Businesses, society and Public Administration agree on the opportunities derived from an ambitious energy transition

The joint debate organised by the Grupo Español para el Crecimiento Verde (GECV) and the European Alliance to Save Energy (EU-ASE) ratifies the business, NGOs, academia and Public Administration’s support to an ambitious and stable climate and energy legislative framework

The debate, moderated by Mónica López, Head of the Meteorological Service of Spanish public TV TVE, started with a welcome address by Antoni Ballabriga, Global Director of Responsible Business at BBVA, and was later on introduced by EU-ASE President Monica Frassoni and José López-Tafall, GECV Secretary General. López-Tafall stated that “it is possible to decarbonise and grow at the same time, it is economically viable”, while Frassoni underlined that we should bet on decarbonising the economy and reminded the audience of the urgency of a clear, ambitious and just roadmap.

José Manuel González-Páramo, Head of Global Economics, Regulation and Public Affairs at BBVA, who also took part in the debate, reminded the attendants that, according to the European Commission, we still lack €180,000 in additional annual investment if we want to reach the energy and climate objectives set for 2030. He also highlighted BBVA’s commitment with climate change and the key role businesses play.

Hugo Morán, Spanish Secretary for Environment, highlighted the great work EU-ASE and GECV are doing by organising this type of initiatives and pointed out that “mitigation is not synonym to deindustrialistion and adaptation doesn’t mean resignation”. He also underlined the importance of the future Climate and Energy legislation, that will guarantee that Spain complies with the goals set by the European Union and the Paris Agreement. Morán argued that “the setting of a stable regulatory framework, with adequate incentives and that fosters the necessary investments taking into account the market reality, is key to achieve a successful transition“.

Director General for Energy at the European Commission, Dominique Ristori, started his intervention stating that the new regulatory framework for energy and climate proposed by the Spanish Government is an opportunity for all, both businesses and investors. Ristori said that it is necessary to show clear leadership at the national level to address the energy transition, that has become a priority. Such leadership, he told the audience, should be based on three pillars – a clear and predictable regulatory framework, business opportunity, and access to sustainable financing. He also underlined that organising this type of initiatives is both important and timely, as they seek to create positive synergies between national and European authorities and what he defined as new business.

The session concluded with a round-table debate between representatives from different business sectors, NGOs and Public Administration, with speakers from EU-ASE members Danfoss and Knauf Insulation, as well as from Iberdrola, WWF Spain, the Institute for the Diversification and Saving of Energy (IDAE), and the Spanish Office for Cliamte Change (OECC). Ernesto Ubieto, President of Southern Europe Region at Danfoss, underlined the important role governments have to play for placing energy efficiency at the centre of the implementation and transposition of the European clean energy legislation and, especially, with regards to the EED and EPBD. Óscar del Río, General Manager at Knauf Insulation Iberia, stated that “without the Public Administration we cannot advance in tackling the challenges we face. “Businesses are ready to play their part; public administration needs to lean on us more”, he said. Joan Herrera, Director of IDAE, claimed that “we cannot allow ourselves [Spain] to be rich in resources and poor in political drive and ambition. We need regulation”, while Valvanera Ulargui, Director of the OECC, stated that “once we are all aware of climate change and the energy transition, the moment has come to take action and generate actual facts and data”. Ulargui pointed out that this is the message they would take to the upcoming COP24, “with a message of ambition and, especially, urgency”, she said.

Both the Grupo Español para el Crecimiento Verde and the European Alliance to Save Energy (EU-ASE) consider the debate, celebrated in the prelude of the presentation of the Climate Change Law draft, was crucial to convey the message to the Spanish Government that a big part of the Spanish business sector clearly supports the energy transition and the implementation of a national and European regulatory framework that is strong and leverages the necessary investments for achieving the change of economic model and of paradigm.


