Archive:Sustainable development - climate change and energy

This Statistics Explained article is outdated and has been archived - for recent articles on sustainable development indicators see here.

Data from July 2015. Most recent data: Further Eurostat information, Database.

This article provides an overview of statistical data on sustainable development in the area of climate change and energy. It is based on the set of sustainable development indicators the European Union (EU) agreed upon for monitoring its sustainable development strategy.

This article is part of a set of statistical articles for monitoring sustainable development, which are based on the Eurostat publication 'Sustainable development in the European Union - 2015 monitoring report of the EU sustainable development strategy'. The report is published every two years and provides an overview of progress towards the goals and objectives set in the EU sustainable development strategy.

Table 1 summarises the state of affairs in the area of climate change and energy. Quantitative rules, applied consistently across indicators and visualised through weather symbols, provide a relative assessment of whether Europe is moving in the right direction and at a sufficient pace, given the objectives and targets defined in the strategy.

Table 1: Evaluation of changes in the climate change and energy theme (EU-28)

Overview of the main changes

The EU has made steady progress towards its climate and energy targets. Greenhouse gas (GHG) emissions have decreased both in the short term since 2008 and over the long run since 2000. In 2020, the EU is likely to surpass its 20 % reduction target compared with 1990 levels. While Primary energy consumption has risen in the past, reaching a peak in 2006, the tendency has reversed in recent years and the short-term trend is therefore clearly positive. Some of the favourable trend can be attributed to the economic crisis, with a continuous economic downturn in some EU countries driving down industrial production, transport volumes and energy demand between 2007 and 2013 (with the exception of a limited rebound in 2010). Therefore, further action will be needed to continue improving energy efficiency up to 2020, particularly to avoid a bounce back in energy demand that is expected once economic growth picks up again.

Other indicators in the ‘climate change and energy’ theme also show positive trends — at least over the short-term — but will require additional effort in the future. For example, renewable energy provides a growing share of the EU’s energy consumption. At the same time, the economic difficulties together with policy changes have recently led to a slump in renewable energy investments after years of rapid growth. Despite these challenges, the recent progress demonstrates that EU and national climate and energy policies have an impact on the energy system. Improvements in energy efficiency and higher shares of renewables have lowered carbon emissions per unit of energy and per unit of gross domestic product (GDP). These trends have helped to stabilise the level of energy dependence and contributed to the sizable reduction in emissions between 2005 and 2012.

Key trends in climate change and energy

Greenhouse gas emissions and primary energy consumption are nearing 2020 targets

In 2012, EU greenhouse gas emissions, including emissions from international aviation, were down by 17.9 % compared with 1990 levels. This has put the EU within reach of meeting the Europe 2020 target of reducing GHG emissions by 20 % by 2020 eight years ahead of schedule. With average emissions 11.8 % below base-year levels in the period 2008–2012, the EU-15 has also overachieved its commitment under the Kyoto Protocol to reach an average emission reduction of 8 % in 2008–2012 compared with the base year .

All sectors, except for transport and international aviation and shipping, contributed to the reductions between 1990 and 2012. While economic restructuring in eastern European countries and a switch from coal to natural gas primarily drove emission reductions in the 1990s, recent progress can partly be attributed to energy efficiency improvements and the expansion of renewable energies. Persistent low economic growth and a shift from industry to services also played a role. Despite the decreasing trend, projections show that much steeper annual emission reductions will be required to achieve the EU’s 2030 target of cutting GHG emissions by 40 % (Council of the European Union, 2014) as well the long-term objective of reaching 80 % to 95 % GHG emission reductions by 2050 (both compared with 1990 levels).

With the exception of a rebound from crisis levels in 2010, primary energy consumption has been continuously falling since 2006. In 2013, it fell below 1990 levels for the first time since 1995 and was 8.3 % lower than in 2005 . If the average annual decline of 1.5 % achieved between 2008 and 2013 can be maintained, the EU would overachieve its 2020 target of reducing energy consumption by 20 % compared with the ‘business as usual’ projections dating from 2007. Stricter efficiency standards for cars, buildings and other energy consuming devices appear to have played a role in driving down energy use and more efficient power plants and higher shares of renewables also had a positive effect. However, low economic performance also contributed to the trend.

Global average temperature keeps rising

EU GHG emissions represent about 10 % of global emissions. Steep rises in emissions in other parts of the world, in particular China, have largely overcompensated GHG emission reductions that were achieved in the EU since 1990 and the United States since 2005. Together with past emissions, these increases push up GHG concentrations in the atmosphere. Although there is a time lag between emissions and temperature increases, the continuous upward trend in average global surface temperature is unequivocal. Together with 2010, 2005 and 1998, the year 2014 counts among the warmest years on record.

