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MEPs give green light to negotiate energy efficiency bill

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Published 28 February 2012, updated 10 June 2013

European Parliament political groups put aside their differences on the Energy Efficiency Directive and decided today (28 February) to jump start negotiations with the EU Council before the vote in the plenary session next month. 

Despite previous disagreements over the directive, the Industry, Research and Energy Committee voted 31-22 to start inter-institutional negotiations as soon as possible.

After what Claude Turmes, the Luxembourg MEP who crafted the directive, called "six months of intensive, evening and even weekend work", the bill is to face tough talks with member states, which are asking for more flexibility and a number of country-specific considerations.

“Today's vote provides a strong mandate for the European Parliament in its negotiations with the Council on the final legislation," Turmes said. "We have lost enough time: it is time for EU governments to start delivering real energy savings and a robust energy efficiency directive will be crucial to this end."

Accelerating negotiations after the vote gives the Danish presidency the chance to save some time and reach an agreement on the directive, even if not a formal signature, by the end of its mandate on 1 July – a priority in its agenda.

A large part of the compromise amendments to the bill were adopted by MEPs, providing the text that will now enter negotiations with the Council. 

To succeed, the directive will have to satisfy national governments that are less supportive of binding efficiency legislation.

“The key to this directive has to be flexibility. Measures should encourage and enable genuine savings to be made, rather than committing national governments to arbitrary paper targets and reams of extra bureaucracy,” said British MEP Vicky Ford, chief negotiator on the energy efficiency bill for the European Conservatives and Reformist Group.

Negotiations to come

The directive agreed by MEPs will not change much on its top lines, Danish MEP Bendt Bendtsen (European People's Party) said. “All the groups agree not to touch the compromises.”

The vote sends a strong message to the Council, he said. “We now have a firm position which will not change. Both the left and the right has given up some ground and loosened their initial positions a bit, as everyone sees the necessity of reaching an agreement.”

Energy Commissioner Günther Oettinger did not comment on the talks ahead, but said that the committee vote paves the way for the EU’s 2020 goals. "This is an important vote for our proposal, as the Committee backs our choice of main drivers for saving energy. With the text voted today, we would be able to achieve the main goal of the directive - namely to save 20% of energy in 2020," Oettinger said.

The committee voted to make an energy saving target of 20% by 2020 binding. In exchange, member states would have flexibility over adopting a number of binding measures to implement the overall target.

EU countries will have to set out a roadmap for achieving energy savings of 80% in the buildings sector by 2050, with a binding deep renovation rate of 2.5% per year for public buildings, Turmes said.

Amonsgst the other measures adopted by the committee were requirements for energy companies to deliver 1.5% in annual energy savings, binding financial instruments and better consumer information.

Positions: 

Social-Democrat MEP Pavel Poc, who has been closely involved in the negotiations, said: "Despite all the discussions, communitarian attitude has won the day. Now we have to explain the Directive to other MEPs who haven't been involved in the process yet and persuade Member states that it is good for them to have lower energy bills and that they need to adopt the binding targets as well."

Brook Riley, energy campaigner for Friends of the Earth Europe, said: “MEPs could have gone further but this is a good result. The Parliament knows the benefits of energy savings, such as savings in fuel bills and CO2 emission cuts, won’t happen without legally binding targets. MEPs now have the negotiating mandate to make a good deal with the European Council.”

Monica Frassoni, president of the European Alliance to Save Energy, said: "MEPs have taken a positive step to support the development of a European energy efficiency market today.  This Directive now has the potential to deliver rapid results to help create jobs and put our economies back on a sustainable track, member state governments must not put this opportunity at risk in the next stage of the decision making process by lowering the ambition of this law."

“Today’s result is not perfect, but it gives MEPs a strong mandate for negotiating with national governments,” said Erica Hope, of Climate Action Network Europe. “Strong measures and targets will help deliver the needed savings to people and businesses.”

“This directive is a key opportunity to depart from the current situation in which utility companies have a structural interest in selling ever more energy,” said Agathe Ernoult, the European Environmental Bureau's energy policy officer. “Changing this business model is the only way to address the increasing financial and environmental costs of producing energy. We urge decision makers to live up to the challenge,” Ernoult said.