 

More information:

lauraj.bole@euase.eu

+34 693616088

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Swift implementation of EED, crucial for decarbonising the energy intensive industries

The European Alliance to Save Energy’s President, Monica Frassoni, participated yesterday at the 6th Annual High-Level Conference of the European Innovation Partnership (EIP) on Raw Materials, part of the Raw Materials Week organised by the European Commission. She took part in the session “Raw materials for clean energy intensive industries of the future”, Chaired by Mr Peter Handley, Head of Unit for Resource Efficiency and Raw Materials at DG GROW, and accompanied by Marco Mensink (CEFIC), Thomas Bünger (Aurubis AG), and Giles Dickinson (Wind Europe).

The session aimed at addressing the challenges faced by European core energy intensive industries – such as manufacture of chemicals, iron and steel – in the road towards a low-carbon and circular economy by 2050, relevant in view of the EU’s 2050 low emission strategy required by 2020 under the Paris Agreement.

During her intervention, Ms Frassoni underlined that the EU needs to take prompt action towards decarbonisation, especially after the IPCC published its latest report last month. She reminded the audience that, in terms of costs and action needed, the difference between 1.5ºC and 2ºC is vague and gives space for action, but also that we are behind schedule. For EU-ASE, she remarked, it is crucial that actions are taken “to avoid the climate catastrophe”, and she underlined two core lines of action: synergies between EE and RES, and phasing out of fossil fuels.

Ms Frassoni also addressed the crucial importance of making energy efficiency central to any current and future planning in the intensive industry sector. She underlined that energy efficiency is key in the electrification of the sector as, as she pointed out, “without being efficient and reducing its energy output, the industry will not be able to make it”. “Two thirds of the economic potential of EE remain untapped. The industry is the one that performs best, but energy intensive industries are also important for transport, energy generation and buildings”, she added.

The targets we have now are not particularly ambitious,

but together, recently adopted EED, EPBD and GovReg can deliver results“.

 

Monica Frassoni, EU-ASE President

She remarked that there are many solutions, the most important a good implementation of the Energy Efficiency Directive and the Governance of the Energy Union Regulation, approved by the European Parliament last 13 November. “The targets we have now are not particularly ambitious, but together, recently adopted EED, EPBD and GovReg can deliver results”, she added, “the actual, practical implementation of the legislative framework will be able to unlock industrial and production processes”.

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Final approval on the revised Energy Efficiency Directive and Governance Regulation important step towards decarbonisation of European economy

With today’s vote the European Union made an important step to secure a more affordable and climate-friendly energy system to European citizens. This new governance system introduces the Energy Efficiency First principle for the first time in the EU regulatory framework.

According to the Governance Regulation, Member States must follow a binding European template to prepare National Energy and Climate Plans by 31 December 2019, and subsequently by 1 January 2029, and every ten years thereafter.

Member states must also prepare long-term decarbonization strategies setting their policy vision until 2050.

“Despite the complexity of the discussion at Member State level, the European Parliament approved two crucial files demonstrating that there is growing understanding of the full social, economic and environmental potential of energy efficiency” said Monica Frassoni, President of the European Alliance to Save Energy, commenting on the vote – “Now, a swift, prompt, and adequate implementation at national level is needed to realize the full energy efficiency potential. Current discussions on the EU long-term decarbonization Strategy and Multiannual Financial Framework are concrete opportunities to do more, do it urgently and more decisively towards reaching the Paris agreement objective.”

“The European Parliament approved two crucial files demonstrating that there is growing understanding of the full social, economic and environmental potential of energy efficiency. Now, a swift, prompt, and adequate implementation at national level is needed to realize the full energy efficiency potential.”

 

Monica Frassoni, President of the European Alliance to Save Energy

Next steps

Once the Council of EU Ministers has also given its green light, the laws will be published in the EU’s Official Journal. After the publication, the Regulation on Governance will be directly applied in all EU Member States, while for the new efficiency directive, Member States will have 18 months to transpose it into their national legal systems.

