The European Parliament adopted by 616 votes to 24, with 17 abstentions, a resolution on the follow-up of the energy efficiency National Action Plans (first assessment), following the European Commission’s communication on this issue.

The resolution welcomes the action plans produced by the Member States but notes with concern that the delays in submitting the plans and the contents of a number of National Action Plans point to deficiencies which might endanger the attainment of the EU’s energy efficiency and climate protection objectives.

Legally binding targets for energy efficiency : the Parliament calls on the Commission to make energy efficiency and energy savings the cornerstone of the Energy Policy for Europe and urges it to make the 20% energy efficiency target by 2020 legally binding. The Member States are called upon to increase their level of ambition and turn their National Energy Efficiency Action Plans (NEEAPs) into a practical tool for delivery of their energy efficiency targets under Directive 2006/32/EC on energy end-use efficiency and energy services.

More ambitious interim targets : the Parliament also calls on the Member States to go beyond the minimum national indicative energy saving target of 9% by 2016 in Directive 2006/32/EC and to set clear interim targets to achieve the final target. Moreover, the Commission is called upon to review the Directive on energy services in 2012.

Energy efficiency requirements of buildings : stressing that residential buildings are among the most energy-wasteful sectors, MEPs urge that financial support at both national and Community levels for the energy performance of buildings be increased. They encourage Member States and the regions to use Structural funds to set up on their territories thematic networks in the framework of the Concerted Action provided for by the 2008 Intelligent Energy Europe Work Programme, in order to be informed about practices of other EU regions as regards the efficient use of energy.

The National Action Plans should set as a priority the improvement of the envelope quality of dwellings where low income people reside, taking into account the fact that unpredictable fuel prices will seriously aggravate the economic situation of these households and may create serious social problems.

Developing action plans : MEPs regard it as extremely important that the National Action Plans be adapted to geographical, climatic, economic structure and consumer characteristics, which can differ widely between regions. Moreover, the plans should pay special attention to poverty caused by rising energy prices and guarantee suitable protection for those at risk of poverty.

MEPs also consider it indispensable that the National Action Plans be prepared with the substantive involvement of local and regional governments, civil organisations and economic partners in order to ensure better grassroots implementation. In this context, they stress the need for the development of best practices and synergies and the organisation of information exchange and coordination of the diverse and dispersed actors in the energy efficiency sector.

Role of SMEs : MEPs believe that SMEs have an important role to play in improving energy efficiency but that they do not have the same capacity to comply with legislation or new standards in the energy sector. They consider, therefore, that the facilities which will be created by the Small Business Act should handle information and contacts with SMEs concerning energy efficiency.

Informing consumers and raising awareness : stressing the strategic role of EU public authorities, in particular at regional and local level, the report calls on the Member States to: (i) incorporate, in their existing structures for contacts between government agencies and the public, information on energy efficiency, best practice in those areas and consumer rights which have been established in the energy and climate sector; (ii) develop long-term energy efficiency awareness campaigns, focusing on efficiency in buildings, both public and private, and also on convincing the public that energy efficiency can bring them real savings.

The Commission is called upon, inter alia, to:

support the compulsory introduction of smart metering systems; examine possible ways of reinforcing public procurement procedures with a set of energy efficiency conditions, to be achieved by giving priority to 'green' products in public contracts; study the Community resources dedicated to research and development in order to boost the resources dedicated to improving energy efficiency in the next seven-year financial perspective; encourage those Member States which have not yet adopted their national energy efficiency plan to implement decisions which have been taken in that area.

The Committee on Industry, Research and Energy adopted an own-initiative report by András GYÜRK (EPP-ED, HU) in response to the Commission Communication on the follow-up of the energy efficiency National Action Plans (a first assessment).

The report welcomes the action plans produced by the Member States but notes with concern that the delays in submitting the plans and the contents of a number of National Action Plans point to deficiencies which might endanger the attainment of the EU’s energy efficiency and climate protection objectives.

Member States are called upon to increase their level of ambition and turn their National Energy Efficiency Action Plans (NEEAPs) into a practical tool for delivery of their energy efficiency targets under Directive 2006/32/EC and, in particular, to improve energy efficiency by at least 20% by 2020. They are also called upon to go beyond the minimum national indicative energy saving target of 9% by 2016 in Directive 2006/32/EC and set clear interim targets to achieve the final target.

MEPs regard it as extremely important that the National Action Plans be adapted to geographical, climatic, economic structure and consumer characteristics, which can differ widely between regions. They also consider it essential that the National Action Plans be prepared with the substantive involvement of local and regional governments, civil organisations and economic partners in order to ensure better grassroots implementation. In this context, they stress the need for the development of best practices and synergies and the organisation of information exchange and coordination of the diverse and dispersed actors in the energy efficiency sector.

According to MEPs, the National Action Plans should pay special attention to poverty caused by rising energy prices and guarantee suitable protection for those at risk of poverty. The Plans should also place special emphasis on how governments intend to promote and support energy efficiency investments on the part of SMEs, which have an important role to play in improving energy efficiency but do not have the same capacity to comply with legislation or new standards in the energy sector.

