European Commission –Cabinet of Commissioner Andris Piebalgs EU Energy Efficiency Initiatives Stina Soewarta, European Commission Prague, June 2, 2005 EURIMA conference

European Commission –Cabinet of Commissioner Andris Piebalgs Outline l Green Paper u reasons, objectives, scope, timetable l The Directive on Energy end-use efficiency & energy services u progress in Council, remaining issues, timetable l Buildings and Eco-design Directives

European Commission –Cabinet of Commissioner Andris Piebalgs Green Paper Green Paper Gross energy consumption (1725 mtoe) 2005

European Commission –Cabinet of Commissioner Andris Piebalgs Green Paper EU has large potential to improve energy efficiency and to save energy l Lisbon & Kyoto require improved energy efficiency l Measures in pipeline can achieve half of potential l Additional measures needed for period to 2020 l All sectors to contribute.

European Commission –Cabinet of Commissioner Andris Piebalgs Green Paper

European Commission –Cabinet of Commissioner Andris Piebalgs Green Paper Energy efficiency and saving energy EU priorities l Need to provoke a public debate l Need to discuss roles for EU and Member States l Need action now l Will propose concrete measures for debate l Commission adoption foreseen in June

European Commission –Cabinet of Commissioner Andris Piebalgs Green Paper Barriers to improvements in energy efficiency l Structural factors linked to the market l Lack of commitment among public authorities l Indifference among consumers l The difficulty of defining a fair price

European Commission –Cabinet of Commissioner Andris Piebalgs Green Paper Additional measures proposed  Energy savings in power stations: 40 Mtoe  Cogeneration: 20 Mtoe  Buildings Directive to cover all buildings: 30 Mtoe  Implementing the Eco-design Directive: 20 Mtoe

European Commission –Cabinet of Commissioner Andris Piebalgs The Directive on Energy end-use efficiency & energy services l To promote cost-effective energy efficiency using targets, mechanisms, incentives and institutional, financial and legal frameworks to remove market barriers and imperfections. l To develop and transform energy efficiency measures into a commercially viable and self- sustaining market. l To develop a market for integrated energy services (energy + technology).

European Commission –Cabinet of Commissioner Andris Piebalgs The Directive on Energy end-use efficiency & energy services l 1 % annual overall target for each MS (Article 4): l 1,5 % annual public sector target (Article 5): - to increase the demand for EE products and energy services through public procurement l Obligation for energy distribution and/or retail energy sales companies (Article 6): - to ensure the active offering and promotion of energy services to customers

European Commission –Cabinet of Commissioner Andris Piebalgs The Directive on Energy end-use efficiency & energy services Expected impact of Directive: l Will expand market for energy services & efficiency l Will increase use of energy performance contracts, 3 rd -party financing & other shared-savings contracts l Harmonised definitions, measurements will promote single market for energy services and efficiency l Harmonised bottom-up measurement system could allow for an EU-wide white certificates market

European Commission –Cabinet of Commissioner Andris Piebalgs The Directive on Energy end-use efficiency & energy services l Constructive development in Council; LUX Pres. foresees Political Agreement in June l UK Pres. wants Common Position by end 2005 l General agreement on measurement system: Committee & harmonised top-down/bottom up system l Council issues: mandatory vs. indicative targets; public sector target vs. procurement requirements

European Commission –Cabinet of Commissioner Andris Piebalgs Other Initiatives l Eco-design Directive: wide-ranging & effective l Buildings Directive: already having strong impact