Nordic environmental organisations are tightening their co-operation on ecolabelling of electricity

The Nordic environmental NGOs met in connection with the international seminar on EU energy market liberalisation, which was organised by the Finnish Association for Nature Conservation in Helsinki on September 17, 2003. The development of EU energy markets is a core issue of national environment policy. The Finnish Association for Nature Conservation hopes that this seminar and consequent publication will raise the level of understanding of EU policies in this important field.

The ENGOs want to underline that neither the EU climate emissions trading system under construction at the moment nor the green sertificates or the guarantee of origin for electricity originated from reneawable sources according to RES-E directive (RES-E = renewable energy sources electricity) can replace the ecolabelling of energy.

The voluntary energy ecolabelling systems has been developed to help consumers to do environmentally sound choices and to assist energy suppliers to get their products based on sustainable and renewable energy sources to compete on the open market. The primary objective is to increase the sustainability of energy consumption and to improve public awareness of the environmental impact of energy production. Nowadays all kinds of companies, as well as private consumers, can freely purchase their electricity from the power company of their choice. This means that anyone can decide what kind of energy they want to pay for. An ecolabel means that the supplier can provide energy satisfying ENGO recommendations. The ecolabel can be applied for by filling in an application form which will be supervised by experts. Also adherence to the terms of the ecolabel by requesting information from the companies using the label will be supervised in conjunction with the annual audit. The auditor used by the company will have to check the information on the level of production and sales at the annual level.

In Sweden, Norway and Denmark, the market share for ecolabelled electricity has reached 8000 GWh/a which is slightly lower compared to previous year. The reason for this decrease is the introduction of new critaria as well as misunderstanding regarding the difference between government certificates and ecolabelled electricity. Despite the latter, the Swedish Society for Nature Conservation believe in an increase market for ecolabelled electricity during 2004 and onwards. The situation in Denmark and Norway is very positive and interest on ecolabelled electricity is growing rapidly.

In Finland, the market has been relatively modest but is growing all the time being over 100 GWh/a in 2002. The Finnish Association for Nature Conservation has decided to extend the validity period of the present criteria on electricity until the end of 2005 to improve its availability and sales on the market. A study conducted by Taloustutkimus Oy (an opinion survey group) in 2003 provides information on people's attitudes towards ecolabelled electricity. According to the study, 43 percent of interviewed people expressed their willingness to pay more on "eco-energy".

MORE INFORMATION:

• Johan Kling , Swedish Society for Nature Conservation, Good Environmental Choice Electricity and Transport, tel: +46 31-10 55 86, mobile: 070-240 17 22, fax: +46 31-711 64 30, E-mail: johan.kling@snf.se, web: http://www.snf.se
• Sirkka Tepponen , coordinator of ecolabelling of energy, Finnish Association for Nature Conservation, tel. +358-9-228 08 213, fax +358 9-228 08 200, E-mail: ekoenergia@sll.fi, web: http://www.ekoenergia.info

ANNEX: Seminar on European energy market; (1) background and (2) programme

(1) BACKGROUND OF THE SEMINAR

EUROPEAN ENERGY MARKET - Opportunities and threats for sustainable energy policies

Introduction

During the last decades, energy and climate issues have entered into the center of global environmental discussions. The extensive programme adopted at the UN Development and Environment Conference in Rio de Janeiro in 1992 (Agenda 21) aimed to give a broad definition of the measures that are needed to implement a policy of sustainable development. After numerous conferences and discussions, a binding agreement was finally signed in Kyoto in 1997. The Kyoto Climate Protocol set targets and schedules for greenhouse gas emission reductions. The European Union agreed on the national shares of reductions in 1998. Since then, the European Union has also taken major steps forward to liberalise its electricity and gas markets.

To meet these targets, the Finnish Government ratified a national climate strategy in March 2001. The Ministry of Trade and Industry has been responsible for collecting the sector-specific programmes under a National Climate Strategy. The government programme requires that these commitments are met in such a manner that measures do not impair economic growth and actions to strengthen employment nor prejudice steps to reduce the national debt.

The National Climate Strategy concludes that about half of the reductions needed can be achieved by saving energy, by increasing the use of renewable energy and by means that affect the emissions of greenhouse gases other than carbon dioxide caused by combustion. These measures are closely linked with the liberalisation of European energy markets. Its achievement depends on the setting-up of common European processes.

International Seminar on Climate Change and European Energy Markets

The Finnish Association for Nature Conservation is organising an international seminar on September 17, 2003, on EU energy market liberalisation. The theme will be approached from an environmental and consumer point of view. The seminar will be held in Helsinki.

