Common Sense Policy in an age of austerity – why the UK needs a European Framework for Energy Efficiency

Over 100 representatives from British businesses and civil society organizations gathered at the House of Commons in London on 28 February, 2012 to discuss why, particularly in these times of austerity, the UK needs a European framework for energy efficiency. The debate which was co-organised by the European Alliance to Save Energy (EU-ASE), the UK’s Associate Parliamentary Renewable and Sustainable Energy Group (PRASEG) and All-Party Parliamentary Fuel Poverty and Energy Efficiency Group (FPEEG), was particularly relevant as the European Parliament’s ITRE committee had agreed a very forward-looking position on the Energy Efficiency Directive that morning

The Parliament vote set a positive tone for the debate and message from speakers was clear; the UK has the potential to lead the European energy efficiency market, helping not only to create significant jobs and growth opportunities for UK businesses but also to greatly contribute towards achieving the UK and the EU’s wider energy and climate goals. The Energy efficiency Directive is a vehicle to achieve all of this.

Leading British companies are supportive of European action.

According to Tony Robson, CEO of Knauf Insulation, ‘‘The UK has long history of energy efficiency legislation. It is one of the areas where the UK is at the centre of what is right and where the UK can take the lead in Europe ” Martin Schaer added; “We have technology and industry is willing to support”.

But If the EU does not support UK and European businesses, according to Sumir Karayi, CEO of 1E, ‘We will be left behind again as the US and emerging markets grow’.

The UK coalition government was urged to support a strong Directive
Monica Frassoni, President of the European Alliance to Save Energy, urged the coalition government to work with colleagues in the European Council to raise and not weaken the ambition of the Directive.

In response, the UK’s new Secretary for State for Energy and Climate, Mr Edward Davey, recognized that “energy efficiency is something we can do better together”. He added, “If we get the right Directive it could drive innovation and give investors the certainty they seek and it would good for the economy and competitiveness”. However, he stressed that,“Nevertheless, we need to be realistic [and] there will be some tough negotiations”.

The conclusion; whilst it is going to be a challenge to bridge the gap between the very strong Parliament text and the current very weak council position, the UK can and should lead the charge on the Energy Efficiency Directive.

Representatives from some of Europe’s largest investors and private enterprises joined Europe’s leading policy makers and stakeholders at a half-day workshop on February 13, 2012 in Brussels to discuss “How to mobilise private sector finance for energy efficiency”.
Organised by European Alliance to Save Energy (EU-ASE) along with the Danish Presidency of the European Council and the Danish Ministry of Climate, Energy and Building, this event marked the first time that the world of finance openly discussed the need for a robust regulatory framework for energy efficiency with some of Europe’s key policy makers and campaigners. The focus of the debate was on whether the current proposal for an Energy Efficiency Directive (EED) was the best vehicle to deliver this.

With over 100 experts from the world of finance, industry and policy, including an address from Phillip Lowe, Director General of the DG Energy of the European Commission, the discussion was enlightening, yet overall the message was clear: money matters and investors are ready to mobilize energy efficiency investments if they have certainty on their return of investment.