Energy Efficiency in the context of the European Green Deal

of the European Green Deal
The Baltic Leadership Programme on Energy

Efficiency
4th module - Designing cooperation

in legislation by March 2020
Comprehensive plan to increase the EU’s

climate target for 2030 to at least 50% and towards 55% in a responsible way by October 2020
Review and revise where needed all relevant legislative measures to deliver on this increased ambition by June 2021
Carbon border adjustment mechanism for selected sectors by 2021.
A new EU Strategy on Adaptation in 2020/2021

Climate Plans by June 2020
Review and revise where needed the

Renewable Energy & Energy Efficiency Directive by June 2021
Off-shore wind initiative in Q4 2020
Review the TEN-E Regulation
Renovation wave for the building sector doubling the renovation rate Q3 2020

action plan by March 2020, including a sustainable products policy
Clean

Steel breakthrough technologies leading to a zero carbon steel making process by 2030.
Legislation on Batteries and Circular Economy in 2020
Propose legislative reforms tackling waste

in 2021
Address industrial pollution from large industrial installations in 2021
Chemicals

strategy for sustainability in June 2020

EU Biodiversity Strategy for 2030 in March 2020
Follow up with concrete measures in 2021 to address the main drivers of biodiversity loss
A new EU Forest Strategy in 2020
Measures to support deforestation-free value chains from 2020

to significantly reduce the use of chemical pesticides, fertilizers and

antibiotics
Examination of the draft national strategic plans, to meet the ambitions of the European Green Deal and the Farm to Fork Strategy in 2020/2021

2020
Revise the CO2 emissions performance legislation for light duty

vehicles by June 2021
Extend EU’s Emissions Trading to the maritime sector, and to reduce the free allowances for airlines by June 2021
Support public charging points: 1 million by 2025
Boost the production and supply of sustainable alternative fuels for the different transport modes
Review the Alternative Fuels Infrastructure Directive and the TEN-T Regulation in 2021
More stringent air pollutant emissions standards for combustion-engine vehicles

Europe Investment Plan in January 2020
Initiatives to screen and benchmark

green budgeting practices of the Member States and of the EU from 2020
Review of the state aid guidelines for environment and energy, as well as other climate and energy-related guidelines in 2021
Align all new Commission initiatives in line with the objectives of the Green Deal and promote innovation from 2020
Stakeholders to identify and remedy incoherent legislation that reduces the effectiveness in delivering the European Green Deal from 2020
Review of the Non-Financial Reporting Directive In 2020
Integration of the Sustainable Development Goals in the European Semester from 2020

as priority
Implementation of the existing legislation to achieve the agreed

2020 and 2030 targets
Assessment of the National Energy and Climate Plans
Review of the ambition for energy efficiency in view of a higher climate target for 2030 (Directive 2012/27/EU)
Renovation Wave and New Ecodesign Working Plan
Possible areas of cooperation in the context of the BEMIP (exchange of best practice)
Financing for energy efficiency

the course of:
Planning (e.g. NECPs)
Policies and measures
Investment decisions

concerning in

particular energy infrastructure

policies and measures in the area of energy security and internal energy market (Annex I part I of GOV)

all decisions about energy system development be that homes, offices, industry or mobility

MS should explain how the principle is embedded in the NECP’s overall strategy – and also setting up a process to safeguard the principle including monitoring.

Energy Efficiency First principle considered as priority

as priority (2)


Putting in place processes for assessing each energy

planning and investment decision against a robust energy efficiency scenario (and report in the NECP on the results).
Assess each measure (especially those related to energy security and internal energy market) against an EE measure, which would allow reaching the same objective.
Comparing the costs and benefits of solutions improving energy efficiency versus supply-side investments in energy (electricity, fuels, heating, cooling and ventilation) on a fair basis.

