Energy efficiency and the Energy System Integration Strategy

Reducing emissions across all sectors and decarbonizing “hard-to-abate sectors”, which include buildings, industry and transport, will strongly depend on the EU ability to apply the energy efficiency first principle, which should be mainstreamed to all energy policymaking, planning and investments, including into the upcoming EU Strategy on energy sector integration. 

Energy efficiency is the first fuel and should be the starting point for all decarbonization efforts, and this according to the energy efficiency first principle as defined in the Governance for Energy Union Regulation. Together with renewables, it must represent the lion’s share of the measures needed to meet the 2050 target. Energy efficiency and renewable electrification are two key pillars of a 1.5C decarbonization pathway.

To achieve its climate neutrality goal by 2050, the Commission has announced an Energy System Integration Strategy as part of its Green Deal. This new strategy will look at how to facilitate the interlinkages between electricity, heating, building, transport and industry sectors, to better use synergies likely to emerge (including in energy conversion and storage), thereby enabling a more cost-efficient decarbonization of the energy system. This includes looking at how integrating sectors can improve the overall efficiency of the energy system through enabling reuse of excess/waste energy, storage of surplus electricity in thermal networks, buildings and transport as well as to incentivize the clean electrification of sectors, interconnectivity and energy storage.

The recommendations outlined in this paper put forward some key ideas to fully consider the potential for energy efficiency and its role in facilitating the transition towards more integrated energy and other sectors.​

 

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Recommendations for a neighbourhood approach to maximize energy efficiency in renovation and energy planification

This position paper calls on the European Commission to integrate the notion of neighbourhood approach in the EU building and energy efficiency policy framework, in the national programmes for buildings renovations and in the upcoming Renovation Wave strategy.

The current energy efficiency legislative framework in buildings already refers to the notion of a district or neighbourhood approach, in particular in Art.19, §2, of the Energy Performance of Buildings Directive (EPBD).

While the article refers to 2026, given the multiple benefits of a neighbourhood approach and the need for accelerating our climate actions, the EU should prioritize the integration of this principle in its climate and energy framework and any new initiatives linked to renovation and decarbonization. This is all the more relevant, as the main challenge today is not so much the construction of new buildings as the renovation of the existing ones.

We need to make sure that the renovation policies deliver fast and concrete results in terms of increased energy efficiency and overall system efficiency, reduced energy consumption and reduced GHG emissions. A neighbourhood approach could help us achieve these goals and the overall objective of a highly energy efficient and decarbonized building stock.

 

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EU wide Renovation Wave: where growth strategy and job creation meet climate goals and social inclusiveness

Unlocking the potential for energy efficiency and carbon footprint reduction that lies in the EU buildings stock is a top priority for the European Alliance to Save Energy.

 

As businesses and investors having energy efficiency and energy demand reduction at the heart of our activities, we look forward to seeing Europe’s global climate leadership translated in green measures which will lead to a sustainable recovery through stimulus packages. We strongly believe that the Renovation Wave as part of the EU Green Deal is a great opportunity to promote a European based industry, with technologies and expertise able to serve the renovation demand locally. This will help to maintain the competitive advantage of the European industry and will contribute to the European green recovery and local job creation while lifting millions of Europeans out of energy poverty.

We support a system-wide approach that puts highly energy efficient, renewable-based, smart and flexible buildings at the center of a fast-changing decentralized energy system.

With this in mind, we envisage an EU wide building Renovation Wave which revolves around the swift implementation of the Energy Efficiency First principle as the fastest and most cost-effective way to reduce emissions and stimulate sustainable economic recovery.

We are convinced that highly energy efficient and smart buildings are the first and indispensable step to:

  • Accelerate the deployment of renewable energy sources
  • Foster sector integration of buildings with other sectors, including industry,
    transport and energy sectors
  • Catalyse energy system decentralization and enhance overall system efficiency
  • Stimulate a sustainable economic recovery, and boost local employment

For this to happen Europe must back an ambitious and impactful Renovation Wave which aims to increase the energy efficiency of buildings by reducing their energy consumption and by fostering the greater quality, the rate, and the depth of comprehensive renovations encompassing envelopes and technical buildings systems. Concretely, and to stay on track with the EPBD goal of decarbonizing the EU building stock by 2050, the Renovation Wave should be designed to reach a minimum of a 3% renovation rate per year combined with an average energy efficiency improvement of 75%.

The social impact of an EU wide energy efficient Renovation Wave would be tremendous. Improved comfort, cleaner indoor and outdoor air quality, reduced energy bills, the emerging role of prosumers with the possibility to optimise and monetise their energy resources on a peer-topeer market place, better and more qualified local jobs are just a few concrete examples of the multiple benefits that Energy Efficiency First in buildings would deliver to those who need them the most, i.e. live in energy poverty.

 

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The Industrial Emissions Directive review and the European Green Deal: fully realise water and energy savings in industry and related emission reduction

We welcome the review of the Industrial Emissions Directive (IED). While we believe the Directive has been responsible for solid progress against identified air and water pollutants, and the BREF process has contributed to identifying Best Available Techniques, in its current form the Directive is not able to contribute toward EU ambitions for climate neutrality.

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EU-ASE contributes to Coalition’s Energy Efficiency package for the European Green Deal

The EU and its Member States have committed to achieving a significant reduction of their overall energy demand by agreeing on 20% and 32.5% energy efficiency targets for 2020 and 2030 respectively. Those targets set by the Energy Efficiency Directive (EED) are minimum targets for which the Member States have to pledge indicative national contributions. In order to secure the achievement of these targets, the EU provides binding measures, including:

  • the energy savings obligation (EED Article 7), requiring each Member State to put in place policies and measures to deliver a minimum amount of new and additional energy savings per year until 2050;
  • Ecodesign, Energy Performance of Buildings Directive (EPBD) and CO2 emission standards for vehicles to ensure that CO2 emissions are reduced, and energy performance is significantly improved.

Although the current policy architecture (EU headline target, indicative national contributions and binding measures) has led to improvements, it is still not delivering enough. Energy consumption has been growing over the last years, and the European Commission does not expect the 2020 target to be achieved. Furthermore, the national 2030 energy efficiency national contributions put forward by Member States in their draft national energy and climate plans (NECPs) bring the EU only halfway to its 2030 energy savings target compared to the baseline.

In this context, the Coalition for Energy Savings notes that the Commission intends to reinforce the existing policy framework. Not delivering the minimum energy efficiency target is not an option. On the contrary, the 2030 target will need
to be revised to get on a path to net-zero emissions and to tap the cost-effective energy efficiency potential of at least 40%.

The Coalition for Energy Savings calls on the Commission to strongly support full implementation and enforcement of existing legislation and, in parallel, to put in place new measures to increase the ambition.

The Coalition proposes the following Energy Efficiency Package as an enabler to deliver the European Green Deal.