IEA’s Energy Efficiency 2023 Report Seminar (EU-ASE & IEA event)

On Thursday, 14 December 2023, the European Alliance to Save Energy (EU-ASE) alongside the International Energy Agency (IEA) hosted an event presenting the IEA’s Energy Efficiency 2023 report. 

Energy Efficiency 2023 serves as the IEA’s primary annual analysis on global developments in energy efficiency markets and policy. The report explores recent trends in energy intensity, demand, and efficiency-related investment, encompassing policy and technology aspects.

This is the tenth edition, and it includes new highlights, mostly focusing on key issues facing policymakers. Notably, the report outlines the proposed global target to double energy efficiency progress and articulates the potential gains from achieving this target.

Amidst the ongoing energy and climate crises, 2023’s global energy efficiency progress, as measured by primary energy intensity, is expected to be slightly below the long-term trend, signaling a slowdown from 2022. Despite this, the report highlights a deep transformation in energy efficiency and clean energy. Governments globally are introducing or reinforcing policies and energy-saving programs, leading to the faster deployment of efficient technologies. These efforts contribute to the expected peaking of fossil fuel demand in the coming years.

Read the full report here. 

Watch the full seminar right here or on the EU-ASE YouTube channel.

 

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System efficiency in 2024: Three priorities for the next EU Commission

System efficiency is a key metric to evaluate how far the European Green Deal has taken us in the energy transition.  

Why system efficiency and what is it?  System efficiency is the measure of how well a system utilizes resources to achieve its desired output with minimal waste. In this context, it refers to the systematic application of the Energy Efficiency First (EE1) principle. This means that examining system efficiency provides a way to assess the broad socio-economic advantages linked to measures improving energy efficiency. 

To maximize efficiency, we need to accelerate the decarbonisation of buildings, ensure that future energy networks are designed to electrify most of the economy, while strategically focusing on using hydrogen in hard-to-electrify applications as gas networks are decommissioned due to declining fossil gas demand. 

The recent agreement on the Energy Performance of Buildings Directive (EPBD) only requires minimal obligations for Member States, leaves flexibility for fossil fuel technologies, and avoids banning certain heating technologies in buildings. 

Despite positive steps such as establishing the European Network of Network Operators of Hydrogen (ENNOH) to counter fossil gas industry influence, challenges remain in the gas package directive, which applies hydrogen unbundling rules only to Transmission System Operators (TSOs), leaving Distribution System Operators (DSOs) exempt and potentially leading to costly hydrogen investments at the local level. 

Considering the above, the next EU Commission can improve overall energy system efficiency by following three priorities: 

  1. Making energy efficiency an energy security priority through a new task force that focuses on leveraging energy efficiency progress and demand flexibility as an active lever towards European energy security. 
  2. Making local delivery institutions fit for delivering energy efficiency, providing increased support for municipalities and regional governments and setting targets for system transformation. 
  3. Enhancing system efficiency in gas networks by establishing a framework for decommissioning obsolete fossil infrastructure and strategically designing hydrogen networks for areas where no other decarbonisation option exists. 

Raphael Hanoteaux
Senior Policy Advisor
E3G

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EU-ASE welcomes agreement on EPBD despite its weakened ambition

Today, two years after its initial announcement, co-legislators have reached an agreement on the revision of the Energy Performance of Buildings Directive (EPBD), a key piece of the Fit For 55 Package.  The political agreement on the EPBD is weaker than what is necessary to fully deliver Europe’s energy security and sustainable economic growth in the building sector. If approved and fully implemented via strong governance and a financial support framework it will still represent an important step for EU just transition.

e welcome the developments marking a pivotal step towards upgrading the efficiency of the buildings sector such as the further integration of digitalization within the EPBD. Embracing existing digital tools is essential for assessing and unlocking the full potential of actual energy performance in buildings. The reinforced provisions for technical building systems (TBS), including heating, built-in lighting, and building automation and control systems, are crucial in raising the energy efficiency level of our buildings.

Regrettably, the agreement on the EPBD misses out on setting an ambitious framework, as proposed by the European Commission and further improved by the European Parliament. The original proposal for Minimum Energy Performance Standards (MEPS), one of the main pillar of the EPBD, offered a powerful path to achieve higher energy classes for worst-performing buildings while harmonizing Energy Performance Certificates (EPC) among Member States. MEPS, as it stands in the political agreement reached today, leaves too much flexibility for Member States to achieve respectively 16% and 20-22% primary energy reduction targets of the overall energy consumption of the building stock by 2030 and 2035. This is a first step towards gradually scaling up the efforts for the entire building stock. A careful monitoring and guidance of the implementation of this centrepiece of the EBPD will be required to deliver the desired objectives. 

