Brussels – Europe needs to triple the impact of its energy efficiency policies to achieve its 20/20/20 targets set last year, according to a new study commissioned jointly by the European Climate Foundation (ECF) and the Regulatory Assistance Project (RAP).
The study, “Energy Savings 2020: How to Triple the Impact of Energy Savings Policies in Europe” – written by Ecofys and the Fraunhofer ISI – builds on the work of the ECF’s earlier report, “Roadmap 2050: A Practical Guide to a Prosperous Low-Carbon Europe”. It finds that the potential exists to reach the goal of a 20% energy saving by 2020 cost-efficiently, cutting energy bills by €78 billion for European consumers and businesses annually by 2020 – an average saving of €380 per household in 2020[1].
Full implementation of the 2020 targets will also reduce Europe’s dependency on energy sources outside Europe, contributing to a more secure energy future.
Europe’s renewable energy targets, CO2 emissions targets and energy infrastructure plans are all dependent on successful implementation of energy savings in line with the 2020 target.
However, current EU policy is delivering only one-third of the potential cost-effective savings measures. The study concludes that a binding energy savings target has a key role to play in providing energy efficiency policies and programmes with much needed structure and coherence from the European down to the local level in order for the available energy savings to be realized.
Fundamental issues in the current policy framework need to be addressed:
- There is no common methodology across EU Member States to measure energy savings. This is key to realizing economies of scale and impact of policy instruments.
- Existing policy instruments such as the Energy End-use Efficiency and Energy Services Directive are not effectively implemented, largely due to a lack of accountability and high-level political commitment.
- Investments in energy saving programmes and measures must be scaled-up. There is a need for financing mechanisms that channel public sources of capital while incentivizing private sector investments.
‘Energy Savings 2020’ shows clearly that energy savings, while making compelling economic sense, do not happen organically. Policy is required to incentivize change, and that change is fundamental to Europe’s energy future.
As the Roadmap 2050 report from the ECF has shown, effective energy savings measures are a prerequisite to the decarbonization of the European power sector regardless of the energy mix. Effective energy savings measures will boost the European economy, bring billions of Euros per year back into European markets, and through both implementation of measures and increased domestic revenues, result in increased economic activity and job creation.
Speaking before the launch, Jules Korthenorst, CEO of the European Climate Foundation, said, “Energy efficiency is crucial in the transition towards a low-carbon future, and this study shows that the EU is sitting on a vast untapped cost-efficient energy savings potential which it needs to take advantage of.”
Philip Lowe, Director General of the European Commission’s Directorate General for Energy, said at the launch, “We welcome the valuable contribution of this study which highlights both the benefits and challenges of achieving the EU’s 20% energy savings target. The study makes a constructive contribution to the ongoing discussions on the future of EU energy efficiency policy architecture.”
The Energy Savings 2020 Report, Executive Summary and related papers can be found at: www.energysavings2020.eu
Notes:
[1] Based on Eurostat projected EU population of 513.8 million by 2020 and average of 2.5 persons per household.
Source: ECF Press Release dated September 15, 2010.
