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MEPs support binding targets for energy savings

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Published 09 June 2005, updated 28 May 2012

A proposal to make increased energy savings in households and in the public sector has found support in the Parliament. The directive has the potential to cut CO2 emissions dramatically.

The Parliament on 7 June backed mandatory targets for savings in energy sold and distributed to final consumers, whether public or private. 

The draft covers electricity, heat and fuel - including transport fuel - in an equal manner so that imbalances are not created between sectors in a European energy market gradually opening up to competition. It targets both the demand and the supply side of the energy market by creating incentives for reduction.

MEPs have voted for more ambitious targets than those initially planned by the Commission, proposing that a total of 11.5% savings be achieved between 2006 and 2015. The Commission had proposed an overall annual average target of 1% only - a 9% overall cut by 2015. 

Following the Parliament's amendments to the draft, the savings MEPs back would be made in three stages:

  • 2006-2009: 3% (annual average of 1%)
  • 2009-2012: 4% (annual average of 1.3%)
  • 2012-2015: 4.5% (annual average of 1.5%)

The targets voted on by the Parliament are slightly more demanding for the public sector than for ordinary consumers:

  • 2006-2009: 4.5%
  • 2009-2012: 5.5%
  • 2012-2015: 6%

MEPs also recommended that energy savings be taken into consideration in the assessment of public tenders as a way to encourage companies to propose more energy-efficient services and products.

Positions: 

At a meeting in November 2004, EU energy ministers stated their preference for non-binding indicative national targets only.

The European Lamp Companies Federation (ELC) welcomed the vote as "a significant milestone" to encourage the public sector in focusing more on energy savings. Responding to the vote, Gerald Strickland, Secretary General of the ELC said: "Lighting can account for a large part of the total central, regional and local government energy consumption and cost. The potential for energy saving in these sectors is therefore significant and necessary in the public interest." ELC says a A 500W street lamp, if lit for seven hours a day (during the hours of darkness), can single-handedly produce up to two tonnes of CO2 a year.

CECED, the association representing European domestic equipment manufacturers such as washing machines and refrigerators, praised the European Parliament for defending binding energy saving targets in the plenary. It sees the proposed directive as a good opportunity for consumers to replace old energy-thirsty products with eco-friendly ones and as a way to increase market penetration. 

Green NGO WWF criticised the Parliament for lacking ambition on the energy savings targets for both final customers and the public sector. "Only [annual] saving targets of at least 2.5% for the private sector and 3% for the public sector could encourage member states and enterprises to take action and have a real impact in fighting climate change and promoting industry's competitiveness," said Mariangiola Fabbri, energy efficiency officer at the WWF's European Policy Office. The WWF called on the EU Energy Council of 27 June to "accept and increase binding targets".

Next steps: 
  • 15 June: Commission to launch a general consultation (Green Paper) on energy efficiency
  • 27-28 June: EU Transport, Telecoms and Energy Council meeting to vote on the Parliament's first reading

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