Communication from the Commission  to the Council and the European Parliament on a first assessment of national energy efficiency action plans as required by Directive 2006/32/EC on energy end-use efficiency and energy services - Moving forward together on energy efficiency
Date: 2008-01-23
Institutions: European Commission
Subjects: EU Member State, action programme, energy consumption, energy policy, energy saving, project evaluation, public awareness campaign

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 23.1.2008 
COM(2008) 11 final 

COMMUNICATION FROM THE COMMISSION 
TO THE COUNCIL AND THE EUROPEAN PARLIAMENT 

ON A FIRST ASSESSMENT OF NATIONAL ENERGY EFFICIENCY ACTION 
PLANS AS REQUIRED BY DIRECTIVE 2006/32/EC ON ENERGY END-USE 
EFFICIENCY AND ENERGY SERVICES 

MOVING FORWARD TOGETHER ON ENERGY EFFICIENCY 

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TABLE OF CONTENTS 

1. 

2. 

3. 

4. 

5. 

ENERGY EFFICIENCY AND THE ENERGY SERVICES DIRECTIVE IN THE 
EU's INTEGRATED CLIMATE AND ENERGY POLICY....................................... 3 

THE ENERGY SERVICES DIRECTIVE - IMPLEMENTATION TO DATE.......... 4 

NATIONAL ENERGY EFFICIENCY ACTION PLANS – A FIRST 
ASSESSMENT ............................................................................................................ 5 

MOVING FORWARD TOGETHER - THE AGENDA ........................................... 11 

CONCLUSIONS........................................................................................................ 12 

ANNEX 1: Calculation of CO2 benefits from the achievement of the saving targets set by 
Energy Services Directive ........................................................................................................ 13 

ANNEX 2: New Commission initiatives ................................................................................. 14 

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COMMUNICATION FROM THE COMMISSION 
TO THE COUNCIL AND THE EUROPEAN PARLIAMENT 

ON A FIRST ASSESSMENT OF NATIONAL ENERGY EFFICIENCY ACTION 
PLANS AS REQUIRED BY DIRECTIVE 2006/32/EC ON ENERGY END-USE 
EFFICIENCY AND ENERGY SERVICES 

MOVING FORWARD TOGETHER ON ENERGY EFFICIENCY 

1. 

ENERGY  EFFICIENCY  AND  THE  ENERGY  SERVICES  DIRECTIVE  IN 
THE EU'S INTEGRATED CLIMATE AND ENERGY POLICY  

In  its  March  2007  conclusions1,  the  European  Council  identified  energy  efficiency  as  an 
essential part of the comprehensive strategy on climate change and energy, and stressed the 
need  to  achieve  the  objective  of  a  20%  saving  of  EU  energy  consumption2  by  2020.  The 
European Council added that good use should be made of National Energy Efficiency Action 
Plans3  for  this  purpose.  This  was  also  underlined  already  in  2005  by  the  European 
Parliament.4 

Energy conservation and energy efficiency improvements are of increasing importance in the 
approach to sustainability and security of energy supply and efforts to reduce greenhouse gas 
emissions.  The  National  Energy  Efficiency  Action  Plans  (NEEAPs)  provide  practical 
demonstration of the commitment of Member States. Importantly, the plans provide a means 
for the sharing of best practices among the many players in energy efficiency, at every level, 
and for developing synergies among the strategies and measures adopted.  

Efficiency improvements already achieved have contributed to a decrease in energy intensity5 
of  the  EU  economy.  However,  despite  this,  total  energy  consumption  in  Europe  is  still 
increasing, with consequent increases in CO2 emissions and fossil fuel import dependence.  

This report is a response by the Commission to its obligation under the Directive on energy 
end-use efficiency and energy services6 to assess and report on the NEEAPs. It can only be a 
partial  response  at  this  stage  because  not  all  of  the  Member  States  have  submitted  their 
NEEAPs7  and  few  submitted  in  time  to  allow  for  sufficient  assessment.  Thus,  more 
comprehensive reporting on each of the NEEAPs will be carried out as they are notified to the 
Commission.  

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Council document 7224/07 REV1 
20% saving compared to projected 2020 energy consumption; see Action Plan for Energy Efficiency, 
COM (2006) 545.  
Directive 2006/32/EC on energy end-use efficiency and energy services, Art 14 
Vidal-Quadras report , INI 2005/2010 
Energy intensity is total primary energy consumption per unit of GDP 
Directive 2006/32/EC, Art 14.5 
Infringement procedures ongoing against 10 Member States, December 2007 

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With this report, based on the 17 NEEAPs submitted by 1 December 20078, the Commission 
gives a first assessment of the strategies adopted by Member States, focusing on the measures 
that appear to be examples of good practice with particular emphasis on the exemplary role of 
the public sector and the provision of information, which the Member States were required by 
the  Directive  to  report  on  in  their  first  NEEAP.  The  momentum  of  these  strategies  and 
initiatives needs to be increased. For its part, the Commission will facilitate mutual support in 
implementation  and  will  introduce  a  number  of  new  initiatives,  strengthening  the  EU 
framework for energy efficiency in the various end-use sectors. 

