Energy Efficiency - the solution to high energy prices

The leading European associations in the energy efficiency sector today called on EU Heads of State and Government to strengthen the energy efficiency agenda in Brussels and adopt a mandatory energy efficiency target for Europe in order to limit the impact of high energy prices.

While global energy prices are not susceptible to harmonised European action, cutting overall costs by making better use of existing supplies is. The proponents argue that Europe should turn the energy price crunch into an economic opportunity, creating economic activity and competitiveness through energy efficiency investment, thereby reducing energy costs for consumers and creating jobs.

There is an enormous untapped potential in existing, cost-effective and energy efficient technologies. The European Commission’s 2006 Action Plan for Energy Efficiency estimated that the “direct cost of our inability to use energy efficiently amounts to more than 100 billion euros annually by 2020”. This calculation was based on 390 Mtoe at USD 48/barrel net of taxes. The price of a barrel of oil has more than doubled since then, significantly increasing the savings potential of energy efficiency measures.

EU Member States are therefore called on to:

1. Adopt a mandatory measurable savings target for energy efficiency of 20% by 2020 to signal the importance of energy efficiency measures for security of energy supply, economic growth and environmental protection;
2. Establish a coordinated investment and incentives initiative for improving energy efficiency across all sectors;
3. Show strong commitment to full and timely implementation of existing legislation on energy efficiency.

When EU Heads of State and Government meet later this week to discuss, inter alia, rising energy prices, achieving much higher levels of energy efficiency in all relevant sectors must lie at the heart of this discussion. Industry sectors have existing products and services available and have already made significant investments to improve their offering for energy efficiency in buildings, transformation, appliances, supply and materials, for example. It is now time for an equal level of ambition from Member States.