Energy Community Report covers climate change for first time

November 7, 2017

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Energy Community Report covers climate change for first time

The Energy Community’s latest Annual Implementation Report for the first time covers climate change, bringing details on the Contracting Parties’ climate change legislation and strategies, especially with respect to monitoring and reporting on greenhouse gas emissions.

The document, presented yesterday, provides a comprehensive overview of the progress achieved by the Energy Community (EnC) Contracting Parties in implementing the acquis communautaire under the EnC Treaty.

The Secretariat applies twenty-three indicators in total for monitoring acquis implementation.

The new sustainability indicator, aiming to monitor the climate policies of the Contracting Parties, indicates the ‘greening’ of the EnC. It manifests the first steps towards integrating climate issues in the context of the EnC by the Ministerial Council in 2016.

“Sustainability of the energy sectors finally comes to the fore in the EnC. We have decided to focus in this year’s implementation report on the Contracting Parties’ climate change legislation and strategies, especially with respect to monitoring and reporting on greenhouse gas emissions. Albania, Serbia and Montenegro are the most advanced in the drafting of climate change laws,” Deputy Director of the EnC Secretariat Dirk Buschle said.

Montenegro and Serbia leaders

The report finds that Montenegro and Serbia continue to be the leaders in the implementation of the sustainability policies comprising energy efficiency, renewables, environment and climate.

“Yet all countries showed progress in this area, including improved transposition in the sphere of energy efficiency, with four Contracting Parties (Albania, Bosnia and Herzegovina, Kosovo* and Ukraine) having adopted primary legislation, which was so far missing,” the report notes.

Moderate transposition of the Renewable Energy Directive

Modest progress was achieved with respect to transposition and implementation of the Renewable Energy Directive, which is also reflected in the limited increase of renewable energy capacities.

According to 2015 data, Albania, Kosovo*, FYRM, Serbia and Ukraine remain below their indicative trajectory to meet the 2020 targets. Bosnia and Herzegovina and Montenegro have met their respective targets, yet this is due to the revision of biomass data rather than the uptake of renewable energy technologies.

Energy intensity remains high

In the area of energy efficiency, all Contracting Parties achieved progress during this reporting period. Most notably, Albania, Kosovo* and Ukraine finally adopted long-awaited laws on the Energy Performance of Buildings, whilst former Yugoslav Republic of Macedonia (FYRM), Moldova and Bosnia and Herzegovina (Federation) adopted Energy Efficiency Action Plans.

Work on the transposition of the Energy Efficiency Directive is ongoing in all Contracting Parties, with notable results in Montenegro and Serbia. Despite the downward trend of energy intensity in most countries, the values of this indicator remain high compared to the EU average.

Third Energy Package is still a challenge

The report also finds that six of the eight EnC Contracting Parties have successfully completed the transposition of the Third Energy Package. An ongoing and persistent failure to perform prevails in Bosnia and Herzegovina and FYRM. This situation is very similar to last year`s report.

Director of the Energy Community Secretariat Janez Kopač said that the Third Energy Package implementation will continue to be a challenge for the Contracting Parties as well as the Secretariat.

“For example, many countries are yet to properly implement unbundling of transmission and distribution system operators, where vested interests of national players can get in the way. Another challenge remains the strengthening of national authorities – energy regulators, energy agencies, competition and State aid authorities, which lack the strength and independence to act as effective and pro-active guardians of the transposed acquis,” Kopač said.