1. © EuroACE 2007 Job Creation Potential of Energy Efficiency in Buildings Jenny Holland European Alliance of Companies for Energy Efficiency in Buildings

2. © EuroACE 2007 What is EuroACE? The European Alliance of Companies for Energy Efficiency in Buildings Founded in 1998 by 20 of Europe’s leading companies involved with the manufacture, distribution and installation of energy saving goods and services EuroACE works together with the European institutions to help Europe move towards a more sustainable pattern of energy use in buildings, thereby contributing significantly towards reducing carbon dioxide emissions

3. © EuroACE 2007 Current EuroACE membership Acciona Aereco Armacell International BING BPB CRH Danfoss Grundfos Honeywell Hunter Douglas Huntsman Polyurethanes Illbruck Kingspan Insulated Panels Knauf Insulation Paroc Philips Lighting Pilkington Rockwool International Saint-Gobain Isover Siemens Skanska URSA VELUX A/S

4. © EuroACE 2007 Full range of energy saving products: Insulation Heating/cooling controls and equipment Shading Glazing Lighting Ventilation

5. © EuroACE 2007 Total EU turnover: 36,860 million euros Total EU employment: 173,557 people The Tip of the Jobs Iceberg

6. © EuroACE 2007 ACE-led Study: “National and local employment impacts of energy efficiency investment programmes” [European Commission-funded, 2000] 44 case studies of actual energy efficiency investment programmes in 9 EU member states Programmes covered residential, commercial and industrial sectors

7. © EuroACE 2007 Types of Programme: Fiscal, e.g. tax rebates, grant schemes Regulatory, e.g. building standards Information Other, e.g. third party financing, regional programmes

8. © EuroACE 2007 All 44 programmes undertaken for reasons other than employment generation BUT 38 out of 44 programmes generated additional jobs

9. © EuroACE 2007 Job Creation: Every 1 million euros of investment created between 8 and 14 person years of employment (at 1995 prices) Cost per job: Between 71,000 euros per job per year and 110,000 euros per job per year

10. © EuroACE 2007 Sectors: Residential – more jobs, but energy savings less cost-effective Commercial – fewer jobs, but energy savings more cost-effective Industrial – mid-range employment gains, but energy savings very cost- effective

11. © EuroACE 2007 Policies: Fiscal – high employment gains (but high Government expenditure) Regulatory – medium employment gains (medium-low Government expenditure) Information – low employment gains (low Government expenditure)

12. © EuroACE 2007 Types of employment: In buildings – mostly manual, e.g. delivery and installation of products In industrial process – mostly engineers, consultants and technicians Residential energy efficiency programmes lasted typically between 1 and 10 years. Jobs of equivalent duration

13. © EuroACE 2007 Types of employment, continued Residential programmes yielded: High levels of direct employment New employment for small local firms Spending within local economy of money saved on fuel bills

14. © EuroACE 2007 ETUC/SDA Study on Employment and Climate Change: Findings broadly in line with ACE-led study

15. © EuroACE 2007 EU 15EU 10 Business as Usual: Total investment p.a. Cost per job Nos. of jobs created 10 bn euros 160,000- 500,000 euros 20-62,500 1.6 bn euros 35,000 euros 45,000 Expanded EPBD (abolition of 1000m2 threshold): Total investment p.a. Cost per job Nos. of jobs created 25 bn euros 160,000- 500,000 euros 50-150,000 4.7 bn euros 35,000 euros 135,000

16. © EuroACE 2007 Implementation 2006-205016 EU Member States “Factor 4” Scenario (75% reduction in CO2 emissions) Cost-per-job hypothesis 1 (as before): Total investment p.a. Cost per job Nos. of jobs created Cost-per-job hypothesis 2: Total investment p.a. Cost per job Nos. of jobs created 73 bn euros 160,000-500,000 euros 146,000-456,250 73 bn euros 53,000 euros 1,377,000

17. © EuroACE 2007 If implementation were accelerated (2006-2030), new jobs created per year would increase to 274,000- 856,250 (hypothesis 1) or 2,585,000 (hypothesis 2)

18. © EuroACE 2007 EuroACE campaigns vigorously for ambitious energy saving policies and high job creation We support the expansion of the Energy Performance of Buildings Directive and call for the abolition of the 1000m2 threshold (as envisaged by Scenario 2)

19. © EuroACE 2007 We welcomed the European Commission’s announcement in the Energy Efficiency Action Plan that they would be proposing an expansion of the EPBD in 2009 BUT we must all work together to provide them with the job creation data they need to convince member states that an expanded Directive is necessary

20. © EuroACE 2007 Jenny Holland, Adviser to EuroACE European Alliance of Companies for Energy Efficiency in Buildings, Avenue Louise 375 - Bte 4, BE-1050 BRUSSELS Tel.: +32 2 639 10 10 Fax: +32 2 639 10 15 www.euroace.org info@euroace.org jenny@ukace.org