Steady expansion of renewables but energy dependence remains high

The EU energy sector shows positive trends on a range of indicators. Between 1990 and 2012, the EU has achieved absolute decoupling of GHG emissions from gross inland energy consumption. Compared with 1990, the EU emitted 20.1 % less greenhouse gas for each unit of energy in 2012. While the dominant driver in the 1990s was the switch from coal to natural gas, the strong growth of renewable energy generation has contributed to the reduction in emission intensity between 2000 and 2012.

In 2013, renewables provided 15 % of gross final energy consumption in the EU, up from 8.3 % in 2004. The steady growth was possible due to effective support schemes, shrinking costs and lower energy consumption which statistically increases the renewable energy share. The annual growth rate observed over the past decade puts the EU on track to achieve its 2020 target of sourcing 20 % of all final energy consumption from renewables. However, a recent investment slump due to policy uncertainty and an unfavourable economic climate points to the need to intensify efforts to promote renewable energy expansion in all sectors.

The expansion of renewable capacity in the power sector has been dynamic. Gross electricity generated from renewable sources more than doubled between 2000 and 2013 and provided more than a quarter of all electricity in 2013. Hydro power still provided 43.4 % of all renewable electricity in 2013, but it is losing in importance relative to wind power (27.5%), biomass and biogas (16.2 %) and solar energy (10 %).

Renewables provided 5.4 % of all energy in transport in 2013, up from 1 % in 2004. After rapid growth up to 2010, the share of renewable energy in transport grew at a slower pace over the following three years. This slowdown can partly be attributed to the fact that not all Member States have fully transposed the Renewable Energy Directive’s sustainability criteria for biofuels and because only certified biofuels have been counted towards the indicator since 2010.

The EU still relies heavily on energy imports from non-EU countries, which provided 53.2 % of all energy consumed in 2013. However, after increasing steadily since 2002, the share of energy imports peaked in 2008 and has since declined slightly. Greater use of domestic renewables and lower energy demand explain this stabilisation.

Main statistical findings

Headline indicator

Greenhouse gas emissions

EU greenhouse gas (GHG) emissions have been declining continuously since 2006 due to progress in energy efficiency, a fuel switch from oil and coal to natural gas and renewables, and the economic slowdown. In 2012, GHG emissions had fallen by 17.9 % compared with 1990 levels, putting the EU on track to surpassing its 2020 GHG emissions target.

Figure 1: Greenhouse gas emissions, EU-28, 1990–2012 (index 1990 = 100) - Source: European Environment Agency, Eurostat (online data code: (tsdcc100))

Figure 2: Greenhouse gas emissions, by country, 2012 (index 1990 = 100) - Source: European Environment Agency, Eurostat (online data code: (tsdcc100))

Figure 3: Greenhouse gas emissions and projections, 1990–2050 (million tonnes of CO2 equivalents) - Source: European Environment Agency

Figure 4: Global CO2 emissions from fuel combustion, 1990, 2000 and 2012 (million tonnes of CO2) - Source: International Energy Agency (IEA)

In 2012, EU greenhouse gas emissions, accounting for the total man-made emissions of the six gases of the Kyoto basket, were down by 17.9 % compared with 1990 levels. This is an absolute reduction of 1 019 million tonnes of CO2 equivalents. This figure includes international aviation. Without it, the reduction is 19.2 %, as reported by the European Environment Agency EEA, 2014, p.6). While emissions have decreased at an average annual rate of only 0.9 % over the long term since 2000, emission cuts sped up substantially over the shorter term, since 2007, when they declined by 2.3 % per year on average.

• The EU-15 have overachieved their joint Kyoto target

Under the Kyoto Protocol, the EU-15 committed to cut their combined GHG emissions (without international aviation) by 8 % compared with 1990 levels. The target levels were to be achieved in the period 2008 to 2012. However, the country group surpassed its obligation with an 11.8 % reduction in this period.

• National and EU policies have played a role in emission reductions, together with economic and other factors

Lower carbon emissions per unit of energy used and lower energy input for each unit of GDP have been key drivers of the downward trend in emissions between 2005 and 2012. National and EU policies have played a role in initiating these changes, in particular the success in promoting renewable energies through effective support schemes in the power, heating and transport sectors. With respect to energy efficiency, stricter standards for building insulation, appliances or car emissions also played a role, although the exact effects of each policy cannot be calculated. Lower agriculture and waste emissions reflect the impacts of the Nitrates and Landfill Directive and changes in the Common Agriculture Policy (EEA,2014, p.4f). The economic downturn since 2008 has also played a role in reducing emissions by lowering production and transport volumes and the associated energy use. However, current EEA analysis indicates that the combined effects of policies and other factors are at least as relevant in explaining the observed trends as the change in GDP. Moreover, emissions have fallen by a greater extent when GDP has been sinking than they have risen when GDP has been growing, showing an absolute decoupling of economic growth and GHG emissions between 1990 and 2012 (EEA,2014, p.4f)]. In contrast to this recent trend, the majority of emission reductions in the 1990s and early 2000s resulted from external factors. Drivers included the economic restructuring in eastern Europe, a shift from heavy manufacturing industries to more service-based economies and fuel switches from oil and coal to natural gas as a result of electricity market liberalisation. Significant reductions were also made in the waste sector by using waste treatment processes with a lower carbon footprint. In the agricultural sector, declining numbers of livestock and less nitrogenous fertilisers helped to cut emissions (Eurostat, 2011, p.2).

