Open letter: EU Taxonomy should recognise key role to increase energy efficiency of electrical and industrial solutions

In response to the Platform on Sustainable Finance’s consultation on preliminary recommendations for technical screening criteria for the EU taxonomy, the European Alliance to Save Energy (EU-ASE) addressed in an open letter the European Commission asking to recognise the key enabling role to increase energy efficiency of electrical and industrial solutions.

The letter says:

In May 2018, the European Commission published its action plan on sustainable finance which, among other elements, included a proposal to create a unified EU classification system (EU Taxonomy). We support this initiative that will provide greater clarity to investors on what can be genuinely considered sustainable economic activities. In order to fully deliver on the goals of the taxonomy, its technical screening criteria must include all the most beneficial and sustainable solutions available on the market.

Electrical equipment and industrial automation equipment and systems are key enabling technologies to deliver on energy efficiency and electrification. According to the Intergovernmental Panel on Climate Change (IPCC), the electrification of heating, transport and industry is essential, and the share of electricity should reach at least 60% in 2050 to keep global warming well below 1.5 °C.

Electrical equipment which helps control, command and optimise the electricity system is crucial because it improves energy efficiency, streamlines energy demand and supply, and supports the integration of renewable energies. Currently, there are about 8 billion electric motors in use in the EU, consuming nearly 50% of the electricity produced in the Union. Thanks to industrial automation technologies such as variable speed drives, highly efficient contactors and industrial control and automation, it is possible to achieve significant energy savings. For example, in Germany, demand-driven automation technology could deliver additional energy savings of between 10 % and 25 % in machines and plants.

For the reasons exposed above, we believe that it is essential that the EU taxonomy rightly recognises the enabling role of this industry for climate change mitigation, and we stress that:

  1. The full chain of electrical equipment from high voltage, medium voltage and low voltage should be covered in the manufacturing section, ensuring a comprehensive approach
  2. The enabling role of the electrical equipment as a system should be captured as a system. So, the eligible equipment should not be limited only to connected ones, missing other pieces needed to make the full system work.
  3. Industrial automation equipment and solutions should be included in the manufacturing section, either with a dedicated section or under the same section than electrical equipment.

 

Read the full letter here

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Commission strengthens EU energy efficiency rules, lacks ambition on targets

The European Commission unveiled today its “Fit for 55” package to adapt the EU’s energy and climate legislation to the new goals of reducing emissions by at least 55% by 2030 and reach climate neutrality by 2050. The package includes the key proposal to revise the Energy Efficiency Directive (EED).

The EED proposal contains a number of positive elements. First of all, it enshrines the Energy Efficiency First principle (EE1st) in the Directive, introducing the much-needed obligation to apply the principle in the decision making of energy and non-energy sectors.

Other important elements are the extension of the public owned building renovation obligation to all public bodies, as well as the introduction of a new obligation to cut energy consumption of public bodies by at least 1.7% annually until 2030.

The revised Directive reinforces the annual energy savings obligations target after 2024 by 1.5%, almost doubling the current obligation. It also excludes the accountability of direct fossil fuel combustion technologies and clarifies that a reduction of the energy use through measures under the ETS cannot count towards the fulfilment of the energy savings obligation.

The European Alliance to Save Energy (EU-ASE) welcomes the Commission’s proposal to level up its ambition on the EU energy efficiency rules. By acknowledging the Energy Efficiency First principle, the Commission recognises its crucial role to drive a fast and fair transition in energy and non-energy sectors. However, we regret that the Commission chose not to propose binding national targets on energy efficiency; furthermore, we are critical of the Commission’s decision to propose an EU wide energy efficiency target that, even if mandatory, is not aligned with the EU decarbonisation pathway. The Commission introduces a 36% target for final energy consumption, which does not catch the cost-effective opportunities stemming of at least 40% energy efficiency target by 2030.

