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Key drivers for industrial performance. Herbert Aichinger European Commission DG Environment Directorate G Sustainable development and Integration Unit Industry. Putting energy efficiency into a wider context. How are we doing? What is happening outside the EU?
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Key drivers for industrial performance Herbert Aichinger European Commission DG Environment Directorate G Sustainable development and Integration Unit Industry
Putting energy efficiency into a wider context • How are we doing? • What is happening outside the EU? • What are the internal EU drivers for greater efficiency? • What solutions can the European Commission deliver?
…or at least better than others… Kyoto target 8% cut from 1990 level
…so why should we care about greater energy efficiency? Worrying trends: • Growing dependence on energy imports • Growing demand from developing economies • Remedying the greenhouse effect
Growing dependence EU Energy Outlook to 2020: • Total primary energy consumption +1% pa until 2010 and +0.4% pa until 2020 • Energy intensity 1.5% pa towards 2020 • 2/3 of overall EU energy use imported by 2020 (<1/2 in 1995), gas gaining highest growth • EU gas importers from Russia to face competition from China
Asia’s growing appetite Monthly oil imports 12-month centred moving average, USDm • China's total oil consumption doubled since 1992. Domestic oil production remained almost static, up barely 20% on 1992. • The deficit filled by net imports of about 100 million tonnes - three times the level in 1998. Source: Oxford analytica
The new member states • Average GDP growth in 10 Acceding Countries 1995-2002 = 3,6% per annum, EU15 only 2,2% • Labour productivity growth in 10 Acceding Countries (1995-2000) = 3,6 % p.a., EU15 only 1% • Influx of Cohesion and Structural Funds: €8,9 billion in 2004-2006 (of €21.7 billion to be allocated) • Investment needs in environment field ca €100 billion euro
EPER: basis for benchmarking • Principal emissions (50 pollutants) and IPPC sources responsible • Published every 3 years: first time February 2004 • http://www.eper.cec.eu.int
Environmental TechnologiesAction Program: boosting competitiveness and environmental protection • Increase and focus the effort in R&D programmes • Technology platforms (Hydrogen, Water, Solar) • Networks for technology testing • Performance targets for key products and processes • Financial instruments with appropriate risk sharing • Review of State aid guidelines • Review of Environmentally harmful subsidies • Green public procurement • Rising business and consumer awareness • Provide targeted training • Responsible investments in developing countries
Voluntary Measures: EMAS • Energy efficiency guidelines for small and medium sized enterprises: • Heating, lighting, ventilation, electric motors • Goal definition, data collection, input-output analysis, sampling of indicators and definition of measures • To be available by the end of 2004 6
IPPC BREF on energy efficiency • Considerable potential (all in all 12-14%) for cost-effective energy savings in IPPC plants • IMPEL study (May 2000): there is little experience so far with energy efficiency provisions in integrated permits • The Finnish Environment Institute has proposed a new IMPEL study • The work on BREF will start 2005
Getting demand right – Green public procurement • Buying green! – Handbook on environmental public procurement • Energy efficiency as environmental factor to be put in technical specifications • Products and services • http://europa.eu.int/comm/environment/gpp/guidelines.htm#handbook
Concluding remarks • Energy demand will rise – internally and externally • Increasing energy efficiency might be crucial for industrial competitiveness • Rise in energy efficiency will depend on price signals and technological breakthrough • The key guidance document will be BREF on energy efficiency • Need to integrate energy-efficiency in other sectors (households, transport)
