Sergio Andreis , Kyoto Club

1. WP2 Information, awareness-raising and capitalisationFifthSteeringCommittee meeting 10-15 June 2014 Lakatamia, CyprusThe transposition into Member States’ legislations of the energy efficiency Directive 2012/27/EU Sergio Andreis, Kyoto Club

2. Directive 2012/27/EU The new Directive http://eur-lex.europa.eu/legal-content/EN/TXT/?qid=1399375464230&uri=CELEX:32012L0027 entered into force on 4 December 2012. Most of its provisions have to be implemented by the Member States by 5 June 2014. The Directive establishes a common framework of measures for the promotion of energy efficiency within the Union in order to ensure the achievement of the Union’s 2020 20 % headline target on energy efficiency and to pave the way for further energy efficiency improvements beyond that date. All EU-28 countries are thus required to use energy more efficiently at all stages of the energy chain – from the transformation of energy and its distribution to its final consumption. The new Directive aims at helping remove barriers and overcome market failures that impede efficiency in the supply and use of energy and provides for the establishment of indicative national energy efficiency targets for 2020.

3. Seven main contents The legal definition and quantification of the EU energy efficiency target as the ''Union's 2020 energy consumption of no more than 1 474 Mtoe primary energy or no more than 1 078 Mtoe of final energy''. With the accession of Croatia the target was revised to "1 483 Mtoe primary energy or no more than 1 086 Mtoe of final energy''. The obligation on each Member State to set an indicative national energy efficiency target in the form they prefer (e.g. primary/final savings, intensity, consumption) and, by 30 April 2013, to notify it together with its 'translation' in terms of an absolute level of primary energy consumption and final energy consumption in 2020. The obligation on Member States to achieve certain amount of final energy savings over the obligation period (01 January 2014 – 31 December 2020) by using energy efficiency obligations schemes or other targeted policy measures to drive energy efficiency improvements in households, industries and transport sectors; Major energy savings for consumers: easy and free-of-charge access to data on real-time and historical energy consumption through more accurate individual metering will now empower consumers to better manage their energy consumption. The obligation for large enterprises to carry out an energy audit at least every four years, with a first energy audit at the latest by 5 December 2015. Incentives for SMEs to undergo energy audits to help them identify the potential for reduced energy consumption. Public sector to lead by example by renovating 3% of buildings owned and occupied by the central governments starting from 01 January 2014 and by including energy efficiency considerations in public procurement – insofar as certain conditions are met (e.g. cost-effectiveness, economic feasibility) – so as to purchase energy efficient buildings, products and services. Efficiency in energy generation: monitoring of efficiency levels of new energy generation capacities, national assessments for co-generation and district heating potential and measures for its uptake to be developed by 31 December 2015, including recovery of waste heat, demand side resources to be encouraged.

4. Procedures Reporting targets All Member States have notified the Commission of their national indicative energy efficiency targets pursuant to Article 3 of the EED in time. All Member States complied with this requirement and the information notified can be found on: http://ec.europa.eu/energy/efficiency/eed/reporting_en.htm Article 7 notifications * Member States had to notify by 5 December 2013 their plans, proposed measures and detailed methodologies for the implementation of Article 7 and Annex V of the EE Directive. The information notified can be found on: http://ec.europa.eu/energy/efficiency/eed/article7_en.htm Article 7 requiresMemberStatestoachieve a cumulative end-use energy savings target by 31st December 2020 of 1.5 per cent of annual energy sales to final energy users relative to the average energy sales over the period 2010-12. National Energy Efficiency Action Plans (NEEAPs) By 30 April 2014 and every three years thereafter Member States will have to submit their National Energy Efficiency Action Plans (NEEAPs) to the Commission.

5. Citizens’ summaries • Citizens' summaries – EU proposals for cutting energy consumptionthroughgreaterefficiency:http://ec.europa.eu/energy/efficiency/eed/eed_en.htm • WHAT'S THE ISSUE ? • Current estimates show the EU is not on track to achieve its target of reducing its estimatedenergy consumption for 2020 by 20%. • As a result, new measures on energy efficiency are now being proposed for implementationthroughout the economy to bring the EU back on track to achieve its objective by 2020. • WHAT EXACTLY WOULD CHANGE? • Public bodies would need to buy energy-efficient buildings, products and services, andrefurbish 3% of their buildings each year to drastically reduce their energy consumption. • Energy utilities would have to encourage end users to cut their energy consumption throughefficiency improvements such as the replacement of old boilers or insulation of their homes. • Industry would be expected to become more aware of energy-saving possibilities, with largecompanies required to undertake energy audits every 3 years. • Consumers would be better able to manage their energy consumption thanks to betterinformation provided on their meters and bills. .

