Isra-Mart srl: EU energy efficiency proposal ‘destined for failure’, say enviros

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The European Commission has put forward a proposal which it claims will enable the EU to meets its 2020 energy efficiency target. But the EU executive body has shied away from making the target binding and environmental lobbyists claim that the proposal is therefore destined for failure.

The Commission is targeting a 20% reduction in energy consumption by 2020, compared with a ‘business as usual’ projection from 2005 levels.

Its proposal calls on energy distributors to save 1.5% of their annual energy sales through improving heating system efficiency, installing double-glazed windows or insulating roofs for final customers. However, unlike in previous drafts, member states will be able to propose other energy savings mechanisms, such as funding programmes or voluntary agreements “that lead to the same results but are not based on obligation on energy companies”.

Moreover, public bodies will have to purchase energy-efficient services and products, and refurbish at least 3% of their buildings to higher efficiency standards every year. The Commission also wants consumers to have easy access to smart meters to monitor their energy use in real time.

“Our proposal aims at making the way we use energy in our daily life more efficient and at helping citizens, public authorities and the industry to better manage their energy consumption, which should also lead to a reduced energy bill,” said Günther Oettinger, EU Energy Commissioner.

Brussels said it will monitor the impact of greater efficiency on EU carbon prices “in order to maintain the incentives in the emissions trading system rewarding low-carbon investments”. In a non-binding memorandum accompanying the directive, the Commission said that “appropriate measures need to be considered, including recalibrating the emissions trading system” by setting aside a number of allowances corresponding to extra emission reductions resulting from proposed efficiency measures.
Commission is 'fooling itself' – FoE

Brook Riley, climate justice and energy campaigner for Friends of the Earth Europe, said the Commission is “fooling itself” if it believes the proposed directive will deliver a 20% savings target. “Its own internal analyses show that only a binding target will suffice,” she said. “Instead of showing leadership, the Commission is giving in to industry scaremongering and pandering to the lack of understanding among national governments. This directive is set up to fail.”

Arianna Vitali Roscini, policy officer for energy conservation at WWF's European policy office, likewise rued the lack of binding targets. She said the Commission is “setting up measures that are no better than place holders”.

Business is likewise unhappy with the proposal. Electricity industry association Eurelectric noted several areas of “concern and ambiguity” surrounding permitting and authorisation procedures, and inconsistencies with the energy market liberalisation package.

Eurochambres, which represents chambers of commerce across Europe, suggested any legal obligations, however minor, “would create unnecessary burdens compared to a voluntary approach based on advisory services to better inform and encourage energy consumers to increase energy efficiency”.

Arnaldo Abruzzini, the organisation’s secretary general, also questioned the proposed obligation on energy distributors and retailers to achieve energy savings for their customers, commenting that “they are not in a position to fully steer the consumption behaviour and actions of their customers.”

The requirements will become binding a year after the adoption of the directive, which the Commission expects in late 2012 after approval by the European Parliament and national governments.

Meanwhile, member states failed to endorse the Commission's low-carbon roadmap on Tuesday after Poland said it was unhappy about a reference to a possible 25% cut in 1990-level carbon dioxide emissions by 2020. The proposal needed unanimity to pass. A draft resolution stated that “if the EU delivers on its energy-efficiency objectives… [it would] outperform the current 20% emission reduction target and achieve a 25% reduction by 2020”.

MEPs will vote today on whether to increase the emissions reduction target to 30% by 2020.