Europe Calls for Redoubled Effort to Meet 2020 Efficiency Targets

In March, the European Commission (EC) released a communiqué, titled Energy Efficiency Plan 2011, calling on European Union (EU) entities to increase their efforts to meet targets of 20% energy efficiency by 2020. This target was set in the Europe 2020 growth strategy, which includes a range of economic targets for the EU and its member states. It was proposed as a roadmap for “smart, sustainable, inclusive growth.”

The communiqué notes the EC’s concern that at current projections the EU will only meet around half of this 20% efficiency goal. While it notes that progress has been good in the areas of appliances and buildings, further concerted efforts will be needed; further work on efficiency in buildings, transportation and products and processes (viz. industry) is particularly needed. The 20% efficiency figure is based on projected energy demand in 2020.

The other two parts of the “Resource Efficient Europe” initiative within the Europe 2020 strategy, 20% renewable energy and 20% reductions in carbon emissions, are expected to be on target; it is only energy efficiency that is lagging behind. However, if the efficiency goal is met, along with the safe renewable energy goal, carbon emissions in the EU would be expected to drop 25% from 1990 levels by 2020 without any additional carbon-cutting measures.

Looking Beyond 2020

Although this particular communiqué was released in the context of the 2020 growth strategy, the issues discussed are also key elements of the EU’s Roadmap for Moving to a Competitive Low Carbon Economy by 2050. Energy efficiency is expected to play a leading role in this carbon reduction effort – a reduction in energy use of 30% relative to 2005 levels (not to be compared with 20% below projected 2020 levels in the Europe 2020 goals) is sought from the energy sector, homes and businesses.

At the same time, the electricity sector would be expected to take on a much larger share of Europe’s transportation and heating needs to reduce fossil fuel use – benefiting both greenhouse gas emission levels and energy security. It is noted that failure to take action now may mean that carbon-intensive investments become locked in over the short term, making longer-term emissions reductions more difficult.

Meeting Energy Efficiency Targets

The Energy Efficiency Plan 2011’s three areas for particular focus are buildings, transportation and industrial processes (and thus the products that come from industry). 

The plan identifies building energy efficiency as holding the greatest potential for energy efficiency; the renovation of existing building stock (including appliances) is of particular importance – public building retrofits are identified as a driver for greater building efficiency across the market. Utilities may be required to conduct efficiency programs for customers’ building stock.

The second most important area for efficiency gains is transportation, although details of transportation efficiency programs are to be laid out in an upcoming white paper.

Thirdly, addressing energy efficiency in the industrial sector will reduce the energy intensity of manufactured goods. Efficiency standards for industrial equipment, energy audits, energy management systems, and information provision for smaller manufacturers are expected to address the energy use of European industry.

First Steps

Initially, energy efficiency programs of member states will be evaluated to gauge how they will contribute to the 20% goal. In 2013, a review will identify what additional measures at a Europe-wide level will be needed to meet the goal.

While it is expected that regulations from the European Commission will be applied in the EU member states, for that to happen the members generally must enact such regulations through their individual legislative or regulatory processes. They may have some leeway in how they choose to incorporate these targets and associated regulations. They also may take some time to do so or even neglect to do so, potentially dampening the effect of these EU-level actions.

Resources

Energy Efficiency Plan 2011
Europe 2020
Roadmap for moving to a competitive low-carbon economy in 2050
European Alliance to Save Energy press release on EU efficiency targets, December 2010