•Where foreign and energy policies meet: Slovakia's bumpy road to green economy •Pavol Szalai, EURACTIV Slovakia •szalai@euractiv.sk, +421-908-391-245 • • •A few questions for the start Foreign policy -What role for the Foreign Ministry? -What role for the other state actors? -What if lack of political support? - What interaction with energy policy? What interaction with domestic politics? - • •Introduction: The campaign “We are forest” Facebook of Erik Baláž • •Biomass in Slovakia Slovak Energy Annual, 2017 • •The outline Case studies: 1.Power sector: Away from coal 2.Transport sector: Towards e-mobility • •What to keep in mind Document: Draft Strategy of Environmental Policy of the Slovak Republic by 2030 (11/2017) Quote: „The Energy Union is about more than energy and climate alone; it is about accelerating the fundamental modernisation of Europe's entire economy, making it low-carbon, energy and resource efficient, in a socially fair manner.“ Maroš Šefčovič, European Commission Vice-President in charge of the Energy Union, February 2017 Obrázok, na ktorom je osoba, muž, držiaci, vonkajšie Popis vygenerovaný s veľmi vysokou spoľahlivosťou TASR • •1. Power sector: Away from coal Installed capacity Slovak Energy Annual, 2017 • •1. Power sector: Away from coal Power production Slovak Energy Annual, 2017 • •1. Power sector: Away from coal Nováky Power Plant -Installed capacity: 266 MW -Fuel: domestic lignite -“General economic interest” -Subsidies: 120 M EUR in 2015 -Direct: electricity bills (95 M) -Indirect: excise duty tax (15 M) -Other: aid for closing down mines - Obrázok, na ktorom je obloha, zem, vonkajšie, budova Popis vygenerovaný s veľmi vysokou spoľahlivosťou Slovenské elektrárne • •1. Power sector: Away from coal Coal phase-out -Domestic public pressure: NGOs, companies -European Commission: carrots and sticks -State aid probe into subsidies -New emission limits as of 2021 -Coal Regions in Transition Platform -JRC study advantages of closing down Nováky Obrázok, na ktorom je osoba, vnútri, stena, muž Popis vygenerovaný s veľmi vysokou spoľahlivosťou TASR • •1. Power sector: Away from coal Institutional agreement: Action Plan by June 2018 Political positions: cacophony “I don’t know anything of closing the mines. That is some kind of nonsense. I absolutely refuse any declarations on closing mines, I have nothing to do with it.“ Prime Minister Robert Fico, February 2018 Obrázok, na ktorom je osoba, ozdoba hlavy, oblečenie, budova Popis vygenerovaný s veľmi vysokou spoľahlivosťou TASR • •2. Transport sector: Towards e-mobility Final energy consumption EC Obrázok, na ktorom je snímka obrazovky Popis vygenerovaný s vysokou spoľahlivosťou • •2. Transport sector: Towards e-mobility Gross inland energy consumption EC • •2. Transport sector: Towards e-mobility Road transport emissions EEA Obrázok, na ktorom je snímka obrazovky Popis vygenerovaný s veľmi vysokou spoľahlivosťou • •2. Transport sector: Towards e-mobility Road transport emissions -Half of all NOx emissions -With biomass: -Major reason for damaging health -Premature death of 5,600 people/y -“Lost years” cost 1.95 bn EUR (can be decreased by 450 M EUR) - TASR Obrázok, na ktorom je obloha, vonkajšie, továreň, strom Popis vygenerovaný s veľmi vysokou spoľahlivosťou • •2. Transport sector: Towards e-mobility Electric vehicles -2,500 out of 1,950,000 passenger cars (2017) -Less numerous than LPG + gasoline (2015) -335 publicly accessible charging points Nissan USA Obrázok, na ktorom je cesta, auto, vonkajšie, budova Popis vygenerovaný s veľmi vysokou spoľahlivosťou • •2. Transport sector: Towards e-mobility Automotive industry in Slovakia -1 M cars produced, 5.4 M inhabitants (2016) -World’s biggest car producer in per-capita terms -Less numerous than LPG + gasoline (2015) -“Makes the economy vulnerable” (European Commission) -Only 1 out of 3 (4) plants produces electric cars -No production plant for batteries -2,000 jobs in R&D out of 250,000 -Multinationals don’t have R&D in Slovakia - - Volkswagen Obrázok, na ktorom je auto, obloha Popis vygenerovaný s veľmi vysokou spoľahlivosťou • •2. Transport sector: Towards e-mobility Institutional attempts for improvement -Creation of low-emission zones in cities (2017+) -CO2 emissions as a factor of registration fee (2017+) -Funding scheme for buyers of e-vehicles worth 5.2 M EUR (2016-2017) -Funding scheme for cities and regions buying e-vehicles worth 1 M EUR (2018) Plans -Funding scheme for cities and regions building infrastructure -Equal environmental taxation of gasoline and diesel, lower taxes for alternative fuels - Scenarios for 2020 -Conservative: 10,000 -Technological: 25,000 • •2. Transport sector: Towards e-mobility European Commission driving the change -Alternative Fuels Directive (2014) -Infrastructure construction funded by CEF -Political leader: European Commissioner Maroš Šefčovič Obrázok, na ktorom je osoba, muž, držiaci, vonkajšie Popis vygenerovaný s veľmi vysokou spoľahlivosťou TASR • •2. Transport sector: Towards e-mobility Former Slovak Prime Minister calls for prudence “In times, when some global players adopt a flexible approach to the objectives of green economy despite their international commitments, I cannot but call for a self-reflective prudence to the objectives of the Energy Union, especially in their application in the industry.” EU should care for its own “competitiveness” in combustion-engine production. Prime Minister Robert Fico, November 2017 TASR Obrázok, na ktorom je cesta, vonkajšie, ulica, jazda na koni Popis vygenerovaný s veľmi vysokou spoľahlivosťou • •Conclusion: Hope for a change? Slovak institutions -No leaders, followers -Acting under pressure from -Domestic actors -European institutions - - EC Obrázok, na ktorom je osoba, oblek, muž, vnútri Popis vygenerovaný s veľmi vysokou spoľahlivosťou • •Conclusion: Hope for a change? New government -Peter Pellegrini, the digital leader, becomes Prime Minister -László Sólymos, the Environment Minister, becomes Vice-Prime Minister Possible political instability... - Aktuality.sk Obrázok, na ktorom je osoba, oblek, budova, oblečenie Popis vygenerovaný s veľmi vysokou spoľahlivosťou • •Debate Slovakia’s energy and transport transition in foreign policy Institutional setup: What is the role of Slovakia’s foreign ministry and other ministries? What added value can foreign policy bring to domestic-oriented policies? Larger political environment: What should be the role of non-state actors like NGOs and businesses? Who are the relevant domestic and international actors? Ambiguous foreign policy: How can institutions handle the predetermined policy goals without sufficient political backup, in political instability or even with political divergence inside the government?