The  relevance  of  effective  strategies  to  improve  energy  efficiency  to  the  EU's  integrated 
climate  and  energy  policy  cannot  be  overstated.  The  technical  and  economic  potential  for 
cost-effective  energy  efficiency  improvements  is  well-researched  and  widely  recognised,  as 
are  the  obstacles  that  need  to  be  overcome9.  With  effective  implementation  of  policies  to 
overcome  these  barriers,  energy  efficiency  improvements  can  make  a  very  substantial 
contribution  to  achieving  the  EU's  objectives.  for  example,  if  the  reduction  in  energy 
consumption  among  final  users  targeted  in  the  Directive  on  energy  end-use  efficiency  and 
energy services could be achieved, the CO2 savings in 2020 would be 393 Mt, as compared to 
a business-as-usual scenario (For more details, see Annex 1). This corresponds to almost 10% 
of  the  EU's  1990  emissions10.  At  the  same  time,  with  significantly  reduced  energy  demand, 
the need for imports of fossil fuel would diminish, the energy import bill would be reduced 
correspondingly and consumers should see lower bills. 

Support  for  a  continued  strong  strategic  focus  on  energy  efficiency  looks  solid.  The  EU's 
2020  commitments  on  greenhouse  gas  emissions,  renewable  energy  sources  and  energy 
efficiency  should  underpin  policy  stability  at  every  level  and  should  encourage  investors, 
consumers  and  other  players  in  the  various  sectors  of  energy  supply  and  use.  The  internal 
energy  market  should  provide  improved  market  access  and  consumer  choice,  indeed  new 
markets, in the coming years11. Frameworks for global markets for energy-efficient products 
and  services  and  for  technology  cooperation  will  evolve,  as  global  trade  and  investment 
expand and a global agreement on climate change is constructed.  

The emphasis now must be on effective implementation of strategies and measures, including 
the development of best practice and synergies.  

2. 

THE ENERGY SERVICES DIRECTIVE - IMPLEMENTATION TO DATE 

The Directive requires Member States to adopt a 9% indicative energy end-use12 savings target 
in 2016 and to put in place institutional and legal frameworks and measures needed to remove 
barriers to efficient energy end-use. It is intended to act as a catalyst for renewed and more 
ambitious  energy  efficiency  initiatives  at  all  levels  of  European  society  –  local,  regional, 

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http://ec.europa.eu/energy/demand/legislation/end_use_en.htm#efficiency 
See Impact Assessment for Energy Efficiency Action Plan, for example (SEC (2006) 1174).  
As  explained  in  Annex  1,  this  is  a  maximum  estimate  for  the  possible  effects;  this  is  equivalent  to 
almost 10% of the EU's 1990 CO2 emission but it does not mean a 10% reduction below the 1990 level 
given that the business as usual increase of CO2 must first be avoided. 
See 3rd internal energy market package, September 2007 (COM (2007) 528; COM (2007) 529; COM 
(2007) 530; COM (2007) 531; COM (2007) 532).  
The emissions trading sector is outside the scope of Directive 2006/32/EC 

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national and Community. It should create the necessary conditions for the development and 
promotion of a market for energy services and the delivery of energy efficiency to end-users.  

Each Member State was required to prepare a NEEAP and to notify it to the Commission by 
30  June  2007.  NEEAPs  should  set  out  national  strategies,  charting  the  way  forward,  and 
should  not  be  regarded  as  a  bureaucratic  exercise.  Subsequent  implementation,  monitoring 
and evaluation of the strategy and the measures identified, complemented by bench-marking 
and a ‘peer review’ process at European level, should help Member States to learn from the 
successes  and  mistakes  of  others  and  should  facilitate  the  diffusion  of  best  practices 
throughout the EU.  

For  the  purpose  of  the  first  NEEAP,  each  Member  State  should  have  adopted  an  overall 
national indicative savings target of 9% or higher, to be achieved by the end of 2016, and an 
intermediate national indicative savings target for 2010.13 They should also show in their first 
NEEAPs  how  they  intend  to  reach  these  energy  savings  targets,  describing  the  strategy  and 
measures  being  put  in  place  to  achieve  them.  They  should  show,  in  particular,  how  they 
intend  to  comply  with  the  provisions  on  the  exemplary  role  of  the  public  sector  and  the 
provision of information and advice on energy efficiency to end users.14  

Member State notifications of first NEEAP 

When the notification deadline expired, the Commission had received NEEAPs from only two 
Member States, Finland and the UK. Since then, another fifteen Member States have notified 
plans - Austria, Bulgaria, the Czech Republic, Cyprus, Denmark, Estonia, Germany, Ireland, 
Italy,  Lithuania,  Malta,  the  Netherlands,  Poland,  Romania,  and  Spain.  Infringement 
Procedures for failure to notify the first NEEAP to the Commission were launched on October 
17  for  the  remaining  Member  States.  Belgium  and  the  Slovak  Republic  submitted  their 
NEEAPs at the end of December 2007, too late to be included in the assessment. 

3. 

NATIONAL  ENERGY  EFFICIENCY  ACTION  PLANS  –  A  FIRST 
ASSESSMENT 

This  first  assessment  is  by  no  means  exhaustive  and  is  not  based  on  scientific  evaluation 
methodology.  It  provides  a  first  overview  of  the  range  of  strategies  and  measures  being 
presented by the Member States and a first identification of examples of good practices which 
merit  closer  examination.  The  Commission  has  concentrated  on  reviewing  the  part  of  the 
strategies addressing the exemplary role of the public sector and information. The suitability 
of  any  particular  measure  or  the  design  of  any  particular  mechanism  will  depend  on  the 
context  within  which  they  are  implemented,  the  nature  of  existing  legal  and  regulatory 
framework and political, and organizational and social culture issues, inter alia. 

