Introduction
The European Union (EU) is committed to
increased energy efficiency. This is mainly as a result of the
legally binding CO2 emissions reduction targets required by the
Kyoto Protocol, but also it is a means of increasing ‘energy
security’ and reducing dependence on imported energy. Furthermore,
energy efficiency is increasingly considered as an innovative
industry that has the potential to create considerable employment
opportunities throughout the EU.
With buildings accounting for 40% of energy
use in the EU, the potential for increased energy efficiency is
reflected in various legislative ‘Directives’. The ‘Directives’ of
the EU must be transposed by each Member State (eg U.K.) into
national legislation. In the case of the UK, this is mainly through
the Part L Thermal Building Regulations but also in energy
efficiency subsidisation schemes (eg Carbon Emission Reduction
Target operated by the various energy
retailers)
The following EU legislation and European
Commission initiatives drive the trend of increased energy
efficiency in buildings in the UK.
Directive on the Energy Performance of Buildings
The Directive on the Energy Performance of
Buildings (EPBD) is the Directive 2002/91/EC (EPBD, 2003) of the
European Parliament and Council on energy efficiency of buildings.
The Directive came into force on 4th January 2003 and is being
implemented by EU Member States. It is a crucial legislative
component of the energy efficiency activities of the European Union
designed to meet the Kyoto commitment and respond to issues raised
in the Green Paper on energy supply security.
The Directive is designed to promote the
improvement of energy performance of buildings with the following
requirements to be implemented by the Member States:
- the general framework for a methodology of
calculation of the integrated energy performance of buildings
- the application of minimum requirements on
the energy performance of new buildings
- the application of minimum requirements on
the energy performance of large existing buildings that are subject
to major renovation
- energy performance certification of
buildings
- regular inspection of boilers and of
air-conditioning systems in buildings and in addition an assessment
of the heating installation in which the boilers are more than 15
years old
- requirements for experts and inspectors for
the certification of buildings, the drafting of the accompanying
recommendations and the inspection of boilers and air-conditioning
systems (eg Home Information Packs – HIPS)
Within these general principles and
objectives, it is the individual responsibility of each EU Member
State to choose measures that correspond best to its particular
situation.
The Directive is foremost a measure that
concerns a very large number of participants on all levels and with
different impacts and different motivations: designers, housing
associations, architects, providers of building appliances,
installation companies, building experts, owners, tenants,
essentially all energy consumers in the European Union. It has
greatly affected awareness of energy use in buildings and is
intended to lead to substantial increases in investments in energy
efficiency measures within these buildings.
The Energy End-Use Efficiency and Energy Services
Directive
The Energy End-Use Efficiency and Energy
Services Directive was adopted in May 2006. The Directive aims to
enhance the cost-effective improvement of energy end use efficiency
in EU Member States and has a number of key provisions including
the establishment of a national indicative energy saving targets of
9% by the end of 2016, a requirement for the public sector to
fulfil an exemplary role, a requirement for Member States to place
obligations on energy suppliers and distributors to promote energy
efficiency and requirements relating to metering and billing to
allow consumers to make better informed decisions about their
energy use. The provisions of the Directive must be implemented by
Member states by May 2008.
At the European level, a key element of the EU
Energy Policy has been the endorsement of the target, set out in
the Commission’s Energy Efficiency Action Plan, to realise the
potential to save 20% of the EU’s primary energy consumption by
2020 (and 50% by 2050) through improved energy efficiency. The EU
has had a strong focus on energy efficiency in recent years and
Member States are in the process of implementing a range of
directives relating to buildings, energy services and cogeneration
which will all deliver significant energy savings across the EU. In
the UK, the Code for Sustainable Homes is an example.
The Energy End-use Efficiency and Energy
Services Directive required each Member State to submit National
Energy Efficiency Action Plans in 2007 to outline how the
objectives of the Directive will be achieved. The UK Energy
Efficiency Action Plan sets out the package of policies and
measures which have been put in place to deliver improvements in
energy efficiency in the UK in order to contribute to the
achievement of climate and energy policy objectives and to meet the
9% energy saving target by 2016.
The Action Plan is aimed at exceeding the 9%
target, delivering savings by the end of 2016, equivalent to a
saving of 18% over the target period. It contains a package of
measures which will come forward over the period to 2013 covering a
wide range of cost-effective energy efficiency initiatives and
identifies ten key priorities for action:
- making products more energy efficient
- making buildings more energy efficient
- making power generation and distribution more
efficient
- improving the fuel efficiency of
vehicles
- facilitating financing of energy efficiency
investments for small and medium size enterprises
- spurring energy efficiency in new member
states
- coherent use of taxation to promote energy
efficiency
- raising energy efficiency awareness
- improving energy efficiency in built-up
areas
- fostering energy efficiency worldwide
Other European legislation related to energy saving
There is also an extensive array of additional
existing European legislation on energy savings which includes:
- Directive on the promotion of
cogeneration
- Directive for the taxation of energy products
and electricity
- Directives on energy efficiency requirements
for boilers, refrigerators and ballasts for fluorescent
lighting
- Directives for labelling of electric ovens,
air-conditioners and refrigerators and other appliances
- Regulation on Energy Star labelling for
office equipment
- Directive on Eco-design requirements for
energy using products
- Directive on energy end-use efficiency and
energy services
European Union Emission Trading Scheme
The European Union Emission Trading Scheme (EU
ETS) is the largest multi-national, greenhouse gas emissions
trading scheme in the world and is a main pillar of EU climate
policy. Under the EU ETS, large emitters of carbon dioxide within
the EU must monitor and annually report their CO2
emissions, and they are obliged every year to give back an amount
of emission allowances to the government that is equivalent to
their CO2 emissions in that year. The installations may
get the allowances for free from the government, or may purchase
them from others (installations, traders, the government) and are
also entitled to sell on excess allowances.
In order to make sure that real trading
emerges (and that CO2 emissions are reduced), EU
governments must make sure that the total amount of allowances
issued to installations is less than the amount that would have
been emitted under a business-as-usual scenario. The total quantity
to be allocated by each Member State is defined in the Member State
National Allocation Plan (NAP). The scheme allows a regulated
entity to use a carbon credit in the form of a Certified Emission
Reduction (CER) or Emission Reduction Unit (ERU) to comply with its
obligations.