Energy Efficiency Targets
Energy efficiency is the first key objective in the package of the EU Energy Strategy for reducing energy consumption, as energy savings are the easiest way of saving money for consumers and for reducing greenhouse gas emissions. With the European Green Deal, the EU is increasing its climate ambition and aims at becoming the first climate-neutral continent by 2050
Current legislation
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On 25 July 2023, the Council of the EU confirmed its agreement with European Parliament on a negotiated Directive on Energy Efficiency. Poland, Hungary and Finland voted against. Abstention from Belgium, Latvia, Portugal and Slovakia.
1. ENERGY CONSUMPTION The 2023 Directive establishes to reduce final energy consumption at EU level by 11.7% in 2030. Member states will benefit from flexibilities in reaching the target, compared with the energy consumption forecasts for 2030 made in 2020. The consumption limit for final consumption will be binding for member states collectively, whereas the primary energy consumption target will be indicative. Final energy consumption represents energy consumed by end-users, while primary energy consumption also includes what is used for the production and supply of energy. Member states have to revise their integrated national energy and climate plans (NECPs). Draft updated NECPs were due in June 2023 and final plans will be due in 2024. The formula for calculating national contributions towards the target (defined in Annex I to the proposal) will be indicative, with the possibility of deviating from it by 2.5%. |
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2. ENERGY SAVINGS
The annual energy savings target for final energy consumption will gradually increase from 2024 to 2030. Member states will ensure annual savings gradually reaching 1.9% on 31 December 2030.
Member states can count in the calculation towards the target, energy savings realised through policy measures under the current and the revised energy performance of buildings directive; measures stemming from the EU emissions trading system (for installations and for buildings and transport); and emergency energy measures.
3. EU asks public sector ti lead the transition
The new rules set a specific obligation for the public sector to achieve an annual energy consumption reduction of 1.9% that can exclude public transport and armed forces. In addition to this, member states will be required to renovate each year at least 3% of the total floor area of buildings owned by public bodies.
The annual energy savings target for final energy consumption will gradually increase from 2024 to 2030. Member states will ensure annual savings gradually reaching 1.9% on 31 December 2030.
Member states can count in the calculation towards the target, energy savings realised through policy measures under the current and the revised energy performance of buildings directive; measures stemming from the EU emissions trading system (for installations and for buildings and transport); and emergency energy measures.
3. EU asks public sector ti lead the transition
The new rules set a specific obligation for the public sector to achieve an annual energy consumption reduction of 1.9% that can exclude public transport and armed forces. In addition to this, member states will be required to renovate each year at least 3% of the total floor area of buildings owned by public bodies.
Former Targets for 2020: 20% 20% 20%
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In 2007 the EU leaders set the three key targets of a:
The 20% energy efficiency target was enacted in legislation with the adoption of the Energy Efficiency Directive 2012/27/EU in 2012. In concrete terms, this meant lowering the EU’s final energy consumption to no more than 1,086 million tonnes of oil equivalent (Mtoe) and primary energy consumption to no more than 1,483 Mtoe. This is roughly equivalent to turning off 400 power stations. To achieve this, EU countries were required to:
National energy efficiency targets for 2020
To reach the EU's 20% energy efficiency target by 2020, individual EU countries set their own indicative national energy efficiency targets. Depending on country preferences, these targets were based on primary or final energy consumption, primary or final energy savings, or energy intensity. |
Read the old Directive
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Progress towards the 2020 target
Following a gradual decrease between 2007 and 2014, energy consumption increased between 2014 and 2017. The increase could partly be attributed to good economic performance since 2014, with low oil prices and colder winters.
In 2018, this growing trend was moderated and primary energy consumption even declined compared to 2017. Data from Eurostat (January 2020) shows that the primary energy consumption was 5.8% above the 2020 targets in 2018, whereas the final energy consumption was 3.5% above those targets.
The energy consumption trend since 2014 was pointing towards not reaching the EU 2020 targets for both primary and final energy consumption. The COVID crisis significantly hampered the economy and decreased the energy consumption in 2020. However, unless the European economy will become more energy efficient, the subsequent recovery will lead to a rebound in energy consumption.
Task force on mobilising efforts to reach the 2020 targets
The Commission established a task force with Member States to discuss with stakeholders the reasons for the increase in energy consumption in 2014 and 2017 and potential measures to address the problem. The task force has held meetings in 2018 and 2019.
Following a gradual decrease between 2007 and 2014, energy consumption increased between 2014 and 2017. The increase could partly be attributed to good economic performance since 2014, with low oil prices and colder winters.
In 2018, this growing trend was moderated and primary energy consumption even declined compared to 2017. Data from Eurostat (January 2020) shows that the primary energy consumption was 5.8% above the 2020 targets in 2018, whereas the final energy consumption was 3.5% above those targets.
The energy consumption trend since 2014 was pointing towards not reaching the EU 2020 targets for both primary and final energy consumption. The COVID crisis significantly hampered the economy and decreased the energy consumption in 2020. However, unless the European economy will become more energy efficient, the subsequent recovery will lead to a rebound in energy consumption.
Task force on mobilising efforts to reach the 2020 targets
The Commission established a task force with Member States to discuss with stakeholders the reasons for the increase in energy consumption in 2014 and 2017 and potential measures to address the problem. The task force has held meetings in 2018 and 2019.
Former Targets for 2030: 32.5% energy efficiency target (compared to projections for 2030)
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In December 2018, the amended Energy Efficiency Directive (EU) 2018/2002 entered into force, updating some specific provisions from the previous directive and introducing several new elements. Check the document above. It establishes a headline EU energy efficiency target for 2030 of at least 32.5% (compared to projections of the expected energy use in 2030), with a clause for a possible upwards revision by 2023. The 32.5 % target for 2030 translates into final energy consumption of 956 Mtoe and/or primary energy consumption of 1,273 Mtoe in the EU-28 in 2030. Under the Regulation on the Governance of the energy union and climate action (EU)2018/1999, each Member State is required to establish a 10-year integrated National energy and climate plan (NECP) for 2021-2030, outlining how it intends to contribute to the 2030 targets for energy efficiency, for renewable energy and for green house gas emissions. Following the submission of draft NECPs in early 2019, the Commission published a detailed assessment of these draft plans in June 2019 with country-specific recommendations. This encouraged many Member States to raise their ambition levels in the final NECP, most of which were submitted in early 2020. |
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Targets by 2050: - 55% greenhouse gas emission & EU Climate neutrality
On 10-11 December 2020, the European Council confirmed the objective of a climate-neutral EU by 2050 in line with the Paris Agreement. This means that the EU needs to update its climate and energy policy framework.
To that end, in December 2020 the European Council endorsed a binding EU target of a net domestic reduction of at least 55% in greenhouse gas emissions by 2030 compared to 1990.
