COMMISSION STAFF WORKING PAPER Progress report of the Energy Efficiency Action Plan 2006   Accompanying document to the   COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS   Energy Efficiency Plan 2011   COM(2010) 109 final
Date: 2011-03-08
Institutions: European Commission
Subjects: consumer, energy consumption, energy policy, energy saving, energy transport, financial aid, innovation

EN 

EN 

   EN 

 
 
EUROPEAN COMMISSION 

Brussels, 8.3.2011 
SEC(2011) 275 final 

COMMISSION STAFF WORKING PAPER 

Progress report of the Energy Efficiency Action Plan 2006 

Accompanying document to the 

COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN 
PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL 
COMMITTEE AND THE COMMITTEE OF THE REGIONS 

Energy Efficiency Plan 2011 

COM(2010) 109 final 

EN 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
PROGRESS REPORT OF THE ENERGY EFFICIENCY ACTION PLAN 2006 

TABLE OF CONTENTS 

2.5. 

1. 
2. 
2.1. 
2.2. 
2.3. 
2.4. 

EEAP 2006: Structure and objective ........................................................................... 3 
Achievements in the ten priority actions...................................................................... 4 
Priority action 1: Making products more energy efficient ........................................... 5 
Priority action 2: Making buildings more energy efficient........................................ 10 
Priority action 3: Making power generation and distribution more efficient ............ 14 
Priority action 4: Energy efficiency in transport through higher fuel efficiency of  
cars ............................................................................................................................. 19 
Priority action 5: financing energy efficiency investments for SME and Energy 
Service Companies (ESCOs) ..................................................................................... 25 
Priority action 6: spurring energy efficiency in the new Member States................... 29 
2.6. 
Priority action 7: a coherent use of taxation .............................................................. 33 
2.7. 
Priority action 8: raising energy efficiency awareness .............................................. 35 
2.8. 
Priority action 9: Energy Efficiency in built-up areas ............................................... 39 
2.9. 
Priority action 10: Fostering energy efficiency worldwide........................................ 40 
2.10. 
Achievements in energy services ............................................................................... 43 
3. 
Main objectives of the Energy Services Directive..................................................... 43 
3.1. 
Level of implementation ............................................................................................ 44 
3.2. 
Expected impact of the Energy Services Directive.................................................... 45 
3.3. 
Overall assessment ..................................................................................................... 46 
3.4. 
Overall contribution of the energy efficiency action plan ......................................... 47 
4. 
General achievements and limitations ....................................................................... 47 
4.1. 
4.2. 
Contribution of the EEAP to the energy saving objective in 2020 ............................ 48 
4.3.  Way forward – A new Framework on Energy Efficiency Policies............................ 48 

Annex 1: Status of EEAP implementation by measure (as of October 2010) ......................... 50 

EN 

2 

   EN 

 
 
 
 
In the light of Europe's 2020 energy and climate goals, political leaders committed in 2007 to 
reduce by 20%1 the EU's primary  energy consumption compared to  a projection.2 Ahead of 
Member States' political endorsement, the Commission had already tabled in October 2006 an 
Action Plan for Energy Efficiency (EEAP 2006)3 as a first major step towards achieving the 
20% energy saving potential. A midterm review of this Action Plan was foreseen to assess the 
progress achieved. 

The aim of the following report is to present the progress realized with the implementation of 
the  Action  Plan  until  the  end  of  the  third  quarter  of  2010.  It  will  focus  on  the  ten  priority 
actions put forward by the Commission. 

Emerging  strengths  and  flaws  of  the  Plan  and  of  its  measures  will  be  identified  and 
conclusions will be drawn, serving as valuable input for the new European energy efficiency 
plan. 

1. 

EEAP 2006: STRUCTURE AND OBJECTIVE 

Building  on  the  experience  gained  with  a  first  Energy  Efficiency  Action  Plan4  adopted  in 
2000,  the  Commission  tabled  in  2006  a  more  detailed  and  all  encompassing  second  Energy 
Efficiency Action Plan for implementation between 2006 and 2012. 

The objective of the EEAP 2006 was 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".  It  also  aimed  at 
encouraging citizens to use energy in the most rational manner. 

The EEAP is structured into six priority areas covering the main energy-using sectors under 
which  85  (sub-)  measures  are  grouped.  Ten  priority  actions  were  selected  to  be  initiated 
immediately  and  implemented  as  soon  as  possible  for  maximum  effect  (see  table  1).  The 
portfolio of measures proposed is comprehensive although heterogeneous in terms of 

•  type  (e.g.  regulatory,  market-based,  fiscal,  support  and  information  as  well  as 

voluntary instruments), 

•  sectors  addressed  (buildings,  products,  services,  energy  transformation  and 

distribution, transport) 

•  level of implementation (EU, national, regional, city) and 

•  stakeholders involved (governments, private sector, citizens). 

1 

2 
3 
4 

This cost-effective saving potential has been previously estimated by the Commission in its 2005 Green 
Paper on Energy Efficiency. See COM(2005) 265 final. 
7224/1/07 REV 1: Presidency Conclusions of the European Council of 8/9 March 2007 
COM(2006) 545 final 
COM(2000) 247 final 

EN 

3 

   EN 

 
 
                                                 
In  addition  to  the  sectoral  approach,  cross  cutting  issues  such  as  energy  related  behaviour, 
financing and international cooperation are addressed. This all-encompassing approach of the 
Action  Plan  reflects  the  complexity  of  tackling  energy  efficiency  through  policies  and 
measures. 

Table 1: Structure of the Energy Efficiency Action Plan 2006 

85 (sub-) measures 

6 priority areas 

10 priority actions 

SECTORS 

•  Regulatory instruments 

Energy-using products 
Energy services 

•  Economic & market-
based instruments 

Residential, commercial & 
public buildings 
Energy transformation 

•  Information & support 

programs 

•  Voluntary actions 

Transport 

Financing 

HORIZONTAL ISSUES 

(1)  Appliance & equipment & 

minimum energy performance 
standards 

(2)  Building performance requirements 
and very low energy buildings 
(3)  Making power generation and 
distribution more efficient 
(4)  Achieving fuel efficiency of cars 

(5)  Facilitating financing of energy 

efficiency investments for SME and 
Energy Services Companies 
(6)  Spurring energy efficiency in the 

new MS 

(7)  Coherent use of taxation 
(8)  Raising energy efficiency awareness 
(9)  Energy efficiency in cities 
(10)  Foster energy efficiency worldwide 

Economic incentives 

Energy pricing 
Energy behaviour 

International partnerships 

At  the  time  of  adoption,  it  was  estimated  that  the  full  implementation  of  the  measures 
proposed have the potential to reduce primary energy consumption by approximately 14% in 
20205 compared to a projection. It is worth noting, that the Action Plan itself does not aim at 
reducing  energy  consumption  by  20%  in  2020.  To  the  contrary,  it  states  that  further  action 
would subsequently be required to reach this goal by 2020. 

2. 

ACHIEVEMENTS IN THE TEN PRIORITY ACTIONS 

EEAP  2006  defined  ten  priority  actions  covering  the  main  energy-using  sectors  and  key 
horizontal issues. As mentioned in the introduction, this assessment of the EEAP will focus 
mainly on the achievements in these ten priority actions. 

The findings presented in this report are mainly based on input provided by COM services.6 
The objective is to provide an appraisal of the progress achieved with the implementation of 
the priority actions. Quantification will be made wherever possible and meaningful, based on 
expected impacts calculated in impact assessment analysis. Quantifications will be adjusted as 
best as possible, based on the observed implementation reality. It is important to understand 
the  quantifications  provided  as  rough  estimates  which  cannot  simply  be  added  to  give  an 
overall impact. It is proposed to look at the progress made in each priority action separately 
and  to  provide  an  overall  assessment  of  the  EEAP's  impact  based  on  the  energy  model 
PRIMES. 

5 
6 

SEC(2006) 1174, SEC(2006) 1175 
Interservice Steering Group on Energy Efficiency and Joint Research Center of the Commission  

EN 

4 

   EN 

 
 
 
 
 
                                                 
A  question  into  which  this  assessment  will  not  look  further  is  whether  the  absolute  energy 
savings realised by energy efficiency gains in buildings, products, cars, etc. could be possibly 
offset  by  growing  disposable  incomes  translating  inter  alia  into  more  products  and  cars 
owned, and increases in thermal comfort, leisure activities and travelling distances. This is the 
so-called  "rebound"  effect.  It  has  been  assessed  that  for  most  consumer  energy  services  in 
OECD countries, this effect is unlikely to exceed 30%.7 As this effect would be relevant for 
every energy efficiency improvement measure and its order of magnitude depends strongly on 
the end-use sector, policy makers should in general reflect on it when designing policies, but 
this aspect will not be taken into account in this evaluation exercise. 

2.1. 

Priority action 1: Making products more energy efficient 

Households  consume  approximately  a  quarter  of  total  final  energy  and  30%  of  total 
electricity.  Heating  systems,  cold  appliances  (refrigerators  and  freezers),  lighting  and  water 
heating systems are responsible for more than half of the electricity consumed in households.8 
Energy  consumption  can  be  significantly  lowered  in  a  cost-effective  way  through  a  set  of 
policies  transforming  the  market  towards  more  energy  efficient  products.  The  setting  of 
minimum  efficiency  and  labelling  requirements  is  widely  recognized  as  one  of  the  most 
effective policy tools in the area of energy efficiency. 

Against  this  background,  the  Action  Plan  defined  as  its  first  priority  action  for  the 
Commission  to  update  the  labelling  and  energy  performance  standards  for  appliances  and 
other energy-using products on the basis of the Labelling and Ecodesign Directives. To this 
end, the Commission committed to: 

•  Adopt ecodesign requirements for 14 priority product groups9 with a view to having all of 

them approved by the end of 2008 (2.1.1); 

•  Revise the Framework Directive 92/75/EC on Labelling to reinforce its effectiveness and 

to upgrade the existing Labelling classifications (2.1.2). 

The  labelling  and  the  setting  of  minimum  energy  performance  standards  for  products  are 
complementary policies, i.e. products covered by implementing measures adopted under the 
Ecodesign Directive are generally mirrored in the implementing measures adopted under the 
Energy  Labelling  Directive.  This  leads  to  reinforced  impacts  of  the  two  legal  instruments 
since  minimum  standards  drive  out  poorly  performing  energy  products  from  the  markets, 
while  labels  provide  transparency  and  information  to  consumers,  indirectly  encouraging 
innovation and development of best performers. 

2.1.1.  Selected eco-design requirements for 14 product groups 

The  Ecodesign  Directive  (2009/125/EC)  provides  the  framework  for  setting  minimum 
performance  requirements  for  environmental  aspects  of  energy-using  and  energy-related 
products  that  are  placed  onto  the  market.  Although  products  are  assessed  with  a  lifecycle 
perspective, energy consumption during use is generally the main environmental impact of the 
product.  The  requirements  for  each  product  are  set  by  means  of  implementing  measures 

7 

8 

9 

UK ERC (2008): The Rebound Effect: an assessment of the evidence for economy-wide energy savings 
from improved energy efficiency. 
Bertoldi,  P.  and  Atanasiu,  B.  (2009):  Electricity  consumption  and  efficiency  trends  in  the  European 
Union - Status Report 2009. European Commission, JRC Ispra. 
Product  groups:  Boilers,  water  heaters,  computers,  imaging,  televisions,  standby,  chargers,  office 
lighting, street lighting, room air, motors, cold commercial, cold domestic and washing. 

EN 

5 

   EN 

 
                                                 
adopted  by  the  Commission  assisted  by  a  regulatory  committee  (pre-Lisbon  legislation). 
Implementing measures are Commission regulations which are directly applicable and do not 
require  transposition  into  national  law.  National  authorities  are  responsible  for  market 
surveillance.  These  authorities  verify  that  all  products  (including  imports)  placed  on  the 
market and/or put into service meet the specific ecodesign requirements for that product. 

The implementing measures seek to target both manufacturers and consumers, by promoting 
better  product  design  that  will  result  in  improved  environmental  performance,  lower  energy 
consumption,  and  ultimately  lower  costs.  Thus,  the  individual  measures  either  directly  or 
indirectly affect all EU citizens as well as virtually all EU industry or retail sectors through 
the design, manufacture, sale and use of products covered by the requirements. 

The original Ecodesign Directive (2005/32/EC) has been transposed by all Member States and 
the  transposition  of  its  2009  recast  will  necessitate  a  mere  adaptation  of  national  law.  As  it 
stands today, the implementation of the Ecodesign Directive is progressing well. In line with 
the  requirements  defined  in  priority  action  1  of  the  EEAP,  implementing  regulations  have 
been  adopted  in  9  of  the  selected  14  priority  groups,  covering  domestic,  industrial  and 
commercial appliances. 

The  expected  savings  achieved  by  the  implementation  of  the  Ecodesign  Directive  and  its 
implementing  measures  in  2010  are  negligible.  This  is  due  to  the  fact  that  the  ecodesign 
measures are largely starting to enter into effect from 2010 onwards and will then take some 
years for their effect to be felt fully (as existing products are replaced during their normal life-
cycles).  Nonetheless,  some  products  meeting  ecodesign  requirements  will  already  be  on  the 
market in advance of mandatory implementation dates, delivering environmental benefits. It 
should be noted that energy saving gains from the purchasing of energy-efficient appliances 
will  have  a  cumulative  effect  and  are  not  simply  'one-off'  savings  –  thus,  earlier 
implementation  of  standards  by  industry  is  of  added  value.  Certain  measures  such  as 
requirements  for  the  standby  consumption  of  electric  appliances  will  also  have  an  effect 
beyond  the  EU  as  manufacturers  of  goods  traded  worldwide  will  implement  the  same 
technology on all their models irrespective where they will be shipped. 

The implementation of the nine measures adopted thus far has been estimated to deliver up to 
341 terawatt hours (TWh) of energy savings by 2020 (equating to 70 million tonnes of oil 
equivalent  (Mtoe)  primary  energy  savings10),  which  is  equivalent  to  circa  12%  of  the 
current EU's total electricity consumption. The estimated savings are detailed in table 2. 11 

These  saving  figures  include  the  combined  effect  of  Ecodesign  and  labelling  as  well  as 
installation  requirements  under  the  Recast  Energy  Performance  of  Buildings  Directive12, 
where  applicable.  These  energy  savings  will  be  supplemented  as  further  implementing 
measures are adopted. For 2010 and 2011, priority implementing measures covering boilers, 
water heaters and air conditioners will be adopted, estimated to generate savings of a further 
102 Mtoe in 2020, if all are adopted in full. 

10 

11 
12 

The conversion from final electricity consumption expressed in TWh into primary energy consumption 
expressed in Mtoe is based on the generally accepted assumption that there is a 40% efficiency rate for 
the  generation  and  transmission  of  electricity.  1  TWh  electricity  consumption  =  2,5  TWh  primary 
energy consumption = 0,215 Mtoe. 
See results of studies carried out at: http://ec.europa.eu/energy/efficiency/studies/ecodesign_en.htm 
2010/31/EU 

EN 

6 

   EN 

 
                                                 
Table 2: Adopted implementing measures ranked by expected savings in 2020 

Implementing measure 

Regulation 

1. Electric motors 
2. Televisions 
3. Street & office lighting 
4. Domestic lighting 
5. Standby & off mode electrical power consumption 
6. Glandless circulators 
7. External power supplies 
8. Domestic fudges & freezers 
9. Simple set-top boxes 

640/2009 
624/2009 
245/2009 
244/2009 
1275/2008 
641/2009 
278/2009 
643/2009 
107/2009 

Date of 
application13 

16.06.2011 
20.08.2010 
13.04.2010 
01.09.2009 
08.01.2010 
01.01.2013 
27.04.2010 
01.07.2010 
25.02.2010 

TOTAL 

Estimated 
savings by 
2020, TWh 
140 
43 
38 
37 
35 
27 
9 
6 
6 
341 

Source: http://ec.europa.eu/enterprise/policies/sustainable-business/ecodesign/product-groups/index_en.htm 

2.1.2. 

Implementation and revision of the Labelling Directive 

The  Labelling  Directive  92/75/EEC  requires  manufacturers  to  declare  the  energy  efficiency 
class of their  product  and  to  have it  displayed by  means  of  a  label  at  the  point of sale (e.g. 
shops). With the Labelling Directive, the energy label became a key instrument for fostering 
energy efficient products. 

The labelling classes for each type of appliance are set by means of implementing measures 
adopted  by  the  Commission.  The  measures  seek  to  target  consumers  by  providing  potential 
purchasers of household appliances with comparable and credible standardised information on 
the actual efficiency performance of the products when in use. This helps consumers to make 
an  informed  purchasing  decision.  It  thus  indirectly  targets  manufacturers  who  will  be 
influenced by the effects that the labelling has on sales of designs. 

The  framework  Directive  has  applied  from  July  1993.  Implementation  of  the  Labelling 
Directive  has  proven  to  be  so  successful  in  stimulating  manufacturers  to  build  class  A 
appliances that higher classes are needed for most appliances. Thus, it can be shown that, as a 
direct result of this legislation, manufacturers have brought onto the market energy-efficient 
products.14 The model of labelling has been copied by other countries worldwide, suggesting 
that the measure is effective. 

In  addition  to  the  implementation  of  the  Labelling  Directive,  the  Commission  proposed  its 
recast as a priority for immediate action, with the aim of: 

•  Extending  its  scope  beyond  household  appliances  to  include  industrial  and  commercial 

equipment; 

•  Extending  its  scope  to  energy-related  products  (those  which  do  not  consume  energy  but 

contribute to energy conservation when in use (e.g. insulated windows); 

13 

14 

The  dates  are  related  to  the  time  of  application  of  the  first  stage  requirement.  The  multiple  dates  of 
application,  ranging  between  end  2009  and  beginning  2013,  allow  performance  requirements  to  be 
raised on an incremental basis and industry to adapt product design. 
For  the  successful  market  transformation  towards  higher  penetration  rates  of  energy  efficient  cold 
appliances,  washing  machines  and  dishwashers  see  Bertoldi,  P.  and  Atanasiu,  B.  (2009):  Electricity 
consumption and efficiency trends in the European Union - Status Report 2009. European Commission, 
JRC Ispra. 

EN 

7 

   EN 

 
                                                 
•  Upgrading existing labelling classifications; 
•  Linking the Directive to public procurement; 
•  Strengthening provisions linked to advertisement. 

With the recast Directive 2010/30/EU adopted by the European Parliament in May 2010, the 
scope  of  the  Energy  Labelling  Directive  has  been  aligned  with  the  scope  of  the  revised 
Ecodesign Directive, which was already extended to energy-related products in 2009. In line 
with the priority action defined by the EEAP, the recast of the Labelling Directive extends the 
new  labelling  scheme  to  a  wider  range  of  products  in  the  commercial  and  industrial  sector, 
including  energy-using  and  energy-related  products.  It  is  also  the  legal  basis  to  extend  the 
scope  to  other  consumer  products  such  as  televisions,  water  heaters  and  boilers.  With  the 
adoption of the revision the existing labelling classification for each product will be upgraded 
through delegated acts. The revision sets out that the label is to be based on a A to G scale, a 
maximum  of  3  more  classes  may  be  added  on  top of class  A and these  new  classes will  be 
named A+, A++ and A+++. 

Figure 1: New label layout for washing machines 

The  following  delegated  acts  for  the  household  sector  were  adopted  by  the  Commission  in 
September 2010:  

•  Televisions 
•  Household electric refrigerators, freezers and their combinations 
•  Household washing machines and dishwashers 

In  the  course  of  2011  delegated  acts  on  boilers,  air-conditioners,  water  heaters  and  laundry 
dryers will follow. An updated label on lighting will be adopted in 2011. 

Future products to be legislated in the near future are e.g. commercial refrigerators, vending 
machines and display cabinets in the commercial sector. 

It is estimated that the full implementation of the Labelling Directive results in energy savings 
corresponding to 27 Mtoe annually by 2020. 

EN 

8 

   EN 

 
 
The  EU's  energy  labelling  requirements  can  lead  to  some  increase  in  operating  costs  for 
manufacturers  and  retailers.  However,  at  least  in  the  case  of  white  goods  manufacturing, 
operations have become more profitable, costs reduced and the efficiency improved with help 
of technological development and guidance towards more efficient and profitable appliances 
by  the  energy  label,  despite  the  fears  of  manufacturers  when  the  policy  action  was  initially 
introduced in the nineties.15 

2.1.3.  Making products more energy efficient: overall assessment of the priority action 

The first priority action has been initiated and implemented with success, though with some 
delays  regarding  the  original  timeline  for  the  adoption  of  the  ecodesign  requirements.  This 
delay was mainly due to an overly ambitious time table given the available resources. It will 
have  a  substantial  impact  by  2020.  The  impact  could  be  further  enhanced  with  appropriate 
information  on  products  running  costs  to  consumers  inter  alia  with  trained  salespersons  in 
retail shops. 

Two  possible  issues  could  reduce  the  expected  impact  of  European  product  policies:  the 
rebound  effect  and  the  absence  of  proper  enforcement  (market  surveillance)  by  Member 
States (MS) to ensure that products placed on their national markets meet the ecodesign and 
energy  labelling  requirements.  For  the  second  issue,  an  administrative  cooperation  group 
between  MS  market  surveillance authorities has been set up  by the Commission in order to 
ensure a proper enforcement of this policy. The rebound effect will be difficult to overcome, 
as it is inherent to any policy measures tackling efficient uses of energy in products and not 
energy behaviours, i.e. limiting the quantity of products used. 

Further  work  will  be  carried  out  in  the  next  years  to  prepare  and  adopt  further  ecodesign 
implementing measures for additional product groups, reflecting inter alia the 2009 revision 
of the Ecodesign Directive to cover energy-related products, i.e. products which can directly 
or indirectly affect energy consumption. As a complementary policy, labelling requirements 
for the same product groups will be adopted in parallel whenever possible and meaningful. 

2.1.4.  Other product related measures 

In  addition  to  the  measures  explicitly  mentioned  as  priority  actions,  other  product  related 
measures were put forward by the EEAP 2006 and implemented: 

•  The  implementation  and  amendment  of  the  Energy  Star  Agreement  on  office  equipment 
has been finalized. A new 5-year Energy Star Agreement was concluded between the EU 
and the US in the end of 2006. The impact of the Programme has been reinforced by the 
provisions  of  Regulation  (EC)  106/2008  which  obliges  central  government  authorities  of 
Member  States  and  EU  institutions  to  procure  equipment  not  less  efficient  than  Energy 
Star. Criteria for computers, displays and imaging equipment have been strengthened and 
are  expected  to  trigger  about  30  TWh  annual  savings  by  2020.  Criteria  for  additional 
product  groups,  including  servers,  data  storage,  and  small  network  equipment  are  being 
developed and should become applicable in 2011 and 2012. 

•  The adoption of voluntary agreements with manufacturers on ecodesign requirements for 
the  product  groups  of  complex  set-top  boxes,  imaging  equipment,  machine  tools  and 

15 

SEC(2008) 2862 

EN 

9 

   EN 

 
                                                 
medical imaging equipment is on the way. A first agreement on complex set-top boxes is 
about to be finalized. 

2.2. 

