For the first time, the IEA has reviewed the energy policies of the European Union which shape the energy use of almost 500 million citizens in 27 EU member countries. A unique entity governed under complex and almost constantly evolving structures, the EU constitutes a challenge for energy policy makers. Its energy policy has a global impact, not only because of its 16% share of world energy demand, but also because of the EU leadership in addressing climate change.

Strong policy drives are underway in the EU to achieve the completion of the internal energy market, increase renewable energy supply, reduce CO2 emissions and make the EU more energy-efficient. Concerns about security of supply have also led to a greater focus on improved energy relations with supplier countries, and new institutional structures are being put in place. How much progress has been made in the field of security, internal market and external energy policies? And in which of these areas has the EU already implemented a fully integrated policy? IEA Energy Policies Review: The European Union - 2008 addresses these questions and also analyses the impact of the most recent major EU policy measures, in particular the Energy & Climate Package of January 2008 and the 3rd Liberalisation Package of September 2007.

This book finds that both of these proposals are highly ambitious. But implementing them and reviewing both volume and allocation of energy R&D will be necessary to achieve a sustainable energy future in a fully competitive integrated EU energy market.