Directorate General for Energy and Transport ECCP II Stakeholders` Meeting 24 October 2005 Energy Efficiency in the EU Randall Bowie DG Energy and Transport

Directorate General for Energy and Transport I Background IIPresent: Current policies and measures IIIFuture: The Best Way Forward?

Directorate General for Energy and Transport Key background factors l The energy sector produces 94% of EU CO2 & 78% of GHG emissions. l EU energy import share 50% and rising. Security of supply important. l Improving energy efficiency is the most cost-effective and expedient way to combat climate change and to improve security of supply. l Energy efficiency improvements have significant positive effects on other important policy areas.

Directorate General for Energy and Transport Positive synergy effects of improving energy efficiency l On the environment (local, EU, global) l On security of supply l On competitiveness, economic development and employment l On regional & urban policy and on cohesion l On foreign trade balance: energy imports ↓↓ energy technology exports ↑↑ l On health and safety policies: “The best kWh is the one not produced.” l On income & wealth (environment fights back; fuel poverty & development) Energy efficiency objectives go hand-in-hand with other policy objectives if integrated, co-ordinated and knowledge-based.

Directorate General for Energy and Transport Contribution of energy efficiency to final energy consumption

Directorate General for Energy and Transport Energy intensity in the EU Member States

Directorate General for Energy and Transport Energy intensities in EU 15; average percentage change/year

Directorate General for Energy and Transport Potentials for energy efficiency improvement Estimated real average cost-effective energy efficiency improvement potential ~2% /year for at least 9 consecutive years (final). Energy Services Directive: 1%/year (final); Green Paper: 20% by 2020 ( primary). There are many examples of individual investments (e.g. lighting) that provide energy savings of >50%

Directorate General for Energy and Transport Proposals from ECCP I (2000): WG I 1.Buildings Directive √ 2.Public Procurement Directive (integrated 2 ) 3.Energy Services/DSM Directive √ 4.CHP Directive √ 5.Sustainable Energy Europe Campaign √ 6.Best Practices Initiative (partially) 7.Amended Directive 93/76 (integrated)

Directorate General for Energy and Transport Proposals (cont.): 8. Energy Audit Scheme (integrated) 9.Technology Procurement (not applied) 10. Education and Training (integrated) 11.Cross-cutting & horizontal measures √ WG II: Min. eff. stds., labelling, vol. agreements. √

Directorate General for Energy and Transport Instruments for EU energy efficiency policy: Instruments for EU energy efficiency policy: Directives & Communications Strategy for Energy Efficiency (1998)  Action Plan (2000) ECCP I (2000) Labelling of appliances Directive & Implementing Directives (7) Minimum efficiency requirements (3 Directives) Energy performance of buildings Directive (EPBD) Cogeneration Directive (CHP) Directive on Eco-design Proposed Directive on End-use efficiency & energy services Proposed Directive on Clean & energy efficient vehicles Green Paper on Energy Efficiency(2005)  Action Plan(2006) ECCP II (Oct March2006) Support programmes (RTD FWP demo & IE-E) and SEE State aid, structural funds, taxation, RTD, SME, agriculture…

Directorate General for Energy and Transport Key areas for policy instruments & measures to further improve energy efficiency and energy intensity 1. Actions to improve technical efficiency in energy supply and in energy end use (through further development of standards(HorzMERs), regulations, voluntary agreements…). 2. Actions to increase demand & lower costs for energy-efficient products & services (information, certification, labelling, procurmt guidelines, EPC).  critical mass 3. Actions to increase competition on markets for energy, energy services & energy-efficiency 4. Actions to provide correct and predictable energy price signals (& include external costs). 5. Actions to lower transactions costs by providing information (labelling, certification). 6. Actions to increase public awareness of benefits of energy efficiency  change life styles. 7. Actions to develop the market for real energy services. 8. Improved monitoring & reporting of implementation in M.S. (National E.E. Action Plans). 9. Harmonisation of measurements of savings potentials, benchmarks & E. E. improvements. 10. Co-ordination of ECCP I I & EU EEAP II (Mar 2006)  test new ideas.