Integrated National Energy And Climate Plan For Austria

Integrated National Energy andClimate Plan for Austria2021-2030pursuant to Regulation (EU) 2018/1999 of the European Parliament andof the Council on the Governance of the Energy Union and ClimateActionVienna, 18 December 2019

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ContentsPart 1 . 5SECTION A: NATIONAL PLAN . 61.OVERVIEW AND PLAN DEVELOPMENT PROCESS . 61.1. Summary . 61.2. Current policy and administrative structures . 181.3. Stakeholder consultation at national and EU level – outcomes . 551.4. Regional cooperation in drawing up the plan . 592. NATIONAL TARGETS AND OBJECTIVES . 712.1. Dimension 1: Decarbonisation . 712.2. Dimension 2: Energy efficiency . 832.3. Dimension 3: Security of energy supply. 882.4. Dimension 4: Internal energy market . 912.5. Dimension 5: Research, innovation and competitiveness . 983.POLICIES AND MEASURES . 1053.1. Dimension 1: Decarbonisation . 1063.2. Dimension 2: Energy efficiency . 1703.3. Dimension 3: Security of energy supply. 1753.4. Dimension 4: Internal energy market . 1773.5. Dimension 5: Research, innovation and competitiveness . 187SECTION B: ANALYTICAL BASIS . 2084. Current situation and projections ‘with existing measures’ (WEM) . 2084.1. Projected evolution of main exogenous factors influencing energy system andGHG emissions . 2084.2. Dimension: Decarbonisation . 2104.3. Dimension: Energy efficiency . 2164.4. Dimension: Security of energy supply . 2264.5. Dimension: Internal energy market . 2354.6. Dimension: Research, innovation and competitiveness . 238Integrated National Energy and Climate Plan for Austria3 of 268

5. Impact assessment of planned policies and measures . 250Part 2 .265List of parameters and variables to be reported in Section B of National Plans . 265Legal information . 266Integrated National Energy and Climate Plan for Austria4 of 268

Part 1Integrated National Energy and Climate Plan for Austria5 of 268

SECTION A: NATIONAL PLAN1.OVERVIEW AND PLAN DEVELOPMENT PROCESS1.1. Summaryi.Political, economic, environmental and social contextAustria is a federal republic built on the economic principles of the social market economy.Balancing the interests of employers and employees plays an essential role in political discourse,although the ‘social partnership’ has undergone changes in recent years. The standard of living isvery high, even by European standards, and the long-term average unemployment rate isrelatively low. Social benefits and the progressive taxation of wages and income have anequalising effect on society. Since 1990, population growth in Austria has acceleratedsignificantly, in particular due to immigration from EU Member States and third countries. Thisgrowth is concentrated primarily in metropolitan areas, while some of the surrounding rural areasare exhibiting downward population trends.The environmental situation in Austria can be described as positive in terms of essentialparameters such as water quality, air quality (with the exception of certain regions) and the useof renewable energy resources. Furthermore, by European standards a very high percentage ofagricultural land is farmed in an ecological or environmentally appropriate way, and there are veryhigh levels of sustainable forest use. There are, however, areas for improvement, such as thedevelopment of transport, in particular in conurbations and along transit routes, and theaccompanying immission levels. This problem area is being addressed, including on a long-termbasis, through the continuous development of rail infrastructure. Currently, Austria already hasthe highest share of rail transport within the European Union.Austria is also currently intensifying its efforts to achieve CO2 savings in the area of privatetransport. The Tax Reform Act 2020 [Steuerreformgesetz 2020] that has been adoptedimplements additional ecological measures in the area of mobility and introduces the taxation ofsustainable fuels. The intention, among other things, is to provide a price signal as early as thepoint at which the purchase decision is made by introducing a registration tax that is dependenton price and emissions (with a tax rate of up to 32% and a penalty for particularly emissionintensive passenger cars). A CO2 component will also be introduced in the area of engine-relatedinsurance tax (current motor vehicle tax), thereby steering a course towards low-emission motorvehicles. In addition, electric bicycles will become eligible for input tax deduction and taxincentives will be provided for biogas, sustainable hydrogen and liquefied natural gas.Integrated National Energy and Climate Plan for Austria6 of 268

