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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The Italian building stock – Strategic sector for Energy Efficiency in the country

Last 19th October, EU-ASE’s President Monica Frassoni took part in Kyoto Club’s event in Rome “The Italian real estate: a strategic infrastructure at the service of the country’s energy system”, where she participated on a panel together with Francesco Ferrante (Kyoto Club’s Vice-President), Lorenzo Pagliano (Professor at Politecnico de Milano), Alberto Mario Ermelli Cupelli (Manager of International Relations at Knauf Insulation Italia), Alessandro Carettoni (DG for Climate and Energy at Italian Environment Ministry), and Paolo Curati (Managing Director at Knauf Insulation Italia).

Frassoni outlined how the new EU energy efficiency framework can promote the energy retrofit of buildings, and called on the Italian Government for increased earmarking and climate mainstreaming in next MFF post-2020 to incentivise private investments in the building sector.

“Like it or not energy efficiency is key to decarbonise the European Union”

 

Monica Frassoni, EU-ASE President

During her intervention, she also addressed EU-ASE’s main points, pointing out that energy efficiency is key to decarbonising the EU, that improvements made in energy efficiency mean more energy security and less dependence on gas imports, ant that the EED targets are not a goal, but a starting point for national transposition.

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Companies call for net-zero emissions by 2050 to help transition to low-carbon economy

Energy Efficiency accelerating the shift to a decarbonised Europe

Climate change is defining our era. If our behavior doesn’t change, we risk missing the moment when we can avoid the disastrous consequences of climate change, for people and for the natural systems that support us all. We are at a defining moment.

The businesses call for a net-zero emissions reductions by 2050 at the latest, with the need for placing energy efficiency and smart use of energy at the center of the EU decarbonisation strategy.

Our key statements:

  1. Energy efficiency benefits European citizens
  2. A 1.5°C temperature goal for the world
  3. Net-Zero emissions by 2050 or sooner
  4. The “Energy Efficiency First” principle indispensable for achieving 1.5°c goal
  5. Energy efficiency and renewables work together to cut emissions
  6. An end to fossil fuel financing
  7. Energy efficiency benefits need to be assessed fairly

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EU-ASE joins the call to EU Ministers to ensure that the next EU budget is in line with the EU climate objectives and consistent with the Paris Agreement

To: Ministers of the General Affairs Council Dear Minister,

The co-signatories of this letter represent a broad group of one hundred and one businesses, civil society organisations, local authorities, think tanks and other organisations who are working together to support the EU’s commitment to achieve the UN Sustainable Development Goals and the Paris Climate Agreement objectives. We are writing to urge you to ensure that the next MFF is aligned with Europe’s climate and energy objectives, and is consistent with and contributes to the Paris Climate Agreement and Sustainable Development Goals across all programmes.

The recently published IPCC 1.5°C report shows that we have the scientific understanding, the technological capacity and the money to avoid the worst impacts of climate change. The only barrier is one of political will, which you and your colleagues can change.

Therefore, we ask you to:

  • Increase the climate action target to at least 40% of the whole EU Budget, with specific ex-ante binding targets per programme[1].
  • Climate proof the entire EU budget, and exclude spending on projects that are not in line with the Paris Climate Agreement, such as unabated fossil fuels infrastructure and environmentally harmful subsidies. Extend the exclusion criteria on fossil fuels in the Cohesion Fund programme proposal to all fossil fuel investment and apply these across all programmes.
  • Include Energy Efficiency First as a mandatory assessment tool in all planning and preparation of programmes and projects, similar to the provisions in the Regulation on the Governance of the Energy Union.
  • Improve the performance and result orientation of climate action. Take into account the recommendations by the European Court of Auditors on the climate tracking methodology, differentiate between mitigation and adaptation measures, and avoid overestimation.
  • Align financial flows and fiscal incentives to a low carbon pathway as committed to under the Paris Climate Agreement. Align the National Energy and Climate Plans with financing strategies under the EU Budget[2], and incentivise climate action through higher budget allocation and better financial conditions.
  • Provide support for a just transition to a low carbon economy, in particular to support communities and workers in high-carbon regions highly depending on fossil fuels. We look forward to engaging with you on this very important matter.

 

We look forward to engaging with you on this very important matter.

 

[1] In the current proposal, binding targets on climate action are only to be found in ERDF, a share of the Rural Development Fund and part of InvestEU.

[2] Such as Partnership Agreements, long term renovation strategies, Connecting Europe Facility plans, InvestEU proposals and the CAP.

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A climate-proof budget to leverage the necessary investments to deliver the Paris Agreement

The EU Multi Annual Financial Framework (MFF) post 2020 will define the Union’s financial means to address societal, economic and environmental challenges for the next 7 years. Therefore, the MFF is a unique opportunity for the EU to demonstrate coherence with its long-term energy and climate objectives and a serious engagement to deliver tangible benefits to European citizens. Our business community considers the MFF as the framework that can outline the much-needed long term political direction for private investors.

Public EU funds are not sufficient to finance the energy transition. According to a recent report commissioned by the European Commission, the EU budget contribution to mitigation finance covers as little as 5-7% of the total resource required. However, the MFF has an important signaling and leveraging role to play to attract private investments necessary to fill the gap. The investments in clean technologies and in particular in cost-efficient energy efficiency projects will be unlocked only if the EU provides long term certainty to the private sector.

The present paper is the contribution of a cross-sectoral alliance of businesses on the current discussion concerning the overall MFF proposal and the related sectorial funding instruments.

Several of MFF sectoral legislative proposals, such as Cohesion Policy (CP), Connecting Europe Facility (CEF), Horizon Europe and InvestEU, have a significant impact in sectors like energy, buildings and transport – which are major sources of GHG emissions. These funding instruments, if correctly designed, can drive growth and jobs across the EU. They can mobilize private investments in areas with high mitigation potential, such as energy efficiency, and be catalysts in the fight against climate change and the transition to a net zero carbon economy.

 

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