Changes from plenary report to adopted text

RemovedEXPLANATORY STATEMENT

RemovedThe recast of the Energy Efficiency Directive is a key component of the Fit for 55 package, in order to achieve the goal of reducing greenhouse gas emissions by at least 55% by 2030 and reaching climate neutrality by 2050 in accordance with the European Climate Law. Energy efficiency is the “first fuel”, without which the full decarbonisation of the EU economy cannot be achieved.

RemovedEnergy efficiency is a cost-effective tool with the potential to deliver more than 40% of the necessary greenhouse emission cuts, so as to achieve the international climate and energy goals over the next 20 years. It is therefore an indispensable tool to achieve the Paris Agreement commitments. Scaling up action and investments in energy efficiency will bring various environmental, health, social and economic benefits.

RemovedThe current high dependency on natural gas makes European households and companies vulnerable to rising prices, which has several consequences in particular for households in energy poverty.

RemovedEnergy efficiency can help counteract increasing energy prices by reducing the need to install new expensive power generation or transmission capacity and by reducing pressure on energy resources. It also helps households and companies to become more resistant to sudden increases in the near future and save money on their energy bills.

RemovedBoosting the renovation of buildings will result in more energy efficient but also healthier indoor environments with healthy air temperatures, humidity levels, noise levels, and improved air quality.

RemovedBy reducing overall energy demand, we can reduce dependency on imports of oil, gas and coal. When energy efficiency is increased by 1%, the gas imports decline by 2.6%. Thus, energy efficiency helps the Union to significantly improve its energy security and reaching its objective of becoming more energy independent.

RemovedEfficiency improvements lead to social economic benefits, by boosting economic activity and increasing employment. Measures improving the energy efficiency of cities, buildings and transport systems are labour intensive. As much as 60% of expenditure in home energy efficiency retrofits could be directed towards labour, activating local value chains and boosting the economy.

RemovedIn 2018, the Energy Efficiency Directive was amended as part of the ‘Clean Energy for All Europeans’ package introducing an EU energy efficiency target of at least 32.5% compared to projected energy use in 2030. The sum of national contributions communicated by Member States in their National Energy and Climate Plans (NECPs) falls short of this ambition. This underlines the need for stronger governance and a more effective Energy Efficiency Directive.

RemovedThe Rapporteur welcomes the recast proposed by the Commission and considers it a valid starting point for the legislative process. However, with the urgency of the climate crisis and the multiple benefits offered by energy efficiency, the Rapporteur aims at further strengthening its climate effect, governance and effectiveness.

RemovedAn ambitious and fit for purpose Energy Efficiency Directive

RemovedThe Rapporteur proposes an EU target for energy efficiency that allows for its full cost- effective potential to be exploited. The energy efficiency target should be increased to at least 43% (2007 baseline scenario) for final energy consumption by 2030. This correlates to a 19% target in the 2020 scenario baseline. The proposed target is considered to be cost-effective based on a thorough analysis, while also taking into account the expected potential of increased carbon pricing and socioeconomic benefits.

RemovedThe energy savings obligation has been one of the most impactful elements of the Directive. Therefore, increasing the level of ambition of the EU target necessitates an increase to 2% of the yearly energy savings to be achieved by Member States from 2024 to 2030. The exemplary role of the public sector is further highlighted by increasing the public energy savings obligation to 2% as well.

RemovedEnergy efficiency measures contribute to the efforts to decarbonise the economy, which should be stimulated with this Directive. With the introduction of a carbon factor in the calculation of the national contributions, carbon intensity has to be taken into account. In addition, fossil fuels should not be counted towards the energy savings obligation as proposed by the Commission.

RemovedA strengthened governance with clear milestones

RemovedWe cannot afford to miss the 2030 target. Therefore, the target must be binding for Member States and the formula proposed by the Commission should secure a clear and binding contribution for each Member State and not create any potential delivery gap.

RemovedThe Rapporteur proposes two milestones (2025 and 2027) in order to create a linear trajectory and avoid that Member States postpone the action required to achieve the target.

