Posts By :
Almut Bonhage
The new EU Energy Efficiency Directive – getting stronger
https://www.stefanscheuer.eu/wp-content/themes/osmosis/images/empty/thumbnail.jpg 150 150 Almut Bonhage Almut Bonhage https://secure.gravatar.com/avatar/a3d1000d4d9fc174801655823d6ddab4?s=96&d=mm&r=g
A new era for energy effciency policies is about to start. On the 10th of March 2023, EU law-makers achieved a deal for the recast of the Energy Efficiency Directive (EED).
The 2030 energy efficiency target has become more ambitious, responding to soaring energy costs and to the war in Europe. But it still falls short of what would make sense from a climate protection and responsible investor perspective.
But most importantly, the EU’s 2030 target has become more focused and comes with a credible governance to reassure investors, businesses and citizens that it is much more serious this time around. Member States have new obligations vis-à-vis the EU target and to put in place energy efficiency measures that will be checked against delivery.
Implementation will have to be very fast to catch up with the cycle of National Energy and Climate Plans. It will require timely delivery by the Commission to work with the new benchmarks and to correct national contributions.
Not all countries are happy with the benchmarks set in the new EED for their national contributions. Those who think they did more in the past than others tend to feel disadvantaged. That was the case with the first EED, the 2018 revision and now again.
With a bit of distance, we hope that the perspective becomes clearer, that national energy saving efforts are not an altruism, but are bottom line services to lower costs for citizens and business and shield national interests from fossil fuel wars.
In a nutshell
- The new EED has increased the 2030 energy efficiency ambition: the EU targets are set at 763 Mtoe final energy consumption and 992,5 Mtoe primary energy consumption, which is 11.7% below the Reference Scenario 2020. However, this remains still well below the cost-effective potential which kept increasing with higher energy prices.
- The governance of the 2030 target for final energy consumption has been significantly strengthened. The binding character of the EU level target is manifested by legal obligations on the European Commission and Member States.
- The EED comes now with a new gap-avoider tool: the Commission has to ensure that national contributions leave no gap to the EU target. In case of low ambition, Member States have to accept and apply a corrected contribution handed over by the Commission. A last-minute addition to the baseline used for the assessment of national contributions causes uncertainties about the functioning of the governance tools. But in our understanding, the impact will be limited.
- Furthermore, a new gap-filler tool is added: the adequacy of national energy efficiency measures will be checked against delivery. Member States have to set an indicative trajectory. If a Member State is above the trajectory, it will be obliged to put in place additional energy efficiency measures.
- The EU’s target for primary energy demand is only indicative and the governance tools do not apply to it. It weakens energy efficiency policies targeting the whole energy system, including generation, storage and transmission.
Consolidated text of the new Energy Efficiency Directive. 24 March 2023
Breakthrough for a German Energy Efficiency Law
https://www.stefanscheuer.eu/wp-content/themes/osmosis/images/empty/thumbnail.jpg 150 150 Almut Bonhage Almut Bonhage https://secure.gravatar.com/avatar/a3d1000d4d9fc174801655823d6ddab4?s=96&d=mm&r=g
The German government is about to propose an ambitious energy efficiency law.
Environmental and business groups have been calling for a legal framework on energy efficiency for many years. Chancellor Scholz decided that it was about time and ordered his government to deliver.
Our briefing provides an overview of what is in the draft law which is currently prepared by the ministry in charge of energy and puts it into the context of the ongoing recast of the EU Energy Efficiency Directive.
Stefan Scheuer, Briefing on the German Energy Efficiency Law, 22nd November 2022
DENEFF, Press release and position on the Energy Efficiency Law, 23rd November 2022
High energy prices drive up need for energy savings
https://www.stefanscheuer.eu/wp-content/themes/osmosis/images/empty/thumbnail.jpg 150 150 Almut Bonhage Almut Bonhage https://secure.gravatar.com/avatar/a3d1000d4d9fc174801655823d6ddab4?s=96&d=mm&r=g
Latest research shows that the EU’s economic energy savings potentials are growing as energy prices increase. The European Commission has proposed a 9% energy savings target for 2030 in the Fit for 55 Package, but the economic potential could reach up to 23% in case whole-sale energy prices are double in 2030 compared to the EU’s estimate before Russia invaded Ukraine earlier this year.
Niels Fuglsang, MEP: ‘The EU Parliament has paid close attention to the economic potentials in the past. These new findings show that we need to work hard with Member States to acknowledge the growing importance of energy savings.’
