internal energy market. 
They should for instance be able to: switch supplier 
readily, receive straightforward and comparable bills 
and offers, find out where their electricity has come 
from and receive information on their consumption at 
any moment. Information technology and 
telecommunications are set to occupy an increasingly 
important place in the energy sector as a way of 
involving consumers more proactively in the energy 
market. Only Europe-wide regulation will place all 
consumers on an equal footing and enable them to 
benefit from the economies of scale achieved by the 
sector. Europe must therefore introduce the necessary 
regulations, especially as regards the protection of data 
obtained from gas and electricity meters. Consumers 
must also be able to buy energy-saving appliances and 
be informed about their actual consumption so that 
they have all the information at their fingertips before 
making a purchase. Businesses must be able to buy 
their energy in the safest and cheapest way possible. 
Only real competition can pave the way for fair prices 
that are neither artificially high nor too low to 
encourage investment in energy generation.

Safety: a key issue for Europeans

Europeans need to know that EU energy policy 
guarantees safe energy generation and transport. EU 
governments are aware of the advantages of Europe-
wide coordination or even the harmonisation of safety 
standards for critical power plants. The Fukushima 
accident in Japan was a striking illustration of the 
importance of nuclear safety. The European Union must 
therefore set the highest possible safety standards for 
European nuclear power stations and the management 
of nuclear waste. EU standards to protect the 
population and nuclear sector workers against 
radioactive radiation now apply throughout Europe. 
Finally, Europe must continue to guarantee that the use 
of nuclear material within its borders does not lead to 
illicit trafficking or the proliferation of nuclear 
weapons.

There will have to be a technological revolution in 
Europe if energy is to be generated without emitting 
CO2. In 2013, the European Commission proposed an 
update of the EU’s strategic plan for low-carbon energy 
technologies. To address the new challenges in the 
global energy market, the European Union is setting its 
priorities on energy research and innovation so as to 
ensure the integration of low-carbon technologies into 
the energy system and to bring new products into the 
market in a cost-efficient way.

The goal is to rally industrialists in the sectors 
concerned to work together while benefiting from EU 
support. Some industrial initiatives focus on energy 
generation and sources such as biofuels, wind, solar 
and nuclear power, as well as fuel cells and the use of 
hydrogen. Others are geared towards better energy 
management in ‘smart cities’, underground CO2 capture 
and storage and the electricity grids of the future. The 
aim here is to make these new technologies affordable 
and profitable so that current technologies can 
ultimately be replaced and CO2 emissions reduced in 
the European energy sector. The huge costs involved 
mean that this objective can only be achieved through a 
coordinated, Europe-wide effort.

Energy diplomacy

Europe, the world’s largest regional market, must assert 
its interests on the international scene in order to 
ensure that its energy supplies are secure. Its size as 
well as its dependence on the outside world leave it 
with no other choice, especially at a time when the 
world race for energy resources is accelerating. The 
problem is that European countries have always found 
it difficult to speak with a single voice. But it is crucial 
that they present a united front so as to have a 
stronger influence on the leading energy-producing and 
energy-consuming countries. Europe must ensure the 
safe transport of energy from its gas and oil suppliers. 
Energy must also be part of European external policies 
including development aid, trade and bilateral 
cooperation agreements. That is also a way of 
supporting exports of cutting-edge European 
technologies.

ENERGY8

WHERE DO EUROPE’S OIL AND GAS IMPORTS COME FROM?

Traditional strategic 
suppliers

Emerging strategic 
suppliers

NORWAY

RUSSIA

LNG (*)

OPEC

(*) LNG: liquefied natural gas (Algeria, 
Nigeria, Qatar, etc .)

Source: European Commission .

EASTERN 
MEDITERRANEAN

ALGERIA

CASPIAN SEA

IRAQ

Democratic decision-making

EU energy policy affects all Europeans. EU law has a 
major impact on national law, especially in the energy 
field. The European Parliament (directly elected every 
5 years by EU citizens) and the Council of Ministers of the  
European Union (representing national governments) 
jointly adopt EU energy law, except for legislation on 
nuclear power and energy taxation which the Council of 
Ministers adopts on its own. National governments are 
involved in drawing up EU law at an early stage, via 
committees of national experts. Professional 
organisations and civil society take part in this 
transparent process, as their opinion is sought during 
various consultation stages.

