1. The Ecofys Reports – key arguments to support energy efficiency in buildings EU STRUCTURAL FUNDS TRAINING DAY March 06, 2006

2. What is at stake? Global Warming – Europe’s reputation at stake Under the Kyoto Protocol Europe is committed to reduce its greenhouse gas emissions by 8% by 2008-2012. Not only are current policies insufficient to achieve this goal, failure to meet it will severely undermine the moral authority of Europe in negotiating future commitments. Security of Energy Supply – more dependence, less stability The EU’s dependence on foreign energy supplies is expected to increase to 70% by 2030. Given the current potential for conflicts in major energy exporting regions, we are gambling with the future of the economy. The Lisbon Process – action not words needed The reform process needed to implement the Lisbon Strategy is way behind schedule. In the recent report from the High Level Group Chaired by Wim Kok this was recognised and action on eco-efficiency was seen as an area for focus.

3. Meeting these challenges z z z Improving energy efficiency improves economic efficiency Global Warming Security of Energy Supply The Lisbon Process Buidlings alone have the pontential to reach Kyoto objectives Reducing energy demand in buildings can help limit our exposure to supply issues No action Action EU unlikely to meet Kyoto objectives Increasing dependenc e on foreign energy sources Lisbon objectives not achieved

4. ECOFYS reports – quantifying the potential Climate ProtectionRegulationCompetitivenessEnlarged EU

5. STEP 1 - Climate protection (EU 15)

6. Potential from buildings (EU 15) - CO 2 savings Total heat related emission Technical potential emission reductions Annual CO 2 Emissions in the European Building Stock (EU 15) (Mt/a) 398 725 Reduction Potential from Buildings

7. STEP 2 - Quantifying the impact of regulation (EU 15)

8. Quantyfing the gap in the EU Transport Industry Buildings Only ten percent of the potential for buildings is being seized by the Energy Performance of Buildings Directive

9. Key findings

10. Key findings - in detail Technical potential for buildings > 1000 m ² amounts to 82 Mt/a Technical potential for all buildings: 398 Mt/a Main potential in moderate and warm climate

11. Key findings All small buildings Current EU rules ECOFYS Study New buildings Existing large buildings

12. STEP 3 - Quantifying the impact on competitiveness (EU 15)

13. Potential from buildings (EU 15) - cost savings Individual

14. Potential from buildings (EU 15) - cost savings Societal 8 Billion EURO

15. Conclusion for jobs o Impact on jobs based on:  Construction market  Equipment  Maintenance of equipment o Impact expected to lead to up to: 300,000* new jobs per year * Eurima estimate

16. STEP 4 - Extending all the results to the new Member States (EU 8)

17. Same potential of energy savings  40% of Energy Use Large potential of CO 2 reduction  60 million tonnes Significant potential of cost savings  0.5 Billion EURO Major job potential  230 000 extra jobs New Member States – common opportunities

18. New Member States – different challenges Crisis in the Housing Sector  Suffer from inadequate condition of their homes  High energy bills  Very poor energy efficiency levels Need for urgent refurbishment

19. Specific in new Member States – job creation Up to 230,000* New Jobs * Eurima estimate

20. New Member States – barriers Barriers to energy efficiency investment  Poli  Political and institutional  Financial and economic  Legal  Capacity and social

21. STEP 5 - Adjusting the results to the new energy prices (EU 25) ECOFYS VI

22. A changing landscape

23. The need for actions What needs to be done? Correct implementation EPBD to be fully extended to all buildings Used to refurbish buildings National Action Plans to focus on buildings What is the EU Doing? EPBD Green Paper Structural Funds Energy Services Directive