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

2. 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?

3. Identifying problems…

4. We are doing fine…

5. …or at least better than others…

6. …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

7. Because absolute energy use is fairly stable…

8. …while our dependence on energy imports is growing.

9. 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 2020 2/3 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

10. China's total oil consumption doubled since 1992. Domestic oil production remained almost static, up barely 20% on 1992. The deficit filled by net imports of about 100 million tonnes - three times the level in 1998. Source: Oxford analytica Asia’s growing appetite Monthly oil imports 12-month centred moving average, USDm

11. The new member states Average GDP growth in 10 Acceding Countries 1995-2002 = 3,6% per annum, EU15 only 2,2% Labour productivity growth in 10 Acceding Countries (1995-2000) = 3,6 % p.a., EU15 only 1% Influx of Cohesion and Structural Funds: €8,9 billion in 2004-2006 (of €21.7 billion to be allocated) Investment needs in environment field ca €100 billion euro

12. 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

13. Delivering solutions…

14. EU instruments for energy efficiency at different angles

15. EPER: basis for benchmarking Principal emissions (50 pollutants) and IPPC sources responsible Published every 3 years: first time February 2004 http://www.eper.cec.eu.int

16. 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

17. 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 2004 6

18. 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

19. 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 http://europa.eu.int/comm/envir onment/gpp/guidelines.htm#han dbook http://europa.eu.int/comm/envir onment/gpp/guidelines.htm#han dbook

20. Community support for innovation

21. 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)