Mandatory targets for renewable energy recently proposed by the European Union should be accompanied by a bloc-wide system of tradable renewable energy certificates, an energy traders' group said.
The European Federation of Energy Traders, whose members include E.ON AG, BP Plc, and Merrill Lynch & Co., held a press briefing today in Brussels to discuss a package of EU energy proposals, including a legal requirement that 20% of Europe's energy come from renewable sources by 2020. The proposals will „run into trouble” because they leave „the whole of the renewable energy segment effectively outside the market,” said Peter Styles, chairman of EFET's electricity committee, said. EFET supports tradable EU-wide renewable energy certificates, which could eventually be linked to the EU's system of emission trading, Styles said. The EU, which says it gets 50% of its energy from other countries, aims to reduce consumption of hydrocarbons to fight global warming and ease reliance on imports. EU Energy ministers yesterday failed to endorse the 20% mandatory target. EFET believes that minimum targets would be a good idea, provided they are linked to system of tradable certificates, Styles said. „This long-term vision is missing from the whole package,” Styles said, adding that tradable renewable energy certificates wouldn't be feasible without being backed up by an EU-wide minimum target. (Bloomberg)