Priority action 2: Making buildings more energy efficient 

Energy  used  in  residential,  commercial  and  public  buildings  for  space  and  water  heating, 
cooling, ventilation, lighting, etc. makes up 40% of the EU's final energy consumption. The 
major  Community  legislation  addressing  the  energy  performance  of  buildings  is  the  Energy 
Performance  of  Buildings  Directive  (EPBD)  of  2002.  The  Action  Plan  tackles  energy 
efficiency  in  buildings  by  pushing  for  the  full  implementation  of  the  EPBD  and  by  putting 
forward  its  revision  -  as  the  second  priority  action.  To  this  end,  the  EEAP  included  the 
following measures to make buildings more energy efficient: 

•  Expanding substantially the scope of the Directive to include the majority of buildings; 
•  Proposing EU minimum performance requirements for new and renovated buildings; 
•  Developing  in  collaboration  with  the  buildings  sector  a  strategy  for  very  low  energy  or 

passive houses by the end of 2008; 

•  Setting a good example by leading the way, as far as the Commission's own buildings are 

concerned. 

Before  considering  progress  achieved  in  the  realisation  of  this  second  priority  action,  it  is 
necessary  to  provide  an  overview  of  the  implementation  status  of  the  2002  EPBD,  as  one 
important measure of the Action Plan and as a logical element leading to its recast. 

2.2.1. 

Implementation status of 2002 Energy Performance of Buildings Directive 

The Energy Performance of Buildings Directive (2002/91/EC) was adopted in 2002. Its main 
objective is the promotion of cost-effective improvement in the overall energy performance of 
buildings,  whilst  taking  into  account  local  conditions  and  requirements.  It  covers  energy 
needs for space and water heating, cooling, ventilation and lighting. It does not fix concrete 
EU-wide  minimum  energy  performance  requirements,  but  obliges  MS 
to  define 
comprehensive methodologies, requirements and inspection and certification regimes to rate 
the energy performance of buildings at a national/regional level. 

MS  had  to  transpose  the  Directive  by  January  2006.  For  certain  provisions,  an  additional 
period of three years could be applied, i.e. until January 200916, which most MS opted for. In 
practical  terms  MS  thus  had  effectively  up  to  7  years  to  fully  implement  this  legislation. 
Despite  this  long  period  of  time,  EPBD  implementation  has  to  be  seen  as  in  continuous 
progress since not all countries have yet fulfilled all the requirements to their full extent. As a 
result  of  a  thorough  conformity  check  analysis  carried  out  by  the  Commission  on  the 
transposition of the Directive in national legislation, clarification needs have been identified 
in 15 MS. 

When considering impacts achieved, one of the key merits of the EPBD has been to bring the 
relevance  of  energy  efficiency  in  buildings  onto  political  agendas,  integrate  it  into  building 
codes  and  improve  its  visibility  for  citizens.  Implementing  the  EPBD  has  been  a  major 
challenge for many MS. Indeed, prior  to  its adoption in 2002, about ten Member States did 

16 

Upon notification to the Commission, MS could, because of lack of qualified and/or accredited experts, 
have an additional period of three years to apply fully the provisions of Articles 7, 8 and 9 (i.e. until 
4.1.2009). 

EN 

10 

   EN 

 
                                                 
not have regulations in place addressing energy consumption in buildings. There are several 
countries with success stories showing a major change in the energy performance of their new 
building  stock  as  well  as  regarding  market  uptake  of  innovative  systems  and  technologies, 
where the EPBD regulations have had a catalysing effect.17 It is very likely that in the absence 
of the EPBD, the situation would have remained in most MS as it was prior to 2002.18  

The following major achievements have been triggered by the adoption of the EPBD: 

•  Establishment  of  a  common  understanding  among  all  27  MS  on  how  to  set  minimum 
energy  performance  requirements19  and  on  how  to  calculate  the  energy  performance  of 
buildings; 

•  Average tightening of energy performance requirements by 15 % to 30%;20 
•  Improved comfort level and indoor air quality in houses; 
•  Development of 31 building related CEN standards, which can be promoted internationally 
and facilitate market entrance for European companies in e.g. China, India and the US. The 
EPBD  is  perceived  as  the  most  ambitious  and  comprehensive  building  legislation 
worldwide; 

•  Introduction  of  a  Concerted  Action21  to  assist  MS  in  their  implementation  process  and 
facilitate  the  exchange  of  best  practices  and  lessons  learned  in  this  complex  and 
fragmented area; 

•  Enhanced  data  collection  on  the  quality  of  the  EU  building  stock  through  the  certificate 

scheme.  

Alongside  the  positive  developments  witnessed  in  the  buildings  sector  across  Europe,  it  is 
also important to draw the attention to the main shortcomings identified in the implementation 
process of the Directive as well as in the legal provisions themselves, which led to delays in 
transposition: 22 

•  Ambiguous  formulations  of  some  legal  provisions  in  the  Directive  lead  to  different 

implementation practice in the MS; 

•  Limited  scope  of  the  Directive:  in  relation  to  renovation23  it  addresses  only  28%  of  the 

existing buildings stock;24 

•  Some MS were not well prepared to meet the level of complexity set out in the Directive; 

this led to limited or insufficient resources foreseen for implementation; 

•  Low level of ambition in the implementation process;25 

17 

18 

19 

20 
21 

22 

23 

24 

for  building  elements  and  kWh/m²  values 

For a country specific assessment of EPBD implementation see EC (2008): EPBD Buildings Platform - 
Country reports 2008. 
This  assessment  is  confirmed  by  many  stakeholder  associations  in  their  reports,  e.g.  the  report  of  the 
Royal  Institution  of  Chartered  Surveyors  (RICS)  "Towards  an  Energy  Efficient  European  Building 
Stock" of December 2009. 
U-values  are  now  commonly  used 
refurbishments/new built. 
INIVE (2010): Stimulating increased energy efficiency and better buildings ventilation, p. 118. 
It  has  been  initiated  in  2005.  This  network/platform  had  a  positive  impact  on  effective,  speedy  and 
powerful implementation of the provisions of the 2002 EPBD.  
See  SEC(2008)  2864;  eceee  (2009):  eceee  views  on  the  Energy  Performance  of  Buildings  Directive 
recast proposal. 
EPBD provisions call on MS to require that certain minimum energy performance levels are met when 
existing  buildings  above  1000  m2  undergo  a  major  renovation.  However,  in  a  number  of  Member 
States, this 1000 m2 threshold has been lowered or abolished so that all buildings that undergo major 
renovation have to fulfil certain energy performance requirements. 
Reference to the building stock of EU-15, as the EPBD was adopted in 2002. 

full 

for 

EN 

11 

   EN 

 
                                                 
•  Weak mechanisms for feedback and for ensuring compliance. 

The first of two of these limitations of the EPBD were addressed in the recast proposal tabled 
by the Commission at the end of 2008. 

2.2.2.  Recast of the Energy Performance of Buildings Directive 

The  Action  Plan  identified  the  recast  of  the  2002  EPBD  as  the  key  priority  action  in  the 
building sector. The objectives were defined as substantially expanding the Directive's scope, 
proposing  minimum  EU  performance  requirements  for  new  and  existing  buildings,  and 
developing a deployment strategy for very low energy or passive houses.  

The  Commission  tabled  the  EPBD  recast  proposal  in  November  2008.26  The  European 
Parliament and the Council agreed on a recast Directive in May 2010 and the new legislation 
entered into force in July 2010.27 MS must transpose the new Directive from July 2012. The 
objectives for the recast set out in the EEAP were addressed as follows: 

•  Scope: The scope has been extended to include basically all existing and new buildings, as 
the  1000  m²  threshold  was  abolished  in  all  relevant  articles.  However,  MS  have  the 
possibility  not  to  apply  minimum  performance  requirements  for  certain  categories  of 
buildings such as industrial sites and historical buildings.28 

•  Setting harmonised minimum energy performance requirements at EU level for new 
and renovated buildings: This proposal of the EEAP 2006 proved to be unfeasible given 
the  important  differences  in  prevailing  calculation  methods  defining  the  energy 
performance  of  a  building.29  In  addition,  local  conditions  (e.g.  climate,  culture,  history) 
shaping  the  features  of  the  building  stock  in  each  country  seemed  to  be  too  disparate  to 
allow for meaningful harmonized minimum energy performance requirements at EU level. 
This issue was solved in the recast by introducing an obligation on MS to perform a cost 
effectiveness  assessment  in  order  to  set  cost-optimal  minimum  requirements.30  This 
minimum  performance  level  is  to  be  calculated  based  on  a  comparative  methodology 
framework, which is to be defined in detail under a Comitology process in 2010-2011. In 
the  years  up  to  2020,  a  (comparative)  benchmarking  method  will  be  applied  to  set 
standards  for  all  buildings,  existing  and  new  ones.  From  2020  on,  ‘nearly  zero  energy31 
standards’ will be applied for new buildings (from 2019 for new public buildings). 

25 

26 
27 
28 
29 
30 

31 

Experience with certificates shows that some are of very poor quality and do not provide sufficient nor 
correct information, raising questions about their overall usefulness. Similar limitations results from the 
inspections schemes for boilers and air-conditioning systems, as their role has not been properly defined 
in the Directive. Further, the energy performance requirements set by MS do not fully meet expectation 
with  regard  to  their  level  of  ambition.  At  present  there  are  many  MS  that  do  not  have  cost-optimal 
requirements. 
COM(2008) 780. The original planning foresaw a proposal for 2009. 
Directive 2010/31/EU of the European Parliament and of the Council of 19 May 2010. 
Article 4(2) of Directive 2010/31/EU 
See INIVE (2010): Stimulating increased energy efficiency and better building ventilation, p.72-75. 
This means the energy performance level which leads to the lowest cost during the estimated lifecycle. 
See definition 14 in Article 2 of Directive 2010/31/EU. 
A  nearly  zero-energy  building  has  a  very  high  energy  performance  and  the  nearly  zero  or  very  low 
amount  of  energy  required  should  be  covered  to  a  very  significant  extent  by  energy  from  renewable 
sources, including energy from renewable sources produced on-site nearby. See definition 2 in Article 2 
of Directive 2010/31/EU. 

EN 

12 

   EN 

 
                                                                                                                                                         
•  Strategy  for  very  low  energy  or  passive  houses:  The  EEAP  proposed  that  the 
Commission  takes  "the  necessary  steps,  in  collaboration  with  the  building  sector,  to 
develop  a  deployment  strategy,  with  a  view  to  moving  towards  this  type  of  house  as  a 
standard in new construction in the medium term, as the appropriate technologies become 
commercially available". The recast chose a different approach by introducing a provision 
to ensure that as of January 2021 all new buildings will be nearly zero-energy buildings.32 
In  addition,  MS  will  have  to  draw  up  national  plans  on  how  to  increase  the  number  of 
nearly  zero-energy  buildings  in  their  country  taking  into  account  their  relative  starting 
positions  and  national  circumstances.  These  national  plans  are  to  set  intermediate  targets 
for  2015.  Further  information  on  the  policies  and  financial  or  other  measures  adopted  to 
promote nearly zero-energy buildings have to be included. As regards the existing building 
stock, MS need to develop  policies  and take measures (e.g. targets) in order to stimulate 
the transformation of buildings that are refurbished into nearly zero-energy buildings. The 
plans  will  be  evaluated  by  the  Commission,  based  on  which  a  report  will  be  published 
reflecting  the  progress  made  by  MS  in  increasing  the  number  of  nearly  zero-energy 
buildings. On the basis of this report, the Commission will develop an action plan and, if 
necessary, propose measures to increase the number of those buildings and encourage best 
practices as regards the cost-effective transformation of existing buildings into nearly zero-
energy buildings.33 

2.2.3.  Exemplary role of the public sector to tackle Commission's own buildings 

The Commission committed itself as a public authority to set a good example by leading the 
way with its own buildings. The objective was to certify all Commission buildings within the 
EMAS  system  and  to  extend  EMAS  certification  to  other  EU  institutions.  As  of  September 
2010,  almost  40%  of  Commission's  buildings  in  Brussels  are  EMAS  registered  and  the 
remaining  buildings  will  be  gradually  certified  until  2014.34  Further,  energy  efficiency  and 
legal conformity  is  now integral  part  of the procurement procedures for  new buildings. The 
European  Parliament  is  EMAS  registered  for  their  three  sites  in  Brussels,  Luxembourg  and 
Strasburg.  The  Committee  of  Regions  and  the  Economic  and  Social  Committee  are  starting 
the  implementation  of  an  Environmental  management  system  in  line  with  EMAS  while  the 
Council has not yet started registration activities of its buildings. 

In  this  light,  the  exemplary  role  of  public  authorities  has  also  been  explicitly  tackled  in  the 
recast  of  the  EPBD.  Indeed,  from  2019,  public  authorities  that  occupy  and  own  a  new 
building  shall  ensure  that  the  building  is  a  nearly  zero-energy  building.  Public  authorities 
should  become  early  adopters  of  energy  efficiency  improvements  measures  and  should 
implement  the  recommendations  included  in  the  energy  performance  certificate  as  soon  as 
feasible. 

2.2.4.  Making buildings more energy efficient: overall assessment 

The priority action defined for the building sector has been successfully initiated in the course 
of 2008 and finalized in November 2008 with a recast proposal tabled by the Commission for 
the  2002  EPBD.  The  recast  EPBD  is  expected  to  have  a  major  impact  on  the  future  final 
energy  consumption  in  buildings.  Next  to  reducing  energy  consumption,  the  renovation 

32 
33 
34 

For the public sector this provision needs to be implemented already 2 years earlier. 
See Article 9 of Directive 2010/31/EU. 
Nine additional buildings will be registered with EMAS in 2010. 

EN 

13 

   EN 

 
                                                 
process of the existing building stock as well as the construction of nearly zero-energy houses 
will  have  significant  quantitative  and  qualitative  impacts  on  employment.  The  impact 
assessment accompanying the EBPD recast proposal estimated a positive direct job effect of 
up  to  450,000  new  employments  in  the  construction  sector.  The  key  benefit  of  these  job 
creations  is  that  they  are  benefiting  local  businesses,  many  of  which  are  SMEs.  In  order  to 
deliver the "deep" renovations in terms of improved energy performance and the roll out of 
new  nearly  zero-energy  buildings  the  qualifications  of  the  involved  workforce  need  to  be 
strongly  improved  through  adequate  professional  training  measures  and  adapted  university 
curricula.  The  higher  level  of  qualifications  of  the  workforce  as  well  as  the  acquired 
knowledge on state-of-the-art low energy buildings will bring an additional competitive edge 
to the European building industry. 

The  impacts  of  the  recast  EPBD  will  materialize  only  in  a  few  years  time.  However,  some 
factors could further enhance the implementation process in MS, such as the EPBD Concerted 
Action,  dedicated  financial  incentives  (e.g.  tax-exemptions,  green  mortgages)  as  well  as  the 
allocation  of  European  Regional  Development  Funds35  for  energy-efficiency  improvements 
and renewable energy measures in housing (see 3.6). 

All in all, energy consumption in the building sector will only be drastically reduced when the 
building stock of today, which also reflects to a great extend the future building stock in 2050 
(renovation  rate  averaging  1%  to  2%  across  MS)  is  effectively  transformed  towards  low 
energy  buildings.  Increasing  the  renovation  rate  of  existing  building  is  the  key.  The  recast 
EPBD is an important step forward, as it sets the legal framework. Beyond all, owners (public 
commercial and residential) need to be strongly incentivized to invest in improving the energy 
performance  of  their  buildings.  Innovative  financing  concepts  and  skilled  construction 
workforce are needed to realise the needed transformation until 2050. In the coming 10 years, 
the course needs to be set. The public sector could lead by example by starting the renovation 
process in its own buildings. 

2.3. 

Priority action 3: Making power generation and distribution more efficient 

The third priority area for action is power generation and distribution. About 30% of the EU's 
primary  energy  consumption  is  consumed  by  the  energy  sector,  mainly  for  transforming 
energy into electricity and heat, and for distributing it. The average transformation efficiency 
for electricity generation is of around 40%. Further, losses in the transmission and distribution 
of  electricity  are  referred  to  be  often  as  high  as  10%.  Consequently,  the  EEAP  2006 
concluded  that  this  sector  had  a  large  potential  for  energy  savings  and  defined  as  priority 
action for immediate initiation to make power generation and distribution more efficient. For 
this purpose, the Commission intended to: 

•  Develop minimum binding efficiency requirements for new electricity, heating and cooling 
capacity  lower  than  20  MW  and  consider,  if  necessary,  such  requirements  for  larger 
production units (2.3.1); 

35 

Since  May  2009,  all  MS  have  the  opportunity  to  use  up to  4%  of  their  allocation  from  the  European 
Regional  Development  Fund  for  energy-efficiency  improvements  and  renewable  energy  measures  in 
existing  housing  so  as  to  support  social  cohesion,  i.e.  the  EU  can  co-finance  national  or  regional 
schemes  to  promote  the  installation  of  double  glazing,  wall  insulation  or  solar  panels.  Previous 
legislation  gave  only  new  MS  limited  possibilities  to  use  support  from  the  ERDF  for  housing.  It 
however remains to be seen to what extent these new possibilities will be used. 

EN 

14 

   EN 

 
                                                 
•  Develop  with  the  energy  supply  industry  guidelines  on  good  operating  practices  for 

existing capacity to raise average generation efficiency for all plants (2.3.2); 

•  Agree on  guidelines  on good regulatory practices to reduce transmission and distribution 

losses (2.3.3); 

•  Propose  a  new  regulatory  framework  to  promote  the  connection  of  decentralised 

generation (2.3.4). 

In  addition  to  Priority  Action  3  other  measures  were  listed  in  the  Annex  to  the 
Communication  on  the  EEAP  2006.  These  measures  could  be  summarised  as  actions  to 
implement, amend and improve the Directive 2004/8/EC on the promotion of Cogeneration.  

2.3.1.  Minimum  binding  efficiency  requirements  for  new  electricity,  heating  and 

cooling capacity lower than 20MW and larger production units 

The  threshold  of  20  MW  was  set  to  address  generation  which  is  not  covered  by  the  EU 
emissions trading scheme (ETS). This specific measure requires addressing a large number of 
different,  often  custom-made  equipments  and  production  units,  the  efficiency  of  which  to  a 
great  extent  depends  on  the  system  they  are  part  of.  Such  efficiency  measures  are  costly  to 
develop and create a risk of being too stringent (command and control measure) and not well-
adapted to fast changing technical solutions. Since the cost of such measures risk to be larger 
than  the  benefits,  efforts  have  been  spent  on  other,  more  cost-effective  energy  efficiency 
measures that should be exploited first. For that reason, the measure has not been concluded, 
but may become timely at a later stage, when other options have been exploited. 

Nevertheless, efforts have been made to address energy efficiency in combustion installations. 
In the context of the Integrated Pollution Prevention and Control Directive 2008/1/EC (IPPC), 
all installations with a rated thermal input of above 50 MW have to be operated in such a way 
that energy is used efficiently, and one of the issues to be taken into account in determining 
Best Available Techniques (BAT) for a process is its energy efficiency. In order to promote 
the  energy  efficiency  provisions  of  the  IPPC  Directive  a  special  horizontal  Reference 
Document  on  Best  Available  Techniques  addressing  generic  energy  efficiency  issues  was 
prepared  and  adopted  in  February  2009  (ENE  BREF).36  It  aims  at  improving  energy 
efficiency  in  industrial  installations,  including  also  smaller  production  units  for  electricity, 
heating and cooling. According to the IPPC Directive the competent authorities issuing IPPC 
permits  in  Member  States  are  required  to  determine  the  permit  conditions  based  on  BAT, 
taking into account certain local considerations. However, ENE BREF does not set minimum 
energy efficiency requirements and reference documents are not of compulsory nature, as the 
Member States have also here the discretion to use other references to apply BAT. In addition, 
for  activities  prescribed  in  the  ETS  Directive,  MS  may  choose  not  to  impose  requirements 
relating  to  energy  efficiency  in  respect  of  combustion  units  emitting  carbon  dioxide  on  the 
site.  However,  in  such  cases,  energy  efficiency  requirements  still  apply  to  all  associated 
activities on the site (i.e. not directly emitting carbon dioxide within the same installation). 

A similar BREF for Large Combustion Plants37 was adopted in July 2006 and includes some 
useful elements regarding  energy efficiency both for heating plants, power plants and CHP, 
although the main focus is on plants that have a capacity above 50 MW.  

36 
37 

EC (2009): Reference Document on Best Available Techniques on Energy Efficiency 
EC (2006): Reference Document on Best Available Techniques on Large Combustion Plants 

EN 

15 

   EN 

 
                                                 
The  revised  IPPC  Directive38  will  strengthen  the  role  of  BAT  and  BREF  in  setting  specific 
conditions  for  new  industrial  installations.  The  scope  will  however  remain  above  50  MW 
installed capacity and MS will still be able to deviate from the standard for certain technical 
reasons or local circumstances if they can prove that the costs of implementing the standards 
would be disproportionate compared to environmental benefits. 

2.3.2.  Development  with  supply  industry  guidelines  on  good  operating  practices  for 

existing capacity to raise average generation efficiency for all plants 

Concerning  the  second  action  point  to  raise  generation  efficiency  in  existing  plants,  no 
specific guidelines on good operating practices have been developed in cooperation with the 
supply  industry.  Nevertheless,  both  BREF  on  Large  Combustion  Plants  and  on  Energy 
Efficiency can be considered as such guidelines, since they were developed during extensive 
consultation  process  with  the  supply  industry  and  do  provide  guidelines  on  good  operating 
practices.  The  BREF  on  energy  efficiency  provides  information  on  techniques  to  be 
considered  to  achieve  energy  efficiency  at  the  installation  level  as  well  as  in  energy-using 
systems,  processes  or  activities.  These  techniques  focus  on  areas  such  as  energy  efficiency 
management  systems,  planning  and  establishing  objectives  and  targets,  energy  efficient 
design, effective control of processes, maintenance, as well as measurement and monitoring, 
energy audits and benchmarking.39 

Further, in the context of the Internal Energy Market, the EU has adopted a Third Legislative 
Package40  where  energy  efficiency  provisions  have  been  introduced.  However,  these 
provisions are vague and do not create strict legal requirements for Member States to make 
energy  efficiency  a  mandatory  condition  for  the  generation  (only  electricity),  transmission, 
distribution, supply and storage (only gas) of energy (electricity/gas). 

2.3.3.  Guidelines on good regulatory practices to reduce transmission and distribution 

losses 

Concerning  the  third  action  point,  the  Commission  committed  to  work  closely  with  the 
Council of European Regulators (CEER) and the European Regulators Group for Electricity 
and  Gas  (ERGEG)  to  agree  on  good  regulatory  practices  to  reduce  transmission  and 
distribution  losses.  Preliminary  discussions  have  taken  place,  but  as  it  stands  today  no 
agreement has been reached with CEER and ERGEG. This is however an issue that needs to 
be kept for future and further discussed with the new Agency for the Cooperation of Energy 
Regulators (ACER), ERGEG's successor organisation. 

2.3.4.  A  new  regulatory  framework  to  promote  the  connection  of  decentralized 

generation 

In  Article  16  of  Directive  2009/28/EC,  access,  transmission  and  distribution  as  well  as  the 
dispatch  of  decentralised  generating  installations  using  renewable  energy  sources  (RES)  is 

38 

39 
40 

The  new  Industrial  Emission  Directive  2010/75/EU  combines  seven  existing  air  pollution  directives, 
notably  the  Integrated  Pollution  Prevention  and  Control  (IPPC)  Directive,  obliging  around  52,000 
industrial and agricultural installations to obtain environmental permits. The measurement stick is the 
implementation  of  BATs,  or  the  most  effective  technologies  that  can  provide  high  levels  of 
environmental protection while balancing cost and benefits. 
EC (2009): Reference Document on Best Available Techniques on Energy Efficiency, chapter 2 and 3. 
See Directives 2009/72/EC and 2009/73/EC 

EN 

16 

   EN 

 
                                                 
promoted.  Indeed,  MS  shall  provide  either  priority  access  or  guaranteed  access  to  the  grid-
system  of  electricity  produced  from  RES  and  ensure  that  when  dispatching  electricity 
generating  installations,  transmission  system  operators  shall  give  priority  to  generating 
installations  using  renewable  energy  sources.  However,  the  provision  does  not  foresee  that 
distribution system operators give priority to RES when dispatching generating installations.  

