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Semelhante a EU Commission DG EMPL presentation Madrid energy poverty.pptx
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EU Commission DG EMPL presentation Madrid energy poverty.pptx
- 1. How do European policies address energy poverty and the energy price crisis? Energy prices & energy poverty in Southern Europe: realities & perspectives Caritas Española, 16 September 2022 Pablo Jacome Fair Green and Digital Transitions, Research DG Employment, Social Affairs and Inclusion
- 2. EU action on energy poverty • Social principles, Green Deal & Council Recommendation, REPowerEU Energy poverty in the EU • Definition, indicators and key challenges EU initiatives on Energy Poverty Outline of the presentation
- 3. Housing and assistance for the homeless Access to essential services Long-term care Inclusion of people with disabilities Healthcare Old-age income and pensions Minimum income Unemployment benefits Social protection Childcare and support to children Healthy, safe and well-adapted work environment and data protection Work-life balance Social dialogue and involvement of workers Information about employment conditions and protection in case of dismissals Wages Secure and adaptable employment Active support to employment Equal opportunities Gender equality Education, training and life-long learning
- 4. • IPCC: Climate change is already disrupting nature and affecting the lives of billions of people around the world • Key risks for Europe becoming more severe at 2°C global warming level. • Mitigation: the next few years are critical (global GHG emissions to peak before 2025 for 1.5°C path) Urgency of climate action
- 5. Europe is now the very first continent that presents a comprehensive architecture to meet our climate ambitions. Our Package aims to combine the reduction of emissions, with measures to preserve nature, and to put jobs and social balance at the heart of this transformation. Statement by President von der Leyen on delivering the European Green Deal, 14 July 2021
- 6. “Fit for 55” – part I (14 July 2021) 6 Pricing Targets Rules • Stronger Emissions Trading System including in aviation • Extending the Emissions Trading to maritime, road transport, and buildings • Updated Energy Taxation Directive • New Carbon Border Adjustment Mechanism • Updated Effort Sharing Regulation • Updated Land Use, Land Use Change and Forestry Regulation • Updated Renewable Energy Directive • Updated Energy Efficiency Directive • Stricter CO2 performance for cars and vans • New infrastructure for alternative fuels • ReFuelEU: More sustainable aviation fuels • FuelEU: Cleaner maritime fuels Support Measures • Using revenues and regulations to promote innovation, build solidarity and mitigate impacts for the vulnerable, notably through the new Social Climate Fund and enhanced Modernisation and Innovation Funds
- 7. 7 “Fit for 55” – part II (14 December 2021) Mobility Climate and Energy Environment • Revision of the Regulation on the trans-European transport network (TEN-T) • EU rail corridor initiative to boost long-distance and cross-border passenger rail • New EU Urban Mobility Framework • Revision of the Intelligent Transport Directive • EU legislative proposal to reduce methane emissions in the energy sector • Hydrogen and decarbonised gas package • Revision of the Energy Performance of Buildings Directive (EPBD) • Commission Communication on restoring Sustainable Carbon Cycles • Strengthening EU law to combat environmental crime Social • Council Recommendation on ensuring a fair transition towards climate neutrality
- 8. • Encourage Member States to: • Fully exploit the benefits and opportunities associated with the green transition; • While fairly spreading the costs of tackling and adapting to climate change. • Provides policy guidance on the right accompanying policies necessary to make the most of the green transition’s potential, so that it brings a high net benefit to society. • It delivers on the key objective of the Green Deal and contributes to the implementation of European Pillar of Social Rights. 8 Council Recommendation Ensuring a fair transition towards climate neutrality Ensuring a fair sharing of costs and benefits of the transition is indispensable to obtain broad support for the European Green Deal among European citizens.
