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Danes ring the alarm over EU energy savings bill

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Published 27 April 2012

Denmark, the country currently holding the rotating EU Presidency, has hit out at EU countries for defanging the proposed Energy Efficiency Directive, and called for ring-fencing a key article imposing an annual 1.5% energy savings target on power companies.

“It’s true that the member states have been more eager to water down the [energy efficiency] rates than support them,” Martin Lidegaard, the Danish climate minister told EurActiv on the fringes of the London clean energy summit on Wednesday (25 April).

“Some of the articles in the directive – especially Article 6 – have been too watered down and, if we should have a chance to reach agreement with the European Parliament, we have to increase the ambition level of that article again,” he said. 

The Danish presidency is overseeing a ‘trialogue’ process of negotiations between the EU's member states, the Commission and Parliament in a bid to reach agreement before its presidency comes to an end on 1 July.

EurActiv understands that the Danish presidency will be bringing forward a new text on the contentious article in negotiations on 4 May involving EU states' permanent missions to Brussels.

Brussels officials have long complained of ‘double-speak’ by EU states whose leaders wax lyrical on energy efficiency, while their civil servants gut measures that could advance it.

But the percolation of such language up the EU food chain suggests mounting frustration at the slow pace of progress in ongoing talks.

The Danish presidency thought that the continent's energy ministers had reached a consensus to definitively raise the level of efficiency ambitions at an informal council in Denmark on 19 April, EurActiv has learned.

But a week later, in a second round of negotiations in Brussels, “hardly any progress was made,” according to one EU source, who blamed inflexibility from the European Parliament.

MEPs' firm line

The European Parliament has taken a firm line on energy savings, proposing 18 compromise amendments to try and halt what it sees as back-sliding by EU governments over the directive’s cornerstones.

One of these, Article 6, would oblige power utilities to cut their year-on-year energy sales under an Energy End Use Savings Scheme.

“It is the main engine of the directive,” an EU diplomat said. “It is where you get most of the efficiency savings from, so its one of the more difficult issues.”

But there are others, including a 3% annual renovation target for public buildings – 12% of Europe’s entire housing stock - which environmentalists say has been whittled down and riddled with opt-outs and loopholes.

Lidegaard said that flexibility from both the Council and Parliament would be needed to cut a deal. “It takes two to tango and we need both parties to move,” he said.

A third trialogue is scheduled for 8 May, and three more will follow in the period to June 13.

2030 milestones

After a Polish EU presidency that horrified many environmentalists, hopes had been high that climate policy breakthroughs might be possible on the Danish watch.

But Lidegaard moved quickly to dampen suggestions that other unresolved issues such as the nature and number of 2030 milestone targets could be resolved before July.

“I think we should be fair and say that we won’t be able to close that file during the Danish presidency,” he said.

“But I hope that we will be able to make some Council conclusions which will stress that we should build on energy efficiency, renewables and infrastructure.”

Energy efficiency is the only one of the EU’s climate targets for 2020 that is non-binding, and the only one that Brussels currently expects to miss.

Recent projections suggest that Europe is only on track for around 9-11% energy savings.

Next steps: 
  • 4 May: EU ambassadors (COREPER) meeting on energy efficiency directive at which new Danish text on Article 6 is expected to be proposed.
  • 8 May: Next trialogue meeting on energy efficiency directive.
  • 13 June: Last scheduled trialogue meeting on the energy efficiency directive.
  • 1 July: Danish presidency comes to an end.
  • 2014: EU pledged to review progress towards energy efficiency 2020 targets and consider binding measures if it is too slow.
  • 2020: Deadline for EU states to meet voluntary obligation to reduce energy output by 20%, measured against 2005 levels.
Arthur Neslen

COMMENTS

  • There is an error in this text.
    About half way down it says:
    "including a 3% annual renovation target for public buildings – 12% of Europe’s entire housing stock".
    What whould be said is that public buildings (when you include social housing) make up about 12% of the entire EU building stock. This distinction is important as the negotiations underway are seeking to reduce the number of buildings to which the 3% target relates and the Member States are fighting for it to be for "central government" buildings only. Such a reduction will seriously weaken the catalytic effect of this article for the renovation market as, for example, only about 35 buildings would be covered in Germany of the "central government" option remains.

    By :
    Adrian M Joyce
    - Posted on :
    27/04/2012
  • I have been following the EE Directive for a while. This is how it looks from the cheap seats. EU Member states are not interested in energy efficiency if it applies to them (hence the resistance to renovating public buildings). Put another way, member states are happy to piss energy out of inefficient public buildings because it is Euro citizens’ taxes that pay for that wasted energy. They – the politicians in member states do not give a stuff about energy efficiency. That is crystal clear from the state of current negotiations.

    In a different Euractive article I notice that Schultz in the EP was expressing worry about the continued existence of the EU – the usual comments by assorted doorknobs duly followed. However, the self same doorknobs are dead silent on this on-going scandal – to whit – elected governments across Europe point blank refusing to implement sensible energy efficiency measures that would impact on taxes i.e. member states would much rather waste taxes than do something about it. But we will never hear anything about that – will we?

    By :
    Mike Parr
    - Posted on :
    27/04/2012
  • Doorknobs have voting rights to - it's not just Guardian reader types who can have the rosy glow of feeling totally right and above everyone else. The elitist left as typified by MP are just as "tory vermin" as the tory vermin.

    By :
    Just So
    - Posted on :
    30/04/2012
Martin Lidegaard, the Danish climate minister
Background: 

Europe aims to reduce its primary energy use by 20% by 2020, a target which is not legally binding. The Energy Efficiency Directive was proposed by the European Commission in mid-2011 as part of its effort to reach this objective.

The 20% target will not be reached, unless the EU more than doubles its energy savings efforts. In its draft directive, the European Commission proposed individual measures for each of the sectors that could play a role in reducing energy consumption.

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