1 EU Policies on Sustainable Energy Regions for Economic Change Workshop on Low-Carbon Economy: Energy Efficiency in Regions and Cities Brussels 21 May 2010 Maud SKÄRINGER European Commission Directorate-General for Regional Policy

2 Solidarity in practice: The EU Cohesion Policy : 347 billion euro invested for less well-off regions or citizens in infrastructure, business, environment and training of workers Regional Fund Social Fund Cohesion fund Convergence objective: regions with GDP per capita under 75% of the EU average. 81.5% of the funds are spent on this objective. Regional competitiveness and employment objective.

3 Cohesion Policy & Environment Win-win policy: - Positions EU as lead market in green technologies - Creates new and sustainable jobs in local economies (growth) - Improves and protects the environment Environmental Services 54 billion Low Carbon Economy 48 billion Eco- Innovation 3 billion 105 billion in total 30% of total Cohesion Policy funds times more than in ( 37 billion)

4 Petroleum products 2% Natural gas 6% Electricity (TEN-E) 3% Electricity 3% Natural gas (TEN-E) 3% Wind 7% Solar 10% Biomass 17% Hydroelectric, geothermal and other 10% Energy efficiency, co- generation, energy management 39% CP allocations to Energy Sector Total = 10.8 billion (3.1 % of total) 9 billion sustainable energy. 1.8 billion traditional energies & interconnectors.

5 Allocations to Energy Sector as % of total CP allocations per MS Source: Infoview 2009

6 Energy efficiency in the recovery package Amendment to existing regulation (May 2009) Up to 4% of the national ERDF allocation can go to energy efficiency and renewable energy in housing Eligible projects to be defined in a way supporting social cohesion Further amendment to take effect shortly to facilitate the use of innovative financial instruments in this area

7 Focus on Sustainable Energy in Buildings Building sector, a win-win opportunity: –41 % of EU final energy consumption in buildings (vs. 32% transport & 28% industry) and 36% of CO 2 emissions –Single most cost-effective sector for energy reduction: Estimated 30% reduction potential by 2020 –New buildings may represent about 1% of total stock focus on existing buildings

8 Green energy for the hospital of Szeged (HU) Old steam boilers & external pipe system replaced Computer controlled energy systems 800 m² of solar panels New system = 20% energy saving

9 Strategic Report 2010: Different rates of progress in key themes GL1: Attractive places GL2: Improving knowledge & Innovation GL3: More and better jobs

10 Progress Energy priorities Codes 33-43: 10,8 bn available Average project selection 13,2% = 1,4 bn Good progress – CZ, LT

11 ENERGY EFFICIENCY – CURRENT FRAMEWORK... contributes towards the 20% primary energy savings target in 2020 FUEL EFFICIENCY OF CARS ENERGY TRANSFORMATION BUILDINGS APPLIANCES FINANCING SMEs & ESCOs FINANCING EE NMS (ERDF) LOCAL ACTION TAXATION AWARENESS INTERNATIONAL Energy Efficiency Action Plan 6 priority areas 10 priority actions 85 measures

cities signed up so far Commitments of Local Authorities when joining the Covenant: Reduce their CO 2 emissions by more than 20% by 2020 Prepare a Baseline Emission Inventory Submit a Sustainable Energy Action Plan Publish regular Implementation Reports Organise Local Energy Days Spread the message of the Covenant of Mayors Covenant of Mayors

13 Promotion of the Covenant Technical and strategic assistance Financial support or opportunities Intermediary between Signatories and EC Assistance in organising Energy Days Follow-up and feedback COVENANT SUPPORTING STRUCTURES Their missions

14 Technical assistance facility managed by EIB Financing development of bankable investment projects or programmes Aiming to ensure the eligibility of the supported investment projects or programmes for further EIB funding Funded through Intelligent Energy Europe programme, contributing to its objectives ELENA – European Local Energy Assistance Condition: Projects contribute to the achievement of the CO 2 reduction objectives fixed in the Sustainable Energy Action Plans within the Covenant initiative

15 Current situation Further opportunities Substantial funds still available during period: 13% allocation on energy vs 27% on average for Cohesion Policy as a whole Regulatory changes – Member States encouraged to use the new possiblities

16 More information / Applying for funding Cohesion Policy project examples: List of Cohesion Policy funds Managing Authorities: n.cfm Covenant of Mayors: ELENA: ?lang=en

17 Energy intensity & CP allocations to energy efficiency per MS