- 9. a. Active support to quality employment a. Whole-of-society approach 2. Other ‘enablers’ 1. Policy packages for a fair green transition c. Fair tax-benefit systems, social protection b. Education, training, lifelong learning d. Access to essential services, housing b. Evidence-based policy-making 3. Funding Optimal use of public and private funding Council Recommendation Ensuring a fair transition towards climate neutrality
- 10. • Understood as a multi-dimensional phenomenon, mix of: • Low levels of income • High (or extremely-low) expenditure on energy • Other factors related to energy efficiency • Council Rec on fair transition: ‘energy poverty’ means a household’s lack of access to essential energy services that underpin a decent standard of living and health, including adequate warmth, cooling, lighting, and energy to power appliances, in the relevant national context, existing social policy and other relevant policies. • Ongoing negotiations on Energy Efficiency Directive (EED) recast Energy poverty definition at EU level
- 11. • Key indicators available : • Material deprivation indicators (EU SILC) – yearly (part of the overall indicator of poverty or exclusion - AROPE) • Inability to keep home adequately warm (perception based) • Arrears on utility bills (not only energy is covered) • Household's expenditure patterns (Household Budget survey) – every five years • M/2 : households whose absolute energy expenditure is below half the national median absolute energy expenditure (low consumption, useful to comprehend hidden energy poverty) • 2M : households whose share of energy expenditure in income is more than twice the national median share (high consumption (overspending)) • Other secondary indicators: see Energy Poverty Advisory Hub dashboard Available energy poverty indicators
- 12. Energy poverty: large differences across MS and much higher rate for people at-risk-of-poverty Source: own EMPL calculation based on Eurostat data
- 13. Energy poverty: middle-class also affected Source: own calculation based on Eurostat data
- 14. • Work of Indicators’ Sub-Group of the Social Protection Committee on indicators • Report on access to essential services (incl. energy) (forthcoming Q4) • Collaboration with ESTAT to publish data on essential services (incl. energy): consumption as a share of income • Eurofound report: Access to essential services for people on low incomes: energy, public transport and digital communications (Access to essential services for people on low incomes: Energy, (europa.eu)) EMPL initiatives on energy poverty
- 15. • GD-AMEDI (EMPL-JRC project): Green Deal - Assessing and Monitoring Employment and Distributional Impacts of the Twin Transition • Improves modelling capacities: GEM-E3 & EUROMOD • Assesses employment & distributional impacts of climate and energy policies • Different scenarios, including by price increases • Breakdowns of results by: MS, regions, sectors, occupations, skills, households and income group EMPL initiatives on energy poverty – GD- AMEDI
- 16. EMPL initiatives on energy poverty – GD- AMEDI Distributional impacts: Revenue recycling can tackle regressive effects of carbon pricing Source: SWD(2021) 452 final
- 17. • Call for tender “Study on Transport Poverty: Definition, Indicators, Determinants and Mitigation Strategies” • Open for applications until end Sep • Help better understand how to define and measure the affordability and availability of (public and private) transport • Preliminary results Sep/Oct 2023 EMPL initiatives on energy poverty
- 18. New challenges while crises add urgency: Energy price hike, Russia's invasion of Ukraine and EU reaction
- 19. • Energy prices toolbox & related Energy Council conclusions (Oct ‘21) • Heads of State Versailles Declaration (March’ 22); EUCO debates & conclusions (March, May and June ’22) • REPowerEU Communication (March ‘22) and Plan (May ‘22), with e.g.: • EU Save Energy Communication, • EU solar strategy, action on permitting, • Communication on Short-Term Energy Market Interventions and Long-term Improvements to the Electricity Market Design • EU Energy Platform • State aid temporary framework (March and July ‘22) EU response on demand, supply, prices and diversification (1/2)
- 20. • Legislative initiatives: • Storage Regulation of 29 June 2022: 80%/90% target, (co-decided with EP) • Regulation on Coordinated Demand Reduction Measures for Gas of 5 August 2022: EU alert (Art.122 TFEU) • Commission’s ‘Save gas for a safe winter’ Communication with Guidelines on a European Gas Demand Reduction Plan, July 22 • Regular exchanges with Member States (Coreper, DGs for Energy), with market operators (electricity, gas and oil coordination groups) and in regional groups; • Regular information to the European Parliament /ITRE Committee • Memoranda of understanding with Azerbaijan, Israel and Egypt and Joint Presidential statement with the US EU response on demand, supply, prices and diversification (2/2)
