With less than 10 days to go to the European Council governments are edging closer to a deal as this latest leak of the Council conclusions, dated 13 October, indicates. The key points are:

– 40% GHG target is now almost accepted with only a few governments seeking a lower target. The ETS is to deliver 40% reductions by 2030 from 2005 emissions and non-ETS sectors 30% reductions.

– The ETS linear reduction will move from 1.74% to 2.2% .

– Innovation will be supported by an NER400

–  1 or 2% of allowances will be given to support ‘high additional investment needs in low income Member States (GDP per capita1 below 60% of the EU average’ to modernise energy systems and promote energy savings.

– 10% ETS allowances will be distributed among countries whose GDP per capita did not exceed 90% of EU average in 2013 which equates to new member states.

– 27% RES target to be agreed whilst an “indicative” 30% energy savings target is to be agreed.

– Governance: Better and more streamlined governance systems will be introduced to manage RES and energy savings to “increase transparency and predictability for investors by inter alia systematic monitoring of key indicators for a competitive, secure and sustainable energy system.”