Communication from the Commission - Action Plan for Energy Efficiency: Realising the Potential {SEC(2006)1173} {SEC(2006)1174} {SEC(2006)1175}
Date: 2006-10-19
Institutions: European Commission
Subjects: competitiveness, energy consumption, energy policy, energy supply, environmental protection, impact study, research and development, sustainable development

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 19.10.2006 
COM(2006)545 final 

COMMUNICATION FROM THE COMMISSION 

Action Plan for Energy Efficiency: Realising the Potential 

{SEC(2006)1173} 
{SEC(2006)1174} 
{SEC(2006)1175} 

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TABLE OF CONTENTS 

Introduction .................................................................................................................. 3 

Objective and scope ..................................................................................................... 4 

Savings potential and impacts...................................................................................... 5 

Context ......................................................................................................................... 7 

Policies and measures .................................................................................................. 8 

Dynamic energy performance requirements for energy-using products, buildings and 
energy services ............................................................................................................. 9 

Improving energy transformation .............................................................................. 13 

Moving on transport................................................................................................... 14 

Financing energy efficiency, economic incentives and energy pricing ..................... 16 

Changing energy behaviour ....................................................................................... 17 

International partnerships........................................................................................... 18 

Conclusions and next steps ........................................................................................ 19 

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2. 

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5.1. 

5.2. 

5.3. 

5.4. 

5.5. 

5.6. 

6. 

Annex 

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1. 

INTRODUCTION 

The  European  Union  is  facing  unprecedented  energy  challenges  resulting  from  increased 
import dependency, concerns over supplies of fossil fuels worldwide and a clearly discernable 
climate change. In spite of this, Europe continues to waste at least 20% of its energy due to 
inefficiency.  The  EU  can  and  must  lead  the  way  in  reducing  energy  inefficiency,  using  all 
available policy tools at all different levels of government and society. 

The  direct  cost  of  our  inability  to  use  energy  efficiently  amounts  to  more  than  100  billion 
euros  annually  by  20201.  Realising  our  savings  potential  in  a  sustainable  manner  is  a  key 
element  in  Community  energy  policy.  It  is  by  far  the  most  effective  way  concurrently  to 
improve  security  of  energy  supply,  reduce  carbon  emissions,  foster  competitiveness  and 
stimulate  the  development  of  a  large  leading-edge  market  for  energy-efficient  technologies 
and  products.  This  remains  equally  true  when  the  investment  costs  required  to  achieve  this 
savings  potential  are  taken  into  account.  The  need  for  a  strengthened  policy  aimed  at  more 
energy  efficient  consumption  and  production  patterns  was  underlined  in  the  Commission 
Green Paper on "A European Strategy for Sustainable, Competitive and Secure Energy”2. The 
2006 Spring European Council3 called for the adoption as a matter of urgency of an ambitious 
and  realistic  Action  Plan  for  Energy  Efficiency,  bearing  in  mind  the  EU  energy  saving 
potential of over 20% by 2020.  

Realising this potential will require a significant shift in our approach to energy consumption. 
Europe will need to more than double the rate of improvement in energy efficiency compared 
to  recent  years.  A  paradigm  shift  is  required  to  change  the  behavioural  patterns  of  our 
societies, so  that we  use  less  energy  while enjoying the same quality of life. Producers  will 
have  to  be  encouraged  to  develop  more  energy-efficient  technologies  and  products,  and 
consumers will need stronger incentives to buy such products and use them rationally. Using 
best available technology will be of key importance. While the objective of this Action Plan 
can be achieved using existing technology, it is however evident that the uptake of innovative 
technologies emerging during the lifetime of the Action Plan should equally be encouraged.  

Realising  the  20%  potential  2020,  equivalent  to  some  390  Mtoe,  will  result  in  large  energy 
and environmental benefits. CO2 emissions should be reduced by 780 Mt CO2 with respect to 
the baseline scenario, more than twice the EU reductions needed under the Kyoto Protocol by 
2012. Additional investment expenditure in more efficient and innovative technologies will be 
more than compensated by the more than € 100 billions annual fuel savings. 

The present document sets forth such an Action Plan with a view to realising our potential and 
maintaining Europe’s position as one of the most energy-efficient regions in the world. The 
policies and measures in the Plan are based on consultations on the Green Paper on Energy 
Efficiency4.  Most  of  these  have  been  specifically  supported  by  stakeholders  participating  in 
the  consultation  process.  The  main  points  raised  in  the  analysis  and  the  responses  to  the 

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390 Mtoe at USD 48/barrel net of taxes. 
COM(2006)105 final of 08.03.2006. 
Presidency Conclusions of 23/24 March 2006. 7775/1/06 REV1 of 18.05.2006. 
Green Paper on Energy Efficiency, “Doing More with Less”, COM (2005) 265 final of 22.06 2005. A 
total  of  241  responses  calling  for  action  in  all  energy  sectors  were  received  during  the  public 
consultation  process  on  this  Green  Paper.  (Commission  Staff  Working  Document  (SEC(2006)693  of 
29.05.2006)). 

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questions  of  the  Green  Paper  on  Energy  Efficiency  referred  to  the  need  to  improve  the 
availability  and  quality  of  information  on  energy  consumption  and  on  available  energy- 
efficient technologies and techniques. Energy efficiency in the building sector was identified 
as a top priority. Improving energy efficiency in the transport sector was considered of special 
importance,  since  this  sector  consumes  the  bulk  of  oil  products  and  has  the  fastest  growing 
emission  profile.  In  industry,  a  significant  potential  to  reduce  energy  demand  and  CO2 
emissions  was  highlighted.  Responses  called  as  well  for  the  use  of  a  wide  range  of  policy 
instruments at national, regional and local levels (i.a. wider use of targeted and coherent tax 
measures, internalising external costs, full support of Member States through National Energy 
Efficiency  Action  Plans,  non-binding  guidelines,  labels  and  targets,  and  public-sector 
leadership in procurement). Binding minimum efficiency requirements for automobiles were 
also called for.  

In  addition,  the  European  Parliament’s  Opinion  on  the  Green  Paper5  sets  forth  over  100 
recommendations.  These,  too,  are  very  much  in  line  with  proposals  in  the  Action  Plan. 
Contributions  and  support  for  EU's  energy  saving  potentials  of  20%  by  2020  were  received 
from  a  High  Level  Group  on  competitiveness,  energy  and  the  environment  set  up  by  the 
Commission and bringing together relevant stakeholders.6 

2. 

OBJECTIVE AND SCOPE 

This Action Plan outlines a framework of policies and measures with a view to intensify the 
process  of  realising  the  over  20%  estimated  savings  potential  in  EU  annual  primary  energy 
consumption by 2020.7 The Plan lists a range of cost-effective measures8, proposing priority 
actions  to  be  initiated  immediately,  and  others  to  be  initiated  gradually  over  the  Plan's  six-
year period. Further action will subsequently be required to reach the full potential by 2020.  

The Action Plan is intended to mobilise the general public and policy-makers at all levels 
of  government,  together  with  market  actors,  and  to  transform  the  internal  energy 
market  in  a  way  that  provides  EU  citizens  with  the  globally  most  energy-efficient 
infrastructure,  buildings,  appliances,  processes,  transport  means  and  energy  systems. 
Given the importance of the human factor in reducing energy consumption, this action 
plan also encourages citizens to use energy in the most rational manner possible. Energy 
efficiency is about informed choice by individuals, not just about legislation. 