In the framework of the Third Legislative Package put forward in 2009, Directive 2009/72/EC 
concerning common rules for the internal market in electricity promotes the priority dispatch 
of RES in accordance of Article 16 of Directive  2009/28/EC. In the  case of the dispatch of 
generating installations producing combined heat and power, MS only may require the system 
operator to give priority, i.e. the provision does not impose on MS to make it mandatory to 
give priority to CHP installations.  41 Such priority dispatched however should be granted by 
transmission  system  operators  to  high  efficiency  CHP  installations  in  accordance  with  the 
CHP directive that makes the grid access and dispatch rules applicable to CHP by reference. 
This obligation is however not spelled out in a clear unambiguous way as can be seen in the 
different  interpretation  by  Member  States.  Overall,  a  strong  framework  for  distributed 
generation  is  still  missing,  since  access  and  dispatch  issues  at  distribution  level  are  not  yet 
sufficiently addressed in the existing renewable, CHP and internal energy market legislation.  

As the new regulatory framework of the Third Legislative Package will only enter into force 
in March 2011, it is yet not possible to assess how MS will transpose the provision promoting 
the  dispatch  of  decentralised  generation  into  their  national  laws  and  how  it  will  evolve  in 
practice.  Yet  due  to  soft  wording,  generating  installations  producing  combined  heat  and 
power  are  in  a  weaker  position  compared  to  those  using  RES  when  it  comes  to  prioritising 
connection and dispatch at the transmission level. 

In the framework of the EEAP 2006, no other activities are in the pipeline to further promote 
the  connection  of  decentralised  generation,  especially  when  producing  combined  heat  and 
power.  As  this  is  still  seen  as  an  important  field  for  action,  this  issue  should  be  reassessed 
when elaborating new priority actions in a new Energy Efficiency Plan. 

2.3.5.  Promotion of cogeneration through the Combined Heat & Power Directive 

In addition to the priority actions stated above (2.3.1 – 2.3.4) to make power generation and 
distribution  more  efficient,  other  measures  related  to  the  implementation  of  the  Combined 
Heat and Power Directive (CHP - 2004/8/EC) have been listed in the EEAP 2006 as having a 
scope for reducing losses in distribution networks. A short assessment of the measures related 
to the implementation of the CHP Directive is therefore provided in this report. 

The  purpose  of  the  CHP  Directive  is  to  increase  energy  efficiency  and  improve  security  of 
supply within the EU by creating a framework for the promotion and development of high-
efficiency cogeneration.  

Regarding the CHP measures listed in the EEAP, most of them have not been completed yet 
but  are  ongoing,  although  with  delay.  For  the  time  being,  the  main  sources  of  information 
regarding the implementation progress with the CHP Directive are the reports submitted with 
significant delays by most of the MS to the Commission pursuant Article 10 of the Directive. 
One key aspect of these reports is the analysis of the national potential for the application of 

41 

Articles 15 (3) and 25 (4) 

EN 

17 

   EN 

 
                                                 
high-efficiency  cogeneration,  including  micro-generation.  In  the  context  of  this  national 
analysis Member States were asked to identify heat demand suitable for CHP as well as the 
potential for waste heat. The full assessment of these reports is expected to be finalized early 
2011.  Based  on  these  reports  and  in  consultation  with  stakeholders,  the  Commission  will 
report  on  the  implementation  of  the  Directive  including  the  examination  of  the  various 
support mechanisms. 

Work  has  also  been  done  in  the  field  of  minimum  efficiency  standards.  A  study  has  been 
launched  to  investigate  how  to  best  propose  minimum  efficiency  requirements  for  district 
heating  based  on  a  new  norm.  Final  results  are  expected  for  2011.  Further,  minimum 
efficiency  requirements  for  micro  CHP  equipment  will  be  addressed  under  the  Ecodesign 
framework, with a new implementing measure on boilers, for adoption by the Commission in 
2011. 

Next  to  the  ongoing  work,  the  task  of  harmonising  calculation  methods  for  high  efficiency 
CHP has been completed with the adoption of a Commission Decision42 in November 2008, 
establishing detailed guidelines for the calculation of electricity from cogeneration. Already in 
December  2006,  another  Commission  Decision  established  harmonised  efficiency  reference 
values for separate production of electricity and heat.43 

In the lifespan of the EEAP 2006, it was already foreseen to inquire how to amend the CHP 
Directive  to  strengthen  its  impact  on  the  promotion  of  CHP.  This  action  has  already  been 
initiated with the launch of a study which will be looking at different options to strengthen the 
provisions  of  the  CHP  directive  and  to  ensure  that  the  cost-effective  economic  potential  is 
fully  used  in  the  EU.  These  include  stronger  support  for  distributed  generation,  i.e.  specific 
network  rules  for  connecting  CHP  to  distribution  networks,  targets  for  realising  national 
potentials,  better  integration  with  heat  demand  through  the  support  of  district  heating  & 
cooling, promotion of industrial clusters, better harmonisation of guarantees of origin as the 
basis of support schemes, etc. In that context, it could also be possible to consider the option 
to have stricter requirements for market regulators to promote CHP.44 

One of the main achievements of the CHP Directive has been to codify at the EU level the 
definition of high efficiency cogeneration.45 The CHP Directive for the first time established a 
regulatory framework to promote cogeneration. However, the CHP directive proved to be less 
effective than desired in promoting cogeneration in those MS not already having been active 
in this area beforehand. When the EEAP was proposed, 10.9%46 of the electricity consumed 
in  the  EU  was  generated  using  this  technology.  Today,  the  proportion  is  around  11%47, 
although  the  potential  has  been  assessed  of  being  20%  in  2020.  The  share  of  electricity 
generated from CHP varies across Member States, ranging from 0.3% in Cyprus to more than 

42 

43 

44 

45 

46  
47  

Commission  Decision  (2008/952/EC)  establishing  detailed  guidelines  for  the  implementation  and 
application of Annex II to Directive 2004/8/EC.  
Commission  Decision  (2007/74/EC)  establishing  harmonised  efficiency  reference  values  for  separate 
production of electricity and heat in application of Directive 2004/8/EC. 
ERGEG/ CEER have included the promotion of CHP as one element to be reported on by the national 
regulatory authorities in their annual contribution to Commission's benchmarking report on the progress 
in creating the internal gas and electricity market. 
A saving of a minimum of 10% primary energy compared to separate production of heat and electricity 
based on the same fuel is now guaranteed by a plant of high efficiency cogeneration.  
Data for 2006. See Eurostat Data in focus 22/2008 
Data for 2008. See Eurostat Data in focus 7/2010 

EN 

18 

   EN 

 
                                                 
40% in Latvia and in Denmark. This variation is only partially due to differences in potentials 
and mostly due to the differences in how actively CHP is promoted. 

The main barriers preventing the uptake of cogeneration in MS are mainly:48 

•  Current  legislation  does  not  define  any  legal  obligations  for  MS  to  realise  their  national 

CHP potential within a certain period of time; 

•  Implementation has been weak so far: for example many MS completed reporting only six 

years after the entry into force of the Directive and some are still lagging behind;  

•  Efforts in the areas of grid connection, regulation and administration, and financing need to 

be further reinforced; 

•  MS typically have identified CHP opportunities in either industrial cogeneration or district 
heating according to their history. Cooling, micro CHP and bio-energy opportunities are in 
many cases unexplored. 

2.3.6.  More efficient power generation and distribution: overall assessment 

The priority action to make power generation and distribution more efficient is one of the ten 
priority actions of the EEAP 2006 which has not been fully addressed. This is mainly due to 
the high cost, the complexity, and the strong stringency of the required measures, that made 
this effort for the time being not proportionate to the foreseeable results in this area, taken into 
account  that  it  is  already  partially  covered  by  market  instruments  with  similar  goals,  e.g.  to 
trigger  energy  efficiency  improvements.  Such  market  instruments  are  the  internal  energy 
market  and  the  EU  emission  trading  scheme.  Overall,  while  there  is  potentially  significant 
scope for energy efficiency improvements and energy savings in this sector, which cannot be 
fully exploited via the above mentioned market instruments due to the persistence of specific 
barriers,  priority  was  given  to  efforts  promoting  energy  efficiency  in  areas  with  higher  and 
more swiftly realisable saving and cost-effective potentials. As a result this priority action was 
so  far  only  partially  implemented  under  the  current  EEAP  period.  A  new  regulatory 
framework  was  established  with  the  Third  Legislative  Package,  introducing  voluntary 
elements for MS to promote connection of decentralised generation. Decentralised generation 
received  further  support  under  the  new  Renewable  Directive,  but  this  also  left  considerable 
discretion  for  MS  as  regards  implementation  at  distribution  level.  In  addition,  although  no 
specific guidelines were developed to raise the average generation efficiency of all plants, the 
BREF on energy efficiency adopted in 2009 can be seen as following the same objective. 

2.4. 

Priority action 4: Energy efficiency in transport through higher fuel efficiency 
of cars 

The transport sector plays a central role in the European economy and as such accounts for a 
third of final energy consumption. 98% of the energy consumed in this sector is fossil fuel, 
making it a major source of greenhouse gas emissions and of import dependency. 

Energy  efficiency  in  transport  is  addressed  in  the  Action  Plan  by  measures  on  the  fuel 
efficiency  of  cars,  development  of  markets  for  cleaner  vehicles,  tyre  pressure,  efficiency  of 
urban,  rail,  maritime  and  aviation  transport  systems,  as  well  as  changing  transportation 
behaviour.  

48 

See also the conclusions drawn by the Code project under http://www.code-project.eu 

EN 

19 

   EN 

 
                                                 
The focus of this report lays on the priority action defined in the EEAP 2006 for the transport 
sector,  namely  to  achieve  fuel  efficiency  of  cars.  To  this  end,  the  Commission,  being 
determined to address energy efficiency and CO2 emissions from cars, committed to propose: 

•  A  legislation  to  ensure  that  a  120  g  CO2/km  target  is  achieved  by  2012  through  a 
comprehensive  and  consistent  approach,  in  accordance  with  the  agreed  EU  objective 
(2.4.1). 

•  Propose to strengthen EU requirements of labelling of cars (2.4.2). 

2.4.1.  Emission  performance  standards  for  new  passenger  cars:  120  g  CO2/km  by 

2012 

Achieving  higher  fuel  efficiency  in  passenger  cars  addresses  over  60%  of  the  fuel 
consumption in the road transport sector, which accounts for over 80% of the overall energy 
consumption of the total sector.  

Despite the economic and financial crisis, the number of new registered vehicles in EU15 in 
2009 was 3% higher than in 2000 (also due to scrappage schemes implemented by MS as a 
response to the crisis). Overall CO2 emission from road transport (passenger cars and trucks) 
between 1990 and 2007 increased in the EU27 by 29%. 

The objective of reducing CO2 emissions from cars has been on the European political agenda 
since more than 15 years as shown in table 5. In 1995, the EC adopted its first Community 
Strategy  for  reducing  CO2  emissions  from  cars.  At  that  time,  the  European  average  fuel 
efficiency for new passenger cars was about 186 g CO2/km. 

The  Community  CO2  reduction  strategy  was  based  on  three  pillars:  voluntary  commitments 
from  the  car  industry  to  cut  emissions,  improvements  in  consumer  information  and  the 
promotion of fuel-efficient cars by means of fiscal measures.  

The progress achieved by 2005 with the voluntary commitments was assessed to go towards 
the  140  g  CO2/km  target  by  2008/2009,  but  in  the  absence  of  additional  measures,  the  EU 
objective  of  120  g  CO2/km  would  not  be  met  at  a  2012  horizon.49  As  an  outcome,  the 
Commission considered necessary to resort to a legislative approach. 

In  line  with  the  commitments  made  in  the  context  of  the  EEAP  2006,  the  European 
Commission  adopted  in  February  2007  a  revised  strategy  to  reduce  CO2  emissions  from 
passenger  cars  and  light-commercial  vehicles  (so  called  light-duty  vehicles)  through  an 
integrated  approach 
technological 
fuel  economy 
improvements and use of biofuels.50 As a next step a Commission proposal51 for a regulation 
to  reduce  CO2  from  passenger  cars  was  put  forward  in  December  2007.  The  adoption 
followed  in  April  2009  as  Regulation  (EC)  No  443/2009,  setting  emission  performance 

improvements,  other 

looking  at 

49 

50 

51 

This assessment has proven to be correct, as in 2008, the fuel efficiency average for new passenger cars 
registered by ACEA was 152,3 gCO2/km. In 2009 the averages for JAMA and KAMA were 142.6 and 
141.8 respectively. 
See COM(2007) 19 final (07.02.2007): Communication on the results of the review of the Community 
Strategy to reduce CO2 emissions from passenger cars and light-commercial vehicles. 
See COM(2007) 856 final: Proposal for a regulation on setting emission performance standards for new 
passenger cars as part of the Community's integrated approach to reduce CO2 emissions from light-duty 
vehicles 

EN 

20 

   EN 

 
                                                 
standards for new passenger cars as part of Community's integrated approach to reduce CO2 
from light-duty vehicles. 

Table 3: Overview of policy developments to reduce CO2 emissions from cars 

Year 

1995 

1998 

1999 

February 
1999 

Policy development 

Adoption of Community Strategy for reducing CO2 emissions from cars. 

ACEA  -  European  Automobile  Manufacturers’  Association  adopts  a  commitment  to 
reduce average emissions from new cars sold to 140 g CO2 /km by 2008. 
JAMA  -  Japanese  Automobile  Manufacturers’  Association  and  KAMA  -  Korean 
Automobile  Manufacturers’  Association  adopt  commitment  to  reduce  average 
emissions from new cars sold to 140 g CO2 /km by 2009. 
EC Recommendation 1999/125/EC on the reduction of CO2 emissions from passenger 
cars  takes  into  account  ACEA's  commitment  and  recommends  the  achievement  of  a 
CO2 emission target of 140 g/km CO2 by 2008. 

June 2000  EC establishes a scheme to monitor the average specific emissions of CO2 from new 
passenger  cars  in  accordance  with  Decision  No 1753/2000/EC  of  the  European 
Parliament and of the Council of 22 June 2000. 
Adoption of two parallel EC Communications:  
•  Communication setting out the results of the review of the Community Strategy to 

February 
2007 

reduce CO2 emissions from passenger cars and light-commercial vehicles; 

•  Communication on a Competitive Automotive Regulatory Framework for the 21st 

Century (CARS21).  

The  Communications  underlined  that  progress  had  been  made  towards  the  140 g 
CO2/km  target  by  2008/2009,  but  that  the  Community  objective  of  120 g  CO2/km 
would not be met by 2012 in the absence of additional measures. 
Adoption  of  Commission  proposal  (COM(2007)  856)  for  a  Regulation  on  emission 
performance standards for new passenger cars to reach an average of 130 gCO2/km by 
2012. 

December 
2007 

April 2009  Regulation  (EC)  443/2009  setting  emission  performance  standards  for  new 
passenger  cars  as  part  of  the  Community’s  integrated  approach  to  reduce  CO2 
emissions from light-duty vehicles. 
Adoption of EC legislative proposal to reduce CO2 emissions from light commercial 
vehicles (vans) 

October 
2009 

Key elements of the adopted Regulation for new passenger cars are: 

•  Limited  value  curve:  By  means  of  improvement  in  vehicle  motor  technology  the  fleet 
average to be achieved by all new cars registered in the EU by 2015 is 130 gCO2/km. A so-
called limit value curve implies that heavier cars are allowed higher emissions than lighter 
cars while preserving the overall fleet average. 

•  Phasing-in of requirements: In 2012, 65% of each manufacturer's newly registered cars 
must comply on average with the limit value curve set by the legislation. This will rise to 
75% in 2013, 80% in 2014 and 100% from 2015 onwards. 

•  Lower  penalty  payments  for  small  excess  emissions  until  2018:  If  the  average  CO2 
emissions  of  a  manufacturer's  fleet  exceed  its  limit  value  in  any  year  from  2012,  the 
manufacturer  has  to  pay  an  excess  emissions  premium  for  each  car  registered.  This 
premium amounts to €5 for the first g/km in excess, €15 for the second g/km, €25 for the 
third g/km and €95 for each subsequent g/km. From 2019, the first g/km will cost €95. 

EN 

21 

   EN 

 
•  Long-term target: A target of 95 gCO2/km is specified for the year 2020. The modalities 
for  reaching  this  target  and  the  aspects  of  its  implementation,  including  the  excess 
emissions premium, will have to be defined in a review to be completed no later than the 
beginning of 2013. 

•  Eco-innovations:  Due  to  the  outdated  test  procedure  used  for  vehicle  type  approval, 
certain  innovative  technologies  cannot  demonstrate  their  CO2-reducing  effects  under  the 
type approval test. As an interim procedure until the test procedure is reviewed by 2014, 
manufacturers can be granted a maximum of 7g/km of emission credits on average for their 
fleet if they equip vehicles with innovative technologies, based on independently verified 
data. 

It  becomes  evident  that  it  is  unlikely  that  the  EEAP  objective  of  an  equivalent  of  120 
gCO2/km will be achieved in 2012 when the new regulation delays to 2015 the full entry into 
force  of  this  target  and  that  many  of  the  additional  implementing  measures  (tyre  pressure 
monitoring systems, tyre rolling resistance limits for new passenger cars, gear shift indicators) 
have  different  dates  for  entry  into  force,  usually  later  than  2012.  This  timeframe  and  the 
overall ambition have been  amended  compared to the 2007 proposal from the Commission. 
The  co-legislators  decided  to  delay  to  2015  the  full  entry  into  force  of  the  regulation  to 
encompass concerns of the industry as to the cost of achieving this target. However, during 
co-decision an additional 2020 target of 95 g/km was introduced which compensates for this 
delay  of  the  short-term  objective  and  adds  planning  certainty  to  the  industry  that  now  can 
work towards a longer-term perspective.  

Although  an  average  reduction  of  3,3  gCO2/km  per  year  over  a  period  of  20  years  (1995-
2015, see graph 1) was a rather slow progress, the new regulation will set a much firmer path 
downwards  in  terms  of  gCO2/km  reduction  (starting  from  158.7  in  2007  to  planned  95  in 
2020). 

Graph 1: Evolution of emission from new cars 1996 -2009 

EN 

22 

   EN 

 
 
2.4.2.  Strengthening EU requirements for labelling of cars 

In general, empirical studies show that consumers value the fuel economy and environmental 
friendliness of cars as one of the lowest priorities in their purchasing decision. Moreover, it is 
often stated that consumers are relatively short-sighted regarding perceived future fuel savings 
from  buying  a  fuel-efficient  car.  Similar  to  the  labelling  of  products,  the  availability  of 
running  costs  information  through  a  car  label,  reinforces  the  impact  of  the  regulation  on 
emission standards. 

The first Directive (1999/EC/EC) relating to the availability of consumer information on fuel 
economy  and  CO2  emissions  in  respect  of  the  marketing  of  new  passenger  cars  dates  from 
1999.  Its  objective  was  to  ensure  that  information  relating  to  the  fuel  economy  and  CO2 
emissions of new passenger cars offered for sale or lease in the Community is made available 
for consumers in order to enable consumers to make an informed choice. This choice is to be 
based on the following type of information that must be provided to the consumers: 

•  A fuel economy label for all new cars to be displayed at the point of sale; 
•  A poster (or a display) showing the official fuel consumption and CO2 emissions data of all 
new passenger car models displayed or offered for sale or lease at or through the respective 
point of sale; 

•  A guide to fuel economy and CO2 emissions; 
•  Promotional  literature  containing  official  fuel  consumption  and  specific  CO2  emissions 

data for the passenger car model to which it refers. 

This fuel efficiency labelling Directive was intended as a tool in raising awareness. However, 
a study based notably on reports provided by MS has been carried out in 2005 coming to the 
conclusion that its impact has not been visible with labels varying strongly in quality across 
MS.52  That  is  why  the  Commission  decided  to  adopt  an  amending  proposal  to  improve  the 
effectiveness of this Directive and to define it as a priority action for the transport sector in the 
EEAP  2006.  The  review  has  been  announced  however,  the  timeline  for  this  adoption  is  not 
yet available. Key aspects for consideration will be: 

•  Extended scope of the labelling scheme to light-commercial vehicles; 
•  Harmonised design of the label; 
•  Energy efficiency classes for raising consumer awareness at the time of car purchase;  
•  Definition of light environmentally enhanced vehicles; 
•  Indication on the label of the annual running costs;  
•  Vehicle tax levels as a function of CO2 emissions and fuel consumption. 

The review of the fuel efficiency labelling will be put forward again by the upcoming White 
Paper on transport foreseen for adoption in early 2011. 

2.4.3.  Higher fuel efficiency of cars and strengthened labelling: overall assessment 

The priority action of the EEAP for the transport sector has not been fully implemented as the 
CO2 emissions standards will come into force with delay in 2015 and the work on the review 
of the fuel efficiency labelling Directive has been initiated but not finalized yet. However, the 
Commission  has  already  started  targeting  emissions  from  road  transport  beyond  passenger 

52 

ADAC  (2005):  Study  on  the  effectiveness  of  Directive  1999/94/EC  relating  to  the  availability  of 
consumer information on fuel economy and CO2 missions in respect of the marketing of new passenger 
cars, final report. 

EN 

23 

   EN 

 
                                                 
cars,  by  proposing  a  regulation  on  setting  emission  performance  standards  for  light-
commercial  vehicles.53  Further,  CO2  emissions  standards  for  Heavy  Duty  vehicles  will  be 
proposed. 

To conclude, the progress made in this priority action is not satisfactory and need to be further 
addressed,  inter  alia  in  the  new  Energy  Efficiency  Plan  as  well  as  in  the  upcoming  White 
Paper on transport. 

2.4.4.  Other key measures in the transport sector 

In  addition  to  the  priority  action  defined,  there  have  been  various  positive  developments  as 
regards the other transport measures proposed in the EEAP 2006. As completed measures are 
to be mentioned (see also annex 1): 

•  A Regulation on the labelling of tyres with respect to fuel efficiency and other essential 
parameters (EC No. 1222/2009) was adopted in November 2009 and will apply to the MS 
from  November  2012.  The  Regulation  requires  the  provision  of  information  on  tyre 
parameters  relating  to  the  rolling  resistance  (influencing  fuel  consumption),  wet  grip 
(influencing  safety)  and  external  rolling  noise.  It  seeks  to  target  consumers  by  providing 
potential purchasers of tyres with labels that allows them to make informed choices. It thus 
indirectly targets manufacturers who will be influenced by the effects that the labelling has 
on  sales  of  designs.  The  labelling  of  tyres  will  contribute  positively  to  improving  the 
fuel efficiency of cars and is expected to contribute to some 15 Mtoe (cumulated 2012 
-2020) primary energy savings by 2020. 

•  A  new  Directive  2009/33/EC  on  the  promotion  of  clean  and  energy-efficient  road 
transport vehicles entered into force in May 2009. This directive aims at accelerating the 
market introduction of clean and energy efficient vehicles through public procurement. In 
the  long  term  this  should  contribute  to  reduce  their  costs  through  economies  of  scale, 
resulting  in  a  progressive  improvement  of  the  whole  vehicle  fleet.  MS  need  to  transpose 
this  directive  by  4  December  2010.  By  December  2012  a  first  assessment  report  on  the 
application of the Directive, the actions taken by MS and the possible need of further EU 
actions will be elaborated. 

