Brussels, 19/10/2006 (Agence Europe) - On Thursday, nearly four months behind schedule, the Commission adopted its Action Plan for Energy Efficiency setting out 75 ways to increase energy efficiency in the Union. By implementing the recommendations of the Green Paper 2004 on energy efficiency, it aims to exploit the economic potential of energy at a Community scale so that 20% of the EU's total energy consumption will be saved by 2020. Energy Commissioner Andris Piebalgs explained to the press on Thursday that, if fully implemented, the Action Plan would allow the Union's annual energy bill to be reduced by nearly €100 billion by saving some 390 million tonne equivalents of oil annually at $48 the barrel without taxes. It would also save 780 million tonnes of CO2 emissions per year (i.e. twice as much as foreseen in the Kyoto Protocol for 2012) by 2020.
The Commission states it is possible to enjoy the same quality of life while saving on energy use. It goes on to point out that “energy efficiency is first and foremost a matter of controlling and reducing energy demand, although targeted actions are required for both energy consumption and energy supply. 'Business as usual' is not a sustainable response”. Its ambition is to mobilise all policy makers and economic players (consumers, business, industry and the tertiary sector, the public sector and energy operators) to exploit the energy efficiency potential of infrastructures, buildings, appliances, processes, transport and energy systems. These potentials amount to 25% in industry, 26% in the transport sector and between 27% and 30% in the building sector (both commercial and residential), the Commission states.
In addition to the key proposals that take into account the Community legislative measures adopted recently, the Commission puts forward ten priority actions covering all sectors to be implemented as soon as possible. It also invites Member States, regional and local authorities and stakeholders to take complementary measures. An annex contains a list of all the measures suggested as well as a time table. The two separate working documents include specifications concerning these measures (savings potentials and impacts), as well as an impact assessment report.
The Action Plan, which must be implemented over the next six years and reviewed mid-term (2009), includes targeted sectoral and horizontal measures for:
(1) setting dynamic energy performance requirements for a wide range of products, buildings and services. To achieve this, the Commission will push Member States to fully implement the Community legislative and regulatory framework set in place (eco-design, labelling, energy end-use efficiency and energy services, energy performance of buildings and the Energy Star Regulation) to ensure rapid development of the internal energy market for energy efficient and energy saving goods and services. It will suggest strengthening this arsenal if necessary.
As consumers should take into account the energy efficiency of the products that they buy, the Commission will develop minimum energy performance standards for 14 groups of priority products (heaters, water heaters, computers, copying machines, televisions, standby modes, chargers, lighting, electric motors, air conditioning, washing machines, etc.) to have them approved end 2008. It plans to develop a working plan in 2007 for the realisation by 2010 of an internal market for other energy using products and to revise the directive on labelling to reinforce its effectiveness.
In order to improve end-use energy efficiency, the Commission hopes to develop, on the basis of Directive 2006/32/EC, a memorandum of understanding in cooperation with the Council of European Energy Regulators (CEER) setting forth guidelines and a code of conduct on improving energy end-use efficiency in all sectors. This directive will also enable an assessment of an EU-wide White Certification Scheme in 2008.
In order to improve the energy efficiency of buildings, the Commission will propose expanding the scope of the Energy Performance of Buildings Directive (2002/91/EC) substantially in 2009. It will also propose EU minimum performance requirements for new and renovated buildings and, by the end of 2008, will develop a strategy for very low energy or “passive houses”.
(2) using the considerable energy efficiency potential of new and existing second energy production capacities and reducing wastage during electricity production, transport and distribution. The energy transformation sector uses around one-third of all primary energy consumed in the EU and at the same time average transformation efficiency for electricity generation for example is around 40%, whereas new generation capacity can have an efficiency that is closer to 60%. In order to increase energy efficiency in the production and distribution of electricity, the Commission will, in 2008, develop minimum binding efficiency requirements for new electricity, heating and cooling capacity lower than 20 MW28 and consider, if necessary, such requirements for larger production units. It will also develop with the energy supply industry guidelines on good operating practices for existing capacity to raise average generation efficiency for all plants and agree guidelines on good regulatory practices to reduce transmission and distribution losses. A proposal for a new regulatory framework to promote the connection of decentralised generation will be put forward in 2007. Finally, it will ensure effective implementation of Directive 2004/8/EC on the promotion of cogeneration (CHP) and minimum performance requirements and regulations for district heating and micro-CHP will also be proposed as from 2007.
