A new impetus for Europe's energy efficiency policy

Paul HodsonHead of UnitDG Energy, European Commission09/10/2012

Energy79%

Agriculture10%

Industry Processes

8%

Other0%

Waste

3%

ENERGY EFFICIENCY IS A 'NO REGRET' OPTION

. For reaching our long-term GHG reduction objectives

OIL

2005 2008 2020 2030in %

10

0

80

60

40

20

Oil import projections

CO2 emissions 2008

. For mitigating our import dependency

. For maintaining our competitiveness and affordable energy prices

1678 Mtoe

-20% objective

Status 2010

1842 Mtoebusiness

as usual

2020

Projections from 2007

Projections from 2009

20% Energy saving objective

1474 Mtoe

* Gross inland consumption minus non-energy uses

Pri

ma

ry e

ne

rgy

co

ns

um

pti

on

*, M

toe

1400

1450

1500

1550

1600

1650

1700

1750

1800

1850

1900

2005 2010 2015

GAP

EED Commission proposal

Transport WP

THE EU ENERGY EFFICIENCY TARGET

The cost of ‘no action’ – €20 billion lost annually until 2020

-60

-30

0

30

Bill

ion

Eu

ro '0

8 EED costs

EED avoided costs

• increased costs for investment in energy efficiency- €24 billion annually

• reduced costs for investment in energy generation and distribution - €6 billion annually

• reduced fuel expenditure - €38 billion annually

• increased EU GDP of € 34 billion in 2020

+

• increased net employment of 400 000 in 2020

CLOSING THE GAP: THE ENERGY EFFICIENCY DIRECTIVE (EED)

ServicesEnergy supply

House-holds

Industry

Generalmeasures

promoting EE

New EED

Sectoral measures

Monitoring & Reporting

Indicative national EE targets

Public sector

The new Energy Efficiency Directive - Main elements

. 2-step approach regarding targets. Increased role of the public sector. Energy efficiency obligation schemes or alternative approaches to be set by MS. Accurate and frequent individual metering and billing. Mandatory energy audits for large companies and promotion of audits for households and SMEs. Heat and cooling demand plans. Strong obligations for CHP. Energy efficiency to be taken into account in setting network tariffs and regulations. A number of 'horizontal' provisions, including on training and information

Article 16: Availability of qualification, accreditation and certification schemes

.Member States to consider whether the national level of technical competence, objectivity and reliability is sufficient.

. If not sufficient, Member States shall ensure that by 31/12/2014 certification/accreditation/qualification, incl. training programmes, become or are available.

. These schemes shall be made publicly available, provide transparency to consumers, be reliable and contribute to national EE objectives.

.Member States shall cooperate between themselves and with the Commission on scheme comparison and recognition.

Article 17: Information and training

.Member States shall:» Ensure that information on EE mechanisms/ financial and legal

framework is transparent and disseminated to all relevant market actors;

» Encourage the provision of information to banks/fin. institutions on possibilities for financing EE;

» Establish appropriate conditions for market operators to provide info/advice to consumers;

» Promote suitable info/awareness raising/training initiatives to inform citizens.

. The Commission shall:» Encourage European social partners in their discussion on EE, and

review whether its support to platforms also fosters EE training and take measures if needed.

» Encourage the exchange and dissemination of information on MSs' best practices.

EED - TIMELINE

• European Parliament vote11 September2012

• First of a series of expert meeting with Member States to discuss implementation

• Council vote – 4/10• EP/Council signature – within 22-26/10 Plenary

October2012

April 2013 • Member States submit National Reform Programmes with national energy efficiency objectives

first semester 2014

• Commission Assessment of progress towards 20% saving objective

26 September2012

• Publication in OJ – end November• Entry into force – end 2012

Nov. – Dec.2012

May/June 2014

• Transposition deadline – 18 months after the entry into force (note: some Articles have earlier or later deadlines)

The need for skills in the building sector

. EPBD recast, EED and RES Directive all require a step change in the ability of the building sector to deliver the new generation of buildings

. Today, about 1.1 million qualified workers are available, while it is estimated that 2.5 million will be needed by 2015 (mainly for low or intermediate skilled workers)

. € 33.7 billion by 2020: costs of unskilled buildings workforce

. In the response the Commission launched "Build UP Skills" under the Intelligent Energy Europe programme

Build Up skills

. "Pillar 1": Mapping exercise, funding has been made available under the IEE Call for proposals 2011 to set up national qualification platforms and roadmaps to 2020

. National projects of all Member States approved!

. “Pillar 2”: Focus on implementing of the roadmaps

Thank you!!!