Key drivers for industrial performance Herbert Aichinger European Commission DG Environment Directorate G Sustainable development and Integration Unit Industry

Putting energy efficiency into a wider context How are we doing? What is happening outside the EU? What are the internal EU drivers for greater efficiency? What solutions can the European Commission deliver?

Identifying problems…

We are doing fine…

…or at least better than others…

…so why should we care about greater energy efficiency? Worrying trends: Growing dependence on energy imports Growing demand from developing economies Remedying the greenhouse effect

Because absolute energy use is fairly stable…

…while our dependence on energy imports is growing.

Growing dependence EU Energy Outlook to 2020: Total primary energy consumption  +1% pa until 2010 and  +0.4% pa until 2020 Energy intensity  1.5% pa towards /3 of overall EU energy use imported by 2020 (<1/2 in 1995), gas gaining highest growth EU gas importers from Russia to face competition from China

China's total oil consumption doubled since Domestic oil production remained almost static, up barely 20% on The deficit filled by net imports of about 100 million tonnes - three times the level in Source: Oxford analytica Asia’s growing appetite Monthly oil imports 12-month centred moving average, USDm

The new member states Average GDP growth in 10 Acceding Countries = 3,6% per annum, EU15 only 2,2% Labour productivity growth in 10 Acceding Countries ( ) = 3,6 % p.a., EU15 only 1% Influx of Cohesion and Structural Funds: €8,9 billion in (of €21.7 billion to be allocated) Investment needs in environment field ca €100 billion euro

The new member states – major industrial sectors Industry share in total manufacturing, % 10 Accession Countries15 Current Member States Food products, beverages and tobacco 19,113,7 Basic metals and fabricated metal products 12,511,1 Electrical and optical equipment 10,212 Transport equipment11,313,6

Delivering solutions…

EU instruments for energy efficiency at different angles

EPER: basis for benchmarking Principal emissions (50 pollutants) and IPPC sources responsible Published every 3 years: first time February

Environmental Technologies Action Program: boosting competitiveness and environmental protection Increase and focus the effort in R&D programmes Technology platforms (Hydrogen, Water, Solar) Networks for technology testing Performance targets for key products and processes Financial instruments with appropriate risk sharing Review of State aid guidelines Review of Environmentally harmful subsidies Green public procurement Rising business and consumer awareness Provide targeted training Responsible investments in developing countries

Voluntary Measures: EMAS Energy efficiency guidelines for small and medium sized enterprises: Heating, lighting, ventilation, electric motors Goal definition, data collection, input-output analysis, sampling of indicators and definition of measures To be available by the end of

IPPC BREF on energy efficiency Considerable potential (all in all 12-14%) for cost- effective energy savings in IPPC plants IMPEL study (May 2000): there is little experience so far with energy efficiency provisions in integrated permits The Finnish Environment Institute has proposed a new IMPEL study The work on BREF will start 2005

Getting demand right – Green public procurement Buying green! – Handbook on environmental public procurement Energy efficiency as environmental factor to be put in technical specifications Products and services onment/gpp/guidelines.htm#han dbook onment/gpp/guidelines.htm#han dbook

Community support for innovation

Concluding remarks Energy demand will rise – internally and externally Increasing energy efficiency might be crucial for industrial competitiveness Rise in energy efficiency will depend on price signals and technological breakthrough The key guidance document will be BREF on energy efficiency Need to integrate energy-efficiency in other sectors (households, transport)