28 February 2019
The transition towards an economically, socially, energetically and environmentally sustainable society is under way. Therefore, the in-depth study of energy transition processes is one of the Institute's Energy Lab’s lines of research.
After having focused on the German Energiewende, throughout 2018 the focus was on the case of France. Other work carried out by the Lab in 2018 included a study on air quality in cities.
We chatted to Jorge Fernández, coordinator of Orkestra's Energy Lab, precisely about these two issues, which are undoubtedly linked.
Why did Orkestra decide to study the French case?
The idea was to initiate a series of studies on what surrounding countries are doing in terms of energy transition, since we have identified, for some time now, that one of the important challenges facing the energy sector in the Basque Country is how this transformation will be made towards an economy with low or zero net emissions of greenhouse gases. We started by studying the case of Germany, which is, in a sense, a pioneer in Europe, and then went on to other surrounding countries. So, that is the reason for studying the French case in 2018.
What are the features of this new transition under way in our neighbouring country?
What is really different in France with relation to the energy transition processes in other countries is that they have been very ambitious in terms of the implementation of economic signals relating to the environmental cost of using different forms of energy.
When you refer to economic signals, do you mean fines?
Within the tax structure in France, a component has been introduced that reflects the estimated social cost of CO2 emissions, which is applied to all energy sources and is borne by consumers.
It is a way to implement what is known as a carbon tax. Economic signals linked to the cost of CO2 emissions have existed for some time in the EU because there are sectors that are subject to emission ceilings and that participate in what is called the CO2 emissions trading system. The novelty in the case of France, only among the major European economies since other economies have done it before, such as Sweden or Ireland, is that a carbon price is applied to end-user energy consumption (for example , consumption for motor and heating fuels, etc.).
This feature of implementing economic signals, would you say it may be relevant with regard to a possible energy transition in the Basque Country?
Economic signals that generate suitable incentives will facilitate the transformation process of the energy structure and help to modify consumer behaviour. We think that, as is the case in Germany, it will be difficult for an energy transition process to succeed if it does not have very strong support from the population.
Citizens will not initially be in favour of measures that significantly increase the costs of energy products. But it is about looking for ways to convince society of the need to carry out such a transition and to explain that, if we do not act quickly, the costs will be higher, and that, in any case, we must seize the economic, environmental and social opportunities that emerge.
Moreover, mechanisms must be designed, where possible, to mitigate the impact of these changes on the most vulnerable sectors (for example, low-income families or certain productive sectors) so as to avoid situations of energy poverty or drops in productivity; given that there will most likely be an increase in the cost of energy, due to the need to finance all the changes that will have to be made in industry, in the automotive industry ... in all sectors.
How is the French case different to the German case?
The German case faced two major challenges aimed at reducing greenhouse gas emissions: changing the mix of electricity generation, closing all nuclear power plants and reducing the weight of coal, and encouraging the growth of renewable energie.
Germany is a country with a high CO2 emission rate, due to the weight of coal in the energy matrix. And they placed emphasis on generating a very powerful and competitive renewable energy sector. The French case is a little different. France did not have such a pressing need to reduce CO2 emissions. But there was a vision in French society for many years to try to be leaders in the process of energy transition.
They have taken the lead in initiatives such as organising the last UN COP 21 Conference in Paris, where the most recent major agreement on a global scale was reached on how to mitigate the effects of climate change. Apart from modifying the economic signals implicit in energy product prices, the circular economy and increasing energy efficiency in areas such as the domestic, commercial or industrial sectors are also being promoted. I think that these aspects are also interesting and could be adapted to our reality, here.
Let’s move on to the subject of air quality in cities, which has been another issue addressed throughout the course of this year by means of a study and subsequent presentations. What problem are we referring to when we talk about air quality?
The problem of air quality in cities is that, mainly due to traffic, but also for other reasons, such as the use of polluting fuel for heating, a series of substances build up in the air we breathe. This has an impact on people’s health as well as economic effects. Pollution leads to premature deaths associated with different types of medical conditions resulting from poor air quality. To this we must add the economic costs related to poor air quality in cities, such as those related to absenteeism in the workplace due to medical leave or the costs incurred on the health system itself. Let's say there is a close relationship between traffic, air quality and people's health.
What do we measure in order to assess air quality?
Concentrations of ozone in the air, concentrations of NOx, which are particularly harmful, and concentrations of particulates (such as those emitted by diesel engines or those produced by the abrasion of tyres against the ground). The WHO and European Union define a series of indicators on acceptable levels of nitrogen oxides, particulates and concentrations of ozone.
What does the work focus on?
With regard to air quality, we have reviewed several indicators in different Spanish cities; specifically, the Basque capitals and cities such as Madrid and Barcelona.
What does the data indicate in relation to the Basque capitals?
The data obtained indicates that, in general, the Basque capitals comply with all the indicators legally established by the European Union although there may be occasional non-compliance. However, the WHO references, which are slightly stricter, are sometimes complied with and at other times not. So, even though the EU indicators are complied with, there is still work to be done here.
And in relation to Madrid and Barcelona?
The problem is different. For many years there has been (and still is) systematic non-compliance of certain indicators, especially in NO2. This has led to the European Commission threatening Spain with legal action before the European Court of Justice.
In fact, it has condemned several Member States that are in the same situation. And Spain has been spared legal action because, at the last moment, when the lawsuit was practically on the table, the city councils of Madrid and Barcelona, along with the central government, submitted a series of plans to the EU to take drastic measures limiting traffic emissions. This is one of the main reasons why new, restrictive traffic measures are being taken in Madrid (Madrid Centro, for example) and Barcelona. Nevertheless, if the indicators of NO2 concentrations do not improve, legal action will be brought before the ECJ.