Level of ambition 

A first review of the 17 NEEAPs submitted by the Member States mentioned above15, shows 
that  five  Member  States  have  adopted  a  savings  target  that  goes  beyond  the  minimum 

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15 

According to paragraph 2 of Article 4 of the Directive, the national energy savings shall be measured as 
from 1 January 2008 
Article 14(2) of the Directive 
The review includes all NEEAPs notified to the Commission by 1 December 2007 

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indicative target of 9% – Cyprus (10%), Lithuania (11%), Italy (9.6%), Romania (13.5%), and 
Spain (11% by 2012).  

Several Member States, notably Ireland,  the  Netherlands  and  the United Kingdom, say they 
intend  to  achieve  higher  savings  targets.  The  Commission  welcomes  their  ambitions. 
However,  there  is  a  risk  that  the  lack  of  clear  formal  commitments  may  confuse  the  strong 
signal  in  favour  of  energy  efficiency  to  market  actors.  They  would  expect  governments  to 
gear  up  to  their  political  commitments  by  providing  ambitious  initiatives  to  create  a 
favourable business environment, with longer term, predictable investment conditions, for the 
increased uptake of energy efficiency. 

Several  NEEAPs  envisage  a  sizeable  part  of  the  total  savings  over  the  nine-year  period 
coming from so called existing or 'early actions'16.  

Six  NEEAPs17  do  not  cover  the  entire  nine-year  period  required  by  the  Directive18.  This 
makes any assessment of the likelihood of these strategies achieving their 2016 savings target 
difficult, in the absence of assumptions about measures to be adopted in the future.  

The exemplary role of the public sector 

In  the  Directive,  the  public  sector  is  required  to  play  an  exemplary  role,  encouraging  other 
actors  to  undertake  energy  efficiency  actions  across  all  sectors  of  the  economy.  Several 
Member States have set out comprehensive action plans in this field, demonstrating that they 
are stepping up to the challenge and leading by example.  

Compared to business-as-usual, Ireland, for example, has adopted an ambitious public sector 
savings target of 33% by 2020, and Germany has committed to a 2012 CO2 reduction target of 
30% for the public sector compared with 1990 levels, to be achieved mainly through energy 
efficiency  improvement  measures.  The  United  Kingdom  aims  for  carbon  neutral  central 
government buildings by 2012. 

To achieve its target, Ireland is putting in place a comprehensive programme of measures and 
will communicate its exemplary role via its national Power of One campaign19. Mechanisms 
will be established to promote exchange of best practices and replication of good ideas among 
public sector bodies, at local, national and international level.  

Germany  is  putting  in  place  a  major  retrofit  programme  for  its  federal  buildings,  allocating 
120 Million Euro per year to it over a four year period, from 2008-2012. It is also piloting an 
energy  performance  contracting  project  with  the  view  to  expanding  its  use  in  the  public 
sector. 

Among  a  range  of  measures  in  the  public  sector,  Denmark  will  require  the  use  of  energy 
audits.  All  resultant  recommendations20  with  a  pay-back  period  of  5  years  or  less  will  be 
required to be implemented. Similarly, Malta is providing for public sector leadership, one of 

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20 

See point 3 of Annex IV of Directive 2006/32/EC 
Bulgaria  2008-2010;  Denmark  2005-2012;  Estonia  2008-2013;  Lithuania  2007-2010;  Romania  2007-
2010; and Spain 2004-2012 
Article 4(2) 
http://www.powerofone.ie/ 
Item (e) listed in Annex VI of the Directive, at least two of the measures listed must be used 

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the  innovative  aspects  of  its  strategy  being  the  appointment  of  Green  Leaders  in  each 
Ministry.  The  Green  Leaders  will  champion  energy  efficiency  and  renewables  initiatives 
something which is likely to significantly improve progress and performance.  

The United Kingdom also vies to show public sector leadership and to ensure that it plays an 
exemplary role. For example, it will apply the Code for Sustainable Homes to all its housing 
developments,  requiring  all  new  homes  built  with  government  funding  to  comply  with  the 
Code's  Level  3  –  a  25%  energy  performance  improvement  compared  to  the  2006  building 
code.  Austria  plans  for  its  public  sector  buildings  to  be  shining  examples,  with  energy 
performance always going beyond the legal requirements. 

Finland  plans  to  extend  its  voluntary  agreements  and  mandatory  information  and 
communication  actions,  currently  in  place  for  municipal  buildings,  to  also  cover  national 
public sector buildings and operations. 

Spain  will  introduce  programmes  to  update  obsolete  public  street  lighting  systems  with 
modern  and  more  efficient  equipment  and  also indicates energy efficiency improvements in 
the treatment and supply of drinking water. 

Through  its  Economic  Energy  Management  Programme,  Poland  is  placing  an  obligation  on 
the public sector to implement the necessary measures to achieve energy savings at a level not 
lower than the national target. 

The Netherlands aspires to be a European frontrunner in sustainable public procurement. By 
2010, 100% of national public procurement will include sustainable procurement criteria and 
50% for local and regional government. It also plans to use its purchasing power to encourage 
the  development  of  innovative  concepts,  products  and  services  in  the  housing  and  transport 
sector. 

Based on the NEEAPs, it seems that some Member States have been slow to fully embrace 
the opportunity of the public  sector to  play an exemplary role. Several Member  States  state 
that they will comply with the provisions of the Directive but do not clearly describe how. It 
is  evident  that  clear  information  is  important,  as  a  demonstration  of  the  commitment  of 
government  to  energy  efficiency.  This  would  in  turn  provide  valuable  encouragement  to 
businesses  to  invest  in  energy  efficiency  and  develop  future  markets  for  energy  efficient 
products and energy services.  

