ENERGY EFFICIENCY AGREEMENTS 2017–2025

Energy Efficiency Agreements 2017-2025 INDUSTRIES │ MUNICIPAL SECTOR│ PROPERTY SECTOR │ OIL-HEATED REAL ESTATES Comprehensive voluntary energy efficiency agreement scheme was initiated in Finland as early as in 1997 The agreement scheme has produced desired results The new agreement period 2017–2025 was launched in January 2017 Energy CONSERVATION Agreements 1997–2007 Energy Efficiency Agreements 2008−2016 Energy Efficiency Agreements 2017−2025

Energy Efficiency Agreements 2017-2025 INDUSTRIES Energy Efficiency Agreement Industry Energy Intensive Industry l Food and Drink Industry l Chemical Industry Technology Industry l Wood Product Industry l Industry - General Energy sector Energy Production l Energy Services Service sector Commerce Sector l Hotel and Restaurant Sector l Motor Trades & Repairs l Services – General PROPERTY SECTOR Energy Efficiency Agreement MUNICIPAL SECTOR Energy Efficiency Agreement HÖYLÄ IV − oil sector Energy Efficiency Agreement COMMERCIAL PROPERTIES HOUSING PROPERTIES CITIES & MUNICIPALITIES & JOINT MUNICIPALITIES Distribution of liquid heating fuels Oil-heated real estates

Energy Efficiency Agreements 2017–2025 AGREEMENT PERIOD │ AGREEMENT TERMS │ JOINING As the main rule, joining the agreement applies to the energy use of the entire company/association Joining the agreement spans the entire agreement period 2017–2025 If joining takes place before the end of 2018, withdrawal from the agreement is possible at the end of 2020, without possible sanctions relating to energy subsidies ENERGY EFFICIENCY AGREEMENT PERIOD 2017–2025 1st term 2017–2020 (4 YEARS) 2nd term 2021-2025 (5 YEARS) Implementation period 2014−2020 of the Energy Efficiency Directive (EED)

Energy Efficiency Agreements, Finland's first choice in the implementation of the EED Energy Efficiency Agreements represent the primary measure for Finland to fulfil the strict EU obligations on energy efficiency Energy Efficiency Directive (EED) (2012/27/EU) The goal of the Energy Efficiency Agreement results is to cover more than half of the binding national energy savings target set by the EED article 7 for the implementation period 2014−2020. Voluntary agreements are an alternative to new national legislation or other new coercive means. The nationally binding energy efficiency obligations can be implemented in Finland through voluntary measures, only if the agreement scheme is comprehensive and meets the set targets on improvement in energy efficiency.

Energy Efficiency Agreements NATIONAL BENEFITS Increase cost efficiency & and improve operational capabilities in municipalities and companies The primary means in the implementation of the EU Energy Efficiency Directive (EED) Serve also to implement the Energy Performance of Buildings Directive (EBPD) A central role in Finnish energy policy Help to meet international climate-related obligations Help to achieve the targets set as obligations for greenhouse gas emissions Facilitate the realization of the obligations set for renewable energy Create green growth & markets for clean technology solutions Improve Finland’s security of supply and self-sufficiency on energy Exclude the detrimental effects caused by taxation or legislation on the competitive edge of companies An alternative and supplementary aid for new legislation/coercive measures

Energy Efficiency Agreement BENEFITS FOR THE JOINING PARTICIPANT Improving energy efficiency will turn into a useful mode of action Pruning unnecessary energy costs will improve profitability and operating profit Energy subsidies granted by the Government can be utilized for energy efficiency improvements Expedient energy use is responsible energy use The climate load of operations will be reduced The agreement scheme will become a natural part of management systems Builds and improves positive public image A more flexible and sensible alternative for new national legislation or other coercive means

Subsidies for energy audits and energy efficiency investments INDUSTRIES │ MUNICIPALITIES │ PROPERTY AND BUILDING SECTOR The Government subsidies* the Motiva-model energy audits and analyses. According to Article 6 of the Energy Efficiency Act (1429/2014), the mandatory energy audits of large companies are not subsidised The Government subsidies* case-dependently available for energy efficiency investments* using new energy-efficient technology The participants in Energy Efficiency Agreements can also apply for discretionary subsidies* from the Government for conventional energy efficiency investments * Energy subsidies are not granted for housing properties

Concessions to legally binding obligations MANDATORY ENERGY AUDITS OF LARGE COMPANIES │ COMPANIES SUBJECT TO AN ENVIRONMENTAL PERMIT A large company is considered to meet the requirements set in Article 6 of the Energy Efficiency Act (1429/2014) regarding the mandatory energy audit, if the company has joined an Energy Efficiency Agreement and it has implemented an EES+ (Energy Efficiency System +), which does not have to be certified Companies participating in an Energy Efficiency Agreement and subject to an environmental permit are not subject to any separate requirements relating to energy efficiency in their environmental permits.