• How greenhouse gas emissions vary across Member States

A large majority of Member States reduced their national GHG emissions between 1990 and 2012. Reductions are highest in eastern European countries, with the Baltic countries and Romania leading with cuts of more than 50 %. By contrast, emissions increased in eight Member States as well as in Norway and Iceland.

• Projections show that steeper emissions cuts are needed to reach long-term objectives

The EEA’s assessment of Member States’ projections indicates that by 2020 the EU’s GHG emissions are expected to decrease by 21 % based on existing policy measures and may decrease by 24 % with additional measures (excluding international aviation). Due to recently adopted EU policy instruments actual emission reductions might even surpass 24 % by 2020 (EEA, 2014, p.9). Despite this favourable development, average annual emission reductions between 2000 and 2012 are not enough to put the EU on a path to meeting its medium-term and long-term objectives. Both the 2030 target of reducing GHG emissions by at least 40 % (Council of the European Union, 2014) and the long-term commitment (Council of the European Union, 2009) to cut emissions by 80–95 % by 2050 compared with 1990 levels will require steeper annual reductions (EEA, 2015).

• EU trends in climate change and energy compared with other countries in the world

While EU emissions have fallen since 1990, global emissions of CO₂, the most significant greenhouse gas (IPCC, 2013), are increasing. Between 1990 and 2012 they have risen by more than 51 % and the increase has become steeper over time. While global CO2 emissions rose at an average annual rate of 1.3 % between 1990 and 2000, the rate nearly doubled to 2.4 % between 2000 and 2012. Most of the increase has taken place in emerging economies. Emissions growth was strongest in China, both in relative and in absolute terms. The country’s annual CO2 emissions more than tripled between 1990 and 2012. Although at a slower pace, emissions in the rest of Asia, and the Americas excluding the United States also grew between 1990 and 2012, by 189 % and 69 % respectively. By contrast, CO2 emissions in the United States peaked in 2005 and are 11 % below 2000 levels in 2012. As a result of these trends, the EU-28’s share of global emissions has been shrinking, from almost a fifth in 1990 to 11 % in 2012.

Climate change

Greenhouse gas emissions by sector

Emissions fell in all sectors except international transport between 2000 and 2012. Causes include effective climate policies, structural change and supressed economic activity since 2007. Based on existing measures, the EU is projected to surpass its 2020 target for reducing emissions in sectors not covered by the EU emissions trading scheme.

Figure 5: Greenhouse gas emissions by sector, EU-28 (million tonnes of CO2 equivalent) - Source: European Environment Agency, Eurostat (online data code: (tsdcc210))

Of all economic sectors, manufacturing industries and construction achieved the largest absolute reduction in GHG emissions between 2000 and 2012. Emissions in this sector fell by nearly 25 % over the entire period. The reduction is even higher, at 38.1 %, when compared with 1990 levels. Industrial processes showed similar reductions with a cut of 18.6 % between 2000 and 2012 and nearly a third since 1990. In absolute terms, the second largest reduction of 99 million tonnes of CO2 equivalent (or 6.6 %) was achieved in the energy industries, which has the largest share of total emissions. Continuous downward trends were also achieved in the waste and agricultural sectors, with emissions falling by 28.7 % and 9.7 % respectively between 2000 and 2012. The reductions can be attributed in part to climate mitigation and other policies, in particular with respect to energy efficiency, expansion of renewables and more efficient waste treatment. Economic restructuring that shifted activity from heavy industry to services, lower cement production and a decrease in livestock have also helped lower the EU’s GHG emissions .

• While transport emissions were below 2000 levels in 2012, bunker emissions continued to rise

In the overall downward trend of EU GHG emissions, the transport sector used to be the exception to the rule. However, although transport emissions were still 14.1 % above 1990 levels in 2012, the recent trend has been positive. After peaking in 2007, transport emissions fell by 9.7 % over the following five years and are now below 2000 levels. Both the increase and the recent decline can be linked to corresponding changes in the volume of passenger and freight transport, while stricter efficiency standards and the use of biofuels also played a role (EEA, 2014, p.3). Between 2011 and 2012, the decline in transport emissions was particularly strong in Member States where economic growth remained supressed (EEA, 2014, p.9). This illustrates the close correlation between the level of economic activity and transport emissions. Sustained efforts are therefore required to decouple emissions from growth to maintain the downward trend in the sector. The trend in international aviation and maritime transport resembles the trend in the national transport sector, since emissions also peaked in 2007 and declined by 12.8 % over the following five years. However, in 2012, emissions from international flights and shipping were still 11.8 % above 2000 levels and 55.6 % higher than in 1990. The sector accounted for 6.0 % of total emissions in 2012.

