EU 2030 energy efficiency target sends all the wrong signals to investors and means 56m Europeans will continue to live in cold homes
ACE has reacted angrily today to the news that European leaders have adopted a 27% non-binding energy efficiency target, which represents a slowing of current progress on energy efficiency and will mean 56m Europeans will continue to live in homes they cannot afford to heat.
Jenny Holland, Head of ACE’s Parliamentary Team, said:
“We have long campaigned for a 40% EU energy efficiency target, which would have been the most cost-effective way to deliver emissions reductions, greater energy security and an end to the misery of 56m Europeans who have to live in homes they can’t afford to keep warm.
“The 30% target proposed by the European Commission already represented a regrettable lack of ambition, amounting only to a continuation of current rates of energy efficiency improvement. But the 27% non-binding target agreed by Europe’s leaders last night amounts to a slowing of current progress on energy efficiency. It means that the opportunity has been squandered to lower energy bills for households and businesses by a whopping €239 billion each year by 2030.
“For the energy efficiency industry, this unambitious target sends out all the wrong signals about Europe as a place in which to invest for the longer term. With the promise of a review of the target in 2020, we will be keeping up the pressure on both the UK Government and the European institutions to put in place a much more ambitious target at the start of the new decade.”
For more information, contact: Jenny Holland, email@example.com, 07875 629781
Note for editors:
See below for a more detailed ACE commentary on the EU 2030 energy efficiency target:
“Energy efficiency is now universally regarded as the first fuel. It is the key to reducing CO2 emissions at least cost, it creates sustainable employment where and when we need it most, it saves consumers money and helps the 56 million Europeans who cannot afford to heat their homes adequately, it improves the state of public finances, enhances competitiveness and increases GDP. More pertinently than ever, it is the best way to enhance Europe’s energy security, by reducing the need to import fossil fuels from dangerous places. It is the one sanction on Putin that has real bite, and does not hurt Europe’s own economic interests.
“The European Commission recommended a binding 30% energy efficiency target for 2030. Whilst this would have represented a continuation of business as usual energy efficiency improvement, it would have at least brought up the rear, ensuring that the costs of meeting CO2 targets are reduced and the benefits increased. A binding 40% target would have ensured minimised costs and maximised benefits, alongside massively reducing dependence on Russian gas.
“While the 2030 target for reducing CO2 emissions by 40% is to be commended – particularly in the context of securing a global climate deal – and the at least EU-level binding status of the 27% renewables target is to be welcomed, the end-result of a non-binding energy efficiency target of 27% is appalling. Instead of taking its rightful place as first fuel, energy efficiency has been relegated to the position of Europe’s energy Cinderella.
“The UK Government, while an important player in securing the CO2 target, had previously been opposed to an energy efficiency target of any description, even a non-binding one. But agreeing to 27% is cold comfort. It is below the business as usual rate of energy efficiency improvement in the EU, and sends out a discouraging signal to investors. Moreover, the European Council agreed in March that energy efficiency was the top priority for energy security and boosting growth, but now:
• The CO2 target will be achieved at far less net economic benefit than it could be
• Compared to a 40% target, over three million jobs in the construction and manufacturing sectors will be foregone by 2030
• Net gas imports will be 45% higher than under a 40% target
• Energy costs to consumers will be unnecessarily high
“The status of the energy efficiency target will be up for formal review in 2020, where the Commission will consider a 30% target. Had European leaders at least agreed to make 30% binding, it would have guaranteed €2.5 trillion in savings to European consumers to 2030. We will be working hard with others to ensure that the European Parliament pushes the target back up and is made binding as well, levelling the playing field for energy efficiency, thus securing its status as an integral part of Europe’s energy infrastructure.”
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