- 21. EU’s gas consumption 08.2021-03.2022 reduced by -3% compared to an average of last 5 years (from 303 bcm to 294 bcm). In the EU, a significant reduction (exceeding the 15% target) is observed since March 2022 (21 bcm in May 2022 compared to 26.9 in May 2021 equivalent to -22% reduction). Demand reduction – trajectory Source: Eurostat Gas consumption & 15% reduction target -40% -30% -20% -10% 0% 10% 20% 30% 0 10 20 30 40 50 60 70 80 Demand reduction (%) Observed Inland Consumption (bcm) Demand reduction per Member States Last 5 Winters average (Aug-Mar) Winter 2021/2022 (Aug-Mar) Demand change
- 22. 13-17 GW for wind power generation New RES installed capacity Sources: IEA, BNEF, WindEurope, SolarPower Europe According to estimates, new installed capacity in 2022 for renewable energy sources generation in the EU is estimated to be around: 26-31 GW for solar power generation 1 GW for other renewables power generation
- 23. Electricity Market • Possible emergency electricity market instrument to mitigate the impact of the crisis • Developing a robust reform of the market design • Subject to a full impact assessment of all options to improve the functioning of the electricity market • a large public consultation to be launched in Autumn 2022 • the Impact Assessment to be finalised in Spring 2023, so that the proposal could be ready in Q3 2023. • Nuclear • Work ongoing with the CZ PCY with stakeholders (MS, national nuclear regulators, operators and industry) to establish a roadmap for diversification
- 24. Gas Market • Assessing options to address prices • Financial markets (TTF) • Upgrading SoS legal architecture to ensure quick operationalisation of measures • Demand reduction – implementation • Bilateral discussions being conducted between MS and the Commission. • Update of National Emergency Plans by 31 October which contain demand reduction measures • Reporting of figures by Member States by 15 October
- 25. • Commission supportive of Member States in addressing challenges • Recognition of importance of helping middle income households and SME • Need to support demand reduction also from households (combine support and incentive, e.g. quantity rebates) – but protect most vulnerable • Future proof market design • Better consumer protection • More focus on demand response and active customers Consumers
- 26. • Proposal for a Council Regulation on an emergency intervention to address high energy prices (15/09/2022) • Tackle dramatic price rises • Ease the pressure they are putting on households and businesses • Should apply no later than 1 December 2022 and until 31 March 2023 • review of the electricity emergency tool by 28 February 2023 • Combination demand reduction overall (10%) + peak price hours (5%) • Cap for inframarginal technologies: above 180€/MWh • Redistribute up to €117 billion a year to end-users (private / commercial) • 1 year temporary solidarity contribution: oil, gas, coal and refinery sectors (€25 billion) Consumers
- 27. Gas demand aggregation and/for purchasing & negotiations Leverage EU’s weight to attract reliable supplies from global markets Setting a framework for cooperation Protocols, letters of intent or Memoranda of Understanding (EC and MS) Efficient usage of EU’s gas infrastructure Maximise LNG absorption, ensure security of supply and storage filling Gas Supply - EU Energy Platform EU Energy Platform - Diversification and security of gas supply Regional Groups – diversification with MS
- 28. • Established by Commission’s Decision (EU) 2022/589 of 6 April 2022 • Members (policy and decision-makers) are from energy ministries but not exclusively. • A platform to exchange information, experiences, best practices and expertise and ensure coordination between the Commission and Member States, also in relation to their NECPs and related strategies. • 2 informal meetings (16 Nov 2021, 2 February 2022). • 1st formal meeting (13 July 2022) Energy Poverty and Vulnerable Consumer Coordination Group
- 29. • Set up in early 2021 by the Commission. • Replaces earlier Energy Poverty Observatory and assumes and further expands its functions. • Main role: technical assistance to municipalities and other local actors in designing concrete programmes to address energy poverty (24 proposals representing 35 municipalities across Europe in the first call). • Offers basic online training on energy poverty. Energy Poverty Advisory Hub
- 30. Thank you! Pablo Jacome Alvarez, Socio-Economic Analyst, EMPL.F.3, pablo.jacome-alvarez@ec.europa.eu
Notas do Editor
- As it will be well know, our guiding compass at the European level for employment and social policy is the European Pillar of Social Rights. In 2017, the Pillar was proclaimed by heads of state and government jointly with social partners. It sets out 20 key principles, which serve as guidance towards a strong social Europe that is fair, inclusive and full of opportunity in the 21st century. Among these principles, number 20 is of particular relevance for energy poverty, as it aims at ensuring that everyone has the right to access essential services of good quality, including energy and transport among others. Support for access to such services shall be available for those in need. UN Sustainable Development Goal number 7 (SDG7) also calls for ensuring access to affordable, reliable, sustainable, and modern energy for all. To materialize the principle number 20 of the EPSR into concrete actions, the European Pillar of Social Rights Action Plan was developed, setting Headline targets for the EU to react by 2030. The Porto Social Summit in May 2021 was also an occasion to rally forces to renew, at the highest political level, the commitment to implement the Social Pillar. Action Plan: reduce people affected by poverty or social exclusion by at least 15 million by 2030;