Prof. Dr. Wolfgang Eichhammer, Fraunhofer ISI: ‘The assessment of economic potentials is an important tool to support the setting of energy saving targets, which are feasible and maximise benefits for citizens. The new energy price outlook for the EU drives up the potentials significantly.’
Stefan Scheuer, Director, Stefan Scheuer Consulting: ‘The EU can and must increase its energy saving ambition. It will keep our energy bills in check and accelerate the phase out of Russian oil and gas.’
Mirella Vitale, Senior Vice President, ROCKWOOL Group: ‘Tapping into the EU’s cost-effective energy savings potential is essential to protect households and businesses from runaway energy bills. But we need to act now. We’ve been having the same debate for 10 years – we cannot afford to delay actions to the next decade.’
Christian Noll, Managing Director, DENEFF: ‘It will cost many billion Euro to not increase political efforts on energy efficiency! In the face of an energy price and security crisis, we expect the German government and other European leaders to push for more ambition in the EU council negotiations.’
Wolfgang EICHHAMMER, Stefan SCHEUER: Assessing the impact of high energy prices on the economic potentials for energy savings in the EU, April 2021.
With the support of
- Deutsche Unternehmensinitiative Energieeffizienz e.V. (DENEFF), Berlin, and
- ROCKWOOL Group
Publication on Fraunhofer ISI website
High energy prices drive up need for energy savings
https://www.stefanscheuer.eu/wp-content/uploads/2022/04/energy-prices-briefing-pic.png 587 843 Almut Bonhage Almut Bonhage https://secure.gravatar.com/avatar/a3d1000d4d9fc174801655823d6ddab4?s=96&d=mm&r=gLatest research shows that the EU’s economic energy savings potentials are growing as energy prices increase. The European Commission has proposed a 9% energy savings target for 2030 in the Fit for 55 Package, but the economic potential could reach up to 23% in case whole-sale energy prices are double in 2030 compared to the EU’s estimate before Russia invaded Ukraine earlier this year.
Niels Fuglsang, MEP: ‘The EU Parliament has paid close attention to the economic potentials in the past. These new findings show that we need to work hard with Member States to acknowledge the growing importance of energy savings.’
Prof. Dr. Wolfgang Eichhammer, Fraunhofer ISI: ‘The assessment of economic potentials is an important tool to support the setting of energy saving targets, which are feasible and maximise benefits for citizens. The new energy price outlook for the EU drives up the potentials significantly.’
Stefan Scheuer, Director, Stefan Scheuer Consulting: ‘The EU can and must increase its energy saving ambition. It will keep our energy bills in check and accelerate the phase out of Russian oil and gas.’
Mirella Vitale, Senior Vice President, ROCKWOOL Group: ‘Tapping into the EU’s cost-effective energy savings potential is essential to protect households and businesses from runaway energy bills. But we need to act now. We’ve been having the same debate for 10 years – we cannot afford to delay actions to the next decade.’
Christian Noll, Managing Director, DENEFF: ‘It will cost many billion Euro to not increase political efforts on energy efficiency! In the face of an energy price and security crisis, we expect the German government and other European leaders to push for more ambition in the EU council negotiations.’
Wolfgang EICHHAMMER, Stefan SCHEUER: Assessing the impact of high energy prices on the economic potentials for energy savings in the EU, April 2021.
With the support of
- Deutsche Unternehmensinitiative Energieeffizienz e.V. (DENEFF), Berlin, and
- ROCKWOOL Group
Energy sufficiency as a strategy
https://www.stefanscheuer.eu/wp-content/uploads/2022/04/Overview-sufficiency.png 427 566 Almut Bonhage Almut Bonhage https://secure.gravatar.com/avatar/a3d1000d4d9fc174801655823d6ddab4?s=96&d=mm&r=gMany citizens are appalled by the war in Ukraine and want to do something. This momentum is worth being taken up. Energy sufficiency is an act of practical solidarity and offers a way out of feelings of helplessness.
A group of scientists and representatives of civil society is addressing their theses on how to use energy sufficiency as a strategy to politicians, businesses and citizens.
