EU-ASE Recommendations on ENVI Committee vote on ‘Quality of water intended for human consumption. Recast’

To the kind attention of Members of ENVI Committee

RE: Recommendations on ENVI Committee vote on ‘Quality of water intended for human consumption. Recast’

I am writing to you on behalf of the European Alliance to Save Energy (EU-ASE). We are a multi-sectoral business organisation whose members have operations across the 28 Member States of the European Union, directly employ 340.000 people in Europe and have an aggregated annual turnover of €115 bn.

We welcome the collaborative and fast-paced work of the rapporteur and shadow rapporteurs on the recast of the Drinking Water Directive. The recast is a historic first step to fix the 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 secure that we meet the Paris Agreement. As technology and solutions providers in energy efficiency and water, we would like to highlight our support for the following provisions ahead of the forthcoming vote in the ENVI Committee.

Energy performance transparency requirements

The energy consumption of the EU water sector represents the equivalent of 3.5% of the EU electricity consumption[1]. In municipalities, water and waste water facilities account for the largest consumption of electricity, representing 30-40% of local authorities’ total electricity bill[2]. 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 untap this huge potential, a first step is to secure transparency on their energy performance.  However, the state of the energy performance of the drinking water sector is not taken into consideration in the compromise amendments. This represents a missed opportunity for the drinking water sector to transition towards a more energy efficient and carbon-neutral operation and to attract investments.

An effective way to raise awareness about the energy performance and leakage reduction of the water supplier would be to make the information on the energy performance of water suppliers available online for the local governments and decision makers. Specifying the scope of the information requirement from raw water extraction to tap delivery, i.e. across the whole water supply chain, would enhance transparency on the energy use of the drinking water sector, build baseline of energy use for the detection of opportunities and be a driver towards a more energy efficient model.

 

Water leakage reduction target based on a common metric

A significant amount of energy and investment could be saved by monitoring and reducing water leakage, not to talk about precious water resource in times of water scarcity. Indeed, in the EU, energy to pump and distribute billions of cubic meters of water, that are lost through leaking pipes, is used in vain every day. We therefore support the introduction of provisions for Member States to introduce water leakage reduction targets, as outlined in Compromise Amendment 4 on the General Obligations of the Directive.

The European Commission estimates that, in average in the EU 23% of all treated water in public water supplies is lost within the distribution network as a result of leakage. In some municipalities, this figure can increase to 60%[3]..

Mandated Member State targets to combat these water losses within the distribution system would provide the EU with improved economic returns for water operators, as well as a safer drinking water supply from an environmental perspective.

However, it is important that the establishment of Member State targets is based on a common metric – cubic metres of water/km of pipe per day. This would ensure that improvements in addressing the leakage are both measurable and comparable. Without such metric, there is a risk that Member States would create arbitrary targets that would have no meaningful impact on improving leakage rates.

Water leakage comprehensive assessment

We regret that in the compromise amendments Member State competent authorities may not be obliged to carry out a comprehensive assessment of the water leakage levels on their territory which includes all relevant public health, environmental, technical, economic factors.

Including all environmental, technical, health and economic factors in a comprehensive assessment will ensure that Member State competent authorities can maintain a holistic overview over all the factors that impact on the drinking water infrastructure.

We wish you a fruitful vote and remain at your disposition for further discuss the provisions above to your best convenience.

Yours sincerely,

Monica Frassoni

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

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

[2] Ibid

[3] 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)

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EU-ASE at the EU Commission’s stakeholder event ‘EU’s vision for a modern, clean and competitive economy’

“We still need to walk the walk in how energy efficiency interacts with other actors. The partnership between RES and energy efficiency is crucial and can provide 94% of the reductions in energy CO2 related emissions.”

Monica Frassoni, President of EU-ASE

She talked at large about the fact that policy makers and companies should understand that the decarbonisation of the EU economy cannot be achieved without energy efficiency investments. On this note, she gave some concrete examples of how the reductions that we would obtain by implementing such measures would be less costly.

Ms Frassoni also spoke about the “very big elephant in the room” no one had yet addressed, in reference to the public financing of fossil fuels. “I think that when the EIB changed its regulation to make it less prone towards fossil fuels it gave a very powerful signal that is very useful to all sectors”, she added, “but, at the same time there are still exceptions and loopholes”. She underlined that the energy efficiency community is worried about the direct competition role fossil fuels, especially gas, are currently playing in the sector, since energy efficiency investments are harder to “be seen” and “more complex to be put in practice”.