Another missed opportunity for the Union`s decarbonization efforts is delaying the phase out of fossil fuels in heating and cooling in buildings. The European Parliament`s step forward to end the use of fossil fuels in heating and cooling in buildings by 2035 was watered down and pushed back to 2040. Without a timely phase-out of fossil fuel boilers in buildings, the EU cannot achieve its 2050 goals. Member States and the EU are currently negotiating intensely to ensure that at COP28 there is a precise commitment to phase out fossil fuels. They need to be consistent with this commitment in EU legislation.

Despite the complexity to converge towards a more ambitious agreement, if correctly and swiftly implemented, the EPBD is capable of improving living conditions, reducing buildings` energy needs, saving billions of euros in energy costs enhancing the EU’s energy security, and boosting sustainable economic growth in the EU.

Monica Frassoni, President of the European Alliance to Save Energy, commenting on the political agreement, said: Even if the directive includes several positive provisions to improve the energy performance of the highly inefficient European building stock and the ultimate goal remains the full decarbonisation of EU buildings by 2050, we regret that minimum energy performance standards have been seriously weakened. The large flexibility and derogations conceded to governments could have been coupled with higher ambition, especially for residential buildings. If the building sector is not fully decarbonized in accordance with a clear plan and sufficient resources by 2050 it would be deleterious for citizens – especially those struggling with energy poverty – and for businesses for which the modernization of the building stock is a unique opportunity for new sustainable economic activities and job creation”.

The political agreement will need to be formalized in the next months. We count on co-legislators’ responsibility for this important final step. After, we must roll up our sleeves, walk the talk and turn our attention to deliver the full EPBD potential through robust institutional governance and private public-partnerships aimed to boost skills development, technological advances and work out innovative financing schemes. The EPBD can instigate renovations across Europe, all stakeholders will have to work together to push up the bar and increase the depth and rate of these renovations, make them cost-effective and valuable for citizens, businesses and the environment” said Quentin Galland, Chair of the European Alliance to Save Energy (EU-ASE).

 

Read the full press release here.

 

Media contact:
Luigi Petito 
Head of Secretariat 
info@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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EU-ASE President Monica Frassoni’s message ahead of the upcoming negotiations at #COP28

EU-ASE President Monica Frassoni speaks ahead of the upcoming negotiations at COP 28, beginning today, 30 November, running until 12 December 2023  in United Arab Emirates.

COP28 UAE will be a milestone moment when the world will take stock of its progress on the Paris Agreement. The first Global Stocktake (GST) will provide a comprehensive assessment of progress since adopting the Paris Agreement. This will help align the efforts on climate action, including measures that need to be put in place to bridge the gaps in progress.

EU-ASE President Monica Frassoni speaks ahead of these upcoming negotiations, emphasizing highlights the need to double  energy efficiency and phase out fossil fuels:

“The EU has been in the forefront of the climate race and now we see that a mixture of political fatigue and a regaining of space of eco-skeptical narrative risks hampering the major business and social opportunity that an effective and just transition can bring.”

EU-ASE and its members will continue to give a positive contribution to the completion and full implementation of the Green Deal and notably of the Energy Efficiency Directive and the Energy Performance of Buildings Directive.

COP28, opening today in Dubai, is the right place to take actions towards a sustainable future!

Watch the full video here

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Repetition Is Key: The Latin Maxim “Repetita Iuvant” Holds True.

Since the European Commission unveiled the Clean Energy for All Europeans package on 30 November 2016, including the Energy Performance of Buildings Directive (EPBD) revision, the alliance has consistently played a central role in shaping its contents. Through collective efforts we have actively contributed position papers, organized events, and proposed amendments — all available on our website.

Why do we need an ambitious final revision of the EPBD? Below are my three compelling reasons:

Energy and Emissions Impact: Buildings account for approximately 40% of energy consumption and 36% of CO2 emissions in the EU. They stand as the largest energy consumers in Europe. To maintain our competitive edge while the clean energy transition reshapes global energy markets, we must act on buildings.

Greenhouse Gas Reduction: The EPBD represents the primary EU policy avenue for tackling both operational and embedded greenhouse gas emissions in the building sector. This approach will effectively decarbonize the EU building stock, boost the EU building sector’s competitiveness, create new employment opportunities, and support the research, development, and innovation of relevant technologies.

Sustainability Strategies: The final EPBD revision should incorporate sustainable strategies such as circularity, sufficiency, and the utilization of low-carbon and natural-based materials. These strategies are essential for reducing Whole Life Carbon emissions and ensuring the decarbonization of buildings. Phasing out fossil fuels from new heating and cooling systems across the EU must happen by 2030.

Stay tuned and join us to making a significant impact by reaching a deal on the Directive by the end of 2023. 

Sergio Andreis
Director
Kyoto Club

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