5 
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, 

to 

energy 

energy 

European Parliament Report P6_A(2006)0160 of 03.05.2006. 
The  first  report  of  the  High  Level  Group  was  dated  2  June  2006  ("Contributing  to  an  integrated 
approach on competitiveness, energy and the environment policies - Functioning of the energy market, 
access 
the  EU  Emissions  Trading  Scheme"; 
http://ec.europa.eu/enterprise/environment/hlg/hlg_en.htm). This Report specifically addressed a series 
of recommendations to improve energy efficiency. 
Compared to baseline. See COM(2005)265 final of 22.06 2005.  
While the exact interpretation of cost-effectiveness in Community legislation on energy efficiency has 
deliberately  been  left  open  to  Member  States,  the  lowest  life-cycle  cost  (LCC)  method  for  meeting 
foreseen energy investments (on the energy supply or demand side) is generally regarded as the most 
straightforward and easy-to-interpret measure of economic evaluation.  

efficiency  and 

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3. 

SAVINGS POTENTIAL AND IMPACTS 

Figure 1 below shows how energy efficiency improvements have reduced EU energy intensity 
during  the  past  35  years.  It  demonstrates  that  by  2005,  “negajoules”  (or  avoided  energy 
consumption through savings) have become the single most important energy resource.  

Development of the primary energy demand  and of “negajoules”
 ( "negajoules" : energy savings calulated on the basis of 1971 energy intensity) 

3000

2500

2000

e
o
t
M

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Source Enerdata 2006

Negajoules
Biomass
Other electricity
Nuclear
Gas
Oil
Coal

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Figure 1 

Even though energy efficiency has improved considerably in recent years, it is still technically 
and economically feasible to save at least 20% of total primary energy by 2020 on top of what 
would  be  achieved  by  price  effects  and  structural  changes  in  the  economy,  natural 
replacement of technology and measures already in place. Partly because of its large share of 
total  consumption,  the  largest  cost-effective  savings  potential  lies  in  the  residential 
(households) and commercial buildings sector (tertiary sector), where the full potential is now 
estimated  to  be  around  27%  and  30%  of  energy  use,  respectively.  In  residential  buildings, 
retrofitted  wall  and  roof  insulation  offer  the  greatest  opportunities,  while  in  commercial 
buildings,  improved  energy  management  systems  are  very  important.  Improved  appliances 
and  other  energy-using  equipment  still  offer  enormous  energy  savings  opportunities.  For 
manufacturing industry, the overall potential is estimated to be around 25%, where peripheral 
equipment such as motors, fans and lighting9 offer the most important savings potential. For 
transport,  a  similar  full  savings  potential  of  26  %  is  estimated,  a  figure  which  includes  a 

9 

20% of global electrical energy production today is used for lighting. According to studies, the adoption 
of high efficiency Light Emitting Diode (LED) technology, already available on the market, could by 
2015 save 30% of today's consumption for general lighting and 50% by 2025. 

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significant impact from shifting to other modes of traffic10, in line with the Mid-term review 
of the White Paper on transport.11  

Sector 

Households 
(residential)  

Commercial 
buildings 
(Tertiary)  

Transport 

Manufacturing 
Industry 

Energy 
consumption 
(Mtoe) 2005 

Energy Consumption 
(Mtoe) 2020 (Business 
as usual) 

Energy Saving 
Potential 2020 
(Mtoe) 

Full Energy Saving 
Potential 2020 (%) 

280 

157 

332 

297 

338 

211 

405 

382 

91 

63 

105 

95 

27% 

30% 

26% 

25% 

Figure 2: Estimates for full energy saving potential in end-use sectors12 

On  the  basis  of  this  full  potential  scenario  for  end-use  sectors,  the  additional  savings  from 
new policies and measures and from strengthening existing ones are realistically estimated to 
be up to 20% (1.5% or 390 Mtoe per year) by 2020 (including savings in end-use sectors and 
at  the  level  of  energy  transformation).  These  are  in  addition  to  improvements  in  energy 
intensity  of  1.8%  or  470  Mtoe  per  year  due  to  expected  structural  changes,  the  effects  of 
previous  policies  and  autonomous  changes  brought  about  by  natural  replacement  of 
technology,  energy  price  changes,  etc.  These  effects  are  illustrated  in  figure  3,  where 
"previous  policy"  refers  to  legislation  at  EU  level  that  has  already  been  adopted  and 
implemented;  "new  policy"  means  measures  currently  being  implemented  and  further 
strengthened  by  this  Action  Plan;  "new  policy  beyond  directives"  refers  to  policies  and 
measures developed in this Action Plan.  

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Wuppertal  Institute  2005,  based  on  Mantzos  (2003)  and  “Economic  Evaluation  of  Sectoral  Emission 
Reduction Objectives for Climate Change", ECOFYS, March 2001. Additional information available in 
Final Report of Impact Assessment (CLWP: 2006/TREN/032), Appendix 4. July 2006.  
Communication  from  the  Commission  to  the  Council  and  the  European  Parliament,  "Keep  Europe 
moving – Sustainable mobility for our continent. Mid-term review of the European Commission's 2001 
Transport White Paper"; COM(2006)314 final. 
Source: European Commission, EU-25 Baseline Scenario and Wuppertal Institute 2005.  

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Figure 3: Annual improvements in energy intensity 13 

The  actions  set  forth  in  the  Action  Plan  represent  a  coherent  and  interlinked  package  of 
measures  that  will  put  the  EU  on  track  towards  achieving  at  least  the  20%  cost-effective 
energy  savings  potential  by  2020.  They  will  provide  benefits  in  terms  of  environmental 
improvement,  reduced  imports  of  fossil  fuel,  strengthened  competitiveness  of  the  EU 
industry,  increased  export  opportunities  for  new,  energy-efficient  technology  and  positive 
employment  effects.  They  also  represent  an  ambitious  goal,  exceeding  the  average  annual 
energy intensity improvements from previous decades by a considerable margin. 

4. 

CONTEXT 

This  Action  Plan  highlights  key  proposals  and  places  them  in  a  political  context.  These 
proposals  take  into  account  recently  adopted  legislation  on  EU  and  other  levels,  which  has 
already contributed to making Europe a world leader in energy efficiency. The Commission 
furthermore  proposes  10  priority  actions  covering  all  energy  sectors  to  be  initiated 
immediately  and  implemented  as  soon  as  possible  for  maximum  effect.  Member  States, 

13 

1.5%  primary  energy  improvement  is  in  addition  to  a  1.8%  annual  “business  as  usual”  trend  in 
improved  energy  intensity,  consisting  of  the  impact  on  efficiency  of  previous  Community  legislation 
(0.35% annually), and other effects (0.6% in structural changes, such as industrial developments, and 
0.85%  “autonomous  improvement”,  such  as  normal  replacement  of  technology  stock,  annually). 
Together, these will reduce energy intensity by 3.3% annually, holding the average annual increase in 
energy  consumption  to  0.5%,  assuming  an  average  GDP  growth  of  2.3%  annually.  The  reference  in 
Figure  3  to  Directive  2006/32/EC  is  to  illustrate  the  9%  savings  target  for  the  period  2008  –  2016. 
Alongside  the  potentials  for  energy  efficiency  at  the  point  of  consumption,  important  savings  of 
approximately 20% can be made by preventing energy wastage during conversion and transmission of 
energy. 

