EUSEW 2020 blog | Smart and the city: energy efficiency and sector integration for a #carbonneutralEU

by Julie Kjestrup, Interim Head of Group Public Affairs and Sustainability at Danfoss and Board Member of the European Alliance to Save Energy.

This article was published in the blog of the EU Sustainable Energy Week 2020


In the next few years, policy makers will have to rethink urban planning and market designs. For the cities of tomorrow to be sustainable, sector integration and energy efficiency must be at the heart of the policy framework.

The COVID-19 pandemic has increased the urgency of a Green Deal framework that delivers, to ensure that we do not go back to where we were but forward to where we want to be: to a sustainable society, protecting our climate and creating future-proof jobs and growth.

Leveraging urban efficiency is essential to getting there. Cities provide unique opportunities for energy and resource efficiency, using synergies between the elements of the urban energy system. This makes them ideal frontrunners to showcase new technologies and create attractive, future-proof places to live and work.

The key is to be smart in the way we use our (future) energy: this means smart about how much energy we consume in the first place. In other words: energy efficiency first. Capturing the full potential of energy efficiency will allow a faster roll-out of renewables and lead us on the most cost-efficient path to carbon neutrality. In fact, recent research from Denmark shows that the extra costs for reaching Denmark’s new and ambitious 70% CO2 reduction by 2030-target can be significantly reduced by investing in existing energy efficiency technology in buildings and industries.

It also means smart about how we use, re-use and store our energy: through interconnections, integration and managing demand and supply in an efficient way we can stabilise our grid. We can use the excess heat from a nearby factory, data centre or supermarket to warm or cool houses, or to charge an electric vehicle. By creating synergies between sectors like buildings, industry, power generators and transport, sector integration is integral to reach decarbonisation.

According to a forthcoming research from Navigant, implementation of existing technology solutions for sector integration, energy efficient heating and cooling of buildings and electrified transport can bridge about half of the gap needed to reach the 1.5°C target in urban areas. At the same time, these reductions will contribute with more than one-third of total needed national emissions reductions in Europe. It can also save money. The Heat Roadmap Europe studies show that utilising energy system synergies and exploiting energy efficiency can save Europe 13% of primary energy use and reduce total energy-system costs by approximately 70 billion euros per year compared to other decarbonisation scenarios.

The future is here already: EnergyLab Nordhavn is an important part of Copenhagen’s overall goal of being climate neutral by 2025. A ‘living lab’ on efficient and smart sector integration, it will house 40,000 residents and 40,000 workplaces when done. Going forward, projects like this must become norm, and that means integrating our own thinking in terms of levers of the future energy policy framework.

The Green Deal framework enables that by putting a holistic vision forward that can create a more resilient, efficient and consumer-based system, and add jobs and growth along the way. To make this happen, policy makers will have to rethink urban planning and market designs. For the cities of tomorrow to be sustainable, sector integration must sit at the heart of the policy framework.

Additional information:

https://www.danfoss.com/en/about-danfoss/insights-for-tomorrow/energy-efficiency/

https://www.danfoss.com/en/about-danfoss/insights-for-tomorrow/district-energy/

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We must invest today in the buildings of tomorrow

by Bertrand Deprez, EU-ASE Board Vice-chair & Mohammed Chahim, Member of the European Parliament

This op-ed was published on Euractiv


In the COVID-19 aftermath, making our buildings energy efficient is key to reconcile Europe’s climate objectives with rapid economic recovery. To get this done we need an ambitious policy roadmap at EU level.

The European Union is facing a great challenge: how to quickly re-build Europe’s economy in the context of Covid-19 while ensuring to keep itself on the path to become climate neutral by 2050.

Against this background, investing in decarbonising buildings is key to reconcile climate objectives and economic recovery, in a virtuous way. Indeed, the renovation wave is one of the key pillars of the European Green Deal, which should be at the core of the post-COVID-19 recovery plan.

