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EU Policies on Sustainable Energy

Regions for Economic ChangeWorkshop on Low-Carbon Economy: Energy Efficiency

in Regions and CitiesBrussels

21 May 2010

Maud SKÄRINGEREuropean CommissionDirectorate-General for Regional Policy

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Solidarity in practice: The EU Cohesion Policy

2007-2013: 347 billion euro invested for less well-off regions or citizens in infrastructure, business, environment and training of workers

Regional Fund

Social Fund

Cohesion fund

Convergence objective: regions with GDP per capita under 75% of the EU average. 81.5% of the funds are spent on this objective.

Regional competitiveness and employment objective.

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Cohesion Policy & EnvironmentWin-win policy:

- Positions EU as lead market in green technologies

- Creates new and sustainable jobs in local economies (growth)

- Improves and protects the environment

‘EnvironmentalServices’

€ 54 billion

Low Carbon

Economy€ 48 billion

Eco-Innovation€ 3 billion

€ 105 billion in total

30% of total Cohesion Policy funds 2007-2013

3 times more than in 2000-2006 (€ 37 billion)

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Petroleum products2%

Natural gas6%

Electricity (TEN-E)3%Electricity

3%

Natural gas (TEN-E)3%

Wind7%

Solar 10%

Biomass17%

Hydroelectric, geothermal and other

10%

Energy efficiency, co-generation, energy

management39%

CP allocations to Energy Sector

2007-13 Total = €10.8 billion (3.1 % of total)

€9 billion sustainable energy. €1.8 billion traditional energies & interconnectors.

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Allocations to Energy Sector as % of total CP allocations per MS

2007-2013

0%

1%

2%

3%

4%

5%

6%

7%

RES

EE

Traditional Energy

TEN-E

Source: Infoview 2009

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Energy efficiency in the “recovery package”• Amendment to existing regulation

(May 2009)

• Up to 4% of the national ERDF allocation can go to energy efficiency and renewable energy in housing

• Eligible projects to be defined in a way supporting social cohesion

• Further amendment to take effect shortly to facilitate the use of innovative financial instruments in this area

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Focus on Sustainable Energy in Buildings

• Building sector, a win-win opportunity:– 41 % of EU final energy consumption in

buildings (vs. 32% transport & 28% industry) and 36% of CO2 emissions

– Single most cost-effective sector for energy reduction: Estimated 30% reduction potential by 2020

– New buildings may represent about 1% of total stock focus on existing buildings

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Green energy for the hospital of Szeged (HU)

• Old steam boilers & external pipe system replaced

• Computer controlled energy systems

• 800 m² of solar panels

• New system = 20% energy saving

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0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

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Env

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ocia

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RT

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Ent

repr

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rshi

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ICT

for

peo

ple

& S

ME

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Oth

er b

usin

ess

supp

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Hum

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Lab

our

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Soc

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Incl

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Cap

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uild

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EU

27

Strategic Report 2010: Different rates of progress in key themes

GL1: Attractive places

GL2: Improving knowledge & Innovation

GL3: More and better jobs

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Progress Energy priorities

Codes 33-43: € 10,8 bn available

Average project selection 13,2% = 1,4 bn €

Good progress – CZ, LT

0,00

0,50

1,00

1,50

2,00

2,50

PL IT CZ GR RO FR DE LT ES HU UK PT BG SK SI LV EE EU26

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

€ bn % project selected

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ENERGY EFFICIENCY – CURRENT FRAMEWORK

... contributes towards the 20% primary energy savings target in 2020

FUEL EFFICIENCY OF CARS

ENERGY TRANSFORMATION

BUILDINGS

APPLIANCES

FINANCING SMEs & ESCOs

FINANCING EE NMS (ERDF)

LOCAL ACTION

TAXATION

AWARENESS

INTERNATIONAL

Energy Efficiency

Action Plan

6 priority areas

10 priority actions

85 measures

2006 - 2012

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1741 cities signed up so far

Commitments of Local Authorities when joining the Covenant:

• Reduce their CO2 emissions by more than 20% by 2020

• Prepare a Baseline Emission Inventory • Submit a Sustainable Energy Action

Plan• Publish regular Implementation

Reports• Organise Local Energy Days• Spread the message of the Covenant

of Mayors

Covenant of Mayors

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• Promotion of the Covenant

• Technical and strategic assistance

• Financial support or opportunities

• Intermediary between Signatories and EC

• Assistance in organising Energy Days

• Follow-up and feedback

COVENANT SUPPORTING STRUCTURES

Their missions

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•Technical assistance facility managed by EIB

•Financing development of bankable investment projects or programmes

•Aiming to ensure the eligibility of the supported investment projects or programmes for further EIB funding

•Funded through Intelligent Energy Europe programme, contributing to its objectives

ELENA – European Local Energy Assistance

Condition: Projects contribute to the achievement of the CO2 reduction objectives fixed in the Sustainable Energy Action Plans within the Covenant initiative

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Current situationFurther opportunities

• Substantial funds still available during 2007-2013 period: 13% allocation on energy vs 27% on average for Cohesion Policy as a whole

• Regulatory changes – Member States encouraged to use the new possiblities

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More information / Applying for funding

Cohesion Policy project examples:http://ec.europa.eu/regional_policy/projects/stories/

index_en.cfm

List of Cohesion Policy funds Managing Authorities:http://ec.europa.eu/regional_policy/manage/authority/

authority_en.cfm

Covenant of Mayors: http://www.eumayors.eu

ELENA: http://www.eib.org/products/technical_assistance/

elena/index.htm?lang=en