COMMISSION STAFF WORKING DOCUMENT EXECUTIVE SUMMARY OF THE IMPACT ASSESSMENT REPORT Accompanying the Proposal for a Directive of the European Parliament and of the Council on energy efficiency (recast)
Date: 2021-07-14
Institutions: Directorate-General for Energy, European Commission
Subjects: EU energy policy, adaptation to climate change, energy consumption, energy cooperation, energy efficiency, energy saving, energy use, reduction of gas emissions

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   EUROPEAN COMMISSION  Brussels, 14.7.2021  SWD(2021) 624 final  COMMISSION STAFF WORKING DOCUMENT  EXECUTIVE SUMMARY OF THE IMPACT ASSESSMENT REPORT  Accompanying the Proposal for a Directive of the European Parliament and of the Council  on energy efficiency (recast) {COM(2021) 558 final} - {SEC(2021) 558 final} - {SWD(2021) 623 final} - {SWD(2021) 625 final} - {SWD(2021) 626 final} - {SWD(2021) 627 final}  
 
 
A. Need for action  

What is the problem and why is it a problem at EU level? 

The EU currently has an energy savings target of at least 32.5% in 2030, compatible with a 40% 
greenhouse gas reduction (GHG) reduction. The Climate Target Plan proposes an EU target for 
2030  of  at  least  55%  net  GHG  reduction  compared  to  1990  levels  in  a  cost-optimal  way.  To 
achieve this, EU final and primary energy consumption should decrease by at least 36-37% and 
39-41% respectively compared to projected energy use.  
Given that combustion of fuels for energy is responsible for 75% of current EU GHG emissions, 
reducing energy use is a vital element, along with decarbonising energy supply, in achieving the 
EU’s target. The broad measures to achieve a 55% GHG reduction in 2030 were explored in the 
Climate  Target  Plan.  At  present,  EU  energy  saving  efforts  are  insufficient  to  achieve  the  2030 
GHG  target  in  an  optimal  way  and  therefore  the  problem  is  how  they  can  be  boosted.  It  is 
important  for  the  EU  to  show  it  is  feasible  and  desirable  to  take  action  to  reduce  its  GHG 
emissions as part of the European Green Deal in the most cost-effective way. 

What should be achieved? 

The  increased  energy  savings  needed  mean  that  the  Energy  Efficiency  Directive  should  be 
reinforced.  This  will  ensure,  along  with  other  EU  legislation,  that  there  are  sufficient  energy 
savings  to  achieve  the  EU’s  2030  climate  goal  cost-effectively.  The  energy  savings  should  be 
achieved in the sectors where this makes most sense from an economic, social and environmental 
point of view. Co-benefits such as from reduced environmental impacts and avoid exacerbating 
inequality should be optimised. 

What is the value added of action at the EU level (subsidiarity)? 

The  Treaty  on  the  Functioning  of  the  EU  identifies  an  aim  of  EU  energy  policy  as  promoting 
energy  efficiency  and  energy  saving.  The  underlying  problems  causing  a  shortfall  in  energy 
savings  are  the  same  across  the  EU.  Action  at  the  EU  level  can  enable  and  enhance  efforts  by 
Member States and ensure a more coordinated and harmonised approach avoiding distortion of 
the  single  market.  It  will  help  to  create  greater  markets  for  materials  and  products  that  help 
improve energy  efficiency. Experience indicates that having a common  EU framework reduces 
costs, increases benefits from the internal market and allows national policy-makers to learn from 
each other. The EU measures effectively complement and catalyse national measures. 

B. Solutions  

What are the options to achieve the objectives? Is there a preferred option or not? If not, why? 