THE EUROPEAN UNION EXPLAINEDWhat the EU does

  Empowering consumers and stimulating the energy sector

9

The EU has provided for the establishment of new 
national authorities in every EU country, commonly 
known as energy regulators, to ensure fair competition. 
Their task is to supervise the system and to ensure that 
energy companies follow the rules. They have extensive 
powers to punish anti-competitive practices and help 
consumers to make the best possible choices. The 
regulators set energy transport tariffs as fairly as 
possible so that grid operators receive a proper income 
and are encouraged to invest, without any major 
increases in final consumers’ bills. Energy prices will not 
necessarily go down, however, as they depend to some 
extent on the market prices of fuels, including oil, coal 
and gas which are impossible to control. A very 
effective way of reducing your energy bill is therefore 
to reduce what you consume. If European energy-saving 
goals are achieved by 2020, every European household 
will make a yearly saving of around €1 000. 

The European Union provides European consumers with 
an unprecedented level of protection: it protects 
vulnerable consumers, increases the regulatory powers 
of supervisory authorities and their ability to impose 
sanctions and makes bills easier to understand. 
However, the real revolution lies in the ‘smart’ meters 
and grids which, it is hoped, will make consumers more 
proactive. Not only will bills be based on actual 
consumption, but consumers will also be able to find 
out about their consumption at any moment and take 
steps to improve it. The European Union is introducing 
the necessary safeguards to ensure that citizens’ 
privacy is protected when information is gathered from 
smart meters.

Energy labelling, brought in by the European Union, 
means that people are now fully informed about their 
purchases when they buy electrical appliances. This kind 
of labelling is now being extended to many domestic, 
electrical, office and other products. It has encouraged 
manufacturers to offer more energy-saving products, 
thus helping to reduce bills, as the total price of a 
product not only includes its purchase price but also the 
cost of using it. 

Cutting energy bills

The end of monopolies in electricity and gas markets 
means that all consumers are free to choose their 
energy suppliers. A recent study has estimated that 
over €13 billion, that is €100 per household per year, 
could be saved by switching electricity and gas 
suppliers. Businesses were the first to be able to choose 
their suppliers. Energy accounts for a substantial 
proportion of the production costs of both large and 
small companies in Europe’s main industries. 
Competition between energy suppliers has extended 
what is on offer, improved the overall quality of the 
service and kept prices as low as possible.

Energy labelling gives you 
the information you need to 
choose the right appliance.

ENERGY10

Securing Europe’s energy supplies

Major electricity cuts are now rare in Europe, thanks to 
some extent to the cooperation between grid operators 
set in motion by the European Union. However, 67 % of 
Europe’s gas is imported, in some cases from very far 
away. A breakdown in supply for reasons over which it 
has no control may have serious consequences. To 
prevent shortages, the European Union therefore has a 
very comprehensive solidarity mechanism through 
which oil and gas stocks can be accessed. Prevention is 
nevertheless better than cure: the EU has set up its own 
energy market observatory and even introduced an 
early warning mechanism with Russia and other key 
supply and transit countries. 

In October 2014 the Commission published a report on 
the resilience of the European gas system. The report 
assesses the impact of potential gas supply disruptions 
in various European countries. The main 
recommendation is that EU countries need to cooperate 
and allow market forces to work where possible. This 
cooperative approach could significantly reduce the 
impact of gas disruption in the most affected countries.

‘Winter package’ deal between Ukraine 
and Russia

In late October 2014, a 4.6 billion dollar deal was 
reached between Ukraine and Russia, with the 
European Commission acting as moderator. The 
result should ensure that Ukrainians (and, 
ultimately, Europeans) have access to sufficient 
heating in winter 2014/2015.

The 2030 framework for climate and 
energy

On the basis of a proposal from the European 
Commission, EU leaders agreed in October 2014 on 
a new EU framework on climate and energy for 
2030. The framework includes EU-binding targets to 
reduce domestic greenhouse gas emissions by at 
least 40 % compared to 1990 levels and to 
increase the use of renewable energy to at least  
27 % of total energy consumption by 2030. It also 
contains renewed ambitions for energy efficiency 
policies, a new governance system and a set of new 
indicators to ensure a safe, competitive and 
sustainable energy supply.

Stimulating the energy sector

Competition between electricity and gas operators has 
shaken up the energy sector. New trades have emerged 
(traders, consultants, auditors), and the sector is 
increasingly drawing on information and communication 
technologies. New operators have broken into national 
markets, and many now have a European dimension. 
Winning over new customers requires innovation to 
create new products at competitive prices and therefore 
greater efficiency. The European Union has introduced 
incentives and priority measures to promote new 
sources of energy in electricity generation, in biofuel 
and heat production, and even in combined electricity 
and heat generation.

