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Fit for 55 package can deliver, thanks to new tools - study

(eceee news, 11 Oct 2021) The Fit for 55 package has the potential to deliver on the EU’s energy efficiency targets while the economic energy savings potentials for 2030 are increasing, according to a new study by Stefan Scheuer Consulting and Fraunhofer ISI.

According to the study, the proposed recast of the Energy Efficiency Directive increases the EU target ambition, makes the EU level target binding, and introduces potentially powerful target governance tools.

The Fit for 55 package includes a formula to allocate the EU’s 2030 energy efficiency targets among Member States. A target allocation has been used with success for renewable energy and climate targets but is new to energy efficiency.

The proposed EU 2030 energy efficiency-target levels of reducing energy demand by 9% compared to business as usual is an increase from the current 32.5% target to 36% for final energy demand and 39% for primary energy demand.

According to the study, latest assessments show that economic energy savings potentials have been growing and if tapped would reduce final and primary energy demand by 17% and 18% respectively compared to business as usual.

The Fit for 55. package includes important new elements which boost the delivery of energy efficiency targets. Carbon pricing for buildings and transport could, if coupled with requirements to use the new revenues, through the new Social Climate Fund, give vulnerable parts of society access to energy efficiency improvements. 

The study includes the results of a test run of the new formula to allocate the target among Member States.

»This proposal is a leap for the credibility of EU energy efficiency policy«, says Stefan Scheuer, Director of Stefan Scheuer Consulting. »The governance tools are put forward to secure a new and binding EU target. But they need to be placed in the right order, so that at the end of the target allocation the wrench is at hand to tighten the nut. Extended carbon pricing coupled with the Social Climate Fund can provide the tailwind for energy efficiency investments, further boosting confidence that this time the EU is going to deliver on its targets.«

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The report can be downloaded here