Promoting energy efficiency: awareness raising, education and training 

Member States can encourage energy savings in all sectors by raising awareness of the need 
for  taking  action  and  the  practical  possibilities  available.  The  Directive  requires  Member 
States  to  ensure  that  information  on  energy  efficiency  mechanisms  and  financial  and  legal 
frameworks is transparent and widely disseminated to relevant market actors, and to promote 
energy  end-use  efficiency.  They  should  ensure  that  information  on  best  energy  savings 
practices  is  widely  available.  Such  information  measures,  coupled  with  clear  price  signals, 
tariffs  encouraging  energy  efficiency  and  better  feedback  on  actual  consumption,  through 
improved billing and smart meters, should put end-users in a position to take better-informed 
decisions on their energy use and on taking up energy efficiency incentives.  

From  the  NEEAPs,  it  seems  that  most  Member  States  will  advocate  energy  efficiency  via 
general information campaigns and/or targeted efforts linked to incentive schemes. The Irish 

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Power  of  One  campaign  is  an  example  of  a  very  comprehensive  multi-media  campaign, 
encompassing  different  types  and  sources  of  energy;  impacts  of  inefficient  use  in  terms  of 
costs to users, the economy and the environment; best practices at home and at work; and a 
broad  array  of  communication  channels  -  press  ads,  website,  road  show,  direct  mail,  utility 
inserts,  schools  programmes,  seminars  and  sponsorship,  TV-programme,  and 
bill 
qualification, accreditation and certification schemes.  

Consumer feedback is being developed, with smart meters, improved energy bills or various 
calculators. In the United Kingdom, a carbon footprint calculator will provide consumers with 
a better view of how their energy use impacts the environment as well as suggestions on how 
consumers can reduce their energy use. Estonia is planning to improve billing information by 
providing comparative consumption data to different consumer groups for the most significant 
fuels and energy carriers. This can both raise awareness and trigger action. 

Promoting energy efficiency: providing incentives and mechanisms 

Financial and fiscal incentives 

Financial and fiscal incentives are important in reducing transaction costs and perceived risks 
associated with adopting new technologies and novel practices. The NEEAPs present an array 
of incentive programmes.21 Many are horizontal in nature, addressing more than one sector. 
Germany,  for  example,  will  expand  its  CO2  Building  Retrofit  Programme,  with  the  goal  of 
doubling  its  rate  of  thermal  retrofitting  of  buildings  from  1.3  to  2.6%  per  year  by  2016. 
Considerable expansion of passive or low energy buildings is being promoted in the private 
sector as well as at the federal, regional and local government level. As buildings account for 
40% of total final energy use, effective promotion of passive standard buildings could enable 
very high energy savings in this largest end-use sector.  

Austria has a similar buildings programme targeting both the public and the private sectors. 
This should contribute to Austria's objective of reducing its energy intensity by 5% by 2010, 
20% by 2020, compared to business-as-usual.  

Lithuania is proposing a reduced value added tax rate of 9% - the standard rate is 18% - to be 
applied  to  suppliers  of  services  relating  to  construction,  renovation  and  insulation  of 
residential  houses  financed  with  state  and  municipal  budget  resources  as  well  as  with  soft 
credits  granted  by  the  state  and  special  state  funds  for  the  building  sector.  The  Netherlands 
will put in place an Energy Investment Deduction, a tax rebate scheme for private companies, 
which  can  be  applied  to  the  purchase  or  production  of  energy  efficient  equipment  and 
sustainable energy. In 2007 Italy set up a scheme that provides for a gross tax deduction of up 
to  55%  of  the  amounts  payable  by  taxpayers  for  a  wide  range  of  equipment  such  as 
condensing boilers, A+ rated refrigerators, electric motors, lighting equipment and for energy 
efficiency building refurbishment. 

21 

Fiscal  incentives  are  important  but  not  the  only  instrument  that  can  be  used  for  promoting  energy 
efficiency,  as pointed out  in the  Communication  on  the Action  Plan for Energy  Efficiency:  Realising 
the Potential ((COM (2006) 545), price signals reflecting costs are also important for improving energy 
efficiency and for overall economic efficiency. 

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Voluntary agreements  

In  Finland,  voluntary  agreements  between  the  national  government  and  public  and  private 
sector actors are common. They currently cover around 60% of final energy use in the eight 
sectors they cover. The objective is that 90% will be covered by 2016. Government subsidised 
energy audits are used to determine the potential and set targets to be achieved. Monitoring 
and evaluation ensures bottom-up feedback on the energy savings achieved. The Netherlands 
also  uses  such  voluntary  agreements22  in  pursuit  of  energy  efficiency  improvements  in  the 
industry,  tertiary  and  agricultural  sectors.  The  Danish  “A-club”,  where  public  and  private 
organisations  commit  to  energy  efficient  procurement,  is  an  example  of  a  less  complex 
voluntary agreement.  

Spain and Poland also plan to introduce voluntary agreements as a key instrument to achieve 
energy saving in  the industrial sector.  In 2008, Romania foresees the signature of voluntary 
agreements with industrial operators. The United Kingdom will continue the Climate Change 
Agreements.  In  Ireland  the  agreements  have  a  strong  obligation  to  introduce  energy 
management. 

