Energy efficiency to drive EU plan to go carbon-neutral by 2050

The proposal, which sets out how the EU will meet its commitments under the Paris climate agreement, lays out eight emission reduction scenarios for 2050 and came out in favour of reaching net zero emissions, which would be closest to achieving the goals of the Paris agreement.

A clean planet for all this is the title of the EU Commission’s strategy for a climate-neutral economy by 2050. The proposal, which sets out how the EU will meet its commitments under the Paris climate agreement, lays out eight emission reduction scenarios for 2050 and came out in favour of reaching net zero emissions, which would be closest to achieving the goals of the Paris agreement.

The most important element of the strategy is that it sets the goal of a carbon neutral Europe by mid-century. In its strategy, the EU Commission does not yet lay down any concrete steps. It sees its paper as a long-term vision for Europe to open a debate rather than to indicate a clear way forward.

“More than 90% of European are concerned about climate change. We must take bold actions to limit global warming. There are good elements in the proposed long-term strategy but more decisive consideration of the game changing potential of energy efficiency is needed in order for the EU to arrive to a carbon neutral world by 2050”, said Monica Frassoni, EU-ASE President, commenting on the long-term strategy. “Moving forward, actions are needed to make the energy efficiency first principle Europe’s no.1 priority. For example actions to accelerate building renovations will deliver real benefits to citizens, businesses and the environment”, she added.

Harry Verhaar, Signify: “A net zero carbon goal is a triple win for Europe. The creation of a carbon neutral society by mid-century will result in social benefits for Europe’s citizens, will improve the quality of our living environment and will provide economic benefits, the latter either to the national or local economy, or for our household and businesses. Removing current carbon constraints is the smartest and best thing that can be done to set course to a more inclusive and fair society for all Europe’s citizens. With the carbon neutral goal now set, it is imperative that we turn to action, with priority for energy efficiency that will also deliver the jobs and prosperity this better Europe aspires and deserves.”

“There are good elements in the proposed long-term strategy, but more decisive consideration of the game changing potential of energy efficiency is needed in order for the EU to arrive to a carbon neutral world by 2050. Moving forward, actions are needed to make the energy efficiency first principle Europe’s no.1 priority.”

 

Monica Frassoni, President of the European Alliance to Save Energy

Next steps

The Commission will present its draft strategy at the global climate conference (COP 24) in Katowice, Poland, on 12 December. The European Parliament’s environment committee is expected to comment on the Commission’s strategy by 1 March 2019. A final agreement between EU governments is expected in 2019. According to the Paris climate agreement, all parties – including the EU – must submit updated 2030 emissions targets by 2020.

“A net zero carbon goal is a triple win for Europe. The creation of a carbon neutral society by mid-century will result in social benefits for Europe’s citizens, will improve the quality of our living environment and will provide economic benefits, the latter either to the national or local economy, or for our household and businesses.”

 

Harry Verhaar, Chair of the European Alliance to Save Energy

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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Ahead of BUDG/ECON vote on December 3, businesses support Building Renovation Window in the InvestEU programme

To the kind attention of the Members of the BUDG and ECON Committees

Harry Verhaar

Chairman of the Board of Directors of the European Alliance to Save Energy (EU‐ASE)

Head of Global Public and Government Affairs, Signify

Brussels, 28 November 2018

Dear Member of the European Parliament,

RE: Ahead of BUDG/ECON vote on December 3, businesses support Building Renovation Window in the InvestEU programme

I am writing to you on behalf of the European Alliance to Save Energy (EU-ASE). 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.

The Multi Annual Financial Framework (MFF) post 2020 is a unique opportunity for the EU to demonstrate coherence with its long-term energy and climate objectives and show commitment to deliver tangible benefits to European citizens. Our business community sees the MFF as a necessary trigger for outlining the much-needed long term political direction for mobilizing private investments towards a decarbonized European economy. Public EU funds alone are not sufficient to finance this energy transition. According to a recent report of the European Commission, the EU budget contribution to mitigation finance covers as little as 5-7% of the total resource required1. But the EU budget has an important leveraging role to play in attracting private investments necessary to fill the gap. The investments in clean technologies, and in particular in cost-efficient energy efficiency projects, will only get unlocked if the EU provides long term certainty to the private sector.

Our position paper A climate-proof budget to leverage the necessary investments to deliver the Paris Agreement outlines in greater detail the views of a cross sectoral alliance of businesses on the current discussion concerning the overall MFF proposal and the related sectoral funding instruments. It calls for a full application of the Energy Efficiency First principle, increased climate mainstreaming and improved climate proofing.

With specific regard to the InvestEU programme, which is due to be voted on December 3 in the BUDG and ECON Committees, we believe the programme should prioritize investments in energy efficiency and promote the integral energy saving technological uptake (both on the energy demand and supply sides) in sectors with high potential, such as the EU building sector. Indeed, the European building stock uses about 40% of the EU final energy consumption and 75% of buildings remain largely inefficient. Considering the staggering amount of energy that is wasted because of inefficiency in power and heat production, delivery and consumption in this sector, we should put all our effort to minimise this waste, which can be avoided.

Our homes are responsible for about 36% of CO2 emissions in the EU. Such emissions must be cut by at least 90% to reach net zero by 2050 and limit the devastating impact of climate change on people, communities, economies and ecosystems around the world.

In addition, we should not underestimate that, beyond energy and cost savings, the renovation of buildings, being building management systems or staged deep renovation, also brings along non-energy related benefits such as the creation of local jobs, thermal comfort, better living conditions, healthier populations and it is likely to eventually pave the way for the electric vehicle revolution2.

Hence, the question of feasibility: one of the key barriers in the much needed renovation of European residential buildings is leveraging finance from the private sector. The ITRE Committee voted in favour of the creation of a building renovation window which could address this barrier and could help tackle the EU renovation challenge by stimulating private investments. Dedicated funds for building renovations will provide EU guarantees for the development of innovative financing schemes such as energy performance contracting, pre-financing with on-bill or on-tax repayment, green bonds and green mortgages that will help to finance large amounts of small projects stemming from the EPBD long-term renovation strategies and will help to increase the renovation rate across the continent.

Dear Member, ahead of the vote on December 3, we urge you to support the ITRE proposal to create a building renovation window because investing in the renovation of our homes simply makes economic sense and speaks to the hearts and minds of people.

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

 

Yours sincerely,

Harry Verhaar

Chairman of the Board of Director of the European Alliance to Save Energy (EU-ASE)

Head of Global Public and Government Affairs, Signify


[1] Climate Mainstreaming in the EU Budget: preparing for the next European Commission, Directorate General for Climate Action, https://publications.europa.eu/en/publication-detail/-/publication/1df19257-aef9-11e7-837e01aa75ed71a1/language-en

[2] Rocky Mountains Institute Report on EVs deployment, which predict a 3,000 Twh increase in electricity demand by 2040 if the world switches to electric vehicles as fast as their fastest scenario. To ensure that the power grid has sufficient capacity to deal with it, the researchers advocate accelerated action from political leaders and to step up the renovation of buildings to improve their energy According to the researchers, increasing the current global building retrofit rate from approximately 1% per year to just over 5% per year, could accommodate baseline adoption of 550 million electric vehicles on the road through 2040 without increasing generation capacity dramatically.

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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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