• The EU is on track to surpass its target for non-ETS sectors

Figure 6: Emissions from land use, land-use change and forestry (LULUCF), EU-28, 1990–2012 (million tonnes of CO2 equivalent) - Source: European Environment Agency

According to the EEA, the EU is making strong progress in reducing emissions in sectors not covered under the European Emissions Trading Scheme (EU ETS). With existing measures, the EU is projected to surpass the reduction of about 10 % in 2020 that results from the aggregation of all national targets agreed in the Effort Sharing Decision (ESD) (EEA, 2014, p.48). Progress does, however, vary between Member States. With the exception of Germany, Luxembourg and Poland, all Member States are estimated to emit less than their annual target for 2013 and some are likely to surpass it by over 15 percentage points. Fifteen countries are projected to achieve or surpass the national 2020 target using existing measures and seven Member States can ensure compliance with additional measures that are already planned. The remaining six countries need to initiate further action to what is currently planned or use flexibility mechanisms (EEA, 2014, pp.51).

• Forest management removed CO2 emissions from the atmosphere between 1990 and 2012

Land use, land-use change and forestry (LULUCF) practices can lead to additional greenhouse gas emissions, for example when forests are converted to farmland. In the EU, however, the net effect of LULUCF has been positive between 1990 and 2012. This means that newly planted forests and improved management of existing forests helped to remove GHG emissions from the atmosphere.

Global surface average temperature

Global surface temperature is rising in response to higher levels of GHGs in the atmosphere. The year 2014 was among the four warmest years on record.

Figure 7: Global annual mean temperature deviations, 1850–2014 (temperature deviation in °C, compared with 1961–1990 average) - Source: Met Office Hadley Centre and the Climatic Research Unit at the University of East Anglia, HadCRUT4

Figure 8: European annual mean temperature deviations over land areas only, 1850–2013 (temperature deviation in °C, compared with 1961–1990 average) - Source: European Environment Agency, based on Met Office Hadley Centre and the Climatic Research Unit at the University of East Anglia,HadCRUT4

Man-made GHG emissions have increased the concentration of greenhouse gases in the atmosphere, which has in turn led to a rise in surface temperature. Recordings of the combined global land and marine surface temperature show a clear upward trend. According to the most recent IPCC report, it increased by 0.85 °C between 1880 and 2012 (IPCC, 2013). Together with 2010, 2005 and 1998, the year 2014 was among the warmest years on record WMO, 2015, p.4).

The average annual temperature over the European land area has warmed more than the average global temperature. In the decade 2004–2013, the annual mean land temperature in Europe was 1.4 °C above the pre-industrial level, making it the warmest decade on record. Due to the warming, cold extremes have become less frequent and warm extremes occur more often. Since 1880 the average length of summer heat waves over Western Europe has doubled and the frequency of hot days almost tripled (EEA, 2014). In Europe and globally, the rise in temperature has already led to observable changes in ecosystems and society. Ice sheets in Greenland and Antarctica, the Arctic sea ice and mountain glaciers are shrinking and sea levels are rising at an ever faster pace (IPCC, 2013). Impacts of climate change have reduced global maize and wheat harvests and led to regional price hikes for agricultural products (IPCC, 2014, p.5). Damage from natural disasters, of which 87 % were climate related, amounted to USD 110 billion in 2014 (UN Office for Disaster Risk Reduction, 2015).

Greenhouse gas emissions intensity of energy consumption

GHG emission intensity of energy consumption has fallen both in the long term since 2000 and in the short term since 2007, and in 2012 it was 20.1 % lower than its 1990 level. A switch from coal to natural gas, more renewables and reduced production levels in heavy industry contributed to this change.

Figure 9: Greenhouse gas emissions intensity of energy consumption, EU-28, 1990–2012 (index 2000 = 100) - Source: European Environment Agency, Eurostat (online data codes: (tsdcc210), (tsdcc220) and (tsdcc320))

The greenhouse gas (GHG) intensity of energy consumption, which describes the average GHG emissions per unit of energy consumed, steadily decreased between 1990 and 2012. Both the long-term and the short-term trends are positive, with a reduction in GHG intensity of 9.2 percentage points since 2000 and 4.8 percentage points since 2007. The average rate of decline was 1.3 % in the 1990s and slowed to 0.8 % between 2000 and 2012. While the switch from coal to natural gas and the decline in industrial use of coke explains most of the change during the 1990s, the increased uptake of renewable energies contributed more strongly to the positive trend between 2000 and 2012 (see the analysis of ‘primary energy consumption’).

Headline indicator

Primary energy consumption

The EU has made substantial progress in reducing primary energy demand in the short-term since 2008, due to energy efficiency policies and lower than expected economic growth. The long-term trend since 2000 has been less favourable due to a peak in primary energy consumption in 2006. However, the decline between 2007 and 2013 has put the EU on a favourable path to meeting its 2020 target of improving energy efficiency by 20 %.

