Breachesin the Energy Policy of the European Union
AyberkBozkurt,Dmitri Voropanov, Mehmet Yilmaz
Thispolicy brief argues that the energy policy should be adopted andrevised in consideration of current events. Unfortunately, thecurrent stance in the energy sector does not withhold independencefrom Russian imports. Currently, steps were taken in order to manageEU’s dependency on the issue. This is evident in future meetings ofThe Europe Summit on Shale Oil and Gas (the date is still to beannounced) that will take place in Kiev and the World Shale Oil andGas Summit in Dallas, USA between 4th and 7th of November, 2014.
Toeffectively reboot the Energy Policy, we recommend the followingmeasures based on 5 goals:
EU should adjust its energy policy to shift away from natural gas consumption to shale gas and oil usage.
In order to help the transition, the EU must provide more incentives for research and technology advances that will be implemented in the sphere.
The EU has to overview its current energy policy and reform it, in order to develop its own control over the energy resources in the market.
From the way that the shale gas is being extracted presently, environmental problems occur, especially in the area of gas emissions. The extraction process should be innovated to decrease environmental harm, with the end result being as such as shale gas extraction not coming in confrontation with the environment.
In addition, alternative energy sources should not be overlooked.
The Treaty of Lisbon had a crucial effect on the Energy policy of the European Union. The Treaty provided market-based tools such as: taxes, subsidies and the CO2 emissions trading scheme. However, tied with the events in Ukraine and the counter-position towards Russian stance on the affair, the European community had found itself to be in a situation, in which it has to become its own provider in the energy sector. Moreover, political pressure from the United States is pushing the Union to act rapidly and according to US recommendations. The complication arises from the European Union’s current incapability to safely shift away from Russian imports, mainly in the face of Gazprom. This is one of the reasons why, Europe is not as firm in its decision on Russia as the United States. Whether the modernization of the policy arises from political or any other reasons, the energy policy should be innovated to keep up with the rest of the world. Coming from this, one could view this situation to be beneficial for the European community, which is finally forced to seek alternative energy sources, which in turn will free the Union from political pressure from both Russian and the United States, making the community unobstructed in its political decisions. With energy resources being at the heart of the struggle, it would be wise for the member states to act together in order to give mutual decisions on the matter, which would benefit the Union as a whole.
2.Definition of the Current Policy
After 2007, a proposal presented a package of measures to establish an energy policy that would handle the climate change issues while providing energy security and competitiveness. An action plan was also prepared in order to give the importance of external energy policy, which could bring together consumers, producers and transit countries.There had been attempts by the European community to bypass Russian gas import dependence. This is evident through the struggle of the supranational organization in subsidizing the Trans Anatolian Natural Gas Pipeline (TANAP) and Trans Adriatic Pipeline (TAP) which would supply the Union with the necessary amount of oil and gas to support its state of being. At the same time, this could mean closer partnership and coordination between the Union and external states such as Turkey and Azerbaijan. “Nevertheless, the TAP project which had its roots in 2003, with the expected end-date coming in 2018, does not fully substitute the current gas imports supplied by the Russian Federation”[ CITATION APN12 l 1033 ]. In contrast to the German (only!) imports of Russian oil and gas, which had reached “34.0 billion cubic meters in 2012”[ CITATION Gaz12 l 1033 ], the Trans Adriatic Pipeline’s maximum capacity can carry 20 billion cubic meters per year[ CITATION EGL07 l 1033 ]. In addition, Poland, being the Eastern Europe’s top importer, receives around “33 billion cubic meters per year (roughly), while Great Britain takes 8.16 billion, according to 2011” [ CITATION Gaz12 l 1033 ]. At the same time, TANAPS construction in planned to start in the current year and is expected to be completed at the end of 2018. While its “maximum capacity reaching 16 billion cubic meters” [ CITATION TAN14 l 1033 ]. From the above information it becomes evident, that even when the maximum capacities from both, the TAP and TANAP pipelines summed up, the European Union would not be able to survive fully on these two projects alone. From this, it becomes clear, that other energy sources will play a crucial role in the further development of the Energy policy.
