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Parliament watches as ministers debate EU energy savings bill

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Published 14 February 2012, updated 10 June 2013

The EU’s draft energy efficiency directive, set to underpin the bloc's efforts to cut 20% of its energy consumption by the end of the decade, is being debated for the first time at the ministerial level in Brussels today, with talks focusing on giving the legislation more flexibility.

The draft directive is on the agenda of today’s Energy Council, with member states’ positions already very clear.

A majority of EU countries refuse a binding energy savings target, but will accept binding "measures" as long as their implementation is “flexible”.

Martin Lidegaard, the Danish Minister for Climate, Energy and Building who will be chairing the ministerial talks in Brussels, said: “No one wants to move from this. There are no suggestions in the Council that we’ll make the target binding. And we won’t change it either – it was the Council that set it, after all”.

But sources in the European Parliament claim that the battle over targets is far from being lost as the assembly has equal say on the draft directive.

Claude Turmes, a Green MEP from Luxembourg who is seeing the draft directive through Parliament, told EurActiv he is going to push for both binding targets and binding measures, and will look at ways of introducing specific instruments to finance energy efficiency.

Parliament to fast-track bill

For this, Turmes needs support from all political groups. His intention is to start negotiations on the bill with the member states in the Council immediately after the draft is voted in the Parliament's energy and transport committee (ITRE) on 28 February.

This would be a fast-track procedure aimed at reaching an agreement during the current Danish presidency of the EU, which ends on 1 July. The next EU presidency, Cyprus, has indeed no intention of making the directive a priority and this might postpone negotiations until the Irish presidency in 2013, EU sources told EurActiv.

A fast-track procedure would mean that the European Parliament does not need to hold a plenary vote before negotiations between Parliament, the Danish presidency and member states can start.

Member states have conflicting positions on the current text of the bill, a Danish presidency source said, adding that “we must introduce more flexibility” to meet their needs.

Introducing such flexibility would require strong supervision from both the EU and the national side to implement the directive. Member states would for instance have to document whether there are more cost-efficient ways of increasing energy efficiency at national level if they wish to opt out of the measures written in the directive.

“This is why we want to start negotiations as soon as the ITRE vote is done,” the Danish source said.

EPP appears divided

The stakes are high at the national level as economic challenges make environmental measures more difficult to pass. Some MEPs tend to adopt the position of their country on the issue, an EU source told EurActiv, and “some are just against it,” he said.

The assembly's largest political faction, the European People’s Party (EPP), is the most divided on the measures and targets laid down in the proposed directive. Their MEPs are most likely to follow the Council's common position on the bill.

According to the same source, there is a "worrying enough number" of MEPs from the EPP group who are expressing support for binding targets, but only in exchange for deleting an obligation on energy companies to make 1.5% national savings on an annual basis.

This would create virtually no negotiation basis with the Council, some legislators fear. Activists close to the legislative process on the bill describe the attitude of some MEPs as “procedural tricks and tactics they have used to try and delay the vote in ITRE and the start of the negotiations with the Council”.

Still, the Socialists, Liberals and Greens in Parliament support an ambitious approach on the bill, with a majority likely to emerge on this position.

Flexibility, subsidiarity and proportionality are the main reasons invoked by those MEPs who are still divided on the issue, according to sources in the Danish presidency.

Positions: 

Discussions on the directive are set to intensify in the coming months and should focus around the issue of financing energy efficiency measures.

Speaking on Monday (13 February), Monica Frassoni, president of the European Alliance to Save Energy (EU-ASE), said: “This Directive has real potential to change business-as-usual by giving the energy efficiency market significantly more regulatory certainty, something it has lacked until now which is largely why Europe is behind on its 20% energy savings targets.  However this opportunity is at risk as EU governments continue to water-down the only binding elements of the proposal for fear over the short-term costs of implementing the measures”.

Paola Rusconi, an official dealing with energy credits for the Intesa Sanpaolo financial group, said: “Uncertainty is the antithesis of bankability. We need certainty and commitment in rules”.

In view of the latest Council discussions, the Coalition for Energy Savings is denouncing the Council's work as making things worse than they are under existing law, and calling upon Energy ministers to honour earlier commitments. This strong accusation is based on the Coalition's assessment of the December 2011 and February 2012 Presidency suggested text for the Directive.  

Stefan Scheuer, Secretary General of the Coalition for Energy Savings said: “In the context of looming gas cuts and the Iranian oil crisis uncomfortably reminding Europe of its increasing dependence on costly energy import, it seems incomprehensible that Member States are undermining the very policy that would reduce that dependence and put money back into citizens’ pockets.”

“Targets and measures are complementary. Targets will provide political focus and certainty for planners and investors. And if measures set out in the Directive stimulate the right financing and delivery mechanisms, then targets will be reachable and Member States will have nothing to fear,” said Erica Hope, of Climate Action Network (CAN) Europe said.

BEUC, the European Consumers' Organisation, said: “Now that discussions on the energy efficiency directive are going into the finishing straight, we urge legislators to shift their focus to the energy consumer. Achieving Europe’s energy efficiency targets will largely depend on helping European consumers reduce their consumption. For this they need specific tools and support such as accurate bills, easily accessible and understandable information on their consumption and personalised advice on how to achieve real energy savings.”

“There is a huge potential to reduce energy consumption in the buildings sector alone, allowing citizens and businesses to regain control over their energy bills,” said Agathe Ernoult, of the European Environmental Bureau. “Energy savings in buildings are a typical case of sound financial investment that can generate guaranteed savings and thereby increase the value and comfort of our homes and workplaces, while creating large numbers of local jobs and stimulating economic activity when Europe needs it the most".

Next steps: 
  • 14 Feb. 2012: Energy Council to debate draft Energy Efficiency Directive for the first time
  • 28 Feb. 2012: Parliament committee on Industry, Research and Energy (ITRE) votes on the Energy Efficiency Directive.
  • 28 Mar. 2012: Parliament expected to hold plenary vote on the directive
  • 1 July 2012: Republic of Cyprus takes over EU Presidency
Ana-Maria Tolbaru
Background: 

Europe aims to reduce its primary energy use by 20% in 2020 by applying cost-effective energy savings measures.

The current Energy Efficiency Directive was proposed by the Commission in mid-2011 to update the previous Energy Efficiency Action Plan, which had not been designed to fashion full energy savings. 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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