The Commission is working on a “standard” methodology / guidance for the application of the principle in preparation to be used for “an ‘EEF test’

the agreed EE targets
Achieving the EU EE 2020 target –

through e.g. delivering energy savings obligations under Art. 7 of EED – new savings each year in demand side - buildings, transport etc.).
=> “Task Force on mobilising efforts to achieve the 2020 targets
Implementing the NECPs – policies and measures to achieve the EU target for 2030 (upcoming transposition deadlines in 2020 for the amended EPBD and the EED).
Reporting and monitoring under the Governance Regulation (1st report by the Member States by 15 March 2023).
Before => assessment of the NECPs to check the ambition to the 32.5% target level for 2030 (June 2020).
=>“Gap filling” mechanism under the Governance Reg.

2030, in view of a carbon neutral economy by 2050
Higher

ambition for energy efficiency for 2030 - review and revise, if necessary, the Energy Efficiency Directive (June 2021)
The EED review will aim to assess:
Whether the EED is fit to deliver on a higher climate ambition (evaluation) – link to the Comprehensive Plan for 50-55% climate target for 2030.
Explore which measures at EU level would allow reaping cost-effective energy savings potential to reach this ambition.
Explore how other sectors (e.g. ICT, agriculture) could contribute to achieve a higher ambition (also through the EEF).

will aim to outline an integrated strategy for renovation, with

an action plan to address main barriers and reinforce “pull” factors (3Q 2020).
Will offer an Open Platform, bringing together buildings and construction sector, architects and engineers, and local authorities.
Will have synergy with the Climate Pact, (focus on citizens’ engagement initiatives, awareness and building support for deep building renovation across Europe).
Will also include innovative financing schemes under InvestEU.

Buildings are responsible for 40% of EU energy consumption and 36% of the GHG emissions, mostly for heating and cooling, and 50 mln struggle to keep their homes adequately warm

Renovation wave to improve energy performance of buildings

practice)



To ensure the implementation of the existing legislation in particular

Art.7 EED on energy savings obligations via:
Strengthening the existing measures – focus on monitoring and verification (e.g. EEOS)
Designing new measures – Annex III of Governance, including measures targeting energy poverty (focus on 2021-2030)

Targeting demand side sectors - buildings, transport and supply side

Compliance and enforcement of EU law

practice)
Explore new approaches to boost “mini-renovations” of heating systems in

old multi-family houses where comprehensive renovations are not planned in near future.
Aim: tap potential savings from hydraulic balancing, thermostatic radiator valves and heat cost allocation (link to Art. 9(3) EED).
Organise joint framework procurement processes to:
Scale up market, attract/build up supply side capacity & lower costs
Set min. technical and process requirements to ensure adequate quality
Include technical assistance, and (private) financing as optional add-on
Offer buildings “ready to go package”

Targeting demand side sectors - buildings, transport and supply side (2)

..developing joint innovative approaches…

practice)
Targeting demand side sectors - buildings, transport and supply side

(3)

Sharing good practices:
On how to unlock private financing for energy efficiency investments using innovative financing instruments and
On how to reduce the investment gap and accelerate the rate of renovation of existing buildings by more efficient use of both public and private resources.
Key input :
The study “Benchmarking for mobilising investments in energy efficiency” (Oct. 2018 – Sep. 2021) aims to benchmark different energy efficiency market practices in the MS in specific fields (renovation concepts, financial instruments to unlock private financing, efficient district heating systems) and to develop concept paper on technical assistance.

Unlocking private financing…

share than ever before.
Use of InvestEU to leverage private and

public investments in sustainability.
The Just Transition Mechanism and Fund to ensure that no one is left behind.
The EIB as the EU climate bank.

1. Fund

Mobilise at least EUR 1 trillion of sustainable investment over the period from 2021 to 2030 at the level of the Union!

1. Fund

and renewed strategy.
Sustainability part of the European Semester and benchmarking

of green budgeting practices.
Renewed push on green public procurement (incl. min. targets)
Review of relevant state aid rules.

2. Enable

Enable the transition through targeted actions in areas that directly touch upon investment decisions of private investors and public entities.

2. Enable

States in identifying needs and organising relevant resources.
Target advisory

facilities under the InvestEU Advisory Hub for sustainable investment.
Sustainable Procurement Screening’ instrument for public infra.

3. Execute

Assist project promoters to prepare, develop and implement sustainable projects; support public administrations to identify investment needs and organize relevant measures.

3. Execute