The Ecofys Reports – key arguments to support energy efficiency in buildings

1. The Ecofys Reports – key arguments to support energy efficiency in buildings EU STRUCTURAL FUNDS TRAINING DAY March 06, 2006

2. What is at stake? Global Warming – Europe’s reputation at stake Under the Kyoto Protocol Europe is committed to reduce its greenhouse gas emissions by 8% by 2008-2012. Not only are current policies insufficient to achieve this goal, failure to meet it will severely undermine the moral authority of Europe in negotiating future commitments. Security of Energy Supply – more dependence, less stability The EU’s dependence on foreign energy supplies is expected to increase to 70% by 2030. Given the current potential for conflicts in major energy exporting regions, we are gambling with the future of the economy. The Lisbon Process – action not words needed The reform process needed to implement the Lisbon Strategy is way behind schedule. In the recent report from the High Level Group Chaired by Wim Kok this was recognised and action on eco-efficiency was seen as an area for focus.

3. Meeting these challenges EU unlikely to meet Kyoto objectives z Buidlings alone have the pontential to reach Kyoto objectives z Global Warming Action No action z Increasing dependence on foreign energy sources Reducing energy demand in buildings can help limit our exposure to supply issues Security of Energy Supply No action Action Lisbon objectives not achieved Improving energy efficiency improves economic efficiency No action Action The Lisbon Process

4. ECOFYS reports – quantifying the potential Climate Protection Regulation Competitiveness Enlarged EU

5. STEP 1 - Climate protection (EU 15)

6. Potential from buildings (EU 15)- CO2 savings Annual CO2 Emissions in the European Building Stock (EU 15) Reduction Potential from Buildings 398 (Mt/a) 725 Total heat related emission Technical potential emission reductions

7. STEP 2 - Quantifying the impact of regulation (EU 15)

8. Onlyten percentof thepotential for buildings is being seized by the Energy Performance of Buildings Directive Transport Industry Buildings Quantyfing the gap in the EU

9. Key findings

10. Key findings - in detail • Technical potential for buildings > 1000 m² amounts to 82 Mt/a • Technical potential for all buildings: 398 Mt/a • Main potential in moderate and warm climate

11. Key findings All small buildings ECOFYS Study Existing large buildings New buildings Current EU rules

12. STEP 3 - Quantifying the impact on competitiveness (EU 15)

13. Potential from buildings (EU 15) - cost savings Individual

14. Potential from buildings (EU 15) - cost savings Societal 8 Billion EURO

15. Conclusion for jobs • Impact on jobs based on: • Construction market • Equipment • Maintenance of equipment • Impact expected to lead to up to: 300,000* new jobs per year * Eurima estimate

16. STEP 4 - Extending all the results to the new Member States (EU 8)

17. New Member States – commonopportunities • Same potential of energy savings • 40% of Energy Use • Large potential of CO2 reduction • 60 million tonnes • Significant potential of cost savings • 0.5 Billion EURO • Major job potential • 230 000extra jobs

18. New Member States – different challenges • Crisis in the Housing Sector • Suffer from inadequate condition of their homes • High energy bills • Very poor energy efficiency levels • Need for urgent refurbishment

19. Specific in new Member States – job creation Up to 230,000* New Jobs * Eurima estimate

20. New Member States – barriers • Barriers to energy efficiency investment • Political and institutional • Financial and economic • Legal • Capacity and social

21. STEP 5 - Adjusting the results to the new energy prices (EU 25) ECOFYS VI

22. A changing landscape

23. What needs to be done? Correct implementation EPBD to be fully extended to all buildings Used to refurbish buildings National Action Plans to focus on buildings The need for actions • What is the EU Doing? • EPBD • Green Paper • Structural Funds • Energy Services Directive