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regional and local authorities and other stakeholders are called upon to take complementary 
measures to reinforce and strengthen this implementation.  

The  annex  contains  a  comprehensive  list  of  measures,  along  with  a  timetable.  A  full  list  of 
proposed  measures  together  with  further  information  on  energy  consumption,  savings 
potentials,  initiators  and  implementers,  as  well  as  impacts,  is  provided  in  an  accompanying 
Commission  Staff  Working  Document  entitled  “Analysis  of  the  Action  Plan  for  Energy 
Efficiency”14.  An  Impact  Assessment  Report  and  Executive  Summary  thereof  are  also 
provided15.  

5. 

POLICIES AND MEASURES 

Energy efficiency is first and foremost a matter of controlling and reducing energy demand, 
although  targeted  actions  are  required  for  both  energy  consumption  and  energy  supply. 
“Business as usual” is not a sustainable response.  

Full  implementation  and  enforcement  of  the  existing  and  future  regulatory  frameworks  is 
essential. The Commission has therefore rigorously pursued – through legal means – proper 
transposition  and  application  of  Community  law  affecting  energy  efficiency,  including 
legislation on the internal energy market, buildings, and appliances.  

Targeted sectoral and horizontal measures are included in the Action Plan as described below. 
First, the setting of dynamic energy performance requirements for a wide range of products, 
buildings  and  services  are  necessary.  Targeted  instruments  are  also  needed  for  the  energy 
transformation sector to improve the efficiency of both new and existing generating capacity 
and to reduce transmission and distribution losses. For the transport sector, a comprehensive 
and  consistent  approach  targeting  different  actors,  including  motor  and  tyre  manufacturers, 
drivers, oil/fuel suppliers and infrastructural planners, is necessary.  

Secondly,  appropriate  and  cost-reflective  price  signals  are  essential  for  improving  energy 
efficiency  and  for  overall  economic  efficiency.  At  the  same  time,  improved  financing  tools 
and  economic  incentives  targeting  all  sectors,  implemented  in  full  compliance  with  the 
applicable  State  aid  rules,  are  required.  Increased  awareness  and  behavioural  change  are 
called for from  the  outset.  Energy  efficiency issues also urgently need to be  addressed on a 
global level, using international partnerships and including for example, tradable goods such 
as appliances.  

Innovation  and  technology  also  play  a  crucial  role.  The  forthcoming  Strategic  Energy 
Technology  Plan,  planned  for  adoption  in  2007,  will  provide  a  coherent  long-term  energy 
technology outlook and will be instrumental in spurring further technology-driven efficiency 
gains  throughout  society.  Special  attention  should  be  paid  to  the  opportunities  offered  by 
information and communication technologies (ICT).16 

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SEC(2006)1173. 
SEC(2006)1174 and SEC(2006)1175. 
The  wide-spread  use  of  ICT  equipment  calls  for  a  significant  improvement  in  efficiency  of 
semiconductors  and  battery  technologies.  The  Commission  will  support  research  in  these  areas  under 
the  Seventh  Research  and  Development  Framework  Programme,  as  announced  in  the  first  annual 
Report on the European Information Society (COM(2006)215). 

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Only  if  all  of  these  measures  are  put  in  place  will  the  potential  be  fully  realised.  This  will 
require  additional  resources  devoted  to  energy  efficiency  at  all  levels,  including  in  the 
Commission.  

The  savings  potentials  and  the  likely  impacts  of  some  measures  are  larger  or  more  evident 
than for others, as is illustrated in the Impact Assessment Report. Proposed measures in the 
Action Plan will also be subject to a thorough individual impact assessment. Monitoring, and 
updating of the Action Plan are necessary and a mid term review will be carried out in 2009 
using,  inter  alia,  national  Energy  Efficiency  Action  Plans17  and  Strategic  EU  Energy 
Reviews. 

5.1. 

Dynamic  energy  performance  requirements 
buildings and energy services 

for  energy-using  products, 

A  comprehensive  framework  of  directives  and  regulations  to  improve  energy  efficiency  in 
energy-using  products,  buildings  and  services  is  in  force  in  Community  law.  These  include 
the Eco-Design Directive,18 the Energy Star Regulation,19 the Labelling Directive20 and its 8 
implementing Directives, the Directive on Energy End-Use Efficiency and Energy Services21 
and  the  Energy  Performance  of  Buildings  Directive.22  The  Commission  will  encourage 
Member States towards an ambitious implementation and enforcement of these instruments to 
ensure  the  rapid  development  of  a  European  internal  market  for  energy-efficient  goods  and 
energy  services  and  a  lasting  market  transformation.23  Where  there  is  scope  for  additional 
legislative and supporting measures to be taken to strengthen and accelerate the development 
of this market, these measures will also be given priority.  

(1)  Making products more energy efficient 

Consumers do not take into account to a sufficient degree the economic benefits of energy-
efficient  appliances  and  equipment.  Consumers'  buying  decisions  are  however  crucial  to 
successful results. Efficiency should become a key element in the consumers' decisions. The 
Commission  considers  the  use  of  dynamic  energy  efficiency  standards  combined  with 
performance  rating  and  labelling  schemes  a  powerful  tool  for  informing  consumers  and 
transforming the market towards energy efficiency.  

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Required  by  Directive  2006/32/ECon  energy  end-use  efficiency  and  energy  services,  OJ  L  114  of 
27.4.2006, p.64. 
OJ L 191, 22.7.2005, p. 29. 
(EC) N° 2422/2001 
Directive 92/75/EC, OJ L 297, 13.10.1992, p. 16-19. 
OJ L 114, 27.4.2006, p. 64.  
OJ L 1, 4.1.2003, p. 65.  
In the area of energy efficiency legislation, there are presently infringement procedures open against 20 
Member States, both for non-notification and bad application.  

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Priority Action 1 

Appliance and equipment labelling and minimum energy performance standards 

Updated  and  dynamic  labelling  and  minimum  energy  performance  standards  for  appliances 
and  other  energy-using  equipment  will  be  developed  as  from  2007  on  the  basis  of  the 
Labelling  and  the  Eco-design  Directives.  Special  attention  will  be  devoted  to  standby  loss 
reduction.  The  Commission  will  start  adopting  such  requirements  for  14  priority  product 
groups with a view to having all of them approved by the end of 2008. The Commission will 
revise  the  Framework  Directive  92/75/EC  on  labelling  to  reinforce  its  effectiveness.  The 
existing labelling classifications will be upgraded. 

The Commission will begin, in 2007, the process of adopting minimum energy performance 
standards  (eco-design  requirements)  in  the  form  of  implementing  Directives  for  14  priority 
product  groups  including  boilers,  water  heaters,  consumer  electronics,  copying  machines, 
televisions,  standby  modes,  chargers,  lighting,  electric  motors  and  other  products,  in 
accordance  with  the  time  table  below.  These  Directives  will  also  include,  to  the  extent 
possible,  indications  of  future  requirements,  e.g.,  5  years  later,  in  order  to  prepare 
manufacturers for the new requirements in the design cycle. The Commission will ensure that 
appropriate measuring methods will be developed on time through CEN/CENELEC or other 
appropriate means. Products that do not meet the agreed minimum requirements may not be 
put on the market. 

