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Financing Energy Efficiency. Philip Lowe Director General Directorate-General for Energy. The EU 20-20-20 targets by 2020. Reduce greenhouse gas emissions by 20%. Increase share of renewables to 20%. Reduce energy use by 20%. 100%. Current trend to 2020. Current trend to 2020. -20%.
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Financing Energy Efficiency Philip Lowe Director General Directorate-General for Energy
The EU 20-20-20 targets by 2020 Reduce greenhousegas emissions by 20% Increase share of renewables to 20% Reduce energyuse by 20% 100% Current trend to 2020 Current trend to 2020 -20% -10% Current trend to 2020 20%
100 Remaining saving potential to be addressed with new measures 80 11% 60 Savings expected to be achieved with already existing measures Economic potential [Mtoe] 40 16% 2% 20 5% Industry Commercial Residential Transport Sectors covered by EED Despite untapped savings potentials across all major sectors
Sectoral measures General promotional measures Indicative national EE targets Monitoring & Reporting Policy response: a new Energy Efficiency Directive Public sector House- holds Services Energy supply Industry new EED
…and beyond 2020? • Roadmap 2050 • Explore routes towards a low-carbon energy system by 2050 • Give more certainty to governments and investors • Energy efficiency is a ‘no-regrets’ option • Well-functioning energy markets are key
What is the ‘investment’ need? • Energy savings potential across sectors requires investment of around 850 billion € (2011-2020) • Around 85 billion € per year • Buildings take the lion’s share of around 60 billion € per year
What is currently available at EU level? • Cohesion policy funds (2007-2013): • 4,6 billion € for energy efficiency • Intelligent Energy Europe Programme (2007-2013): • 735 million € for ‘soft’ energy efficiency/renewables projects • ELENA Facility: • 97 million € for technical assistance to mobilise investments • European Energy Efficiency Fund (EEE-F): • 265 million € for investments into mature, bankable efficiency/renewables projects • 20 million € for technical assistance
What will be available at EU level? • Next Multi-Annual Financial Framework (2014-2020) proposals: • Cohesion funding to allocate some 17 billion € to energy efficiency and renewable energy (doubling current allocations) • Horizon 2020: 6.5 billion € is to be allocated to research and innovation in "Secure, clean and efficient energy"
What works? • National funding programmes • KfW “energy efficient building and renovation” programmes in Germany • Every Euro invested returned 2-5 Euros to state coffers, mainly through job creation! Source: Impact on public budgets of KfW promotional programmes in the field of "energy-efficient building and rehabilitation", Research Centre Jülich, October 2011
What works? • Energy performance contracting • Berlin has made use of energy performance contracting since 1996 • Over 1300 public buildings have been upgraded • Cost savings of about 10,5 million € - i.e. a quarter of the energy cost of the buildings involved
What works? • Energy saving obligations in Member States • Cost of delivered savings lower than price of energy
What do we need going forward? • Engagement, especially of the financial sector, to: • Convince policy makers • Assist in policy development • Support leveraging of public money
What could we do to help? • Commission to launch consultation on financial support for energy efficiency in buildings • How could access to financing be improved? • What is the role of the EU regulatory framework? • How to remove important barriers?