Link to original text (in German)
Link to list of signatories and additional resources
Energy efficiency targets explained
https://www.stefanscheuer.eu/wp-content/uploads/2022/01/PDF-EE-targets-e1643365087375.png 409 581 Almut Bonhage Almut Bonhage https://secure.gravatar.com/avatar/a3d1000d4d9fc174801655823d6ddab4?s=96&d=mm&r=gThe European Commission proposed a 2030 EU energy efficiency target of at least 9% below the new REF2020 scenario, in absolute numbers 1023 Mtoe for primary energy consumption (PEC) and 787 Mtoe for final energy consumption (FEC). This level is based on the ‘Mix55’ scenario of the Climate Target Plan. The European Commission states this is the level needed to reach in a cost-effective way the EU 2030 climate target of reducing GHG emission by 55% and ultimately the carbon neutrality target set for 2050.
This level of ambition:
- is to be seen as an absolute minimum. Going below would jeopardise the climate neutrality goal and make the clean energy transition more expensive;
- is well below the cost-effective potential for energy efficiency. According to latest modelling, it would stand at 18% for PEC and 17% for FEC;
- is built on the current 2030 target gap for FEC. The new baseline EU reference scenario (REF2020) reaches in 2030 a FEC of 864 Mtoe, well above the current target of 829 Mtoe (adjusted to new Eurostat method). According to explanations in REF2020, this difference for FEC is due to unambitious national contributions set by Member States in their NECPs summing up to -29.6% instead of the required -32.5%. The gap for PEC was closed by taking into consideration measures to phase out coal and nuclear. It reaches 1124 Mtoe, which is slightly below the current target of 1128 Mtoe (see graphs below).
Conclusion:
- The proposed target level is at the lower end of what is needed to secure a fast, fair and attractive transition to a climate-neutral energy system. A higher target level would be beneficial, in particular to protect the most vulnerable. In order to achieve a higher level, the annual savings in Article 8 need to be adapted accordingly (see position of the Coalition for Energy Savings, January 2022).
- The binding character of the EU target and national contributions, and a strengthened target governance are key for the success of energy efficiency policy.
- The REF2020 baseline for FEC is weaker than the current target, due to the gap to meet it. This is a sign of policy failure. The EED recast is the opportunity to improve the governance.
Dashboard on energy performance of buildings in Europe
https://www.stefanscheuer.eu/wp-content/themes/osmosis/images/empty/thumbnail.jpg 150 150 Almut Bonhage Almut Bonhage https://secure.gravatar.com/avatar/a3d1000d4d9fc174801655823d6ddab4?s=96&d=mm&r=g
The new dashboard monitors progress of buildings across the EU 27 Member States towards the 2050 net-zero GHG emissions goal with a focus on energy use in residential buildings (75% of the European buildings stock). It shows data since 2005 and will be regularly updated over the coming years. This should normally happen in January, when Eurostat publishes new energy data on energy efficiency. Policy indicators will be updated as new information becomes available.
Final energy consumption (FEC) data are the central parameter of this dashboard. They are closely linked to the EU’s energy efficiency target and the energy performance of buildings. Data on energy use are collected systematically, robust and regularly updated. The FEC data are complemented by a set of additional qualitative and quantitative indicators, which help to draw a detailed picture of the situation and progress on the ground.
The Dashboard was developed by Stefan Scheuer Consulting for the European Climate Foundation and first published in June 2021. Data visualisation by Maarten Lambrechts. Latest update: January 2022.
Dashboard on energy performance of buildings in Europe
https://www.stefanscheuer.eu/wp-content/uploads/2022/01/Dashboard.png 880 705 Almut Bonhage Almut Bonhage https://secure.gravatar.com/avatar/a3d1000d4d9fc174801655823d6ddab4?s=96&d=mm&r=gDeveloping and running a dashboard on the energy performance of the EU buildings stock. The dashboard on progress of Europe’s buildings towards climate neutrality monitors progress of buildings across the EU 27 Member States towards the 2050 net-zero GHG emissions goal. The dashboard is mandated by the European Climate Foundation.
Toxic-free products by 2030
https://www.stefanscheuer.eu/wp-content/uploads/2022/01/BMUV_Fz_2021_Web_500px_Farbe_en-1024x299.jpg 1024 299 Almut Bonhage Almut Bonhage https://secure.gravatar.com/avatar/a3d1000d4d9fc174801655823d6ddab4?s=96&d=mm&r=gCHEM Trust and the European Environmental Bureau (EEB) are campaigning for EU policies and rules to ban the most harmful chemicals from consumer products by 2030. It will give substance to the European Green Deal toxic-free environment and zero-pollution ambition. The EU’s main chemical framework, REACH, is scheduled for revision in 2023.
The project is funded under the European Environment Initiative (EURENI) launched by the Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU).