“Energy efficiency target and the EU Labelling Directive” Anni Podimata MEP, Vice President of ITRE Committee “Core Elements of European and national Energy efficiency policies"

Energy Efficiency Target  Council Conclusions on 21 st October 2009 Towards Sustainability: Eco Efficient Economy in the context of the post 2010 Lisbon Agenda and the EU Sustainable Development Strategy Invites… the Commission to …identify concrete measures and develop guidelines, with a view to mainstreaming eco-efficiency in the new Lisbon strategy post-2010 and providing strategic orientation to all relevant EU policies …. MS to …promote green public procurement in line with the indicative 50% target for MS to be reached in 2010 and work jointly with the COM to further develop criteria for green products and services and promote eco-innovative and green public procurement to stimulate the future market for green products, services and technologies…

Energy Efficiency Potential International Energy Agency (May 2009): switching to the best technologies available today would save at least 40% of residential electricity consumption in most appliances categories and additional savings are possible from the commercialization of technologies that are under development. Study on the Energy Savings Potentials in EU Member States, Candidate Countries and EEA Countries, Final Report for the European Commission (March 2009): the opportunities for energy savings are significant: the estimated energy consumption reduction potential in 2020 is 19% for industry, 20% for transport and 30% for the households and services sector Action Plan for energy Efficiency: realizing the potential (2006) : the direct cost of EU's inability to use energy efficiently amounts to more than 100 billion euros annually by Realising the 20% potential target of 2020, will result in large energy and environmental benefits: CO2 emissions would be reduced by 780 Mt CO2 with respect to the baseline scenario International Energy Agency (May 2009): switching to the best technologies available today would save at least 40% of residential electricity consumption in most appliances categories and additional savings are possible from the commercialization of technologies that are under development. Study on the Energy Savings Potentials in EU Member States, Candidate Countries and EEA Countries, Final Report for the European Commission (March 2009): the opportunities for energy savings are significant: the estimated energy consumption reduction potential in 2020 is 19% for industry, 20% for transport and 30% for the households and services sector Action Plan for energy Efficiency: realizing the potential (2006) : the direct cost of EU's inability to use energy efficiently amounts to more than 100 billion euros annually by Realising the 20% potential target of 2020, will result in large energy and environmental benefits: CO2 emissions would be reduced by 780 Mt CO2 with respect to the baseline scenario

Energy Efficiency Target  Energy Efficiency Action Plan....hoping for the binding target of 20%  delay of submission of the NEEAPs by some MSs  lack of political commitment by MSs to measures aimed at increasing energy savings  lack of a standardized format, which finally led to different structure of NEEAPs and incomparable information between MSs  a methodological gap between the calculation of energy saving targets and the measures listed to achieve those  Energy Efficiency Package  Recast of the Energy Performance of Buildings Directive,  Recast of the Energy Labelling Directive  Labelling of Tyres Directive

Energy Efficiency Target  Energy Efficiency Action Plan & Energy Efficiency Package can and should create the necessary synergies for  boosting energy efficiency policies in Europe, in order to achieve the 20% target,  reducing dependence from energy imports and guaranteeing security of energy supply,  reinforcing the competitiveness of EU economy,  creating new job opportunities,  essentially contributing to the reduction of CO2 emissions,  reducing energy poverty and comforting citizens and SMEs  and in general paving the way to the transition towards a sustainable and eco- efficient economy.

But still … EU falls short of its 2020 target to slash energy consumption by 20%, instead estimations give only 11% by the deadline (Euractive). We need … mandatory and concrete energy-saving obligations on member states, harmonized rules for the measurement of energy savings and the targets could be either sector- specific or cover all aspects of the economy.

