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EuroACE key messages to Energy Ministers meeting informally in Dublin on 24th April:

An ambitious 2030 climate and energy policy is necessary in order to provide policy predictability to businesses and to stimulate investor confidence. A binding energy efficiency target is essential and a target for energy efficiency improvements to buildings must be a key element of the target given it is the end-use sector with the highest savings potential;

Structural barriers to investment in energy efficient renovation must be removed. The Copenhagen Economics Study released in 2012, recommended that Member State governments could address four structural barriers and hence stimulate investments. These relate to changes to rent regulation, redirecting financial subsidies for fossil fuels, improving public accounting and budget management rules and better risk management instruments for investors;

Now is the best time to initiate ambitious energy efficient renovation programmes as interest rates in the EU are at an historical low and there is significant capacity in the labour market as a result of high unemployment.

EuroACE, the European Alliance of Companies for Energy Efficiency in Buildings, was invited to address the closed working session of the Informal Energy Ministers Meetings in Dublin on the 24th April.

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Today the European Commission publishes a Green Paper addressing a 2030 framework for climate and energy policies. Energy efficiency is good for the economy, good for business, good for employment, and good for EU citizens. Therefore, in its response to this stakeholder consultation, EuroACE will underline the importance of setting a complementary set of 3 binding targets, which includes a binding target for energy efficiency.

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A binding and meaningful 2030 target for energy efficiency is an important milestone towards achieving the EU’s ambitions for the creation of a competitive and sustainable low-carbon economy by 2050. Within that framework, a binding sectoral target for buildings, which are responsible for around 40% of energy consumption in the EU, is essential.

Given the importance of ensuring that there is a long-term, stable policy framework that will build investor confidence in the subject of highly ambitious energy efficiency for buildings and thus encourage a transformation in the construction sector, EuroACE is calling for a binding EU energy efficiency target for 2030 as a key element of the Post-2020 policy debate.

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By setting energy efficiency in buildings as a key funding objective of the ERDF Report (agreed in the July REGI vote), Members of the European Parliament called for an agreement on EU regional spending that will deliver positive benefits in terms of job creation, increased energy savings and reduced regional imbalances across Europe. In the upcoming trilogues, the Council must uphold the Parliament’s agreement to stimulate the energy efficiency market if the EU is to meet its Climate and Growth objectives. This can only be achieved if high percentages of ERDF Funding are targeted at energy efficiency in buildings.

An industrial alliance of 17 companies under the umbrella EuroACE urges the national representatives in the trilogue NOT to reduce the percentages of climate thematic concentration agreed in the European Parliament to 22% in more developed regions and to 12% in less developed region, particularly if the scope is broadened to include ‘sustainable urban transport’.

- Why Limit Sustainable Transport to Urban Areas?

- Why Maintain or Increase the Percentages of 22% and 12%?

- Why Allocate ERDF Funding to Energy Efficiency in Buildings?

- How to Ensure the EU Regions will Reap the Returns from Energy Efficiency in Buildings?

Maintain High Climate Thematic Concentration Percentages aimed at energy efficiency in buildings to stimulate jobs and growth, increase energy savings and reduce regional imbalances in Europe.

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The European Court of Auditors report on the cost-effectiveness of cohesion policy investments in energy efficiency has found that a lack of stringent criteria, which would tie energy efficiency projects to minimum energy performance standards, has resulted in a misuse of EU funding.

Time and time again, we see proof that the energy saving potential of existing buildings in the EU is huge and that undertaking energy efficient renovations at current energy prices can actually pay for themselves. Why then do the results of the Court of Auditors report appear to show a different picture?

“None of the projects we looked at had a needs assessment or even an analysis of the energy savings potential in relation to investments”, said the report's author Harald Wögerbauer. “The member states were essentially using this money to refurbish public buildings while energy efficiency was, at best, a secondary concern.”

