EU Policies and Regulation on CO2, Renewables and Energy Efficiency: A Critical Assessment of Recent Experiences - Green Energy and Efficiency: An Economic Perspective - page 41

Fig. 11 Trend in energy intensity in EU 27 (ktoe/ € 1000) (Energy intensity of the economy —
Gross inland consumption of energy divided by GDP (chain-linked volumes — reference year
2005) — kgoe (kilogram of oil equivalent) per € 1000) Source Eurostat

projects for those that are immature. From the point of view of targets, experience
with the 2020 goal con

rms that setting various different targets has led to inter-
ference between them and, in turn, to inef s

Green Paper asked stakeholders about this issue with a view to designing the
framework for targets beyond 2020. Many of the stakeholders that responded to this
public consultation revealed that they were in favour of setting a single target for
reducing CO 2 emissions, so as to transmit a clear signal to encourage investments
in zero-emissions technology, among which renewable energy will play a very
signi

ciencies. The European Commission '

cant role. This CO 2 target could be accompanied by indicative targets for
renewables and by support for R&D&I in less mature technologies.
Bearing in mind the experience gained from the various policies to support
renewable energies that have been implemented in Europe, some recommendations
can be made with a view to improving the environmental and economic soundness
of these policies and their compatibility with the competitiveness of the electricity
supply. The main proposals can be summed up as follows:

In order to set targets, it is necessary to perform a thorough analysis of current and
future demand, in accordance with the elements that characterise the current and
future context. The economic situation means that there is a need for a realistic
outlook so as not to set overambitious targets when public support is required.

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A suitable role needs to be allocated to each renewable technology. The most
cost-effective will be of key importance in meeting the targets and those with the
greatest potential for cost reduction in the future will require smart support
based on R&D or industrial policies funded by the general state budget. It is also
crucial to analyse the potential for and cost of development in all energy sectors
—

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heat and cold, electricity and transport — as they are all responsible for

meeting the target of 20 %.