European CommissionPhilip Lowe, Director General, DG ENEREuropean Roundtable – Concert NobleBrussels, 16 November 2010

EUROPEANCOMMISSION

Financing energy efficiency in

European buildings

The 20-20-20 EU policyby 2020

Greenhousegas levels

Energyconsumption

Renewables inenergy mix

-20% -20%100%

+20%

2/14

Multiple needs for action Face climate change

3/14

Face economic crisis

Care for affordability

Care for security

New strategies on EU level

Energy efficiency is key priority on EU level

“Energy 2020”European Strategy for Energy

New Energy Efficiency Plan European Strategy for Energy Efficiency

Energy Efficiency for European buildings: Part of the new EEP

Key date: 04 Feb 2011: EU summit on Energy

4/14

New Energy Efficiency Plan (EEP)

New policy concepts in the EEP:

reach our 20% saving objective

mainstream energy efficiency in all relevant policy areas

build up commitment towards further energy efficiency up to and beyond 2020

EEP will address energy saving potential in all sectors (Energy sector, Buildings, Transport, Industry etc.)

5/14

EPBD: legislation on EE for buildings

Buildings use ~40 % of EU’s energyBuildings responsible for ~36% of CO2-emissions

Cost-effective energy savings potential: ~30% in 2020

EPBD: All MS declared full transpositionCrucial: Practical implementation of EPBD

Problem: Existing building stockRecast of EPBD: 1000m2-threshold abolished: EU building stock now completely touched

6/14

Value of buildings: good performing >>> bad performing

EPBD: legislation on EE for buildings

7/14

Energy

Class AEnergy

Class A

Energy Performance

Certificate

How to boost large scale retrofit?

Higher renovation rates of the existing building stock would speed up the process

Barriers: high upfront investment costs for renovations low level of professional training lack of information

Possible answers: financial support targeted technical assistance

8/14

EU funds EE for buildings

9/14

Existing EU Funds financing EE for buildings:

• EU Cohesion Policy Fund• “ELENA” - Commission in cooperation with EIB• EEPR funds• ICT Policy Support Programme 2010• Seventh Research Framework Programme• 2020 European Fund for Energy, Climate Change

and Infrastructure• EBRD funds

Learn from examples

10/14

European Structural and Cohesion funds

• Budget (2007-2013): EUR 308 billion (35,7% of total EU budget)

• Purpose: support of regional growth and job creation

• e.g. ERDF: up to 4% of total ERDF could be used on Energy Efficiency and renewable energy in existing housing

• Problem: Only small percentage (<20%) is being used by MS for Energy Efficiency measures

• Question: Why do MS not use these existing possibilities for renovation? Doesn’t EU encourage MS enough?

Learn from examples

11/14

“ELENA” (European Local Energy Assistance)

• Budget: EUR 15 million/a• Purpose: support of local and regional authorities• Success: leverage effect could be produced

(EUR 2 Million ELENA grant, mobilizing ~EUR 500 Million in investments)

• Problem: large-scale EE/RES-programmes needed

• Question: How to find scaleable and replicable investment models?

EU funds on EE to be developed

12/14

EEPR – “unspent funds”

• Budget: ~ EUR 146 million • new fund out of the unspent money of the EEPR• Purpose: make projects on Energy Efficiency and

Renewable Energy projects bankable • Problem: How to tackle the upfront investments• Question: Given the stretched budgetary situation

of many municipalities, could it be a possibility to support also Public Private Partnerships (e.g. Energy Performance Contracting)

What could help to speed up?

13/14

Statements to be discussed:

• Should public sector lead by example in the field of Energy Efficiency on buildings?

• Is it a lack of information/guidance that MS are not sufficiently investing in Energy Efficiency though it is a cost-effective way to mitigate climate change and create new jobs?

• Should the EU play a stronger role by promoting the EU funds financing EE for buildings?

Thank you!

14/14