EU-ASE’s President concluded her presentation giving some recommendations on behalf of the energy efficiency community, underlying the importance of applying the Energy Efficiency First principle, pushing harder for more ambitious, binding targets, and stepping up the efforts for good implementation of existing policies to provide investors with a very much needed confidence.

Click here to watch Ms Frassoni’s full intervention (minute 02:15:00).

The event, held 10-11 July in Brussels, gathered several experts and policy makers from the energy, climate and environment framework

Monica Frassoni, President of the European Alliance to Save Energy, took part yesterday in the European Commission’s stakeholder event ‘EU’s vision for a modern, clean and competitive economy’, as a speaker in the panel ‘Cost-efficient ways for achieving a post-carbon European economy’. Apart from Ms Frassoni, the panel, whose titfeatured a high-level list of experts from the sector, representing the policy, business and NGO voices:  EU Commission Vice President Jyrki Katainen; Ignacio S. Galán, Chairman and CEO of Iberdrola; Dr. Johannes Teyssen, CEO of E.ON; Giles Dickson, CEO, WindEurope; David Turk, Acting Director, Sustainability, Technology and Outlooks of the International Energy Agency; and Wendel Trio, Director of CAN Europe.

During her intervention, Ms Frassoni stressed the very important moment the European Union is currently facing in terms of integration and that setting a long-term strategy with clear and concrete milestones should be at the top of the list of the Union’s priorities. She also addressed the necessary partnership between energy efficiency and the rest of actors in the energy transition, such as renewable energy sources or utilities. “We still need to walk the walk in understanding that energy efficiency is a crucial element in the way in which companies must work”, she pointed out, “the partnership between RES and energy efficiency can provide 94% of the reductions in energy CO2 related emissions”.

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EU-ASE Workshop on Smart Energy, ICT and Energy Efficiency

Last 4th of July, EU-ASE held in Brussels the fourth of a series of workshops on the interrelations between energy efficiency and other actors and forces of the clean energy transition.

The aim of this fourth and last workshop was to better understand the impact of digitisation on energy efficiency through the whole value chain and how digitisation is and will contribute to the European transition towards a low carbon economy. The findings of the workshop will help EU-ASE to define new potential areas of interest and assess new strategic partnerships in the years to come.

For more information and a detailed programme of the workshop click here. For further insights on how the workshop went, please refer to our Twitter page.

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Deals on Energy Efficiency Directive and Governance of the Energy Union Regulation fail to untap European Energy Efficiency cost-effective potential

20 June 2018, Brussels. Last night negotiators from the Bulgarian Presidency of the Council of the EU and the European Parliament reached a deal on the Energy Efficiency Directive (EED) and on the Governance of the Energy Union Regulation (Governance).

The regulatory framework set by the EED for post 2020 foresees a non-binding energy efficiency target of 32.5% for 2030, an upward review clause of the target in 2023 and a mandatory sub-target of 0.8% of annual sales to final consumers. The text agreed is an improvement of the proposal of the European Commission and goes well beyond the Council positions.  

“The EED deal falls short of potential. During the last months the role of progressive forces of the business community and civil society was paramount to outline the benefits of higher and binding targets to unlock the full economic, social and environmental potential of energy efficiency. We helped to go beyond some of the hesitations and doubts that still exists on energy efficiency however much more needs to be done. The EED lacks the strong political signal required by the business community to invest in the energy efficiency projects needed to decarbonize our economy” said Monica Frassoni, President of the European Alliance to Save Energy.

“Unfortunately, the deal reached on the Governance of the Energy Union Regulation” continued Monica Frassoni “reflects the lack of ambition in the EED”.

“A cost-effective 40% energy efficiency target would have been more adequate to align with the European commitments to the Paris Agreement. Energy efficiency is a key driver of the Europe energy transition. Europe and Member States will have to step up their efforts in the implementation phase and acknowledge the central role of energy efficiency if they have to transform Europe’s energy system and realize the emission reductions necessary to fulfill the Paris Agreement objective” concluded Harry Verhaar, Chairman of the European Alliance to Save Energy and Head of Global Public & Government Affairs at Signify.

