The climate and renewable energy – (CARE) Package of the EU, 20:20:20 by 2020

The Climate and Renewable Energy Package is intended to meet the EU's 2020 climate goals to reduce greenhouse- gas emissions by 20% below 1990 levels and boost the share of renewables in the total energy mix to 20% by the same date.

The 'package' is composed of six measures. The revision of the EU's flagship emissions trading scheme will enter into force in 2013, obliging power installations to buy all their emissions allowances at auction to correct the deficiencies of the previous scheme, in which free allocations resulted in massive windfall profits. For other ETS sectors, auctioning will be gradually phased in, with 20% of emissions permits bought at auction by 2013 and 70% by 2020. Full auctioning will not kick in before 2027. Moreover, member states with significant coal-based production negotiated substantial derogations to their industries that are deemed to be at risk of 'carbon leakage', that is, reallocation to third countries where environmental protection laws are less strict.

The package sets binding renewable targets for Member States including 10 e% general target for renewable energy in transport sector. Biofuels shall be used towards the target only if they fulfil sustainability criteria. The fuel quality directive provides another incentive for low-carbon biofuels by setting an obligation of fuel suppliers to reduce greenhouse gas intensity of the fuel pool.

The package also establishes a regulatory framework for the capture and underground storage of CO2 to help support this new technology before it becomes commercially viable.

Ilona Vári