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ECA’s work on energy, climate change, environment and agriculture Phil Wynn Owen European Court of Auditors Edinburgh, 23 November 2017 6 th European Environmental Evaluators Network Forum Page 1

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Page 1: ECA’s work on energy, - European Environment Agency · Chamber III External action, security and justice 28 Members Audit Quality Control Committee President –Klaus-Heiner Lehne

ECA’s work on energy,

climate change, environment

and agriculture

Phil Wynn Owen

European Court of Auditors

Edinburgh, 23 November 2017

6th European Environmental Evaluators Network Forum

Page 1

Page 2: ECA’s work on energy, - European Environment Agency · Chamber III External action, security and justice 28 Members Audit Quality Control Committee President –Klaus-Heiner Lehne

Outline

1. ECA organisation and types of audit

2. Landscape Review:EU action on Energy and Climate Change

3. Relevant ECA special reports:

recently published, in progress

Page 2

Page 3: ECA’s work on energy, - European Environment Agency · Chamber III External action, security and justice 28 Members Audit Quality Control Committee President –Klaus-Heiner Lehne

1. ECA organisation and types of audit

Page 3

Page 4: ECA’s work on energy, - European Environment Agency · Chamber III External action, security and justice 28 Members Audit Quality Control Committee President –Klaus-Heiner Lehne

European Court of Auditors (ECA)

o External auditors of the EU

o Contributes towards improving EU financial management

o Acts as independent guardian of the financial interests of the citizens of the EU

o Collegiate body with 28 members, 1 from each Member State, around 900 staff

o Based in Luxembourg

Page 4

Page 5: ECA’s work on energy, - European Environment Agency · Chamber III External action, security and justice 28 Members Audit Quality Control Committee President –Klaus-Heiner Lehne

ECA organisation

Presidency

International liaison

Protocol

Communications

Institutional relations

Strategy

Legal matters

Internal audit

Chamber II

Investment for

cohesion, growth

and

inclusion

Chamber IV

Regulation

of markets and

competitive

economy

Chamber V

Financing and

administering

the Union

Chamber I

Sustainable

use of

natural resources

Secretariat-General

Human resources

Finance

Information, workplace

and innovation

Translation and

language services

Chamber III

External action,

security

and justice

28 Members

Audit Quality Control Committee

President – Klaus-Heiner Lehne

Page 5

Page 6: ECA’s work on energy, - European Environment Agency · Chamber III External action, security and justice 28 Members Audit Quality Control Committee President –Klaus-Heiner Lehne

The ECA’s work

Financialaudit

Reliability of the accounts

Page 6

Compliance audit

Legality and regularity of underlying

transactions

Performance audit

Value for money and financialmanagement

Annual Report SpecialReports

Other products

Opinions on legislations

Briefing papers

Landscapereview

Page 7: ECA’s work on energy, - European Environment Agency · Chamber III External action, security and justice 28 Members Audit Quality Control Committee President –Klaus-Heiner Lehne

2. Landscape Review:EU action on Energy and Climate Change

Page 7

Page 8: ECA’s work on energy, - European Environment Agency · Chamber III External action, security and justice 28 Members Audit Quality Control Committee President –Klaus-Heiner Lehne

Landscape Review coverage

Page 8

2. What the ECA and EU Supreme Audit

Institutions (SAIs) are doing

3. Main challenges

1. What the EU is doing

Page 9: ECA’s work on energy, - European Environment Agency · Chamber III External action, security and justice 28 Members Audit Quality Control Committee President –Klaus-Heiner Lehne

Landscape Review coverage

Page 9

2. What the ECA and EU Supreme Audit

Institutions (SAIs) are doing

3. Main challenges

1. What the EU is doing

Page 10: ECA’s work on energy, - European Environment Agency · Chamber III External action, security and justice 28 Members Audit Quality Control Committee President –Klaus-Heiner Lehne

Mitigation: 2015 EU GHG emissions, by source

Page 10

Source: European Environment Agency, EEA greenhouse gas – data viewer, 2017.

