Energy Efficiency in Buildings at the crossroad of European energy, cohesion and industrial policies
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1 Efficiency in Buildings at the crossroad of European energy, cohesion and industrial policies Tudor Constantinescu, PhD Principal Adviser European Commission BPIE Workshop on stimulating building renovation in Romania
2 Major energy challenges in Europe.Import Dependency.High Prices.Decarbonisation 2
3 2030 targets By» Greenhouse gas emissions reduction of 40%.» EU level target of at least 27% as the share of renewable energy.» Greenhouse gas reduction target at EU level, shared equitably among the Member States.» A reform of the Emissions Trading System.» A new European governance process for energy and climate policies based on Member State plans for competitive, secure and sustainable energy. While energy efficiency will continue to play a significant role in delivering the Union's climate and energy objectives. 3
4 ENERGY EFFICIENCY Implementation of the existing framework Identify good projects Ensuring access to finance Define new objectives and policy measures for the future Source: IEA
5 Progress towards climate/energy goals Reduce greenhouse gas levels by 20% Current trend to % Increase share of renewables to 20% Reduce energy consumption by 20% Current trend to % ~16-20% Current trend to %?
6 ENERGY EFFICIENCY DIRECTIVE Milestones April 2013: National indicative targets reported December 2013: Design of Article 7 EED April 2014: First EED NEEAPs & Buildings Renovation Strategy June 2014: Commission assessment of progress
7 Heating is the biggest driver of energy consumption in buildings today
8 Cost optimal methodology Aimed at ensuring high ambition level in MS Reports from Member States due by March 2013 Current state: 22 reports received so far Commission will check and report 8
9 NZEB European Commission's study Towards nearly zero energy buildings Definition of common principles under the EPBD Finished early 2013 Final report available on our website: Key conclusions: Indication that mild climates and abundant solar irradiation make nearly zero energy buildings in southern Europe technologically feasible with global costs over 30 years equal or lower than ordinary buildings built today. More challenging in northern climates. Smooth transition between cost optimality and nearly zero energy buildings is achievable. Overall: Limited progress at MS level, more guidance necessary 9
10 Financing. How much is needed? savings potential across sectors requires investment of around 850 billion ( ).Around 85 billion per year.buildings take lion s share of ~ 60 billion/year
11 EU Funding for Sustainable MFF Cohesion Policy to allocate some 23 billion (estimate!) to investments in energy efficiency, renewable energy, smart grids and urban mobility, including research and innovation in those areas in complementarity with Horizon 2020; plus use of Financial Instruments (e.g. EIB, also in the context of Mediterranean countries FEMIP) Horizon 2020: some 5.4 billion to be allocated to research and innovation in "Secure, clean and efficient energy" Connecting Europe Facility: some 5 billion to be allocated to investments in TEN-E infrastructure of highest European added value Other European Structural and Investment (ESI) Funds: European Agricultural Fund for Rural Development and European Maritime and Fisheries Fund LIFE+ and COSME might also be relevant for certain aspects Regional Policy 11
12 inclusive sustainable smart Europe Research and innovation Thematic Objectives 2. Information and Communication Technologies 3. Competitiveness of Small and Medium-Sized Enterprises (SME) 4. Shift to a low-carbon economy 5. Climate change adaptation and risk management and prevention 6. Environmental protection and resource efficiency 7. Sustainable transport 8. Employment and support for labour mobility 9. Social inclusion and poverty reduction 10. Education, skills and lifelong learning 11. Increased institutional capacity and effectiveness of public administration Regional Policy
13 Planning Documents involved Partnership Agreement (PA) Programmes (OP) 1 per MS national level Overarching strategy which: > Sets out the planned use of the 5 ESI Funds - consistent with the European Semester - taking into account of regional disparities - an integrated approach Core elements: > Strategic choices = selected thematic objectives, allocations, main results expected > List of programmes > Coordination with cross-border / transnational programmes > Commitments on administrative capacity and reduction of administrative burden > Ex-ante conditionalities (at national level) 3 -? per MS; ~300 total at national or regional level Main role: to set out a coherent intervention strategy for the territory/sectors Core elements: > Selection of thematic objectives, (investment) priorities/measures, the intervention logic, performance framework > Financing plan and list of major projects > Arrangements for the delivery system > Ex ante conditionalities Concise programmes with clear focus on results. Consistency with Europe 2020 and European Semester is important. Regional Policy
14 Regional Policy Investments in Sustainable in Cohesion Policy To ensure better spending of ERDF /CF resources, MS will have to fulfil ex ante conditionalities relating to those investment priorities, e.g. linked to the Performance of Buildings Directive or the Renewable Directive. Implementation of the existing framework; Ensuring access to finance. 14
15 Regional Policy Investments in Sustainable in Cohesion Policy "Supporting the shift towards a low-carbon economy in all sectors" 5 investment priorities proposed by the Commission for ERDF and CF: a) Promoting the production and distribution of RES b) Promoting EE and RES use in SMEs c) Supporting EE and RES use in public infrastructures and in the housing sector (housing only ERDF) d) Developing smart distribution systems at low voltage levels ("smart grids") e) Promoting low-carbon strategies for urban areas 15
16 Implementation Principles Implement legislation, policies and measures that create the favourable investment conditions for EE Mainly private sector investment. Ensure public funding complements or triggers private investment, leveraging it and not crowding it out EE: Consider creating value for energy savings through market mechanisms before public funding (energy saving obligations, energy service companies/performance contracting ) Financial instruments to be used where potential for private revenue or cost savings is large For physical investment, grants to be used primarily: to address market failures to support innovative technologies to support investments that ensure energy savings and GHG emission reductions above "business as usual", moving towards NZEB Regional Policy
17 Cohesion Policy, Total allocations Regional Policy
18 Thank You for Your Attention!
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