RemovedThe introduction of a legally binding energy efficiency first principle is an important step acknowledging the important contribution that energy efficiency can deliver. The Rapporteur suggests increasing the scope of the energy efficiency first principle to cover all relevant energy related investment decisions. Additionally, the Rapporteur also proposes the introduction of a common EU methodology with a minimum set of indicators that take into account the wider benefits of energy efficiency.

RemovedTargeting energy efficiency measures on households in energy poverty

RemovedEnergy efficiency measures are a crucial way to help energy poor households. Those who suffer from energy poverty often live in badly insulated homes and have expensive and inefficient heating or cooling systems.

RemovedUnder their energy savings obligation schemes, Member States are required to target a share of their efforts towards energy poor households. The Rapporteur suggests a more robust definition of energy poverty that captures energy poverty in different regions, countries and household types. These parameters should be taken into consideration when the Member States define their energy poor households in their National Energy and Climate Plans.

RemovedDedicated and targeted measures on energy poverty must be taken at the local level. The Rapporteur strengthens the provisions for obligated parties to work closely with local authorities or municipalities, as well as social services and civil society organisations to alleviate energy poverty.

RemovedExtending the scope and depth of renovations with more effective funding schemes

RemovedThe building stock has a big impact on the EU’s climate goals as it is one of the largest consumers of energy. In addition, buildings play a key role in our societies and daily lives. The 3% renovation target for public buildings is therefore an essential element of the Directive.

RemovedThe Rapporteur suggests making the renovation obligation explicitly applicable also to social housing and tertiary buildings, meaning buildings used for the provision of services of general interest. This will boost energy efficiency in buildings and help creating healthy indoor environments for schools, hospitals, nursing homes, sport and cultural facilities.

RemovedThe Rapporteur suggests that the renovation obligation for public buildings leads to deep renovations in order to harvest the highest possible social and economic benefits.

RemovedOvertime, renovations will recuperate their costs. However, this usually comes with high upfront costs for citizens. This is also the case for other energy efficiency measures. It is therefore essential to ensure that the right financing instruments and incentives exist for investors and people to be able to carry out renovations. Robust financial schemes for energy efficiency need to be in place for both public and private funding.

RemovedThe Rapporteur proposes to set up National Energy Funds and to evaluate the volume of effectiveness of current financing schemes.

RemovedStrategic planning for district heating and cooling, utilisation of waste heat and effective data centres

RemovedDistrict heating and cooling has proved to be a cost-efficient system in many European countries. To harvest the potential of those systems, strategic planning is required for municipalities with a population of more than 20.000.

RemovedLow-temperature district heating should be encouraged in order to increase efficiency and increase the possible utilisation of waste heat. Moreover, the Rapporteur suggests the development of strategies for the replacement of old and inefficient heating and cooling appliances in buildings owned or occupied by public bodies with highly efficient alternatives.

RemovedData centres hold a huge potential for waste heat as an affordable heating source for households. The Rapporteur proposes that waste heat from data centres and industrial facilities is utilised wherever this is practicable and technologically feasible.

RemovedIn addition, data centres’ overall energy consumption is expected to increase significantly, as society gets more digitalised. The Rapporteur suggests to further strengthen the provisions of the Directive so that the Commission is empowered to not only establish a Union scheme for rating the sustainability criteria, but also establish minimum performance standards and KPIs as well as a calculation methodology and a timeframe for data centres to meet those standards. This should apply to all data centres with an installed IT power demand equal to or greater than 100 kW.

RemovedEffective energy management for enterprises and households

RemovedEnergy management systems can be effective at a lower threshold than suggested by the Commission. The Rapporteur suggests to lower this threshold so that enterprises with an average annual consumption higher than 18 TJ of energy are obliged to implement an energy management system.

RemovedFurthermore, enterprises with an average annual consumption higher than 3.6 TJ of energy over the previous three years that do not implement an energy management system should be subject to an energy audit.

RemovedImplementation of the recommendations should be mandatory, with the exception of those where the payback period is longer than 4 years.

RemovedTargeted support on technical potential and financing opportunities will help households benefit from energy savings and release the full potential of energy efficiency across European households. The Rapporteur proposes to strengthen the provisions on one-stop-shops for final users in private households in order to benefit from tailored advice and support with a special attention to households in energy poverty.