•  Directive  2010/40/EU  on  the  framework  for  the  deployment  of  intelligent  transport 
systems  in  the  field  of  road  transport  and  for  interfaces  with  other  modes  of  transport 
entered into force on 26 August 2010. This Directive establishes a framework in support of 
the  coordinated  and  coherent  deployment  and  use  of  Intelligent  Transport  Systems  (ITS) 
within  the  EU,  in  particular  across  the  borders  between  the  MS,  and  sets  out  the  general 
conditions  necessary  for  that  purpose.  This  legal  instrument  will  contribute  to  an 
acceleration of the deployment and use of ITS in Europe: according to several studies, ITS 
have  a  potential  up  to  10%-15%  reduction  of  greenhouse  gas  emissions,  if  they  are 
deployed widely and across all possible applications.  

53 

EC  (2009)  Proposal  for  a  Regulation  on  Setting  emission  performance  standards  for  new  light 
commercial  vehicles  as  part  of  the  Community's  integrated  approach  to  reduce  CO2  emissions  from 
light-duty vehicles, COM(2009) 593, Brussels. 

EN 

24 

   EN 

 
                                                 
•  In  September  2007  the  communication  of  a  Green  Paper  “Towards  a  new  culture  for 
urban mobility” was followed by the adoption in September 2009 of the Action Plan on 
Urban Mobility with 20 actions in six thematic areas. 

•  For air transport, which is responsible for 14% of the energy consumption in the sector, 
political agreement was reached to include it in the EU Emissions Trading Scheme as of 
2012.  Further,  the  Sesar  Joint  Undertaking  was  established  in  spring  2007  to  promote 
energy efficiency in this sector.  

•  In the rail sector, the legal framework for rail transport has been established and MS need 
to implement it to increase interoperability. The EU railway legislation tackles the negative 
trend  in  a  modal  split  in  freight  transport  with  the  rail  sector  loosing  its  market  share. 
Therefore  its  impact  can  be  seen  in  terms  of  modal  shift  towards  more  sustainable  and 
energy-efficient mode of transport (railways).  

Other or related transport measures are in the process of implementation, such as: 

•  Support of EU-wide deployment of real-time traffic and travel information (RTTI) and 
traffic  management  systems  and  the  establishment  of  guidelines  inter  alia  for  the 
deployment  of  Intelligent  Truck  Parking  through  the  EasyWay  project,  which  was 
supported  with  €100  million  over  the  2007-20 09  period.  A  follow-up  proposal  for  the 
period  2010-2011  has  been  submitted  and  negotiations  on  EasyWay  II  are  currently 
ongoing and should be concluded by the end of the year. Considering all actions together 
an  impact  of  5  to  10%  reduction  in  the  road  transport  energy  consumption  by  2020  has 
been estimated, representing a total reduction of energy consumption between 1.2 and 
2.4% in EU total final energy demand by 2020.  

2.5. 

Priority action 5: financing energy efficiency investments for SME and Energy 
Service Companies (ESCOs) 

As  described  in  the  EEAP  2006,  although  many  energy  efficiency  measures  are  fully  cost 
effective  with  very  short  payback  periods,  they  are  not  always  undertaken  due  to  financial 
barriers.  In  this  light,  the  Action  Plan  defined  a  priority  action  aiming  at  facilitating 
appropriate financing of energy efficiency investments for SME and Energy ESCOs. For this 
purpose the Commission committed to: 

•  Call  upon  the  banking  sector  to  offer  finance  packages  specifically  aimed  at  SMEs  and 

ESCOs to adopt energy efficiency savings identified in energy audits (2.5.1) 

•  Make  access  to  Community  financing,  such  as  Green  Investment  Funds,  available  for 

promoting eco-innovations (2.5.2). 

2.5.1.  Financial packages for SMEs and ESCOs 

In  cooperation  with  the  European  Bank  for  Reconstruction  and  Development  (EBRD),  the 
European  Investment  Bank  (EIB)  Group,  the  Council  of  Europe  Development  Bank  (CEB) 
and the Kreditanstalt für Wiederaufbau (KfW), several financial packages specifically aiming 
at SMEs or involving ESCO finance have been created, such as: 

•  Energy Efficiency Finance Facility (EEFF) 

In April 2007, the EC established the EEFF in cooperation with three international financial 
institutions (EBRD, EIB & CEB/KfW). The objective of this facility is to achieve savings in 

EN 

25 

   EN 

 
energy  consumption  and  reduction  in  CO2  emissions,  facilitated  through  the  provision  of 
financing  to  financial  institutions  in  Beneficiary  Countries  to  increase  their  investment 
portfolios in energy efficiency projects. Under the Facility, the financial institutions provide 
loan financing through participating banks, together with EC grant support. EC funds will be 
used to provide technical assistance for implementation support and financial incentives to i) 
sub-borrowers and ii) participating banks.  

The  EBRD  model  used,  in  particular  in  Bulgaria54,  has  demonstrated  its  ability  to  create  a 
market  for  energy  efficiency  and  renewable  energy  financing  with  8  commercial  banks 
involved  and  with  €225  million  of  financi ng  leveraged  by  €55  million  of  concessional 
funding in the form of technical assistance grants and incentives. Based on the experience in 
Bulgaria,  and  reflecting  local  conditions,  this  model  has  now  been  rolled  out  in  ten  other 
EBRD  countries  of  operations  for  a  total  EBRD  financing  of  €1.1  billion.  A  project  has 
recently  been  approved  which  will  mobilize  €1   million  from  EU  resources  under  the  EEFF 
2006  programme  to  launch  a  capacity  building  and  transfer  of  skills  technical  cooperation 
assignment, designed to strengthen the administrative capacity of the institutions that will be 
in charge with implementing the EUR 200 million grant scheme in Bulgaria (ERDF funded). 

•  Sustainable energy finance through related Financing Facilities 

In  2010,  the  Commission  reshaped  a  number  of  earlier  instruments  with  the  intention  of 
refocussing  support  to  current  European  energy  and  climate  objectives,  in  particular  with 
respect  to  the  2020  objectives  for  energy  savings  and  reduction  of  CO2  emissions.  In  June 
2010,  a  new  SME  Energy  Efficiency  sub-window  was  developed  for  the  purpose  of 
facilitating SME investments for energy efficiency and renewable energy measures generally 
targetting  CO2  emissions  reductions.  Under  this  sub-window,  of  particular  relevance  is  the 
Polish Sustainable Energy Financing Facility which was established within a few weeks of a 
formal agreement on the reshaping of the EBRD SME Finance facility. EBRD will provide up 
to  €150  million  senior  debt  to  financial  interm ediaries  in  Poland,  for  on-lending  to  finance 
investments  in  energy  efficiency  or  renewable  energy.  The  Facility  is  supported  by 
approximately  €30  million  of  EC  grant  incentives  for  end  borrowers.  Similar  modifications 
are being created in facilities targeting action in municipalities and involving all four of the 
abovementioned banks. 

•  European Local Energy Assistance (ELENA) 

In order to facilitate the mobilisation of funds for investments in sustainable energy at local 
level,  the  Commission  in  cooperation  with  the  EIB  has  established  in  2009  the  ELENA 
technical assistance facility, financed through the Intelligent Energy Europe Programme. The 
facility, implemented by the EIB, provides co-financing for project development services in 
order to prepare and launch bankable sustainable energy investments. The financial support is 
provided  to  local  and  regional  public  authorities  and  bodies  acting  on  their  behalf.  The 
investment  programmes  supported  should  contribute  to  the  2020  energy  and  climate 
objectives  and  need  to  have  a  minimum  leverage  factor  of  25.  Investments  areas  for  which 
technical  assistance  can  be  provided  are  inter  alia  the  refurbishment  of  public  and  private 
buildings  (including  social  housing),  district  heating  and  cooling  networks  as  well  as 

54 

EN 

success 

For 
eueeff.com/pages/eueeffbg_success_stories_en.htm 

stories 

also 

see 

the 

website 

of 

EBRD: 

http://www.bulgaria-

26 

   EN 

 
                                                 
decentralised  cogeneration  systems,  urban  transport,  and  the  local  infrastructure  including 
smart grids and information and communication technologies.  

While  this  facility  is  targeting  local  and  regional  public  bodies,  it  also  effectively  promotes 
energy service companies as the public entities frequently look for their involvement to carry 
out the energy efficiency investments. In just over one year of operation, ten ELENA projects 
have  been  approved  which  will  provide  approximately  €18  million  in  grants  to  final 
beneficiaries  with  a  view  to  mobilizing  about  €1.5  billion  in  invest ments  over  three  year 
project lifetimes. 

•  Energy  Efficiency  financing  facility  established  under  the  European  Economic 

Recovery Programme (EERP) 

In 2009 a programme was established by regulation55 to aid economic recovery for Europe in 
the energy sector by granting €3.98 billion by the end of 2010. In the event of unspent funds, 
the EEPR Regulation states that Commission will propose an amendment of the EEPR with 
regard  to  funding  energy  efficiency  and  renewable  energy  projects.  On  31  May  2010  the 
Commission  presented  in  this  respect  its  proposal,  which  provides  for  the  creation  of  a 
dedicated financial instrument to support the development of energy efficiency and renewable 
energy projects in particular in urban settings. As result of a swift and constructive negotiation 
process  during  the  2nd  half  2010, the  Council  of  Ministers  and  the  European  Parliament 
agreed in December 2010 to the European Commission's proposal to allocate approximately 
EUR 146 million (i.e. 3.7% of the total EEPR envelope) towards such a new financing facility 
dedicated to sustainable energy. This EU contribution comes from EEPR funds mobilised in 
2009 which could not immediately be allocated to projects in the 1st phase of the EEPR. 

The  new  facility  will  take  the  form  of  a  dedicated  investment  fund,  complemented  by 
technical assistance and awareness raising. The initial shareholders of the fund will be the EU 
and the European Investment Bank. In addition to the EU contribution to the fund (about 125 
M€) the EIB will invest up to EUR 75 million into  the facility resulting in a total fund volume 
of about EUR 200 million. The Commission, in cooperation with the EIB, aims to launch this 
facility in the second quarter of 2011. Other financial institutions at Member State level have 
been  invited  and  could  join  the  fund  afterwards.  The  final  size  of  the  fund  will  depend  on 
additional investors (public but also private) and the eventual investment portfolio. 

The  EU  investment  into  the  fund  will  be  placed  as  risk  capital  into  a  "European  Energy 
Efficiency  Fund".  This  fund,  which  will  be  operated  by  a  professional  fund  manager,  will 
provide finance for investment projects by addressing market needs, preferably at municipal 
and  local  level.  The  fund  will  cover  a  large  range  of  financial  products  such  as  senior  and 
junior loans, guarantees or equity participation. In addition, about EUR 20 million of the EU 
funding  will  be  made  available  as  grants  for  project  development  services  (technical 
assistance)  related  to  technical  and  financial  preparation  of  projects.  Finally,  awareness 
raising activities for  national/regional  authorities managing Cohesion/Structural funds in the 
field of sustainable energy are also envisaged. 

Potential beneficiaries are public authorities (e.g. municipalities), at local and regional level, 
and public or private companies, which are acting on behalf of those public authorities, such 

55 

Regulation  (EC)  no  663/2009  of  13  July  2009.  It  allocates  respectively  €2,365  million  to  gas  and 
electricity infrastructure projects, €565 million to offshore wind electricity projects (OWE) and €1,050 
million to carbon capture and storage projects (CCS).  

EN 

27 

   EN 

 
                                                 
as local energy utilities, Energy Service Companies (ESCOs), district heating combined heat 
and power (CHP) companies or public transport providers.  

This  fund  will  invest  in  energy  saving,  energy  efficiency  and  renewable  energy  projects, 
particularly in urban settings, which have a measurable and substantial impact on economic 
recovery within the EU. As regards energy saving/efficiency investments, promoted by local, 
regional  and  (where  justified)  national  public  authorities,  these  could  include  measures  in 
public and private buildings; investments in efficient combined heat and power (CHP), incl. 
micro-cogeneration  and  district  heating/cooling  networks;  investment  in  decentralised 
renewable  energy  sources, 
the 
modernisation of infrastructure, such as street lighting and smart grids, as well as investment 
in renewable energies with a potential for innovation and growth.  

including  micro-generation;  clean  urban 

transport; 

2.5.2.  Promotion of eco-innovations 

For the period 2007-2013, the Entrepreneurship and Innovation Programme (EIP), one of the 
three  pillars  of  the  Competitiveness  and  Innovation  Framework  Programme  (CIP),  has 
earmarked  €433  million  for  eco-innovation.  Out  of   this  budget,  €200  million  have  been 
allocated to the High Growth and Innovative SME Facility (GIF) in view of supporting eco-
innovation as well as other types of innovations in SMEs. GIF allows for the EU budget to 
participate  in  venture  and  risk  capital  funds  set  up  to  provide  equity  to  small  businesses  in 
their  early  development  and  expansion  stages.  When  the  focus  of  these  funds  is  mainly  on 
eco-innovative  SMEs,  the  EU  participation,  through  the  European  Investment  Fund,  can  be 
higher than normal thresholds (up to 50% compared to 25%).  

So far, the uptake from the market has been very satisfactory. Four agreements with Venture 
Capital  funds  (from  4  MS)  investing  in  Eco-innovation  have  been  signed  with  EU 
commitments  of  more  than  €50  million.  Different   types  of  eco-innovations,  e.g.  related  to 
renewable energy sources, energy efficiency or waste and water treatment are financed by the 
funds. In an interim evaluation of the EIP, the efficiency of the GIF in terms of leverage has 
been  highlighted.56  The  impact  of  this  instrument  on  energy  efficiency  improvements  or 
energy  savings  generated  through  eco-innovation  in  SMEs  is  yet  not  foreseeable  as  GIF  is 
operational  only  since  2008  and  investment  periods  are  usually  5  years  and  beyond.  An 
overall  assessment  will  be  possible  at  the  end  of  the  programme  in  2013.  Moreover,  the 
discussions related to the next multiannual financial perspective of the Commission for 2014 -
2020, should also be used as an opportunity to propose possible refinements of the instrument. 

In the framework of the regulation on CO2 emission standards for cars, eco-innovations are as 
well promoted (see 2.4.1). 

2.5.3.  Facilitating financing of energy efficiency investments: overall assessment 

Financing energy efficiency is a complex task as the investments projects are often very small 
and dispersed. With the cooperation engaged with International Financial Institutions on the 
financing  of  energy  efficiency  investments,  the  Commission  has  already  made  a  major 
contribution to facilitate appropriate financing for SMEs and ESCOs. Credit lines from IFIs 
and other public sector banks, notably KfW, have provided an important source of finance to 
energy efficiency projects often through intermediated finance through local banks. While not 

56 

GHK  2009:  Interim  evaluation  of  the  entrepreneurship  and  innovation  programme  DG  Industry- 
European Commission 

EN 

28 

   EN 

 
                                                 
a  pre-requisite,  effective  use  is  often  made  of  EU  funding  in  order  to  provide  technical 
assistance to either the participating bank for capacity building, or for supporting measures to 
final beneficiaries, such as energy audits and other project development services. However, it 
is evident that more innovative financial tools are needed to meet the investing challenge in 
energy efficiency. 

2.6. 

Priority action 6: spurring energy efficiency in the new Member States 

The  EEAP  2006  acknowledges  that  the  potential  for  energy  efficiency  improvements  is 
particularly  large  in  the  new  MS  and  that  energy  efficiency  is  one  of  the  priorities  in  the 
framework  of  cohesion  policies.  Against  this  background,  the  Action  Plan  defined  as  a 
priority action to spur energy efficiency in the new MS by: 

•  Encouraging European Regional Policy to deploy its national and regional programmes to 
promote more intensive investment to improve energy efficiency, in particular in the new 
Member States, including in the multi-family and social housing sectors (2.6.1). 

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

practices in energy efficiency (2.6.2). 

2.6.1.  European  regional  policies  (structural  and  cohesion  funds)  as  instruments  to 

promote energy efficiency 

The European Council agreed in December 2005 on the budget for the 2007-2013 period and 
allocated €347 billion on Structural and Cohe sion Funds, of which 81.5% are planned to be 
spent  in  the  "Convergence"  regions.  Based  on  simplified  procedures,  nearly  all  of  the  436 
programmes covering all EU regions and Member States were agreed before the end of 2007. 
The radical shift in their priorities means that one quarter of resources is now earmarked for 
research  and  innovation  and  about  one  third  on  environmental  infrastructure  and  measures 
combating climate change, including energy efficiency. 

Financial support equivalent to 1.2% of the total budget or €4.4 billion are allocated to energy 
efficiency, cogeneration and energy management in the industrial, commercial, residential and 
public sectors. Until May 2009 support to residential buildings under the ERDF was possible 
but restricted to the EU12 and under limited conditions.  

Looking into the achievements so far, the following assessment can be made: 

First,  major  progress  towards  promoting  more  intensive  investments  in  energy  efficiency 
improvements through EU Regional Policy has been achieved with the adoption of two key 
regulatory amendments, initiated in the context of the European Economic Recovery Plan and 
adopted in May 200957 and June 201058, respectively, relating to the: 

•  Extension of the scope of financial support for housing to all MS: From now on, all MS 
have  the  possibility  to  support  the  housing  sector  with  up  to  4%  of  their  national  ERDF 
allocations,  also  in  view  of  supporting  social  cohesion.  This  amendment  represents  an 
additional  potential  of  up  to  €8  billion  at  EU   level  that  could  be  reallocated  from  other 

57 

58 

Regulation (EC) No 397/2009 on the European Regional Development Fund as regards the eligibility of 
energy efficiency and renewable energy investments in housing 
Regulation (EU) No 539/2010 laying down general provisions on the European Regional Development 
Fund,  the  European  Social  Fund  and  the  Cohesion  Fund  as  regards  simplification  of  certain 
requirements and as regards certain provisions relating to financial management, see Article 44. 

EN 

29 

   EN 

 
                                                 
allocations  in  the  present  programmes  for  energy  efficiency  in  housing,  depending  on  to 
what extent the MS will chose to use these new possibilities. 

•  Combination  of  Structural  funds  with  private  sector  financing:  As  part  of  an 
operational  programme,  Structural  Funds  can  now  finance  expenditures  in  respect  of  an 
operation comprising contributions to support: 

– 

– 

– 

Financial  engineering  instruments  (e.g.  JEREMIE)  for  enterprises,  primarily  small 
and  medium-sized  ones,  such  as  venture  capital  funds,  guarantee  funds  and  loan 
funds; 
Urban development funds, that is, funds investing in public-private partnerships and 
other projects included in an integrated plan for sustainable urban development (e.g. 
JESSICA);  By  the  end  of  September  2010,  seven  JESSICA  funds  with  an  energy 
component are implemented in six MS, committed to invest a total of €784 million in 
energy efficiency measures and renewable energies infrastructure in cities. 
Funds  or  other  incentive  schemes  providing  loans,  guarantees  for  repayable 
investments,  or  equivalent  instruments,  for  energy  efficiency  and  use  of  renewable 
energy in buildings, including in existing housing. The first such fund established in 
Europe was set up in Greece in July 2010. 

Second,  the  picture  concerning  the  effective  use  of  the  €4.4  billion  allocated  for  energy 
efficiency  in  the  MS  shows  a  mixed  result,  but  in  general  terms  it  is  progressing  at  a  slow 
pace. In autumn 2009, the overall EU average selection rate of projects in this area was 20% 
(to be compared with 27% for Cohesion Policy as a whole). Nevertheless, a number of MS 
offer  some  positive  examples  with  a  good  level  of  selected  projects  (see  graph  2),  such  as 
Czech  Republic  (49%),  Lithuania  (48%),  Malta  (44%),  Austria  (41%),  Ireland  (34%), 
Belgium (33%), Estonia (28%), the Netherlands (26%) and Germany (22%). 

Graph 2: Planned investments and rate of implementation in energy efficiency projects 2007-
2013 

Source: Strategic report 2010 

EN 

30 

   EN 

 
 
Other MS present insufficient progress. Overall, the implementation of the energy priorities is 
advancing faster in the Regional Competitiveness and Employment (RCE) regions than in the 
Convergence  ones.59  Further,  it  is  important  to  mention  that  not  all  investments  in  energy 
efficiency, inter alia in public buildings, are covered by the € 4.4 billion allo cation. Indeed, in 
a  number  of  operational  programmes  of  the  12  new  MS,  support  to  for  example  the 
educational and health sectors include the refurbishment of schools or hospital buildings. In 
this  context,  energy  efficiency  investments  are  included  but  not  accounted  for  under  the 
particular allocation to energy efficiency measures. 

Third,  fourteen  MS60  reported  having  action  in  support  of  energy  efficiency  and  renewable 
energy investments in the housing sector, following the priorities of the Recovery Plan, with 
or without modification of the Operational Programmes, and Estonia and Latvia were active 
in this area already from the outset of the period, which was possible in EU12. 

To conclude, it can be said that the financial resources available to MS from Structural and 
Cohesion Funds are not sufficiently channelled into investments to promote energy efficiency 
improvements. To this end, the Commission Communication "Regional Policy contributing to 
sustainable  growth  in  Europe  2020"61  sets  out  how  managing  authorities  can  realign  current 
Regional  Policy  programmes  to  Europe  2020  sustainable  growth  objectives,  among  them  the 
energy efficiency target. Regions and cities are encouraged to seize the new opportunities in 
energy  investments  in  buildings  and  to  accelerate  investments  in  renewable  energies  and 
energy efficiency, according to their local energy potential. In this context, the importance of 
using Technical Assistance to facilitate the preparation of a pipeline of projects is singled out. 

2.6.2.  Networking to ensure financing of best practices in energy efficiency 

Since  the  adoption  of  the  EEAP  at  the  end  of  2006,  different  types  of  schemes  have  been 
implemented  to  exchange  information  about  best  practices  and  ensure  their  financing.  The 
main instrument in this context is the Intelligent Energy Europe Programme (IEE) established 
in 2003 to promote renewable energy sources and unlock the potential for energy efficiency in 
Europe.  Although  IEE  is  a  relatively  small  financing  programme  (€250  million  over  2003-
2006  and  €730  million  over  2007-2013),  it  acts  as  a  catalyst  for  further  investments  and 
contributes  to  the  development  of  effective  EU  energy  policy,  as  well  as  national/  regional 
policy  making.  The  IEE  programme  also  acts  as  a  mechanism  for  testing  and  relaying  new 
ideas, piloting of initiatives which are later scaled-up or rolled out to other Member States.  

The first IEE programme (referred to as IEE-1) started in 2003 and ended in December 2006. 
Projects  financed  under  IEE-1  lasted  between  two  and  three  years  and  started  delivering 
results  from  2007  onwards.  More  than  300  projects  were  supported  and  about  half  of  them 
aimed  at  overcoming  the  market  barriers  to  energy  efficiency.  Seventeen  IEE-1  projects 
exclusively addressed networking and exchanging knowledge between countries and regions 
to  ensure  financing  of  best  practices  in  energy  efficiency.  These  projects  covered  best 
practices  in  financing,  promoting  energy  services  and  procurement  routines  to  local 
authorities, energy performance contracting, white certificates as well as innovative schemes 
tailored to refurbishment of social housing.  