The  main  mechanism  to  achieve  the  objectives  is  through  increasing  the  overall  EU  energy 
savings  target  and  increasing  its  binding  effect.  This  can  be  supplemented  by  specific 
requirements  that  lead  to  energy  savings,  for  example  by  expanding  the  measures  relating  to 
public sector procurement and building renovations and increasing the ambition of energy saving 
obligations.  There  is  a  need  for  strengthening  and  enhancing  the  wide  range  of  enabling  and 
supporting measures to create an environment where it is easier to promote energy efficiency and 
achieve  energy  savings.  The  options  need  to  be  assessed  to  ensure  their  coherence  with  other 
measures being proposed as part of the Fit for 55 package. 

What are different stakeholders' views? Who supports which option?  
A  large  majority  of  stakeholders  agree  that  energy  efficiency  policies  play  a  key  role  in 
delivering  higher  climate  ambition  for  2030,  while  allowing  for  a  sustainable  growth  that  does 
not  leave  anyone  behind.  Their  views  somehow  differ  on  the  appropriate  measures  to  achieve 
that, but there is no striking difference on the ultimate objectives.  
Almost half favour a higher EU target and more than half support it being binding. Around half 

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support binding national targets. There are quite varied views on the range of options identified. 
In  general,  civil  society  is  more  positive  about  what  the  proposed  measures  could  be.  In  many 
cases, business is quite supportive. Public authorities appear to have a more cautious approach. 

C. Impacts of the preferred option 

What are the benefits of the preferred option (if any, otherwise of main ones)? 
The  preferred  option  consists  of  a  package  that  achieves  a  high  level  of  energy  savings  in  an 
effective way, while avoiding the most burdensome options considered. 

What are the costs of the preferred option (if any, otherwise of main ones)? 
The main costs are the investments needed so that energy efficiency will be increased. Financial 
support from NextGenerationEU and other public sources are expected to play a pivotal role in 
uptake of energy efficiency investments. Capital costs for more energy efficient equipment and 
retrofitting of buildings are considered. 

What are the impacts on SMEs and competitiveness? 
There are not expected to be significant impacts on SMEs. There is a considerable scope for cost-
effective  energy  savings  in  services  and  industry  that  will  not  lead  to  any  overall  increase  in 
costs.  Implementing  these  should  reduce  business  exposure  to  energy  price  fluctuations  and 
along with the reduced operating costs enhance its competitiveness. 

Will there be significant impacts on national budgets and administrations? 
There are implementation costs associated with  the preferred option  for  public administrations, 
even  if  those  build  on  already  existing  measures.  Nevertheless,  these  additional  costs  are 
expected to be small compared to the substantial cost savings that will be realised through energy 
saving  investments.  Money  not  spent  on  energy  will  be  used  for  other  purposes  and  lead  to  a 
boost in employment and economic activity. 
These costs may vary, depending on the manner in which Member States choose to implement 
the requirements. The EED Concerted Action provides a forum for Member States to share best 
practice and identify effective ways to achieve the desired objectives. The Commission is ready 
to support Member States further with technical assistance. 

Will there be other significant impacts? 

Reducing energy use will bring significant environmental benefits, in particular from reduced air 
pollution.  It  will  also  lead  to  other  environmental  benefits  such  as  reduced  emissions  to  water 
from power stations and reduced environmental damage due to the lower need for infrastructure 
and  less  resource  extraction.  It  reduces  resource  consumption  and  positively  contributes  to  the 
circular economy. 
Reduced  energy  needs  will  also  decrease  the  EU’s  dependence  on  energy  imports  and 
geopolitical volatility, thus helping to insulate the economy from external energy price shocks. 
Through well designed measures, it will also lead to important social benefits. For example, the 
energy  upgrading  of  housing  will  lead  to  better  living  conditions  and  health  as  well  as  lower 
expenditure on energy. Energy saving measures lead to a high level of job creation. 

Proportionality? 
The proportionality principle is fully respected. The measures proposed are the minimum needed 
to achieve the goals that are crucial to achieving the EU’s climate ambition for 2030. 

D. Follow up 

When will the policy be reviewed? 
The Commission intends to review the implementation of the legislation to assess the extent to 
which the policy objectives have been achieved every 5 years. 

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