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The Commission will furthermore in 2007 adopt a Work Plan to realise by 2010 an internal 
market for additional energy–using products. This should ensure that products that consume a 
significant part of total energy consumption will be covered by EU-wide minimum standards 
and  performance  rating/labelling,  on  the  basis  of  the  Eco-design  Directive  and/or  the 
Labelling  Directive  (based  on  the  least  life-cycle  cost  methodology  embedded  in  the 
directive). By 2010 a significant share of these products will be covered. Information will be 
made  available  to  manufacturers  regarding  possible  future  revisions  of  performance 
requirements. 

To increase the informational value of the EU labelling scheme, the Commission will revise, 
beginning  in  2007,  Framework  Directive  92/75/EC  to  enlarge  its  scope,  if  this  is  shown  to 
reinforce  its  effectiveness,  to  include  other  energy-using  equipment,  such  as  commercial 
refrigeration.  The  existing  labelling  classifications  will  be  upgraded  and  re-scaled  every  5 
years or when new technological developments justify it, based on eco-design studies, with a 
view to reserve A-label status for the top 10 – 20 % best performing equipment. 

At  Member  State  level,  the  eco-design  requirements  and  the  labelling  scheme  need  to  be 
implemented, monitored and enforced. The labelling scheme will, at the same time, provide a 
highly useful instrument to support national policies, including information campaigns, rebate 
schemes, public procurement guidelines and white certification schemes. 

(2) 

Developing services for energy end-use efficiency 

The  Directive  on  Energy  End-Use  Efficiency  and  Energy  Services  (2006/32/EC)  adopted 
earlier  this  year  provides  a  good  framework  for  strengthening  EU-wide  co-operation  on 
energy efficiency in areas where a clear potential for energy savings exists. Full collaboration 
from Member State authorities in implementing the Directive is required, in particular in so 
far  as  drawing  up  ambitious  national  Action  Plans  is  concerned.  Under  the  auspices  of  this 
Directive,  the  Commission  will  prepare  a  Memorandum  of  Understanding  in  co-operation 
with the Council of European Energy Regulators (CEER) setting forth guidelines and a code 
of  conduct  on  improving  energy  end-use  efficiency  in  all  sectors.  This  Directive  will  also 
enable an assessment of an EU-wide White Certification Scheme in 2008, taking into account 
developments in Member States and progress with the EU harmonised measurement system 
for energy efficiency improvements.  

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(3)  Making buildings more energy efficient 

Priority Action 2 

Building performance requirements and very low energy buildings ("passive houses") 

The Commission will propose expanding the scope of the Energy Performance of Buildings 
Directive  substantially  in  2009,  after  its  complete  implementation.  It  will  also  propose  EU 
minimum  performance  requirements  for  new  and  renovated  buildings  (kWh/m²).  For  new 
buildings,  the  Commission  will  also  by  the  end  of  2008  develop  a  strategy  for  very  low 
energy  or  passive  houses24  in  dialogue  with  Member  States  and  key  stakeholders  towards 
more  wide-spread  deployment  of  these  houses  by  2015.  The  Commission  will  set  a  good 
example by leading the way, as far as its own buildings are concerned.  

The Energy Performance of Buildings Directive (2002/91/EC), to be transposed by Member 
States by January 2006,25 can play a key role in realising the savings potential in the buildings 
sector,  which  is  estimated  at  28%26,  and  which  in  turn  can  reduce  total  EU  final  energy 
consumption by around 11%. However, to reap the full potential in the buildings sector, the 
Commission will propose expanding the scope of the Directive to include the large stock of 
smaller buildings, including by lowering significantly the current threshold from 1000 m² for 
minimum  performance  requirements  for  major  renovations  to  include  a  majority  of  existing 
buildings. In 2009, it will also propose EU minimum performance requirements for new and 
renovated  buildings  (kWh/m²)  and  for  components,  such  as  windows.  It  will  take  the 
necessary  steps,  in  collaboration  with  the  building  sector,  to  develop  a  deployment  strategy 
for very low energy or passive houses, with a view to moving towards this type of houses as a 
standard  in  new  construction  in  the  medium  term,  as  the  appropriate  technologies  become 
commercially available.  

A more comprehensive list of proposed actions related to existing EU legislation is set out in 
the annex. 

24 

25 

26 

Passive house are commonly defined as houses without traditional heating systems and without active 
cooling.  This  would  involve  very  good  insulation  levels,  and  a  mechanical  ventilation  system  with 
highly efficient heat recovery. They can also be called: zero-energy houses, houses without heating. 
Member  States  may  apply  for  an  additional  period  of  three  years  (until  2009)  to  apply  fully  certain 
provisions of this Directive. 
Wuppertal Institute 2005. Based on Mantzos (2003). An energy-saving electric bulb uses for example 
five  times  less  current  than  a  standard  one.  Replacing  bulbs  can  easily  save  €  100  annually  for  an 
average household. 

EN 

12 

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5.2. 

Improving energy transformation 

There  is  a  large  potential  for  improving  energy  efficiency  in  energy  production  and 
distribution due to the significant size of current transformation losses (figure 4).  

Primary energy consumtion EU25 (1750 Mtoe) in 2005

Transformation 
losses
33%

Non-Energy Uses
6%

Households
16%

Tertiary
9%

Transport
19%

Industry
17%

Figure 4 

The  energy  transformation  sector  uses  around  one-third  of  all  primary  energy.  At  the  same 
time, average transformation efficiency for electricity generation, for example is around 40%. 
New  generation  capacity  can  have  an  efficiency  that  is  close  to  60%.  This  creates  a  large 
potential  for  improving  energy  efficiency.  Losses  in  the  transmission  and  distribution  of 
electricity – often as high as 10% - can also be reduced. 

The  EU  emissions  trading  system  is  an  effective  means  to  incite  electricity  producers  to 
reduce emissions and improve efficiency in the most cost-effective way. The Commission is 
currently  planning  a  review  of  the  system.27  Through  the  establishment  of  the  national 
allocation  plan  and  the  creation  of  an  overall  scarcity  of  CO2  emissions  allowances  in  the 
market, Member States can continue to use the EU emission trading system as an instrument 
to incentivise more efficient power production. Nonetheless, the Commission considers that a 
number of new measures are called for and therefore proposes a package of actions. 

27 

Experience and discussions between the Commission and Member States on national allocation plans 
for the 2008-2012 period should also provide advice on pragmatic improvements of the system. 

EN 

13 

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Priority Action 3 

Making power generation and distribution more efficient 

The  Commission  will  by  2008  develop  minimum  binding  efficiency  requirements  for  new 
electricity, heating and cooling capacity lower than 20 MW28 and consider, if necessary, such 
requirements for larger production units. It will also develop with the energy supply industry 
guidelines  on  good  operating  practices  for  existing  capacity  to  raise  average  generation 
efficiency  for  all  plants  and  agree  guidelines  on  good  regulatory  practices  to  reduce 
transmission and distribution losses. A proposal for a new regulatory framework to promote 
the connection of decentralised generation will be put forward in 2007. 