59 
60 
61 

See http://ec.europa.eu/regional_policy/policy/reporting/cs_reports_en.htm. 
BE, BG, DK, EL, ES, FR, IT, LT, LV, MT, NL, PL, PT, UK 
COM(2011) 17, 26.1.2011 

EN 

31 

   EN 

 
                                                 
The second IEE programme (IEE-2) started in 2007 and runs until 2013. The funding rate for 
beneficiaries  increased  from  50%  to  75%  to  encourage  inter  alia  the  participation  of 
organisations from new MS. Among the IEE-2 projects supported so far, four are especially 
worth mentioning as being directly in line with the priority action defined: 

•  Concerted  Action  (CA)  on  the  Energy  Services  Directive  (ESD)  (2008-2011):  This 
strategic 3-year action involves all MS and aims to achieve a certain degree of convergence 
across Europe in the implementation of the ESD Directive. One of the five core themes of 
the CA is on the use of financial instruments. It looks in particular on how to repeal and 
amend  legislation  that  impedes  or  restricts  the  use  of  financial  instruments  for  energy 
savings  in  the  market  for  energy  services;  how  to  introduce  funds  for  energy  efficiency; 
how to design and implement tariff systems that promote energy efficiency; The Concerted 
Action is foreseen to be continued beyond 2011. 

•  ChangeBest  project62  (2009-2012)  aims  to  foster  the  development  of  energy  service 

companies. 

•  EESI  project63  (2009-2012)  aims  to  promote  energy  performance  contracting,  in 

particular in pilot projects within the public sector. 

•  FRESH project64 (2009-2012) aims also at fostering energy performance contracting but 

targeting social housing refurbishment. 

The above-mentioned actions builds on so-called 'soft measures' – exchange of best practices, 
capacity  building,  promotion  and  dissemination  –  which  impacts  are  by  nature  difficult  to 
quantify  in  terms  of  energy  savings.  For  the  listed  networking  projects  it  is  yet  too  early  to 
assess their impacts as they have only started in 2009. However, wherever impacts of similar 
soft  measures  could  be  assessed,  they  proved  to  be  very  high  compared  to  the  level  of 
Community  support.  As  an  example  the  IEE  ClearSupport  project  (2007-2009)  established 
Project  Service  Facilities  in  Latvia,  Lithuania,  Poland,  Czech  Republic  and  Greece  to  assist 
housing associations, municipalities and building project developers on project identification, 
documentation  and  financing.  At  the  end  of  September  2009,  218  renovation  projects  had 
been  triggered  by  the  ClearSupport  project,  representing  about  18,000  tons  of  CO2  savings. 
Overall  the  expected  investment  triggered  by  this  project  was  more  than  20  times  the 
Community contribution.65 

2.6.3.  Spurring energy efficiency in new Member States: Overall assessment 

The  Commission  has  taken  decisive  steps  to  trigger  energy  efficiency  investments  in  new 
Members States through the EU Regional Policy and through the exchange of Best Practices, 
in particular through the Intelligent Energy Europe programme.  

As shown in chapter 2.6.1, the challenge is that the financial resources available to MS from 
Structural  and  Cohesion  Funds  are  not  sufficiently  channelled  into  investments  to  promote 
energy  efficiency  improvements.  Hence  the  Commission  will  have  to  provide  additional 
orientation  and  good  practices  to  regional  policy  managing  authorities  and  stakeholders  in 
order  to  strengthen  the  instrument  of  regional  policies  to  increase  energy  efficiency  in  new 
Member States. Moreover, to facilitate the take up of the financial allocations offered by EU 
Regional  Policy  to  support  energy  efficiency,  particularly  for  the  building  sector, 

62 
63 
64 
65 

www.changebest.eu 
www.european-energy-service-initiative.net 
www.fresh-project.eu 
www.clearsupport.eu 

EN 

32 

   EN 

 
                                                 
opportunities for further synergies will be explored between energy policy instruments such 
as  IEE  (including  its  ELENA  technical  financing  facility  operated  by  the  EIB)  and  the 
Covenant  of  Mayors.  The  IEE  programme  in  particular  offers  the  possibility  to  support 
capacity  building  of  managing  authorities,  like  it  has  been  done  in  certain  projects.66  More 
generally the programme should continue to offer support to organisations from new MS to 
team up with partners in EU15 and develop concrete actions to trigger investment in energy 
efficiency,  in  particular  in  areas  which  offer  a  significant  savings  potential  like  the 
refurbishment of apartment blocks. 

2.7. 

Priority action 7: a coherent use of taxation 

The  Action  Plan  stated  that  experience  has  shown  that  taxation,  as  a  means  to  internalise 
external costs, was a powerful tool in promoting energy efficiency. Therefore the Commission 
defined  as  a  priority  action  to  achieve  a  coherent  use  of  taxation  by  committing  to  the 
following measures in the EEAP 2006: 

•  Prepare a Green Paper on market based instruments (2.7.1); 
•  Revise  the  Energy  Taxation  Directive  to  facilitate  a  more  targeted  and  coherent  use  of 
energy taxation by integrating notably energy efficiency considerations and environmental 
aspects (2.7.2); 

•  Consider  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  hand,  to  promote  the  purchase  of  such 
appliances and equipment (2.7.3). 

2.7.1.  Green  paper  on  market  based  instruments  for  environment  and  other  policy 

purposes 

The  Commission  adopted  in  March  2007  a  Green  paper67  on  market-based  instruments 
(MBIs) for environment and related policy purposes. Market-based instruments, such as taxes, 
charges and tradable permit schemes provide a flexible and cost-efficient means for reaching 
given policy objectives. In the Green Paper, the Commission explores a wide range of areas 
where the use of market-based instruments including taxation could be promoted further, such 
as  energy  consumption,  environmental  impact  of  transport  and  other  areas  of  environment 
policy.  More  in  particular  the  Green  paper  explores  possible  ways  forward  with  the  Energy 
Taxation  Directive  2003/96/EC  to  make  it  more  supportive  of  the  EU  energy  and 
environmental policies in line with the EEAP 2006. The Green paper also addresses broader 
issues such as environmental tax reforms and role of taxation and fiscal instruments in general 
in the context of the integrated energy and climate change agenda of the EU. 

Based on the Green paper, the Commission launched in July 2007 a broad public consultation 
on  advancing  the  use  of  MBIs  for  environment  and  energy  related  policy  purposes  in  the 
Community.  One  outcome  of  the  consultation  was  the  suggestion  to  expand  their  use  as  an 
environment policy tool. 68 

66 
67 
68 

See www.promoscene.eu 
COM(2007) 140 final 
The  analysis  of  the  replies  to  the  Green  Paper  have  been  published,  see  SEC(2009)  53  final; 
http://ec.europa.eu/environment/enveco/pdf/analyse_doc.pdf 

EN 

33 

   EN 

 
                                                 
2.7.2.  Revision of the Energy Taxation Directive 

The  current  version  of  the  Energy  Taxation  Directive  (ETD)  was  adopted  in  October  2003 
and entered into force on January 2004, but derogations applied in several areas. It creates an 
EU-wide  system  for  the  taxation  of  all  energy  products.  The  most  important  points  of  the 
current Community framework for energy taxation are: 

•  Energy products are only be taxed when used as motor or heating fuel, not when used as 

raw materials, while electricity is taxed irrespective of its use; 

•  Exemption of energy products or electricity used to produce electricity and electricity used 

to maintain the ability to produce electricity; 

•  The "levels of taxation" applied by the Member States may not be lower than the minimum 

rates set in the Directive.  

•  MS are allowed to differentiate between commercial and non-commercial diesel used for 

transport, and specific provisions apply to the taxation of commercial diesel;  

•  Business use of energy products can be taxed at a lower rate than non-business use;  
•  Energy  products  used  for  international  air  transport  and  navigation  remain  exempt  from 

taxation (due to the existence of international commitments);  

•  MS can choose to exempt, among other things, electricity from renewable energy sources 

and energy used for trains, metros, trams or trolley buses. 

The approach has been so far to provide for necessary minimum common rules to prevent a 
situation  where  differences  in  national  energy  taxation  policies  create  distortions  on  the 
internal  market.  However,  the  current  legislative  framework  does  not  explicitly  incorporate 
environmental policy considerations. Without a revision, the current inconsistent treatment of 
energy sources in the ETD will remain, therefore taxation will not steer energy efficiency in a 
coherent  way.  Member  States  may  refrain  from  actively  using  the  taxation  instrument  for 
environmental policy purposes such as increasing energy efficiency. Therefore a revision of 
the ETD is necessary to provide a more robust framework for MS committed to pursue with 
the ambitious energy and environmental objectives through taxation. 

2.7.3.  Tax credits as incentives for enterprises and consumers 

The Commission published in December 2008 a study on "the costs and benefits associated 
with the use of tax incentives to promote the manufacturing of more and better energy-
efficient appliances and equipment and the consumer purchasing of these products."69 

The study deals with the fiscal instruments that could potentially be used to promote energy 
efficiency in the EU. It focuses on direct fiscal incentives (subsidies, tax credits to consumers 
and  to  manufacturers)  and  compares  their  costs  and  benefits  with  those  of  conventional  tax 
instruments (energy taxation) and a regulatory measure. The costs and benefits are assessed 
for  four  different  appliances  selected  for  their  high  energy  saving  potential:  refrigerators, 
washing  machines,  boilers  and  compact  fluorescent  lamps.  In  each  case  the  assessment  is 
carried  out  for  two  different  EU  Member  States  in  order  to  capture  the  impact  of  different 
using patterns, price levels and market penetration of products. The countries included in the 
analysis are France, Denmark, Italy and Poland. 

69 

Biointelligence  Services  for  European  Commission/  DG  TAXUD  (2009):  Study  on  the  costs  and 
benefits  associated  with  the  use  of  tax  incentives  to  promote  the  manufacturing  of  more  and  better 
energy-efficient  appliances  and  equipment  and  the  consumer  purchasing  of  these  products,  Final 
Report. http://ec.europa.eu/taxation_customs/common/publications/studies/index_en.htm. 

EN 

34 

   EN 

 
                                                 
The study draws the following conclusions: 
•  Energy taxation appears as the most cost-effective policy to promote energy efficiency in 

the EU;  

•  Subsidies  and  tax  credits  have,  however,  a  considerable  potential  of  generating  energy 
savings. In some cases energy savings induced by subsidy schemes (direct subsidies or tax 
credits)  exceed  those  generated  by  energy  tax  increases  manifold  (e.g.  refrigerators  in 
France  and  Denmark).  The  subsidy  schemes  tend  to  have,  however,  higher  welfare  costs 
than  the  increases  of  energy  taxation,  which  makes  their  benefit-  cost  balance  in  some 
cases negative (e.g. refrigerators in France); 

•  The  comparison  of  different  incentive  instruments  reveals  that  direct  subsidies  and  tax 
credits to consumers are much more cost effective than tax credits to manufacturers. In the 
latter case the welfare costs/ ton of CO2 (€ 650 in Italy and € 234 in Poland) exceed by far 
all  the  reasonable  estimates  of  the  CO2  externality,  and  hence  such  policies  would  cost 
much more to the society than the benefits they could generate; 

•  The  regulatory  measure  (removing  class  B  refrigerators  or  lower  from  the  market)  also 
turns out to have a relatively low capacity to generate energy savings compared with other 
policy options and therefore a fairly negative benefit- cost balance; 

The study was meant to inform the policy-makers about the costs and benefits of using direct 
tax  incentives  to  promote  the  purchases  of  energy-efficient  products.  It  remains  in  the 
competence of the Member States to use such instruments. 

2.7.4.  Coherent use of taxation: overall assessment of the priority action 

A coherent use of taxation is of paramount importance to trigger energy efficient behaviour. 
The Commission has put forward a Green paper on market based instruments and a study on 
tax  incentives  in  the  context  of  the  EEAP's  priority  action  on  taxation.  However,  the  main 
priority  was  to  table  a  proposal  for  a  revised  energy  taxation  directive,  which  has  not  been 
finalized  yet.  Only  once  a  revised  energy  taxation  directive  would  enter  into  force,  will  a 
decisive  step  be  achieved  towards  a  more  coherent  use  of  taxation.  Moreover  they  are  still 
many  taxation  schemes  in  place  which  are  inconsistent  with  our  energy  and  climate 
objectives, such as the company car taxation benefits granted by legislation of various MS as 
it supports additional car use and also bigger, more polluting vehicles.70 Taxation is thus an 
area which needs further attention, keeping in mind its strong subsidiarity character. 

2.8. 

Priority action 8: raising energy efficiency awareness 

The Action Plan acknowledges that the efficient use of energy requires factors that motivate, 
facilitate  and  reinforce  rational  and  responsible  behaviour.  Important  predisposing  elements 
for  rational  market  behaviour  are  institutional  capacity,  awareness,  and  clear,  credible  and 
accessible information in energy-using technologies and techniques. Moreover, education and 
training are required for all stakeholders, and information technology is vital. It is against this 
background  that  the  EEAP  2006  defined  as  priority  action  to  raise  energy  efficiency 
awareness by developing through Community programmes: 

•  Education and training plans and programmes for energy managers in industry and utilities 

(2.8.1); 

•  Teaching aids for primary, secondary and vocational educational curricula (2.8.2). 

70 

See  European  Commission  (2010):  Taxation  Paper  –  Company  Car  Taxation,  Working  paper  22 
http://ec.europa.eu/taxation_customs/resources/documents/taxation/gen_info/economic_analysis/tax_pa
pers/taxation_paper_22_en.pdf 

EN 

35 

   EN 

 
                                                 
2.8.1.  Education and training plans for energy managers in industry and utilities 

Education  and  training  plans  cover  a  wide  range  of  aspects.  These  are  detailed  out  in  the 
annex of the EEAP and include inter alia: 

1. Promotion of energy management schemes  
2. Energy efficient procurement guidelines 
3. Guidelines on how to promote energy efficient products 
4. Training toolkits for industry, SMEs and the public sector 
5. Reference document on Best Available Techniques on Energy Efficiency 
6. Involvement of the Intelligent Energy Europe Programme 

Promotion of energy management schemes 

With 
the  Eco-Management  and  Audit  Scheme,  EMAS,  a  voluntary  environmental 
management  system  (EMS)  was  established,  under  which  companies  and  other  public 
organisations  evaluate,  manage  and  continuously  improve  their  environmental  performance. 
EMAS  has  been  operative  since  199571  and  was  originally  restricted  to  companies  in 
industrial sectors. Since 2001 EMAS has been open to all economic sectors including public 
and  private  services.72  EMAS  was  strengthened  by  the  integration  of  EN/ISO  14001  as  the 
environmental management system required by EMAS, by adopting an attractive EMAS logo 
to signal EMAS registration to the outside world, and by considering more strongly indirect 
effects  such  as  those  related  to  financial  services  or  administrative  and  planning  decisions. 
Amending  the  EMAS  regulation  was  explicitly  listed  as  an  EEAP  measure  and  the  latest 
revision  (EMAS  III)  came  into  effect  on  11  January  2010.  Currently,  more  than  4,400 
organisations and approximately 7,600 sites are EMAS-registered.  

In 2009, the Commission73 analyzed the costs and benefits of EMAS registrations and found 
convincing evidence for a number of benefits, including reduced costs for resources and waste 
management, risk minimisation, regulatory compliance, regulatory relief, improved relations 
with  internal  and  external  stakeholders,  and  achieving  competitive  advantage.  For  SMEs, 
gaining access to public contracts was highlighted as a key benefit. For SMEs in the supply 
chain EMAS registration of client companies can have a direct impact. A growing number of 
small companies will need to demonstrate (or have already demonstrated) a recognised track 
record of regular, positive environmental management. In fact, often supplier companies are 
required to have EMAS registration in order to gain market access. For instance, in industry 
sectors close to the customer, suppliers note that their clients request EMAS registration. To 
help SMEs with establishing the EMAS, a specific toolkit has been developed.74 

The Commission committed to lead by example and started the EMAS registration process of 
its own buildings. The registration of all buildings will be finalized by 2014. The European 
Parliament is EMAS registered for their three sites Brussels, Luxembourg and Strasburg (see 
2.2.3). 

Energy efficiency procurement guidelines 

71 
72 
73 
74 

Council Regulation (EEC) No 1836/93 
Regulation (EC) No 761/2001 
European Commission (2009): Study on the Costs and Benefits of EMAS to Registered Organisations 
http://ec.europa.eu/environment/emas/toolkit/index.htm 

EN 

36 

   EN 

 
                                                 
While no energy efficiency procurement guidelines have been put forward, the Commission 
adopted in 2008 a communication “Public procurement for a better environment"75 to promote 
Green  Public  Procurement  (GPP)  as  voluntary  instrument  for  public  authorities.  GPP  is 
defined  as  "a  process  whereby  public  authorities  seek  to  procure  goods,  services  and  works 
with  a  reduced  environmental  impact  throughout  their  life  cycle  when  compared  to  goods, 
services and works with the same primary function that would otherwise be procured.”  

Green purchasing is also about influencing the market. By promoting and using GPP, public 
authorities  can  provide  industry  with  real  incentives  for  developing  green  technologies  and 
products. In some sectors, public purchasers command a large share of the market (e.g. public 
transport  and  construction,  health  services  and  education)  and  so  their  decisions  have 
considerable impact. 

A  dedicated  toolkit76  was  designed  for  use  by  public  purchasers  and  by  GPP  trainers  or  for 
integration in general public procurement training courses and workshops.  

The Commission is following the GPP guidelines for its own procurement activities. 

Reference document on Best Available Techniques on Energy Efficiency  

In the context of the IPPC Directive, a Reference Document on Best Available Techniques on 
Energy  Efficiency  has  been  adopted  in  2009  (see  2.3.1),  which  features  exhaustive 
information  on  Energy  Efficiency  Management  Systems  (ENEMS)  and  the  different 
techniques supporting its implementation is provided, such as:77  

•  Planning  actions  and  investments  in  an  integrated  way  to  continuously  minimise  the 

environmental impact of an installation; 

•  Considering the installation and its systems as a whole, using energy efficiency design and 

selecting energy efficient process technologies for new and upgraded installations; 

•  Increasing  energy  efficiency  by  increasing  process  integration,  and  refreshing  the  energy 

ENEMS periodically; 

•  Maintaining sufficient staff expertise; 
•  Communication of energy efficiency issues; 
•  Effective process control and maintenance; 
•  Monitoring and measuring energy usage; 
•  Energy auditing; 
•  Monitoring and benchmarking energy efficiency levels for installations and processes. 

Guidelines on how to promote energy efficient products 

Guidelines78  have  been  prepared  to  facilitate  the  implementation  of  the  regulation  on 
ecodesign  requirements  for  standby  and  off-mode  power  consumption  of  electrical  and 
electronic  household  and  office  equipment  ((EC)  No  1275/2008),  in  particular  for  SMEs. 
Moreover,  a  brochure  has  been  prepared  on  how  ecodesign  can  help  the  environment  by 
making products smarter, which was disseminated via the Europe Enterprise Network.  

75 
76 
77 
78 

COM (2008) 400 
http://ec.europa.eu/environment/gpp/toolkit_en.htm 
EC (2009): Reference Document on Best Available Techniques on Energy Efficiency, chapter 2. 
http://ec.europa.eu/energy/efficiency/ecodesign/doc/legislation/guidelines_for_ 
smes_1275_2008_okt_09.pdf  

EN 

37 

   EN 

 
                                                 
Intelligent Energy Europe Programme 

In  addition,  many  activities  have  been  initiated  to  raise  energy  efficiency  awareness  in 
industry  and  SMEs  in  particular,  under  the  umbrella  of  the  Intelligent  Energy  Europe 
Programme. Some key projects targeting SMEs to optimize their energy use are: 

•  CHANGE  (09/2008-08/2010):79  Supports  SMEs  in  optimising  their  energy  use  by 
developing a European network of intelligent energy advisors at Chambers of Commerce 
and Industry (CCIs) and by kick-starting or enhancing concrete assistance to SMEs. This 
project,  co-ordinated  by  EUROCHAMBRES  involves  61  CCIs  from  12  European 
countries.  As  a  result  of  the  project,  more  than  60  specifically  trained  Chamber  advisors 
operate  as  "first  ports  of  call”  for  SMEs  in  energy  matters.  Facilitating  their  access  to 
information, organising information events, and encouraging businesses to take energy pre-
checks, this advisors will bridge the gap between SMEs and existing services available on 
the market. Further, a reference manual for business organisations on how to advise SMEs 
on energy topics has been prepared in June 2010.  

•  ENGINE  (10/2007-03/2010):80  Addresses  managing  and  technical  staff  in  SMEs  of  the 
automotive,  metal  and  wood  processing  sectors  as  well  as  food  industries  and  energy 
efficiency  advisors  in  professional  associations,  Chambers  of  Industry  and  Commerce, 
energy  service  companies  or  relevant  stakeholders  in  public  authorities  in  the  partner 
regions. The activities include specific energy efficiency checks for the SMEs and training 
for potential and existing energy advisors to support capacity building on both sides. Aims 
at  setting  up  regional  networks  and  promotional  campaigns  for  energy  efficiency  in 
producing industries. 

2.8.2.  Teaching aids for primary, secondary and vocational educational curricula 

In the framework of the IEE Programme, about 20 energy education projects which involve 
over 200 beneficiaries from 26 MS have been launched. Around 5,000 schools across Europe 
have benefited directly from the actions with a huge replication potential to many millions of 
students, teacher and parents. 

In  Summer  2006,  the  Commission  already  launched  a  raising  awareness  campaign  "You 
control  climate  change".  The  Campaign  website81  has  a  dedicated  section  for  schools,  to 
enable teachers to use the provided teaching material in the classroom on a voluntary basis.  

In  this  context,  the  EEAP  2006  put  forward  a  proposal  to  launch  a  vocational  educational 
initiative on energy efficiency, which has not been initiated yet. However, a similar initiative 
'Build  up  skills:  Sustainable  Building  Workforce'  will  be  launched  by  the  Commission  in 
2011 in the framework of the IEE programme. 

2.8.3.  Achieving more energy efficiency awareness: overall assessment 

Promoting  energy  efficiency  awareness  is  a  key  to  promote  the  use  of  energy  efficient 
products  (lighting,  appliances,  cars)  as  well  as  the  implementation  of  energy  efficiency 
improvements measures by households, private companies and the public sector. 

79 
80 
81 

http://www.eurochambres.eu/Content/Default.asp?pageid=232 
http://www.engine-sme.eu/ 
http://ec.europa.eu/environment/climat/campaign/index_en.htm 

EN 

38 

   EN 

 
                                                 
In the context of the EEAP 2006, the measures defined for priority action have been almost all 
finalized.  The  issue  remains  nevertheless  relevant  and  should  be  further  tackled  in  future 
policies. The role of training, especially for the labour force, becomes even more imperative 
as  a  well  trained  staff  (workers)  is  a  prerequisite  to  implement  some  key  energy  efficiency 
policies  such  as  the  renovation  of  the  existing  building  stock  with  a  view  of  improving  its 
overall energy performance (see 2.2.3). 

2.9. 

Priority action 9: Energy Efficiency in built-up areas 

About three quarters of the population in the EU live in built-up areas in or around cities and 
this urbanization trend will continue. Such urban areas consume 80% of the energy in the EU 
and emit about the same share of greenhouse gases. Shaping energy consumption patterns in 
built-up areas is in the hands of the responsible regional and local authorities. Consequently, 
triggering  stronger  commitment  of  cities  and  regions  to  act  is  key  to  reduce  energy 
consumption at local level. To this end, the Commission defined as the ninth priority action to 
create a: 

“Covenant  of  Mayors”  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. 

The  Commission  implemented  this  priority  with  a  much  more  ambitious  approach,  upon 
which cities and regions commit formally to go beyond the objectives of the EU in terms of 
CO2 reduction (more than 20% by 2020), by drafting and implementing Sustainable Energy 
Action  Plans,  subject  to  scrutiny  by  the  Commission  services.  Covenant  signatories  accept 
termination  of  their  involvement  in  the  Covenant  in  case  of  non  respect  of  their  own 
commitment. The commitment is unilateral and not conditional to any kind of support by the 
EU.  Covenant  cities  also  commit  to  provide  reports  outlining  the  progress  of  their  Action 
Plans. In order to allow smaller municipalities to be in a position to commit to the Covenant 
principles,  the  Commission  signs  agreements  with  the  so  called  Supporting  Structures, 
national and sub-national admin such agreements have been signed so far. 