Market Based Instruments 

A number of Member States indicate that a major part of their saving obligation will be met 
through  the  continuation  or  expansion  of  market  based  instruments  for  the  promotion  of 
energy efficiency.  

In  the  United  Kingdom  the  Energy  Efficiency  Commitments  (EEC),  which  imposes 
obligations on energy suppliers to implement energy efficiency in the residential sector, will 
be extended until 2020. It has been renamed the Carbon Emission Reduction Target and will 
have  a  savings  target  almost  double  that  of  its  predecessor,  the  EEC,  for  the  period  2008-
2011.  In  addition  a  voluntary  cap-and-trade  scheme,  the  Carbon  Reduction  Commitment, 
which will cover large non-energy intensive sectors, and the private and the public sector, will 
be implemented.  

In  Italy  its  white  certificates  scheme  will  be  in  place  until  201423.  The  Italian  scheme  has 
resulted in the expansion of the local energy services industry. Poland is also proposing to put 
in  place  a  white  certificate  scheme  to  encourage  energy  savings  in  combination  with  an 
obligation placed on suppliers of electricity, heat or gas fuels to end users.  

Denmark places an obligation on distribution companies to achieve a fixed amount of energy 
savings each year. 

Energy Service Companies (ESCOs) 

A  number  of  Member  States  (Italy,  Spain,  Ireland,  Austria,  Poland,  and  Germany)  mention 
the  importance  of  promoting  ESCOs  and  the  use  of  performance  contracting  to  expand  the 
market  for  energy  efficiency  and  energy  services.  The  provision  of  commercial  energy 
services and a market for energy efficiency are important objectives of the Directive.  

22 
23 

In the Netherlands and Romania referred to as 'Long Term Agreements' 
The last annual target is set for 2009 but in its NEEAP the Italian government announces its intention to 
extend the scheme with a new phase after 2009.  

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Funds and funding mechanisms 

Bulgaria has established the credit facilities targeting the commercial and residential sectors 
respectively. 

Romania  has  initiated  a  national  programme  for  thermal  rehabilitation  of  multi-storey 
residential  buildings,  34%  of  the  financing  stems  from  the  national  budget,  33%  from  local 
authorities  and  33%  from  resident  associations'  maintenance  funds.  Romania  will  also 
develop bonus-type support schemes for high efficiency co-generation. 

The  United  Kingdom,  through  its  Carbon  Trust,  has  established  a  range  of  financial 
mechanisms  or  revolving  funds.  The  Trust  provides  loans  to  organisations  that  provide 
matching  funding  and  establish  a  ‘ring-fenced’  energy  efficiency  fund.  Recycled  energy 
savings are  split between  the  revolving fund and front-line services. SMEs and industry  are 
targeted in these funds. For the public sector, there is a Revolving Loan Fund (Salix).  

Promoting  energy  efficiency:  providing  the  institutional  infrastructure  to  make  it 
happen 

Providing  information,  education  and  training  requires  a  certain  institutional  structure  and 
capacity,  often  including  networks  of  public  and  private  sector  organizations,  all  working 
together to deliver energy efficiency.  

Most  Member  States  have  energy  agencies.  They  play  an  important  part  in  the 
implementation  of  energy  efficiency  policies  and  programmes.  Agency  mandates  and  scope 
differ.  For  example,  in  Denmark  the  Electricity  Saving  Trust  addresses  the  residential  and 
public sectors, mostly focusing on appliances and behaviour through campaigns and rebates. 
A new centre is being set up specifically to address energy savings in buildings. Local energy 
conservation  committees  will  coordinate  all  local  initiatives,  including  those  by  the 
distribution  companies.  In  Italy,  regional  and  local  energy  agencies  act  on  behalf  of  the 
national  government  in  the  field  of  information  and  communication.  This  is  a  decentralized 
approach allowing proximity to target groups. As there are more than 350 local and regional 
agencies in the EU, this approach could be replicated in other Member States to make better 
use of the resources that these agencies represent.  

Transport and spatial planning 

Most Member States face considerable challenges in the transport sector and many of those 
that have experienced rapid growth and heavy increase in private car ownership recognize that 
radical  measures  may  now  be  necessary  to  reverse  the  trend.  Both  Ireland  and  Austria  are 
presenting measures concerning spatial planning aiming at reducing energy use and emissions 
and improving the quality and extent of the transport infrastructure, inter alia. As part of its 
Transport  21  initiative,  Ireland  is  promoting  modal  shift  to  public  transport  through 
considerable investments in public transport services and infrastructure. It aims to strengthen 
the  relationship  between  land-use  and  transport  to  enhance  energy  efficiency  and 
sustainability of the sector. It is also implementing an energy demand management strategy, 
including the provision of specific advice on energy use and efficiency to fleet managers and 
tools to help car buyers choose more fuel efficient cars.  

Through  eco-driving  initiatives  Member  States  are  aiming  to  improve  the  fuel  efficiency  of 
vehicles, thereby reducing greenhouse gas emissions, improving road safety and reducing the 

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number  of  accidents.  Ireland,  the  Netherlands  and  the  United  Kingdom  are  all  promoting 
changes in behaviour through eco-driving initiatives.  

