1. Energy Energy Efficiency and Cohesion in an EU Energy Policy perspective Energy Dr. Tudor Constantinescu Principal Advisor European Commission - Energy

2. Energy Decarbonisation Technology External Legislation Cohesion Internal Market Objectives & Targets European Energy Policy

3. Energy Energy strategy 2020 – Five priorities Efficient use of energy Integrated energy market Secure, safe and affordable energy for consumers Technological leadership Strong international partnership

4. Energy Meeting our “20-20-20 by 2020” goals Reduce greenhouse gas levels by 20% Increase share of renewables to 20% 100% Reduce energy consumption by 20% -10% Current trend to 2020 -20% 20% Current trend to 2020

5. Energy A NEW ENERGY EFFICIENCY DIRECTIVE Services Energy supply House- holds Industry General measures promoting EE New EED Sectoral measures Monitoring & Reporting Indicative national EE targets Public sector

6. Energy  Supported by multiple scenario analyses, to show how to reach the 80 % / 95 % goal while at the same meeting other policy objectives (Competitiveness and Security of Supply)  Containing robust assumptions for all possible scenarios Looking to the future - Energy Roadmap 2050 Basis: 20/20/20 objectives of the EU energy policy Roadmap 2050: Cutting GHG emissions until 2050 down to 80 – 95 % below the level of 1990 The Energy Roadmap 2050: the basis for the elaboration of a low carbon 2050 strategy

7. Energy Fuel Ranges (primary energy consumption) 0% 25% 50% 75% RESGasNuclearOilSolid fuels 0% 25% 50% 75% RESGasNuclearOilSolid fuels 20302050 2005

8. Energy Conclusions and “no regret options” Energy efficiency gains throughout the system Major role of renewables But all options can contribute  EE, RES, Nuclear, CCS, Gas Act in time and together – timely investments cost less Gas – important role until 2030/35- more uncertainties after that period  Contribution after 2030 depends on (delayed) CCS

9. Energy European funding mobilised Structural funds/ERDF (incl. JESSICA) Intelligent Energy – Europe Programme ELENA Facility European Energy Efficiency Facility Smart cities (within the 7th Framework programme for Research) Public Private Partnerships (within the 7th Framework programme for Research

10. Energy Cohesion Policy 07-13 (€ 347 billion) European Regional Development Fund (ERDF) Cohesion Fund European Social Fund (ESF) DG REGIO DG EMPLOYMENT

11. Energy Cohesion Policy Convergence objective: regions with GDP per capita under 75% of the EU average. 81.5% of the funds are spent on this objective. Regional competitiveness and employment objective.

12. Energy Functioning of Cohesion Policy European Commission & Member States negotiated / agreed National Strategic Reference Framework (NSRF) and Operational Programmes (OPs) at national and/or regional level for 2007-2013. Member States alone select and implement the projects in line with priorities of the OPs (principle of ‘shared management’). Major Projects: Investments of more than € 50 million are submitted and approved by the Commission. EU funds always completed by national, regional, EIB funds.

13. Energy Eco- Innovation €3 bn Low Carbon Economy €48 bn Environmental Rulebook €54 bn = €105 billion 30% of Cohesion Policy funding “Green economy” investments 2007-2013 Renewables €4.8 bilion Energy Efficiency €4.4 billion

14. Energy Petroleum products 2% Natural gas 6% Electricity (TEN-E) 3% Electricity 3% Natural gas (TEN-E) 3% Wind 7% Solar 10% Biomass 17% Hydroelectric, geothermal and other 10% Energy efficiency, co- generation, energy management 39% Cohesion Policy allocations to Energy 2007-2013 total = € 11 billion (3 % of total) € 9.2 billion EE & RES plus € 1.8 billion traditional energies & interconnectors.