The  Covenant  procedure  was  launched  in  January  2008.  After  a  consultation  period, 
representatives  from  cities  and  regions  submitted  to  the  Commission  a  final  version  of  the 
Covenant text in October 2008. From that moment on, cities and regions start to adhere. By 
February  2009,  when  the  first  Covenant  Ceremony  took  place  at  the  European  Parliament, 
370 cities had joined. For the second Ceremony in May 2009, the Covenant consisted of 1680 
signatories. The 2000th signatory adhered in October 2009. More than 132 million people are 
living  in  a  EU  Covenant  territory.  The  expected  results  in  CO2  tons  avoided  exceed  145 
million tonnes per year by 2020. More than €8 billion  have been mobilised in just one year of 
full operation. 

Overall assessment 

So far the investment by the Commission to facilitate the Covenant has been relatively small. 
The most important investment is linked to the European Local Energy Assistance facility 
(ELENA  -  see  2.5.1)  operated  by  the  European  Investment  Bank.  Only  through  ELENA, 
almost €900 million were mobilised in Covenant terr itories in just 10 months in 2010 with an 
EU support of less than €8 million. Besides, the  Covenant of Mayors will be extended to the 
European Neighbourhood Policy countries with a €5 million Decision in 2010. Through the 

EN 

39 

   EN 

 
Covenant,  more  than  €300  million  from  the  C ohesion  Funds  have  been  used  in  energy 
efficiency actions in local settings. 

In technical terms, several hundred Sustainable Energy Action Plans have been produced and 
international  organisations, 
submitted,  with 
multinational companies and foreign governments are requiring access to that information in 
order to develop new approaches. 

impressive  results.  UN  agencies,  other 

The Covenant attracted from the inception moment lots of media attention and high support 
by  top  decision-makers  at  EU  and  national  level.82  They  have  also  taken  the  Covenant 
message to other fora, often outside the EU (for instance, in China, USA or Latin America).  

The main advantage of the Covenant lays in its bottom-up approach and full application of the 
subsidiarity principle. The role of the Commission is limited to provide a EU dimension and 
some supporting instruments and to guard the respect of the commitments. Because of that, it 
can be managed with very limited resources and high effectiveness. 

However,  it  will  take  some  additional  years  to  show  whether  the  energy  saving  potential 
channelled through the Covenant of Mayors will be fully tapped. The success of the Covenant 
cities and regions will also to some large extend depend on provided financial and technical 
support. To this end, the Commission would need to further reinforce the Covenant, inter alia 
with additional resources to effectively tackle energy use in urban buildings and transport. 

2.10. 

Priority action 10: Fostering energy efficiency worldwide 

The last priority action of the EEAP is to foster energy efficiency worldwide. To this end, the 
Commission  stated  it  would  take  the  initiative  to  reach  a  framework  agreement  with  key 
external trading partner countries and international organisations. The agreement would focus 
on improving energy efficiency in end-use sectors and energy transformation and use a large 
number of policies and measures. 

2.10.1.  The international Partnership on Energy Efficiency Cooperation (IPEEC) 

The priority action has taken the form of the International Partnership for Energy Efficiency 
Cooperation  (IPEEC).  This  is  a  major  Commission  initiative  in  the  G8  context  which  was 
officially  launched  in  2009.  It  is  a  high  level  forum  for  enhancing  and  coordinating  joint 
efforts  to  accelerate  the  adoption  of  sound  energy  efficiency  improvement  practices.  The 
Partnership provides  a forum for discussion, consultation and exchange of information. The 
present 15 members are the G8, the EU and the emerging economies Brazil, China, India as 
well  as  Australia,  Mexico,  and  South  Korea.  IPEEC  is  open  to  all  countries  wishing  to 
contribute to energy efficiency. A number of dedicated Task Groups work on issues such as 
sustainable  buildings,  energy  management,  and  efficient  equipment  and  appliance 
deployment. Meetings take place on a regular basis. 

2.10.2.  Other measures addressing energy efficiency worldwide 

In  addition  to  the  creation  of  IPEEC,  the  EEAP  2006  put  forward  more  measures  fostering 
energy efficiency beyond the EU, such as: 

82 

Presidents  Barroso,  Buzek,  Van  der  Brande,  Bresso,  Zapatero  and  others  have  attended  Covenant 
ceremonies and expressed full support. 

EN 

40 

   EN 

 
                                                 
•  Strengthening of energy efficiency in energy and trade treaties, agreements, dialogues and 

other cooperation frameworks; 

•  Increasing  international  cooperation  on  measurement  methods  for  minimum  efficiency 

requirements and labelling; 

•  Voluntary  agreements  with  export  industries  on  information,  minimum  efficiency 

requirements and labelling;  

•  Creation  of  an  international  network  for  dissemination  of  information  and  advice  on 

efficient technologies. 

Stronger energy efficiency focus in cooperation frameworks 

The  focus  on  energy  efficiency  in  the  EU's  bilateral  relations  has  definitely  increased. 
Cooperation  on  energy  efficiency  is  systematically  covered  in  negotiations  on  legal 
framework  agreement  with  third  countries.  These  agreements  are  often  complemented  by 
'energy dialogues' with individual third countries or groups of countries and which take place 
on  a  regular  basis  including  exchanges  on  energy  efficiency  (e.g.  Brazil,  India,  Russia,  the 
Gulf region). Energy efficiency is also included in Action Plans designed in the framework of 
the European Neighbourhood Policy.  

Moreover,  improving  energy  efficiency  measures  and  energy  savings  is  covered  in  several 
Memoranda  of  Understanding  on  energy  between  the  EU  and  third  countries:  China  is  a 
notable example. Regarding the ACP countries, EU-Africa Energy Partnership was launched 
in  December  2007,  featuring  energy  efficiency  as  one  of  its  key  elements.  This  partnership 
will be supported by concrete projects developed under a Thematic Program on environment 
and sustainable management of natural resources including energy as well as the EU-Africa 
Infrastructure Partnership. Worth mentioning is also the Action Plan on Sustainable Industrial 
Policy which has a strong focus on international cooperation. 

International cooperation on measurement methods for minimum efficiency requirements 
and labelling 

Cooperation  on  measurement  methods  are  a  focus  in  IPEEC  which  has  a  dedicated  Task 
Group  on  the  development  of  energy  efficiency  indicators,  led  by  France.  The  issue  is 
incidentally also being discussed in bilateral relations with major partners such as Russia. 

International  network  for  dissemination  of 
technologies 

information  and  advice  on  efficient 

The collaboration by members of the G8 + G5 in the context of the so called 'Heiligendamm 
Process' focused on extensive exchange of information on energy efficiency in buildings. This 
process  was  formally  ended  in  2009  but  is  being  extended  and  actively  taken  up  in  the 
framework of IPEEC which has a specific Task Group on sustainable buildings. 

Voluntary  agreements  with  export  industries  on  information,  minimum  efficiency 
requirements and labelling  

The 'Energy Star' programme (see 2.1.4) contains a voluntary agreement on a label for office 
equipment.  It  is  being  applied  in  the  EU,  the  US  and  also  Japan.  It  has  been  renewed  and 
reinforced in 2006 and is expected to be renewed again in 2011. 

EN 

41 

   EN 

 
2.10.3.  Fostering energy efficiency worldwide: overall assessment 

The EU has significantly intensified its efforts to include energy efficiency in its international 
relations.  Intensified  cooperation  should  continue  to  take  place,  inter  alia  in  the  context  of 
IPEEC.  The  objective  is  to  facilitate  actions  that  yield  high  energy  efficiency  gains. 
Harmonisation  of  energy  efficiency  legislations  at  global  level  remains  complicated  by  the 
existence of diverging approaches in the USA, Japan and Europe. 

EN 

42 

   EN 

 
3. 

ACHIEVEMENTS IN ENERGY SERVICES 

While  not  explicitly  selected  as  priority  for  the  Commission  to  take  immediate  action, 
promoting  the  uptake  of  a  market  for  energy  services  is  nevertheless  a  priority  area  of  the 
EEAP 2006. Against this background, this report looks into the achievements realized so far 
with the implementation of the key legislation on energy services. 

3.1.  Main objectives of the Energy Services Directive 

The Energy Services Directive (ESD) is a framework directive on end-use energy efficiency. 
The  purpose  of  the  ESD  is  to  enhance  the  cost-effective  improvement  of  energy  end-use 
efficiency by: 

•  Creating  the  conditions  for  the  development  and  promotion  of  a  market  for  energy 

services; 

•  Providing  mechanisms,  incentives  and  institutional,  financial  and  legal  frameworks  to 

remove existing market barriers and imperfections; 

•  Triggering energy efficiency action in various areas (i.a. public sector); 
•  Coordinating  and  monitoring  saving  activities  through  regular  national  energy  efficiency 

action plans. 

The  realisation  of  the  directive’s  principle  objective,  i.e.  the  cost-effective  improvement  of 
energy end-use efficiency in the MS, will be achieved by setting energy savings targets of 9% 
for  2016,  underpinned  by  interim  targets  for  2010.  In  other  measures,  the  ESD  sets  out 
provisions which create the conditions needed for the development and promotion of a market 
for energy services and for the delivery of other energy efficiency improvement measures for 
final consumers. 

Box 1: The ESD target and the overall European energy saving objective 

It should be noted that the ESD target setting and the overall European 20% primary energy 
saving target are difficult to compare for several technical reasons: 

•  The 9% ESD target is based on final energy consumption, excluding final use of the ETS 
installations  or  military  use.  In  order  to  calculate  the  contribution  to  the  2020  primary 
energy  saving  target,  the  specific  final  energy  targets  need  to  be  converted  into  primary 
energy.  The  outcome  will  depend  on  the  national  features  of  the  saving  measures, 
especially  how  many  measures  target  electricity  savings.  The  actual  share  of  electricity 
savings versus heat savings under the ESD determines how big the ESD impact will be in 
primary terms.83  

•  The 20% target aims at saving 368 Mtoe primary energy in 2020 compared to a projection. 
In the ESD, the connection between achieved savings and the resulting energy use level is 
looser as only 9% energy end-use energy savings have to be proven but not their impact on 
final or primary energy consumption. 

83 

This effect will be smaller for countries that already applied a weighting factor for electricity (default 
co-efficient is 2.5, see Annex II of the ESD). 

EN 

43 

   EN 

 
                                                 
•  The ESD target is set for 2016. The question is how much policy measures implemented as 

a result of the ESD will contribute towards the 2020 target in the 2016-2020 period. 

•  Although  the  base  year  (5-year  average)  of  the  ESD  should  not  be  normalised  (ESD 
Annex I),  the  energy  savings  under  the  ESD  should  be  normalized,  e.g.  for  weather 
conditions (see ESD Annex IV). 

•  A share of early action savings (achieved before 2008 but after 1991/9584) can be counted 
towards  the  target  on  the  condition  that  they  have  a  lasting  effect.  Early  action  savings 
achieved  between  1991/95  and  2005  are  already  part  of  the  PRIMES 2007  baseline  (the 
fixed  benchmark  baseline  for  the  20%  objective)  and  therefore  do  not  contribute  to  the 
20%  target.  Only  early  action  implemented  in  2006  and  2007  contributes  to  the  2020 
target.  

In addition to setting end-use energy saving targets, the Directive obliges the Member States 
to  prepare  three  national  energy  efficiency  action  plans  (NEEAP)  in  which  they  report  on 
their saving activities. The public sector is expected to fulfil an exemplary role in achieving 
the objectives of this Directive and must invest, maintain and ensure that related expenditure 
on  energy-using  equipment  is  spent  bearing  energy-efficiency  in  mind.  Rules  on  improved 
consumer  information  and  energy  consumption  are  spelt  out  as  are  provisions  on  better 
metering and the billing of energy consumption. 

Depending on the chosen measures to achieve the saving targets, the impacts of the ESD can 
overlap with national implementation impacts from other Directives such as EPBD, ecodesign 
or  labelling  (see  chapters  2.1,  2.2).  This  underlines  the  character  of  the  ESD  as  framework 
Directive  which  was  designed  to  back  up  and  strengthen  the  implementation  of  other 
Directives that focus on end-use energy efficiency. 

3.2. 

Level of implementation 

Member States had to transpose the Directive by May 2008. In the beginning, transposition of 
the  Directive  was  slow  with  20  reasoned  opinions  for  non-communication  issued  by  the 
Commission  in  February  2009.  However,  in  the  end  of  2009  and  beginning  of  2010,  the 
process  of  adoption  of  relevant  national  legislative  and  non-legislative  measures  in  MS 
accelerated.  In  October  2010,  24  MS  communicated  full  transposition  while  three  Member 
States  had  a  status  on  incomplete  transposition  with  indication  that  the  transposition  in  the 
countries would be closed by the end of 2010.  

Under the ESD, MS were also specifically required to adopt and submit their first NEEAP to 
the Commission not later than 30 June 2007. The first NEEAP were supposed to stimulate the 
translation of energy saving objectives into concrete and coherent measures and actions at the 
level of each MS. For many Member States this has been the first time they had to prepare 
such  comprehensive  national  energy  saving  strategies  and  some  delays  with  adoption  of 
NEEAPs occurred. It was only in July 2008, i.e. a year after the deadline set in the Directive 
that the Commission was in receipt of all NEEAPs. 

The  assessment  in  the  first  NEEAPs  indicated  that  a  number  of  MS  had  been  successful  in 
setting comprehensive frameworks for harnessing possibilities to reduce energy consumption 

84

For details, see Annex I of the Energy Services Directive. 

EN 

44 

   EN 

 
                                                 
 
cost-effectively. Yet, there have been some Member States which had some more difficulties 
in setting such frameworks.85  

Following  bilateral  communications  with  the  Commission  some  MS  (e.g.  Lithuania, 
Hungary)  on  their  own  initiative  revised  their  first  NEEAP  and  adopted  new  significantly 
upgraded sets of policy measures. Some other MS adopted targets going beyond strict ESD 
obligations and looking at primary energy savings objectives with a time horizon for 2020. 

In order to support MS in transposing the Directive the Commission has set up a Concerted 
Action  on  the  ESD  (see  chapter  2.6.2).  The  exchanges  between  MS  carried  out  under  the 
framework  of  the  Concerted  Action  clearly  helped  with  quicker  implementation  of  new 
energy  saving  measures  in  many  MS.  These  exchanges  revealed  also  that  even  though  the 
the  proper 
economic  crisis  created  restrictions  on  public  spending  necessary  for 
implementation  of  many  key  measures  set  in  the  first  NEEAP,  a  number  of  MS  decided  to 
introduce  new  policy  measures  in  addition  to  their  NEEAP  as  they  considered  smart 
investments in energy savings as an important instrument to improve energy security, create 
new jobs and fight against fuel poverty.86  

3.3. 

Expected impact of the Energy Services Directive 

As  explained  in  chapter  3.1  the  impact  of  the  ESD  may  be  overlapping  with  other  EEAP 
instruments, depending whether MS make use of these instruments to reach the ESD's saving 
target. The full overview of ESD measures accountable for the end energy saving target will 
only  be  known  as  a  result  of  the  reporting  in  the  second  and  third  NEEAPs.  However,  it  is 
possible  to  draw  some  first  conclusions  in  terms  of  impacts  out  of  the  first  NEEAPs  and 
several research studies which have been signed out to this effect: 

•  The  2009  analysis  from  Fraunhofer  ISI  (as  part  of  the  EU-27  Energy  Savings  Potential 

study). 

•  The  Commission's  own  assessment  with  help  of  PRIMES  2007  (benchmark  baseline  for 

the ESD) and PRIMES 2009 (including recession and additional policies effect). 

Based  on  the  level  of  ambition  claimed  by  the  MS  in  their  first  NEEAPs,  the  final  energy 
savings  in  Mtoe  triggered  by  the  ESD  that  could  be  achieved  if  MS  manage  to  reach  their 
national  targets  would  have  an  accumulated  effect  of  ca.  112-120  Mtoe.87  The  number 
includes “early actions” taken by some MS before the adoption of ESD.88  

An  assessment  by  Fraunhofer  et  al.  (2009)89  concluded  that  about  one  third  of  the  cost-
effective saving potential of the ESD sectors has been covered by the NEEAP targets. They 
estimated a cost-effective energy saving potential for activities covered by the ESD of at least 
180 Mtoe of final energy use in 2016. 

85 

86 

87 

88 
89 

Synthesis of the complete assessment of all 27 National Energy Efficiency Action Plans, Commission 
Staff Working Document, 23.6.2009 (SEC 2009/889 final) 
For example: a new revolving funds for energy efficiency in housing established in Estonia, Lithuania 
or a new support schemes for energy saving introduced in Ireland. 
In some MS, the savings expected by some MS from the implementation on ESD are sometimes higher 
than their official commitments for final energy saving targets. 
Some “early actions” include measures implemented in MS back in 1991. 
See Ecofys and Fraunhofer ISI. 2010. The feasibility of binding energy savings targets in the EU. Draft 
report. 

EN 

45 

   EN 

 
                                                 
In their first NEEAP, MS attributed approximately one third of their savings to early actions 
before 2007 (which is allowed under the Directive). This would leave a net saving impact of 
120 Mtoe final energy for the ESD for the period 2007-2016. With the assumption that 25% 
of the saving measures are targeting electricity consumption and using the conversion factor 
of 2.5 this would translate into some 165 Mtoe primary energy savings by 2016. This gross 
saving figure includes savings which can also be attributed to other measures. If we assume 
that some 60% of the measures taken up in the NEEAPs rest on other EU legislation, the net 
additional  saving  effect  triggered  by  the  ESD  can  be  estimated  at  some  66  Mtoe  primary 
energy savings for 2016. With the assumption that MS will continue their constant efforts on 
energy  savings  beyond  2016,  net  additional  savings  could  reach  some  95  Mtoe  primary 
energy savings in 2020. 

PRIMES  2007  can  be  considered  the  benchmark  baseline  for  the  ESD.  PRIMES  2009 
includes the national implementation measures of the ESD (as reported in the NEEAPs). With 
the help of both scenarios, the impact of new energy efficiency policies on end-users can be 
determined.  As  PRIMES  2009  does  include  the  impact  of  the  recession,  we  need  to 
distinguish between the clear policy impact and the impact of the recession. The analysis will 
be done for industry, residential, tertiary and transport sector separately. 

However, by analysing PRIMES, a net impact of ESD on final energy savings in 2020 could 
be  reduced  down  to  50  Mtoe.  This  more  cautious  figure  can  be  attributed  to  different 
assumptions about the share of other EU policy measures counted in the ESD target, different 
lifetimes attributed to the measures or different assumptions about rebound effects.  

3.4. 

Overall assessment 

The  analysis  shows  that  the  underlying  idea  of  the  Energy  Services  Directive,  that  is 
triggering  additional  energy  savings  by  setting  a  framework  and  backing  up  other  savings 
Directives, has delivered positive results. As the Directive only tackles a special segment of 
the energy consumption side and is limited in scope and time, the benefits in terms of savings 
however stay considerably below the tangible potential. Further savings could be achieved by 
broadening  the  scope  of  the  Directive  as  well  as  the  obligations  set  by  the  Directive.  This 
could be done by: 

•  Discussing  revised  options  for  target  setting  which  are  closer  linked  to  directly  reducing 

energy consumption; 

•  Stepping  up  provisions  on  cross-cutting  measures  such  as  financing,  consumer 

information; 

•  Turning  the  national  energy  efficiency  action  plan  from  a  reporting  tool  into  overall 
strategic  policy  documents  to  capture  all  energy  savings  and  better  describe  the  national 
energy efficiency policies; 

•  Stepping up the obligations for the energy suppliers and integrating supply side efficiency. 

These items will be looked at in detail once results of the mid-term evaluation of the Energy 
Services Directive are available, delivering further in-detail results. 

EN 

46 

   EN 

 
4. 

OVERALL CONTRIBUTION OF THE ENERGY EFFICIENCY ACTION PLAN 

The EEAP was proposed by the Commission with a view to move the EU towards reaping the 
20%  energy  saving  potential  described  in  its  Green  Paper  on  Energy  Efficiency  and  to 
maintain Europe's position as one of the most energy-efficient regions in the world. Although 
the EEAP is still in implementation until 2012, the first comprehensive assessment presented 
with  this  progress  report  unveils  important  achievements  in  most  priority  areas  and  priority 
actions addressed. 

4.1. 

General achievements and limitations 

The  very  broad  approach  followed  by  the  EEAP  2006  has  the  strong  merit  of  addressing 
numerous ways for improving energy efficiency and provides for the first time an overarching 
European framework for energy efficiency measures in different sectors, addressing different 
stakeholders through different types of measures.  

The implementation of the EEAP has triggered significant positive developments by driving 
for  new,  better  and  implemented  energy  efficiency  legislation:  With  over  20  legislative 
measures  in  its  portfolio,  the  EEAP  strongly  pushed  for  the  implementation  of  existing  key 
Community  legislation  targeting  efficient  uses  of  energy  inter  alia  in  buildings  (EPBD), 
products  (Ecodesign,  labelling),  services  (ESD),  in  energy  transformation  (CHP)  and  in  rail 
transport.  It  further  strengthened  selected  key  legislation  by  putting  forward  their  revision 
(EPBD,  ecodesign  and  labelling  Directives).  Moreover  it  introduced  new  legislation 
addressing  fuel  efficiency  of  cars  (minimum  emission  standards,  labelling  of  tyres)  and  the 
uptake  of  clean  vehicles  through  public  procurement.  EEAP  further  supported  the 
implementation  process  of  legislative  measures  with  targeted  instruments  such  as  financing 
(e.g.  ERDF,  ELENA),  Reference  Documents  on  Best  available  techniques,  guidelines,  and 
promoted the exchange of best practices in energy efficiency, inter alia through the creation 
of information platforms (e.g. Concerted Actions in buildings and energy services, Bucharest 
Forum,  etc.)  within  the  EU  but  also  internationally  (e.g.  IPEEC).  It  is undisputed  that  these 
achievements  bring  Europe  closer  to  the  EEAP's  overarching  objective  to  deliver  the  most 
energy-efficient  infrastructure,  buildings,  appliances,  processes,  transport  means  and  energy 
systems. 

Looking  at  the  detailed  level  of  measures  proposed, it can be noted  that  the  majority of the 
priority actions have been initiated and finalized (see chapter 2) and that the majority of the 
85  measures  proposed  in  the  EEAP  have  been  completed  or  are  in  the  process  of  being 
finalized. Only a few have not been addressed now (see annex 1). 

Despite  the  strong  impact,  in  contrast,  some  aspects  of  the  EEAP  limit  its  overall 
effectiveness. Indeed, its approach of listing 85 measures lead to a political reality where the 
Plan  is  often  perceived  as  a  technical  document  more  than  a  strong  and  visible  political 
commitment to energy efficiency and savings. Although an overarching aim was defined, it 
lacks  clear  objectives  for  the  different  sectors  and  the  measures  proposed  are  not  directly 
interlinked.  Further,  the  EEAP  is  mainly  conceived  as  (priority)  actions  to  be  taken  by  the 
Commission, while the success of many measures depends to a large extend on their level of 
implementation  in  Member  States  (e.g.  in  the  case  of  legislation)  and  the  interplay  with 
supportive measures (e.g. financing). 

EN 

47 

   EN 

 
4.2. 

