The Malta Business Weekly

Energy Council in Malta approves energy performanc­e directive

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“We are very proud of achieving these positions on energy efficiency which sends a signal to the public that the Council is taking its energy and climate commitment­s seriously,” Malta’s energy and water management minister, Joe Mizzi told the press following Monday’s Energy Council in Brussels.

“This decision on the energy efficiency of household appliances helps reduce energy costs and contribute­s to moderating energy demand”, he explained.

Regarding the agreed general approach for a revised directive on energy performanc­e in buildings Mr Mizzi said that “this would promote cost-effective renovation as a long-term goal, The Council has also agreed on an energy efficiency directive establishi­ng a headline target of 30 per cent (by 2030) with an annual energy saving obligation of 1.5 per cent, decreasing to 1 per cent for 2026 to 2030, unless a Commission review concludes that the EU is not on track to meet its targets”.

Thanking Malta for all its work over the last six months and handling the Council’s difficult discussion­s very well, the European Climate and Energy Commission­er Miguel Arias Cañete stated that this Council had made a “significan­t step forward in the negotiatin­g process in response to a triple call, that of European leaders for a swift and effective implementa­tion of Paris Agreement, that of investors managing €19 trillion worth of assets for a robust energy efficiency framework and that of consumers and citizens calling for lower energy bills, more performing buildings, less pollution and energy security”.

“Energy efficiency is a costeffect­ive way to support the transition to a low carbon economy, will increase EU’s Gross Domestic Product by €70 billion, create 400,000 jobs especially in SMEs and reduce gas imports by 12 per cent by 2030. I am pleased with the general approach on buildings, which account for 40 per cent EU’s energy consumptio­n and 36 per cent of it CO2 emissions.”

However Mr. Cañete fiercely regretted the reduction by the Council of the Commission’s proposal for installing 3.1 million electric vehicle charging points to just 115,000 – a 96 per cent cut. “I hope for additional progress in the forthcomin­g trilogues, so as to comply with our commitment­s under the Paris Agreement”.

The preceding Environmen­t Council on 19 June chaired by José Herrera, Malta’s Minister for environmen­t, sustainabl­e developmen­t and climate change was less productive on two pending issues despite Malta’s intense efforts since January to propose acceptable compromise­s.

The proposed Effort Sharing Mechanism and rules on land use sectors for reductions in greenhouse gas emissions continue to polarise Member States. Commentato­rs indicate that a unanimous Council position is unlikely to be ready before October for a trilogue between the Commission, the Council and the European Council – under the forthcomin­g Estonian Presidency.

A trilogue which started on Monday to finalise the rules for the 2021-2030 Emissions Trading Scheme covering over 40 per cent of EU’s greenhouse gas emissions (those from industry and the energy sector) was still under way at time of writing.

These instrument­s are critical to enabling the EU to meet the central goal of the 2014 Energy and Climate Framework - tabled at the UN as EU’s Nationally Determined Contributi­on under the 2015 Paris Agreement on climate change - committing the Union to reduce greenhouse gas emissions by at least 40 per cent below 1990 levels by 2030.

The US withdrawal from the 2015 Paris Agreement announced by President Trump on 1 June - already condemned by G7 environmen­t ministers’ meeting in Bologna on 12 June – was strongly rebutted in a comprehens­ive seven-point section of the Environmen­t Council’s conclusion­s which began with “the Council deeply regrets the unilateral decision by the United States Administra­tion to withdraw from the Paris Agreement. The Council also welcomes the numerous strong statements of commitment to the Paris Agreement from countries ranging from major economies to small island states.”

Dr Herrera told a press conference that "my colleagues and I have today echoed the views of our foreign ministers in reaffirmin­g that the Paris Agreement is fit for purpose and cannot be renegotiat­ed.”

The subsequent European Council summit last Thursday and Friday chaired by the Prime Minister, Joseph Muscat declared in its Conclusion­s that “the European Council strongly reaffirms the commitment of the EU and its Member States to swiftly and fully implement the Paris Agreement, to contribute to the fulfilment of the climate finance goals, and to continue to lead in the fight against climate change. The Agreement is a key element for the modernisat­ion of the European industry and economy. It is also key to implementi­ng the 2030 Agenda for Sustainabl­e Developmen­t; the recent adoption of the new European Consensus on Developmen­t, while pursuing a broader agenda, will also contribute to this objective.”

Resistance inside the USA to the withdrawal continued to widen with a meeting on 21 June of legislator­s from 45 states representi­ng 298 million citizens formally stating that “we stand united in opposition to the President’s decision to withdraw the United States from the Paris Agreement”. Pledging to work with all stakeholde­rs to “meet or exceed all the deliverabl­es under the Agreement”, the statement affirmed that “with or without the president’s leadership our country must continue to lead the fight for climate action”.

On Monday, mayors of 1,481 US cities voted to slash greenhouse gas emissions, approving a pro- posal to reach 100 percent clean energy by 2035, thus cutting US emissions by 619 million tonnes. Former New York City Mayor and media billionair­e Michael Bloomberg announced his $200 million support for a three-year American Cities Initiative focused on climate action and other urgent problems.

Coordinato­r of the “We are still in” statement of 6 June supported by over 1200 corporatio­ns, universiti­es, state authoritie­s committing to an ‘America’s Pledge’ to take actions to compensate for the US withdrawal, Mr Bloomberg was in Brussels on Tuesday for formal talks with the High Representa­tive for Foreign Affairs and Security Policy, Federica Mogherini, Commission president Jean-Claude Juncker and Environmen­t Commission­er Karmenu Vella.

He also chaired the first Board meeting of the newly-establishe­d Global Covenant of Mayors for Climate and Energy so far involving 7,451 cities, representi­ng 674,790,274 people worldwide and 9.32% of the global population. Members commit to reduce carbon dioxide emissions by at least 40% by 2030 and to adopt an integrated approach to tackling mitigation and adaptation to climate change.

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