Water-energy nexus and energy saving obligations: industry success stories

This paper showcases concrete examples of water and energy saving projects across sectors and European countries. These feature some of the most advanced environmental technologies currently available on the market, allowing to deliver environmental, economic and social benefits.

Water and energy are deeply entwined. The water-energy nexus refers to the relationship between how much energy is needed for abstracting, moving, heating, cooling, storing, treating and disposing water and how much water is used for generation and transmission of energy.

This nexus is expected to intensify in the coming years. So far, Member States have notified a limited set of water-related measures in the framework of Article 7 of the Energy Efficiency Directive (EED). The most frequently notified measure is the production of hot water by solar collectors or more efficient gas water heaters. However, these measures rather relate to heat generation than water production, distribution, use, and wastewater treatment.

Raising awareness about the energy-water nexus can help:

  • Member States prioritise efficient use of both water and energy;
  • the business community to bring to market technologies and solutions designed to deliver water and energy savings across industries, municipalities and buildings; and
  • the EU to deliver the energy savings and emission reductions necessary to achieve the ambitious goal of climate neutrality by 2050.

 

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Inputs for economic recovery, resilience and long-term sustainability

This short paper outlines the inputs of the European Alliance to Save Energy to achieve a green economic recovery, resilience and long-term sustainability in the aftermath of the Covid-19 pandemic. 

These include spending criteria and quota that should be applied in both the Recovery and Resilience Facility Regulation (RRF), currently being negotiated by the European Parliament and Council, as in the National Recovery and Resilience Plans (NRRPs).

The paper calls for prioritising investments in areas such as energy efficiency rather than lock-in resources in fossil fuel infrastructures that undermine the achievement of the Union’s climate and environmental objectives.

A key area of intervention to boost energy efficiency and cut CO2 emissions is represented by buildings. In the NRRPs, Member States should priorities cost-effective renovation programmes that foster the quality, rate, and depth of comprehensive renovations.

Technical assistance is also essential to remove the hurdles for local authorities, SMEs and corporate investments to implement energy efficiency projects and renovate the building stock.

 

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Decarbonising Europe’s buildings with available solutions, no hydrogen

Meeting the EU’s goal of achieving a climate neutral economy by 2050 will require a steep reduction in gas demand, and such reduction will need to start before 2030. This means the EU should focus on immediately available and cost-effective solutions, starting from energy efficiency and renewables, especially for buildings.

While green hydrogen can play a role in decarbonising the EU economy, its pathway comes with many uncertainties linked to the costs of its production, its inefficiency and effective application and should therefore be limited to hard-to-abate sectors only.

As for the heat policy for decarbonisation of buildings, the paper calls for the acceleration of energy efficiency options that can immediately deliver real carbon savings, while accommodating a growing share of renewable energy.

 

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Response to the Roadmap on the revision of the Energy Efficiency Directive

The European Alliance to Save Energy (EU-ASE) welcomes the opportunity to provide feedback to the European Commission’s publication of an inception impact assessment on the revision of the Energy Efficiency Directive (EED). The Alliance brings together businesses, think thanks and Members of the European Parliament to ensure that the voice of energy efficiency is heard across the business and political community.

he EU-ASE welcomes the strong narrative on energy efficiency in the roadmap as well as its proposal to revise the current EED. The Directive has played a significant role in bringing energy efficiency up in the political agenda, stimulated increased national efforts, and resulted in some energy efficiency improvements. However, it did not lead to the creation of the much needed binding and long term legal framework to mobilize the investments required to tap the savings potentials across sectors and deliver the multiple benefits of energy efficiency to citizens, businesses and the environment. This shortcoming also stems from the imperfect implementation of the Directive. As a consequence, in many countries, the energy savings delivered fell short of the minimum required and are insufficient to achieve the national targets. We note that the Commission is rightly stepping up enforcement and we fully support strengthening the legal requirements for more effective implementation.

The current review should ramp up the ambition in light of the EU’s new climate objectives. The EED targets must be aligned with the European Green Deal and its goal to achieve climate neutrality by 2050 at the latest, as well as intermediary targets. According to the International Energy Agency (IEA), 76% of the European greenhouse gas emission reductions required to keep temperature increases below 1.5°C must come from energy efficiency. Therefore, the overall energy consumption reduction is the foundation for achieving climate targets while ensuring a deep economic transformation that is supporting a circular, resilient and equitable post-COVID recovery.

For policy-makers, investing in energy efficiency means investing in a fast, smart and sustainable recovery which is ‘made in Europe’. The International Patent Classification green patents inventory of the World Intellectual Property Organization shows that among the countries with a higher concentration of filings for patents in energy conservation technologies, there are the EU Member States such as Germany, France, and the Netherlands. Investing in energy efficiency means supporting the growth, competitiveness and long term sustainability of European manufacturers, solution providers and local value chains. The EED review is paramount in that respect and should be carried out in such a way to support job creation, sustainable growth and climate change mitigation and adaptation in one of the most innovative and strategic sectors of the European Union.

Based on this, EU-ASE would like to highlight the following recommendations to support the Commission in its ongoing work on the EED revision.

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EU-ASE response to the Inception Impact Assessment on the Revision of the UWWTD

The European Alliance to Save Energy (EU-ASE) welcomes the opportunity to provide feedback to the European Commission’s publication of an inception impact assessment on the revision of the Urban Waste Water Treatment Directive (UWWTD).

While the Directive has played a substantial role in improving the quality of European water resources and reducing pollution levels in water bodies, we believe that Europe remains some way from full compliance with collection and treatment requirements and has made little progress with water reuse.

We believe the 29-year-old Directive should be updated to better address these critical issues and today’s challenges including climate change, resource scarcity, increased energy consumption and population growth.

Based on this, EU-ASE would like to highlight the following recommendations to support the Commission in its ongoing work on the UWWTD revision.

1. Digitalisation as a key opportunity.

2. Make use of data transparency and advanced data analytics for a knowledge based
approach.

3. Preserving natural water resources with smart water management.

4. Better legal framework for urban runoff and storm water management.

5. Carbon neutral waste water management.

6. Circular economy for water.

7. Supporting investments. 

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