Financing Energy Efficiency
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Learn about the EU's 20-20-20 targets by 2020 and the financing needed to achieve them. Discover the current trends, untapped potentials, investment needs, available funds, success stories, and future strategies in energy efficiency.
Financing Energy Efficiency
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Presentation Transcript
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?