Figure 10: Primary energy consumption, EU-28, 1990–2013 (million tonnes of oil equivalent (Mtoe)) - Source: Eurostat (online data code: (tsdcc120)

Figure 11: Primary energy consumption, by country, 2008 and 2013 (index 2005 = 100) - Source: Eurostat (online data code: (tsdcc120)

Figure 12: Primary energy consumption, by fuel, EU-28, 1990–2013 (index 1990 = 100) - Source: Eurostat (online data code: (nrg_100a)

Primary energy consumption, the indicator used to assess progress towards the Europe 2020 strategy’s energy efficiency target, showed a strong upward trend between 1990 and 2006. The year 2006 marks a turning point in the indicator’s development, with primary energy consumption having experienced a remarkable decline since then. This means that a mixed long-term trend contrasts with a positive short-term trend: while primary energy demand was only 50.1 Mtoe below 2000 levels in 2013, the reduction amounted to 120.1 Mtoe between 2008 and 2013. In 2013, the EU consumed 8.3 % less primary energy than in 2005. In absolute terms, the efficiency target means that by 2020 the EU’s primary energy consumption should be reduced from the projected consumption of 1 853 Mtoe in the reference scenario to 1 483 Mtoe . Between 2008 and 2013, energy consumption decreased at an average annual rate of 1.5 % per year. If this rate can be maintained in the future, the EU would surpass its energy efficiency target by 2020.

• Reduction in primary energy demand since 2006 is partly a result of effective policies, but the economic crisis also played a role

Progress in reducing primary energy consumption between 2006 and 2013 can be partly attributed to effective energy efficiency policies, which reduced energy use of buildings, cars and industrial processes. Support for the expansion of renewable energies has also contributed to the positive trend. Many renewable energy sources are considered to have a conversion efficiency of 100 %, therefore statistically increasing the transformation efficiency in the electricity sector (EEA, 2015, p.7). However, energy efficiency policies are not the only driver. The fall in primary energy consumption also reflects the lasting effects of the economic crisis, which has lowered industrial production levels and transport volumes. As a result, energy use between 2008 and 2013 has been lower than what was originally assumed in the projections underlying the 2020 efficiency target. In 2014, the European Commission estimated that the economic downturn explains about one-third of the progress towards the energy efficiency target observed up to 2013 (European Commission, 2014). Other external factors include structural changes, mainly in the EU industry sector. The analysis underlines the need to further pursue energy efficiency measures so as to ensure that primary energy consumption will fall further when growth accelerates again (EEA, 2014, p.76-78).

• How primary energy consumption varies across Member States

All but two Member States reduced primary energy consumption between 2005 and 2013 by values ranging from 1.7 % to 28.2 %. In absolute terms, the UK, Italy and Spain achieved the highest reductions, followed by Germany and France. In Poland and Estonia, primary energy consumption went up by 6.3 % and 21.3 % respectively. In the case of Poland, the increase can be attributed to higher economic growth than the EU average (EEA, 2014, p.82).

• Solid fossil fuels and oil lose some of their share in primary energy consumption to natural gas and renewables

The fuel mix has changed substantially between 1990 and 2013. Solid fossil fuels experienced the highest reduction, with their share in primary energy consumption plummeting from 28.9 % in 1990 to 18.2 % in 2013. The reduction can be attributed to a decline in coke use for iron and steel production (EEA, 2014, p.9) as well as to the so-called ‘dash for gas’, the replacement of coal-fired power plants by gas plants. As a result, natural gas replaced solid fuels as the second most important fuel, delivering 23.8 % of all primary energy consumed in 2013. The other growing source of primary energy is renewable energy. Albeit from a small base, energy production from renewables has almost tripled since 1990 to provide 12.6 % of primary energy in 2013. With a share of 30.1 % in 2013, oil and petroleum products remain the EU’s most important fuel due to their dominant role in the transport sector, but consumption has also gone down by 14 % since 1990. The share of nuclear heat increased from 12.3 % in 1990 to 13.6 % in 2013.

Energy

Consumption of renewables

The share of renewables in gross final energy consumption has grown steadily since 2004, reaching 15.0 % in 2013. Effective national support measures and cost reductions in a burgeoning global market have made this progress possible.

