Mixed MEP reaction to EU's €5bn energy and broadband package

UK ALDE MEP Chris Davies has welcomed European commission proposals to invest €1.25bn in carbon capture and storage (CCS) technology.

The money comes as part of a €5bn "recovery plan" using unspent money from the EU budget to stimulate the economy and boost energy security, the commission said, providing immediate investment for energy and broadband infrastructure.

Some €3.5bn will be spent on clean energy projects under the plans, with €1bn going towards broadband internet and €500mn for renewable energy investment.

Commission president José Manuel Barroso described the plan as a "smart investment", saying it was a "short-term stimulus targeted on long-term goals".

"We need to learn the lessons of the recent gas crisis and invest heavily in energy," he said. "We also need to stimulate the European economy by providing information highways in rural communities."

Davies who is parliament's rapporteur on a proposed directive to set a legal framework for the development of carbon capture and storage in the EU.

He told theparliament.com on Thursday that he welcomed the proposals, even though the €1.25bn for CCS is a reduction on the €1.5bn originally proposed.

"From my point of view I welcome the commitment and the priority that the commission is now attaching to the development of CCS technology," he said.

"It has vast potential to abate CO2 emissions into the atmosphere and I think the new Obama presidency is going to be giving this considerable priority.

"I think this will undoubtedly help oil the wheels and enable Europe to keep ahead of the game."

The measures follow the European economic recovery plan, announced by the commission late last year and endorsed by the council in December.

Davies added, "I want to see the technology developed fast, I think it can make a major difference in the fight against global warming so there's never going to be a limit for the amount of support I would like to see at this stage.

"But we have already agreed a significant financial package for the long-term - we agreed that before Christmas - but this provides some upfront money which can enable rapid progress to commence."

Davies dismissed criticism that CCS would exacerbate the EU's dependence on fossil fuels, and said that the technology could help countries such as Poland, which get 95 per cent of its electricity from coal, to "secure significant CO2 emission reductions and keep the electric lights running".

"China gets 80 per cent of its electricity from coal and at the same time is expanding its renewable energy faster than any other country in the world," he added. "It cannot reduce its CO2 emissions and keep the lights on without CCS."

However, Luxembourg Green MEP and Green energy spokesman Claude Turmes described the €3.5bn proposed financing for energy projects as "inadequate and unbalanced".

"It is less a shot in the arm for the EU recovery plan than a handout to outdated energy sources and the companies that profit from them," he said.

He argued that the €3bn for coal and gas and the "meagre" €500mn for wind energy "represents a golden handshake from Barroso for technologies that should be on their way out, instead of a much-needed commitment to clean energy and energy saving".

Speaking on Thursday in parliament, German centre-right MEP Elmar Brok, of the EPP group, said, "Carbon capture is an important technology and I welcome this move by the commission."

His comments were echoed by Polish ALDE member Janusz Onyszkiewicz who said, "This is good news and I hope will signal that the EU is ready to make a serious political commitment to developing alternative sources of energy and energy supplies."

He said this was "vital" in guaranteeing Europe's energy security, while reducing emissions, in the wake of the recent Russian-Ukraine gas crisis. Europe will get most of its gas from Russia by 2050 on current trends.

German EPP member Michael Gahler also welcomed the announcement saying he too favoured unspent EU money being used to develop carbon capture technology.

Meanwhile Italian ALDE member Vittorio Prodi commented, "This technology could be very useful but it is not the most important. What is most important is that we develop a broad policy of developing renewable technologies."

Greenpeace said the commission had "missed another opportunity to help create an environmentally sustainable energy system that would stimulate the European economy".

"Today's money for clean energy pales in comparison to the hundreds of billions of euros that have been made available by EU countries to confront the economic recession," said EU renewables policy campaigner Frauke Thies.

"Investments in carbon capture technologies would perpetuate Europe's outdated energy system and its dependence on fossil fuels," he added. "'Clean coal' is an empty promise and is far from being a viable technology.

"By contrast, renewable energy and energy efficiency technologies are available and working today, ready to create employment for millions of people."

EU member states will now consider the proposal, and the Czech presidency is expected to discuss it at the February general affairs council.

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