6. Energy transformation would be monitored for efficiency, with the EU proposing measures toimprove performance if necessary, and promoting cogeneration of heat and electricity. National energy regulatory authorities would have to take energy efficiency into accountwhen deciding how and at what costs energy is distributed to end users. Certification schemes would be introduced for providers of energy services to ensure a highleveloftechnicalcompetence. WHO WOULD BENEFIT AND HOW? Consumers would benefit from having better information available to control their energyconsumption and influence their energy bills - The environment would benefit from reduced greenhouse gas emissions.Public bodies could reduce their spending for energy consumption by using more efficientbuildings, products and services.The EU economy would benefit from a more secure energy supply and economic growththrough the creation of new jobs, particularly in building renovation. WHAT HAPPENS NEXT? Once the proposal is adopted by the European Parliament and the Council, EU countries willhave to transpose the rules into national law within one year. Progress made in achieving EU's 20% energy saving target in 2020 will be reviewed in 2014. If it is insufficient, mandatory national energy efficiency targets will be proposed.

7. How is transposition proceeding ? The Coalition for Energy Savings brings together business, professionals, local authorities, trade unions and civil society associations. The Coalition’s purpose is to make the case for a European energy policy that places a much greater, more meaningful emphasis on energy efficiency and savings. Coalition members represent more than 400 associations, 150 companies, 15 million supporters, more than 2 million employees, 1,000 cities and towns in 30 countries in Europe. Brussels, 23 April 2014 – An analysis of the Member States’ plans for achieving 1.5% annual end-use energy savings highlights that most countries not only show low ambition but also fail to demonstrate credibly how the mandatory energy savings target will be reached, exposing them to infringement procedures and possible fines. Almost all countries use the maximum exemptions to lower the 1.5% annual end-use energy savings, which means that the average target in the EU is actually only 0.8%. In addition the majority of plans are weak and increase the risk for the EU to miss its 20% energy savings target for 2020. Only three plans, from Croatia, Denmark and Ireland, out of the 27 published and included in the analysis, provide a credible and meaningful case for how savings targets will be achieved. Twelve plans, including Finland, Germany, Sweden and all central and eastern EU countries except Croatia and Latvia, are either incomplete - and thus not assessable - or of low quality. Common problems are the incorrect calculation of the target, ineligibility of measures, and inclusions of energy savings that would have happened anyway. The good news is the uptake of energy efficiency obligations schemes for the energy sector in a large number of Member States, which should help transform the market for energy efficiency. http://energycoalition.eu/plans-reach-annual-15-energy-savings-fall-short-credibility-0

8. The road ahead 2. Ways, me • The key elements of the 2030 energy and climate policy framework set out, last January 22 by the Commission are: • A binding greenhouse gas reduction target: A centre piece of the EU’s energy and climate policy for 2030, the target of a 40% emissions reduction below the 1990 level would be met through domestic measures alone. The Commission invites the Council and the European Parliament to agree by the end of 2014 that the EU should pledge the 40% reduction in early 2015 as part of the internationalnegotiations on a new global climate agreement due to be concluded in Paris at the end of 2015. • An EU-wide binding renewable energy target: Renewable energy will play a key role in the transition towards a competitive, secure and sustainable energy system. Driven by a more market-oriented approach with enabling conditions for emerging technologies, an EU-wide binding target for renewable energy of at least 27% in 2030 comes with significant benefits in terms of energy trade balances, reliance on indigenous energy sources, jobs and growth. An EU-level target for renewable energy is necessary to drive continued investment in the sector. However, it would not be translated into national targets through EU legislation, thus leaving flexibility for Member States to transform the energy system in a way that is adapted to national preferences and circumstances. • Energy efficiency: Improved energy efficiency will contribute to all objectives of EU energy policy and no transition towards a competitive, secure and sustainable energy system is possible without it. The role of energy efficiency in the 2030 framework will be further considered in a review of the Energy Efficiency Directive due to be concluded in October this year. The Commission will consider the potential need for amendments to the directive once the review has been completed. Member States’ national energy plans will also have to cover energy efficiency. • The Commissionhasinvited the Council and the EuropeanParliamenttoendorseitsapproach and the EU-levelgreenhouse gas and renewablestargets, asagreed at the EuropeanCouncil meeting on 20-21 March 2014 , to take a finaldecision on the frameworkin October 2014 at the latest.The EuropeanCouncilwill take stock of progress on theseissues at its meeting on 26-27 June 2014.

9. Thankyouforyour attention! s.andreis@kyotoclub.org