Addressing the security of supply challenge

As a massive consumer of energy, the European Union must develop adequate energy efficiency measures and external policies in order to manage its dependence on fossil resources and avoid any energy supply disruptions.

According to trends assessed in 2000, the EU’s energy dependence could rise to 70% in 2030. For the European chemical industry, this means that a more integrated security of supply policy should be implemented in a pro-active way, not just  when oil prices are going up or when energy capacity is going down in the middle of winter. Chemical plants cannot afford to stop operations because of a lack of energy supply or unaffordable prices.

This means that European legislation has to take into consideration energy security of supply when driving an impact assessment of future legislative drafts. Otherwise, the objective of having a sustainable and competitive economy will be put at risk.

Cefic position on the security of supply challenge

Security  of supply is a challenge that must drive EU foreign policy, as well as general public policy implemented at the EU level. Inside the EU market, a comprehensive liberalisation of the energy market would facilitate the shipment of needed resources. This would mean developing some common transport facilities and ensuring adequate and better co-ordinated infrastructure to face possible supply disruptions.

To curb the growth of energy demand and to ensure added value for each unit of energy, public policies should have consistent and long- term energy efficiency aims. They should also encourage a wide, balanced and competitive energy mix, to avoid a new dependence like the current one based on oil and coal. Renewable energy solutions are part of the answer, and the chemical industry provides tools for that. Sophisticated tools may be indeed necessary in that respect.

Cefic contribution to the discussion on reducing energy demand

Tools to increase energy efficiency are of course a key part of the solution. They benefit industrial consumers, like the manufacturing sectors, and final consumers, for example, innovative foams that reduce the need for power.

The European chemical industry is already developing processes that reduce the loss of energy or heat, such as co-generation plants. As a large energy consumer, the chemical industry is strongly motivated to invest in sustainable solutions.

Next Steps

Cefic advocates for better co-ordination in the building of transport and energy grids. It supports an enhanced dialogue with the European Commission and other EU decision makers to share best practice and to avoid any risk of supply disruption.