The reasons beyond this are easy to grasp. Buildings are the single largest energy consumer with approximately 40% of EU energy consumption. This value is estimated to go up to 50% if the construction industry and its upstream value chain are included.

Moreover, as urbanisation increases sharply, up to 68% by 2050 versus 55% today, with a multiplication by 2 of existing building stock globally, in Europe, the volume of floor additions could top 20 billion square meters by 2050.

The building sector represents today 7-10% of the workforce in OECD, a major source of employment, hence economic growth and social welfare, with SMEs contributing to more than 70% of the value-added in EU’s building sector. This represents about 18 million direct jobs.

Buildings are where people live and work, and where people spend 95% of their time. Enabling the transition towards buildings of the future could enable new ways to manage energy through local energy communities and ‘prosumers’ (consumers who both consume and produce energy, usually electricity).

Finally, Europe has a lot of strengths in this area, with leading players covering the whole spectrum of the value chain (construction industry, technology providers, utilities, services business, and specialised software companies).

In this context, investing in energy efficiency in buildings is a unique opportunity to realise a “Just transition”. Just transition because contributing to creating local jobs, pulling out low-income people from energy poverty, providing decent and comfortable environments, and on-boarding citizens in a local vision of the energy transition.

Buildings of the future can be at the heart of the green transition in Europe if we manage to combine the principle of energy efficiency first with the deployment of distributed energy resources and the rise of digital technologies. These are the conditions for the ultra-efficient buildings of tomorrow to become the critical pillar of a fully decarbonised energy system.

Achieving that requires adopting a system efficiency approach for our buildings, our urban districts, and our cities. Such an effort would be worthwhile because it could transform our buildings into prosumers and fundamentally change how people, how end-users consume and produce their energy.

For all of that to become a reality, we need an ambitious policy roadmap at EU level that shall focus on three points:

Going for an integrated policy approach based on a combination of regulatory and financial incentives with the objective to make buildings net zero-carbon by 2050 in Europe

Mobilising investment to support the deployment of technologies that are critical to achieve both efficiency (e.g. insultation, district heating, digital tools like BIM, electric vehicles, heat pump, solar panel) and demand-side flexibility to accelerate the integration of buildings into a fully decarbonised energy system.

Scaling-up the renovation rate by making of ‘building renovation’ a strategic value chain and bringing all players of the value chain to work together and develop a marketplace for building renovation at European level

In addition, at the EU level, we need to make the renovation wave initiative one of the strong drivers to stimulate our economies across Europe. In this light, it is key to accelerate energy efficiency in the building space, including by implementing existing rules and adopt new financial and regulatory incentives to promote building renovation.

This would allow building the energy efficient homes and buildings of tomorrow, thus paving the way for both economic recovery and the green transition.

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The vaccine to future crises is sticking to climate neutrality

by Monica Frassoni, President of the European Alliance to Save Energy (EU-ASE)

This op-ed was published on Foresight


While helping workers and companies survive the current crisis, the European institutions should confirm and accelerate the EU’s path to carbon neutrality by 2050, including fixing emissions reduction targets in line with science.

The effects of Covid-19 affect all of us, citizens, businesses and policymakers, and put us in front of a highly disruptive and unprecedented situation. This emergency is forcing us to quickly find solutions to come out as soon as possible from a standstill that touches all aspects of our lives.

What is even more worrying, however, is that this crisis might not be unique in the upcoming years. Even before the outbreak of Covid-19, it was already well-known that challenges such as climate change, pressure on resources and social inequalities required deep transformations in our ways of producing, consuming, living and moving at every level, from local to global. The current crisis has made this clearer. As we plan the next economic recovery measures, we cannot limit ourselves to repair what has been broken. We must collectively build a more sustainable and resilient society to be able to prevent, or at least limit, damages from future shocks. To do this, common, coordinated action is necessary and the EU’s input and guide are precious.