This statement highlights the importance of having stringent criteria when granting funds for energy efficiency projects. The potential for energy savings remains, but the opportunity for Europe to achieve its reduction targets through the cohesion policy funding will again be missed unless the assessment criteria for energy efficiency projects in the future funding period are seriously revised.

The misuse of EU funding for aesthetic refurbishments rather than energy efficiency can be explained by three main reasons:
- Projects devised before EU Energy Efficiency Policy elaborated
- Lack of energy efficiency criteria when projects were approved
- Failure to look at non-quantifiable co-benefits (eg on health) in ex-post assessment
 

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The Energy Efficiency Directive (EED 2012/27/EU) is the headline piece of legislation on which the EU is pinning its hopes for the achievement of the 2020 energy efficiency target. If its provisions are ambitiously and fully implemented, then it will contribute about 75% of the energy efficiency improvements needed to reach the 2020 target.

Within the text, there are several elements that relate to buildings. To ensure that the potential of energy efficiency in the built environment is reached, EuroACE has compiled in this paper, its “TOP 10” issues for implementation of the EED. These are given in descending order of priority as seen from the point of view of the member companies of EuroACE in the expectation that our input can help in the implementation work of this important Directive.
 

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EuroACE, the European Alliance of Companies for Energy Efficiency in Buildings, strongly favours reduced VAT rates for the renovation of existing buildings and calls on the European Commission to maintain this measure in its current review of EU VAT legislation.

In line with its Climate Objectives and Growth Agenda, the EU has placed requirements on buildings through the Energy Performance of Buildings Directive and through the recently adopted Energy Efficiency Directive. The use of reduced VAT rates facilitates the application of these Directives by stimulating labour intensive renovation activities across the EU.

Increasing renovation rates from the current average of about 1.2% to about 3%, would not only help the EU to achieve its climate objective goals but would also provide a wide-range of multiple benefits in terms of job creation, lower energy bills and reduced fuel poverty.
 

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It’s that time of year again, the time of New Year’s resolutions. Europeans should be aware of the benefits of investing in energy efficiency – for our environment, for our energy independence, and for our economy – public as well as private. As we enter into 2013, EuroACE – the European Alliance of Companies for Energy Efficiency in Buildings, is calling on EU Member States to firmly resolve to tap the enormous energy efficiency potential of buildings by securing a swift, complete and properly enforced implementation of the recast Energy Performance of Buildings Directive (EPBD).

On 9th January 2013, the Member States of the EU will pass the deadline for implementation of many of the key provisions of the recast Energy Performance of Buildings Directive (EBPD) and it is crucial for the EU that these provisions are ambitiously and fully implemented.

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EuroACE responds to several Public Consultations:

- EuroACE response to the EC Review of the Existing Legislation on VAT Reduced Rates

- EuroACE response to the EIB Review of its Energy Lending Policy

(Draft report by Niki Tzavela’s 2012/2103(INI)

EuroACE supports the Rapporteur’s views that investing in energy efficiency is a ‘no-regrets’ option. Reinforcing the key role which energy efficiency must play in the EU’s needed energy transition towards a competitive low carbon and low energy future with targeted amendments in this Report is crucial. If the EU is to unlock the huge energy savings potential and economic benefits which currently lie dormant in the EU’s low-performing building stock, then buildings must be considered a high priority.

The ITRE report on the Energy Roadmap 2050 must reflect that Energy Efficiency is pivotal to the future of our economies. It should also facilitate improved consistency with the recently adopted Energy Efficiency Directive (EED). This will be done through:

1. Calling the Commission to model a scenario which combines high levels of energy efficiency and renewables as part of the post 2020 preparatory work. This scenario would provide the most viable route to energy security, decarbonisation and competitiveness.

2. Strengthening the importance of Energy Efficiency through the creation of a sub-section on ‘Energy Efficiency’, ahead of the sub-section on Renewable Energy. Indeed, achieving high levels of energy efficiency are crucial to meeting the renewable energy targets.

3. Clarifying the strategic importance of the building sector for reaching long term energy goals

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