8%

79%

10%

3%

Energy production and usage,

all sectors

2015 GHG emissions

by activity

Waste disposal and treatment

Agriculture

Industrial processes/product use

Page 11: ECA’s work on energy, - European Environment Agency · Chamber III External action, security and justice 28 Members Audit Quality Control Committee President –Klaus-Heiner Lehne

2015 emissions by Member States(% of EU total greenhouse gas emissions, excluding LULUCF, including international aviation and international navigation. Total = 4.6 Gt of CO2e)

Page 11

Source: EEA greenhouse gas – data viewer, EEA, 2017.

Page 12: ECA’s work on energy, - European Environment Agency · Chamber III External action, security and justice 28 Members Audit Quality Control Committee President –Klaus-Heiner Lehne

Mitigation: EU greenhouse gas emission trends, projections and reduction targets and objectives

Source: European Environmental Agency, European Environmental Agency, Trends and projections in Europe 2016 –

Tracking progress towards Europe’s climate and energy targets, 2016.

Page 12

1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050

2 000

2 500

3 000

3 500

4 000

4 500

5 000

5 500

6 000

1 500

1 000

500

0

Mill

ion

to

nn

es o

f

CO

2-e

qu

iva

len

t

Year

2050 objective (-95% vs 1990)

Effort needed to reach 2050 objective (-95%)2050 objective (-80% vs 1990)

Effort needed to reach 2050 objective (-80%)

Effort needed to reach 2030 target

2030 target (-40% vs 1990)

2020 target (-20% vs 1990)

Historic greenhouse gas emissions

-1,5% per year

-3,3% per year

-4,6% per year

-1,0% per year -20%

-40%

-80%

-95%

Page 13: ECA’s work on energy, - European Environment Agency · Chamber III External action, security and justice 28 Members Audit Quality Control Committee President –Klaus-Heiner Lehne

Seasonal temperature change, in °C, for 2071-2100, compared with 1961-1990 (2°C global increase scenario)

Page 13Source: Adapted from Climate Impacts in Europe, the JRC PESETA II project, 2014. Data from Dosio and Paruolo

2011 and Dosio et al 2012.

Winter Summer

Page 14: ECA’s work on energy, - European Environment Agency · Chamber III External action, security and justice 28 Members Audit Quality Control Committee President –Klaus-Heiner Lehne

Change in seasonal precipitation, in %, for 2071-2100, compared with 1961-1990 (2°C global increase scenario)

Page 14Source: Adapted from Climate Impacts in Europe, the JRC PESETA II project, 2014. Data from Dosio and Paruolo

2011 and Dosio et al 2012.

Winter Summer

Page 15: ECA’s work on energy, - European Environment Agency · Chamber III External action, security and justice 28 Members Audit Quality Control Committee President –Klaus-Heiner Lehne

Landscape Review coverage

Page 15

2. What the ECA and EU Supreme Audit

Institutions (SAIs) are doing

3. Main challenges

1. What the EU is doing

Page 16: ECA’s work on energy, - European Environment Agency · Chamber III External action, security and justice 28 Members Audit Quality Control Committee President –Klaus-Heiner Lehne

EU SAIs audit reports about energy and climate change

Page 16

28 (10%)

Adaptation

16 (6%)

101 (38%)

269

EU SAI reports

Cross-cutting topics

72 (27%)

52 (19%)

Energy

Other sectors

e.g. transport, waste

and agriculture

EU ETS and Kyoto

Source: EU SAI reports (January 2012 - March 2017).

