1. Achieving the EU 2020 targets: the role of buildings sector -Quick screening BPIE projects for effective EPBD implementation- Bogdan ATANASIU Bogdan.atanasiu@bpie.eu Brussels 12 May 2011

2. Trias energetica Reduce/limit the energy demand by implementing energy efficiency measures Use renewable sources of energy If necessary, use fossil fuels as efficiently possible

3. Competitiveness Climate change & Environment Security of supply Competitiveness: internal market, competition, interconnections (TEN-T), European electricity grid, research & innovation (clean coal, carbon sequestration, alternative fuels, energy efficiency, nuclear) Climate Change & Environment: renewable energy, energy &resource efficiency, nuclear, innovation & research, emission trading Security of supply: international dialogue, European stock management (oil/gas), refining capacity and storage of energy EU Energy Policy

4. EU 2020 targets Source: Presentation of J.M. Barroso to the European Council, 4 February 2011

5. EU´s building stock  Buildings’ (residential + commercial) share in Europe's energy end- use consumption is about 40 %  36% of EU CO2 emissions  9% of EU GDP  7-8 % of EU employment  Important cultural, historic, and economic value 501 million inhabitants living in ~ 170 million homes Once built, buildings last for decades Architectural protection of historic buildings Large market for the construction sector, appliances and equipment covered by EU minimum efficiency requirements, performance labels and other standards Business opportunities, especially for SMEs  Several studies indicate large potential for significant and cost-effective energy savings potential of 22% by 2020 and by 46% by 2030 compared to 2005 baseline (Fraunhofer et alea study).

6. Variety of EU housing stock CZ SW NL DE FR UK GR ES PT IT BE RO BUL LIT AU

7. Mtoe Savings potential in buildings by 2020 Vs. business as usual scenario Source: Wuppertal Institute/ WWF

8. EU policy for buildings’ energy performance EPBD (2002/91/EC) Definition of requirements for the energy performance of buildings Methodology for calculating the energy performance of buildings Scheme of assessing the energy performance of a building (EPC) Mechanism of regular inspections of heating & air conditioning systems Recast EPBD (2010/31/EC) New nearly zero energy buildings (nZEB) constructed after 2020 (public sector buildings in 2018). MSs to prepare national plans for nZEB. A harmonised calculation methodology to push MS minimum energy performance requirements towards cost-optimal levels For major retrofits the 1000 m² threshold is eliminated. Major renovations of the existing buildings and their technical systems must be at very low-energy standards (however no specific target be set for the renovation of existing buildings). A more detailed and rigorous procedure for issuing EPCs

9. 2011: new EU Energy Efficiency Action Plan Non-binding targets MS to set their own indicative targets EC to review progress in 2013 and propose binding targets for all MSs if it appears the 20% target will not be achieved. Public Sector Set an example Renovation rate to be doubled to at least 3 % per year Renovation should bring buildings up to level of the best 10% of national building stock Energy efficiency standards to be fully incorporated into public procurement. ESCOs Both the private and public sectors Legislative proposals to increase their role Training Improving training for architects, engineers, auditors etc. to meet implementation of technically demanding building solutions.

10. Implementation lagging behind EU Policy  Still focus on supply side (vs. energy efficiency) Large-scale retrofit  Financing Public Sector buildings  Financing, lack of expertise MS Financing  Impact of the financial and economic crisis Public authorities limited budget and programs Split incentive issue Industry: ROI issue, creation of lock-in effects Technical: Quality of renovations, lack of experience Technology ok to reach the political targets EPC’s  Theorectical large scale implementation, but many obstacles. Low number of issued EPCs, low public acceptance, low quality nZEBs  lack of common understanding, definitions and requirements, very different market and climate conditions across EU

11.  Non-profit association based in Brussels  Focus on energy efficiency in buildings throughout Europe  Founding partners: European Climate Foundation, Climate Works, eceee  Centre of expertise in buildings (technical expertise)  European center for a global best practice network  Targeted research, policy analysis & evaluation, support policy implementation, dissemination of information  Started to operate in February 2010 Buildings Performance Institute Europe

12.  Cost-Optimality publication - Methodology and challenges in assessing cost-optimal levels within the new Energy Performance of Buildings Directive  European Roundtable on financing EE in buildings and how to boost large scale retrofit ( November 16th 2010, Brussels)  Report on the status of EPC-s schemes in 12 member states  Country by country review of energy performance of the European buildings  Study about principles for Nearly Zero Energy buildings - Challenges and chances.  National taskforce in Romania (and probably a new other) BPIE Projects 2010-2011

13.  Publication created in support of the comitology process that started following the EPBD recast (Directive 2010/31/EU).  In cooperation with Ecofys  Target: internal and external stakeholders of this process  Explaining background, process and generic principles of the methodology.  Long version + Flyer (4 pager) Cost-Optimality

14. European Roundtable on Financing Energy Efficiency in European Buildings  Bring the various political and market actors together  Quick screen different EU funding programs and national financing schemes  Identify most promising approaches with the highest potential for larger- scale implementation  Debate how to concretely overcome existing barriers and stimulate a more active uptake by the markets  Identify priorities and action points on EU and Member State level  Support from high EU officials and MEP’s

15.  EPBD 2002/91/EC and Recast 2010/31/EU strengthen role of EPC-s as an instrument to create awareness for greater energy performance of buildings.  Goal of the study: provide an overview of EPC implementation (relevance, impact, and status ) in 12 selected MS and to determine barriers, market failures and success factors.  Recommendations, focus points, best practice examples.  Implementation is highly context related and varies widely among the Member States.  It should help the EU and MS in designing and optimising EPC schemes under the Directive. EPC’s – from design to implementation European report on current status

16. BPIE taskforce in Romania  To bring the various stakeholders in Romania together, establish a dialogue, define market barriers to overcome and finally to develop potential solutions that are adapted to the national market conditions.  Create a platform for knowledge sharing and debate Review (untapped) funding opportunities on national level and demonstrate how to get access  Define barriers and debate how to concretely overcome them to stimulate a more active uptake by the markets,  Identify priorities and action points at Member State level  How to make buildings retrofit happen in Romania? Roundtable and Kick off meeting for the RO taskforce, 24 March 2011

17.  To develop a comprehensive report on principles for nearly zero energy buildings.  Create cross-national understanding of: Principles, definition criteria& boundaries. Possible technical solutions and pathways from current building energy codes to the new target. Implications for national building markets.  10 May, Brussels: Stakeholders meeting consultation on the interim report Principles for Nearly Zero Energy Buildings - Challenges and Chances (July 2011)

18.  Need for a comprehensive review of all major aspects related to EPBD. To achieve the energy targets set by the EU, it is imperative to monitor and evaluate the current performance status of all buildings for all Member States.  Study of the benchmarks, indicators and matrices providing meaningful understanding of the building stock, market, chain and function.  Data collection on all buildings and their energy characteristics for all MS.  Analysis of the situation of each MS, trends, potentials, barriers and recommendations  Objective: guide policymakers on EU & MS level in terms of understanding the current situation and inform on real potential of reaching the desired EU targets. Country by country review (July 2011)

19. BPIE future plans Contributing to an increase implementation level of the existing policies Contributing to the improvement of the EU framework for energy performance of buildings Technical background supporting deep renovations of existing buildings and nZEB implementation Identifying solutions for better financing for energy efficiency in buildings Spreading the EU experience and best practice

20. Thank you! www.bpie.eu