Ambitious EU climate change and energy package

European Parliament has today by great majority endorsed last weeks' decision of the EU Heads of State on an ambitious EU climate and energy package. This package contains two EU Directives of relevant importance for wind power, the Directive on Renewable Energy (RE) and the Directive on the European Emission Trading Scheme (ETS).

“Vestas welcomes the adoption of the EU climate and energy package, which provides the European Union with an innovative piece of legislation integrating climate change and energy concerns”, states Ditlev Engel, President and CEO of Vestas Wind Systems A/S.

The Climate and Energy package includes a 20 per cent emissions reduction target, a 20 per cent renewable energy target and a 20 per cent energy efficiency target by 2020. Reaching the targets will increase the EU's energy security and set the pace for a new industrial revolution, also consolidating the EU's leading role at the UN climate change negotiations. “The agreement reached and today endorsed by the European Parliament represents a historical opportunity for the European wind industry which will facilitate the EU to step into the 21st century's modern energy mix,” concludes Ditlev Engel.

The adoption of the RE Directive will enhance the development of sustainable energy sources in Europe and ensure predictability of the investment in the wind energy sector. It enables wind power and other renewable energy sources to consolidate European leadership in the coming global energy revolution.

Vestas sees the adoption of an overall 20 per cent legally binding renewable energy target for the EU by 2020 as a boost for the investment stability in the wind energy sector. Moreover, by defining targets prorated according to each Member State's needs and potential, the EU provides for real instruments for long-term planning on renewable energy.

The current international financial situation calls - more than ever - for investors' certainty. The RE Directive provides the stability and predictability the wind sector needs for a proper and continuous development. Indeed, by adopting such Directive, the EU confirms that wind power generation is on track to become a mainstream clean electricity provider and one of the future central energy sources in the EU energy mix.

Further, the adoption of the Directive on the EU Emissions Trading Scheme adds to European leadership by subjecting the power sector in over half of European countries to the polluter pays principle, allowing for the creation of a price of carbon that incentivises investment in sustainable energy sources.

With a 23 per cent market share, and 35,500 wind turbines installed, Vestas is the world's leading supplier of wind power solutions. With more than 19,300 employees over the world and 30 years' experience in wind power technology, Vestas represents a mature and cost-efficient renewable energy.

As No. 1 in Modern Energy, Vestas is more than ready to play a key role in reaching EU's energy targets. Indeed, Vestas technology will make a substantial contribution to many Member States' realisation of their renewable energy 2020 targets. In the short, medium and long term, wind power will contribute increasingly to the abatement of global climate change, lowering energy dependence and securing many jobs in the modern energy economy of Europe.

In conclusion, Vestas welcomes ongoing efforts which have been made for the adoption of the RE and the ETS Directives. The wind energy sector welcomes this landmark legislation that will maintain the leadership of the European clean energy industry and keep its high job creation level. By adopting the climate and energy package, the EU Member States and the various European Union's institutions associated to the process provide for the legal tools enabling a stable and secure development and deployment of wind energy in Europe.