Contacts and Media Enquiries

Luigi Petito (+32 2 588 5671 / info@euase.eu) / Laura J. Bolé (+32 492 08 69 54 / lauraj.bole@euase.eu)

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Business letter on the Drinking Water Directive (Recast)

To the kind attention of Elisabeth Köstinger

Federal Minister for Sustainability and Tourism of Austria

Cc: 28 Ministries for the Environment and for Energy of the EU

Dear Minister Köstinger,

RE: “Quality of water intended for human consumption. Recast”

I am writing to you on behalf of the European Alliance to Save Energy (EU-ASE) and a broader coalition of businesses operating in the water sector. EU-ASE is a multi-sectoral business organisation whose members operate across the 28 Member States of the European Union, with an aggregated annual turnover of €115 bn, directly employing 340.000 people in Europe.

We welcome the collaborative and fast-paced work of the European Parliament on the recast of the Drinking Water Directive. The recast is a historic first step to fix a missing dimension of the water regulatory framework, which is the energy-water nexus. There is a huge energy savings potential in the water sector that must be untapped to contribute towards securing the objectives of the Paris Agreement.

Water leakage reduction

On the outcomes of the European Parliament report, we were encouraged to see that there is a clear direction to reduce water leakage and save the energy required to pump and distribute billions of cubic meters of water that are lost through leaking pipes every day. The Commission estimates that in average 23% of treated water in the EU is lost in public water supplies; in some municipalities the leakage rates can rise up to 60%[1]. This can be fixed and leakage can be reduced by at least 30-40% replacing pipes and/or using energy efficiency technologies to monitor water distribution.

In this perspective we welcome and support:

  • The inclusion of a requirement to assess leakage levels and the adoption of 2030 national leakage reduction targets for water suppliers by 2022 at the latest
  • The inclusion of transparency requirement on leakage levels for large and very large water suppliers
  • The obligation of water suppliers to reference the risks stemming from leaky pipes in water safety plans

 

Energy performance transparency requirements

On the other hand, the European Parliament report fell short to keep the transparency requirements on the energy performance of water suppliers, originally included in the European Commission proposal. It was a missed opportunity for the drinking water sector to transition towards a more energy efficient and carbon-neutral operation and to attract investments.

The energy consumption of the EU water sector represents the equivalent of 3.5% of the EU electricity consumption[2]. In municipalities, water and waste water facilities account for the largest consumption of electricity, representing 30-40% of local authorities’ total electricity bill[3]. It is realistic to cut the energy use of the water and waste water sector by 50%, yet investments are below their cost-optimal levels to achieve this level of reduction.

From this perspective, we call for the information on the energy performance of water suppliers to be available online for the local governments and decision makers and on request for ESCOs or market players willing to invest in energy savings programs. This will:

  • provide useful information on the energy used from raw water extraction to tap delivery, i.e. across the whole water supply chain
  • enhance transparency on the energy use of the drinking water sector
  • build baseline of energy use that will enable the detection of opportunities of investments towards innovation and more energy efficient model.

Dear Minister, as technology and solutions providers in energy efficiency and water, we urge the Austrian Presidency and all the 28 Member States of the EU to:

  • Match the European Parliament’s ambition on water leakage
  • Support the European Commission’s proposal on energy performance transparency requirements
  • Accelerate the adoption of a general approach on this strategic file in view of reaching a deal under the current political cycle

This is an urgent matter and we should act without delay – reducing energy waste in the water sector makes economic and environmental sense as it delivers tangible, multiple and collective benefits to European citizens, households and local authorities.

More information on how to unleash the energy efficiency potential in the EU water sector are included in a position paper downloadable here

We remain at your disposition for further discussion on this strategic topic.

