Energy Efficiency: Theory, policy and practice

1. Energy Efficiency:Theory, policy and practice Tackling climate change for sustainability Budapest, EURIMA Congress, 1 June 2007 By Edit Herczog, member of the European Parliament

2. Content • Foreword: Communicating with MEPs • From facts and figures to information and decisions • Intro: Energy and climate • A chain of direct links • Energy efficiency: the debate • In theory • In the EU’s policies • In the EU’s legislation • Energy efficiency: the challenge • In the energy chain • In the individual perspective • In Hungary

3. Communication with MEPs FOREWORD

4. Building up the message todecision makers Stocks: Gathering the spare parts ~100 pcs First step: Assembling the elements 10 pcs Second step: Assembling the whole 1 pc Delivery: Ready to use product Decision makers can’t do this process on their own. Eurima does it very well. Congratulations! Here comes the MEP Analysis: Coordinating the different interests Synthesis: Common concise position Drafting: Ready-to-go communication Research: Establishing facts, Identifying interests

5. Energy and Climate INTRO

6. Energy and Climate:A chain of direct links Stern review: The global warming originates in GHG emission, mainly CO2 The gross „emission mix” in Europe: The consumption „emission mix” : This is our Energy Efficiency playing field This is our Energy Efficiency playing field

7. Energy Efficiency:the debate

8. Power Output Energy Efficiency = Power Input Doing More Energy Efficiency = With Less Energy Efficiency: the debatein theory • Physical definition: • Political conclusion: • You can increase efficiency: • By increasing the output (and growth requires this) • While decreasing the input (that’s our challenge)

9. Energy Efficiency: the debatein the EU’s policies • Energy Efficiency (EE): the omnipresent topic • Environment policy: • Consumer policy: • Industry policy: • Transport policy: • R&D policy: • Innovation policy: • Energy policy: EE: key to reduce emissions EE: main theme for education EE: market differentiator (e.g. „Energy Star” system) EE: core of the ongoing debates on road, urban and air transport EE: ~250m€ in FP7 / Cooperation / Energy EE: ~500m€ in CIP / Intelligent Energy EE target: +20% by 2020

10. Energy Efficiency: the debatein the EU’s legislation • 12 Dves on energy labelling of domestic appliances: • Minimum efficiency requirements + Clear labelling in stores (A to F) • Dve 2002/91/EC on energy performance of buildings (EPBD): • energy performance certificate + Renovation requirements over 1.000m2 • Dve 2004/8/EC on cogeneration • 18% target by 2010 can still be met • Dve 2005/32/EC on ecodesign: • 14 product-specific studies underway to assess options to improve the energy efficiency of power-using products • Dve 2006/32/EC on energy end-use efficiency: • public sector leadership • subsidies to private sector • informative billing and communication to consumers • National Implementation Plans due by June 2007. Hungary’s GKI is currently finalising it.

11. Energy Efficiency: the debateWhat next? • Content: • The Energy Performance Directive is a good basis that should be improved: • Reduce the 1000m2 requirement (include residential buildings) + enlarge the scope of covered renovations • Lay down binding upgrade targets for owners • Help owners and consumers make better choices, with clear information and efficient incentives • Funding: • The EU’s Cohesion Policy, the Cohesion Fund and the Regional Development Fund all contribute to improving energy efficiency, but more could be achieved: • Increase the share of energy efficiency in the ERDF (currently 2%)… • And within the ERDF, in the operative programmes (currently 3%) • Broaden the Cohesion Fund eligibility (currently only social housing) • Eurima’s role: • Provide facts and analysis to support the above-mentioned evolutions • Put forward further suggestions • Or in brief: Continue the work as before.

12. Energy Efficiency:the challenge

13. Energy Efficiency: the challengeIn the energy chain Generation District heating and cooling Industrial use Consumption Transport • „SMART GRID”: • Interconnect networks • Rationalise transport Electric office and home appliances • Diversify • Develop and rely on low carbon resources • Cogenerate • Increase efficiency • Reduce losses and waste • Raise awareness • Change consumer habits

14. Energy Efficiency: the challengeIn the individual perspective Energy Efficiency integrates many factors: • Local climate • Integrated local generation capacity • Lighting • Heating • Cooling • Insulation And of course… • The consumer …and act on it. Measure it… The decisive factor is the consumer. He needs info, advice and assistance.

15. Figures: Actions: „Panel” Program: HUF 20 bln (€ 80 mln) loan program 40.000 out of 800.000 prefabricated flats renovated by 2005 Average 30% saving on heating: RONI = 15 yrs „Panel Plusz” Program subsequently pursued 2006 energy efficiency tender: HUF 880 mln (3.5m€) for household energy savings Non-reimbursable subsidies Energy Efficiency: the challengein Hungary Energy efficiency Denmark (3x EU average) EUaverage Hungary (1/2 EU average) The need for action is great. The potential as well.

16. Thank you very much. Edit Herczog edit.herczog@europarl.europa.eu +32 228 47596