MEPs propose binding national energy efficiency targets

The European Parliament's Industy and Energy Committee (IEC) has adopted its first vote on the draft Energy Efficiency Directive. The  Committee said that the national targets, which will be based on specific reference values for each country, will enable the EU to meet its current non-binding target of using 20% less energy as a result of energy efficiency measures by 2020. The European Commission has estimated that, if binding targets are not set, the EU will only achieve half of this target.

If the draft  Directive (82-page / 385KB PDF) is finally adopted, the Commission will need to check whether member states are on track to achieve their targets by June 2013. A proposal for energy saving targets for 2030 will follow by June 2014.

The Directive should also impact on CO2 use, and so the Commission will be asked to reconsider and reduce the amount of allowances granted under the European emissions trading scheme (ETS), the Committee said.

“This vote is a major sign that Parliament, with a majority including most political parties, takes rising energy costs and energy poverty seriously. Energy efficiency offers possibilities for job creation - notably in the building sector. Now governments have a choice: protect citizens against energy poverty and create many job opportunities or allow big energy companies to make ever-increasing profits,” said Energy Committee rapporteur Claude Turmes.

The so-called ’20-20-20’ targets were endorsed by European leaders in 2007. They call for a reduction in EU greenhouse gas emissions of at least 20% below 1990 levels, for 20% of EU energy consumption to come from renewable resources and for a 20% reduction in primary energy use compared with projected levels to be achieved by improving energy efficiency, all by 2020.

“To a certain extent the UK is already ahead of the game as a result of legally binding targets in the Climate Change Act and the carbon budgets set by the Climate Change Committee,” said environmental law expert Linda Fletcher of Pinsent Masons, the law firm behind Out-Law.com. “The Act calls for an 80% reduction in emissions by 2050 from a 1990 baseline, and a 34% reduction by 2020.”

However, the renovation requirements for public buildings in the proposals would have particular implications for public bodies at a time when those bodies were already struggling with resource issues, she said.

Under the proposed new measures, member states will need to start renovating 2.5% of the total floor area of public buildings with a total usable area of more than 250 square metres by January 2014, or find alternative ways to achieve equivalent energy savings. Buildings account for 40% of the EU’s energy consumption and 36% of its CO2 emissions, according to the Committee’s figures.

Public bodies that purchase or rent products, services, systems and buildings will also need to consider energy performance requirements as part of any procurement exercises.

Simon Hobday, also of Pinsent Masons, added that the Directive was “quite a controversial measure” that would likely undergo several changes before ratification. Already up for discussion was whether efficiency measures would need to be introduced at the primary fuel level, through replacing existing plant with more efficient generation technologies, or just at point of use, he said.

“One can however anticipate that Denmark at the current President country will drive the measure through if it can, although with its presidency ending in June time is short,” he said.

Denmark has set agreement on energy efficiency measures as one of the priorities for its six month term as EU president.