The Ecofys Reports – key arguments to support energy efficiency in buildings EU STRUCTURAL FUNDS TRAINING DAY March 06, 2006.

The Ecofys Reports – key arguments to support energy efficiency in buildings

EU STRUCTURAL FUNDS TRAINING DAY

March 06, 2006

What is at stake?

Global Warming – Europe’s reputation at stake

Under the Kyoto Protocol Europe is committed to reduce its greenhouse gas emissions by 8% by 2008-2012. Not only are current policies insufficient to achieve this goal, failure to meet it will severely undermine the moral authority of Europe in negotiating future commitments.

Security of Energy Supply – more dependence, less stability The EU’s dependence on foreign energy supplies is expected to increase to 70% by 2030. Given the current potential for conflicts in major energy exporting regions, we are gambling with the future of the economy.

The Lisbon Process – action not words needed

The reform process needed to implement the Lisbon Strategy is way behind schedule. In the recent report from the High Level Group Chaired by Wim Kok this was recognised and action on eco-efficiency was seen as an area for focus.

Meeting these challenges

zz

z

Improving energy efficiency improves economic efficiency

Global Warming

Security of Energy Supply

The Lisbon Process

Buidlings alone have the pontential to reach Kyoto objectives

Reducing energy demand in buildings can help limit our exposure

to supply issues

No action

No action

No action

Action

Action

Action

EU unlikely to

meet Kyoto

objectives

Increasing dependenc

e on foreign energy

sources

Lisbon objectives

not achieved

ECOFYS reports – quantifying the potential

Climate Protection Regulation Competitiveness Enlarged EU

STEP 1 - Climate protection (EU 15)

Potential from buildings (EU 15)- CO2 savings

Total heatrelated emission

Technical potential emission reductions

Annual CO2 Emissions in the European Building Stock (EU 15)

(Mt/

a)

398

725

Reduction Potential from Buildings

STEP 2 - Quantifying the impact of regulation (EU 15)

Quantyfing the gap in the EU

Transport

Industry

Buildings

Untapped

10%

32%

28%

40%

Only ten percent of the potential for buildings is

being seized by the Energy Performance of Buildings

Directive

Key findings

Key findings - in detail

• Technical potential for buildings > 1000 m²

amounts to 82 Mt/a

• Technical potential for all buildings: 398 Mt/a

• Main potential in moderate and warm climate

Technical Potential CO2-Savings

0

100

200

300

400

500

CO

2-E

mis

sio

n s

avin

gs

[Mt/

a]

sum 82 151 398

w arm 12 29 65

moderate 68 118 319

cold 2 5 14

EPBDExtended EPBD

> 200m²Extended EPBD

all houses

Key findings

All small buildings

Current EU

rules

ECOFYS Study

New buildings

Existing large

buildings

STEP 3 - Quantifying the impact on competitiveness (EU 15)

Potential from buildings (EU 15) - cost savings

Individual

Potential from buildings (EU 15) - cost savings

Societal

8 BillionEURO

Conclusion for jobs

o Impact on jobs based on:

Construction market Equipment Maintenance of

equipment

o Impact expected to lead to up to: 300,000* new jobs per year

* Eurima estimate

STEP 4 - Extending all the results to the new Member States (EU 8)

• Same potential of energy savings

40% of Energy Use

• Large potential of CO2 reduction

60 million tonnes

• Significant potential of cost savings

0.5 Billion EURO

• Major job potential

230 000 extra jobs

New Member States – commonopportunities

New Member States – different challenges

• Crisis in the Housing Sector Suffer from inadequate condition

of their homes High energy bills Very poor energy efficiency

levels

• Need for urgent refurbishment

Specific in new Member States – job creation

Up to

230,000*

New Jobs

* Eurima estimate

New Member States – barriers

• Barriers to energy efficiency investment

PoliPolitical and institutional Financial and economic Legal Capacity and social

STEP 5 - Adjusting the results to the new energy prices (EU 25)

ECOFYS VI

A changing landscape

The need for actions

What needs to be done?

• Correct implementation

• EPBD to be fully extended to all buildings

• Used to refurbish buildings

• National Action Plans to focus on buildings

What is the EU Doing?

• EPBD

• Green Paper

• Structural Funds

• Energy Services Directive