EuroACE: Commission sticks to old habits and ignores Growth, Jobs and Energy Security Potential of our Buildings

(eceee news, 24 Jul 2014) The Commission revealed the last piece of the puzzle for the EU’s 2030 Energy and Climate Package with a 30% energy efficiency targetat today’s Press Conference about its Communication on Energy Efficiency. EuroACE urges Member States to make this target bindingwhen it is proposed for adoption at the European Council in October.

“Such a weak figure for Energy Efficiency is inconsistent with what the market is asking, what citizens are asking, what member states are asking and even what evidence-based research is saying” explained Adrian Joyce, Secretary General of EuroACE. “The outgoing Commission is deliberately turning a blind eye to the increased benefits of setting a 40% Energy Efficiency target - acknowledged even in the Commission’s own Impact Assessment!”

In addition to its large job creation potential, Energy Efficiency is described by the IEA as the ‘EU’s First Fuel[1]’, due to the significant contribution that increased Energy Efficiency could bring to reducing energy imports in the EU. The EU imports nearly 54% of its energy needs every year (a cost of over €1.1bn every day), and became fully dependent on foreign imports on 18th June this year[2], a date expected to come earlier in next year’s calendar unless the EU takes serious action to reduce its energy demand with a binding 40% Energy Efficiency Target.

Aware of these multiple benefits, the European Parliament called for a binding 40% Energy Efficiency Target in its 2030 Report[3] in February. Ministers from seven EU countries also came out strongly in favour of a binding Efficiency Target for 2030 in a letter[4] last month addressed to President Barroso, echoing the call made over the past two years by a wide range of stakeholders.

Research indicates that the cost-effective potential available in the EU economy for Energy Efficiency is 40% [5] for 2030, with a significant contributing role for the buildings sector (a potential of 61% for residential sector and 38% for tertiary sector has been identified), which represents the largest energy consuming sector in the EU at a high of 40%.

Energy Efficiency in buildings is expected to feature high on the political agenda for the next Commission. President-elect Juncker has already expressed his strong support by stating in a forward-looking introductory speech that “A binding 30% energy efficiency target is for me the minimum.[…] I would like to significantly enhance energy efficiency beyond the 2020 objective, notably when it comes to buildings”[6].

The Commission’s Communication (not yet available online) is expected to acknowledge the opportunity in the buildings sector and the need to accelerate renovation rates across the EU in order to reap benefits, without however turning words into actions and providing market certainty to unlock investments, according to an earlier version of the Communication.

“Unlocking the potential in the buildings sector is key to EU’s economic recovery and EU energy independence, but it is also responds to societal aspiration to live in better performing, more comfortable buildings”, said Susanne Dyrboel, President of EuroACE. “Only a 40% binding Energy Efficiency target coupled with an ambitious sectoral target for buildings would provide the strong signal that market stakeholders are awaiting in order to unleash investment and economic growth in the EU’s Energy Efficiency industry, which is currently struggling to maintain its global leading position”.

[1] Energy Efficiency Market Report 2013 -- Market Trends and Medium-Term Prospects, IEA, 2013
[2] Speech pronounced by Adrian Joyce at the Informal Energy Ministerial in May 2014
[3] European Parliament Report on a 2030 framework for climate and energy policies (2013/2135(INI)) (Delvaux/Szymanski)
[4] Letter to Barroso from 7 EU Ministers
[5] Analysis of a European Reference Target system for 2030, Fraunhofer Study, October 2013
[6] Jean-Claude Juncker’s Political guidelines for the next European Commission: “A new start for Europe: My agenda for Jobs, Growth, Fairness and Democratic Change”, 15 July 2014, Strasbourg