Greater energy sharing 
between European countries 
reduces the risks of gas 
shortages and power cuts.

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THE EUROPEAN UNION EXPLAINED 
 
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The EU target for all new buildings is for them to be 
‘practically zero-energy’ by the end of the decade, 
which will considerably cut energy consumption and 
energy bills. The use of renewable energy will satisfy 
the low energy needs of these buildings, thereby 
reducing emissions.

The energy performance of buildings directive requires 
EU countries to set up a system of energy performance 
certificates for buildings, including recommendations for 
more energy efficiency. These building labels generally 
follow an ‘A to G’ scheme similar to the EU energy 
labelling for appliances such as fridges, ‘A’ being the 
best energy class. Energy performance certificates give 
information to consumers on how high their energy bills 
will be, allowing them to compare offers and to better 
negotiate rental prices. It has been demonstrated that 
the improvement of energy efficiency by one class (for 
instance from G to F) increases the price of a house or 
a flat by at least 4 %.

Achieving European energy-saving objectives could create 
2 million jobs by 2020.

The boom in renewables

The current EU objective is for 20 % of the energy 
consumed in the European Union in 2020 to come from 
renewable sources (and at least 27 % by 2030). 
Promotion of this objective throughout Europe has led 
to a spectacular increase in the production capacity of 
renewable energy sources. In 2011 over 100 gigawatts 
of solar panels were installed worldwide, 70 % of them 
in the EU. EU renewables production contributes to 
reducing fossil fuel imports equivalent to around €400 
billion every year.

Europe’s expanding renewable energy market has 
considerably reduced the cost of renewable 
technologies: the cost of solar panels has for instance 
fallen by 70 % over the last 7 years.
Renewable energy is also part of a growing ‘green’ 
technology sector which employs more and more people 
in Europe. In 2011, 1.2 million people had renewable-
energy-related jobs. By 2020, the renewables and 
energy efficiency sector are expected to employ over 
4 million people across the EU.

Renewable energy is at the core of Europe’s long-term 
energy strategy because it helps to reduce greenhouse 
gas emissions and reduces Europe’s energy imports, 
making Europe more independent. This booming 
economic sector contributes to European technological 
leadership, providing EU countries and their regions with 
new ‘green’ jobs and high added-value exports.

Energy efficiency: a promising market

Investment in greater energy efficiency is stimulating 
growth. Insulating homes, installing new energy-saving 
equipment, refurbishing buildings and carrying out 
audits: they all stimulate economic activity. 2 million 
jobs could be created by 2020 if Europe’s energy-saving 
objectives are achieved. With a yearly investment of 
€24 billion in insulation, energy management and 
control systems, for instance, the overall European 
energy bill could be cut by some €38 billion between 
now and 2020.

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ENERGY 
 
 
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The Energy Star logo helps 
consumers to find equipment 
with high energy efficiency.

Moreover, an increase in the building renovation rate 
would also strongly contribute to job creation and 
competitiveness in the construction and energy services 
sectors. The renovation of existing buildings also 
provides a significant opportunity to stimulate 
innovation.

From now on, energy suppliers must deliver energy 
savings for their customers. The energy service 
company business model will need to be rolled out 
across Europe. Companies of this type are tasked with 
supplying energy services (lighting, heating, air 
conditioning, electricity supply) on the condition that 
they invest in high-performance equipment and reap 
rewards from the energy savings that they achieve.

The EU is also lowering energy consumption through 
eco-design requirements for a wide range of appliances 
including televisions, refrigerators, dishwashers, 
washing machines, fans, freezers, lamps and much 
more besides. The most radical and visible change has 
been the replacement, on a massive scale, of 
conventional light bulbs by energy-saving light bulbs, 
which use up to five times less energy.

In addition to the energy label, the Energy Star logo 
which one can find on office equipment is visible proof 
that the European Union is encouraging the sale of 
energy efficient products. Since 2001, under an 
agreement with the United States, it has been possible 
to showcase the energy efficiency of numerous 
products (computers, photocopiers, printers, monitors 
and others) using the label. The energy label and the 
Energy Star logo offer valuable guidelines to public 
authorities when making bulk purchases.

