Klaus-Dieter Borchardt

Senior Research Fellow

Since 2020 Prof. Dr. Klaus-Dieter Borchardt is a Senior Energy Advisor at the European & Competition Law Practice in the Baker McKenzie Brussels office. Before, Klaus-Dieter worked for 33 years at the European Commission, including four years at the European Court of Justice. During his 33 years at the European Commission, Klaus-Dieter Borchardt was instrumental in many major developments in EU Law and EU Energy Law and Policy. He spent inter alia 12 years in the Commissions’ Legal Service where he was responsible for state aid, internal market and agriculture and 9 years in the Commissions Directorate for Energy. He played a key role in the evolution of the legal framework of the European state aid control, notably the establishment of private market investor tests. He was the central EU official in the recent reform of the European electricity market design as part of the ‘Clean Energy for all Europeans’ package. He chaired the Connecting Europe Facility’s evaluation committee as well as the European gas, electricity and infrastructure fora. When he left the European Commission, he was Deputy Director-General for Energy responsible for the coordination of all three energy directorates (Policy Development, Internal Energy Markets, Renewable Energy and Energy Efficiency) as well as for the energy dialogues with third countries.

Klaus-Dieter Borchardt is a Teaching Professor at the Bavarian Julius-Maximilians-University – Würzburg, Germany (since 2001), and Adjunct Professor at the Copenhagen Business School (since 2022).

 

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                    [post_content] => Nowadays, there is a growing focus on Carbon Capture, Use and Storage (CCUS) in the European Union (EU) in the context of reaching its targets set out in the EU Climate Law. According to modelling by the Commission and the International Panel on Climate Change (IPCC), in order to meet its climate objectives, the EU will need to capture and store at least 450 Mt/y of CO2, including direct air capture as well as industrial CO2, by 2050.  Indeed, the IPCC in its recent report, made clear that carbon capture and storage is a critical decarbonization strategy in most mitigation pathways.

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                    [post_content] => The European Green Deal, launched in 2019, is the European Union’s flagship decarbonization strategy. The Green Deal has put the EU on a path to climate neutrality by 2050, through the decarbonization of all sectors of the economy. In its new Climate Target Plan for 2030 the European Commission (Commission) has set an intermediate target of at least 55 per cent green house gas (GHG) emission reduction to be reached through a number of legislative actions. In July 2021, the Commission proposed its Fit for 55 package, followed in October 2021 by the proposal of the Gas and Hydrogen package which encompassed all the measures necessary to achieve the decarbonization targets. If adopted, it is the most ambitious and coherent decarbonization package ever seen. However, since 2021, the EU has experienced an unprecedented energy crisis with economic, social and geopolitical impacts, caused first by a strong increase in global demand after the lifting of COVID-19 restrictions and then dramatically exacerbated by Russia’s invasion of Ukraine, which led to substantially lower levels of pipeline gas deliveries to the EU and increased disruption of gas supply. The skyrocketing energy prices put enormous pressure on politicians which initially led to national actions such as the Iberian gas reference price model and the Greek regulated price mechanism, but was then followed by a complete set of emergency measures at EU level. Although the work of the EU co-legislators (the European Parliament (EP) and the Council) on the Fit for 55 package and the gas and hydrogen package continued, it is clear that the necessity for interventions at national and European level to combat the energy crisis have deflected attention away from energy transition legislation towards emergency measures. This Comment asks whether this is only a temporary phenomenon or whether this shift in attention and the deep market interventions of the emergency measures will have a more long-term impact on the functioning of the European internal energy markets.
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Until recently, aside from financing a handful of CCUS projects under the ETS Innovation Fund, the Commission has taken a rather passive role on this technology compared to others, arguing that the ETS alone should drive the decarbonization development plan. However, a number of recent actions demonstrate an important political change in direction in recent months: the Commission has upscaled the CCUS Forum and has committed to accelerate the work on CCUS at EU level. It has further highlighted the need to create an internal market for CCUS and has committed to adopting – similar to the Hydrogen Strategy - a CCUS Strategy before the end of 2023 that will accelerate the development of CCUS.

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Latest Publications by Klaus-Dieter Borchardt