[Premium] No More EU-Funded Pipelines, Plead MEPs

"There is no need for additional funding of new trans-European gas infrastructure," European Union parliamentarian (Social Democrat) Kathleen Van Brempt told NGW.

The European Parliament's Socialists and Democrats (S&D) group, of which she is vice-president, commissioned a study from Dutch economic policy consultant Trinomics which was published April 12. It shows that in recent years there has been enough investment in gas infrastructure to secure a sufficiently diverse gas supply for the EU member states.

To identify crucial energy infrastructure projects that deserve European support, the European Commission (EC) relies on a list of Projects of Common Interest (PCI). "These key infrastructure projects should not only link the energy systems of member states, but also help us reach our climate and energy objectives: affordable, secure and sustainable energy for all citizens. In the long term they should contribute to the decarbonisation of our economy in accordance with the Paris Agreement," Belgian MEP Van Brempt argues. 

Diversity of supply

Projects on the PCI list can count on accelerated permit granting, improved regulatory treatment and access to public subsidies. During the last four years more than 60% of European funding under the so-called Connecting Europe facility went on gas infrastructure: pipelines or LNG import facilities. "Some €1bn of taxpayers' money was allocated to these gas projects. This has beyond a doubt contributed to our energy security and to making our energy landscape more resilient and less dependent on single suppliers. It has helped to prevent certain member states from being held hostage by one energy supplier," she said without mentioning Russia by name. 

Today the EC is working on a new PCI list. "We must ensure that taxpayers' money doesn't serve as a blind subsidising tool for fossil fuel companies. The Trinomics study confirms that all member states except for Malta and Cyprus will have a minimum of three different gas supply routes by 2022. There is no need for additional funding of new trans-European gas infrastructure. On the contrary, extra subsidies might lead to over-investments which could produce a technological and carbon ‘lock-in’ effect that gives rise to stranded assets and undermines the energy transition to a more sustainable energy model. The study also advises that public funding should only be granted to projects that are in line with decarbonisation," she said.

Future demands overestimated

"European commissioner for energy Miguel Arias Canete has informed us that most of the key gas PCIs are already being implemented. This makes us hopeful for a better alignment of the new PCI list with our climate goals. Although we should be watchful for the fossil industries lobby work. Not only are the EC's assessments still based on outdated gas demand expectations – overestimating the demand by 35% – but gas infrastructure projects which were removed from the old PCI list are suddenly re-emerging on a list of priority Projects of Energy Community Interests. Therefore, we call on the EC to make an end to fossil fuel subsidies and speed up the decarbonisation of our economy," she said. The study can be found here.