Lessons to be learned: 

Among the NEEAPs reviewed by the Commission, several present comprehensive strategies 
and plans that are likely to deliver savings beyond the required 9%. Some of those taking a 
forward and progressive approach admit to not knowing as yet what all the new measures will 
be  and  what  form  they  will  take.  However,  most  seem  to  present  a  business-as-usual 
approach,  not  a  staking  out  of  forward  looking  and  visionary  strategies.  Thus,  a  first 
assessment  of the  NEEAPs gives some encouragement but seems to indicate  a considerable 
gap in several Member States between the political commitment to energy efficiency, on the 
one hand, and the measures adopted or planned, as reported in the NEEAPs, and the resources 
allocated to preparing it, on the other. 

4. 

MOVING FORWARD TOGETHER - THE AGENDA  

Implementation, mutual support, stakeholder involvement 

Monitoring transposition 

In the coming months, the NEEAPs received by the Commission will be subject to analyses to 
assess  whether  they  seem  realistic  with  regard  to  achieving  the  savings  targets  identified  in 
the plans. The Commission will consult with Member States on the review of NEEAPs before 
the  assessment  is  published.  Meanwhile  the  infringement  procedure  against  the  Member 
States that have yet to notify NEEAPs continues, and the Commission will closely follow the 
further transposition of the Directive.  

Facilitating implementation 

The  Energy  Services  Directive  is  challenging,  but  potentially  very  rewarding  for  Member 
States. That is why the Commission has suggested that Member States establish a Concerted 
Action  on  the  Directive  under  the  2008  Intelligent  Energy  Europe  Work  Programme.  The 
purpose of the Concerted Action is to facilitate the exchange of experiences between Member 
States and ensure a more rapid uptake of best practices throughout the Community. It aims to 
build  capacity  and  transfer  knowledge  in  these  areas  in  order  to  reap  the  benefits  of  the 
experiences  already  gained  by  other  Member  States  and  preparing  the  ground  for  the 
development of the second NEEAPs.  

Stakeholder involvement  

The  Commission  will  launch  a  web-based  stakeholder  platform  to  gather  and  present 
stakeholder  input.  Industries  and  their  umbrella  organizations,  local  and  regional  actors,  as 
well as non-governmental organizations representing consumers and environmental interests 
all  have  an  important  role  to  play  in  the  implementation  of  the  Directive.  The  Energy 
Efficiency  Watch  project24,  co-funded  by  the  Intelligent  Energy  Europe  Programme,  and 
supported by Members of the European Parliament, will also assess NEEAPs. Their findings 
may  also  be  valuable  to  Member  States.  By  providing  knowledge  based  input,  stakeholders 

24 

http://www.energy-efficiency-watch.org/ 

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can make valuable contributions to the development and choice of Member State measures, 
thereby making sure important opportunities for realizing energy efficiency measures are not 
being  overlooked.  These  activities  taken  together  should  hopefully  contribute  to  a  smoother 
transposition  of  the  Directive  and  to  easing  the  implementation  of  Member  State  NEEAPs. 
Finally, they should also prepare the ground for the work on preparing the second NEEAPs, 
which are due to be submitted to the Commission by 30 June 2011.  

An overview of the Commission's other energy efficiency related initiatives are summarized 
in Annex 2.  

5. 

CONCLUSIONS 

NEEAPs offer an opportunity to focus on energy efficiency, an issue of strategic importance 
to  the  achievement  of  the  EU's  goals.  A  first  examination  of  the  plans  gives  some 
encouragement.  However,  it  seems  also  to  indicate  a  considerable  gap  in  several  Member 
States  between  the  political  commitment  to  energy  efficiency  and  the  measures  adopted  or 
planned, as reported in the NEEAPs, and the resources attributed to preparing it. 

Among the seventeen NEEAPs reviewed by the Commission, several present comprehensive 
strategies and plans likely to deliver savings beyond the required 9%. However, many seem to 
present a business-as-usual approach. The Commission looks forward to further plans and to 
the  exchange  of  experience  and  best  practice.  The  Commission  will  do  its  part  to  help 
Member States with their implementation of the plans.  

This focus on energy efficiency in EU energy policy is justified. Looking to global challenges 
of climate change, security of supply and development, widespread improvements in energy 
efficiency must play a fundamental role.  

Global  markets  for  energy-efficient  products  and  services  will  be  very  large,  and  players  in 
the lead markets which the EU and its Member States are constructing by their various policy 
actions will be in a strong position. In a similar way, cooperation on energy efficiency can be 
made  a  positive  force  in  international  relations.  The  Commission's  initiative  on  an 
international  platform  on  energy  efficiency  is  intended  to  help  develop  standards,  trade  and 
technology transfer.  

Progress  towards  strategic  objectives  agreed  in  March  2007  will  be  assessed  in  the  2nd 
Strategic Energy Review. The Review should help in formulating recommendations for future 
policy development, and in taking forward further work on an EU energy policy for Europe. 
This will certainly include energy efficiency. 

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ANNEX 1: Calculation of CO2 benefits from the achievement of the saving targets set by 
Energy Services Directive 

This  annex  provides  an  estimate  of  the  CO2  benefits  from  the  achievement  of  the  saving 
targets  set  by  the  Directive  with  a  perspective  towards  the  2020  objectives.  The  calculation 
assumes that all Member States use 9% less of the current final energy consumption in 2016 
compared with what they would do under business-as-usual. The reference development used 
is the PRIMES25 baseline of 2007. It includes energy and climate policies implemented in the 
Member States up to the end of 2006. As the fuel mix of the actual savings in 2016 cannot be 
known in advance, a saving of 9% is assumed for each fuel, i.e. the structure of final energy 
demand  does  not  change.  It  is  assumed  that  the  transformation  sectors  develop  as  in  the 
baseline.  

