Directorate General for Energy and Transport REEEP Workshop Vienna, 6 April 2006 The European Regulatory Framework: Current and Future Policies 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 vital. l Estimated cost-effective final efficiency potential ~2% /year. l Savings target ESD: 1% (final )/year (9 yrs.); Green Paper: 20% by 2020 ( primary). l Many examples of individual investments (e.g. lighting) with energy savings of >50%. l Improving energy efficiency is the most cost-effective and expedient way to combat climate change and to improve security of supply.

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 income & wealth (e.g. fuel poverty & development).

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 Proposals from Action Plan I (2000)→Results 1.Buildings Directive→EPBD 2.Public Procurement Dir.→ in EPBD/ESD/C.V. 3.Energy Services Directive/IRP/DSM→ESD 4.CHP Directive→ CHP Directive 5.Public Awareness Campaign→ SEE 6.Best Practices Initiative→ in EPBD/ESD/Progrs. 7.Amended Directive 93/76→ EPBD + ESD

Directorate General for Energy and Transport Proposals from Action Plan I→results (cont.) 8.EU Energy Audit Scheme→ EPBD + ESD 9.Labelling expansion→ study 92/75 + ECO-Design 10.Education & training→EPBD + ESD (cert.experts) 11.MERs→ ECO-Design Directive 12.EE integration in other policies→taxation, structur- al & cohesion funds, State Aid Guidelines, RTD 13.EU Technology Procurement→ pilots only

Directorate General for Energy and Transport EU energy efficiency policy instruments used and/or in force Strategy for Energy Efficiency (1998)  Action Plan (2000) ECCP I (2000); ECCP II ( )  ECCP II Report(May 2006) Labelling of appliances Directive & Implementing Directives (8) Minimum efficiency requirements (3 Directives) Energy performance of buildings Directive (EPBD) Cogeneration Directive (CHP) Directive on Eco-Design Directive on End-use efficiency & energy services (May 2006) Proposed Directive on Clean & energy-efficient vehicles Green Paper on Energy Efficiency(2005)  Action Plan(6/2006) Support programmes (RTD FWP demo & IE-E) and SEE State aid, structural/cohesion funds, taxation, SME, ENV… Renewables: RES-E Dir.;Biofuels Dir.; BAP; IAs; Prog. Reps.

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 with standards (MERs), regulations, voluntary agreements (supply push). 2. Actions to increase demand & lower costs for energy-efficient products & services (information, certification, labelling, procurement guidelines, EPC)  critical mass (demand pull). 3. Actions to develop functioning markets for energy services & energy-efficiency (stds., internal mkt.). 4. Actions promoting stable investment climate (e.g. EE Action Plan & Nat. EE Action Plans, financial instruments, EPC, TPF, etc.). 5. Actions to lower transactions costs of obtaining information for consumers by labelling, certification, authorisation.

Directorate General for Energy and Transport Key areas for policy instruments & measures to further improve energy efficiency and energy intensity 6. Improved monitoring & reporting of implementation in M.S. (National E.E. Action Plans, Commission Reviews). 7. Harmonised measurement of savings (potentials & improvements), with bottom-up, top-down systems & benchmarks. 8. Actions to increase public awareness of benefits of energy efficiency  to change life styles. 9. Improved implementation of acquis. 10. Improved financing of energy efficiency in co-ordinated scheme. 11. Focused actions on transport, energy transformation & international dimension.

Directorate General for Energy and Transport Examples of Community support activities: On-going IEEA - funded EPBD projects