Stressing the strategic role of EU public authorities, in particular at regional and local level, the report calls on the Member States to: (i) incorporate, in their existing structures for contacts between government agencies and the public, information on energy efficiency, best practice in those areas and consumer rights which have been established in the energy and climate sector; (ii) develop long-term energy efficiency awareness campaigns, focusing on efficiency in buildings, both public and private, and also on convincing the public that energy efficiency can bring them real savings.

MEPs call on the Member States and the regions in particular to use Structural Funds to set up on their territories thematic networks in the framework of the Concerted Action provided for by the 2008 Intelligent Energy Europe Work Programme.

The Commission is called upon, inter alia, to:

support the compulsory introduction of smart metering systems; examine possible ways of reinforcing public procurement procedures with a set of energy efficiency conditions, to be achieved by giving priority to 'green' products in public contracts; study the Community resources dedicated to research and development in order to boost the resources dedicated to improving energy efficiency in the next seven-year financial perspective; encourage those Member States which have not yet adopted their national energy efficiency plan to implement decisions which have been taken in that area.

PURPOSE: to present the first evaluation of the national energy efficiency actions plans (NEEAP) as required by Directive 2006/32/EC on energy end-use and energy services.

CONTENT: Directive 2006/32/EC requires Member States to prepare a NEEAP and to notify it to the Commission by 30 June 2007. For the purpose of the first NEEAP, each Member State should have adopted an overall national indicative savings target of 9% or higher, to be achieved by the end of 2016 , and an intermediate national indicative savings target for 2010. They should also show in their first NEEAPs how they intend to reach these energy savings targets, describing the strategy and measures being put in place to achieve them. They should show, in particular, how they intend to comply with the provisions on the exemplary role of the public sector and the provision of information and advice on energy efficiency to end users.

A first review of the 17 NEEAPs submitted by the Member States shows that five Member States have adopted a savings target that goes beyond the minimum indicative target of 9% (notably Cyprus, Lithuania, Italy, Romania). While most seem to present a business-as-usual approach, some are more progressive, but without a clear definition as to what the new measures will be and how they will be implemented.

Although the first action plan provides some encouragement, there appears to be a gap between the political commitment to energy efficiency and the proposals aimed at facing up to these challenges.

The main measures highlighted in the first evaluation to promote energy efficiency concern the following issues :

The exemplary role of the public sector : the public sector is required to play an exemplary role, encouraging other actors to undertake energy efficiency actions across all sectors of the economy. Several Member States have set out comprehensive action plans in this field, demonstrating that they are stepping up to the challenge and leading by example. Ireland, for example, has adopted an ambitious public sector savings target of 33% by 2020, and Germany has committed to a 2012 CO2 reduction target of 30% for the public sector compared with 1990 levels, to be achieved mainly through energy efficiency improvement measures. The United Kingdom aims for carbon neutral central government buildings by 2012.

Proposed mechanisms are as follows: promote exchange of best practices and replication of good ideas among public sector bodies, at local, national and international level; putting in place a major retrofit programme for its federal buildings; the use of energy audits (all resultant recommendations with a pay-back period of 5 years or less will be required to be implemented); applying the Code for Sustainable Homes to all housing developments; introducing programmes to update obsolete public street lighting systems; sustainable public procurement.

Awareness raising, education and training : From the NEEAPs, it seems that most Member States will advocate energy efficiency via general information campaigns and/or targeted efforts linked to incentive schemes. Such information measures, coupled with clear price signals, tariffs encouraging energy efficiency and better feedback on actual consumption, through improved billing and smart meters, should put end-users in a position to take better-informed decisions on their energy use and on taking up energy efficiency incentives.

Providing incentives and mechanisms : financial and fiscal incentives are important in reducing transaction costs and perceived risks associated with adopting new technologies and novel practices. The NEEAPs present an array of incentive programmes. Many are horizontal in nature, addressing more than one sector: the expansion of passive or low energy buildings; a reduced value added tax rate to be applied to suppliers of services relating to construction, renovation and insulation of residential houses financed with state and municipal budget resources; putting in place an Energy Investment Deduction, a tax rebate scheme for private companies, which can be applied to the purchase or production of energy efficient equipment and sustainable energy; voluntary agreements between the national government and public and private sector actors; the importance of promoting Energy Service Companies (ESCOs); credit facilities targeting the commercial and residential sectors.

Providing the necessary institutional infrastructure : most Member States have energy agencies. They play an important part in the implementation of energy efficiency policies and programmes. Agency mandates and scope differ. As there are more than 350 local and regional agencies in the EU, this approach could be replicated in other Member States to make better use of the resources that these agencies represent.

Transport and spatial planning : most Member States face considerable challenges in the transport sector and many of those that have experienced rapid growth and heavy increase in private car ownership recognize that radical measures may now be necessary to reverse the trend. Certain countries are presenting measures concerning spatial planning aiming at reducing energy use and emissions and improving the quality and extent of the transport infrastructure.

