EUROPEAN COMMISSION EU Energy Efficiency Policy Dr. Karl Kellner, Adviser DG Energy and Transport European Commission New and Renewable Sources of Energy,

EUROPEANCOMMISSION

EU Energy Efficiency Policy

Dr. Karl Kellner , Adviser DG Energy and Transport European Commission New and Renewable Sources of Energy, Energy Efficiency and Innovation

Energy Efficiency 2009 Seminar- VILNIUS , 24 Nov.2009

Political and Economical Motivation• Environment: Climate change: limit temp.increase +2 degrees C

• Financial and Economic Crisis: EU’s Economic Recovery Plan

• Social & Economic: Recent energy prices and their volatility

• Security & Economy: EU Energy Import Dependency - Forecast:

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

total oil natural gas solids

2000 2010 2020 2030

ENERGY FOR A CHANGING WORLD

EXTERNAL RELATIONS

ILLUSTRATIVE NUCLEAR PROGRAMME (PINC)

SUSTAINABLE FOSSILFUEL TECHNOLOGIES

INTERNAL MARKET

REPORT ON FUNCTIONING OF INTERNAL MARKET

DG COMP SECTOR INQUIRY

PRIORITY INTERCONNECTION PLAN

PROGRESS REPORTRES ELECTRICITY

PROGRESS REPORTBIOFUELS

RENEWABLES RD MAP PROPOSAL FOR DIRECTIVE JAN

SUSTAINABILITY AND LOW-CARBON ECONOMY

ENERGY EFFICIENCY

ACTION PLAN (19 OCT 2006)

JOINT COMMISSION/ HR /COUNCIL JUNE 2006 PAPER

AND COM PAPER OCT 2006

DIALOGUE WITH PRODUCERS:

OPEC-NORWAY-GCC-ALGERIA-CASPIAN BASIN

(BAKU PROCESS)

NEGOTIATION MANDATEFOR NEW AGREEMENT WITH RUSSIA

DIALOGUE WITH CONSUMERS:

CHINA, US, INDIA, JAPAN

ACTION PLAN 2007-2009

ENERGY PACKAGE2007

ENERGY POLICY FOR EUROPE

GREEN PAPER ENERGY

SPRING EUROPEAN COUNCIL 2007

R&D 7TH FRAMEWORK PROGRAMME STRATEGIC ENERGY TECHNOLOGY PLAN (Nov 07)

LIMITING CLIMATE CHANGE TO 2 °C

SPRING EUROPEAN COUNCIL 2006

2nd Strategic Energy Review (SER, Nov 2008) – focus on energy security - new political momentum to develop a European approach – completes 1st SER

Integrated approachIntegrated approach

Mutually reinforcingMutually reinforcing

Security of supply

Competitiveness

Sustainable Development

The 20-20-20 EU policyby 2020

Greenhousegas levels

Energyconsumption

Renewables inenergy mix

-20% -20%100%

+20%

8,5%

220%0% reduction in greenhouse gas emissions, compared reduction in greenhouse gas emissions, compared to 1990to 1990Emissions capping and trading – Emissions capping and trading – credible carbon price; credible carbon price; demand for emissions reductions in developing countries demand for emissions reductions in developing countries Equivalent measures in other sectorsEquivalent measures in other sectors20%20% renewable energy in energy consumption – EU renewable energy in energy consumption – EU target, binding national targets derivedtarget, binding national targets derivedIncludes 10% biofuels in road transport fuel - binding Includes 10% biofuels in road transport fuel - binding minimum national target – contingent on sustainability minimum national target – contingent on sustainability 20%20% energy consumption to be saved, compared to energy consumption to be saved, compared to baseline projections – throughout economybaseline projections – throughout economy

Europe’s strategy and leadership role:1st Strategic Energy Review : 20-20-20 by 2020

AGENDA

• Main energy savings policy areas

• New policy developments

• Future challenges and responses

AGENDA

• Main energy savings policy areas

• New policy developments

• Future challenges and responses

Main policy areas to achieve energy savings

Policy areas

European Energy

EfficiencyAction Plan

(EEAP)Comprehensive

set of legislation

Support programmes &

energy efficiency networks

International co-operations

Financing

Research & Development

OBJECTIVE

European Energy Efficiency Action Plan

Mobilisation of the

general publicpolicy-makersmarket actors

to achieve the

20% primary energy savings objective

2007 - 2012: Implementation period for85 measures in 6 priority areas:

Dynamic energy performance requirements for energy-using products, buildings and energy services

Improving energy transformation

Moving on transport

Financing energy efficiency, economic incentives and energy pricing

Changing energy behaviour

International partnerships

ACTION PLAN

Comprehensive set of legislation to enhance energy efficiency

• Directive for the taxation of energy products and electricity

Proposal for revision in 2008

• Energy end-use efficiency and energy services Directive (ESD) Services

• Directive on the promotion of cogeneration (CHP)Generation

Buildings • Energy performance of buildings Directive (EPBD)

• Directive establishing a framework for the setting of eco-design requirements for energy-using products (implementing directives for e.g. boilers, refrigerators, freezers and ballasts for fluorescent lighting)

Eco-Design

• Directives for labelling of e.g. electric ovens, air-conditioners, refrigerators and other domestic appliances

• Regulation of Energy Star labelling for office equipment

ProductLabelling

Taxation

National Energy Efficiency Action Plans

• Main tool in the planning, implementation and monitoring of energy efficiency policy, also with the view to longer term objectives like the 20% by 2020 and beyond. Active policy development tool at the national, regional and local level.

• Translation of energy savings objectives into concrete and coherent measures and actions in each MS.

• Demonstrate the role of energy efficiency with regard to climate change and other relevant policy objective placing energy efficiency within a broader policy context - going beyond the reporting requirements of the ESD.

• Capturing synergies and avoid duplication.• Trigger exchange of experiences and best practices between MS.

Objectives

Assessment of 1st NEEAPs

• Wide diversity of policy packages and individual measures targeting different end-use sectors – COM Working Doc. SEC/2009/889,June 09.

• Very heterogeneous in nature with regard to scope and coverage, the level of detail provided about measures and expected savings.

• Minimum reporting requirements of the ESD not always fulfilled.• Gap between political commitment and concrete commitment in the Plan.

Visibility of EU legislation for consumers: Energy performance certificates

Support measures and networks on energyefficiency

Covenant of Mayors

Sustainable Energy Europe Campaign

ManagEnergy Network

EACI project funding Intelligent Energy Europe (IEE)

EMAS Scheme

Projects in FP 7 incl. CIVITAS, CONCERTO

Buildings Platform Build-up

Networks

Measures &programmes

Legislative implementation support

Concerted Actions

Financing energy efficiency

• 2007-13 about 9billion € for RES &energy efficiency projects allocated

(LT : 367 M€ )

• New possibilitiesby change of ERDF allocation to EE/RE in existing housing in EU-27 (LT:max.138 M€ )

• Reallocation of 91 M€ from priority 2 to 1

EIB and EBRD

-JESSICA holding fund ( 227 M€ )

- EBRD : renovation private/public buildings ( 29 M€ ) under Ignalina Decom.Support Fund ( IIDSF)

Call for urgent,coordinated measures, notably in buildings :.New PPP for research in construction etc ( FP7 call deadline 3 Nov. 09 )

EU Structural & Cohesion Funds

Collaboration with IFI´s

Recovery Action Plan

HUDA apartment renovations

• 25M€ budget• Residents fund ~ 50%• Exterior wall, window and roof renovations

Hospital and schools renovations

• 4.2M€ budget• 2 hospitals and 1 school – to be extended• Roof and exterior wall cladding

International co-operations on energy efficiency

• Russia• Brazil• China• India• Norway• USA

International Organisations

Regional

Bilateral

• International Partnership on Energy Efficiency Collaboration (IPEEC): G8 + China, India, Korea

• Heiligendamm Dialogue Process: G8 + Brazil, China, India, Mexico and South Africa.

• Energy Charter Protocol on Energy Efficiency (> 50 member countries)

• Energy Community Efficiency Task Force• Baltic Sea Region Energy Cooperation (BASREC)

AGENDA

• Main energy savings policy areas

• New policy developments

• Future challenges and responses

Recent policy developments

• Energy efficiency is placed at the heart of EU energy policy

• Second Strategic Energy Review (SER II)

• Economic Recovery Plan

SER II - Energy efficiency is a key element of the Energy Security and Solidarity Action Plan

Energy Security & Solidarity Action Plan ( Nov. 2008)

Infrastructures, diversification

Energy efficiency

External relations

Indigenous energy resources

Emergency oil stocks,Gas crisis response mechanisms

Current policy measures insufficient to achieve 20% saving objective in 2020

Immediate initiatives are proposed for buildings, products and CHP

Appeal to MS to implement energy efficiency legislation more swiftly and effectively