The aim of the seminar is to provide Finnish Mps, other stakeholders and media with an extensive coverage of the recent development in the liberalisation of EU energy markets, and more specifically its impacts on consumers and the environment. Although energy politics has been a hot topic in Finnish public discussion, there is a lack of up-to-date information on the current state of EU energy markets and the content and consequences of new directives. Special attention will be paid on presenting the directive on rules for the internal market in electricity (COD/2001/77). What will happen to the important consumer amendment, which specifies that companies providing electricity and natural gas to final consumers should specify certain minimum information, including the origin of the electricity and gas in the bills? This aspect will be discussed alongside the possible future directive on energy demand management.

Presentations

The key-note speakers will cover the most relevant institutions, ranging from the European Commission to the Ministry of Trade and Industry of Finland. The speakers list also includes visionary approaches from top researchers and NGO experts.

Jason Anderson is an energy specialist at Climate Network (CNE) in Brussels. CNE is the European affiliate of Climate Action Network, which unites non-governmental organisations working on domestic and international climate change issues. Mr Anderson has Master's degrees both in anthropology and environmental science and policy.

Satu Hassi is a Member of the Finnish Parliament and a member of its Committee on Environment. She has a PhD in energy technology. Ms Hassi is a former Minister of Environment (1999-2002) and former chairman of the Green Party.

Antti Kaikkonen is a Member of the Finnish Parliament and a member of its Committee on Environment. He is the chairman of the environmental group of the Center Party, and specialised in energy politics.

Tuuli Kaskinen is an energy specialist at the Finnish Association for Nature Conservation, the largest environmental NGO in Finland. She is currently completing her Master's degree in climate policy.

Peter Lund has a doctorate from Helsinki University of Technology and an additional degree from London Business School. He is a Professor in advanced energy systems at Helsinki University of Technology. Mr Lund was recently appointed as Chairman of the European Commission's energy advisory board.

Riitta Myller is a MEP and the Vice-Chairman of the PSE group. She is a member of the Committee on Environment, Public Health and Consumer Policy, and a substitute member of the Committee on Employment and Social Affairs. Ms Myller has a Master's degree in social sciences.

Matti Supponen is Principal Administrator in European Commission (DG Energy and Transport). He has specialised in the implications of market liberalisation and energy security, and has presented the subject for the UN Economic and Social Council.

Stephen Thomas is Senior Research Fellow in University of Greenwich, School of Computing and Mathematical Sciences, Public Services International Research Unit. He specialises in the energy sector, particularly in energy restructuring, privatisation and regulation and environmental issues. Mr Thomas is currently writing a book on the UK and Brazilian experiences with electricity privatisation.

Johan Kling, Ph.D, from Swedish Society for Nature Conservation is working as a coordinator on eco-labelling system Good Environmental Choise Electricity and Transport.

The seminar is expected to attract good media coverage, as energy dependence and market liberalisation have been heavily debated in Finnish politics. The presentations will last 25-45 minutes, with a Q&A part included. The public will be comprised of members of the Finnish Parliament, as well as representatives of the media and national specialists on the field.

A publication, containing the edited presentations as well as discussions, will be published and distributed to members of parliament, media, and relevant institutions shaping Finnish energy and climate politics. The publication will be produced in Finnish, but it will contain a summary in English.

The development of EU energy markets is a core issue of national environment policy. The Finnish Association for Nature Conservation sees that this seminar and consequent publication will raise the level of understanding of EU policies in this important field.

(2) PROGRAMME OF THE SEMINAR

EUROPEAN ENERGY MARKET - Opportunities and threats for sustainable energy policies

Auditorium of Hotel presidentti Congress Center, 9.00-14.00, 17.9.2003.

9.00-10.00 Session 1: Finland's energy and climate policy: targets and reality

• Overview: How is Finland's climate strategy holding up? Timo Ritonummi, Ministry of Trade and Industry
• Climate and energy policy: How to achieve the targets? Satu Hassi, Member of Parliament
• Promoting sustainable energy production in Finland; Antti Kaikkonen, Member of Parliament

10.00-10.30 Discussion

Coffee break

10.50-11.50 Session 2: Latest development of energy policies in the European Union

• Liberalisation: new directives and their impact in environmental policy of the member states; Matti Supponen, Principal Administrator, European Commission, DG Energy and Transport
• Viewpoint from European Parliament: Handling of directives and future aims; Riitta Myller, Member of European Parliament
• EUs future prospects: Changes in energy production and policies; Peter Lund, Professor, chairman of the European Commission's energy advisor board

11.50-12.20 Discussion

Coffee break

12.40-13.40 Session 3: Energy market liberalisation: benefits for the environment and household consumers?

• Economic impacts of electricity market liberalisation; Stephen Thomas, Senior Research Fellow, Greenwich University
• How to make the market more sustainable? Jason Anderson, Energy Specialist, Climate Action Network
• Experiences from eco-labeled electricity in the changing Nordic market; Johan Kling, Ph.D, Swedish Society for Nature Conservation
• Threats and opportunities of the open electricity market; Tuuli Kaskinen, Energy Specialist, Finnish Association for Nature Conservation

13.40-14.00 Discussion and concluding remarks