15. Energy

16. Energy Efficiency in the “Recovery Package” Amendment to ERDF regulation (May 2009) Up to 4% of the national ERDF allocation can go to energy efficiency and renewable energy in housing, potentially € 8 billion Member States define eligible categories of existing housing, to support social cohesion June 2010: Further regulatory amendment to facilitate the use of innovative financial instruments in this area, in addition to JEREMIE and JESSICA (JESSICA initiative also delivering EE & RES investments in the urban context)

17. Energy Uptake of the regulatory amendments Only EL making immediate use of the new financial engineering opportunity by establishing a revolving fund of EUR 300 million to provide repayable assistance for energy efficiency in housing. However, it seems like the amendment has triggered further MS interest, as the set-up of additional financial engineering instruments with an energy efficiency and/or renewable energies component is currently considered in BG, DE, HU, SK, UK. Also eight JESSICA funds with energy component set up in seven MS: EE, LT, ES, IT, PL, PT, UK.

18. Energy 18 Refurbishment of social housing (FR) Investments of € 320 M of ERDF in whole country Average support by ERDF = € 2,886 per dwelling (14% of total needs) Impacts: generated over € 1 billion in investment in energy performance in social housing in FR helped to create and maintain 15,000 local jobs & potentially 31,000 with measures in the pipeline 50,000 households with modest incomes supported to fight energy poverty (heating costs reduced on average by 40%)

19. Energy European Union Cohesion Policy │ 19 Proposed EU budget 2014-2020 "Ambitious but realistic" proposals issued by the Commission in June 2011 for a Multiannual Financial Framework 2014-2020 Cohesion Policy 33% (€336 billion) Connecting Europe Facility 4% (€40 billion) Other policies (agriculture, research, external,…) 63% (649 billion) MFF 2014 - 2020

20. Energy European Union Cohesion Policy │ 20 Concentrating resources to maximise impact Less developed regionsMore developed & transition regions Concentration of ERDF investments on: energy efficiency & renewable energy research & innovation competitiveness of SMEs flexibility – different regions have different needs special arrangements for ex-convergence regions 60 % 20% 44 % 6%

21. Energy European Union Cohesion Policy │ 21 How will funding be allocated? Budget allocation (in %) Population covered (in millions) Less developed regions/MSTransition regionsMore developed regions Cohesion Fund¹68.7 Less developed regions162.6 Transition regions38.9 More developed regions53.1 European Territorial Cooperation 11.7 Outermost regions and sparsely populated areas 0.9 Total336.0 ¹ €10 billion from the Cohesion Fund will be allocated to the Connecting Europe Facility

22. Energy ROMANIA, NSRF 2007-2013 (http://www.fonduri-ue.ro/) Energy Efficiency in ERDF Operational Programmes 2007-13: 100 MEURhttp://www.fonduri-ue.ro/ Large enterprises/SMEs (Increase of the Economic Competitiveness programme) Total allocation: 100 M€ (245) Implementation: European Regional Development Fund supports investments in installations/ equipments of industrial operators leading to reducing the energy consumption. Calls: on going Public buildings for Regional, Local and Municipal Authorities (Regional operational programme) No separate energy-efficiency measures are taken. European Regional Development Fund supports the rehabilitation of public buildings (schools, hospitals, social buildings); the projects are required to comply with reinforced energy efficiency national legislation; Housing Total allocation: 0 M€ Implementation: this was not a priority for the Romanian authorities and no programme included this type of projects. Discussions are on-going on the possibility and opportunity to set up a financing scheme for energy efficiency projects in housing under the Regional Operational programme. Contacts Intermediate Body for Energy from the Ministry of Economy, Trade and Bussiness Environment, http://oie.minind.ro, Tel: (+40 21) 202 53 88.http://oie.minind.ro Managing Authority for Regional Operational Programme from the Ministry of Regional Development and Tourism http://www.inforegio.ro/, Tel: (+40 37) 211 14 09. http://www.inforegio.ro/

23. Energy Thank you tudor.constantinescu@ec.europa.eu