- The urgency of climate action is of course well known, too. The IPCC report, published in February 2022, provides a dire warning of the consequences of inaction. It corroborates that climate change is already disrupting nature and affecting the lives of billions of people around the world. Key risks for Europe, with most becoming more severe at 2°C global warming level, include mortality and morbidity; heat and draught affecting crops; water scarcity; and flooding and see level rise. Poor households and marginalized groups in Europe are affected more strongly than other social groups. So no action against climate change is not an option. This remains the case also in turbulent times of military conflict and inflation. That’s our starting point.
- The European Green Deal is an encompassing programme for the EU’s climate action. Climate Law: climate neutrality and reduce emissions by 55% by 2030 in the EU. Climate change and environmental degradation are an existential threat to Europe and the world. Greenhouse gas emissions need to be urgently reduced for the EU to reach climate neutrality by 2050. The EU's commitment to reduce its net greenhouse gas emissions by at least 55% by 2030 was communicated to the UNFCCC in December 2020 as the EU's contribution to meeting the goals of the Paris Agreement. I will shortly present its main objectives but would like to point out already at the outset that fairness and solidarity are defining principles of the European Green Deal. Our goal is to realize the opportunities of the green transition, while at the same time ensuring that no one is left behind. People and regions facing the greatest challenges are at the heart of this commitment. Vice-President Timmermanns gave a clear signal of commitment by stating that “it must be a just transition or there will just be no transition.” Reflected in the Commission's policy proposals: Fit for 55 package presented in July 2021 President Von der Leyen: combine the reduction of emissions, with measures to preserve nature, and to put jobs and social balance at the heart of this transformation.
- The latest two instalments of the European Green Deal are the two ‘Fit-for-55’ packages, published by the Commission in July and in December 2021. The EU is committed to an ambitious greenhouse gas reduction pathway, mainly through emission cuts in the energy sector, industry and transport, while maintaining economic growth, also stressing the need to integrate the goal of mitigating energy poverty and support a just energy transition for all (‘leaving no one behind’). As shown in the Commission’s note for this meeting, social aspects are incorporated in the design of climate and energy policy to some extent. As this slide shows, the “Fit for 55” package of 14 July includes proposals covering a wide range of areas and sectors. They can broadly be grouped into: (1) pricing measures to align incentives, (2) target setting measures, (3) standards and rules; and (4) support measures. Some of the main elements mentioned before and with repercussions expected on energy poverty relate to putting a price on carbon emissions, through an extended emissions trading system, as well as energy taxes. Sectoral policy initiatives cover renewables, energy efficiency, buildings, as well as cars and vans, as shown in this and the following slide. I will not go into details, but let me give some examples how social fairness is already incorporated by design. The Energy Taxation Directive offers possibilities for exempting vulnerable households temporarily from energy taxes. The Energy Efficiency Directive stimulates energy savings, which can alleviate energy poverty. The new emission standards send a clear signal to the EU industry to invest, and provide planning security for producers, workers and consumers. The same applies to rules on the infrastructure for alternative fuels. The Commission also proposed to establish a Social Climate Fund, as pricing measures like emissions trading have regressive distributional effects. It is proposed that the new Fund would use 25% of the additional revenues from introducing emissions trading to road transport and buildings. This amounts to EUR 72.2 billion for the period 2025-2032. The Fund would address the social impact on vulnerable households, transport users and micro-enterprises. It would provide for direct income support and investments that reduce reliance on fossil fuels, for example to decarbonise heating and cooling.