 

Yours sincerely,

Monica Frassoni

President of the European Alliance to Save Energy (EU-ASE)


[1] IMPACT ASSESSMENT Accompanying the document Proposal for a Directive of the European Parliament and of the Council on the quality of water intended for human consumption (recast)

[2] IEA (2016), WEO-2016 Special Report : Water-Energy Nexus

[3] Ibid

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Op-ed: Europe on a path to carbon neutrality in 2050: a push in direction of “sobriété énergétique”?

Kamila Waciega, Director, Energy, at Veolia Public Affairs Department

Kamila graduated from Sciences Po Paris and London School of Economics. She holds a PhD in Political Sciences, applied to decarbonisation policies in European regions. She’s been in charge of access to public funds and energy and climate policy for Dalkia Central Europe Department between 2010 and 2014.

In 2014, Kamila integrated Veolia’s Public Affairs Department and since January 2018, she has been acting as a Director in charge of the group’s position on energy and climate issues.

Energy efficiency and “sobriété énergetique” have to go hand in hand for a decarbonized Europe. Only combined they will help us significantly reduce our primary and final energy consumption, as well as the use of other resources – and hence diminish our impact on the environment.

The French are known and renowned in the entire world for producing great stuff: wine, cheese, art and sometimes, extraordinary concepts. In the realm of energy, it is precisely in France where the term “sobriété énergetique” has been coined and even inscribed in the national law – the law of energy transition for green growth from August 2015[1].

That’s a tough one to translate to other language as a literal translation might suggest something related to abstinence (relevant to wine, impossible when it comes to power and heat), while the concept itself hints more at our ability to apply the principles of moderation and frugality to the use of energy in everyday life.

Why should we be assessing the opportunity to generalise this French concept to the rest of Europe? Mainly because we are at a very peculiar moment when it comes to the EU policy making: the European Commission is currently working on its 2050 low carbon strategy, which is intended to help integrate the COP21 (Paris agreement) commitments into its general regulatory framework. To do so, the Commission is widely consulting stakeholders to get their input and better conceptualise potential paths. And while the attention of stakeholders is mostly turned towards the most significant technology and process-related changes that need to be introduced and follow through to deliver on net zero carbon emissions at a 2050 horizon, relatively little is being said on what importance the “sobriété énergétique” would have to take us towards this carbon neutral and bright future. This propensity to focus on the former is reflected in the current EU framework, in particular the revised Energy Efficiency Directive and Energy Performance of Buildings Directive, where the “usage” bit is painfully missing. This is all the more jarring as the EED itself failed to setup targets ambitious enough, and expressed both in primary and final energy consumption, to drive necessary changes in the EU energy demand and consumption.

So what really is “sobriété énergétique”? First of all, it is not the same as energy efficiency, which can be defined as a measure or process that consists of reducing energy consumption by a piece of equipment with better efficiency and fewer losses in energy production or consumption. Hence, it is essentially about the performance and the proper use of various types of equipment and infrastructure with which we consume energy. “Sobriété énergetique”, or energy frugality for lack of a better term, aims at reducing our energy consumption not only by privileging more efficient equipment, but also by deliberately choosing to modify our usages of it, in order to reduce our overall energy consumption. “Sobriété” comes from a Greek word “Sophrosyne”[2] and refers to a conscious strategy to achieve moderation regarding our energy consumption, and to rediscover healthy limits (as opposed to overconsumption). To give an example it is about choosing well and sufficiently dimensioned equipment for our needs (fridge, flat we live in, car we drive or carpool); to supervise the way we use the equipment (level and duration of the use, for instance by avoiding standby mode), to cooperate and share through collective organisation (of transport means, housing, equipment and preference for short circuits of production and distribution, etc). Because it is centrally focused on consumers’ behaviour, it affects individual behavioural, wider consumption patterns and collective choices (including construction or expansion of heavy infrastructures). It is also about decoupling the notion of energy use from the service this usage provides and then making an educated choice of the most essential services – over less important, futile and sometimes even harmful usages.