Increasing energy efficiency through 
research and innovation actions

Interview with Patrick Lambert, Director of the 
Executive Agency for Small and Medium-sized 
Enterprises (EASME).

What is your agency doing in the energy field?

P.L.: Since January 2014 we are responsible for 
carrying out energy efficiency calls under the 
Horizon 2020 programme (2014–20), the successor 
to the framework programme for research and 
development. We will promote and support projects 
along the full research and innovation cycle, 
including market-uptake activities for facilitating 
policy implementation, raising skills levels and 
mobilising investments in energy efficiency. We will 
also continue to manage the projects supported 
under the intelligent energy Europe programme 
(2007–13) to foster energy efficiency and the use 
of renewable sources. Our communication activities 
culminate every year at the EU Sustainable Energy 
Week (EUSEW).

Can you really change attitudes in a week?

P.L.: Several hundred events take place during EU 
Sustainable Energy Weeks throughout the European 
Union, including 100 or so in Brussels. We want to 
make Europeans and businesses more committed 
and create a snowball effect by encouraging them 
to replicate projects and best practices throughout 
Europe. Our annual sustainable energy prizes are 
our showcase, as well as an added incentive for 
stakeholders.

Is legislation not enough on its own?

P.L.: Adopting laws is important, but action is also 
needed in the field to ensure that they become a 
reality in people’s lives. For instance, it will not be 
possible to put into practice European laws on the 
energy performance of buildings unless energy 
actors, including consumers, are properly informed 
and skilled.

THE EUROPEAN UNION EXPLAINED13

Combating climate change

Europe’s place on the world stage

In international climate talks, the EU has committed 
itself to reducing its greenhouse gas emissions by 20 % 
of 1990 levels by 2020 and under certain conditions to 
increase that figure to 85 % or even 95 % by 2050. 
Most of that reduction will have to come from the 
energy sector, as it accounts for 80 % of the European 
Union’s greenhouse gas emissions. If the EU continues 
to meet its targets at the current rate, it will exceed its 
current goal of a 20 % reduction of greenhouse gas 
emissions and achieve a 25 % reduction by 2020.

All decision-making levels are involved in implementing 
EU energy and climate policies, be they local, regional, 
national or European. For instance, the European Union 
launched the Covenant of Mayors initiative in 2009. 
Signatory towns and cities undertook to exceed the 
European objectives. There are currently 4 000 
signatories, representing over 160 million inhabitants 
and offering a potential CO2 reduction of 164 million 
tonnes, the equivalent of all emissions from Hungary, 
Portugal and Sweden put together.

The European Union has set up a permanent dialogue 
on energy issues with its main suppliers — Norway, 
Russia, the Gulf states and OPEC — and with other 
countries or regions playing an important role on the 
world energy stage, namely Brazil, China, India, the 
United States, Africa and the Mediterranean. The EU has 
launched many cooperation and aid programmes in the 
energy field throughout the world. It cooperates actively 
with organisations such as the International Energy 
Agency, the International Atomic Energy Agency and the 
International Energy Forum. It has signed up to the 
‘Sustainable energy for all’ initiative launched in 2011 
by the UN to help a further 500 million people in 
developing countries gain access to sustainable energy 
by 2030. Closer to its borders, the EU has signed the 
Energy Community Treaty in order to integrate 
progressively the energy markets of south-east Europe, 
Moldova and Ukraine on the basis of the EU energy, 
competition and environmental rules. Energy is also a 
key element of EU neighbourhood policy with countries 
in the south and east of Europe, with specific emphasis 
on energy efficiency and the promotion of renewable 
energy sources.

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The EU takes part in many 
international programmes 
where it can spread its 
expertise in renewables.

ENERGY 
 
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Work in progress

  2020 and beyond: building an Energy Union

Throughout the world, we have to come to terms with 
the increased difficulty of accessing the planet’s 
mineral resources. Oil will be much more expensive and 
much more difficult to extract. While new shale oil and 
gas reserves may well exist, there are many 
environmental constraints which hamper their 
extraction. More and more energy will be needed to 
mine raw materials, as the mineral content of mines 
will continue to decrease. Access to energy sources will 
therefore be increasingly subject to geopolitical 
considerations. For Europe this situation makes it urgent 
to radically rethink the security of our energy supply. 
The EU has therefore invested enormously in recent 
years in diversifying its energy supplies and energy 
routes. One such project is the southern gas corridor, 
which should give Europe access to the substantial gas 
resources in the Caspian Sea region. 