Contribution of the EEAP to the energy saving objective in 2020 

In  addition  to  the  assessment  of  the  individual  progress  made  with  each  priority  action 
(chapter  2),  it  is  imperative  to  provide  an  appraisal  of  the  overall  contribution  of  the  Plan 
towards  the  2020  energy  saving  objective.  Such  an  overall  review  is  a  complex  task  when 
approaching it from a bottom-up perspective, i.e. by adding up savings from single measures, 
to  generate  an  aggregated  impact.  Indeed,  overlaps  resulting  from  interacting  measures 
targeting the same sector would need to be identified and accounted for when compiling the 
overall  impact.  As  an  alternative,  a  top-down  approach  can  be  used  to  estimate  the  overall 
impact of the EEAP measures. To this end, the Energy Model called PRIMES, developed by 
the Technical University of Athens on behalf of the Commission, was used. 

At  the  time  of  the  EEAP's  adoption  in  2006,  it  was  estimated  that  it  had  the  potential  to 
deliver  14%  energy  savings  by  2020  compared  to  a  baseline  scenario  of  the  Energy  Model 
PRIMES. To observe the effects at the macroeconomic level, it is necessary to compare the 
changes  between  the  baseline  used  for  the  EEAP  impact  assessment90  and  the  newest 
available one taking into account the impact of major EEAP measures implemented until the 
end of 2009 as well as other economic developments affecting primary energy consumption. 
This  suggests  that  the  energy  efficiency  policies  are  expected  to  deliver  not  14%  but  about 
half of the savings objective in 2020.  

However, it should be pointed out that these projections do not take into account policies in 
the pipeline, especially the forthcoming ecodesign implementing measures as well as adopted 
policies  in  full  such  as  the  recast  Energy  Performance  of  Buildings  Directive.  This  would 
have an additional impact on reducing future consumption.  

4.3.  Way forward – A new Framework on Energy Efficiency Policies 

The experience gained with the implementation of the EEAP is valuable for the design of any 
new European framework for energy efficiency policies. The following main conclusions can 
be drawn: 
•  A full and ambitious application of existing energy efficiency legislation by Member States 

is crucial to deliver the full potential of energy savings in practice; 

•  As  energy  savings  are  realized  at  national  and  local  level,  it  is  important  to  steer  and 

mobilize action at all levels of government; 

•  Supporting  tools  need  to  be  strengthened  or  expanded  further  to  increase  the  impact  of 
legislation,  such  as  National  Energy  Efficiency  Plans,  monitoring  systems,  access  to 
financing and training; 

•  More ambitious measures are needed to tackle energy consumption in all sectors; 
•  An overarching energy efficiency framework with a longer term perspective is needed to 
trigger  lasting  political  commitment  towards  energy  efficiency  improvements  and  energy 
savings. It needs to be streamlined and focused on main policy objectives, containing clear 
priorities without getting too technical. 

Any  new  framework  should  imperatively  build  upon  the  experiences  gained  with  the 
implementation of the EEAP 2006 and propose additional policies to close the gap and realize 

90 

The baseline used for the EEAP assessment dates from 2005. This baseline has been updated in 2007 
taking into account all energy efficiency policies and measures adopted until the end of 2006. As the 
assumption for the Gross Inland Consumption of energy are the same between the two baselines, it is 
recommend to use the baseline update from 2007 to coincide better with the implementation start of the 
new Energy Efficiency Action Plan in 2006. 

EN 

48 

   EN 

 
                                                 
its  aspiration  to  mobilise  the  general  public  and  policy-makers,  and  to  provide  EU  citizens 
with  energy-efficient  infrastructure,  buildings,  appliances,  processes,  transport  means  and 
energy systems. 

EN 

49 

   EN 

 
ANNEX 1: STATUS OF EEAP IMPLEMENTATION BY MEASURE (AS OF OCTOBER 2010) 

1. Dynamic energy performance requirements for products, buildings and services 
Measure 
1.1 

Implementation of the Eco-Design 
Directive (2009/125/EC, ex 
2005/32/EC) 

Description of implementation 
Implementation is ongoing. 
Amendment: 
A  recast  of  the  Ecodesign  Directive  entered  into  force  in  November  2009  as  Directive 
2009/125/EC (OJ L 285/10, 31.10.2009). This has extended the scope to include all energy-related 
products.  The Commission  now has  a  mandate  to bring forward, where  appropriate,  for detailed 
implementing acts on the eco-design of products. 
•  Energy  Labelling  is  taken  into  account  as  a  complementary  policy  option  to  minimum 
efficiency requirements when considering measures relating to the individual product groups in 
the preparatory work carried out under the Eco-design Directive. 
•  Synergies have been developed with the US Energy Star Program. 
•  There is now greater coherence in laying down eco-design requirements as part of provisions 

Status 
Ongoing 
Completed 

Ongoing 

1.1.1 

Co-ordinate eco-design 
requirements, labelling and 
incentives 

1.1.2 

Develop eco-design requirements 
for 14 priority product groups 

•  Ongoing analysis for 25 priority product groups. 
•  8 detailed measures to implement the Directives were adopted in 2009 as regards: 

Ongoing 

for public procurement tendering. 

1.2 

Develop eco-design requirements 
for additional product groups 

–  Simple set-top boxes ((EC) No 107/2009) 
–  Non-directional household lamps ((EC) No 244/2009) 
–  Fluorescent lamps without integrated ballast, for high intensity discharge lamps and for 

ballasts and luminaires able to operate such lamps ((EC) No 245/2009) 

–  Efficiency of external power supplies ((EC) No 278/2009) 
–  Electric motors ((EC) No 640/2009) 
–  Glandless standalone circulators and glandless circulators integrated in products ((EC) 

No 641/2009) 

–  Televisions ((EC) No 642/2009) 
–  Household refrigerating appliances ((EC) No 643/2009) 
•  Preparatory studies on additional product groups underway, including 

Ongoing 

–  Fans 
–  Dishwashers 
–  Washing Machines 
–  Electric pumps 
–  Water heaters 
–  Boilers 
–  Personal computers and electronic displays 

EN 

50 

EN 

 
  
–  Air conditioning and ventilation 
–  Commercial refrigerators 
–  Laundry dryers 
–  Vacuum cleaners 
–  Solid fuel combustion 

•  Draft measures for these product groups will be submitted to the Regulatory Committee from 

2010 onwards. 

•  Work on-going for the adoption of voluntary agreements for 4 product groups: 

Ongoing 

–  Complex set-top boxes 
– 
Imaging equipment 
–  Machine tools 
–  Medical imageing equipment 

Implementation is ongoing. 

Amendment: 
A  recast  of  the  Labelling  Directive  92/75/EC  entered  into  force  June  2010  as  Directive 
2010/30/EU  (OJ  L  153/1,  18.06.2010)  The  recast  includes  the  extention  of  the  scope  to  energy-
related products.  
Preparatory work completed. Directives will be tabled for adoption in 2010. 

New labels for boilers, water heaters and televisions are being prepared. 

The study will be launched in 2010. 

The implementation is ongoing.  

New Agreement concluded in December 2006. 

Regulation  (EC)  No  106/2008  adopted  in  January  2008,  including  compulsory  Energy  Star 
efficiency levels to be used in public procurement.  

Ongoing 

Completed 

Ongoing  

Ongoing  

Ongoing  

Ongoing 

Completed 

Completed 

1.3 

1.4 

1.4.1 

1.4.2 

1.4.3 

1.5 

1.5.1 

1.5.2 

Support self-commitments to 
deliver energy savings 

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  
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 
Launch a comprehensive survey on 
the implementation of the Directive 
Implementation and amendment of 
the Energy Star Agreement on 
office equipment 
Conclude a new 5-year Energy Star 
Agreement 
Propose amending Regulation (EC) 
No 2422/2001 on a Community 
energy efficiency labelling 

EN 

51 

EN 

 
  
 
 
 
 
 
 
1.5.3 

1.6 

1.6.1 

1.6.2 

1.6.3 

programme for office equipment  
Develop stronger energy efficiency 
criteria for office equipment 

Implementation and amendment of 
the Energy End-Use Efficiency and 
Energy Services Directive 
(2006/32/EC) 

Prepare a Memorandum of 
Understanding (MoU) on energy 
efficiency in co-operation with 
CEER through ERGEG  
Assess a Community-wide White 
Certificate Scheme 

Improve coherence of national 
public procurement guidelines on 
energy efficiency 

•  Ongoing process with US Environmental Protection Agency.  
• 

In  2009  revised  criteria  for  imaging  equipment,  computers  and  displays  were  agreed 
(Commission Decisions 2009/347, 489 and 789).  
In  2010  revised  criteria  for  servers  should  be  agreed.  On-going  work  for  four  additional 
product groups. 

• 

Implementation: 
•  Reasoned  opinions  were  sent  in  February  2009  to  20  MS  for  non-communication  of 
transposing  measures  (17.05.08  was  deadline  of  transposition  by  MS).  Bilaterals  with  MS 
being  in  situation  of  not  fully  transposed  Directive;  By  20.07.2010:  4  open  cases  on  non-
communication of full transposition. 

•  All MS have submitted their first NEEAPs. Summary report on the NEEAPs assessment was 
published in June 2009 (SEC(2009) 889). Template for the 2nd NEEAP has been prepared. 
•  Recommendations  on  common  methods  and  indicators  (draft)  to  measure  and  verify  energy 

savings have been sent to relevant Committee (EDMC). 

•  A Concerted Action was launched in June 2008 to assist the MS with the implementation of 

the Directive. 

Amendment: 
A study to investigate the issues at stake has been launched. Final results expected for 2011. 
MoU on energy efficiency problematic as not all regulatory authorities have competences in end-
use  energy  efficiency.  Measure  has  been  postponed  for  the  time  being.  However,  regular 
discussions  on  energy  efficiency  with  CEER/  ERGEG  are  taking  place  in  various  fora  (eg. 
Citizen’s Energy Forum). 
Internal Commission study on Community-wide Certificate Scheme realised. Results indicate that 
a  Community-wide  White  Certificate  Scheme  is  not  recommendable  even  though  national 
schemes for white certificates can be considered as useful for promoting energy efficiency. 
•  16.07.08: Communication on Green Public Procurement, setting the 50% (political) target for 
GPP  (where  "green"  means  compliant  with  endorsed  common  core  GPP  criteria)  and 
establishing a process of cooperation with the Member States to identify environment criteria 
for inclusion in tender documents (as part of the Sustainable Consumption and Production and 
Sustainable Industrial Policy action plan).  

•  The  training  toolkit  which  includes  a  strategic,  legal  and  practical  module,  the  latter  with 
examples  of  GPP  criteria  for  inclusion  in  tender  documents,  has  been  finalised  and  can  be 
downloaded  from  http://ec.europa.eu/environment/gpp/training_toolkit_en.htm.  The  toolkit 
includes  GDP  criteria  for  the  following  products:  construction,  food  and  catering  services, 
office IT equipment, gardening products and services, transport, electricity, cleaning products 
and services, textiles, furniture and paper. 

Ongoing 

Ongoing 

Ongoing 

Not realised  

Completed 

Completed 

EN 

52 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
•  Buying  Green!  A  handbook  on  environmental  public  procurement  (2004)  is  a  practical 
guideline for public authorities and contracting parties to support the introduction and use of 
GPP.  The  handbook  explains  in  concrete  terms  how  environmental  considerations  can  be 
integrated at each stage of public procurement procedures and clarifies the legal possibilities as 
introduced by public procurement directives. 

•  An overview survey was carried out in 2009 and beginning of 2010 to analyse national energy 

efficiency procurement measures in the EU; Results will be shared with the MS in 2010 

•  Publication of a Green Paper on the modernisation of EU public procurement policy: Towards 

a more efficient European Procurement Market (COM(2011) 15 final). 

1.6.4 

1.6.5 

1.6.6 

1.6.7 

Seek agreement on more stringent 
and harmonised criteria for 
voluntary agreements to 
significantly increase energy 
efficiency 
Issue a mandate for a European 
norm (EN) for energy audits 
Will consider and propose as 
appropriate more detailed metering 
and billing requirements 

•  Existing  Voluntary  Agreement  schemes  has  been  assessed  with  a  view  to  identify  their 

Completed 

• 

strengths and weaknesses. Recommendations for criteria have been developed. 
Internal  overview  survey  was  carried  out  in  2009  and  beginning  of  2010;  Results  have  been 
shared with the MS in April 2010. 

•  CEN/CENELEC Working Group on Energy Auditing was established in 2008 
•  CEN mandate for energy audits is under preparation to support the work of CEN/CENELEC 
•  An internal study investigated MS experience with advanced metering and billing. It assessed 

Ongoing  

Completed 

the potential for energy savings achieved through these measures.  

•  Facilitation of exchanges between MS on that topic is ensured by the ongoing ESD Concerted 

Consider supporting or establishing 
a centre to identify and improve 
emerging and existing technologies 

Action. 

•  More detailed metering and billing requirements are also covered in the Third internal energy 

market package with Directives 2009/72/EC and 2009/73/EC. 

•  Energy  efficiency  is  addressed  by  a  number  of  European  programmes  and  initiatives.  The 
Energy  Theme  of  the  current  Research  Framework  Programme  (FP7,  2007-2013)  focuses on 
increasing the efficiency in energy generation for all energy technologies, the efficient energy 
use in the manufacturing industry, poly-generation and socio-economic research. 

•  The Strategic Energy Technology Plan proposed by the Commission is the technology pillar of 
the  EU's  energy  and  climate  policy.  It  is  a  blueprint  for  Europe  to  develop  a  world-class 
portfolio  of  affordable,  clean,  efficient  and  low  emission  energy  technologies  through 
coordinated research.  

Completed 

1.7 

Implementation and amendment of 
the Energy Performance of 
Buildings Directive (2002/91/EC) 

Implementation: 
• 
•  A thorough conformity check is currently being carried out for the transposition of Art. 7, 8 & 

Infringement cases for non-communication are open for 2 MS. 

Ongoing 

9 for which 23 MS requested an additional 3-year period (until 01/2009).  

•  The Concerted Action on the EPBD (2005 – 2010) brings together the national implementing 
bodies  in  a  forum  for  exchange  of  experience  on  its  effective,  practical  implementation.  The 
outcome of almost 20 Intelligent Energy Europe projects on the topic were fed directly into this 

EN 

53 

EN 

 
  
 
 
 
 
 
 
 
1.7.1 

Propose an expanded role for the 
public sector to demonstrate new 
technologies and methods 

1.7.2 

1.7.3 

Propose lowering significantly the 
threshold for minimum 
performance requirements for 
major renovations  
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 houses from 2015. 

forum,  whilst  the  majority  of  them  can  claim  direct  uptake  of  their  outcome  within  either 
national  and  regional  legislation/tools  or  the  proposed  recast.  The  consolidated,  practical 
experiences of the national bodies expressed via the Concerted Action were the basis for the 
recast proposal. 

Amendment: 
•  A recast of the Energy Performance of Buildings Directive entered into force in July 2010 as 

Directive 2010/31/EU (OJ L 153/13, 18.06.2010). MS have to transpose it by July 2012. 

The exemplary role of the public sector has been strengthened in the recast EPBD. By the end of 
2018  all  new  buildings  built  for  public  authorities  shall  be  nearly  zero  energy.  MS  taking  into 
account  the  leadership role  of  the  public  sector  shall  develop policies  and  measures  to  stimulate 
the  transformation  of  buildings  that  are  refurbished  into  nearly  zero-energy  buildings.  Public 
authorities should become early adopters of energy efficiency improvements by having to comply 
with  the  requirements  of  the  EPBD  earlier  than  other  sectors.  Public  authorities  are  also 
encouraged to implement the recommendations included in the energy performance certificate as 
soon as feasible.  
The threshold was completely abolished in the recast Directive 2010/31/EU. With this the scope of 
the Directive has been extended to include basically all existing and new buildings. 

•  Setting EU-level harmonised cost-optimal minimum energy performance requirements for the 
various types of new and renovated buildings has proven to be an unfeasible option because of 
the  very  different  local  conditions  (e.g.  climate,  culture,  history,  taxation,  labour  costs).  This 
issue was solved through the provisions in the recast that Member States set minimum energy 
performance  requirements  for  buildings  with  a  view  to  achieving  cost-optimal  levels.  This 
means  the  energy  performance  level  which  leads  to  the  lowest  cost  during  the  estimated 
lifecycle. 

•  The level of ambition of these nationally set equipments will be checked using the European 
comparative  methodology  framework,  which  shall  be  defined  in  detail  under  a  Comitology 
process  in  2010-2011.  If  there  are  major  discrepancies  MS  would  have  to  justify  in  writing 
why the gap exists and if the gap cannot be justified then they have to send a plan of how they 
plan to close it.  

•  MS have to draw national plans for the increasing the number of nearly zero-energy buildings 
(e.g. close or more ambitious to the passive houses) and include in them intermediate target for 
their share of new build in 2015. The nearly zero energy consumption will be the norm for new 
buildings  by  the  end  of  2020  (and  end  of  2018  for  new  buildings  occupied  by  public 
authorities). 

Completed 

Completed 

Completed 

Completed 

1.7.4 

Consider proposing binding 
requirements to install passive 

•  These requirements were considered in a more holistic way in the recast EPBD. Firstly, these  Completed 

EN 

54 

EN 

 
  
 
 
 
 
 
 
heating and cooling technologies 

1.7.5 

Propose measures for Member 
States to provide financing for 
highly cost-effective investments 

1.8 

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

1.8.1 

Introduce energy efficiency aspects 
in construction product standards 
whenever relevant 

are more explicitly stated as elements in the common general framework for the calculation of 
energy  performance  of  buildings  (see  Article  3  and  Annex  1  of  Directive  2010/31/EU). 
Secondly, these elements are commonly part of nearly zero energy buildings. 

•  Financial incentives are addressed in the recast Directive 2010/31/EU. Art. 10 foresees that in 
view of the importance of providing appropriate financing and other instruments to catalyse the 
energy performance of buildings and the transition to nearly zero-energy buildings, MS shall 
take appropriate steps to consider and report on the most relevant such instruments in the light 
of national circumstances. 

•  As an obligation from the recast EPBD, the Commission will prepare a report on financing and 

may consider to make proposals with respect to the available Union instruments.  

Implementation is ongoing. 
Amendment: 
•  The  Commission  has  adopted  on  23/05/2008  a  proposal  for  a  Regulation  on  Construction 
Products, which will replace the existing “Construction Product Directive” (89/106/EEC). The 
proposal aims at strengthening a “common technical language” for expressing the performance 
of construction products, thus simplifying and clarifying the present situation. A clarification 
of procedures leading to CE marking is introduced as well, to reduce costs for manufacturers, 
whilst ensuring that the declaration of performance accompanying the product is accurate and 
reliable.  Specific  measures  are  introduced  to  reduce  the  burden  for  manufacturers  and 
additional provisions are foreseen for micro-enterprises. 

•  The proposal was examined by the EP in a 1st Reading in April 2009 and the Council reached 
a political agreement in late May 2010.After the official transmission of the Council's Common 
position to the Parliament, the procedure for the 2nd Reading will start and it is envisaged to be 
completed in January 2011. 

•  The  CPD  and  the  current  proposal  for  a  Construction  Products  Regulation  do  not  impose 
minimum  energy  performance  of  products  but  set  common  requirements  for  testing  and 
certifying  the  declared  performances  of  the  construction  products,  including  those  related  to 
energy economy and heat retention. 

•  Minimum  requirements  are  expected  to  be  developed  in  the  framework  of  eco-design  and 

labelling, or other EU legislative measures.  

Completed 

Ongoing 

Completed 

2. Improving energy transformation 
Measure 
2.1 

Develop minimum efficiency 
requirements for new electricity, 
heating and cooling capacity lower 
than 20 MW and consider if 
necessary such requirements for 

Description of implementation 
•  No direct measure was proposed to set minimum efficiency requirements for new electricity, 

Status 
Not realised  

heating and cooling capacity lower than 20MW. 

•  The  following  measures  define  best  available  techniques  with  strengthen  application  in  the 

scope of the IPPC recast for plans above 50MW: 

–  A reference document on Best Available Techniques regarding Energy Efficiency was 

EN 

55 

EN 

 
  
 
 
 
 
larger production units 

2.2 

2.3 

2.4 

2.5 

2.6 

Develop with supply industry 
guidelines on good operating 
practices for existing capacity 
Issue a mandate for a European 
Norm for a certification scheme for 
heat and electricity plant engineers 
Agree guidelines in co-operation 
with CEER through ERGEG on 
good regulatory practices to reduce 
transmission and distribution losses 
Propose a new regulatory 
framework for the promotion of 
grid access and connection of 
decentralised generation 
Implementation and amendment of 
the Directive on the Promotion of 
Cogeneration (CHP) (2004/8/EC) 

2.6.1 

Accelerate harmonisation of the 
calculation methods for high-
efficiency CHP 

adopted  in  spring  2009  and  aims  at  improving  energy  efficiency  in  industrial 
installations, including also smaller production units for electricity, heating and cooling. 
–  A  similar  Reference  Document  on  Best  Available  Techniques  for  Large  Combustion 
Plants  was  adopted  in  July  2006  and  includes  some  useful  elements  regarding  energy 
efficiency both for heating plans, power plans and CHP.  

•  The  IPPC  Directive  will  be  revised  (merging  of  IPPC  with  6  other  Directives  related  to 
industrial emissions). Political compromise on the proposal was reached in June 2010 and will 
be voted in July at the second reading in the EP. 

•  The  recast  Directive  on  Industrial  Emissions  will  strengthen  the  role  of  BAT  and  BREF  in 
setting  specific  conditions  in  permits  for  industrial  installations.  The  Commission  original 
proposal covered plants above 20MW. However, in ongoing negotiations under the co-decision 
procedure the threshold has been raised to plants above 50MW only. 

See 2.1. Both reference documents mentioned under 2.1 provide industry with guidelines on good 
operating practices.  

Completed 

Discussions  to  issue  a  mandate  for  a  European  Norm  have  taken  place.  The  need  for  such  a 
mandate is still under discussion. 

Ongoing  

Commission  has  had  discussions  with  European  energy  regulators  groups  (CEER/ERGEG) 
without agreeing on concrete further steps. 

Not realised 

A  new  regulatory  framework  for  the  promotion  of  grid  access  and  connection  of  decentralised 
generation has been adopted with Directive 2009/72/EC (OJ L211 of 14.8.2009) 

Completed 

Implementation: 
•  Reports  by  MS  are  currently  being  assessed  (reports  on  national  potentials,  guarantees  of 
origin, administrative barriers and solutions and progress made with the implementation). 
In 2008, Commission issued a Communication on the progress made with the implementation 
of the CHP Directive. 

• 

Amendment: 
•  A  new  report  on  the  implementation  of  the  Directive  including  the  evaluation  of  national 

Ongoing 

Ongoing 

support schemes is scheduled in 2011. 

A Commission Decision on detailed guidelines for CHP electricity calculation has been adopted in 
November 2008. 

Completed 

EN 

56 

EN 

 
  
 
 
 
 
 
 
2.6.2 

2.6.3 

2.6.4 

2.6.5 

2.6.6 

2.6.7 

Reach agreement on a harmonised 
electronic Guarantee of Origin 
Propose stricter requirements for 
market regulators to promote CHP  

The initiative for a harmonised CHP Guarantee of Origin will not be launched before the national 
schemes have been evaluated in 2011 and stakeholders have been consulted.  
•  MS  have  been  asked  to  include  this  element  in  their  reports  on  the  analysis  of  the  national 

Ongoing  

Ongoing  

potential required under Article 6 of the CHP Directive. 