Figure 13: Share of renewable energy in gross final energy consumption, EU-28, 2004–2013 (%) - Source: Eurostat (online data code: (t2020_31)

The share of renewable energy increased continuously between 2004 and 2013, reaching 15 % of gross final energy consumption in 2013. With an average annual growth rate of 6.8 % and 7.4 % respectively, both the long-term trend (since 2004) and the short-term trend (since 2008) are clearly favourable. This has put the EU well on the path to meetings its target of covering 20 % of gross final energy consumption from renewable sources by 2020 (European Commission, 2015, p.3). There are two main drivers for the increase: support schemes for renewable energy technology and shrinking costs. As a result of policies such as feed-in tariffs, grants, tax credits and quota systems, installed capacity for renewable electricity and heat generation as well as the use of renewable transport fuels has grown steadily over the past decade. In addition lower final energy consumption (see indicator ‘primary energy demand’) has also helped the EU increase its renewable energy share (European Commission, 2015, p.4). The scaling up of global production volumes and technological advances has allowed producers to substantially cut costs per unit. Photovoltaic systems have experienced the biggest plunge, with costs per kilowatt hour down by 53 % between 2010 and 2014. Electricity from onshore wind turbines also became 15 % cheaper during the same time period (McCrone, et al, 2014, p.15). As a result, the world was able to keep increasing renewable capacity in the power, heating and transport sector, although global annual investment in renewables declined for a second consecutive year in 2013, when in was 23 % below its peak in 2011 . Increasingly, wind and solar plants are being installed without subsidies in areas where conditions are favorable.

• Political and economic uncertainty led to a slump in renewable investment

While EU countries still lead global statistics on total installed renewable capacity, the EU is losing ground to China, Japan and the United States with respect to new installations. In 2014, EU investment in renewables slumped by 44 % compared with the previous year (McCrone, et al, 2014, p.12). This reflected not only lower costs but also uncertainty about the future of support mechanisms and lower investment capacity due to the persistent economic downturn in many EU countries. Policy uncertainty increases capital costs and drives producers out of Europe. This has already been observed in the solar industry in particular (REN21, 2015, p.21). In this setting, further action from Member States is required to ensure the EU remains on the target path to 2020 (European Commission, 2015, p.5).

Figure 14: Share of renewable energy in gross final energy consumption, by country, 2004 and 2013 (%) - Source: Eurostat (online data code: (t2020_31)

• How consumption of renewables varies between Member States

In 2013, the share of renewable energy in gross final energy consumption in Member States ranged from 52.1 % in Sweden to 3.6 % in Luxembourg. Differences stem from variations in the endowment with natural resources, mostly in the potential for building hydropower plants and in the availability of biomass. All Member States increased their renewable energy share between 2004 and 2013. Thirteen countries have at least doubled their share. Sweden, Bulgaria, Estonia and Lithuania have already reached their targets for 2020 and several other Member States are close to reaching theirs. Farthest from their targets are the UK, the Netherlands and France.

Electricity generation from renewables

Renewable sources provided a quarter of all electricity consumed in the EU in 2013, up from 14.3 % in 2004. After years of rapid progress thanks to effective support schemes and substantial cost reductions, unfavourable economic conditions and feed-in tariff cuts have reduced investment levels in most Member States.

Figure 15: Electricity generated from renewable sources, EU-28, 2004–2013 (% of gross electricity consumption) - Source: Eurostat (online data code: (tsdcc330)

Figure 16: Gross electricity generation from renewable sources, EU-28 1990–2013 (gigawatt hours) - Source: Eurostat (online data code: (nrg_105a)

Gross electricity generated from renewable sources almost tripled between 1990 and 2013 (+ 176.6 %), with almost three-quarters of the increase being achieved between 2000 and 2013 . The share from renewable sources in all electricity consumed increased at an average annual rate of 6.6 % over the long term since 2004. Growth has even accelerated in the shorter term period since 2008, with the average annual rate reaching + 8.4 %. For the sixth consecutive year the majority of newly added power generation capacity came from renewable sources in 2013 (REN21, 2015, p.14). By providing 25.4 % of all electricity consumed from renewable sources in 2013, the power sector is contributing to reaching the renewable energy target (see indicator ‘Consumption of renewables’). In 2012 and 2013, feed-in tariffs for new renewable electricity plants have been drastically cut in many Member States, in some cases changes also apply retroactively to existing plants. Together with the unfavourable economic climate, these changes have led to a substantial fall in investment and a loss in global market share since 2011 (McCrone, et al, 2014, p.15). Governments increasingly introduce measures such as premiums on spot market prices, competitive tenders or capacity-dependent feed-in tariffs to ensure market integration of renewable energy operators (REN21, 2015, p.76-78).

• Hydro power loses in relative importance as bioenergy, wind and solar capacity increases

Although hydro power generation increased by nearly a third between 1990 and 2013, its relative share plummeted from 94.0 % to 43.4 % over the same time frame as other renewables grew rapidly. In 2013, wind power provided 27.5 % of all renewable electricity followed by biomass and biogas (16.2 %) and solar energy (10.0 %). Small contributions came from renewable wastes (2.2 %) and geothermal energy (0.7 %). Solar and wind energy have grown fastest since 2005 due to rapid cost reductions. In some market segments, investors can now finance wind and solar plants without subsidies. However, regulation and grid infrastructure need to be adapted to enable full market and system integration.

