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Draft Integrated National Energy and Climate Plan for Austria

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Draft Integrated National Energy and Climate Plan for Austria Draft Integrated National Energy and Climate Plan for Austria 2021-2030 Vienna, December 2018 Table of contents Part 1 ................................................................................................................................................. 3 SECTION A: NATIONAL PLAN ............................................................................................................... 4 1. OVERVIEW AND PLAN DEVELOPMENT PROCESS .............................................................................. 4 1.1. Summary ................................................................................................................................ 4 1.2. Current policy and administrative structures ...................................................................... 14 1.3. Stakeholder consultation at national and EU level — outcomes ......................................... 43 1.4. Regional cooperation in drawing up the plan ...................................................................... 45 2. NATIONAL TARGETS AND OBJECTIVES ............................................................................................ 46 2.1. Dimension 1: decarbonisation ............................................................................................. 46 2.2. Dimension 2: energy efficiency ............................................................................................ 53 2.3. Dimension 3: security of supply ........................................................................................... 57 2.4. Dimension 4: internal energy market .................................................................................. 58 2.5. Dimension 5: research, innovation and competitiveness .................................................... 66 3. POLICIES AND MEASURES ................................................................................................................ 71 3.1. Dimension 1: Decarbonisation ............................................................................................. 71 3.2. Dimension 2: Energy efficiency ............................................................................................ 99 3.3. Dimension 3: Energy security ............................................................................................. 104 3.4. Dimension 4: Internal energy market ................................................................................ 106 3.5. Dimension 5: Research, innovation and competitiveness ................................................. 113 SECTION B: ANALYTICAL BASIS ......................................................................................................... 120 4. Current situation and projections ‘with existing measures’ (WEM) ............................................. 120 4.1. Projected evolution of main exogenous factors influencing energy system and GHG emissions ....................................................................................................................................... 120 4.2. Dimension: Decarbonisation .............................................................................................. 121 4.3. Dimension: Energy Efficiency ............................................................................................. 126 4.4. Dimension: Energy Security ............................................................................................... 136 4.5. Dimension: Internal Energy Market ................................................................................... 144 4.6. Dimension: Research, Innovation and Competitiveness .................................................... 148 5. Impact assessment of planned policies and measures ................................................................. 158 Part 2 .............................................................................................................................................. 159 List of parameters and variables to be reported in Section B of National Plans ........................................ 159 Legal information ............................................................................................................................ 160 Part 1 SECTION A: NATIONAL PLAN 1. OVERVIEW AND PLAN DEVELOPMENT PROCESS 1.1. Summary i. Political, economic, environmental and social context Austria is a federal republic built on the economic principles of the social market economy. Balancing the interests of employers and employees plays an essential role in political discourse, although the ‘social partnership’ has undergone changes in recent years. The standard of living is very high, even by European standards, and the long-term average unemployment rate is relatively low. Social benefits and the progressive taxation of wages and income have an equalising effect on society. Since 1990, population growth in Austria has accelerated significantly, in particular due to immigration from EU Member States and third countries. This growth is concentrated primarily in the conurbations, while some of the surrounding rural areas are exhibiting downward population trends. The environmental situation in Austria can be described as positive in terms of essential parameters such as water quality, air quality (with the exception of certain regions) and the use of renewable energy resources. Furthermore, by European standards a very high percentage of agricultural land is farmed in an ecological or environmentally appropriate way, and there are very high levels of sustainable forest use. There are, however, areas for improvement, such as the development of transport, in particular in conurbations and along transit routes, and the accompanying immission levels. This problem area is being addressed, including on a long-term basis, through the continuous development of rail infrastructure. Currently, Austria already has the highest share of rail transport within the European Union. As regards taxation of energy products, Austria is towards the lower end of the middle range of EU Member States.1 In the case of petroleum products, tax rates are consistently lower than in neighbouring countries, which means that a significant proportion of the diesel fuel sold in Austria is used abroad (fuel exported in fuel tanks). In several regions, land use is also a critical issue. Alongside population trends and economic prosperity, the primary reason for this is the lack of adequate planning tools at local and regional level. In connection with the economic, environmental and social context of the plan, the UN’s Sustainable Development Goals (SDGs) are also of paramount importance. These goals are to be implemented in 1 An overview of the taxation of energy products, including electricity, is provided in the following publication from the European Commission (as at 1 January 2018): https://ec.europa.eu/taxation_customs/sites/taxation/files/resources/documents/taxation/excise_duties/energy_products /rates/excise_duties-part_ii_energy_products_en.pdf Austria through mainstreaming in all policy areas, thus ensuring sustainable economic, environmental and social development. As a result, the economic, environmental and social dimensions are taken into equal consideration both in the National Energy and Climate Plan and in the Federal Government’s integrated Climate and Energy Strategy. ii. Strategy on the five dimensions of the Energy Union In May 2018 the Austrian Federal Government adopted its Climate and Energy Strategy (#mission2030). The Strategy aims to meet the Sustainable Development Goals in the areas of greenhouse gas reduction, renewable energy and energy efficiency by 2030, in line with the objectives of the European Union. Security of supply, competitiveness, affordability and research and development complete the aims of the Strategy, making it largely consistent with the five dimensions of the Energy Union. The Strategy not only forms the basis for Austria’s National Energy and Climate Plan (NECP) in accordance with the Regulation of the European Parliament and of the Council on the governance of the Energy Union and climate action, but also provides the medium- and long-term framework for transforming the energy system in line with the goals of the Paris Agreement on climate change. Long-term decarbonisation must be used in the best possible way in terms of the eco-social market economy, as well as from an economic, environmental and social standpoint. Accordingly, the implementation of these long-term objectives does not denote a loss of prosperity, but must be shaped in such a way as to result in a highly successful economic, environmental and social model of a resource-efficient economy. For this to happen, all relevant provisions must be taken in the vision for 2030 and stranded costs and lock-in effects must be avoided. iii. Summary table showing the main objectives, together with policies and measures Table 1: Main objectives and action areas of the NECP Objective (2030) (Other) dimensions Measure Instruments affected Sector Main objectives and measures affecting the decarbonisation dimension Reduction of GHG emissions (non-ETS) by 36 % compared to 2005 Strengthen and develop public Public procurement Decarbonisation Transport transport, including electrification Infrastructure Energy efficiency GHG sector contribution: and mobility management development proposals -7.2 million t CO2 Funding equivalent compared to 2016 (total contribution) Mobility management for business, Infrastructure Decarbonisation cities,
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