•  The evaluation of the reports will be completed in early 2011.  
•  The  issue  has  now  also  been  included  in  the  guidelines  for  reporting  by  the  regulators 

Propose to require Member States 
to identify heat demand suitable for 
CHP  
Propose that Member States be 
required to identify in national 
potentials waste heat potential 
Propose minimum efficiency 
requirements for district heating 
based on new norm 
Seek to adopt a European Norm 
and a minimum efficiency 
requirement for micro CHP 

(CEER/ERGEG). 

•  MS have been asked to identify this aspect in their reports on the national potential required by 

Ongoing  

the CHP Directive.  

•  The evaluation of the reports will be completed early 2011. 
•  MS  have  been  asked  to  include  this  element  in  their  reports  on  national  potential  required 

Ongoing 

under Article 6 of CHP Directive.  

•  The evaluation of the reports will be completed in 2011. 
Study to investigate this issue has been launched and final results are expected for mid 2011. 

Ongoing 

The eco-design implementing measure under preparation on boilers will among other equipments 
cover micro CHP equipment. 

Ongoing 

3. Moving on Transport 
Measure 
3.1 

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 

Status 
Completed 

Description of implementation 
•  Regulation  on  Emission  performance  standards  for  new  passenger  cars  as  part  of  the 
Community's  integrated  approach  to  reduce  CO2  emissions  from  light  duty  vehicles  entered 
into force in June 2009 (Regulation (EC) No. 443/2009). New registered vehicles will have to 
reach an EU average specific emissions target of 130g CO2/km by means of improvement in 
vehicle motor technology, starting with 65% in 2012, 75% in 2013, 80 in 2014 and 100% from 
2015  onwards.  A  further reduction of  10 g  CO2/km  will  be  delivered  by  other  technological 
improvements  and  by  an  increased  use  of  sustainable  biofuels  as  part  of  Community's 
integrated approach. Long-term target of 95g CO2/km is set for the year 2020.  

•  The  voluntary  agreement  refers  to  the  agreement  between  the  European  Automobile 
Manufacturers Association (ACEA) and the European Commission to limit the amount of CO2 
emitted by new passenger cars sold in Europe. Signed in 1998, the agreement sought to achieve 
an average of 140 g/km of CO2 by 2008 for new passenger vehicles sold by the association's 
cars  in  Europe.  However,  the  target  has  not  been  achieved  as  the  average  for  the  whole  car 
market for 2008 was 153.7 g/km. Therefore a regulation was proposed to replace the voluntary 
agreement. 

3.2 

Strengthen efforts to develop 

•  Directive  2009/33/EC  entered  into  force  in  May  2009  (OJ  L120/5,  15.05.2009).  MS  need  to  Completed 

EN 

57 

EN 

 
  
 
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) 

3.3 

Strengthen EU-wide real-time 
traffic and travel information 
(RTTI) systems and traffic 
management (TEN-T) 

transpose this Directive by 4 December 2010. 

•  To  facilitate  the  implementation  process,  the  Commission  has  launched  an  internet  site  on 
clean  and  energy  efficient  vehicles  displaying  a  legislation  guide,  a  lifetime  calculator, 
information on joint procurement and references to Community funded projects in the field. 
•  March 2010: Launch in the framework of it Action Plan on Urban Mobility the preparation of 
information and database on clean and energy efficient road transport vehicles ('Clean Vehicle 
Portal'). 

•  By 12/2012, a first assessment report on the implementation of the Directive is expected. 
•  Commission  has  supported  financially  the  EasyWay  project  in  the  trans-European  transport 
network  programme  (TEN-T)  for  the  period  2007-2009  (total  budget:  500  M€  with  an  EC 
contribution: 100 M€). This project, covering more than 20 MS, deals among others with the 
development  of  targeted  Deployment  Guidelines  to  ensure  harmonised  and  accelerated 
deployment of RTTI and traffic management systems on the trans-European Road Network. A 
follow-up  proposal  (2010-2011)  has  been  submitted  under  the  2009  MAP  Call/  ITS  and  has 
been  evaluated.  Negotiations  on  this  follow-up  will  start  as  soon  evaluations  confirmed 
successful conclusion of the first phase (2007-2009). 

•  Commission adopted on 16 December 2008 the ITS Action plan and a Framework Directive 
proposal  for  the  deployment  of  ITS  across  Europe.  Several  actions  of  the  ITS  Action  Plan, 
notably regarding EU-wide RTTI and traffic  management, have been launched in 2009, with 
results expected in 2010 and 2011. EP adopted in July 2010 a legislative resolution approving 
EC's  position  at  first  reading  with  a  view  to  the  adoption  of  a  directive  of  the  European 
Parliament  and  of  the  Council  on  the  framework  for  the  deployment  of  Intelligent  Transport 
Systems  in  the  field  of  road  transport  and  for  interfaces  with  other  modes  of  transport. 
Legislative procedure is completed, awaiting publication in Official Journal. 

Ongoing 

3.4 

3.5 

3.6 

EN 

Encourage financing for market 
introduction of efficient vehicles  

•  July  2009:  Launch  of  the  European  Green  Car  Initiative,  which  includes  a  large-scale 

Ongoing 

demonstration project on electric vehicles. 

Propose an amended Directive 
(1999/94/EC) relating to the 
availability of consumer 
information on fuel economy and 
CO2 emissions in respect of the 
marketing of new passenger cars 
Issue a mandate for a recognised 
European Norm and international 
standard to measure tyre rolling 

•  Call closed on 14.01.2010 
•  Project expected to start in the beginning of 2011.  
The revision of the measure is planned, the specific timeline for adoption still to be determined. 

Ongoing  

•  23.5.08: Commission adopted a proposal on car general safety which includes the mandatory 
fitting  of  tyre  pressure  monitoring  systems  on  new  cars,  and  maximum  values  for  rolling 
resistance of new tyres, to be implemented as of 2012.  

Ongoing 

58 

EN 

 
  
3.7 

3.8 

3.9 

3.10 

3.11 

3.12 

3.13 

3.14 

3.15 

resistance 
Work towards minimum efficiency 
requirements for mobile air-
conditioning (MAC) systems 
Propose a labelling scheme for 
tyres 
Facilitate voluntary agreements and 
propose other measures on accurate 
tyre pressure monitoring schemes 
Consider compulsory fitting of tyre 
pressure monitoring systems on 
new vehicles 
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 
Propose legislation to harmonise 
requirements to promote fuel 
efficiency in drivers education 
curricula and support projects  
Promote energy efficiency in the 
aviation sector through SESAR 
Propose legislation to include the 
aviation sector in the EU Emissions 
Trading Scheme 

Exploit the potential for optimising 
hull cleaning of ships 

•  See 3.8 for the proposal for labelling for rolling resistance. 
A  draft  proposal  for  a  Regulation  addressing  energy  efficiency  of  MACs  is  currently  being 
prepared by Commission services. 

Ongoing  

Regulation (EC) No 1222/2009 adopted November 2009. 

Completed 

A regulation on compulsory fitting of tyre pressure monitoring systems on new vehicles is being 
prepared (see 3.6) 

Ongoing 

See 3.6. 

Ongoing 

•  25.09.2007:  Adoption  of  Green  Paper  "Towards  a  new  culture  for  urban  mobility"  putting 

Completed 

forward a broad set of measures.  

•  30.09.2009:  Adoption  of  the  Action  Plan  on  Urban  Mobility  with  20  actions  in  six  thematic 

areas. 

•  Pilot project supported by IEE Programme ongoing. 
•  Measure planned. The specific timeline for adoption still to be determined. 

The Sesar Joint Undertaking was established in spring 2007. 

•  A proposal for a directive was presented by the Commission in December 2006. 
•  Political  agreement  was  reached  on  the  scheme  in  July  2008,  and  entry  into  force  was  in 

February 2009. 

•  The aviation sector will be included in the European Emission Trading Scheme from 2012. 
•  Regulation  782/2003  has  been  modified  by  comitology  in  2007-2008  with  a  Commission 
Regulation adopted in June 2008. The aim of this EU legislation concerns the protection of the 
marine  environment  for  the  release  into  the  sea  of  hazardous  substances  contained  in  certain 
coating used to maintain the hull of ships. 

•  Hull maintenance can amount to a 5% difference in energy requirements. Hull cleaning is only 
a  part  of  the  maintenance  options.  A  single  action  of  the  EU  is  overrated.  It  should  be 
integrated  in  technical  and  operational  measures  to  optimize  ships'  energy  efficiency  as  they 
are developed by the International Maritime Organization. 

Ongoing  

Completed 

Completed 

Completed 

EN 

59 

EN 

 
  
3.16 

3.17 

3.18 

Realise savings benefits of shore-
side electricity for harboured ships 
by proposing legislation  
Promote short sea shipping and the 
motorways of the sea 

Ongoing consultation on proposal that would oblige harboured ships to use electricity instead of 
diesel engines, which decreases CO2 emissions. 

Ongoing 

•  Programme COM(2003)155 adopted for the promotion of short sea shipping containing set of 

Ongoing 

14 actions to be implemented between 2003 and 2010.  

•  Action  Plan  for  the  establishment  of  a  European  Maritime  transport  space  without  barriers 

adopted in 2009 (COM(2009)10). First measures to be implemented in 2012. 

Implement the legal framework for 
rail transport 

The  legal  framework  is  there  and  MS  have  to  properly  implement  to  increase  interoperability. 
COM monitors the implementation of the legal framework. 

Completed 

4. Financing energy efficiency, economic incentives and energy pricing 
Measure 
4.1 

Seek to identify and remove legal 
barriers in Member States to use 
Energy Service Companies 
(ECSOs), and contracting 
instruments for energy efficiency  
Develop local revolving funds 
affiliated through close cooperation 
with EBRD, EIB Group and other 
IFIs  

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 
Facilitate leveraging of financing 
for energy efficiency projects, 
including the multi-family and 
social housing sectors, in the new 
Member States through the 
Structural and Cohesion funds  

Description of implementation 
•  Joint Research Center of the Commission is analysing the development of the ESCOs market 
on a regularly basis and publishing the results of their studies as well as organizing workshops. 
•  Around  10  IEE  programme  projects  have  aimed  at  removing  the  market  barriers  faced  by 

Status 
Completed 

ESCO's in Europe. 

•  Facilitation  of  financing  of  energy  efficiency  in  cooperation  with  the  EIB  (including 
JESSICA/JEREMIE  initiatives)  and  EBRD  (MoU  between  the  Commission  and  EBRD  in 
respect of reinforcing cooperation in the energy field).  

Completed 

•  Role of IFIs considered in the operation of IEE, with a view to 2009 WP onwards. 
• 
Discussions are ongoing. 

IEE WP2010 foresees support for the creation of revolving funds for energy efficiency. 

Ongoing 

•  Regulation 397/2009 of the Council and the European Parliament of 6/5/2009 allowed Member 
States  to  use  the  European  Regional  Development  Fund  (ERDF)  for  energy  efficiency  and 
renewable energy investments in existing housing, so as to support social cohesion. Up to 4% 
of  the  total  ERDF  allocations  (approx.  €8  billion)  could  be  reallocated,  if  Member  States 
decide to re-programme accordingly. 

•  European local energy assistance (ELENA) established by COM and EIB in December 2009 
facilitating  the  mobilisation  of  funds  for  investments  in  sustainable  energy  at  local  level. 
ELENA  support  covers  a  share  of  the  cost for  technical  support  that  is necessary  to prepare, 
implement  and  finance  the  investment  programme,  such  as  feasibility  and  market  studies, 

Ongoing 

4.2 

4.3 

4.4 

EN 

60 

EN 

 
  
Promote networking amongst 
Member States and regions to 
ensure financing of best practices 
in energy efficiency 

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. 

Encourage the use of Community 
financing such as Green Investment 
Funds, co-financed by CIP, for 
SMEs in view of promoting eco-
innovation solutions  

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 
Prepare a Green Paper on indirect 
taxation (2007) and subsequently 

structuring of programmes, business plans, energy audits, preparation for tendering procedures 
- in short, everything necessary to make cities' and regions' sustainable energy projects (energy 
efficiency and RES) ready for EIB funding or other funding from e.g. Structural Funds. 

•  Out of the 200 projects supported by the Intelligent Energy Europe programme to unlock the 
potential for energy efficiency in all end-use sectors, more than 20 have specifically aimed at 
networking  and  exchanging knowledge between  countries  and regions  to  ensure financing of 
best practices in energy efficiency. 

•  Noteworthy  project  is  the  Concerted  Action  on  the  Energy  End-Use  Efficiency  and  Energy 
Services Directive (2008-2011). This strategic 3-year action involves all 27 Member States and 
aims  to  achieve  a  certain  degree  of  convergence  across  Europe  in  the  implementation  of  the 
Directive. One of its five core themes is on the use of financial instruments.  

•  Energy Efficiency Finance Facility launched by the Commission in 2006. This facility aims to 
support  energy  efficiency  investments  in  the  industry  and  building  sectors  in  Bulgaria, 
Romania, Croatia and Turkey. The financial support is provided through EBRD, EIB and KfW 
as loans or risk sharing to local financial institutions and through Community grant resources 
allocated as investment incentives and/or consultancy costs.  

•  JASPERS is developing several operations combining grants from EU Structural and Cohesion 

funds with loans.  

•  EIB  is  developing  other  initiatives  in  this  area,  e.g.  to  support  the  Covenant  of  Mayors 

initiative.  

Ongoing 

Ongoing 

•  For the period 2007-2013, €433 mio have been earmarked for Eco-innovation under one of the 

Ongoing 

CIP pillars - the Entrepreneurship and Innovation Programme (EIP).  

•  Part of this money, more than €200 mio has been allocated to the High Growth and Innovative 

SME  Facility  (GIF),  which  supports  eco-innovation  but  also  other  types  of  innovation.  The 
facility allows the EU budget to participate in venture and risk capital funds set up to provide 
equity to small businesses in their early and expansion stages. When the focus of these funds is 
mainly on eco-innovative SMEs, the EU participation, through the European Investment Fund, 
can be higher than normal thresholds (up to 50% compared to 25%).  

•  The final report on "the costs and benefits associated with the use of tax incentives to promote 
the  manufacturing  of  more  and  better  energy-efficient  appliances  and  equipment  and  the 
consumer purchasing of these products" was published by DG TAXUD in January 2009. 

•  The study was meant to inform the policy-makers about the costs and benefits of using direct 
tax  incentives  to  promote  the  purchases  of  energy-efficient  products.  It  remains  in  the 
competence of the Member States to use such instruments. 

Completed 

•  Adoption in March 2007 of a Green Paper on market-based instruments for environment and 

Ongoing  

related policy purposes  

4.5 

4.6 

4.7 

4.8 

4.9 

EN 

61 

EN 

 
  
4.10 

4.11 

review the Energy Tax Directive 
(2008) to incorporate better energy 
efficiency and environmental 
considerations 
Propose a special tax arrangement 
for commercial diesel, aiming at 
narrowing excessive differences in 
tax levels between MS in order to 
increase energy efficiency in the 
transport haulage sector by 
reducing "tank tourism" 
Call upon the Council to adopt 
Commission proposal 
(COM2005/261) to relate vehicle 
taxation to CO2 performance, and 
invites Member States to already 
introduce these modifications into 
the tax reforms they may be 
considering 

5. Changing energy behaviour 
Measure 
5.1 

Lead by example by EMAS 
certifying all Commission 
buildings (2007-2009) and propose 
extending to other EU Institutions 
(2010) 

5.2 

Strengthen energy efficiency 
guidelines by amending the EMAS 
regulation  

•  Proposal for a review of Energy Taxation Directive under discussion in the Commission. 

Proposal  submitted  in  2007  (discussion  in  the  Council  currently  adjourned  in  view  of  possible 
proposal for comprehensive ETD revision). 

Completed 

Proposal tabled in 2005. Still subject to discussion in the Council.  

Completed 

Description of implementation 
•  23 Commision buildings are EMAS registered (December 2005). 8 will be registered until the 
end  of  2010.  EMAS  will  be  gradually  extended  to  cover  all  Commission-owned  buildings 
during the period 2009 - 2014.  

•  The energy efficiency and legal conformity is now integral part of the procurement procedures 

Status 
Ongoing  

for new buildings.  

•  The European Parliament is EMAS registered for their three sites Brussels, Luxembourg and 

Strasburg 

•  The  Committee  of  Regions  and  the  Economic  and  Social  Committee  are  starting  the 

implementation of an Environmental management system in line with EMAS.  

•  The Council has not yet started with any kind of registration of its buildings. 
•  The  revision  of  EMAS  Regulation  is  one  of  measures  under  the  Action  Plan  for  Sustainable 

Completed 

Consumption and Production and Sustainable Industrial Policy adopted in July 2008 

•  The  revised  EMAS  Regulation  was  adopted  in  November  2009  (in  force  as  of  11  January 

2010) 

EN 

62 

EN 

 
  
 
 
 
 
 
 
 
 
 
5.3 

5.4 

5.5 

5.6 

5.7 

5.8 

5.9 

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 IPPC reference 
document  
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 
Propose a vocational educational 
initiative on energy efficiency 
Create a 'Covenant of Mayors'. 

Create and operate new networks in 
Sustainable Energy Europe (SEE) 
Campaign  
Organise a competition in each 
Member State with a view to award 
a prize for the most energy-
efficient school 

•  Communication on green public procurement has been adopted as part of the Action Plan for 

Ongoing 

Sustainable Consumption and Production and Sustainable Industrial Policy (16.07.2008). 

•  The Commission has launched a web-based GPP Training Toolkit in 2008. The main aim is to 

make it easy for Member States and procurement practitioners to apply GPP.  

•  A  reference  document  on  Energy  Efficiency  (IPPC  2008/1/EC)  was  adopted  in  spring  2009 

(see 2.1). 

•  Summer 2006: Launching of raising awareness campaign "You control climate change". It has 
a dedicated section for schools, to enable teachers to use the provided teaching material in the 
classroom on voluntary basis.  
IEE  Programme  has  supported  about  20  energy  education  projects  which  involve  over  200 
beneficiaries  from  26  MS.  Around  5,000  schools  across  Europe  benefit  directly  from  the 
actions with a huge replication potential to many millions of students, teacher and parents. 

• 

Ongoing 

Under  the  IEE  a  new  initiative  "BUILD  UP  Skills:  Sustainable  Building  Workforce"  will  be 
launched in 2011 
•  January 2008: Covenant launched during Sustainable Energy Week 2008.  
•  The  Covenant of  Mayors now represents more  than  126  million  citizens  across 41  countries. 
Since its launch in 2008, the initiative has grown to include more than 1800 towns and cities. 
Together these signatories are working towards a cleaner and greener future for their citizens. 

•  Second phase of the campaign included in the 2008 IEE Work Programme.  
•  Programme extended until 2011. 

Ongoing  

Completed 

Ongoing 

•  Out  of  the  20  energy  education  projects  supported  by  the  IEE  programme  in  the  field  of 

Ongoing 

education, several contain an important competition element. 

•  Dec. 2009: start of the preparation of a European-wide competition to award the most energy 
efficient  practices  in  schools.  The  first  competition  will  be  launched  in  the  school  year 
2010/2011 and a second will follow in 2011/2012. The competition aims at awarding (a) the 
most significant energy efficiency measures in schools, and (b) the most advanced practices to 
introduce intelligent energy education in schools. A budget of 1.8 million has been earmarked 
under the IEE programme to cover these activities 

Involve the Executive Agency for 
Competitiveness and Innovation, as 
well as the national, regional and 
local energy agencies in the 

•  Strong involvement of EACI and national, regional and local energy agencies in the Intelligent 
Energy Europe programme which energy efficiency funding priorities are fully in line with the 
Action Plan.  

•  To date, the IEE programme has supported more than 250 projects to unlock the potential for 

Ongoing 

EN 

63 

EN 

 
  
implementation of the Action Plan 

end-use energy efficiency in buildings, products, industry, transport, communities, education, 
and  services,  using  a  combination  of  measures, tools,  actors  and  target groups.  The  national, 
regional  and  local  energy  agencies  have  been  very  active  in  IEE  and  rank  among  the  first 
beneficiaries. 

6. International partnerships 
Measure 
6.1 

Launch an initiative for an 
International Framework 
Agreement on Energy Efficiency 

6.2 

6.3 

Propose voluntary agreements 
(commitments) with export 
industries on information, 
minimum efficiency requirements 
and labelling 
Strengthen energy efficiency in 
energy and trade treaties, 
agreements, dialogues and other 
cooperation frameworks  

Description of implementation 
•  The  international  agreement  has  taken  the  form  of  an  international  partnership:  the 
International  Partnership  for  Energy  Efficiency  Cooperation  (IPEEC)  has  been  established 
following a Commission initiative within the G8 framework. The Partnership was launched in 
May  2009.  Members  include  the  G8  +  Australia,  Brazil,  China,  India,  Mexico,  South  Africa 
and South Korea. The EU has become a member in January 2010.  

Status 
Completed 

Completed 

Ongoing 

•  The IEA will host IPEEC's secretariat. 

•  See point 1.3 

•  Focus  on  energy  efficiency  in  EU  bilateral  agreements  has  increased:  the  issue  is 
systematically  covered  in  negotiations  on  legal  framework  agreements  with  third  countries 
(TCA, PCA, enhanced agreements, etc.) as well as Action Plans negotiated in the framework 
of the European Neighbourhood Policy.  

•  Specific  collaboration  frameworks  on  energy  efficiency  are  being  established:  e.g.  under  the 
EU-US Energy Council and with the Gulf countries. Dialogues with relevant countries such as 
Brazil, China, India are held on a regular basis.  

•  The  Action  Plan  on  Sustainable  Industrial  Policy  has  a  strong  focus  on  international 
cooperation. Several bilateral and multilateral discussions on sectoral agreements are ongoing. 
First on cement, steel, aluminium and then on pulp and paper and tyres.  

•  ACP countries: EU-Africa Energy Partnership was launched in December 2007. One of its key 
elements  is  energy  efficiency.  This  political  dialogue  is  supported  by  concrete  projects 
developed under a Thematic Program. 
Improvement of energy efficiency measures and energy savings is also covered in several MoU 
on  specific  energy  efficiency  issues  between  the  EU  and  important  third  countries  such  as 
China (on buildings).  

• 

•  Several projects exist that provide technical assistance to third countries in the field of energy 

efficiency in particular in the ENP area. 

6.4 

Increase international co-operation 
on measurement methods for 

The  International  Energy  Agency's  4E  (Efficient  Electrical  End-use  Equipment)  Implementing 
Agreement is the platform for this work. 

Ongoing 

EN 

64 

EN 

 
  
 
6.5 

minimum efficiency requirements 
and labelling 
Create an international network for 
dissemination of information and 
advice on efficient technologies  

G8 + G5 collaboration in the "Heiligendamm Process" focused on energy efficiency; information 
exchange notably on energy efficiency in buildings. Will be continued under IPEEC (see 6.1). 

Completed 

Explanations: 
•  A measure is labelled as "ongoing" when the activities to implement the measure have been initiated. Many measures can only be "completed" at 

the end of the EEAP implementation period, which is 2012. 

•  Whenever the measure has been fully implemented it is labelled as "completed". 
•  Whenever a measure has no been addressed yet for whatever reason, it is labelled as "not realised". 

Background documents:  
COM (2006) 545 final: Action Plan for Energy Efficiency: Realising the Potential.  
SEC (2006)1173: Commission Staff working document accompanying document COM (2006) 545 final. 
SEC (2006)1174: Impact assessment accompanying document COM (2006) 545 final. 
SEC (2006)1175: Executive summary of the Impact Assessment accompanying document COM (2006) 545 final 

EN 

65 

EN