A stable long-term energy policy

Europe faces a complex challenge: the need to secure 
access to imported energy sources while supplying 
energy at the most competitive prices possible and at 
the same time protecting the environment. In keeping 
with its international commitments, the European Union 
is already on the path to becoming a low-carbon society 
by 2050. Its 2050 Roadmap has sparked a debate on 
the best way to meet growing energy needs at 
affordable prices while keeping greenhouse gas 
emissions to a minimum. However, given that the 
energy capacity of a huge number of older power plants 
will have to be replaced over the next 30–40 years, the 
EU needs to attract new investors by providing them 
with a clear and stable regulatory framework. 

The EU continues to invest 
enormously in diversifying its 
energy sources and energy 
routes.

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Cities of the future will be 
low carbon and provide 
better services for their 
increasing populations.

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Improving our energy security

A long-term strategy: the 2030 
framework

In response to the political crisis in Ukraine and given 
the overall importance of a stable and abundant energy 
supply for the EU’s citizens and economy, the European 
Commission put forward an EU Energy Security Strategy 
in May 2014. Its main objective is to define ways of 
reducing the EU’s energy dependency and to increase 
energy security. The strategy focuses on diversifying 
sources of external energy supply, modernising energy 
infrastructure, increasing energy production in the EU, 
completing the internal energy market and moderating 
energy demand. It also provides for better coordination 
of decisions between national energy policies.

The European Councils of June and October 2014 
welcomed the Commission’s strategy and agreed on 
the launch of short-term measures in order to 
increase EU energy security in view of the coming 
winter. 

If the EU is to move towards a low-carbon society, it 
needs a clear vision for the long term. The European 
Council adopted the proposal of the Commission on 
climate and energy objectives for 2030. The aim of this 
long-term strategy is to increase certainty for investors, 
especially for long-term infrastructure projects, give 
guidance to EU governments in preparing national 
policies and help the EU to contribute constructively to 
negotiations on a new international climate agreement 
in 2015. It also aims to reduce our dependency on 
imported fossil fuels, to make the EU economy more 
energy and resource efficient (and thus less carbon 
intensive) and to increase investments in the EU 
economy, developing new sectors, technologies and 
jobs.

A more European energy policy

It is only through European integration that these 
long-term challenges can be met: the decisions of one 
EU country have repercussions for us all. Modernising 
the energy system and developing new technological 
solutions do, however, raise huge financial issues. 
Without European cooperation, public funds will not be 
able to channel investment into the technologies of the 
future, which are still too risky for national investors 
alone. In this period of transition to a greener world, EU 
countries must agree on their energy priorities in order 
to better coordinate their work in this field and to allow 
the EU to speak with one voice in the outside world.

ENERGY   
 
 
 
16

Energy savings: a more ambitious target 
for 2030 

Based on a proposal from the Commission, in October 
2014 the European Council adopted a new EU-level 
target: energy efficiency should be improved by at least 
27 % by 2030. This target will benefit Europe with new 
opportunities for businesses, affordable energy bills for 
consumers, increased energy security through a 
significant reduction of natural gas imports and a 
positive impact on the environment. The proposed 
target builds on existing achievements: new buildings 
use half the energy they did in the 1980s and industry 
is about 19 % less energy intensive than in 2001.

In the coming years, energy will continue to stay high 
on the European agenda. The European Council in 
particular has stressed the importance of energy 
efficiency and of boosting domestic production. It has 
also underlined the need to make the European energy 
market fully functioning and inter connected, based on 
a regional approach. This is to be done by increasing 
transparency in the gas market and by correcting gaps 
in infrastructure, so as to end EU countries’ isolation 
from European gas and electricity networks.

In short, a truly common European energy policy is the 
only sustainable solution for the future.

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Further reading

EUROPEAN ENERGY LEGISLATION
 X Summary of EU legislation: http://europa.eu/legislation_summaries/energy/index_en.htm
EUROPEAN ENERGY STATISTICS
 X Energy trends up to 2050: http://ec.europa.eu/energy/en/statistics/energy-trends-2050  
EUROPEAN ENERGY STRATEGY
 X 2020 / 2030 / 2050 strategy: http://ec.europa.eu/energy/en/topics/energy-strategy
EUROPEAN ENERGY POLICY
 X European Commission — DG Energy: http://ec.europa.eu/energy/index_en.htm

ISBN 978-92-79-42192-1 
doi:10.2775/60236

THE EUROPEAN UNION EXPLAINED