Energy Financing Energy Efficiency Philip Lowe Director General Directorate-General for Energy

Energy The EU targets by 2020 Reduce greenhouse gas emissions by 20% Increase share of renewables to 20% 100% Reduce energy use by 20% -10% Current trend to % 20% Current trend to 2020

Energy Despite untapped savings potentials across all major sectors Savings expected to be achieved with already existing measures Remaining saving potential to be addressed with new measures IndustryCommercialResidentialTransport 2% 5% 16% 11% Economic potential [Mtoe] Sectors covered by EED

Energy Policy response: a new Energy Efficiency Directive Services Energy supply House- holds Industry General promotional measures new EED Sectoral measures Monitoring & Reporting Indicative national EE targets Public sector

Energy …and beyond 2020? Roadmap 2050 Explore routes towards a low-carbon energy system by 2050 Give more certainty to governments and investors Energy efficiency is a no-regrets option Well-functioning energy markets are key

Energy What is the investment need? Energy savings potential across sectors requires investment of around 850 billion ( ) Around 85 billion per year Buildings take the lions share of around 60 billion per year

Energy What is currently available at EU level? Cohesion policy funds ( ): 4,6 billion for energy efficiency Intelligent Energy Europe Programme ( ): 735 million for soft energy efficiency/renewables projects ELENA Facility: 97 million for technical assistance to mobilise investments European Energy Efficiency Fund (EEE-F): 265 million for investments into mature, bankable efficiency/renewables projects 20 million for technical assistance

Energy What will be available at EU level? Next Multi-Annual Financial Framework ( ) proposals: Cohesion funding to allocate some 17 billion to energy efficiency and renewable energy (doubling current allocations) Horizon 2020: 6.5 billion is to be allocated to research and innovation in "Secure, clean and efficient energy"

Energy What works? National funding programmes KfW energy efficient building and renovation programmes in Germany Every Euro invested returned 2-5 Euros to state coffers, mainly through job creation! Year Credit volume (mEUR) Promoted investment (mEUR) Promoted jobs Source: Impact on public budgets of KfW promotional programmes in the field of "energy-efficient building and rehabilitation", Research Centre Jülich, October 2011

Energy What works? Energy performance contracting Berlin has made use of energy performance contracting since 1996 Over 1300 public buildings have been upgraded Cost savings of about 10,5 million - i.e. a quarter of the energy cost of the buildings involved

Energy What works? Energy saving obligations in Member States Cost of delivered savings lower than price of energy

Energy What do we need going forward? Engagement, especially of the financial sector, to: Convince policy makers Assist in policy development Support leveraging of public money

Energy What could we do to help? Commission to launch consultation on financial support for energy efficiency in buildings How could access to financing be improved? What is the role of the EU regulatory framework? How to remove important barriers?