The calculations exclude energy intensive sectors, as the Energy Services Directive does not 
cover the undertakings in the European Emission Trading Scheme (ETS). Statistics on energy 
intensive  industries  also  include  energy  consumption  from  small  installations  in  energy 
intensive sectors that do not fall under the ETS. This effect is (partly) compensated for by not 
deducting  the  energy  consumption  from  armed  forces  (which  are  also  excluded  from  the 
ESD).  

With these assumptions, the CO2 benefits of achieving the 9% savings target in 2016 can be 
estimated at 275 Mt CO2 for EU-27. Assuming that energy efficiency policies along the lines 
of ESD will not cease in 2016 but continue for a few more years with roughly one additional 
percentage point saving per year gives cumulative savings of 13% for 2020. This would lead 
to CO2 savings of 393 Mt CO2 in 2020. The following table gives an overview of effects. 

Effects of end-use energy efficiency improvements through ESD  

Reduction below baseline: 

Final energy demand (Mtoe) 

CO2 emissions (Mt CO2) 

CO2 reduction as % of 1990 emissions * 

CO2 reduction below 1990 

2016 

86 

275 

6.8% 

3.6% 

2020 

124 

393 

9.7% 

4.6% 

* This number also includes the avoided CO2 emissions increase inherent in the baseline up to 2020 (e.g. 5.1% 
from 1990 level in 2020). 

It  is  important  to  note  that  the  CO2  reduction  below  the  1990  level  is  a  maximum  estimate 
given that a lot of previous action can count towards the savings target in the Directive; for 
this calculation this point is relevant for the period up to the end of 2006 (the cut-off point for 
including  policies  in  the  baseline).  Moreover,  the  baseline  has  rising  energy  prices  and  the 
effects  of  market  forces  bringing  about  some  energy  efficiency  improvements.  This  CO2 
reduction is also brought about by the effects of renewables policies in place, which together 
with market forces are expected to increase the penetration of renewables achieved so far.  

25 

European  Energy  and  Transport  –  Trends  to  2030:  update  2007  (forthcoming);  will  be  available  on 
Europa at: http://ec.europa.eu/energy/index_en.html 

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ANNEX 2: New Commission initiatives 

The  implementation  of  the  Energy  Efficiency  Action  Plan  adopted  in  October  200626  will 
continue  in  2008.  Notable  actions  already  adopted  in  2007  were  the  amended  Energy  Star 
Regulation27,  introducing  for  the  first  time  an  obligation  to  use  energy  efficiency  criteria  at 
least  as  demanding  as  the  Energy  Star  efficiency  levels  in  public  procurement  of  office 
equipment;  and  a  Green  Paper  on  urban  mobility28,  including  a  proposal  on  financing  for 
market introduction of efficient vehicles. The 3rd internal energy market package reinforces 
the  requirements  placed  on  energy  regulators  concerning  energy  efficiency.  The  Strategic 
Energy  Technology  Plan  aims  at  accelerating  the  development  of  promising  energy 
technologies  and  creating  the  conditions  to  bring  such  technologies  to  market.  On  19 
December  2007,  the  Commission  adopted  a  proposal  for  a  Regulation  on  emission 
performance standards for new passenger cars29.  

In 2008 and 2009 the Commission intends adopting a number of initiatives of importance to 
energy efficiency. 

A  Communication  on  Sustainable  Production  and  Consumption  and  Sustainable  Industrial 
Policy  will  present  an  integrated  strategy  to  help  the  EU  economy  become  more 
environmentally  sustainable  and  competitive.  In  2008,  the  Commission  intends  to  adopt 
energy  performance  requirements  and/or  labelling  measures  for  the  following  product 
groups: public street lighting and office lighting equipment, stand-by and off-mode electricity 
losses,  external  power  supplies,  simple  set  top  boxes  for  digital  reception.  In  2009,  it  also 
intends submitting for vote in the regulatory committee televisions, domestic refrigeration and 
freezers,  washing  machines,  dishwashers,  boilers  and  water  heaters,  personal  computers, 
imagining equipment, commercial refrigeration, electric motors, pumps and fans. A measure 
on domestic lighting (incandescent bulbs) is scheduled for adoption in early 2009. 

The  Commission  Communication  entitled  "Addressing  the  challenge  of  Energy  Efficiency 
through Information and Communication Technologies" showing how ICT can be an enabler 
in improving energy efficiency in a number of sectors will be issued in early 2008.  

Measures  addressing  vehicles  will  include  a  revision  of  the  Directive  on  car  labelling30, 
legislative initiatives regarding minimum efficiency requirements for mobile air-conditioning 
systems, the compulsory fitting of tyre pressure monitoring systems, setting maximum rolling 
resistance limits for tyres, and the use of gear shift indicators. 

A proposal for a recast of the Directive on the Energy Performance of Buildings31 will aim at 
strengthening  and  specifying  some  of  its  requirements  (e.g.  performance  certificates  and 
minimum  energy  performance  requirements  for  new  and  existing  buildings  which  undergo 
major  renovation)  while  taking  account  of  feasibility  of  implementation  by  the  Member 
States.  