3. What has been done to overt Russian dependency?
There had been attempts by a number of members of the European Union to find alternative measures to the usage of natural gas. As an example, Estonia had been practicing extraction of shale gas, and later implementing it for heating and electricity sectors. However, as stated in the recommendations section of the brief, the shale gas extraction possibilities that are currently in use, causing severe damage to the environment. Examples of such are the following: “Water contamination, induced seismicity and greenhouse gas emissions. In addition to the latter, prominent supply of fresh water is vital in order for the extraction process to take place.” [ CITATION Bri12 l 1033 ] Alongside the ecological risks that the extracting nation is faced with, economic risks are added to the dilemma. The major factors which are involved in the economical risks are: “poorly constraint, eventual long-term gas production of shale gas and long-standing and possibly long term low market natural gas prices” [ CITATION Bri12 l 1033 ]. “Countries with 100% dependency on Russian energy sources, such as Latvia, Finland and Lithuania” [ CITATION And08 l 1033 ] had found themselves in a controversial situation.
4. CFSP and Energy Security
A number of scholars and experts mention the importance of broader policy of CFSP. In the CFSP efficiency of the environmental issues, economic implications such as: “Research and Development (R&D) should be considered in the policy mix.” [ CITATION Gio06 l 1033 ] Energy policy is a rare concept because it varies from country to country in addition to that, different challenges occur because of long and short term implications. For energy security and market, oil and gas are the essential products and in order to use these products more efficiently appropriate responses should be given to different problems. “In order to provide wider security issues, long term solutions should be implemented to energy security problems such as: dependency on imports from unstable countries.”[ CITATION Gio13 l 1033 ] The countries with authoritarian regimes (or limited democracy) are unreliable energy suppliers in addition, corruption blocks foreign investments of those countries.
Some scholars view nuclear energy, as a short term solution, but there are different problems regarding nuclear energy because, “nuclear energy is 50% more expensive than coal- fired power plants, as well as gas fired power plants.”[ CITATION IAE14 l 1033 ] Second problem is that it is still unknown how to transport nuclear energy safely. Thirdly, according to International Atomic Energy Agency in 2002 – “Known uranium resources could fail to meet demand possibly as early as 2026”. Nevertheless, one should not push away the idea of technological breakthroughs happening in the near future to reduce the need for uranium needs, however it is still unproved. With systematic and constant use of nuclear power, and further developments of it could threat global and environmental security. Problematic states such as North Korea, Iran and Pakistan (Pakistan’s constant struggle with India) could use technological advances in the field of nuclear power to pursue their own interests in the armament sector. In addition, these advancements could be intercepted by terroristic organizations and used in unfriendly manner. Finally, nuclear power is considered as old fashioned creation, because it was created for cold war to represent massive concentration of power and reflected the geopolitics of a post-WWII era.
At the end, the “ties between the Common Foreign and Security Policy and Energy Policy the further development should be tighter.” [ CITATION Gio06 l 1033 ] Currently, there are some nationalistic theories such as intergovernmentalism prominent in the higher governing authorities of the EU. Presently, because of intergovernmental ideas of the members in the EU, there are no developments for a single CFSP between the members. Issues arise from the energy policy as well today, member states are against granting the entire control of the energy policy to one supranational entity. National interests and attitudes of the member states do not provide any benefit for the European Union as a whole. However, this political decisions and ideas only benefit some nations while it affects the other negatively.