More financing tools will be developed to enhance energy efficiency

Assessment of the Energy Efficiency Action Plan ongoing as basis for a revised Action Plan

SER II - Key messages from the Communication on Energy efficiency: Delivering the 20% target

EU objective: 20% EU primary energy savings in 2020

Source: European Commission

2005: 1705 Mtoe

- 20%

Objective in 2020: 1474 Mtoe

- 13 %

Target Energy Saving Potential: 20% by 2020

Energy efficiency potential in Energy efficiency potential in different sectorsdifferent sectors¹¹::

• Manufacturing industry: up to 27%Manufacturing industry: up to 27%

• Transport: up to 30%Transport: up to 30%

• Commercial buildings: up to 26%Commercial buildings: up to 26%

• Households: up to 25% ( LT >35 % ?)Households: up to 25% ( LT >35 % ?)¹ Wuppertal Institute 2005.¹ Wuppertal Institute 2005.

• Directorate-General for Energy and Transport

Role of the Building Sector 40 % of EU’s energy use

36 % of EU’s CO2 emissions

Cost-effective energy savings potential: ~30 % by 2020

9 % of GDP, 8 % of employment and €2 trillion

annual turnover

Key EU legislation:

Energy Performance of Buildings Directive

(EPBD, 2002/91/EC)

Energy Performance of Buildings Directive – recast(1)

Elimination of the 1000 m2 threshold for existing buildings when

they undergo a major renovation

Eliminating/lowering of the threshold also for

- Display of Energy Performance Certificates in public buildings

- Assessment on installation of alternative systems for new build

Minimum energy performance requirements for new

buildings and major renovations:

Benchmarking to achieve cost-optimal levels

Energy Performance of Buildings Directive – recast(2)

Strengthening the role and the quality of energy performance

certificates – i.a. quality checks and use of the performance

indicator in advertisements for sale or rent

Strengthening the role and the quality of inspections (HVAC)

Addressing the public sector to act as leading example

Stimulating the market entry of low/zero carbon

and energy buildings, such as “passive houses”

Clarification/simplification of provisions and

definitions

Energy Performance of Buildings Directive – recast(3)

Political agreement between EU Institutions on 17 Nov. 2009

Issuance and Display of certificates

Financing : European Commission statement

Public sector to act as leading example

“Nearly zero energy buildings” ( not low energy)

Cost optimal methodology : benchmarking process

Review by Jan. 2017

Next Step : Energy Council 7 Dec.

AGENDA

• Main energy savings policy areas

• New policy developments

• Future challenges and responses

Investments in energy efficiency pay off 2030 - Global GHG abatement cost curve beyond business-as-usual

Many remaining challenges……Long decision making chain from Brussels to final consumers.

…Lack of incentives for energy companies to take savings measures for their clients despite their key position

…27 Member Sates: different climate, economy, consumers’ habits.

…Many energy saving actions are not in the scope of internal market, demanding special attention to subsidiarity.

…Slow implementation speed of the existing legislation.

…Lack of consumer awareness on the benefits of energy savings.

…Complexity of financing: small scale actions and missing organisational and administrative structures.

…Mixing up of energy efficiency and actual energy savings in the policy debate, ignoring the difficulties of measuring energy savings.

…Reluctance from political decision makers to touch upon delicate behaviour-related issues.

… and so on

Next steps

Saving energy is what matters: improved Energy efficiency is a means to achieve the 20% energy saving objective at EU level

Review of Energy Efficiency Action Plan (ongoing )

All sectors covered: households, services, transport, industry, energy supply and transmission

on the climate and energy package http://ec.europa.eu/energy/energy_policy/index_en.htm

EENERGY FOR A CHANGING WORLDNERGY FOR A CHANGING WORLD

EC, DG TREN: agencies, partners, programmes http://www.managenergy.net

EC, Executive Agency for Competitiveness andInnovation (EACI) Intelligent Energy - Europehttp://ec.europa.eu/eaci

Calls for proposals – FP7Calls for proposals – FP7

http://cordis.europa.eu/fphttp://cordis.europa.eu/fp77/dc//dc/

Further information - Further information - All documents are available All documents are available

Thank you for attention.

Contact details:

Dr. Karl KellnerAdviser Dir. D - Directorate-General for Energy and TransportEuropean Commission24 rue Demot B - 1040 BrusselsTel: + 32.2-2952410 E-mail: [email protected]