Telling the energy efficiency story – 2022 in review

The energy crisis and price hikes exacerbated by the Russian invasion of Ukraine put a lot of pressure on governments, citizens and businesses, who were still recovering from the pandemic shock. 

In this context, in 2022, the Alliance threw its weight behind demonstrating to EU decision makers that existing energy efficiency solutions are key to address the energy crisis and reach climate neutrality globally.

We continued our work on the implementation of a work programme which involved all our members and was structured around four main objectives:

• Energy efficiency boosted by policy and regulatory framework
• Unleashing the energy savings potential of water efficiency in EU legislation
• Financing energy efficiency
• Smart, digital and effective communication to achieve advocacy objective

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Step up political leadership on energy demand reduction

It’s four months since European Leaders agreed to reduce their countries’ gas demand by 15% [1], and two months since they agreed on a similar target for electricity demand (10% total reduction, with 5% during peak hours [2]). And it’s now the time to ensure the delivery of these targets.

As the pressure on European citizens and industries from high energy prices persists, the delivery of those targets becomes more than ever a matter of political leadership. Gas supplies from Russia are likely to fall next year while competition for liquified natural gas (LNG) supplies increases. Filling in gas storage ahead of next year’s winter might prove far more challenging [3]. We need a long-term solution.

The only option left is to act on the energy demand side. Reducing energy consumption would come with three substantial benefits. First, a permanent improvement to energy security. Second, lower carbon emissions. And finally, a shift in the state budgets, from short-term relief funds to capital investment on assets like better building stock and modern industrial processes.

Now is the time for leaders to use all the tools at their disposal to enable a substantial and sustained reduction of energy consumption. This includes setting up an industrial strategy and designing ambitious regulations. But it also requires galvanising efforts around skills and technical support in sectors where it is most chronically needed, like buildings retrofit and electrification. Next year is the European Year of Skills and offers a great opportunity to do so [4].

For the buildings sector, there are ample examples of good practices of investment in skills and advisory services like one stop shops [5]. Member States, industry and social partners can share and scale them to reduce energy consumption in buildings across the EU. But the industry needs more than incentives for innovation and public investments. Above all it needs a clear signal about the direction of travel. It is up for political leaders to do this through ambitious regulations, like minimum energy performance standards [6], while encouraging the sector to embrace modernisation and digitalisation.

This is the time for European leaders, social partners, and private sector stakeholders to think strategically about the practical delivery of energy saving targets as they pave the way towards green and digital transitions. 

Vilislava Ivanova
Senior Researcher
E3G

Sources:
1. European Council (2022). Member states commit to reducing gas demand by 15% next winter
2. European Council (2022). Council agrees on emergency measures to reduce energy prices
3. IEA (2022). Europe needs to take immediate action to avoid risk of natural gas shortage next year 4. EC (2022). Commission kick-starts work on the European Year of Skills
5. Renovate Europe (2022). Speeding up the delivery of renovation – skills
6. E3G (2022). High Minimum Energy Performance Standards for buildings

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EU-ASE at event: The transition plans – beyond sustainable finance?

On Wednesday 30 November 2022, EU-ASE President Monica Frassoni spoke at an event by ERCST titled: The transition plans – beyond sustainable finance?

 The idea of presenting a transition plan – i.e., ensuring that the business model and strategy of the undertaking are compatible with the transition to a sustainable economy and with the limiting of global warming to 1.5 °C, in line with the Paris Agreement – will soon turn into a concrete legal obligation. It is mandated by the Corporate Sustainability Reporting Directive and contemplated in other pieces of European sustainable finance legislation: the Corporate Sustainability Due Diligence Directive and the EU Green Bonds Standard. But this kind of requirement expands beyond the sustainable finance realm. For example, the European Parliament wants to reduce the amount of ETS free allocations for companies not having a decarbonisation plan or failing to meet their milestones.

However, it remains unclear how to turn those very forward-looking and complex commitments into real change by individual companies throughout the various business models.

The event aims at identifying the objective, scope, and challenges in addressing the requirement of presenting transition plans in and beyond the EU corporate sustainability framework.

Hosted by the European Roundable on Climate Change and Sustainable Development (ERCST), this hybrid event took plance online and in person.

