European Parliament Backs Energy Efficiency as the Cornerstone for Climate Change Policy

Drastic cuts in carbon emissions are necessary to prevent damaging climate change in Europe, and a key committee of the European Parliament recently concluded that the most immediate and cost-effective means of achieving carbon constraints is to use energy more efficiently.

On Wednesday, December 19th, the Industry Committee of the European Parliament backed the European Commission’s proposed Action Plan for Energy Efficiency and the establishment of a Global Energy Efficiency and Renewable Energy Fund. In doing so, they have approved a plan that explicitly states that energy efficiency “is by far the most effective way concurrently to improve security of energy supply, reduce carbon emissions, foster competitiveness, and stimulate the development of a large leading-edge market for energy-efficient technologies and products." To achieve these objectives, the Action Plan targets the following sectors: residential and commercial buildings, the manufacturing industry, and transportation.

The overall purpose of the Action Plan is to improve energy efficiency within the EU by over 20% by 2020. The policy adopted on December 19th is planned to cover a six-year period, recognizing that further action will need to be taken by 2020. While not intended to be a mandate, the Action Plan was written to mobilize the general public and other stakeholders within the framework of the energy efficiency debate. The Action Plan states, “Energy efficiency is about informed choice by individuals, not just about legislation.”

The proposed Global Energy Efficiency and Renewable Energy fund is intended to promote private sector investment in renewable energy technologies. The main objective would be to promote energy efficiency, energy savings, and more renewable energies, while also reducing the amount of greenhouse gas emissions.

EU Action Plan Priorities for Energy Efficiency

1.) Buildings: Due to overall consumption used, residential and commercial buildings may provide the largest cost-effective energy savings potential, according to the European Commission. Full potential is estimated to be around 27% to 30% of total energy use. Priority Action 1 of the EU Action Plan calls for the updated labeling and minimum energy performance standards for 14 groups of appliances and other energy equipment based upon the Labeling and Eco-design Directives. The products are as follows:

• Boilers
• Water heaters
• Computers
• Imaging
• Televisions
• Standby
• Chargers
• Office lighting
• Street lighting
• Room air
• Motors
• Cold commercial
• Cold domestic
• Washing

Priority Action 2

The European Commission proposes expanding the Energy Performance of Buildings Directive in 2009 after the directive has been fully implemented. The Commission will work to develop a strategy for new buildings for very low energy or passive houses (zero-energy houses) with input from Member states and key stakeholders. This input will help the Commission to encourage more deployment of these houses by 2015, including within the Commission.

Proposed Priority Action 3

Beginning in 2008, the Commission plans to develop a minimum standard for binding efficiency requirements for new electricity, heating and cooling capacity that is lower than 20 MW, while also considering requirements for larger production units. In addition, the development of good operating practices guidelines, in coordination with the energy supply industry, to raise average generation efficiency for plants and new regulatory practices to reduce distribution and transmission losses.

Proposed Priority Action 4

The Commission proposes to ensure that the 120 g CO2/km target for cars is achieved by 2012, while also strengthening EU requirements for labeling. If it becomes clear that the voluntary commitments of the car industry will not reach a 140 g CO2/km level by 2008 or 2009, the Commission threatens to propose legislation to reach the 120 g CO2/km level by 2012. The Commission will work with industry, local and regional representatives to establish other measures. There will be proposed a new approach to encouraging the use of public transportation, car-sharing, non-motorized transportation and telecommuting, while also focusing on improvements within the maritime sector and aviation sectors.

Proposed Priority Action 5

This proposal calls upon the banking sector to offer financing packages aimed at small and medium enterprises and Energy Service Companies to adopt energy efficiency savings found through energy audits. In addition, the Commission encourages Access to Community financing, such as Green Investment funds and the use of Structural and Cohesion funds for leverage of private financing at the national and local levels for energy efficiency. This action will seek to identify and remove the legal barriers to the use of ESCOs, and other contracting instruments for energy efficiency.

Proposed Priority Action 6

The Commission encourages European Regional Policy to deploy a national and regional program to promote more intensive investment to improve energy efficiency. This will include multi-family and social housing sectors. This action is also mainly directed at new Member States. It calls for a network of Member States to work together to develop and share “best practices.”

Proposed Priority Action 7

The Commission recognizes that education is the key to improving energy efficiency, in doing so they propose to increase awareness through education and training plans for energy managers in industry and utilities. Included within this framework, will be teaching aids, for primary, secondary, and vocational education through work with Member States and Community educational agencies. The Commission also proposes to show leadership by incorporating energy-efficient technologies in their buildings, vehicles, office supplies, and other equipment, by adopting procurement guidelines.

Proposed Priority Action 8

The Commission will establish a “Covenant of Mayors” to bring together a network of Mayors from Europe’s largest and most “pioneering” cities. The goal of this group will be to exchange ideas and apply best practices of improving energy efficiency in an urban environment.

Proposed Priority Action 9

The plan calls for energy efficiency worldwide by reaching a framework agreement with key external trading partner countries, including Brazil, China, India, Japan, Russia, and the United States, along with other international organizations. This agreement will focus on improving overall energy efficiency in end-use sectors and in the transformation of energy through a variety of different policies and measures. The goal of this action is to develop cooperation on energy efficiency measurement and evaluation, minimum performance requirements for goods and services, labeling and certification, energy audits, stand-by losses, codes of conduct, and more on a more global basis.