Energy Efficiency Potential...why it is not exploited to the full ?? energy efficiency is by its nature a result from numerous small actions at the final consumption level and therefore there is a need for establishing an efficient way of measuring it. energy prices and the environmental benefits have so far been the main drivers for energy savings. However, price do not yet fully internalize the environmental, social and economic costs. benefits from energy security are not valued on markets. a dynamic energy savings market has not yet fully developed. public awareness on the benefits of energy saving, is still too low. etc....why it is not exploited to the full ?? energy efficiency is by its nature a result from numerous small actions at the final consumption level and therefore there is a need for establishing an efficient way of measuring it. energy prices and the environmental benefits have so far been the main drivers for energy savings. However, price do not yet fully internalize the environmental, social and economic costs. benefits from energy security are not valued on markets. a dynamic energy savings market has not yet fully developed. public awareness on the benefits of energy saving, is still too low. etc.

Europe has a considerable potential of energy efficiency. By fully exploiting this potential EU could foster social cohesion, create new job opportunities, increase competitiveness of European industry and make easier the transition to a Sustainable and Low- carbon Economy. Working together for a Sustainable and Low- carbon Economy, Europe can maintain its leadership in the framework of climate change negotiations and fight in a cost effective way to heal its financial crises’ open wounds.

Energy Labeling Directive (ELD) - 92/75/EEC  has been in place for over seventeen years and is considered successful by both the consumer organizations and industrial sector.  energy labelling has contributed to annual energy savings of approximately 3 Mtoe, corresponding to emission reductions of 14Mt of CO2 annually, over the period Broadening the scope of the ELD to all energy-related products could lead to additional savings of some 27 Mtoe by 2020, corresponding to emission reduction of close to 80 Mt of CO2 in comparison to "business as usual“ (Impact Assessment SEC(2008)2861)  current EU labelling scheme is a success story that was copied by many other countries. Brazil, China, Iran, Israel and South Africa have all come up with similar labelling schemes.  many challenges and opportunities arise from the promotion of sustainable products, the support of the overall objective of the Communication on the Sustainable Consumption and Production and Sustainable Industrial Policy Action Plan.  has been in place for over seventeen years and is considered successful by both the consumer organizations and industrial sector.  energy labelling has contributed to annual energy savings of approximately 3 Mtoe, corresponding to emission reductions of 14Mt of CO2 annually, over the period Broadening the scope of the ELD to all energy-related products could lead to additional savings of some 27 Mtoe by 2020, corresponding to emission reduction of close to 80 Mt of CO2 in comparison to "business as usual“ (Impact Assessment SEC(2008)2861)  current EU labelling scheme is a success story that was copied by many other countries. Brazil, China, Iran, Israel and South Africa have all come up with similar labelling schemes.  many challenges and opportunities arise from the promotion of sustainable products, the support of the overall objective of the Communication on the Sustainable Consumption and Production and Sustainable Industrial Policy Action Plan.

Energy Labeling Directive (ELD) - 92/75/EEC The recast of the Energy Labeling Directive is mainly aiming at  extending its scope in two ways: firstly to allow the labeling of all energy related products in the household as well as in the commercial and industrial sectors and secondly to extend its implementation to all products that consume energy directly (e.g. television sets) or are responsible for the reduction of energy consumption (e.g. construction products).  enhancing consumer awareness in order to help them make sustainable choices  giving incentives to industry to keep pace with technology evolution and product innovation The recast of the Energy Labeling Directive is mainly aiming at  extending its scope in two ways: firstly to allow the labeling of all energy related products in the household as well as in the commercial and industrial sectors and secondly to extend its implementation to all products that consume energy directly (e.g. television sets) or are responsible for the reduction of energy consumption (e.g. construction products).  enhancing consumer awareness in order to help them make sustainable choices  giving incentives to industry to keep pace with technology evolution and product innovation

 public sector is a major buyer of energy using and energy saving products and it is critical that it leads by example, providing the industry and consumers with crucial confidence on the benefits of the label scheme.  The Commission and the EP supported mandatory public procurement in order to promote such measures that can guarantee energy efficiency benefits. The Council supported a totally voluntary scheme.  Final compromise: “ Contracting authorities shall endeavor to procure only such products which comply with the criteria of having the highest performance levels and belonging to the highest energy efficiency class”  public sector is a major buyer of energy using and energy saving products and it is critical that it leads by example, providing the industry and consumers with crucial confidence on the benefits of the label scheme.  The Commission and the EP supported mandatory public procurement in order to promote such measures that can guarantee energy efficiency benefits. The Council supported a totally voluntary scheme.  Final compromise: “ Contracting authorities shall endeavor to procure only such products which comply with the criteria of having the highest performance levels and belonging to the highest energy efficiency class” Energy Labeling Directive (ELD) – mandatory public procurement

