EFBWW perspectives on Roadmap 2050 and Energy Efficiency Plan 2011

1. EFBWW perspectives on Roadmap 2050 and Energy EfficiencyPlan 2011 Aleksi Kuusisto, international officer, EFBWW / Woodworkers’ union, Finland

2. Recent Commission analysis provides good starting point for policy formulation • Roadmap for moving to a low carbon economy in 2050 • Analysis on how to cost-effectively achieve 80% cuts in domestic EU GHG emissions by 2050 • Cost efficient path: 25% by 2020, 40% by 2030 and 60% by 2040 • 90% cuts should be targeted in the building sector by 2050 • Energy efficiency plan 2011 • Analysis on how to bring the EU back on track to meet its energy efficiency targets • Huge scope for reducing energy use in the building sector • Buildings take up 40% of all energy used in the EU • Energy refurbishments of buildings of primary importance • Refurbishment rate thus far grossly inadequate • Despite future savings in energy bills being two times higher than the cost of renovations • Need for a better working market in energy performance contracting • Binding refurbishment rate for public buildings EFBWW perspectives on Roadmap 2050 and Energy EfficiencyPlan 2011

3. Need for more ambitious GHG reduction targets • 20% or 25% target for 2020 will not drive the economy towards green growth • Price of carbon in ETS set to remain far too low to produce the necessary incentives • Ambition level on non-ETS sectors very modest to start with • The possibilities provided by the wood products sector remain completely overlooked • Non-binding targets are not producing the goods • Need for binding energy efficiency targets for EU member states • Need to regulate energy efficiency of existing buildings in the Energy Performance of Buildings Directive • A 30% target would be conducive to a deal at COP17 • More ambitious targets would necessitate new carbon leakage policies • Border adjustment mechanism • compulsory reporting of carbon footprint information in sensitive product groups • Forthcoming ISO 14067 standard on carbon footprint of products • Would guide demand towards green products and make carbon taxation feasible EFBWW perspectives on Roadmap 2050 and Energy EfficiencyPlan 2011

4. Policy framework for achieving large scale energy refurbishments • Need for strong promotion of energy performance contracting • Of key importance in removing the obstacle of upfront costs for building owners • Income for the service provider, Energy Service Company (ESCO), from future energy savings. • ESCO’s to provide one stop shop for renovation services and financing • market remains undeveloped • Need to provide member states with guidelines on how to promote ESCOs • Need for a European regulatory framework • Public ESCOs needed to fill the gaps in the market and to renovate low income and social housing • Secure funding sources for ESCO’s • Public funding currently in jeopardy due to austerity measures • Private sector lending conditions more stringent than before crisis • More Cohesion Policy program funds for energy refurbishments • Mobilisation of large scale private capital via EU project bonds (Europe 2020 Project Bond Initiative 28/2/2011) • Leading role for European Investment Bank • EU funding mechanisms to be used to achieve fiscal and social policy aims • Targeted funding for areas with high unemployment – more jobs and growth • Preferential arrangements for low-income and social housing – reduced energy bills for those on low incomes • Major training and educational program for the entire construction value chain • Commission together with social partners • Opportunity to increase not only the quantity but also the quality of construction employment EFBWW perspectives on Roadmap 2050 and Energy EfficiencyPlan 2011

5. Potential of the wood sector remains overlooked • Wood products: • Store carbon for the duration of their lifespan • Lead to avoided emissions when replacing carbon-intensive products • Are renewable and carbon neutral when combined with sustainable forest management EFBWW perspectives on Roadmap 2050 and Energy EfficiencyPlan 2011

6. Using more wood to tackle climate change • Following advice of IPCC, more wood products with a long lifespan should be used • Benefits of wood construction particularly important • Consumption of wood per capita very low in many member states • Only 64% of annual growth of European forests is harvested • What matters is the combination of CO2 stored in wood products and in forests • Inclusion of LULUCF emissions in EU greenhouse gas commitments so that wood products’ CO2 taken into account • No mention of wood products in key documents such as Roadmap 2050 • Currently the EU is only promoting the use of wood as a renewable energy source • The effect: higher raw material prices and shortages in wood industry • Energy use of wood as an alternative to the production of wood products with a long lifespan leads to: • net CO2 emissions • loss of employment • Needed: comprehensive EU strategy for tackling climate change by using wood • France and Sweden as exemplary cases EFBWW perspectives on Roadmap 2050 and Energy EfficiencyPlan 2011