Page 17: ECA’s work on energy, - European Environment Agency · Chamber III External action, security and justice 28 Members Audit Quality Control Committee President –Klaus-Heiner Lehne

Internal Energy Market and security of supply

Page 17

• EU’s objective of completing the internal energy

market by 2014 was not reached

• Problems in implementing EU legal framework

• Differences in MS energy markets

• Energy infrastructure not yet designed for fully

integrated markets

Page 18: ECA’s work on energy, - European Environment Agency · Chamber III External action, security and justice 28 Members Audit Quality Control Committee President –Klaus-Heiner Lehne

Renewable energy

Page 18

• Obstacles to investments:

o Regulatory environment

o Access to market

o Limited use of EU budget

• Cost-effectiveness

• Monitoring and evaluation

Page 19: ECA’s work on energy, - European Environment Agency · Chamber III External action, security and justice 28 Members Audit Quality Control Committee President –Klaus-Heiner Lehne

Competitiveness of renewable versus non-renewable electricity sources

Page 19

Renewable

energy sources

Non-renewable

energy sources

0 50 100 150 200 250 300 350

Levelised cost of electricity without subsidies, euro/ MWh

Coal peak

Natural gas peak

New nuclear

Natural gas semi-base

Coal base

Existing nuclear

Biogas

Offshore wind

Solid biomass

Utility-scale solar photovoltaics

Geothermal

Solid biomass co-firing

Onshore wind

Hydropower (dam)

Page 20: ECA’s work on energy, - European Environment Agency · Chamber III External action, security and justice 28 Members Audit Quality Control Committee President –Klaus-Heiner Lehne

Landscape Review coverage

Page 20

2. What the ECA and EU Supreme Audit

Institutions (SAIs) are doing

3. Main challenges

1. What the EU is doing

Page 21: ECA’s work on energy, - European Environment Agency · Chamber III External action, security and justice 28 Members Audit Quality Control Committee President –Klaus-Heiner Lehne

1. Governance

7. Involving

citizens

6. Evidence-

based policy

2. The energy

transition

4. Financing

3. Adaptation

5. Research

and

innovation

Main challenges

Page 21

Page 22: ECA’s work on energy, - European Environment Agency · Chamber III External action, security and justice 28 Members Audit Quality Control Committee President –Klaus-Heiner Lehne

Energy and climate change governance

Page 22

• Energy and climate change

need to be addressed together

• Choices in one Member State

can affect others and EU targets

• Public audits can play an important role

Effective

governance

systems are

needed

Page 23: ECA’s work on energy, - European Environment Agency · Chamber III External action, security and justice 28 Members Audit Quality Control Committee President –Klaus-Heiner Lehne

The energy transition

Page 23

• Profound changes needed in electricity system to deal with

o Intermittent renewable energy sources

o Storage

o Decentralised production

o Inadequate infrastructure

o Overcapacity

• Transport sector needs fundamental change

• High-carbon and nuclear assets may shut down earlier,

requiring social adjustments

Page 24: ECA’s work on energy, - European Environment Agency · Chamber III External action, security and justice 28 Members Audit Quality Control Committee President –Klaus-Heiner Lehne

Planning for and tackling adaptation

Page 24

• Climate change will affect EU citizens in many ways

• Use of climate, environmental, societal and economic models

• EU and Member States need to anticipate and plan

adaptation, reducing the need to act late, in response to

events…

• … Or costs will be higher

Page 25: ECA’s work on energy, - European Environment Agency · Chamber III External action, security and justice 28 Members Audit Quality Control Committee President –Klaus-Heiner Lehne

Financing

Page 25

• 1 115 billion euro needed yearly in 2020-30

o Public and private sources

o More robust carbon price

• Costs of adapting to climate change difficult to predict

• Decommissioning nuclear power plants and

nuclear waste disposal

o Pressing, costly challenge for EU and Member States

o Many opportunities for business and employment

Page 26: ECA’s work on energy, - European Environment Agency · Chamber III External action, security and justice 28 Members Audit Quality Control Committee President –Klaus-Heiner Lehne