Through eco-driving initiatives Member States are aiming to improve the fuel efficiency of vehicles, thereby reducing greenhouse gas emissions, improving road safety and reducing the number of accidents.

Next steps : the Commission looks forward to further plans and to the exchange of experience and best practice and it will do its part to help Member States with their implementation of the plans.

In the coming months, the NEEAPs received by the Commission will be subject to analyses to assess whether they seem realistic with regard to achieving the savings targets identified in the plans. The Commission will consult with Member States on the review of NEEAPs before the assessment is published. Meanwhile the infringement procedure against the Member States that have yet to notify NEEAPs continues, and the Commission will closely follow the further transposition of the Directive.

That is why the Commission has suggested that Member States establish a Concerted Action on the Directive under the 2008 Intelligent Energy Europe Work Programme. The purpose of the Concerted Action is to facilitate the exchange of experiences between Member States and ensure a more rapid uptake of best practices throughout the Community.

The Commission will launch a web-based stakeholder platform to gather and present stakeholder input (industries and their umbrella organizations, local and regional actors, as well as non-governmental organizations representing consumers and environmental interests, etc).

Lastly, progress towards strategic objectives agreed in March 2007 will be assessed in the 2 nd Strategic Energy Review. The Review should help in formulating recommendations for future policy development, and in taking forward further work on an EU energy policy for Europe.

This report has been prepared by the Commission in accordance with requirements set out in Directive 2006/32/EC on energy end-use efficiency and energy savings. Under the terms of the Directive, each Member State is required to prepare a “National Energy Efficiency Action Plan” (NEEAPs) and to notify it to the Commission by 30 June 2007. Not all Member States managed to meet this obligation. Hence this report is based on 17 NEEAPs only and as such offers a partial response only. This, the first such report, provides an overview of the range of strategies and measures presented by the Member States and it identifies good practices which merit closer examination.

Energy conservation and energy efficiency improvements are of increasing importance within the context of environmental sustainability and the security of energy supply. The NEEAPs provide a practical demonstration of Member States’ commitment to achieving reduced CO2 targets. The report notes that whilst efficiency improvements are already being achieved and leading to a decrease in energy intensity, the total energy consumption in Europe is, nevertheless, increasing. This in turn leads to increased CO2 emissions and fossil fuel import dependency.

To recall, the Directive requires that the Member States adopt a 9% indicative energy end-use savings target by 2016 and that the legal framework for promoting energy efficiency is up and running by the end of 2016. Further, by 2010 the Member States must have established a national indicative savings target. In other provisions, the Directive requires that the public authorities set an exemplary role in order to encourage other actors to undertake energy efficiency action plans. In short, they are to demonstrate to others that they are stepping up to the challenge and leading by example.

A first assessment:

The first review of the 17 NEEAPs submitted indicates that five Member States have adopted a savings target that goes beyond the minimum target of 9%. Several Member States say they intend to achieve higher savings targets but fail to specify, formally, how they are going to achieve this. Several NEEAPs envisage that a sizeable portion of their total savings, over the nine-year period, will come from so called existing or “early actions”. Six NEEAPS do not cover the entire nine-year period set by the Directive.

As far as the exemplary role of the public sector is concerned the report notes that several Member States have set out comprehensive action plans, demonstrating that they are stepping up to the challenge and leading by example. On the other hand, several Member States state that they will comply with the Directive’s provisions on public sector requirements but fail to describe how. On the matter of promoting energy efficiency, it appears that most of the Member States will advocate energy efficiency through general information campaigns and/or targeted efforts linked to incentive schemes. An array of incentive schemes (financial and fiscal) are set out in the NEEAPs. Many are horizontal in nature, addressing more than one sector. Other instruments include voluntary agreements; market based instruments; and energy service companies (ESCOs). In other measures, many Member States have set up the institutional infrastructure to facilitate an energy efficiency programme (i.e. Energy Agencies) as well as putting considerable effort into considering transport and spatial planning initiatives (i.e. fuel efficiency initiatives).

Among the NEEAPs reviewed by the Commission, several present comprehensive strategies and plans that are likely to deliver savings beyond the required 9%. However, many of the plans offer a “business-as-usual” approach that fail to offer forward-thinking, visionary strategies..

Moving forward:

Within the coming months, the Commission will continue to analyse and review the NEEAPs with a view to assessing whether they are realistic. In the meantime infringement procedures against those Member States who have failed to notify their NEEAPs will continue.

Conclusions:

To conclude the report, the Commission notes that the NEEAPs offer an opportunity to focus on energy efficiency – a matter of strategic importance to the EU. Whilst, at first glance the NEEAPs offer some encouragement, they also reveal considerable gaps between political commitment and measures adopted. The Commission, therefore, looks forward to the submission of further plans and the exchange of best practice. Progress towards strategic objectives, as agreed in March 2007, will be assessed in the second Strategic Energy Review, which in turn will help formulate recommendations for future policy developments. This will almost certainly include an energy efficiency component. The report concludes by setting out, in Annex, data on the calculation of CO2 benefits from the savings targets, as provided for in the Energy Services Directive.