Monica Frassoni, President of the European Alliance to Save Energy said:
The latest extreme weather events around the world and the ongoing Covid-19 pandemic show that there is no time left for half measures on climate and on economic recovery. The EU Energy Efficiency Directive must be fit for Europe’s decarbonisation goals as well as foster economic activities aiming at increasing efficiency in buildings, industry, and transport. In this sense, we think that the proposed targets should have been more ambitious. We will be working over the next months to demonstrate to the co-legislators that delivering on ambitious energy efficiency targets and fully applying the Energy Efficiency First principle is essential if the EU wants to be credible about reaching climate neutrality in time and avoid the worst effects of climate change. We hope that the European Parliament and the Council will further improve the current proposal”.

Harry Verhaar, Chair of the board of the European Alliance to Save Energy and Head of Public and Government Affairs at Signify said:
“To be able to fully unlock the multiple benefits of energy efficiency across the continent we need an ambitious EU legal framework. We welcome the revision of the Energy Efficiency Directive, which comes at a timely moment for Europe’s green recovery and clean energy transition. In particular, we praise the Commission for strengthening the provisions on the Energy Efficiency First principle. The principle needs to guide policymakers and investors in all energy planning, policy, and investment decisions. Energy efficiency is a powerful driver of sustainable economic growth and it is key to speed up our journey to a decarbonised Europe”.

Bertrand Deprez, Vice-Chair of the board of the European Alliance to Save Energy and Vice-President EU government affairs at Schneider Electric said:
“Energy efficiency is the indisputable driver to reach at least a -55% GHG emissions cut in the next decade. The European Commission proposal goes in the right direction, with very promising measures to accelerate energy efficiency efforts at end-use level, including the extension of renovation obligations to all public buildings. Yet, achieving the EU ambition for 2030 without tackling the renovation of the entire existing stock is ‘Mission: Impossible’: we need to extend it to all non-residential buildings.”

Bonnie Brook, Vice-Chair of the board of the European Alliance to Save Energy and Senior Manager Industry Affairs Building Automation at Siemens said:
“Enhanced criteria for energy audits and energy management systems are very encouraging. They should leverage the opportunities brought by the current advanced level of digitalisation. Smart technologies should be widely deployed to enable monitoring, analysis and evaluation of the energy performance as well as the progress to the carbon-free future”.

Ahead of the publication of the proposal, the European Alliance to Save Energy provided to the European Commission its recommendations on how to make the EED “fit for 55%”. The Alliance looks forward to working together with the European Parliament and the Council during the co-legislation period to ensure that the Directive is ambitious and comprehensible.

According to the International Energy Agency’s Global Net Zero Roadmap for the Energy sector, the path to global net zero emissions implies a global push in energy efficiency gains resulting in the annual rate of energy intensity improvements averaging 4% to 2030 – about three times the average over the last two decades.

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Media contact:
Antoan Montignier
Policy and Advocacy Advisor
antoan.montignier@euase.eu
+32 499 84 97 28

About us
The European Alliance to Save Energy (EU-ASE) aims to advance the energy efficiency agenda in the European Union. The Alliance allows world’s leading multinational companies to join environmental campaigners and a cross-party group of Members of the European Parliament. EU-ASE business members have operations across the 27 Member States of the European Union, employ over 340.000 people in Europe and have an aggregated annual turnover of €115 billion.

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High-level discussion on Spain’s recovery plan

EU-ASE and the Grupo Español para el Crecimiento Verde hosted an event on Next Generation EU and Spain

On Thursday 22 April (10:00-12:15 CET) we organised, together with the Grupo Español para el Crecimiento Verde, a high-level discussion on the Spanish Recovery and Resilience plan.

The aim of the event was, on the one hand, to analyse in depth how the expectations of the Government and different areas of the Administration regarding the Next Generation EU funds fit with the capacities of the industry and the private sector. On the other hand, to learn in detail about the mechanisms that will be used to channel projects funding.

The webinar Plan de recuperación, resiliencia y sostenibilidad social y ambiental para salir de la crisis saw the participation of representatives of the Spanish government and regional and local authorities.

The event was held in Spanish (no translation provided).

Watch the recording of the event on our YouTube channel

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The contribution of water efficiency and energy savings to the European Green Deal

With this workshop, co-organised with the Maltese Ministry for Energy, Enterprise and Sustainable Development, we explored policy, technological and practical approaches to fully realise the highly needed energy savings and achieve the emissions-reduction potential of the water-energy nexus.

