ECR presentation by Andreas Schneller

1. Energy Poverty meets Climate Protection
An analysis of possible synergies for the German context
Pan-European researcher symposium on fuel poverty
Nottingham, 11th September 2017
Andreas Schneller, adelphi

2. 2
• Potentially devastating environmental effects e.g. extreme weather events
Climate Change is already happening on a broader scale

3. 3
• Many countries adopted ambitious policy-goals (e.g. INDCs - Intended
Nationally Determined Contributions) to reduce greenhouse gas
emissions
• Germanys front-runner goals for the overall reduction of greenhouse
gas emissions (all referring to 1990 baseline-period)
• - 40% by 2020
• - 55% by 2030
• - 70% by 2040
• - 80% to 95% by 2050
Ambitious national targets in respond to global warming

4. 4
• Climate policy goals become increasingly an overarching framework for
other policies
• E.g. Building sector -> Current Goal - 80 % primary energy demand by 2050
• Large scale investments necessary to achieve appropriate energy savings
• min. 2 % overall renovation rate required
Climate change policies have enormous implications across all
sectors and policy levels

5. 5
What does this all has to do with fuel poverty?

6. 6
• Rising energy prices are an important option to gain the desirable positive
environmental-related incentive effects (e.g. lower consumption due to budget
restrictions)
• The chief instrument for expanding and increasing renewable electricity generation in
Germany is the Renewable Energy Act (EEG) -> Expansion of RE-share has been very
successful so far!
• The EEG guarantees the purchase of renewable power at fixed rates of remuneration that
exceed the average electricity price. With the EEG levy, the rising overall costs of these
remuneration payments are mainly carried by private households
• Costs for electricity in Germany have been rising by 100% between 2006 and 2016,
Germany has now on average the most expensive electricity for private households
in Europe
• Levies and taxes account for appr. 60% of the total electricity price
Climate-policies have various intended and unintended social
implications

7. 7
• The rising energy prices have led to an unequal social burden
• Rising prices work regressively, they have a stronger effect on households
with low income as opposed to higher earning households.
• Furthermore, certain advantages such as acquiring energy efficient appliances
or making use of subsidies or tax breaks with building renovations cannot be
utilised by low-income earners.
• In the public perception, these factors have led to an increasingly critical
approach to the current framework for the renewable energy expansion
• Transition issues regarding the social sustainability of the conversion to
renewable energy are coming into focus.
Unequal social burden of environmental policies are a real threat
to social cohesion

8. 8
Implications for energy poverty policies
Change of energy
consumption
patterns
Increase of energy
efficiency (tecnical
measures)
Positive environmental
incentive effects (Synergies!)
Socially just energy
transition
Adjustment of
available
incomes
Reduction of
energy demand
(Partly) reduction
of energy prices

9. 9
• Good News: Many possibles synergies among climate policies and
policies to alleviate fuel poverty (-> energy efficiency)!
• BUT: Also conflicting goals and trade-offs between certain policy
measures (e.g. social-tariffs, lump-sum benefits, smart-meters)
• Furthermore: Whats about the social impact of other climate policies
such as large scale buildings renovations etc.?
• Unfortunately: It is unrealistic that all objectives can be perfectly
balanced!
Whats next?

10. 10
• Social impacts of climate policies have to be considered more seriously
• Possible synergies for different policy objectives should be more emphasised
in the public debate
• Holistic policy-approaches to alleviate fuel poverty are necessary in order to
mitigate conflicting goals and trade-offs
• Well-though policy measures against fuel poverty can be part of a successful
strategy
• We need a socially sustainable energy transition!
Conclusions

11. 11
Any questions? 

12. adelphi
Alt-Moabit 91
10559 Berlin
T +49 (0)30-89 000 68-0
F +49 (0)30-89 000 68-10
www.adelphi.de
office@adelphi.de
11.09.2017 - Andreas Schneller