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EU states reject binding energy efficiency targets

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Published 30 June 2005, updated 05 October 2010

Just days after the Commission suggested ambitious EU energy savings plans, national governments scrapped every binding element of a related earlier proposal aimed at increasing energy savings on the retail side.

Binding targets to increase energy savings when gas, electricity or petrol is sold to customers at retail points were entirely stripped out of a Commission proposal on 28 June as the bill was submitted for approval to national energy ministers from the EU.

The vote comes as a serious blow to the Commission just days after it put forward an ambitious energy efficiency proposal that it claimed could save Europe some 20% energy consumption by 2020 (EurActiv, 23 June 2005).

Earlier this month, MEPs had backed the proposal and even tightened up the Commission draft by setting higher energy saving targets for both the public sector and for private users (EurActiv, 7 June 2005). 

Under the draft voted on by Parliament, energy consumption by private and public end users was to be cut by an overall 11.5% between 2006 and 2015. The Commission had initially proposed a 9% overall cut by 2015 (1% per year on average).

But according to a press statement from the Luxembourg Presidency, the ministers rejected the proposals and replaced them with indicative targets only. In some way though, member states would be "obliged to take measures" to achieve a 6% reduction in energy consumption over a six-year period starting at an undisclosed date. 

Moreover, ministers also scrapped the Commission's suggestion to set higher targets for the public sector - at 1.5% per year - and replaced it with an assertion that governments ensure the public sector plays an exemplary role in fulfilling the directive's requirements.

Positions: 

A leaked version of the political agreement - seen by EurActiv - states: "Even though Member States commit themselves to make an effort to achieve the target, the national savings target is indicative in nature and entails no legally enforceable obligation for Member States to achieve the target figure of 6%."

Luxembourg's Economy Minister Jeannot Krecké, whose country holds down the rotating EU presidency until the end of June, could only partly hide his disappointment: "All of us have commitments in the context of Kyoto and in terms of supply safety and improvements in competitiveness. All of us must make a firm commitment in the same direction." 

The Luxembourg Presidency has stressed the Commission's insistence on maintaining binding targets, a position supported by the Parliament.

Mahi Sideridou, Climate and Energy Policy Director at Greenpeace European Unit told EurActiv she was "shocked that [energy ministers] have re-written the whole directive and taken out its most significant provisions".  "Are there no energy ministers who can see the real potential for energy efficiency and who are willing to fight in order to realise it?"

Next steps: 
  • The ministerial agreement is to be formalised at a later Council meeting and transmitted to the Parliament (co-legislator on the matter) for a second reading
  • If no agreement can be found between Parliament and Council, the matter will be referred as a last resort to a special conciliation committee
Background: 

The proposed directive for energy end-use efficiency and energy services was tabled as part of the Commission's energy package in December 2003. 

It is aimed at increasing savings when energy is sold to end-users - whether private households or the public sector. Energy services covered would range from electricity supply, to fuel heating to the petrol sold at the station. The draft is part of EU initiatives to reduce CO2 emissions under the Kyoto Protocol on climate change. 

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