As an example of how this principle applies and operates in real life in the building sector is for instance is when new districts are built and efficient and district heating networks are being chosen to deliver heat and sanitary water (and sometimes electricity if cogeneration units are installed). This is not only a technical and efficiency related choice – by opting for district energy, inhabitants of those “eco-quartiers” are also giving up on their freedom of choice and autonomy individual heating solutions provide them with, but with the view of greater collective benefits, including the possibility of massively integrate renewable and waste energy sources that are to be found locally, and reduced CO2 and fine particles emissions. The same applies when energy performance contracting and thermal renovation of buildings are being deployed, as part of deep staged renovation strategies. Both EPC and renovation works will surpass expected results in terms of energy savings and hence more rapidly yield the rate of return on investments, if buildings users are made aware of how their behavior can affect optimised and renovated installations. Overall, approaching energy transition from the territorial and district perspective is also a conscious choice and a change in our thinking and behaviour about energy production and that is likely to generate considerable positive externalities.

Sobriété” is a significant piece of the decarbonization puzzle, because at its stands, the level of both carbon pricing, ambition of the EED revision, and achievement of the energy transition to local loops, is far from being sufficient to help reduce CO2 emissions enough to reach zero net carbon emissions by 2050. Responsible energy consumption is necessary to reduce overall primary and final energy use according to the scenario elaborated by the French think thank négaWatt[3], showing that “sobriété énergetique” represents half of the potential to reach 50% reduction of energy consumption in France. and behaviour about energy production and that is likely to generate considerable positive externalities.

Source: NET ZERO BY 2050: ZERO EMISSIONS PATHWAYS TO THE EUROPE WE WANT

Sobriété” is a significant piece of the decarbonisation puzzle, because at its stands, the level of both carbon pricing, ambition of the EED revision, and achievement of the energy transition to local loops, is far from being sufficient to help reduce CO2 emissions enough to reach zero net carbon emissions by 2050. Responsible energy consumption is necessary to reduce overall primary and final energy use according to the scenario elaborated by the French think thank négaWatt[4], showing that “sobriété énergetique” represents half of the potential to reach 50% reduction of energy consumption in France.

“Sobriété énergetique” is not a revolution – it is a natural evolution of the concept of energy efficiency that might require changes in our individual behaviours and serious questioning of some of our habits. Its implementation might result in fostering better social interactions, based on solidarity and recognition of the value provided by sharing of goods and services. It might help change our social modal, fully inscribed it in the logic of circular economy and local energy planification.

Hence, in addition to reinforcing traditional drivers of transition towards low carbon economy, such as development of renewable energies, investment in energy efficiency across all economic sectors, and the use of carbon pricing based on polluter pays foundations, Europe should put greater focus on the principle of “sobriété énergetique”. How to get there is of course a big question mark. Because it touches upon almost all of the areas of our existence, the EU low-carbon strategy is precisely a great opportunity to incorporate this notion into the EU framework, along with the notions of energy efficiency first, and circular economy, directed towards increasing our awareness and providing us with tools to change our relationship with energy use, services its provides and to natural resources in general.

 


[1] In “La loi de transition énergétique pour une croissance verte (LTECV)”, the first title updates the country’s energy policy, where the notions of energy efficiency, energy security, maintaining of competitive energy prices, fight against fuel poverty, and “sobriété énergétique” are enumerated as its new principles.

[2] An ancient Greek concept of an ideal of excellence of character and soundness of mind, which when combined in one well-balanced individual leads to other qualities, such as temperance, moderation, prudence, purity, decorum and self-control.

[3] See http://www.ddline.fr/wp-content/uploads/2016/05/1601_Fil-dargent_Qu-est-ce-que-la-sobriete.pdf

[4] See http://www.ddline.fr/wp-content/uploads/2016/05/1601_Fil-dargent_Qu-est-ce-que-la-sobriete.pdf

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