Energy plan offers €50bn cost savings

The EU could save €50 billion a year in the next six years by improving the efficiency of transport, buildings and appliances, according to energy efficiency plans to be published by the European Commission today (19 October).

The savings would climb to €100bn a year by 2020 if oil prices remain at around $48 per barrel, or €150bn if they rise to $70.

To save this money, Europe would have to shave 20% off its annual energy bill by 2020. This assumes a 3.3% annual energy efficiency improve­ment starting next year, compared to 1.8% a year at the moment.

The action plan sketches out improvements needed for the period 2007-12, but contains no new compulsory targets and is largely based on existing EU laws. The greatest energy savings potential lies in the building sector, says the plan, followed by manufac­turing and transport.

The Commission says it will in 2009 "significant­ly" extend the scope of the EU energy performance of buildings directive, which currently only affects buildings of more than 1,000 square metres.

The Com­mis­sion commits itself to pro­pos­ing legislation next year, "if neces­sary", in place of volun­tary agreements to bring car emissions down to 140mg/km by 2008 and 120mg/km by 2012.

In 2007 it will also consider tax breaks for energy efficient products, stating that "experience has shown that taxation… is a powerful tool in pro­moting energy efficiency".

By 2008, the Com­mis­sion will develop mini­mum binding efficiency requirements for new small electricity, heating and cooling systems.

The EU could save €50 billion a year in the next six years by improving the efficiency of transport, buildings and appliances, according to energy efficiency plans to be published by the European Commission today (19 October).