Faure Ch IX.62: Regulating energy efficiency in the
European Union
By A. van Beek
Abstract
Energy efficiency has been a key policy area since the 1970s energy crises. Although initially it
focused on the need for energy savings as a tool for securing energy supply, it is now also
recognised as a means of reducing greenhouse gas emissions and mitigating the impact of
climate change, thus contributing to a more sustainable society. This chapter introduces the
concept and the relevance of energy efficiency within the European Union (EU), as well as its
interconnected policy instruments, and provides an overview of the EU’s legal framework that
seeks to substantially increase energy efficiency levels in the different sectors of society. The
chapter also explains the main legal instruments established for that purpose, highlighting the
most prominent existing challenges.
1. Introduction
Energy efficiency affects most parts of society; transport, building, manufacturing,
agricultural and energy sectors.
Oil crisis 1972 à MSs wanted to reduce energy consumption à increased use of renewables
1991 Specific Actions for Vigorous Energy Efficiency (SAVE) Programme = first substantive
programme promoting energy efficiency in the EU.
o Target: 20% increase in energy efficiency by 1995.
o Led to the adoption of several directives.
o SAVE programme also focussed on climate change, environmental protection, and
the need to establish an internal energy market were all key focuses.
2. The concept of energy efficiency
2.1 Terminology
Energy saving & rational use of energy (gained popularity after oil crisis); mainly referred to
the need to limit oil and/or natural gas consumption.
Energy efficiency; the ratio of output of performance, service, goods or energy, to input of
energy. à goal: use less energy whilst maintaining an equivalent level of economic activity or
service provision.
o Energy efficiency provides for a reduction of input whilst keeping the same level of
services
Energy savings; an amount of saved energy determined by measuring and/or estimating
consumption before and after implementation of an energy efficiency improvement
measure, whilst ensuring normalisation for external conditions that affect energy
consumption.
o Can be achieved by increasing energy efficiency, behavioural changes, or a decrease
in economic activities.
2.2 Interconnected policies
The concept of energy efficiency relates to three interconnected EU policies; energy trilemma:
1. Security of supply
o Increased energy efficiency; making better use of available (renewable) energy
resources and reducing dependency on imports of fossil fuels à security of supply.
2. Environment and climate change
o Increased use of renewable energy resources results in lower carbon dioxide (CO2 )
emissions, thus mitigating climate change à environment benefits.
3. The internal market
European Union
By A. van Beek
Abstract
Energy efficiency has been a key policy area since the 1970s energy crises. Although initially it
focused on the need for energy savings as a tool for securing energy supply, it is now also
recognised as a means of reducing greenhouse gas emissions and mitigating the impact of
climate change, thus contributing to a more sustainable society. This chapter introduces the
concept and the relevance of energy efficiency within the European Union (EU), as well as its
interconnected policy instruments, and provides an overview of the EU’s legal framework that
seeks to substantially increase energy efficiency levels in the different sectors of society. The
chapter also explains the main legal instruments established for that purpose, highlighting the
most prominent existing challenges.
1. Introduction
Energy efficiency affects most parts of society; transport, building, manufacturing,
agricultural and energy sectors.
Oil crisis 1972 à MSs wanted to reduce energy consumption à increased use of renewables
1991 Specific Actions for Vigorous Energy Efficiency (SAVE) Programme = first substantive
programme promoting energy efficiency in the EU.
o Target: 20% increase in energy efficiency by 1995.
o Led to the adoption of several directives.
o SAVE programme also focussed on climate change, environmental protection, and
the need to establish an internal energy market were all key focuses.
2. The concept of energy efficiency
2.1 Terminology
Energy saving & rational use of energy (gained popularity after oil crisis); mainly referred to
the need to limit oil and/or natural gas consumption.
Energy efficiency; the ratio of output of performance, service, goods or energy, to input of
energy. à goal: use less energy whilst maintaining an equivalent level of economic activity or
service provision.
o Energy efficiency provides for a reduction of input whilst keeping the same level of
services
Energy savings; an amount of saved energy determined by measuring and/or estimating
consumption before and after implementation of an energy efficiency improvement
measure, whilst ensuring normalisation for external conditions that affect energy
consumption.
o Can be achieved by increasing energy efficiency, behavioural changes, or a decrease
in economic activities.
2.2 Interconnected policies
The concept of energy efficiency relates to three interconnected EU policies; energy trilemma:
1. Security of supply
o Increased energy efficiency; making better use of available (renewable) energy
resources and reducing dependency on imports of fossil fuels à security of supply.
2. Environment and climate change
o Increased use of renewable energy resources results in lower carbon dioxide (CO2 )
emissions, thus mitigating climate change à environment benefits.
3. The internal market