- In mid-December, the Commission adopted a second set of Green Deal proposals, which included a series of additional proposals on mobility, energy (gas markets), the environment and on the fair transition in specific. To give another example of social aspects: The revision of the Energy Performance of Buildings Directive (EPBD) foresees a prioritisation of financial incentives for vulnerable customers, people affected by energy poverty and social housing. It also tackles the main non-economic barriers to renovations, such as owner-tenant settings and co-ownership structures. As part of this December package, the Commission also proposed a Council Recommendation on ensuring a fair transition towards climate neutrality. The Recommendation aims to encourage Member States to: Fully exploit the benefits and opportunities of the green transition, while fairly spreading the costs. This is also essential for ensuring public support for the green transition. The proposal encourages Member States to put in place policy packages that integrate employment, skills and social policies with climate, energy, transport, environmental and other green transition policies. The focus is supporting people and households most affected by the transition. Member States are also encouraged to pursue a whole-of-economy approach, strengthen the data and evidence base, and make optimal use of public and private funding to deliver a fair green transition.
- As part of the December ‘Fit for 55’ package, the Council has adopted on 16/06/2022 a Recommendation on ensuring a fair transition towards climate neutrality. We are happy to say that the Recommendation on ensuring a fair transition towards climate neutrality was unanimously adopted last Thursday by the Employment and Social Affairs Ministers in the Council. This proposal sets out comprehensive and concrete guidance to help Member States deliver policy packages that ensure the green transition is fair and leaves no one behind, also in light of the REPowerEU Plan to achieve energy independence from Russian fossil fuels as soon as possible. The Recommendation addresses in particular the employment, skills and social aspects of the transition in line with the European Pillar of Social Rights. With this adoption, Member States commit to devise and implement, in close cooperation with social partners, dedicated policy packages, pursue an inclusive whole-of-society approach, strengthen data and evidence to inform policies, and optimally use public and private funding, also by deploying adequate national resources and drawing on available instruments at the EU level. Policies under this common framework should pay particular attention to the needs of the people and households that could be most affected during the transition, in particular those already in vulnerable situations. On energy poverty specifically, the recommendation (number 7) encourages Member States: To ensure access to affordable essential services, including energy and transport, and housing for people and households most affected by the green transition, in particular those in vulnerable situations and those in regions facing transition challenges, Member States are encouraged to consider the following measures: Prevent and alleviate energy poverty by promoting and implementing energy efficiency improvement measures, including public and private investments in dwellings to stimulate renovations, including in the social housing sector . To this end, provide well-designed […] incentives, grants and loans, together with related advice, also to micro, small and medium-sized enterprises, while paying due attention to incentives, in particular among owners and tenants, and the evolution of housing costs, notably for households in vulnerable situations. The Commission will now will focus on monitoring its implementation by Member States, as appropriate in the context of the European Semester, and will continue to actively engage with key stakeholders. Our follow-up actions will also focus on strengthening the evidence-base in close cooperation with Member States, further supporting data collection, analysis and foresight, for instance on energy and transport poverty as well as ‘green jobs’..
- Challenges to measure energy poverty Energy poverty is a multi-dimensional phenomenon that results from a mix of low levels of income, high (or too low) expenditure on energy and other factors related to energy efficiency, such as poor building efficiency standards, low energy efficiency of appliances as well... Being a multi-dimensional phenomenon, energy poverty cannot be easily captured by a single indicator. Various indicators have been developed, each of them focuses on a specific dimension and should be viewed and used in combination with others. Ongoing discussions on energy poverty Several Member States have proposed definitions of energy poverty (with some clear distinctions between northern and southern approach). Firstly is important to note that the Electricity Directive recast, from 2019, includes in its article 29 that “Member States, When assessing the number of households in energy poverty (…) shall establish and publish a set of criteria, which may include low income, high expenditure of disposable income on energy and poor energy efficiency.” It also includes that “The Commission shall provide guidance on the definition of ‘significant number of households in energy poverty’ in this context”. We will talk about this guidance later during the presentation. Last week, the European Council adopted a recommendation proposed by the European Commission on ensuring a fair transition towards climate neutrality. In that text, a definition of energy poverty is included, which you can read on the screen. This definition (‘energy poverty’ means a household’s lack of access to essential energy services that underpin a decent standard of living and health, including adequate warmth, cooling, lighting, and energy to power appliances, in the relevant national context, existing social policy and other relevant policies. This text is under considerations at the European Parliament and the Council of the EU. ) was proposed in July 2021 as part of the Energy Efficiency Directive recast. The negotiations on the text of the EED are still on-going, but the definition included in the rec is adopted by all MS, and even if not legally binding, we consider it to be an important development in the subject. For instance, the European Parliament recently proposed a definition (January 2022): “households in the lowest income deciles whose energy costs exceed twice the median ratio between energy costs and disposable income after deduction of housing costs”. Indicators Being a multi-dimensional phenomenon, energy poverty cannot be easily captured by a single indicator. Various indicators have been developed, each of them focuses on a specific dimension and should be viewed and used in combination with others.