To improve overall efficiency in the energy transformation sector, the Commission will work 
closely  with  the  energy  supply  and  distribution  industry  and  with  the  Council  of  European 
Energy  Regulators  (CEER)  and  the  European  Regulators  Group  for  Electricity  and  Gas 
(ERGEG). 

In  the  framework  of  the  implementation  of  the  Directive  on  the  Promotion  of  Cogeneration 
(CHP) (2004/8/EC) there is scope for reducing losses in distribution networks. To date, only 
around  13%  of  the  electricity  consumed  in  the  EU  is  generated  using  this  technology. 
Harmonising calculation methods and guarantees of origin, as well as improved metering and 
establishment  of  norms  will  be  essential  to  stimulate  further  progress  in  developing 
cogeneration.  All  of  these  objectives  will  be  pursued.  Minimum  performance  requirements 
and regulations for district heating and micro CHP will also be proposed as from 2007.  

Here too, a more comprehensive list of proposed measures is set forth in the annex. 

5.3.  Moving on transport 

The transport sector plays a central role in the European economy and as such accounts for 
almost 20% of total primary energy consumption. 98% of the energy consumed in this sector 
is  fossil  fuel.  As  transport  is  also  the  fastest  growing  sector  in  terms  of  energy  use,  it  is  a 
major  source  of  greenhouse  gases  and  of  import  dependency  on  fossil  fuels.  It  is  therefore 
essential to realise the potential for energy efficiency gains in this sector. These potentials can 
be achieved, in particular, by ensuring fuel efficiency of cars, developing markets for cleaner 
vehicles, ensuring the maintenance of proper tyre pressure, and by improving the efficiency of 
urban,  rail,  maritime  and  aviation  transport  systems,  as  well  as  changing  transportation 
behaviour.  Co-modality,  i.e.  the  efficient  use  of  different  modes  on  their  own,  and  in 
combination, will result in an optimal utilisation of resources, including energy. Promotion of 
short-sea shipping and the motorways of the sea as well other more environmentally friendly 
and energy saving modes will contribute to increasing energy efficiency. 

28 

Generation not covered under the EU Emission Trading Scheme. 

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14 

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Priority Action 4 
Achieving fuel efficiency of cars 

The  Commission,  being  determined  to  address  energy  efficiency  and  CO2  emissions  from 
cars, will if necessary propose in 2007 legislation to ensure that the 120 g CO2/km target is 
achieved by 2012 through a comprehensive and consistent approach, in accordance with the 
agreed EU objective. In parallel it will propose to strengthen EU requirements for labeling of 
cars. 

Due to the close link between fuel efficiency and CO2 emissions, much of this potential can 
be  realised  through  new  measures,  including  legislation,  to  ensure  that  the  necessary  CO2 
reductions  are  delivered.  Should  it  become  clear  that  the  voluntary  commitments  of  the  car 
industry to reach 140 g CO2/km by 2008/2009 will not be honoured, the Commission will not 
hesitate to propose legislation. To that end a Commission Communication on a revised long-
term  strategy  to  reduce  CO2  from  cars  beyond  the  current  voluntary  commitments  will  be 
adopted before the end of 2006, aimed at reaching the Community objective of 120 g CO2/km 
by  2012  through  a  comprehensive  and  consistent  approach,  involving  other  relevant 
stakeholders and authorities and other instruments29. 

The  Commission  will  continue  its  efforts  to  develop  markets  for  cleaner,  smarter,  safer  and 
energy-efficient vehicles through public procurement and awareness-raising. Information and 
communications  technologies  will  also  be  increasingly  used  to  improve  vehicle  energy 
efficiency.30  An  amended  and  broadened  Car  Fuel  Efficiency  Labelling  Directive 
(1999/94/EC) will be proposed to improve and harmonise the design of the label throughout 
the EU to incentivise consumers and producers toward more efficient vehicles. As with other 
products,  “A”  label  status  will  be  reserved  for  the  10-20%  best  performing  cars  and  the 
labelling scheme will be updated after 3 years. 

Tyres  and  tyre  pressure  can  improve  vehicle  fuel  efficiency  by  more  than  5%,  according  to 
estimations.31  The  Commission  will  issue  a  mandate  for  a  recognised  European  Norm  and 
possible  international  standard  for  maximum  rolling  resistance  limits  and  labelling  for  road 
vehicle tyres. It will furthermore facilitate voluntary agreements and consider other measures 
to  encourage  the  fitting  of  tyre  pressure  monitoring  and  inflation  systems  on  road  vehicles, 
including compulsory fitting of tyre pressure monitoring systems on new road vehicles. 

There  is  a  need  for  reducing  unnecessary  energy  consumption  caused  by  inefficient  urban 
transport.  While  recognising  the  responsibilities  of  local  and  regional  authorities,  the 
Commission  will,  in  the  framework  of  the  forthcoming  Green  Paper  on  urban  transport  put 
forward  joint  solutions  based  on  concrete  measures  that  have  been  successfully  tested, 
including,  if  appropriate,  infrastructure  use  and  road  and  congestion  charges.  These  will 
include new approaches to encourage the use of public transport, car-sharing, non-motorised 
transport  modes  and  telecommuting  in  European  cities.  Such  joint  solutions  will  take  into 

29 
30 

31 

E.g. the CO2 element in passenger car related taxes (COM(2005)261). 
Communication on the Intelligent Car Initiative (COM(2006)59 final) and 2nd eSafety Communication 
(COM(2005)431 final). 
In addition to the substantial gains to be made by using the right tyres at the right pressure, an average 
driver can easily save € 100 on the annual fuel bill by driving in a more ecological way (International 
Energy Agency "Saving oil in a hurry", 2005). 

EN 

15 

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consideration  the  Thematic  Strategy  on  the  Urban  Environment,32  as  well  as  experience 
gained under the CIVITAS initiative.33  

As  regards  improved  energy  efficiency  in  other  transport  modes,  the  Commission  will 
consider  market-based  instruments  for  the  maritime  sector  and  will,  following  the  recent 
Communication on climate change and aviation34, propose measures for  the aviation sector 
such as its inclusion under the Emission Trading Scheme, without putting into jeopardy these 
sectors'  overall  competitiveness.  Energy  efficiency  in  rail  transport  will  be  promoted  by 
complete  implementation  of  its  legal  framework  by  2007.  A  more  comprehensive  list  of 
proposed transport measures is set out in the annex. 

5.4. 

Financing energy efficiency, economic incentives and energy pricing  

Even  though  many  energy  efficiency  measures  are  fully  cost  effective  with  very  short  pay-
back  periods,  many  such  measures  are  not  undertaken  due  to  financial  barriers.  This  is  not 
least the case in small and medium-sized enterprises. 

To facilitate financing of energy efficiency on the one hand and improve the way price signals 
impact on energy efficiency on the other, the Commission  will identify and  seek to  remove 
remaining legal barriers in national legislation to the use of (i) companies supplying efficiency 
solutions35  (the  so-called  "Energy  Service  Companies"  or  "ESCO’s"),  (ii)  shared  and 
guaranteed  savings,  (iii)  third-party  financing  and  (iv)  performance  contracting.  The  use  of 
local revolving funds and clearing houses will be expanded.  