That is why it is key to resist calls to water-down or postpone the European Green Deal from those arguing that in these difficult times supporting the economy no matter what should be prioritised over preparing our transition to a sustainable society. As an association representing strong, global businesses, we believe this dichotomy is false and counterproductive. On the contrary, the Green Deal is the best available, if not the only, growth strategy for the present and the future.

We will all benefit from the acceleration of investments stemming from the Green Deal and Europe’s drive towards climate neutrality will create opportunities that will help us out of the current economic standstill while preventing the future health, economic and environmental crisis that is likely to happen if we fail to keep the global temperature increase below 1.5°C. By basing economic stimulus plans on energy and resource efficiency, circularity and inclusion, European governments could boost economic recovery and job creation in key sectors such as construction, transport, energy, agriculture and manufacturing.

While helping workers and companies survive the current crisis, the European institutions should confirm and accelerate the EU’s path to carbon neutrality by 2050. A clearer roadmap for 2030 and 2040, fixing adequate targets of emission reductions in line with science, is needed. Moreover, we need an efficient and more easily accessible financial framework to help unlock and direct the enormous amounts of private and public investments that will be available in the next months. Finally, the planned revision and update of existing EU legislation, notably in the energy and circular economy sectors, must not be delayed.

In addition, if we are to build a sustainable, resilient and inclusive EU economy we need to overcome existing barriers. These include the insufficient implementation at national level of current legislation, particularly when it comes to energy efficiency and renewables; cumbersome procedures making green investment and the use of available resources difficult for those which could most benefit from them (such as SMEs, local authorities and communities); and hesitations and delays to realise the much-needed phase out of fossil fuels.

The Green Deal is not yet a given. It still needs to be clearly defined and its implementation faces today unexpected challenges. Still, we believe that business and societies are more and more aware that we cannot simply go back to where we were before. Europe needs a clear direction, sufficient resources and a sound and shared set of rules to move beyond the shock of Covid-19 and prevent future crises. Sticking to the climate neutrality path is the only way allowing to do both.

 

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Green recovery: reboot and re-boost our economies for a sustainable future

The coronavirus crisis is shaking the whole world, with devastating consequences across Europe. We are being put to the test. We are suffering and mourning our losses, and this crisis is testing the limits of our system. It is also a test of our great European solidarity and of our institutions, which acted fast at the start of the crisis to deploy measures to protect us. The crisis is still ongoing, but we will see the light at the end of the tunnel, and by fighting together, we will beat the virus.

Never have we faced such a challenging situation in peacetime. The fight against the pandemic is our top priority and everything that is needed to stop it and eradicate the virus must be done. We welcome and strongly support all the actions developed by governments, EU institutions, local authorities, scientists, medical staff, volunteers, citizens and economic actors.

In this tremendously difficult situation, we are also facing another crisis: a shock to our economy tougher than the 2008 crisis. The major shock to the economy and workers created by the pandemic calls for a strong coordinated economic response. We therefore welcome the declaration of European leaders stating that they will do “whatever it takes” to tackle the social and economic consequences of this crisis. However, what worked for the 2008 financial crisis may not be sufficient to overcome this one. The economic recovery will only come with massive investments to protect and create jobs and to support all the companies, regions and sectors that have suffered from the economy coming to a sudden halt.

After the crisis, the time will come to rebuild. This moment of recovery will be an opportunity to rethink our society and develop a new model of prosperity. This new model will have to answer to our needs and priorities.

These massive investments must trigger a new European economic model: more resilient, more protective, more sovereign and more inclusive. All these requirements lie in an economy built around Green principles. Indeed, the transition to a climate-neutral economy, the protection of biodiversity and the transformation of agri-food systems have the potential to rapidly deliver jobs, growth and improve the way of life of all citizens worldwide, and to contribute to building more resilient societies.

 

Download the full letter and list of signatories

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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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