European Commission Philip Lowe, Director General, DG ENER European Roundtable – Concert Noble Brussels, 16 November 2010 EUROPEAN COMMISSION Financing energy efficiency in European buildings

The EU policy by 2020 Greenhouse gas levels Energy consumption Renewables in energy mix -20% 100% +20% 2/14

Multiple needs for action  Face climate change 3/14  Face economic crisis  Care for affordability  Care for security

New strategies on EU level Energy efficiency is key priority on EU level  “Energy 2020” European Strategy for Energy  New Energy Efficiency Plan European Strategy for Energy Efficiency  Energy Efficiency for European buildings: Part of the new EEP  Key date: 04 Feb 2011: EU summit on Energy 4/14

New Energy Efficiency Plan (EEP) New policy concepts in the EEP:  reach our 20% saving objective  mainstream energy efficiency in all relevant policy areas  build up commitment towards further energy efficiency up to and beyond 2020  EEP will address energy saving potential in all sectors (Energy sector, Buildings, Transport, Industry etc.) 5/14

EPBD: legislation on EE for buildings Buildings use ~40 % of EU’s energy Buildings responsible for ~36% of CO 2 -emissions  Cost-effective energy savings potential: ~30% in 2020  EPBD: All MS declared full transposition Crucial: Practical implementation of EPBD  Problem: Existing building stock Recast of EPBD: 1000m 2 -threshold abolished: EU building stock now completely touched 6/14

 Value of buildings: good performing >>> bad performing EPBD: legislation on EE for buildings 7/14 Energy Class A Energy Performance Certificate

How to boost large scale retrofit? Higher renovation rates of the existing building stock would speed up the process Barriers:  high upfront investment costs for renovations  low level of professional training  lack of information Possible answers:  financial support  targeted technical assistance 8/14

EU funds EE for buildings 9/14 Existing EU Funds financing EE for buildings: EU Cohesion Policy Fund “ELENA” - Commission in cooperation with EIB EEPR funds ICT Policy Support Programme 2010 Seventh Research Framework Programme 2020 European Fund for Energy, Climate Change and Infrastructure EBRD funds

Learn from examples 10/14 European Structural and Cohesion funds Budget ( ): EUR 308 billion (35,7% of total EU budget) Purpose: support of regional growth and job creation e.g. ERDF: up to 4% of total ERDF could be used on Energy Efficiency and renewable energy in existing housing Problem: Only small percentage (<20%) is being used by MS for Energy Efficiency measures Question: Why do MS not use these existing possibilities for renovation? Doesn’t EU encourage MS enough?

Learn from examples 11/14 “ELENA” (European Local Energy Assistance) Budget: EUR 15 million/a Purpose: support of local and regional authorities Success: leverage effect could be produced (EUR 2 Million ELENA grant, mobilizing ~EUR 500 Million in investments) Problem: large-scale EE/RES-programmes needed Question: How to find scaleable and replicable investment models?

EU funds on EE to be developed 12/14 EEPR – “unspent funds” Budget: ~ EUR 146 million new fund out of the unspent money of the EEPR Purpose: make projects on Energy Efficiency and Renewable Energy projects bankable Problem: How to tackle the upfront investments Question: Given the stretched budgetary situation of many municipalities, could it be a possibility to support also Public Private Partnerships (e.g. Energy Performance Contracting)

What could help to speed up? 13/14 Statements to be discussed: Should public sector lead by example in the field of Energy Efficiency on buildings? Is it a lack of information/guidance that MS are not sufficiently investing in Energy Efficiency though it is a cost-effective way to mitigate climate change and create new jobs? Should the EU play a stronger role by promoting the EU funds financing EE for buildings?

Thank you! 14/14