Moreover,  public-private  partnerships  (PPP)  will  be  facilitated  with  the  private  banking 
sector,  EIB  Group,  EBRD  and  other  IFI  funding  to  attract  more  funding  covering  debt 
financing,  guarantee  instruments  and  venture  capital  applications  for  new  energy-efficient 
technologies in the EU.  

Priority Action 5 

Facilitating  appropriate  financing  of  energy  efficiency  investments  for  small  and 
medium enterprises and Energy Service Companies 

Through a number of specific initiatives in 2007 and 2008 the Commission will call upon the 
banking sector to offer finance packages specifically aimed at small and medium enterprises 
and Energy Service Companies to adopt energy efficiency savings identified in energy audits. 
Access to Community financing, such as Green Investment Funds, co-financed by CIP36, will 
be made available for promoting eco-innovations.  

The  potential  for  energy  efficiency  improvements  is  particularly  large  in  the  new  Member 
States.  The  Commission  will  further  encourage  the  use  of  Structural  and  Cohesion  funds  to 
facilitate leveraging of private financing at national and local levels for energy efficiency.  

32 
33 

34 
35 

36 

COM(2005)718 final. 
Programme in the RTD Framework Programme to help cities to achieve a more sustainable, clean and 
energy-efficient urban transport system. 
COM(2005)459 final. 
These companies usually accept some degree of financial risk. The payment for the services delivered is 
based  (either  wholly  or  in  part)  on  the  achievement  of  energy  efficiency  improvements  and  on  the 
meeting of the other agreed performance criteria.  
Competitiveness and Innovation Framework Programme (2007-2013). 

EN 

16 

   EN 

 
 
 
                                                 
Priority Action 6  
Spurring energy efficiency in the new Member States  

Within  the  framework  of  cohesion  policy,  energy  efficiency  is  one  of  the  priorities.  The 
Commission  will  encourage  European  Regional  Policy  to  deploy  its  national  and  regional 
programmes  to  promote  more  intensive  investment37  to  improve  energy  efficiency,  in 
particular in the new Member States, including in the multi-family and social housing sectors. 
In addition, the Commission will promote networking amongst Member States and regions to 
ensure financing of best practices in energy efficiency. 

Experience has shown that taxation, as a means to internalise external costs, is a powerful tool 
in promoting energy efficiency. 

Priority Action 7  
A coherent use of taxation 

The Commission will prepare a Green Paper on indirect taxation (2007) and will subsequently 
review the Energy Tax Directive38 in 2008 to facilitate a more targeted and coherent use of 
energy  taxation  by  integrating  notably  energy  efficiency  considerations  and  environmental 
aspects.  

In addition, the Commission will consider in 2007 the costs and benefits of using tax credits 
as  incentives  for  enterprises,  on  one  hand,  to  promote  the  increased  production  of  certified 
energy-efficient  appliances  and  equipment  and  for  consumers,  on  the  other,  to  promote  the 
purchase of such appliances and equipment.  

As  regards  vehicle  taxation,  the  Commission  calls  upon  the  Council  to  adopt  as  soon  as 
possible  its  proposal  to  relate  taxation  to  CO2  performance,  and  invites  Member  States  to 
begin 
they  may  be  considering 
into 
(COM(2005)261). 

introducing  such  modifications 

tax  reforms 

The Commission  will also  propose  in 2007 special tax  arrangements  for  commercial  diesel, 
aiming at narrowing excessive differences in tax levels between Member States. This proposal 
should increase energy efficiency in the transport haulage by reducing "tank tourism". 

Finally,  the  Commission  recalls  that  a  number  of  Member  States  are  already  entitled  to  use 
the reduced VAT rate to specifically favour investments to improve energy efficiency (better 
insulation of buildings, etc.) 

5.5. 

Changing energy behaviour 

The efficient use of energy requires factors that motivate, facilitate and reinforce rational and 
responsible  behaviour.  Institutional  capacity,  awareness,  and  clear,  credible  and  accessible 
information on energy-using technologies and techniques are important predisposing elements 
for  rational  market  behaviour.  Education  and  training  are  required  for  all  stakeholders,  and 
information technology is vital. 

37 

38 

Notably  by  developing  joint  support  programmes  such  as  JASPERS,  JEREMIE  and  JESSICA  for 
Regions, SMEs and Cities, in combination with the EIB Group, EBRD and other IFIs. . 
Directive 2003/96/EC, OJ L 283 of 31.10.2003, p. 51. 

EN 

17 

   EN 

 
                                                 
Priority Action 8 

Raising energy efficiency awareness  
Priority  areas,  besides  improved  labelling,  will  include  education  and  training  plans  and 
programmes for energy managers in industry and utilities. Included will also be teaching aids 
for  primary,  secondary  and  vocational  educational  curricula.  These  will  be  developed  as  of 
2007  through  Community  programmes,  by  recommendations  to  Member  Sates  and  through 
co-operation with Member State and Community educational agencies.  

Energy efficiency starts at home. The Commission and the other EU Institutions will therefore 
show  leadership  by  example  by  demonstrating  new,  energy-efficient  technologies  in  their 
buildings,  vehicles,  office  supplies  and  other  energy-using  equipment,  and  adopting 
procurement  guidelines  for  their  services.  In  applying  the  Community  eco-management  and 
audit  scheme  (EMAS)39,  the  Commission  will  ensure  that  all  Commission-owned  buildings 
are certified by the end of 2009.  

Elsewhere, energy efficiency management schemes will be developed with co-financing from 
Community  programmes  such  as  the  CIP.40  Recipients  will  elaborate  guidelines  on  how  to 
promote  energy-efficient  products  and  provide  for  education  and  training  plans  for  energy 
managers. The Commission will present by the end of 2006 an Environment Programme for 
SMEs  (SME-Environment),  including  an  energy  efficiency  toolkit,  and  will  develop  a 
Strategic  Energy  Technology  Plan  including  the  contribution  to  energy  efficiency  of 
information and communications technologies.  

Priority Action 9 

Energy efficiency in built-up areas 
A “Covenant of Mayors” will be created by the Commission in 2007 bringing together in a 
permanent network the mayors of 20-30 of Europe's largest and most pioneering cities. The 
aim is to exchange and apply best practices thereby improving energy efficiency significantly 
in the urban environment, where local policy decisions and initiatives are important, including 
transport.  

To provide practical examples of energy efficiency measures and policies, the Commission in 
the  framework  of  the  Sustainable  Energy  Europe  campaign  and  with  support  from  the 
Intelligent Energy-Europe Programme will organise a competition in each Member State with 
a view to award a prize for the most energy-efficient school. The selection criteria for such an 
award  will  include  energy  management  and  energy  performance  of  the  respective  school 
facilities as well as the students` level of knowledge of the subject of energy efficiency and 
sustainability. The concept of organising a European prize will also be considered.  

Further measures are set out in the annex. 

5.6. 

International partnerships 

Notwithstanding  that  energy  efficiency  starts  at  home,  it  is  also  very  much  an  international 
issue.  The  EU  should  use  its  bilateral  and  international  trade  and  development  policy, 
agreements,  treaties  and  instruments  (including  dialogues)  to  promote  the  development  and 
use of energy-efficient technologies and techniques.  