26 
27 
28 
29 
30 
31 

Action Plan for Energy Efficiency: Realising the Potential COM(2006)545 Final 
Regulation No 2422/2001 on a Community energy efficiency labelling programme for office equipment 
COM (2007) 551 
COM (2007) 856 
Directive 1999/94/EC 
Directive  2002/91/EC  of  the  EP  and  Council  on  the  Energy  Performance  of  Buildings,  OJ  L  1, 
4.1.2003, p.65 

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A Commission Decision on detailed guidelines for Directive 2004/08/EC on the promotion of 
cogeneration  and  a  Communication  on  the  implementation  of  Directive  2004/08/EC  on  the 
promotion of cogeneration will be issued.  

The  Commission  will  review  the  Energy  Taxation  Directive  to  facilitate  more  targeted  and 
coherent  use  of  energy  taxation  by  integrating  notably  energy  efficiency  considerations  and 
environmental aspects. It will also consider costs and benefits of tax credits as incentives for 
enterprises  to  produce  more  energy-efficient  appliances  and  for  consumers  to  promote  the 
purchase of such appliances and equipment. 

To  improve  energy  efficiency  in  industrial  installations,  a  Reference  document  on  Best 
Available  Techniques  regarding  Energy  Efficiency  will  be  adopted  in  2008  under  the  IPPC 
Directive32.  The  Commission  will  also  revise  its  Community  eco-management  and  audit 
scheme  (EMAS).  This  voluntarily  management  tool  requires  reporting  on  and  continuous 
improvement  of  environmental  performance,  including  energy  consumption  in  public  and 
private organisations.  

The  Commission  foresees  the  adoption  of  a  Communication  on  green  public  procurement 
setting targets and the establishment of a process for identifying environmental specifications 
to be used in tender documents. It will include energy efficiency related criteria.  

The Covenant of Mayors will bring together mayors of pioneering EU cities with the aim of 
exchanging  and  applying  good  practices  improving  energy  efficiency  significantly  in  the 
urban environment, where local action is essential. Many more initiatives promoting energy 
efficiency and sustainable transport, including changing energy behaviour will be supported 
by the Intelligent Energy-Europe programme as part of the CIP.  

In  contrast  to  action  at  the  local  level,  the  launch  of  the  International  Platform  on  Energy 
Efficiency  will  focus  and  contribute  to  strengthening  energy  efficiency  world-wide,  by 
facilitating  closer  co-operation  between  both  developed  and  developing  countries  on  energy 
efficiency  measurement,  standards  and  evaluation,  labelling  and  certification,  energy  audits, 
stand-by losses, codes of conduct, and more.  

The new initiatives for 2008-2009 are included in the list below. 

Commission energy efficiency related actions for 2008 - 200933 

•  Proposal for a recast of the Directive on the Energy Performance of Buildings34 
•  Proposal for a revision of the framework Energy Labelling Directive35: 
•  Eco-design36  implementing  measures  (Commission  Regulations)  setting  minimum 
energy performance requirements for 6 product groups, including a horizontal measure 
on the standby and off-mode consumption of electrical appliances. 

•  Working Plan setting out for the following 3 years the list of product groups which will 

32 
33 
34 

35 

36 

Council Directive 96/61/EC on Integrated Pollution Prevention and Control 
The order of the actions does not reflect priority. 
Directive 2002/91/EC of the EP and Council on the Energy Performance of Buildings, OJ L 1, 
4.1.2003, p.65 
Council Directive 92/75/EEC on the indication by labelling and standard product information of the 
consumption of energy and other resources by household appliances, OJ L 297, 13.10.1992, p.16 
Directive 2005/32/EC of the EP and Council establishing a framework for the setting of eco-design 
requirements for Energy-using products, OJ L191, 22.7.2005, p.29 

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be considered as priorities for Eco-design implementing measures 

•  Review of the Energy Taxation Directive to facilitate more targeted and coherent use 
of  energy  taxation  by  integrating  notably  energy  efficiency  considerations  and 
environmental aspects. 

•  An examination, in the framework of the debate launched on VAT reduced rates, of the 

effectiveness of VAT reduced rates in some circumstances. 
•  Launch of the International Platform on Energy Efficiency.  
•  Launch of the Covenant of Mayors. 
•  Commission  Decision  on  detailed  guidelines  for  Directive  2004/08/EC  on  the 

promotion of cogeneration 

•  Commission  Communication  on  the  implementation  of  Directive  2004/08/EC  on  the 

promotion of cogeneration 

•  Proposal aiming at the reduction of CO2 emission from light-duty vehicles.  
•  Revision of the Directive on car labelling37 

•  Proposal for a Regulation regarding minimum efficiency requirements for mobile air-
conditioning  systems,  the  compulsory  fitting  of  tyre  pressure  monitoring  systems, 
setting maximum rolling resistance limits for tyres, and the use of gear shift indicators. 

•  Commission  Communication  on  Sustainable  Production  and  Consumption  and 

Sustainable Industrial Policy (SCP-SIP)  

•  Commission Communication "Addressing the challenge of Energy Efficiency through 

Information and Communication Technologies 

•  Commission  Decision  establishing 

the  2008  Intelligent  Energy-Europe  Work 

Programme  

•  Reference Document on Best Available Techniques regarding energy efficiency for 

industrial installations under the IPPC Directive38 

•  Commission Communication on green public procurement 
•  Revision of the EMAS Regulation39 
•  2nd Strategic Energy Review  

37 
38 
39 

Directive 1999/94/EC 
Council Directive 96/61/EC on Integrated Pollution Prevention and Control 
Regulation  EC  No761/2001  allowing  voluntary  participation  by  organisations  in  a  Community  eco-
management and audit scheme (EMAS) 

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