Using research and innovation effectively

Page 26

• New technologies to be

developed: energy storage,

alternative fuels in transport…

• Many years needed to use

on industrial scale

Progress in

technologies needed

to reduce emissions in

2030-50 has to be

made in 2020-30

Page 27: ECA’s work on energy, - European Environment Agency · Chamber III External action, security and justice 28 Members Audit Quality Control Committee President –Klaus-Heiner Lehne

Evidence-based policy

Page 27

• Policy-making and implementation

should be informed by best available

data and models

Involving EU citizens

• Citizens need to be involved to change

behaviour and pay for transition

Page 28: ECA’s work on energy, - European Environment Agency · Chamber III External action, security and justice 28 Members Audit Quality Control Committee President –Klaus-Heiner Lehne

3. Relevant ECA special reports:

recently published, forthcoming

Page 28

Page 29: ECA’s work on energy, - European Environment Agency · Chamber III External action, security and justice 28 Members Audit Quality Control Committee President –Klaus-Heiner Lehne

Publication

date

Cohesion policy funds support to renewable energy generation 2014

How do the EU institutions and bodies calculate, reduce and offsettheir greenhouse gas emissions?

2014

The integrity and implementation of the EU Emissions Trading System 2015

Improving the security of energy supply by developing the internal energy market:more efforts needed

2015

The EU certification and reporting system for sustainable biofuels 2016

EU nuclear decommissioning assistance programmes in Lithuania, Bulgaria, Slovakia: some progress made since 2011, but critical challenges ahead

2016

Spending at least one euro in every five from the EU budget on climate action:ambitious work underway, but at serious risk of falling short

2016

Landscape review of EU action on Energy and Climate Change Sep 2017

Page 29

Recent ECA reports

Energy and Climate Change

Page 30: ECA’s work on energy, - European Environment Agency · Chamber III External action, security and justice 28 Members Audit Quality Control Committee President –Klaus-Heiner Lehne

Publication

date

Reliability of the Land Parcel Identification System (LPIS) 2016

Combatting eutrophication in the Baltic Sea: further and more effective action needed 2016

The cross-compliance management and control system 2016

Combatting Food Waste: an opportunity for the EU to improve the resource efficiency of the food supply chain

Jan 2017

More efforts needed to implement the Natura 2000 network to its full potential Feb 2017

The certification bodies’ new role on CAP expenditure: a positive step towards a single audit model but with significant weaknesses to be addressed

Jun 2017

EU support to young farmers should be better targeted to foster effective generational renewal

Jun 2017

Implementing the Drinking Water Directive: water quality and access to it improved in Bulgaria, Hungary and Romania but investment needs remain substantial

Sep 2017

Rural development programming: less complexity and more focus on results needed Nov 2017

Page 30

Recent ECA reports

Agriculture, Environment, Fisheries etc

Page 31: ECA’s work on energy, - European Environment Agency · Chamber III External action, security and justice 28 Members Audit Quality Control Committee President –Klaus-Heiner Lehne

Publication date

(Planned)

Renewable energy for sustainable rural development Q1 2018

Innovation for climate action: innovative renewable energy and CCS Q3 2018

Air quality Q3 2018

Floods protection, prevention and preparedness in the EU Q4 2018

Desertification in the EU Q4 2018

Forthcoming ECA reports

Energy and Climate Change

Page 32: ECA’s work on energy, - European Environment Agency · Chamber III External action, security and justice 28 Members Audit Quality Control Committee President –Klaus-Heiner Lehne

Publication date

(Planned)

‘Greening’ of the Common Agricultural Policy 2017

Basic Payments Scheme for farmers Q2 2018

Briefing paper on the future of the Common Agricultural Policy Q2 2018

Simplified cost options in rural development Q2 2018

Organic food Q4 2018

Animal welfare Q4 2018

Food safety Q4 2018

Forthcoming ECA reports

Agriculture, Environment, Fisheries etc

Page 33: ECA’s work on energy, - European Environment Agency · Chamber III External action, security and justice 28 Members Audit Quality Control Committee President –Klaus-Heiner Lehne

Thank you

Page 33