39 
40 

EMAS was established by Regulation (EC) No 761/2001. OJ, L 114, p. 1 on 24.04.2001.  
Competitiveness and Innovation Framework Programme 2007-2013. COM(2005)121 final. 

EN 

18 

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Priority Action 10 

Foster energy efficiency worldwide 
In order to promote energy efficiency worldwide, the Commission will take the initiative in 
2007  to  reach  a  framework  agreement  with  key  external  trading  partner  countries  and 
international organisations. The agreement will focus on improving energy efficiency in end-
use  sectors  and  in  energy  transformation  and  will  use  a  large  number  of  policies  and 
measures. 

With  a  view  to  focussing  and  strengthening  energy  efficiency  world-wide,  the  Commission 
will propose an international framework agreement involving both developed and developing 
countries,  including  Brazil,  China,  India,  Japan,  Russia  and  the  United  States.  This  will  be 
done  in  collaboration  with  the  United  Nations,  the  International  Energy  Agency,  G8 
(Gleneagles  Dialogue  on  Climate  Change),  the  World  Trade  Organisation,  the  World  Bank, 
the  EBRD,  EIB  and  other  institutions.  The  aim  is  to  develop  closer  co-operation  on  energy 
efficiency  measurement  and  evaluation,  minimum  performance  requirements  for  goods  and 
services,  labelling  and  certification,  energy  audits,  stand-by  losses,  codes  of  conduct,  and 
more.  It  should  cover  all  end-use  sectors,  including  transport,  as  well  as  energy 
transformation, where the global potential is particularly large. The Commission will host a 
major international conference on energy efficiency in 2007 to kick-start the process.  

6. 

Conclusions and next steps 

The measures set forth in this Action Plan and in the annex can start producing effects in the 
next  six  years,  many  in  the  coming  three.  The  progress  achieved  will  be  assessed  in  the 
framework  of  the  regular  Strategic  European  Energy  Reviews41.  A  major  mid-term  review 
will take place in 2009 during the implementation of the Action Plan. The savings potential is 
there.  The  tools,  support  programmes,  policies  and  necessary  institutional  capacity  must  be 
brought to bear.  

However,  more  than  anything,  political  will  and  engagement  at  national,  regional  and 
local level are necessary if the objectives here are to be achieved. Therefore, it is for the 
Council  and  the  European  Parliament  and  for  national  and  regional  policy  makers  to 
renew  their  full  commitment  and  establish  a  clear  and  unambiguous  mandate  to 
facilitate  the  implementation  of  this  Action  Plan  by  endorsing  it  and  agreeing  on  the 
proposals set forth.  

41 

COM(2006)105 final of 8 March 2006. 

EN 

19 

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ANNEX: Proposed Measures42 

The Commission will take the following measures43: 

1. Dynamic energy performance requirements for products, buildings and services. 

•  Implementation of the Eco-Design Directive (2005/32/EC) 

–  co-ordinate eco-design requirements, labelling, and incentives (2007-2012) 

–  develop eco-design requirements for 14 priority product groups (2007-2009) 

•  develop eco-design requirements for additional products (2008-2010) 

•  support self commitments to deliver energy savings (2007-2012) 

•  implementation and amendment of the Labelling Framework Directive (92/75/EC);  

–  propose  Commission  Directives  for  energy  labelling  of  gas  water  heaters  and 

electric water heaters (2007) 

–  prepare  additional  labelling  implementing  measures  and  revise  existing  labels, 
with  a view to re-scale them every 5 years with only 10 – 20 % having A-label 
status and verifying life-cycle costs and expected energy savings(2007-2009) 

–  launch a comprehensive survey on the implementation of the Directive (2007) 

•  Implementation and amendment of the Energy Star Agreement on office equipment44 

–  conclude a new 5-year Energy Star Agreement (2007) 

–  propose  amending  Regulation  (EC)  No  2422/2001  on  a  Community  energy 

efficiency labelling programme for office equipment (2007) 

–  develop stringer energy efficiency criteria for office equipment (2007-2011) 

•  Implementation  and  amendment  of  the  Energy  End-Use  Efficiency  and  Energy  Services 

Directive (2006/32/EC) 

–  prepare  a  Memorandum  of  Understanding  on  energy  efficiency  in  co-operation 

with CEER through ERGEG (2007) 

–  assess a Community-wide White Certificate Scheme (2008) 

–  improve coherence of national public procurement guidelines on energy efficiency 

(2008) 

42 

43 
44 

All  proposed  actions  are  explained  in  more  detail  in  the  Commission  Staff  Working  Document 
“Analysis of the Action Plan for Energy Efficiency”, SEC(2006)1173. 
Timing in brackets reflects estimated Commission launch and/or duration of measure. 
Regulation (EC) No 2422/2001. 

EN 

20 

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–  seek  agreement  on  more  stringent  and  harmonised  criteria  for  voluntary 

agreements to significantly increase energy efficiency (2009) 

–  issue a mandate for a European norm (EN) for energy audits (2008) 

–  propose more detailed metering and billing requirements (2009) 

–  consider supporting or establishing a centre to identify and improve emerging and 

existing technologies (2008) 

•  Implementation  and  amendment  of  the  Energy  Performance  of  Buildings  Directive 

(2002/91/EC) 

–  propose  an  expanded  role  for  the  public  sector  to  demonstrate  new  technologies 

and methods (2009) 

–  propose 

lowering  significantly 
requirements for major renovations (2009) 

the 

threshold  for  minimum  performance 

–  propose  minimum  performance  requirements  (kWh/m²)  for  new  and  renovated 
buildings  and  some  components  with  a  target  for  new  buildings  to  approach  the 
level of passive houses45 from 2015 (2009) 

–  consider  proposing  binding  requirements  to  install  passive  heating  and  cooling 

technologies (by the end of 2008) 

–  propose  measures  for  Member  States  to  provide  financing  for  highly  cost-

effective investments (2009)  

•  Implementation of the Construction Products Directive (89/106/EEC) 

–  introduce  energy  efficiency  aspects  in  construction  product  standards  whenever 

relevant (2008) 

2. Improving energy transformation 

•  develop minimum efficiency requirements for new electricity, heating and cooling capacity 
lower than 20 MW and consider if necessary such requirements for larger production units 
(2008)  

•  develop with supply industry guidelines on good operating practices for existing capacity 

(2008) 

•  issue  a  mandate  for  a  European  Norm  for  a  certification  scheme  for  heat  and  electricity 

plant engineers (2008) 

•  agree guidelines in co-operation with CEER through ERGEG on good regulatory practices 

to reduce transmission and distribution losses (2008) 

45 

With minimum need for external energy supply for heating and cooling. 