5. Role of third countries in terms of the EU
Currently, energy security plays a crucial role in the agenda of the European Union and of all its member states. Because of the broadness and globalization of the energy security, in the future the European Union might encounter some threats and vulnerabilities from outside of the Economic Zone. Approaches of the members to the energy policy differ along the lines of their dependency, which causes long and short term risks for the future developments. Because of the above statement, intergovernmentalism is the central idea pursued by the member states during discussions. As an example, countries with less dependency, such as France and Belgium, “at 14 and 5 % respectfully” [ CITATION Gaz12 l 1033 ] can dictate their foreign policy more openly. “The Union should consider other regions for the import of gas and oil, such as: Middle East, South Caucauses, Central Asia, Western Africa, South America as well as Russia.”[ CITATION Jer06 l 1033 ] Clearly, there are other options available to the European Community in terms of energy. Another way of softening the dependency lies on the “multiplicity of suppliers of energy and its transport routes.” [ CITATION Jer06 l 1033 ] In order to expand the possibilities of the current energy market, the European Union should exert more effort to establish dialogue and cooperation with other countries which currently had been playing a periphery role in comparison to the Russian imports. As mentioned above, those countries are abundant in almost all of the regions in the world. Of course, there are other factors which are tied in with the imports from far away states, such as transport cost, however, with prosperity of suppliers, the Union will not find itself in the situation that it is in now. In addition, it would be easier to substitute a supplier state, if it is not a sole exporter of the energy.
One should not overlook the implication of the European Union in terms of free market and competition policies. The fact that the Community is tied with a monopolistic exporter – Gazprom, undermines its own principles, while questioning the weight of its political direction. “Being fixed to a monopolistic firm, opens up risks of not getting the best product, since the lack of other companies, competing with Gazprom on the Russian market.” [ CITATION Gio06 l 1033 ]Thus, Gazprom may experience stagnation in terms of new technology exploration and implication on further projects. This could mean, that while Gazprom remains the main supplier of oil and gas, until a certain time period, the Union will not be able to sign new agreements with competing companies such as Exxon Mobile or Shell, which have higher chances because of competition, to develop new technologies (such as shale oil and gas). Because of this, monopolistic attitude of Gazprom requires attention by the European Union.
Among energy suppliers from the outside of the Union, one should not leave out China as being a prominent player in the energy sector. With the Chinese economy experiencing a constant growth, the state has the ability to give long term supply contracts. “The dynamic presence of China makes international competition tougher for oil companies, thus providing grounds for development and modernization of local (European) companies.”[ CITATION Gio06 l 1033 ] Nevertheless, problems arise in the natural security stratum in the shape of mass quantity of gas emission which is unacceptable according to the European Union environmental standards.
6. The future of Energy policy of European Union
In purchase to flourish the opportunities of the present energy industry, the Western Partnership should apply more effort to set up conversation and collaboration with other nations which currently had been playing a outside part in evaluation to the European imports. As mentioned above, those nations are numerous in almost all of the areas in the world. Of course, there are other factors which are linked in with the imports from far away declares, such as transportation cost, however, with success of providers, the Partnership will not discover itself in the scenario that it is in now. Moreover, it would be easier to alternative a provider condition, if it is not a only exporter of the energy.
One should not ignore the effects of the Western Partnership in terms of free industry and competitors guidelines. The fact that the Community is linked with a monopolistic exporter – Gazprom, undermines its own concepts, while asking the weight of its governmental route. “Being set to a monopolistic firm, reveals up risks of not getting the best product, since the lack of other companies, aggressive with Gazprom on the European industry. Among energy providers from the outside of the Partnership, one should not leave out China suppliers as being a popular player in the energy industry (Gazprom 89). With the China economic system suffering from a continuous growth, the condition has the ability to give lengthy lasting supply agreements. The powerful existence of China suppliers creates worldwide competitors more difficult for oil companies, thus offering reasons for growth and modernization of local (European) companies. Nevertheless, problems occur in the organic protection stratum in the shape of mass quantity of gas exhaust which is undesirable according to the Western Partnership ecological requirements.