- The Toolbox presented by the Commission in October 2021 was designed to allow a co-ordinated approach to protect those most at risk and set out medium-term measures for a decarbonised and resilient energy system. On 8 March 2022, the REPowerEU Communication outlined a series of measures to strengthen the Toolbox to respond to rising energy prices. The Commission undertook to investigate all possible emergency measures to limit the contagion effect of gas prices in electricity prices and assess options to optimise the electricity market design. The Commission's ‘Energy Prices Toolbox' from last October has helped Member States to mitigate the impact of high prices on vulnerable consumers and it remains an important framework for national measures. On 8 March, the Commission presented additional guidance to Member States, confirming the possibility to regulate prices for end consumers in exceptional circumstances, and setting out how Member States can redistribute revenue from high energy sector profits and emissions trading to consumers. 71 million Europeans have benefitted! Russia’s invasion of Ukraine has been a stark reminder of Europe’s strategic dependence on fossil fuel (gas, oil and coal) imports from third countries. Based on the Commission’s communications, EU leaders agreed in Versailles on 10-11 March to phase out the Europe’s dependency on Russian energy imports as soon as possible. Member States must ensure that the underground gas storage infrastructures in its territory are filled up to at least 80% of their capacity at Member State level by 1 November 2022, rising to 90% for the following years. Not FF55 third package More than management of high prices: Policy interventions at the energy market in the context of Russia’s aggression against Ukraine, accelerating the European Green Deal; including introduction of potential emergency measures, e.g. EU wide price caps, coordinated gas curtailment (in MS with high supply at benefit of MS with low supply), redistribution of windfall gains and congestion rents
- The Toolbox presented by the Commission in October 2021 was designed to allow a co-ordinated approach to protect those most at risk and set out medium-term measures for a decarbonised and resilient energy system. On 8 March 2022, the REPowerEU Communication outlined a series of measures to strengthen the Toolbox to respond to rising energy prices. The Commission undertook to investigate all possible emergency measures to limit the contagion effect of gas prices in electricity prices and assess options to optimise the electricity market design. The Commission's ‘Energy Prices Toolbox' from last October has helped Member States to mitigate the impact of high prices on vulnerable consumers and it remains an important framework for national measures. On 8 March, the Commission presented additional guidance to Member States, confirming the possibility to regulate prices for end consumers in exceptional circumstances, and setting out how Member States can redistribute revenue from high energy sector profits and emissions trading to consumers. 71 million Europeans have benefitted! Russia’s invasion of Ukraine has been a stark reminder of Europe’s strategic dependence on fossil fuel (gas, oil and coal) imports from third countries. Based on the Commission’s communications, EU leaders agreed in Versailles on 10-11 March to phase out the Europe’s dependency on Russian energy imports as soon as possible. Member States must ensure that the underground gas storage infrastructures in its territory are filled up to at least 80% of their capacity at Member State level by 1 November 2022, rising to 90% for the following years. Not FF55 third package More than management of high prices: Policy interventions at the energy market in the context of Russia’s aggression against Ukraine, accelerating the European Green Deal; including introduction of potential emergency measures, e.g. EU wide price caps, coordinated gas curtailment (in MS with high supply at benefit of MS with low supply), redistribution of windfall gains and congestion rents