Share of renewable energy in transport

The share of renewable energy in transport grew from 1.0 % in 2004 to 5.4 % in 2013. Due to tax credits and national requirements to blend a minimum biofuel share into conventional fuels, biofuels such as biodiesel and bioethanol provided the vast majority of all renewable energy in the transport sector.

Figure 17: Share of renewable energy in fuel consumption of transport, EU-28, 2004–2013 (%) - Source: Eurostat (online data code: (tsdcc340)

After growing rapidly between 2004 and 2010, the share of renewable energy in transport continued to rise but at a slower pace over the following three years. This slowdown can partly be attributed to the fact that not all Member States have fully transposed the Renewable Energy Directive’s sustainability criteria for biofuels and only certified biofuels are accounted for in the indicator starting from 2011 . This statistical adjustment also explains the sudden drop in 2011. The EEA estimates that in 2012 around 21 % of all renewables consumed in the EU transport sector came from uncertified biofuels (EEA, 2014, p.66). The share would therefore be higher if biofuels from countries that did not comply with sustainability requirements were included. In 2013, the share reached 5.4 %. Nonetheless, both the long-term trend (since 2004) and the short-term trend (since 2008) are favourable. The increase in renewable energy consumption in transport was mainly driven by the widespread introduction of support systems at national level. Member States use tax rebates or biofuel obligations to promote renewable energy consumption in road transport .

Energy dependence

The EU imports more than half of its energy from outside markets. In the long term since 2000 the share of energy imports increased steadily, peaking 2008. Due to lower energy demand and greater use of domestically sourced renewables, it has slightly decreased in the short term since 2008, reaching 53.2 % in 2013.

Figure 18: Energy dependence, EU-28, 1990–2013 (share of imports in total energy consumption, %) - Source: Eurostat (online data code: (tsdcc310)

The share of total energy needs in the EU that were met by imports from non-EU countries has increased by 6.5 percentage points over the long term since 2000, reaching 53.2 % in 2013. The import share is now 8.9 percentage points higher than it was in 1990. Fossil fuels make up the largest share of total energy imports. In the short term, since 2008, however, the upward trend halted. Between 2000 and 2013, the level of dependence was highest for petroleum products, but increased most for natural gas (by 16.5 percentage points). After peaking at 54.7 % in 2008, the share of imports in total energy consumption declined over the following five years, albeit at a very low average rate of 0.6 % per year.

• Lower EU oil and gas production and higher energy demand increase energy dependence

The rise in energy imports is driven by the decline of oil and gas production within the EU, mainly in the North Sea. Up until 2006, rising overall primary energy demand was an additional cause for rising imports (see indicator ‘primary energy demand’). Together with the increased usage of renewables (see indicator ‘consumption of renewables’), the decline in overall energy consumption since 2006 has helped to stabilise the EU’s dependence on energy imports.

Context

Why do we focus on climate change and energy?

Climate change is a threat to sustainable development. Higher temperatures, rising sea levels and more frequent weather extremes have already been observed in the EU and globally. After years of extensive research, the scientific community agrees that man-made GHG emissions are the dominant cause of Earth’s average temperature increases over the past 250 years (IPCC, 2014). The most recent Assessment Report of the Intergovernmental Panel on Climate Change (IPCC) projects that, depending on future levels of GHG emissions, global mean surface temperature could increase by 0.3 °C to 4.8 °C by the end of the 21st century relative to 1986–2005 (IPCC, 2014). Rapid climate change puts many coastal communities, food security, human health and ecosystems at risk and can intensify existing conflicts. To avoid such negative consequences, the international community has committed itself to limit the mean global temperature rise to 2 °C above pre-industrial levels (United Nations, 2009). Man-made GHG emissions are primarily a by-product of burning of fossil fuels in power plants, cars or homes. Farming, forest clearing and waste decaying in landfills are also sources of GHG emissions, but in the EU energy consumption is by far the largest emitter. Therefore, measures to transform the sector are at the heart of climate change mitigation efforts. Two main measures for building a sustainable energy sector are replacing fossil fuels by renewable energy sources and reducing energy consumption (European Commission, 2011). These measures can also help reduce the EU’s dependence on non-EU energy sources. The EU is the world’s largest energy importer and is exposed to the risks of supply disruptions and volatile world market prices that come with import dependence. Using less energy and generating more of it from domestic resources would cut the EU’s import bill which stood at around EUR 400 billion in 2013 (European Commission, 2015, p.2). The push towards a climate-friendly economy holds many opportunities for Europe: the demand for better green technologies can spur innovation and create jobs. By mastering new technologies such as smart grids, energy storage or electric vehicles, the EU can strengthen its exports in a growing global market. At the same time, more efficient energy use also lowers production costs, thereby increasing competiveness of EU businesses. The climate change and energy theme is linked to other areas of sustainable development in many ways. Since energy is used in virtually every economic activity, climate change and energy policies have an impact on a wide range of economic activities. A more sustainable energy sector can thus have synergies with actions covered in the areas of sustainable consumption and production and transport. For example, lower transport volumes, a modal shift from vehicles to trains and public transport or lower material consumption help reduce energy consumption and therefore GHG emissions. Climate change also plays a key role in development assistance since developing countries and poor people in particular tend to be affected most by climate change impacts. Adaptation to ongoing and expected future changes in precipitation, vegetation, diseases and extreme events is therefore a key element of poverty alleviation and economic development.

