Energy Efficiency Directive – last negotiations underway

13.06.2012 - The new Energy Efficiency Directive has faced some hard times during the last months. However, the negotiators are meeting for a final trialogue discussion today (a meeting of member states, MEPs and the European Commission). The deal that is expected to emerge should then be signed off by member states diplomats on Thursday and by energy ministers on Friday, when they meet in Brussels for the Energy Council.

The new energy efficiency law proposed by the European Commission last summer was to fill the gap towards the 20% energy efficiency target (a saving of 368 million tonnes of oil equivalent) in 2020. Current EU policy is on track to deliver just 9%. The Commission proposal aimed to lift this to 17%, with new transport and eco-design initiatives to make up the remainder. Meeting the
20 % target has been put forward as a means for greening the European economy, creating jobs, and providing energy security, competitiveness and ultimately, lower energy bills.

But the member states and the European Parliament have clashed over the Commission's plans – and the Council has weakened the original proposal greatly. During an informal Energy Council in April, the European Commission presented a non-paper on the Energy Efficiency Directive providing information on its estimated costs and benefits. The Council’s version of the Directive is estimated to reduce primary energy consumption only by some 58.1 Mtoe (Million tonnes of oil equivalent) while the Commission’s proposal would deliver a saving of 151.5 Mtoe (the figure needed to close the gap, together with the measures in the transport sector, in order to achieve the 20% target).

As financing aspects are of utmost importance when talking about the Energy Efficiency Directive, members states are currently reluctant of smoothing the path for the energy savings in the current economic crisis. The energy efficiency which delivers long-term savings requires substantial upfront investment and finance ministers today are much more concerned with limiting expenditure than planning investment. Also some member states share the opinion that EU should not be deciding on detailed measures on energy efficiency.

The main issues that are at stake in todays negotiations:

• The 3 % annual floor space renovation target initially planned for public buildings is likely to be for central-government buildings only. However, it seems that the Parliament is set to win on a proposal for long-term building renovation roadmaps.
• For financing the draft negotiating text includes a call on member states to set up national financing programmes for energy efficiency, fed by EU regional development funds.
• The Commission had proposed that member states should require energy retailers or distributors to save 1.5% among end-users every year, calculated from their previous year’s sales. It seems that due to a list of „flexibility measures” proposed by the members states the energy suppliers would have to deliver 1.125% savings a year instead of 1.5%.
  
  

Since the beginning, Climate Alliance has endorsed binding targets for the new EED:

• A binding 20% energy savings target, that should be set as mandatory;
• The 3% yearly refurbishment target for public buildings which could also serve as an important step towards a more long term targets needed for 2050
  
  

In its response to the consultation on “Financial support for energy efficiency in buildings”, Climate Alliance highlighted once again that the energy efficiency agenda requires strong regulation supported by adequate financing mechanisms.

Further reading:
Articles by Sonja van Renssen

- Is Europe giving up on energy efficiency?

- EU set to seal deal on energy efficiency