Commenting on the vote, European association of local authorities Energy Cities said: “The potential for energy efficiency is huge. So the question is: do we want our money for energy resources to be spent outside the EU, or do we want it spent locally, on energy saving and efficiency measures? Local authorities are ready to lead by example, by committing themselves to going even beyond the 3x20 target hence helping Europe out of the crisis. Will the EU and all member states show the same desire, willingness and enthusiasm to fight this battle with the necessary intensity?”

Jason Anderson, WWF’s head of European Climate and Energy Policy, said: “The Energy Efficiency Directive is key to delivering Europe’s energy security and a cost-effective way out of the climate crisis. The European Parliament must continue strengthening the proposed legislation by supporting a binding 20% energy savings target and making sure that energy bills in existing buildings are cut substantially."

Monique Goyens, director general of European consumer organisation BEUC said: “MEPs have clearly understood that it will require the engagement of consumers to reduce Europe’s energy consumption. Changing consumer behaviour is not as simple as switching off the light. If Parliament’s position will make it to the finish line, consumers can expect their governments to draw up plans to make energy bills more informative, offer fiscal incentives to save energy or to set up one single contact point for energy advice. The ball is now in the Council’s court and we urge them to confirm the Parliament’s rules.”

Speaking after the Parliament’s vote, Stefan Scheuer, secretary-general of the Coalition for Energy Savings, said: “This is an unambiguous message from the Parliament. The Council must now follow this lead. Doing so would allow Europe to move to a new energy model based on energy savings and to use the €400 billion a year currently spent on fossil fuel imports to invest in EU’s economic and financial recovery."

German draftsman of the opinion given by the Environment Committee on the energy efficiency bill, Peter Liese, said: "Unfortunately, discussion in council tends to another direction. Most of the member states want to weaken the Commission proposal. That will definitely lead to conflict. Regarding the instruments we are flexible, but member states should not only say what they do not want to have".

Commenting on the measures agreed in the bill for providing better consumer information, John Harris, of smart metering company Landis+Gyr said: “Smart metering is essential for energy efficiency gains, but we will only be able to get the full energy savings potential if our system is equipped with the correct functionality and the appropriate services. We need a clear definition of smart meters so we are able to deploy technology capable of contributing to the EU’s climate and energy goals.”

Next steps: 
  • 28 March: Parliament expected to hold plenary vote on the directive.
  • 19-20 April: The next Council discussion at minister level takes place in Jutland (Denmark), during the informal Council for Transport and Energy.
  • 1 July: Cyprus takes over EU presidency.
Ana-Maria Tolbaru

COMMENTS

  • Climate Alliance,the European network of local authorities committed to the protection of the world's climate, also welcomes the success of Tuesday’s vote as this Directive is seen as a real attempt to set Europe in the course of achieving the 20% energy efficiency target. Furthermore,the European Energy Efficiency Directive (EED) should become a central part of the current EU energy and climate policy. However in order to achieve the objective of this ambitious Directive, much attention needs to be placed on developing and introducing innovative financing models, this is what Climate Alliance expects from the discussions which will intensify in the next months.
    You can find Climate Alliance position paper on EED here:http://www.climatealliance.org/fileadmin/inhalte/dokumente/2011/Climate_Alliance_position_on_the_EED.pdf

    By :
    Monica Sirbu
    - Posted on :
    02/03/2012
  • “The European Parliaments draft report has added a clear message on the need for financing and also stressed the need for building renovation strategies to be based on a long term vision which is the right direction, however experience* shows that the balance between binding measures such as the 2.5 % renovation rate and the financial and regulatory enabling measures needs refinement", says Vit Vanicek, CECODHAS Housing Europe President.
    “What do successful schemes have in common? - They are based on incentives and regulations, on consensus and fairness with a particular focus on the inhabitants, tenants, and those at risk of fuel poverty. Schemes which penalize the most vulnerable will simply not take off. A vital ingredient for success is a mix of national and EU long-term financial support.” confirms Sven Bergenstrahle, IUT President.

    You can find the CECODHAS position paper on
    http://www.housingeurope.eu/news/2280

    By :
    Caterina Verde
    - Posted on :
    02/03/2012
Background: 

Europe aims to reduce its primary energy use by 20% in 2020, a target which is not legally binding.

The current Energy Efficiency Directive was proposed by the 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 from the current projection of 9%. In its directive, the European Commission proposes individual measures for each of the sectors that could play a role in reducing energy consumption.

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