How does the EU tackle climate change and energy?

The EU Sustainable Development Strategy (EU SDS) (Council of the European Union, 2006) dedicates one of its seven key challenges to climate change and energy, with the overall objective to ‘limit climate change and its costs and negative effects to society and the environment’. The operational objectives in the EU SDS relating to climate change and energy are:

• Kyoto Protocol commitments for the EU-15 of reducing GHG emissions by 2008–12 by 8 % compared with 1990 levels (excluding emissions from land use, land-use change and forestry [LULUCF] and international aviation). Aiming for global surface average temperature not to rise by more than 2 °C compared with the pre-industrial level.
• Energy policy should be consistent with the objectives of security of supply, competitiveness and environmental sustainability. Energy policy is crucial when tackling the challenges of climate change.
• Adaptation to, and mitigation of, climate change should be integrated into all relevant European policies.

The Europe 2020 strategy (European Commission, 2010, p.11) sets three headline targets for climate and energy policy, to be reached by 2020:

• Reducing GHG emissions by 20 % compared with 1990 levels.
• Increasing the share of renewables in final energy consumption to 20 %.
• Moving towards a 20 % increase in energy efficiency.
• Additionally, the Europe 2020 strategy points out that the EU is committed to move to a 30 % reduction by 2020 compared with 1990 levels. The condition is that other developed countries commit themselves to comparable emission reductions and that developing countries contribute adequately according to their responsibilities and respective capabilities.

The 20 % emission reduction target also serves as the EU commitment under the second period of the Kyoto Protocol, which covers the period 2013–20 . The EU intends to fulfill its commitment jointly with Iceland (European Commission, 2015). In October 2014, the European Council (Council of the European Union) adopted new climate and energy targets for 2030:

• Reducing domestic GHG emissions by at least 40 % compared with 1990.
• Increasing the share of renewable energy consumption to at least 27 %.
• Improving energy efficiency by at least 27 % compared with projections of future energy consumption. The target will be reviewed by 2020, having in mind an EU level of 30 %.

The 2030 climate and energy targets are a key component of the EU’s wider Energy Union strategy adopted in February 2015. The Energy Union’s main objectives are to improve security of energy supply, to ensure that energy is affordable and to drive decarbonisation of the energy sector (European Commission, 2015).

Further reading on climate change and energy

• European Commission (2015), A Framework Strategy for a Resilient Energy Union with a Forward-Looking Climate Change Policy, COM(2015) 80 final.
• European Commission (2014), A policy framework for climate and energy in the period from 2020 to 2030, COM(2014) 15 final.
• European Commission (2014), Energy Efficiency and its contribution to energy security and the 2030. Framework for climate and energy policy, COM(2014) 520 final.
• European Commission (2015), Renewable energy progress report, COM(2015) 293 final.
• European Commission (2013), An EU Strategy on adaptation to climate change, COM(2013) 216.
• European Environment Agency (2014), Annual European Union greenhouse gas inventory 1990–2012 and inventory report 2014, Publications Office of the European Union, Luxembourg.
• European Environment Agency (2014), Trends and projections in Europe 2014: Tracking progress towards Europe’s climate and energy targets until 2020, EEA Report No 06/2014, Copenhagen.
• European Environment Agency (2014), Why did greenhouse gas emissions decrease in the EU between 1990 and 2012?, Copenhagen.
• Eurostat (2013). Energy, transport and environment indicators, 2013 edition, Publications Office of the European Union, Luxembourg.
• International Energy Agency (2014), World Energy Outlook 2014, Paris, IEA.
• IPCC (2013), Climate Change 2013: The Physical Science Basis, Contribution of Working Group I to the IPCC Fifth Assessment Report of the Intergovernmental Panel on Climate Change, Geneva, Switzerland.
• IPCC (2014), Climate Change 2014; Synthesis Report, Contribution of Working Groups I, II and III to the IPCC Fifth Assessment Report of the Intergovernmental Panel on Climate Change, Geneva, Switzerland.
• REN21 (2015), Renewables 2014: Global Status Report, Paris.

See also

• All articles on sustainable development indicators
• Greenhouse gas emission statistics
• Energy production and imports

Further Eurostat information

Database

• Sustainable Development Indicators, see:

Climate Change and Energy

Dedicated section

• Sustainable Development Indicators

Methodology

• More detailed information on climate change and energy indicators, such as indicator relevance, definitions, methodological notes, background and potential linkages, can be found on page 197-226 of the publication Sustainable development in the European Union - 2015 monitoring report of the EU Sustainable Development Strategy.