View the full agenda here.
View the full ERCST presentation here.

Find more information about the event here.

 

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EU-ASE at Powering our buildings: how policies can support energy efficiency through building electrification

On Thursday 24 November 2022, EU-ASE participated in “Powering our buildings: how policies can support energy efficiency through building electrification”.

EU-ASE President Monica Frassoni spoke at the launch of a new study by FIRE Federazione Italiana per l’uso Razionale dell’Energia and the Institute for European Energy and Climate Policy Foundation (IEECP), discussing the challenges we face to electrify, decarbonise and strengthen the EU energy system.

View the full agenda here.

Find more information about the study here.

 

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Member States’ vision for renovating the EU building stock not aligned with the urgency to address the energy and climate crisis

Brussels, 25 October 2022 – Today, the Council of the European Union adopted its general approach (GA) on the recast of the Energy Performance of Buildings Directive (EPBD) as part of the ‘Fit for 55’ legislative package to put the Union on track with the 2030 and 2050 climate neutrality targets.

Leading businesses commenting on the general approach adopted by the Council underline that achieving an energy efficient and sustainable building stock is critical for the EU to tackle today’s energy and climate crisis, worsened by the Russian invasion of Ukraine. The building sector is the first EU energy consumer, thus the revision of the EPBD is a key opportunity to accelerate the very low annual building renovation rates, as only 1% of EU buildings undergo energy renovations each year.

Despite the huge role building renovations have in the EU energy transition, the European Alliance to Save Energy underlines that the Council’s vision on the revision of the EPBD is not consistent with the 2030 target for the Union to reduce at least 55% of GHG emissions, nor effective in achieving the REPowerEU goal to tackle today’s dependency on imported fossil fuels. According to the Renovation Wave strategy, the EU must at least double the current annual building renovation rates and foster deep energy retrofits, aiming at renovating 35 million building units by 2030. This target cannot be achieved with the Council’s envisioned system for Minimum Energy Performance Standards (MEPS).

EU-ASE believes that decoupling MEPS from energy classes is not a reliable mechanism to ensure that buildings become more performing overtime, while EPCs and energy classes are already mandatory in all Member States. On the contrary, EPCs should be harmonised and reinforced. In addition, EU-ASE regrets that the Council position does not support an EU-MEPS system, preferring national renovation trajectories which should aim to deliver the ‘Zero Emission Building (ZEB) objective, but without clear compliance mechanisms after 2034 for private non-residential buildings and after 2033 for residential buildings. 

Finally, it is matter of concern that Member States may choose not to apply MEPS in single family houses in favour of an approach based on renovation trigger points based on a sell or a rental contract, which would unacceptably keep millions of EU citizens living in inefficient buildings, thus worsening energy poverty.  

Monica Frassoni, President of the Alliance, said: While recognising the efforts made by the Presidency of the Council to maintain the Zero Emission Buildings’ vision by 2050, it is evident that without a clear strategy to trigger scalable energy renovations in buildings, thousands of Europeans will keep on living in energy poverty conditions. An EPBD that is ‘fit for 55%’ means ambitious minimum energy performance standards that cover the renovation of all EU buildings so that they become Zero Emissions by 2050 at the latest.”

While the Council adopted its General Approach, the European Parliament is still negotiating compromise amendments on the Commission’s proposal which should be voted in the ITRE committee on November 29. Inter-institutional negotiations should therefore start during the first quarter of 2023.

Finally, EU-ASE welcomes the declaration proposal formulated by France and supported by Germany, Luxembourg, Belgium, the Netherlands and Ireland to push for greater ambition regarding minimum energy performance standards during inter-institutional negotiations with the Parliament.

You can find here the position of EU-ASE on the revision of the Energy Performance of Buildings Directive.

Read the PDF version of our press release here.

 

Media contact:
Antoan Montignier
+32 499 84 97 28
antoan.montignier@euase.eu

About us
The European Alliance to Save Energy (EU-ASE) is a cross-sectoral, business-led organisation that ensures that the voice of energy efficiency is heard across Europe. EU-ASE members have operations across the 27 Member States of the European Union, employ over 340.000 people in Europe and have an aggregated annual turnover of €115 billion.

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