Together with companies and private households, public budgets are the main sources offinancing for measures focussing on the climate and energy. Sustainable public finances thuscreate the room for manoeuvre needed to develop strategic options for meeting climate andenergy targets. In view of the long-term challenges of decarbonisation, the Austrian governmentis therefore committed to sustainably consolidating public budgets and permanently reducingthe general government debt. In order to do so, it is necessary to critically examine whether theexisting expenditure and revenue structure is compatible with the climate and energy targets. Itis also important to minimise the risk to public budgets from missed or delayed action (cost ofinaction), as this is counterproductive to the objective of permanently reducing generalgovernment debt. For the first time since 1954, the government will spend less than it receives.This means the end of the debt management policy, without introducing any new taxes. Thesesustainable budget and tax policies must also be pursued for the rest of the 2020s. In the interestsof budgetary sustainability, it is therefore necessary to ensure that a system of reciprocalfinancing is provided for measures that are relevant in terms of budgets and tax policy.In several regions, land use is a critical issue. Alongside population trends and economicprosperity, the primary reason for this is the lack of adequate spatial planning tools at local andregional level.In connection with the economic, environmental and social context of the plan, the UN’sSustainable Development Goals (SDGs) are also of paramount importance. These goals are to beimplemented in Austria through mainstreaming in all policy areas, thus ensuring sustainableeconomic, environmental and social development, while explicitly taking into account theprinciple of budgetary sustainability.As one of the basic prerequisites for sustainable development, real equality between the gendersis anchored in the SDGs as a cross-cutting issue. These state that the 17 Sustainable DevelopmentGoals are geared towards achieving gender equality, and achieving this equality will in turn makea decisive contribution to the progress of all of the goals. One of the key factors is that womenhave political participation and decision-making power at all levels on an equal footing with men.In the Austrian constitution, the federal government, provinces and municipalities havecommitted themselves to real gender equality. Austria implements this through the strategy ofgender mainstreaming, which involves taking into account the impact on both sexes from theoutset of all decision-making processes. The aim is to achieve equality between women and menby keeping the gender perspective in mind in all areas and at all levels of policy making andcorresponding action. Austria is thus fulfilling its obligations at national, European andinternational level.As a result, the economic, environmental and social dimensions are taken into equalconsideration both in the National Energy and Climate Plan and in the Federal Government’sIntegrated National Energy and Climate Plan for Austria7 of 268

integrated Climate and Energy Strategy.ii. Strategy on the five dimensions of the Energy UnionIn May 2018, the Austrian Federal Government adopted its Climate and Energy Strategy(#mission2030). The Strategy aims to meet the Sustainable Development Goals in the areas ofgreenhouse gas reduction, renewable energy and energy efficiency by 2030, in line with theobjectives of the European Union. Security of energy supply, competitiveness, affordability(including budgetary sustainability considerations) and research and development complete theaims of the Strategy, making it largely consistent with the five dimensions of the Energy Union.The Strategy not only forms the basis for Austria’s National Energy and Climate Plan (NECP) inaccordance with the Regulation of the European Parliament and of the Council on theGovernance of the Energy Union and Climate Action1, but also provides the medium- and longterm framework for transforming the energy system in line with the goals of the Paris Agreementon climate change. Long-term decarbonisation must be used in the best possible way in terms ofthe eco-social market economy, as well as from an economic, environmental and socialstandpoint. Accordingly, the implementation of these long-term objectives does not denote aloss of prosperity, but must be shaped in such a way as to result in a highly successful economic,environmental and social model of a resource-efficient economy. For this to happen, all relevantprovisions must be taken in the vision for 2030 and stranded costs and lock-in effects must beavoided.1OJ (EU) L 328 of 21.12.2018, p. 1.Integrated National Energy and Climate Plan for Austria8 of 268

iii.Summary table showing the main objectives, together with policies and measuresTable 1: Main objectives and action areas of the NECPObjective ectedMain objectives and measures affecting the decarbonisation dimensionReduction of GHGemissions (non-ETS)by 36% compared to2005TransportGHG sectorcontribution:-7.2 million t CO2equivalent compared to2016 (total contribution)Strengthen and develop publictransport, including electrificationand mobility managementproposalsPublic ication andgradual phasing out ofcounterproductiveincentives and subsidiesDecarbonisationEnergy efficiencyMobility management forbusinesses, towns and cities,municipalities, regions andtourismInfrastructureRaising awarenessFundingDecarbonisationEnergy efficiencyIncrease walking and cyclingInfrastructuredevelopmentRaising awarenessFundingDecarbonisationEnergy efficiencyGoods transport: shift from road torailFundingDecarbonisationEnergy efficiencyE-mobility in private transportFunding forinfrastructure andvehicle purchaseRegulatory precedenceR&DDecarbonisationEnergy efficiencySecurity of supplyIntegrated National Energy and Climate Plan for Austria9 of 268