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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Op-ed: Energy Efficiency – let’s do it!

David Berman, Head of Public Affairs at Veolia

David Berman is the Head of Group Public Affairs at Veolia.

French-German lawyer by training, he has been following the development of European environmental and energy regulatory frameworks for the last 10 years.

The need for putting our efforts into increased energy efficiency is more urgent than ever: the European Union is struggling to reach its own climate and energy objectives; it has to adjust its short term and long-term policy to be compatible with the Paris agreement; it aims at strengthening its energy security.

At the eve of the final negotiations on the ‘Clean Energy package for all’, Member States have the responsibility to make sure the EU gets on a path towards decarbonisation.

This opportunity should not be missed. We see have a unique take on the importance of energy efficiency not only for our activities[1] but for its wider societal, economic and environmental benefits. Energy efficiency is a resource to be harvested across the entire energy chain from generation through transmission and distribution to consumption.

For these reasons, together with a group of 75 leading businesses and associations, Veolia has recently signed a call for a cost-effective energy efficiency target of 40% by 2030 with an extension of 1.5% cumulative annual energy savings obligations beyond 2020 (with a 2050 perspective) to be inscribed in the final text of the Energy Efficiency Directive. Member States have in their best interest to accept the Parliament’s option of a 34% and ideally binding energy efficiency target for 2030. These objectives would radically strengthen investor confidence and channel private investments towards large-scale renovation and conservation projects. They would also provide a guarantee to EU citizens that right policies will be eventually put in place to help EU dwindle down its CO2 emissions.

Targets are quintessential, but in case of energy efficiency they are optimal only if expressed both in primary and final energy. So far, any sort of public debate on energy efficiency has systematically been focused on savings made by the end-users, whether in buildings or in consumer products like TV sets. While it is essential to reduce final energy consumption, in order to achieve the actual energy efficiency, we should imperatively be looking at ways to limit losses that occur before energy (heat and/electricity) is delivered to customers. This is about optimizing the way we generate, extract, convert, distribute and transmit energy, in order to reduce to maximum energy losses. To give an example, the amount of energy lost in the production and distribution of electricity reaches an average of 60%. The EU project Heat Roadmap Europe estimates that there is more heat wasted during electricity generation than is required to heat all buildings on our continent. In order to help improve energy efficiency across the entire energy chain, we support the European Parliament to express the EU energy efficiency targets in both primary and final energy (leaving the Member States the choice between those two options would not allow for proper benchmark and results analysis).

Last but not least, we need to make everyone aware of the dangers that the ‘energy efficiency first’ principle remains just a slogan. Energy efficiency first is actually a simple rule that when consistently applied, will ensure that all investing and planning decisions are based on cost-benefit analysis, that all options available are carefully weighed, and that those solutions that will avoid stranded assets and excess of energy capacities will be privileged. It is nothing more than common sense and application of a basic economic matrix and should not be considered a constraint to Member States’ future choices. Not only we need the ‘Energy Efficiency first’ principle to structure the Energy Efficiency Directive up to 2030, but we also have to have it applied across the entire Clean Energy Package. Enshrining this principle in both the Energy Union Governance Regulation and the Renewables Directive will enable countries to maximise their energy gains while fostering a growing integration of renewable energy sources such as wind, solar and hydro, reaping all the benefits of an integrated approach to energy planning and an effective sector coupling.

Before the final discussions on the EU Clean Energy Package are over, we have a once-in-a-decade window of opportunity to make Energy Efficiency a centrepiece of a successful transition towards decarbonized future in Europe. Let’s do it!

[1] For years now, Veolia has been providing resource (water, materials and energy) optimization solutions for municipalities and industries across Europe. The group carries energy efficiency at the heart of its activities, as a part of its circular economy paradigm. Through energy performance contracts, we commit to optimize our clients’ production efficiency, energy consumption, and energy mix, deriving part of the agreed remuneration on results-based standards. We work both on the energy supply side of buildings, with our boiler and cogeneration installations, and on the demand side, through tailor-made solutions enhancing the way buildings operate. Committed to its core missions, we stand ready to help industries, cities and people achieve an optimized decarbonisation of the European economy through increased energy savings.

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