EnergyEnergy

Financing Energy Efficiency

Philip Lowe

Director GeneralDirectorate-General for Energy

EnergyEnergy

The EU 20-20-20 targets by 2020

Reduce greenhousegas emissions by 20%

Increase share of

renewables to 20%

100%

Reduce energyuse by 20%

-10%Current

trend to 2020

-20%

20%

Current trend

to 2020

Current trend

to 2020

EnergyEnergy

Despite untapped savings potentials across all major sectors

Savings expected to be achieved with already existing measures

Remaining saving potential to be addressed with new measures

Industry Commercial Residential Transport

2%

5%

16%

11%

Econ

om

ic p

ote

nti

al [M

toe]

20

40

60

80

100

Sectors covered by EED

EnergyEnergy

Policy response: a new Energy Efficiency Directive

ServicesEnergysupply

House-holds

Industry

Generalpromotionalmeasures

newEED

Sectoral measures

Monitoring & Reporting

Indicative national

EE targets

Publicsector

EnergyEnergy

…and beyond 2020?

• Roadmap 2050

• Explore routes towards a low-carbon energy system by 2050

• Give more certainty to governments and investors

• Energy efficiency is a ‘no-regrets’ option• Well-functioning energy markets are key

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What is the ‘investment’ need?

• Energy savings potential across sectors requires investment of around 850 billion € (2011-2020)

• Around 85 billion € per year

• Buildings take the lion’s share of around 60 billion € per year

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What is currently available at EU level?

• Cohesion policy funds (2007-2013):• 4,6 billion € for energy efficiency

• Intelligent Energy Europe Programme (2007-2013):• 735 million € for ‘soft’ energy efficiency/renewables projects

• ELENA Facility:• 97 million € for technical assistance to mobilise investments

• European Energy Efficiency Fund (EEE-F):• 265 million € for investments into mature, bankable

efficiency/renewables projects• 20 million € for technical assistance

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What will be available at EU level?

• Next Multi-Annual Financial Framework (2014-2020) proposals:

• Cohesion funding to allocate some 17 billion € to energy efficiency and renewable energy (doubling current allocations)

• Horizon 2020: 6.5 billion € is to be allocated to research and innovation in "Secure, clean and efficient energy"

EnergyEnergy

What works?

• National funding programmes

• KfW “energy efficient building and renovation” programmes in Germany

• Every Euro invested returned 2-5 Euros to state coffers, mainly through job creation!

Year 2008 2009 2010

Credit volume (mEUR) 5.583 9.015 8.860

Promoted investment (mEUR) 12.181 18.597 21.535

Promoted jobs 191.000 298.000 345.000Source: Impact on public budgets of KfW promotional programmes in the field of "energy-efficient building and rehabilitation", Research Centre Jülich, October 2011

EnergyEnergy

What works?

• Energy performance contracting

• Berlin has made use of energy performance contracting since 1996

• Over 1300 public buildings have been upgraded

• Cost savings of about 10,5 million € - i.e. a quarter of the energy cost of the buildings involved

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What works?

• Energy saving obligations in Member States• Cost of delivered savings lower than price of

energy

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What do we need going forward?

• Engagement, especially of the financial sector, to:

• Convince policy makers

• Assist in policy development

• Support leveraging of public money

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What could we do to help?

• Commission to launch consultation on financial support for energy efficiency in buildings

• How could access to financing be improved?

• What is the role of the EU regulatory framework?

• How to remove important barriers?