The newly elected MEPs are taking office, the race for the EU top jobs including the new Commission President is running and the new strategic agenda for 2019-2024 is discussed in Council, Commission and Parliament. In this context, the Coalition for Energy Savings releases four EU priority actions 2019-2015 for a fast, fair and attractive energy transition.

The EU has set minimum energy efficiency levels through its 2030 targets. But actions and measures are yet insufficient to accelerate the renovation of our ageing buildings, the replacement of inefficient appliances and the modernization of polluting transport systems.

The new European Parliament and Commission will have to close the gap between ambitions and actions and deliver tangible benefits to people and businesses, so that the Energy Union becomes a reality for all.

The Coalition for Energy Savings has identified four EU priority actions for 2019-2024 for a fast, fair and attractive energy transition. 

The recommendations cover four points:

• apply the energy efficiency first principle;
• support implementation and enforce existing law;
• provide dedicated financing and regulations for housing; and
• work with societal trends, starting with digitalisation.

[Extracted from the European Commission]

This document presents the numerous benefits the new EU rules will provide, from different angles – environmental, economic, security of supply, consumer, international, and from a longer time scale. The key message is that these changes are good for the planet, good for growth and jobs, and good for consumers. It is no coincidence that it is called the ‘Clean energy for all Europeans’ package.

In the face of the 21st century’s global energy challenges, the EU is leading the clean energy transition: striving for a more secure, competitive and sustainable energy system which will address the existential challenge of our time – climate change. By setting ambitious energy and climate targets for 2030, the EU is giving a clear sense of direction; in addition to these targets, it provides a stable legal framework to foster the necessary investment. But this is not the end of the road: with its 2050 long-term climate neutrality strategy, the EU is also looking further ahead than 2030, and setting the foundations for what a cleaner planet will look like by the middle of the century and beyond.

Over the period from 2021 to 2030, the total amount of energy to be saved in the EU under Article 7 equates to more than three times the annual energy consumption of France, meaning that it will be a key contribution to meeting the EU 32.5% energy efficiency target and to reducing greenhouse gas emissions.

The new and more demanding legal requirements for the 2021-2030 period will drive Member States to revisit, adapt and reinforce their policy portfolios. New provisions adopted last year should ensure that energy savings delivered each year by Member States under Article 7 are real and additional to business-as-usual.

“Implementation issues have been observed in the first period of Article 7, which jeopardises our chances of reaching the 2020 energy efficiency target”, said Stefan Scheuer, Secretary General of the Coalition for Energy Savings. “The good news is that the revised Directive comes with more legal clarity and more ambition. Our publication provides a stakeholder analysis of the new provisions, as well as recommendations for Member States on how to put in place sound policies and measures that maximise benefits for citizens and companies”.

The Coalition for Energy Savings calls on Member States to deliver energy savings with sound Article 7 policies and measures. This will fast-track energy efficiency in national energy and climate plans and help Member States boost their energy efficiency contributions, which so far have proved to be insufficient to reach the EU 32.5% target.

Current demand for housing and location are still the main drivers to a building’s appraisal value and for a tenant’s selection of housing, but energy performance is becoming increasingly important across all reviewed countries, according to the report.

Today, buildings account for 40% of Europe’s total energy consumption, and around 75% of the building stock is considered to be energy inefficient. According to the European Commission, the current 1% annual renovation rate it would take around a century to decarbonise the building stock to modern, low-carbon levels.

In November 2016, the European Commission launched the Smart Finance for Smart Buildings initiative. The aim was to unlock private financing for energy efficiency investments in buildings, of which an important objective initiative is to “de-risk” investments.

The main findings of the report include:

• Energy efficiency improvements seems to result in an increase of about 3–8% in the price of residential assets, and an increase of around 3–5% in residential rents compared to similar properties.
• For commercial buildings, the premium seems to be over 10%, and in some studies even over 20% of sales price increase compared to similar properties has been reported. Rental prices of commercial buildings have also been positively affected, by 2-5%.
• There are differences across regions and countries, as well as different property types (e.g. apartments vs. houses).
• A change over time is also seen, as labels and schemes become more well-known and understood. As higher energy performance is becoming the norm, higher values are associated with better performance.

Energy efficiency upgrades change the basic characteristics of the buildings affected and has therefore an impact on other value drivers, such as comfort, safety and maintenance. According to the report, the lower default risk linked to energy efficiency should also be considered and reflected in financial products.