A variety of students and experts discuss the significance of broader policy of CFSP. In the CFSP performance of the ecological problems, economic effects such as: Analysis and Development (R&D) should be regarded in the plan mix. Energy policy is a unusual idea because it differs from nation to country along with that, different difficulties happen because of lengthy and temporary effects (Faleg 45). For energy protection and industry, oil and gas are the essential items and to be able to use these items more successfully appropriate reactions should be given to different problems. “In purchase to offer broader protection problems, lengthy lasting solutions should be applied to energy protection problems such as: reliance on imports from volatile nations.” The nations with authoritarian routines (or limited democracy) are untrustworthy energy suppliers in inclusion, crime prevents foreign investment strategies of those nations.
Some students view nuclear energy, as a temporary solution, but there are different problems regarding nuclear energy because, “nuclear energy is 50% more expensive than coal- shot energy vegetation, as well as gas shot energy vegetation.”(IAEA, 2014) Second problem is that it is still unidentified how to transportation nuclear energy securely. Additionally, according to International Atomic Energy Organization in 2002 – “Known uranium resources could don`t succeed to meet demand possibly as early as 2026”. Nevertheless, one should not force away the idea of technical developments occurring in the long run to reduce the need for uranium needs, however it is still unproved. With methodical and continuous use of nuclear energy, and further improvements of it could risk international and ecological protection. Challenging declares such as North The philipines, Iran and Pakistan (Pakistan’s continuous battle with India) could use technical developments in the field of nuclear energy to engage in their own passions in the armament industry. Moreover, these improvements could be intercepted by terroristic companies and used in unfavorable manner. Finally, nuclear energy is regarded as old designed development, because it was created for cold war to signify large focus of energy and shown the geopolitics of a post-WWII era.
For years to come, there are planned implementations tha ave been put n plce to make certain that the energy section is at its best. These implementations include:
Reduction of the green house emissions by 40%
Increasing the renewavle share energy to 27% at the least
Contnued improvements in the efficiency of energy
Reforming the emissions of the EU as well as th trading system.
Comng up with compettive, affordable as well as secure energy
A new system of governance.
Their results on environment and power set out a number of concepts on which the new structure should be based and ask the Authorities and the Percentage to quickly create several components, such as systems for reasonable attempt discussing. The Western Authorities will take stock of improvement on these issues at its conference on 26-27 This summer 2014. The 2030 structure develops on the experience of, and training learned from, the 2020 environment and power structure. It also considers the long run viewpoint set out by the Percentage this year in the Plan for moving to a aggressive low as well as economic system in 2050, the Energy Plan 2050 and the Transportation White Document. These records indicate the EU`s goal of decreasing green house gas pollutants by 80-95% below 1990 levels by 2050 as part of the attempt needed from western world as a team. To get ready for the 2030 structure, a Green Document implemented by the Percentage in Goal 2013 released a community assessment on what the structure should contain. The community assessment ran until 2 This summer 2013.
In summary there had been initiatives by a variety of associates of the Western Partnership to discover alternative actions to improve the program such as to the use of organic gas. An example, Estonia had been exercising removal of shale gas, and later applying it for heating and power areas. However, as stated in the suggestions area of the brief, the shale gas removal opportunities that are currently in use, causing serious damage to the surroundings. Even with the unique circumstances, it is obvious that the program is not yet perfect and there are some things which have to be done for the objective of enhancing it more. It has obvious that there are many implementations which have been put n place for th objective of creating sure that the Energy program works just well. Even with these initiatives, there are findings each day due to the application of the present technical innovation. Many places n the present community apply technical innovation and this creates cost-effective enhancement aggressive. In this case, studies have to be carried out for the objective of creating certain that everything to do with energy is enhanced to the latest program. This will help to ensure that the program s kept enhanced and modified.
Faleg, G. (2013, December 17). CEPS Policy Brief. Retrieved April 22, 2014, from The Governance Gap in European Security and Defence: Policy%20brief%20on%20CDSP%20(4).pdf
Gazprom Export. (2012). Germany. Retrieved April 23, 2014, from Gazprom: http://www.gazpromexport.ru/en/partners/germany/