EN 

21 

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•  propose  a  new  regulatory  framework  for  the  promotion  of  grid  access  and  connection  of 

decentralised generation (2007) 

•  Implementation and amendment of the Directive on the Promotion of Cogeneration (CHP) 

(2004/8/EC), including  

–  accelerate  harmonisation  of  the  calculation  methods  for  high-efficiency  CHP 

(2008-2011) 

–  issue a mandate for a European Norm (EN) for certification of chief engineers for 

CHP plants (2008) 

–  reach agreement on a harmonised electronic Guarantee of Origin (2007-2009) 

–  propose stricter requirements for market regulators to promote CHP (2008-2011) 

–  propose  to  require  Member  States  to  identify  heat  demand  suitable  for  CHP 

(2007-2008)  

–  propose  that  Member  States  be  required  to  identify  in  national  potentials  waste 

heat potential (2007-2008)  

–  propose minimum efficiency requirements for district heating based on new norm 

(2007-2008) 

–  seek to adopt a European Norm and a minimum efficiency requirement for micro 

CHP (2007-2009)  

3. Moving on transport 

•  measures,  including  legislation  if  necessary,  to  meet  through  a  comprehensive  and 
consistent approach a 120 g CO2/km target by 2012. This target should be met based on the 
achievement of a 140 g CO2/km target through a voluntary agreement by 2008-2009 

•  strengthen efforts to develop markets for cleaner, smarter, more energy-efficient and safer 
vehicles, following a Commission proposal for a Directive on the promotion of clean road 
transport vehicles (COM(2005)634) (2007-2012)  

•  strengthen  EU-wide  real-time  traffic  and  travel  information  (RTTI)  systems  and  traffic 

management (2007-2012) 

•  encourage financing for market introduction of efficient vehicles (2007) 

•  propose an amended Car Fuel Efficiency Labelling Directive (1999/94/EC) (2007) 

•  issue  a  mandate  for  a  recognised  European  Norm  and  international  standard  to  measure 

tyre rolling resistance (2008) 

•  work  towards  minimum  efficiency  requirements  for  automobile  air-conditioning  systems 

(2007-2008) 

•  propose a labelling scheme for tyres (2008) 

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•  facilitate  voluntary  agreements  and  propose  other  measures  on  accurate  tyre  pressure 

monitoring schemes (2008-2009) 

•  consider  compulsory  fitting  of  tyre  pressure  monitoring  systems  on  new  vehicles  (2008-

2009) 

•  submit a Green Paper on urban transport putting forward joint solutions based on concrete 
measures  that  have  been  successfully  tested,  including,  if  appropriate,  infrastructure  use 
and road and congestion charges (2007) 

•  propose  legislation  to  harmonise  requirements  to  promote  fuel  efficiency  in  drivers 

education curricula and support projects (2008) 

•  promote energy efficiency in the aviation sector through SESAR46 (2007-2012) 

•  propose  legislation  to  include  the  aviation  sector  in  the  EU  Emissions  Trading  Scheme 

(end of 2006) 

•  exploit the potential for optimising hull cleaning of ships (2007-2008) 

•  realise  savings  benefits  of  shore-side  electricity  for  harboured  ships  by  proposing 

legislation (2008-2009) 

•  promote short sea shipping and the motorways of the sea (2007-2012) 

•  implement the legal framework for rail transport (2007) 

4. Financing energy efficiency, economic incentives and energy pricing  

•  seek to identify and remove legal barriers in Member States to use ESCOs, and contracting 

instruments for energy efficiency (2007-2009) 

•  develop  local  revolving  funds  affiliated  with  information  clearing  houses,  through  close 

cooperation with EBRD, EIB Group and other IFIs (2007-2009) 

•  facilitate  the  emergence  with  EBRD,  EIB  Group  and  other  IFIs  of  public-private 
partnerships to attract funding for debt financing, guarantees and venture capital for SMEs, 
ESCOs and other enterprises offering energy services (2007) 

•  facilitate leveraging of financing for energy efficiency projects, including the multifamily 
and social housing sectors, in the new Member States through the Structural and Cohesion 
funds (2007-2012) 

•  promote  networking  amongst  Member  States  and  regions  to  ensure  financing  of  best 

practices in energy efficiency (2007-2012) 

•  promote use of public-private energy efficiency funds and finance packages for SMEs and 
public  sector  for  energy  audits  and  specific  energy  efficiency  investments  identified  in 
energy audits with EBRD, EIB Group and EU Structural and Cohesion funds (2007-2012) 

46 

Single European Sky Air Traffic Management Research project. 

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•  encourage the use of Community financing such as Green Investment Funds, co-financed 

by CIP, for SMEs in view of promoting eco-innovation solutions (2007-2012) 

•  consider costs and benefits of tax credits as incentives for enterprises to produce more and 
better  energy-efficient  appliances  and  equipment  and  for  consumers,  to  promote  the 
purchase of such appliances and equipment (2007) 

•  prepare  a  Green  Paper  on  indirect  taxation  (2007)  and,  subsequently  review  the  Energy 
Tax  Directive  to  incorporate  better  energy  efficiency  and  environmental  considerations 
(2008) 

•  propose  a  special  tax  arrangement  for  commercial  diesel,  aiming  at  narrowing  excessive 
differences in tax levels between Member States in order to increase energy efficiency in 
the transport haulage sector by reducing "tank tourism" (2007) 

•  call  upon  the  Council  to  adopt  Commission  proposal  (COM(2005)261)  to  relate  vehicle 
taxation  to  CO2  performance,  and  invites  Member  States  to  already  introduce  these 
modifications into the tax reforms they may be considering (2007) 

5. Changing Energy Behaviour  

•  lead by example by EMAS certifying all Commission buildings (2007-2009) and propose 

extending to other EU Institutions (2010) 

•  strengthen energy efficiency guidelines by amending the EMAS regulation (2007) 

•  adopt  energy  efficiency  Commission  procurement  guidelines  (2008),  promote  energy 
management  schemes,  guidelines  on  how  to  promote  energy-efficient  products,  and 
training  toolkits  for  industry,  SMEs  and  the  public  sector  and  present  IPPC47  reference 
document (2007-2012) 

•  propose  recommendation  to  Member  States  for  energy  security  and  climate  change 
dimension in national educational curricula (2007); Community programmes will provide 
relevant information material and teaching guidelines (2007-2012). 

•  propose a vocational educational initiative on energy efficiency (2008)  

•  create  a  “Covenant  of  Mayors”  with  an  Memorandum  of  Understanding  on  energy 
efficiency for exchange and application of best practices and to set up a permanent network 
(2007) 

•  create  and  operate  new  networks  in  Sustainable  Energy  Europe  (SEE)  Campaign  (2007-

2008) 

•  organise  a  competition  in  each  Member  State  with  a  view  to  award  a  prize  for  the  most 

energy-efficient school (2007 -2008) 

47 

Integrated Pollution Prevention and Control Directive (96/61/EC). 

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•  involve the Intelligent Energy-Europe Agency, national, regional and local energy agencies 

in implementation of Action Plan (2007-2012) 

6. International partnerships 

•  launch  an  initiative  for  an  International  Framework  Agreement  on  Energy  Efficiency 

(2007) 

•  propose  voluntary  agreements  (commitments)  with  export  industries  on  information, 

minimum efficiency requirements and labelling (2007-2012) 

•  strengthen energy efficiency in energy and trade treaties, agreements, dialogues and other 

cooperation frameworks (2007-2012) 

•  increase  international  co-operation  on  measurement  methods  for  minimum  efficiency 

requirements and labelling (2007-2012) 

•  create  an  international  network  for  dissemination  of  information  and  advice  on  efficient 

technologies (2009) 

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   EN