Szilárd Árvay Ministry of Foreign Affairs of Hungary.

The Role of Danube Strategy in Energy Efficiency The Importance of Macro-Regional Approach

GovernEE Project Final ConferenceHódmezővásárhely, 3rd July, 2013

Szilárd Árvay Ministry of Foreign Affairs of Hungary

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GDP per head in PPP (2011)

Danube Region - Hungary has a central position

Key features: 9 EU + 5 non-EU countries; More than 100 million

inhabitants; One-fifth of EU’s total area; Significant regional disparities;

Source: World Bank

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Hungary has a decisive role in energy cooperation The EU Strategy for the Danube Region (EUSDR) is a macro-regional strategy of the

European Union, endorsed by the European Council in June 2011.

Driving force the one-size-fits-all approach is not working in an EU of 27 Member States and 271 regions.

The Strategy was jointly developed by the European Commission, the Danube Region countries and stakeholders in order to jointly address common challenges.

The Strategy seeks to create synergies and coordination between existing policies and initiatives taking place across the Danube Region.

The strategy tackles these various topics in a structured way through 4 pillars and 11 priority areas.

Priority Area 2 – Sustainable Energy (PA2) is jointly coordinated by Hungary and the Czech Republic.

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Electricity consumption per capita (2010)

Energy efficiency is low in a region with significant growth potential

MWh/head

Source: IEASource: IEA

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Energy intensity (2011) ktoe/bn USD

Energy intensity (energy consumed compared to GDP produced) is still considerably higher in the Eastern part of the Danube Region than in Western Europe still much room for improvement.

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PA2 to provide backing to achieve EU-targets Europe 2020 Strategy saving 20% (368 Mtoe) of the Union’s primary

energy consumption by 2020 compared to projections made in 2007.

Recent EU data shows that the continent is not on track to reach its 2020 energy efficiency goals Recent estimate of COM: primary energy consumption in 2020 will be reduced by only about 17%.

EU Energy Efficiency Directive the European Commission shall assess progress achieved by 30 June 2014 AND Member States shall establish a long-term strategy for the renovation of buildings, first version to be published by 30 April 2014.

Priority Area 2 intends to provide a useful input to such analyses.

1528Mtoe 17% saving

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Importance of public buildings

The cost-effective energy savings potential in the building sector (residential and non-residential) in the EU is estimated to be 65 Mtoe, with a gross investment need of approximately EUR 587 billion for the period 2011-20201.

The total budget of the EU for the 2014-20 period is EUR 960 billion in commitments and EUR 908.4 billion in payments.

Buildings represent 40% of the EU final energy consumption (and 36% of greenhouse gas emissions)2, while publicly owned or occupied buildings represent about 12%3 by area of the EU building stock and have a high visibility in public life.

Public spending accounts for 19%4 of EU GDP, therefore it is an important driver to market transformation towards more efficient products, buildings and services as well as to trigger behavioural changes in energy consumption.

Public bodies fulfil an exemplary role regarding energy efficiency, furthermore, decreasing consumption could free up public resources for other purposes.

City Hall, Hódmezővásárhelywww.hodmezovasarhely.hu)

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1,2 - DG-Energy - Financial Support for Energy Efficiency in Buildings, Consultation Paper3 – EPEC - Guidance on Energy Efficiency in Public Buildings4 - EU Energy Efficiency Directive

DRS PA2 is bringing knowledge to Hungary Energy Performance Contracting in the Danube Region (EPCDR)

◦ The State Office Baden-Württemberg, Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) and Steinbeis-Europa-Zentrum have initiated a concept on the ESCO-financing of energy efficiency projects and contacted DRS PA2 in December 2012 to cooperate in the region.

◦ PA2 involved Hungarian partner ÉMI and invited several other institutions from the Danube Region to participate.

◦ The consortium submitted its application to the Intelligent Energy Europe (IEE) programme in May 2013, final decisions on IEE proposals may be expected at the end of 2013.

ESCO – knowledge transfer from Germany to Hungary◦ Hosted by the Government of Baden-Württemberg in Stuttgart, at July 4-5,

2013.

◦ Delegation of the Ministry of National Development, ÉMI Non-profit LLC, Hungarian National Asset Management INC., Hungarian Development Bank PLC., MFB Invest PLC., Budapest Danube Contact Point and PA2.

DRS PA2 own initiative on energy-efficiency◦ Recent EU data shows that the continent is not on track to reach its 2020

energy efficiency goals.

◦ Main barriers to initiating energy efficiency projects in buildings are of market, financial or regulatory in nature.

◦ Latest consultation of the EU regarding energy efficiency in buildings (February 2012) resulted in a lack of feedback from the new member states.

◦ The concept intends to analyse and eliminate obstacles to bank financing in the region.

◦ Concept was unanimously accepted by the Steering Group of PA2 in June 2013.

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Danube Transnational Progamme established Legislative package for the next EU multiannual

financial framework for 2014–2020 established a new transnational program for the Danube region – the Danube Transnational Programme.

This will cover the same regions as the EU Strategy for the Danube Region (EUSDR), while the existing South East Europe Programme will be terminated.

The exact structure is currently under preparation - the consultation process to determine the objectives of the new program is underway.

The total budget for 2014-2020 will be approximately EUR 180 million.

The Programme will provide Technical Assistance type of funding to transnational cooperation projects with budgets of about EUR 1 million.

EU transnational programmes under the European Territorial Cooperation Objective in 2007-2013

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BDCP - smart tool for facilitating DRS projects Budapest Danube Contact Point – an innovative initiative of the European

Investment Bank (EIB) and Hungary to support feasible and financeable projects for the Region.

Starting off: June 2012. Support for the Danube Strategy on the

project level:◦ free advisory services;

◦ „reality check” for projects;

◦ aiming to improve quality and speed up preparation;

◦ team of international experts.

How to structure? - supporting selected transnational projects with high added value;

How to fund? - helping to assign optimal financing structure;

How to create macro-regional added value? - promoting and supporting macro-regional concepts such as strategic feasibility studies.

Organization

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For more information please visit:http://danube-region.eu/

Thank you for your attention!

[email protected]

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