(3) increasing energy efficiency in transport through an integrated approach targeting certain players (engine and tyre manufacturers, drivers …). Stressing that the transport sector accounts for almost 20% of total primary energy consumption and that 98% of the energy consumed in this sector is fossil fuel, the Commission suggests achieving these energy efficiency potentials by ensuring fuel efficiency of cars, developing markets for cleaner vehicles, ensuring the maintenance of proper tyre pressure, and by improving the efficiency of urban, rail, maritime and aviation transport systems, as well as changing transportation behaviour. Determined to address energy efficiency and CO2 emissions from cars, the Commission will, if necessary, propose in 2007 legislation to ensure that the 120 g CO2/km target is achieved by 2012 through a comprehensive and consistent approach, if the car industry does not keep its voluntary commitment of reaching 140 g CO2/km by 2008/2009. It will also issue a mandate for a recognised European norm and possible international standard for maximum rolling resistance limits and labelling for road vehicle tyres. The Commission also promises a Green Paper on urban transport based on new approaches to encourage the use of public transport, car-sharing, non-motorised transport modes and telecommuting in European cities. Finally, it will study the possibility of using market instruments in the maritime transport sector and propose measures for the air transport sector such as its entry into the emissions quota trading system. Energy efficiency in rail transport will be promoted by complete implementation of its legal framework by 2007.
The Action Plan also includes measures to ensure foreseeable price signals and establish financial tools and economic incentives to make economic players aware and promote a behavioural change.
(4) Financing energy efficiency. The Commission pledges to identify and lift legal obstacles in national legislation to the use of companies supplying efficiency solution, shared and guaranteed savings, third-party financing and performance contracting. Public-private partnerships will be facilitated with the private banking sector, EIB Group, EBRD and other IFI funding. Through a number of specific initiatives in 2007 and 2008, the Commission will call upon the banking sector to offer finance packages specifically aimed at small and medium enterprises and Energy Service Companies to adopt energy efficiency savings identified in energy audits. It will encourage the use of structural and cohesion funds to promote energy efficiency in the new Member States. When it comes to taxation, the Commission will prepare a Green Paper on indirect taxation in 2007 and then review the Energy Tax Directive (2003/96/EC) in 2008. It will also study the costs and benefits of using tax credits as incentives for enterprises and for consumers also. The Commission invites the Council to adopt as soon as possible its proposal to relate taxation to CO2 performance and, in 2007, will suggest specific taxation arrangements for commercial diesel in order to reduce the excessive difference s between the level of taxes in the different Member States.
(5) Raising energy efficiency awareness. In addition to labelling, priority areas will include education and training plans and programmes for energy managers in industry and utilities. The Commission also promises to be exemplary in making the demonstration of new energy efficient technologies in buildings, vehicles and office machines. Among the most important measures, the Commission will, in 2007, launch a Mayors' Convention to bring together the mayors of 20-30 large European towns that are the most energy efficient to allow an exchange of ideas and good practice.
(6) Promoting energy efficiency in the world. Determined to make third countries more aware through energy efficiency agreements and partnerships and the use of technologies and techniques with good energy efficiency, the Commission will suggest, in 2007, an international framework agreement initiative on energy efficiency applying to the industrialised countries and also to developing countries. It also hopes to give greater importance to energy efficiency in the treaties, agreements, dialogues and other energy cooperation frameworks and in trade.
Finally, to stimulate innovation and technology, the Commission will present a strategic plan on energy technologies in 2007. (eh)