Europe has released a tough new set of energy saving proposals that it claims will save households up to €1000 a year and cut emissions.
The European Commission says energy efficiency is a key tool for strengthening the continent's competitiveness and reduces energy dependence, while decreasing the level of carbon emissions.
The set of proposed measures aims at creating substantial benefits for households, businesses and public authorities. Supporters claim the measures will transform daily lives and generate financial savings of up to €1000 per household every year.
European leaders claim the new targets included in the strategy paper should improve the EU's industrial competitiveness with a potential for the creation of up to 2 million jobs.
Günther Oettinger, European Commissioner responsible for Energy, said: "Despite progress, our estimates show that we need a further decisive and coordinated action on energy efficiency, without which the EU will not meet its objective of 20% energy savings by 2020.
“It paves the way for the longer term policies needed to achieve a decarbonised and resource-efficient economy by 2050 and to place the EU at the forefront of innovation. "
Recent Commission estimates suggest the EU will achieve only half of the 20% improvement in energy efficiency it aims for by 2020 if it continues business as usual.
In 2007, the EU set itself a target for saving 20 percent of its energy consumption by 2020. The 20% objective translates into a saving of 368 million tons of oil equivalent (Mtoe) by 2020 compared to projected consumption in that year of 1842 Mtoe. This needs to be achieved by the EU as a whole.
But according to the Commission's most recent projections, which take into account measures implemented at national and European level up to the end of December 2009, consumption in 2020 is expected to be 1678 Mtoe, equivalent to a saving of only 9% relative to the previous projection.
It blames a number of market and regulatory failures for the predicted shortfall in energy savings.
The plan focuses on instruments to trigger the renovation process in public and private buildings, to improve the energy performance of the appliances used in them and to foster energy efficiency in households and the industry.
The Communication does not cover transport, as a White paper on Transport is due to come out soon.
For the public sector, the EU Commission proposes the following binding measures:
• Public authorities should be required to refurbish at least 3% of their buildings (by area) each year. This is roughly double of the actual renovation rate. Each refurbishment should bring the building up to the level of the best 10% of the national building stock. When public bodies rent or buy existing buildings, these should always be in the best available energy performance class.
• High standards of energy efficiency should systematically be applied when public authorities purchase goods (e.g. office appliances), services (e.g. energy) and works (e.g. refurbishment of buildings). Due to the large volume of public spending (17% of GDP or roughly €2,000 bn and public buildings are about 12% of the EU build up area) it could serve as a strong driver for higher market uptake of energy efficiency and development of the skills and knowledge required
For the private building sector, the EU Commission proposes:
• Member States are called upon to introduce measures – in line with national property law - to address the problem of split incentives. This means how the costs of renovation are split between the tenant and the landlord in case of rented buildings and apartments. At the same time, Member States are called on to support the uptake of Energy Service Companies as catalysts for renovation. Energy Service Companies renovate private houses and apartment at their own costs and make profits by receiving the difference between the energy costs before and after the renovation over a defined period of time.
For energy companies, it is proposed:
Energy companies have to enable their customers to cut their energy consumption. This could take different forms. In the UK for example, large electricity and gas suppliers are obliged by law to cut energy consumption of their customers by a pre-defined level. The energy companies pay for new installations in private houses such as double glazing to cut energy. They get their costs back via energy prices. Another model is to ask Energy Service Companies to do the necessary investments.
For industry, it is proposed:
• Large companies have to undertake regular and independent energy audits. They have to organize these themselves. Member States are encouraged to develop incentives for companies that introduce an energy management system as a systematic framework for the rational use of energy.
• Exchange of best practices in energy efficiency and projects aimed at building capacity on energy management are proposed for micro and small companies.
The Commission will monitor the implementation of the Action Plan and translate these actions into a legislative proposal in the coming months.
It will report on progress in two years' time in the framework of the new EU 2020 governance. If the review shows that the overall EU target is unlikely to be achieved, the Commission will propose legally binding targets for 2020. For now, the priority is for binding measures to help Member States, companies and citizens alike to achieve their savings objectives and to save on their energy bills.
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