Many of the environmental threats in Eastern Europe are directly related to energy use. It is in Eastern Europe's self-interest to adopt national energy policies that increase efficiency as well as reduce carbon dioxide, the major greenhouse gas produced during the burning of fossil fuels such as coal, oil, and natural gas. Energy efficiency will free capital from energy production and make it available for other productive uses. In Poland, for example, coal production now requires double the annual investment that it did in the early 1970s. Almost a quarter of all steel produced in Poland is consumed by the energy sector, creating a vicious circle of industrial production for the sake of increased energy supply, which in turn feeds more of the inefficient industrial production that is required by the increased demand for energy.
Energy efficiency offers the single most effective means to reduce carbon dioxide emissions.
It is a policy instrument that can achieve the twin goals of economic development and environmental protection. The capital and other resources that these countries invest in energy production could be reduced by substantial amounts if their energy-intensity was reduced to that of the economies of the European Community countries. Scenarios for the future Three scenarios were created for future energy supply and demand in Central and Eastern Europe by using the EPA energy end-use model. Data were drawn from a series of detailed energy studies for the FSU and Eastern Europe. The user also provides initial base year activity levels for each sector.