Green Energy-Green Business: New Financial and Policy Instruments for Sustainable Growth in the EU
Besides committing itself to a specific renewables target, in 1997 the EU also explicitly embraced ‘the principle of sustainable development’ within the amendments to the Treaty of the European Union made at the summit in Amsterdam—only weeks before the preparation of the Kyoto Protocol in December that same year—where the Europeans found themselves among the strongest advocates for an ambitious plan to reduce global greenhouse gas emissions. The motivation for promoting renewable energy remains the same today as during the 1990s and consists of three main components: (1) renewables are seen as a central resource in the quest for energy security, particularly in terms of the diversification of energy sources and the lowering of dependency on imports (mainly oil and gas); (2) renewables are considered a key tool in meeting environmental challenges, particularly in mitigating the effects of climate change; and (3) renewable energy sources promise various economic benefits, such as keeping energy affordable in the long-term, contributing to job creation, developing new export potential through green technology and expertise and enabling sustainable development. The EU’s goal of 12% renewables by 2010 was further amended with the passage of two directives in the early 2000s; both contained non-binding, indicative targets for 2010. The 2001 Green Electricity Directive4 reaffirmed the overall 12% renewables goal and projected that for this to be achieved a share of 22.1% renewables in electricity consumption across the EU-15 by 2010 would be
European Commission, Directive 2001/77/EC of the European Parliament and of the Council of 27 September 2001 on the Promotion of Electricity Produced from Renewable Energy Sources in the Internal Electricity Market, Directive 2001/77/EC (27 September 2001), accessed at http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2001:283: 0033:0033:EN:PDF on 19 January 2012.
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