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Szilárd Árvay Ministry of Foreign Affairs of Hungary

T he Role of Danube Strategy in Energy Efficiency T he Importance of Macro-Regional Approach GovernEE Project Final Conference Hódmezővásárhely, 3 rd July, 2013. Szilárd Árvay Ministry of Foreign Affairs of Hungary. Danube Region - Hungary has a central position. Key features :

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Szilárd Árvay Ministry of Foreign Affairs of Hungary

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  1. The Role of Danube Strategy in Energy Efficiency The Importance of Macro-Regional ApproachGovernEE Project Final ConferenceHódmezővásárhely, 3rd July, 2013 Szilárd Árvay Ministry of Foreign Affairs of Hungary

  2. Danube Region - Hungary has a central position Key features: • 9 EU + 5 non-EU countries; • More than 100 million inhabitants; • One-fifth of EU’s total area; • Significantregionaldisparities; Thousand USD Source: World Bank

  3. Hungary has a decisive role in energy cooperation • The EU Strategy for the Danube Region (EUSDR) is a macro-regional strategy of the European Union, endorsed by the European Council in June 2011. • Driving force  the one-size-fits-all approach is not workingin an EU of 27 Member States and 271 regions. • The Strategy was jointly developed by the European Commission, the Danube Region countries and stakeholders in order to jointly address common challenges. • The Strategy seeks to create synergies and coordination between existing policies and initiatives taking place across the Danube Region. • The strategy tacklesthese various topics in a structured way through 4 pillars and 11 priority areas. • Priority Area 2 – Sustainable Energy (PA2) is jointly coordinated by Hungary and the Czech Republic.

  4. Energy efficiency is low in a region with significant growth potential ktoe/bn USD MWh/head Source: IEA Source: IEA Energy intensity (energy consumed compared to GDP produced) is still considerably higher in the Eastern part of the Danube Region than in Western Europe  still much room for improvement.

  5. PA2 to provide backing to achieve EU-targets • Europe 2020 Strategy saving 20% (368 Mtoe) of the Union’s primary energy consumption by 2020 compared to projections made in 2007. • Recent EU data shows that the continent is not on track to reach its 2020 energy efficiency goals Recent estimate of COM: primary energy consumption in 2020 will be reduced by only about 17%. • EU Energy Efficiency Directive the European Commission shall assess progress achieved by 30 June 2014 AND Member States shall establish a long-term strategy for the renovation of buildings,first version to be published by 30 April 2014. • Priority Area 2 intends to provide a useful input to such analyses. 1528Mtoe  17% saving

  6. Importance of public buildings • The cost-effective energy savings potential in the building sector (residential and non-residential) in the EU is estimated to be 65 Mtoe, with a gross investment need of approximately EUR 587 billion for the period 2011-20201. • The total budget of the EU for the 2014-20 period is EUR 960 billion in commitments and EUR 908.4 billion in payments. • Buildings represent 40% of the EU final energy consumption (and 36% of greenhouse gas emissions)2, while publicly owned or occupied buildings represent about 12%3by area of the EU building stock and have a high visibility in public life. • Public spending accounts for 19%4of EU GDP, therefore it is an important driver to market transformation towards more efficient products, buildings and services as well as to trigger behavioural changes in energy consumption. • Public bodies fulfil an exemplary role regarding energy efficiency, furthermore, decreasing consumption could free up public resources for other purposes. City Hall, Hódmezővásárhely www.hodmezovasarhely.hu) 1,2 - DG-Energy - Financial Support for Energy Efficiency in Buildings, Consultation Paper 3 – EPEC - Guidance on Energy Efficiencyin Public Buildings 4 - EU Energy Efficiency Directive

  7. DRS PA2 is bringing knowledge to Hungary • Energy Performance Contracting in the Danube Region (EPCDR) • The State Office Baden-Württemberg, Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ)and Steinbeis-Europa-Zentrum have initiated a concept on the ESCO-financing of energy efficiency projects and contacted DRS PA2 in December 2012 to cooperate in the region. • PA2 involved Hungarian partner ÉMI and invited several other institutions from the Danube Region to participate. • The consortium submitted its application to the Intelligent Energy Europe (IEE) programme in May 2013, final decisions on IEE proposals may be expected at the end of 2013. • ESCO – knowledge transfer from Germany to Hungary • Hosted by the Government of Baden-Württemberg in Stuttgart, at July 4-5, 2013. • Delegation of the Ministry of National Development, ÉMI Non-profit LLC, Hungarian National Asset Management INC., Hungarian Development Bank PLC., MFB Invest PLC., Budapest Danube Contact Point and PA2. • DRS PA2 own initiative on energy-efficiency • Recent EU data shows that the continent is not on track to reach its 2020 energy efficiency goals. • Main barriers to initiating energy efficiency projects in buildings are of market, financial or regulatory in nature. • Latest consultation of the EU regarding energy efficiency in buildings (February 2012) resulted in a lack of feedback from the new member states. • The concept intends to analyse and eliminateobstacles to bank financing in the region. • Concept was unanimously accepted by the Steering Group of PA2 in June 2013.

  8. Danube Transnational Progamme established • Legislative package for the next EU multiannual financial framework for 2014–2020 established a new transnational program for the Danube region – the Danube Transnational Programme. • This will cover the same regions as the EU Strategy for the Danube Region (EUSDR), while the existing South East Europe Programme will be terminated. • The exact structure is currently under preparation - the consultation process to determine the objectives of the new program is underway. • The total budget for 2014-2020 will be approximately EUR 180 million. • The Programme will provide Technical Assistance type of funding to transnational cooperation projects with budgets of about EUR 1 million. EU transnational programmes under the European Territorial Cooperation Objective in 2007-2013

  9. BDCP - smart tool for facilitating DRS projects • Budapest Danube Contact Point – an innovative initiative of the European Investment Bank (EIB) and Hungary to support feasible and financeable projects for the Region. • Starting off: June 2012. Organization • Support for the Danube Strategy on the project level: • free advisory services; • „reality check” for projects; • aiming to improve quality and speed up preparation; • team of international experts. • How to structure? - supporting selected transnational projects with high added value; • How to fund? - helping to assign optimal financing structure; • How to create macro-regional added value? - promoting and supporting macro-regional concepts such as strategic feasibility studies.

  10. For more information please visit:http://danube-region.eu/Thank you for your attention!szilard.arvay@mfa.gov.hu

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