14.2 TWh/a 10.9 Concrete savings achieved The following savings have been achieved in the beginning of the year 2016 through the measures carried out over 2008–2015: 14.2 TWh/a + 1 TWh/a clients 10.9 END USE Saved electricity 3.3 TWh/a The total amount corresponds to the annual energy use of over 710 000 detached houses Saved heating energy and fuels 10.6 TWh/a The impact on savings produced by customer-oriented energy efficiency guidance equals the annual energy consumption of approx. 50 000 detached houses Reduction in carbon dioxide emissions 4.2 Million tonnes/a Savings in energy costs approximately €MILLION 500/a Investments in energy efficiency over 2008-2015 €MILLION 1050

Energy Efficiency Agreements 2017−2025 TARGET SETTING FOR COVERAGE by the end of 2018 INDUSTRIES Energy Intensive Industry: 100% of companies Medium-sized Industry and Private Service sector: 50%−65% of the energy use in agreement areas Energy Production : 85% of electricity production, 70% of district heating production Energy Services: 80% of distribution and sales of electricity and district heating PROPERTY SECTOR Commercial properties: 80% of surface area of the target group Rental housing properties: 80% of surface area of the target group MUNICIPAL SECTOR Cites and municipalities: 75% of population OIL SECTOR │DISTRIBUTION OF LIQUID HEATING FUELS − OIL-HEATED REAL ESTATES Höylä IV: 80% of distributed liquid heating fuels

Energiatehokkuussopimukset 2017–2025 PARTICIPANT TARGET SETTING − INDUSTRIES* │ MUNICIPAL SECTOR │ PROPERTY SECTOR Indicative target in energy units will be set in accession documents Target for the whole period will be set for the year 2025 and intermediate target for the year 2020 Target for the year 2025 corresponds 7.5% of the participant energy use** Target for the year 2020 corresponds 4% of the participant energy use The targets will be calculated on the participant’s most recent available energy use which corresponds normal operation Participant’s absolute energy use need not in years 2020 and 2025 to be less than in the year reported in the accession document To be countable for the follow up of the achievement of the targets energy savings for the implemented measures need to be in force in the follow up year * Medium-sized industry and private service sector * If participant wants to use 2014−2016 reported measures targets are higher (10,5% and 7%)

Energiatehokkuussopimukset 2017–2025 EXAMPLE OF TARGET SETTING − INDUSTRIES* │ MUNICIPAL SECTOR │ PROPERTY SECTOR Indicative energy savings target for the agreement period 2017−2025 Participant’s most recent available energy use which corresponds normal operation 1 000 MWh Intermediate target for the year 2020 at least 4% = 40 MWh Target for the whole period for the year 2025 at least 7.5% = 75 MWh Indicative energy savings target for the period 2014−2025 Intermediate target for the year 2020 at least 7% = 70 MWh Target for the whole period for the year 2025a at least 10.5%= 105 MWh Participant’s absolute energy use need not in years 2020 and 2025 to be less than in the year reported in the accession document Energy savings measures which are targeted to the energy use from where the targets are calculated and of which the energy savings are still effective are accepted when the achievement of the targets is followed up * Medium-sized industry and private service sector

Energy Efficiency Agreements 2017−2025 THE JOINING PARTICIPANT AGREES TO CONTINUOUS IMPROVEMENT The aim is to include continuous improvement in energy efficiency, as part of the existing or planned management systems or operating plans. To achieve the targets, the participant is obliged to: Organize and plan the implementation Figure out the possibilities for improvement in energy efficiency Implement cost-effective energy efficiency improvement measures Take energy efficiency into consideration in planning and purchasing Train the staff and provide communication on energy efficiency matters Annual reporting The participant also strive to implement new energy efficient technology and increase the use of renewable energy sources. Every participant carries out their measures from their own starting point and agrees to do their best to achieve the targets The work requires commitment by the management, setting long-term goals and targets as well as systematic implementation and monitoring of these tasks

Energy Efficiency Agreements 2017−2025 JOINING THE AGREEMENT − INDUSTRIES │ PROPERTY AND BUILDING SECTOR │ MUNICIPALITIES FILLING OUT and SUBMITTING the signed accession document* and participant data for the association** INSPECTION of the accession document * and data in the association** The company BECOMES A PARTICIPANT in the Energy Efficiency Agreement Association* signs the accession document* and send s it to the company/municipality * In the municipal sector: Participant's energy efficiency agreement ** In the municipal sector: Energy Authority Motiva enters the participant into the participant register A company becomes a participant in an energy efficiency agreement after the industrial federation/association** has verified the accession document* and the participant data as valid and a copy of these has been delivered to Motiva for entry into the participant register.

Be among the first ones to join Make your decision to join now! Energy Efficiency Agreements play a key role in achieving the energy efficiency goal set for Finland in the Energy Efficiency Directive Good coverage and results of the agreements will continue to be preconditions for the voluntary responsibility In order to achieve the targets set for savings, it is important that the agreements will continue without a break at the beginning of 2017 and that savings start to accumulate already during the first agreement year Questions regarding to join the agreements can be sent to the email address: kysy@energiatehokkuussopimukset2017-2025.fi

Questions? kysy@energiatehokkuussopimukset2017-2025.fi

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