Water and energy are highly interdependent (‘water-energy nexus’) and should be considered as such across all European Union policies. This would ensure the availability of Europe’s water resources, while supporting the EU energy and climate objectives, in particular those related to energy efficiency.

Energy is needed to abstract, distribute, heat, cool, treat and desalinate water. Water and wastewater sectors account for 3.5% of electricity use in the EU and that share is expected to rise over the next years. For municipalities, water and waste water facilities account for the largest consumption of electricity, representing 30-40% of local authorities’ total electricity bill.

Smart water management across the water sector as well as industrial, commercial, and residential water cycles can lead to significant energy savings. The key is to fully understand the energy-water nexus, its ability to generate water and energy efficiencies, and its contribution to deliver the ambitious goals of the European Green Deal.

The workshop featured:

  • A keynote address from Miriam Dalli, Minister for Energy, Enterprise and Sustainable Development of the Republic of Malta
  • An overview of the EU policy and regulatory framework related to the water-energy nexus by Veronica Manfredi, Director for Quality of Life, DG Environment, European Commission; and Robert Nuij, Deputy Head of Unit for Energy Efficiency, DG Energy, European Commission
  • Case studies presentations by leading businesses to support current EU policy implementation and future policy and regulatory developments
  • Q&A with the panelists
  • Conclusions by Simona Bonafè, Member of the European Parliament and of the ENVI and ITRE Committees

Watch the recording of the event on our YouTube channel

The full presentation is available here

Our publication:
Water-energy nexus and energy saving obligations: industry success stories

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10 years and going strong! Celebrating the first decade of EU-ASE

2021 marks the 10th anniversary of the European Alliance to Save Energy (EU-ASE).

EU-ASE was established at the United Nations Climate Change Conference (COP16) held in Cancun, Mexico, in December 2010. Over the last decade, it has grown to become one of the most influential business-led organisations on energy efficiency in Brussels.

Our vision remains unchanged. We strive for a future where energy efficiency is central to the entire EU energy system and is a fundamental driver of decarbonisation, job creation and sustainable growth.

“When the European Alliance to Save Energy was founded, energy efficiency was the Cinderella of EU energy policies. This is no longer the case. Energy efficiency and the energy efficiency first principle have gained the attention they deserve and are a pillar of the European Green Deal. I believe our efforts – coordinated with our partners in Brussels, Europe and globally have been crucial to make this happen. However, the road ahead is still long, as the energy efficiency potential in buildings, transport, and industry is still largely untapped. In the next decade, we need to make energy efficiency measures a game changer in the EU energy system and a major priority in Member States to achieve climate neutrality by 2050,” said Monica Frassoni, President of the European Alliance to Save Energy.

“In a rather short time the European Alliance to Save Energy has become a major player in the EU sphere and a reference for the institutional and businesses community. Our voice is heard and appreciated by policy and decision makers. The Alliance’s 10th anniversary comes at a decisive moment with energy efficiency set to play a crucial role for economic recovery and the clean energy transition. Several key pieces of legislation will be revised in the course of 2021. We look forward to the second decade of the Alliance which interestingly coincides with that of global climate action,” stated Harry Verhaar, Chair of the Board of the European Alliance to Save Energy.

“Ten years have flown by incredibly fast. A decade ago, our aim was to put energy efficiency at the centre stage of the energy transition by bringing together progressive businesses, environmental think-tanks and NGOs to work as an ‘alliance’. Today our model is a success. We look forward to the next decade, with the same motivation and increased ambition, hoping to welcome new members from across sectors and build many more innovative partnerships,” commented Luigi Petito, Head of the Secretariat of the European Alliance to Save Energy.

View our 10 years video testimonials here and follow EU-ASE social media channels (Twitter and LinkedIn) and #EUASE10 to stay updated with our activities to celebrate the 10 years of the Alliance. Here is to many more to come!

About us
The members of the European Alliance to Save Energy (EU-ASE) are some of the world’s leading multinational companies, a prominent cross-party group of European politicians and environmental campaigners. EU-ASE provides a platform from which business leaders can advance the cause of energy efficiency, promote good business practices, and share innovative ideas.

Media contact
Matteo Guidi
matteo.guidi@euase.eu
+32 493 37 21 42

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