 “Governments have responded… energy performance labels have been the most widely employed measures, frequently supported by government procurement policies, financial incentives (such as discounts and rebates) and general awareness raising programmes. The success of these highly targeted programmes is evident“ IEA  Financial incentives are the main tool that gives the right message towards consumers and manufacturers: “we want energy efficient products for an energy efficient european economy”.  MS are free to decide on the nature of the incentives they wish to use, but EU must encourage them to establish incentives aiming at bridging the gap between different EU member-states on energy efficient policies and motivate citizens of new MS to make the right choices in a cost effective way, providing them financial tools for a sustainable social structure.  “Governments have responded… energy performance labels have been the most widely employed measures, frequently supported by government procurement policies, financial incentives (such as discounts and rebates) and general awareness raising programmes. The success of these highly targeted programmes is evident“ IEA  Financial incentives are the main tool that gives the right message towards consumers and manufacturers: “we want energy efficient products for an energy efficient european economy”.  MS are free to decide on the nature of the incentives they wish to use, but EU must encourage them to establish incentives aiming at bridging the gap between different EU member-states on energy efficient policies and motivate citizens of new MS to make the right choices in a cost effective way, providing them financial tools for a sustainable social structure. Energy Labeling Directive (ELD) - incentives

 Public Awareness has to be our priority. Consumers deserve to have access to the necessary information that will enable them to make wiser and more energy efficient decisions. Furthermore taking into account the energy and environmental challenges that we face today there is an important added value in helping the consumers to form a conscious choice.  “ Any advertisement for a specific model of energy-related products covered by an implementing measure under this Directive includes, where energy related information or price is disclosed, a reference to the energy efficiency class of the product”  Public Awareness has to be our priority. Consumers deserve to have access to the necessary information that will enable them to make wiser and more energy efficient decisions. Furthermore taking into account the energy and environmental challenges that we face today there is an important added value in helping the consumers to form a conscious choice.  “ Any advertisement for a specific model of energy-related products covered by an implementing measure under this Directive includes, where energy related information or price is disclosed, a reference to the energy efficiency class of the product” Energy Labeling Directive (ELD) - mandatory Advertisement

Energy Labeling Directive (ELD) – label layout

 First Reading Parliament’s support on the:  closed A- G scale to be retained as the basic element of the label lay out,  regular rescaling,  validity period  Basic elements of the compromise  three additional classes,  the colour scale shall consist of no more than seven different colours from dark green to red. Only the colour code of the highest class shall always be dark green  review of the classification when a significant number of products reach the two most energy efficiency classes  First Reading Parliament’s support on the:  closed A- G scale to be retained as the basic element of the label lay out,  regular rescaling,  validity period  Basic elements of the compromise  three additional classes,  the colour scale shall consist of no more than seven different colours from dark green to red. Only the colour code of the highest class shall always be dark green  review of the classification when a significant number of products reach the two most energy efficiency classes Energy Labeling Directive (ELD) – label layout

just weeks before the Copenhagen Climate Conference, policy makers must seize the Energy Efficiency Opportunity. Market Factors must see the energy efficiency as the most promising alternative fuel source and increase market penetration of energy efficient technologies and products. Citizens have their role to play by raising energy-efficiency standards on their market choices and making rational their daily habits. just weeks before the Copenhagen Climate Conference, policy makers must seize the Energy Efficiency Opportunity. Market Factors must see the energy efficiency as the most promising alternative fuel source and increase market penetration of energy efficient technologies and products. Citizens have their role to play by raising energy-efficiency standards on their market choices and making rational their daily habits. Enhancing EU Energy Efficiency Policy CAN MAKE THE DIFFERENCE

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