EU decision makers are focusing on legislation and measures to maximize energy efficiency and minimize the environmental impact of energy generation and use. The Commission has proposed
256 NEEAP-3 of Finland.
257 Dalhammar 59 Scand Stud Law 2014. p.163.
258 De Almeida 43 No 8 Energy & Buildings 2011.p.1884
259 The specifications are outlined in Annex 1 of the Directive. The directives also promote voluntary agreements as outlined in Article 17 to offer alternatives to implementation measures.
260 Dalhammar 59 Scand Stud Law 2014. p.155.
261 Dalhammar 59 Scand Stud Law 2014. p.164.
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an update to the EPBD focusing on what works and what could be improved262 to enhance the implementation and include targeted amendments for strengthening core articles.263 The update aims to support the ambitious commitments of the Energy and Climate Policy Framework for 2030264 without restricting “Member States from setting more ambitious energy performance requirements” at national level in compatible with Union law.265 The 2030 commitments aim to improve energy security, competitiveness and a sustainable decarbonized energy system266 by ensuring a 40% GHG emissions reduction, increase renewable energy uptake by 27% and improve energy efficiency by 30%.267 The proposal aims to promote the role of Information and Communications Technologies (ICT)268 and smart technology in buildings,269 increase renovation rates of buildings, streamline the existing obligations270 and to help deliver the EU 2030 energy and climate goals within a broader Clean Energy Package.271 This is a clear indication that further action in buildings is still needed towards, “modernization of national regulations in the building sector, opening wider markets for innovative products and enabling cost reduction.”272 The EU realized that the next generation smart energy technologies should be harnessed to effectively address and resolve the societal difficulties associated with the current energy mix to combat
262 COM/2016/0765 final, p.13.
263 COM/2016/0765 final, p.8.
264 ec.europa.eu, Section 2030 Climate & Energy Framework.
265 COM/2016/0765 final, p.15.
266 Communication on an Energy roadmap 2050, (COM (2011) 885 final).
267 EUCO 169/14, CO EUR 13, CONCL 5.
268 ICT based energy management systems can improve energy efficiency uptake in buildings through monitoring of energy usage (sensors and smart metering monitoring gas/electricity usage), data transfer (communication infrastructure), identify and rectify changes and aid in resources integration through Building Management Systems (BMS). See, Morán et al.. Energy and Buildings 2016, p.128.
269 Smart building systems enhance the implementation of the EPBD by enhancing information transfer to consumers and investors on energy consumption. Operational efficiency ensures quick responses for energy efficiency enhancement. See, COM/2016/0765 final, p.6.
270 ec.europa.eu/energy/en Section Buildings
271 europarl.europa.eu/legislative Section Energy Performance of Buildings Directive review.
272 COM/2016/0765 final, p.5.
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climate change impacts273 with a vision that looks at the 2030 (mid-term) and 2050 (long-term) perspectives and objectives.274
The drive for an update is a further testimony that the existing energy efficiency and performance of buildings laws within the EU “are insufficient to achieve climate change mitigation and energy security objectives” within the necessary timeframe although the evaluation reveals relatively limited regulatory failures.275 The revision of the EPBD is expected to drive energy savings between 60 – 80 Mtoe/year by 2020 with a “160 to 210 Mt/year of CO₂ savings by 2020.”276 That will translate into “a reduction of 5-6% final energy consumption in 2020”277 and 4-5% CO₂ emissions in 2020. The update clearly shows the ambitious nature of the EU in establishing long term goals reaching 2030 to accelerate the decarbonization of the building stocks.278 The update is also in line with international obligations and commitments. The strengthened language of the Paris Climate Agreement of “holding the increase in the global average temperature to well below 2°C above pre-industrial levels, and to pursue efforts to limit the temperature increase to 1.5°C above” preindustrial levels translates into a need for even stronger and more immediate mitigation action than previously assessed.279 The EU has further indicated its willingness to take a prominent global leader position in climate change mitigation policies by putting its energy and climate goals in line with the Paris Climate Agreement.
Although the ex-post evaluations show that the recast EPBD is “effective and is delivering on its general and specific objectives,”280 the update clearly indicates that the EU is still seeking an adequate and stable regulatory approach to address the impacts of climate change particularly from buildings. The ever-changing EU laws show that finding the optimal regulatory approach is
273 Bradbrook Wash. J. Energy & Envtl. L 2011, p.18.
274 COM/2016/0765 final, p.5.
275 COM/2016/0765 final, p.6
276 COM (2008) 780 final
277 COM/2016/0765 final, p.9.
278 COM/2016/0765 final, p.5.
279 UNEP Emissions Gap Report 2016, p.3.
280 The EPBD has shown good performance on efficiency, relevance, coherence, and EU added value. See COM/2016/0765 final, p.5.
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proving to be an enormous challenge to the EU.281 The EU is thriving for stronger legislation to limit greenhouse gas emissions and promote consistent policies that are relevant to modern challenges. The EU has also shown that making regulations more effective should include rigorous updating of standards to promote the development and use of new and efficient technology that promote green buildings.282 The EU has focused on developing consistent mandatory regulation with increasing, rigorous compliance and effective penalties for those who do not comply with the transposition of directives, to help the energy efficiency goals and targets.283
Besides broad goals of the amendments discussed above, there are proposed targeted updates of core Articles as briefly discussed below. The proposal will amend Article 2(b) to address the EU energy poverty through building renovation which enhances energy savings and efficiency improvements of the building stocks.284 Currently energy poverty is affecting over 23.3 million European households285 and the proposal aims to take out between 515 000 and 3.2 million households from energy poverty.286
Article 4 EED (provisions on long-term renovation) is moved to the EPBD where it fits more coherently to ensure the introduction of specific mechanisms by Member States to finance renovation of the building stocks.287 The proposal aims to attract more investors to see the light in the energy efficiency market with much hope on the smart finance for smart buildings. Financial conditions will be improved through the reinforcement role of the “European Structural and Investment Funds (ESIF) and the European Fund for Strategic Investments (EFSI).”288 The changes in the EPBD will undoubtedly have significant consequences of enhancing investor confidence in climate-friendly technology.289 The provision will ensure the long-term building
281 Peeters Climate L 2014, p.139.
282 Parejo-Navajas, Seattle J. Envtl. L 2015, p.410.
283 Parejo-Navajas, Seattle J. Envtl. L 2015. p.410.
284 COM (2016)765. p.3.
285 europarl.europa.eu/legislative Section Energy Performance of Buildings Directive review.
286 COM/2016/0765 final, p.12.
287 COM/2016/0765 final, p.12.
288 COM/2016/0765 final, p.12.
289 Oberthuür et al. 2010. p.66.
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renovation strategies covering “residential and non-residential buildings as part of the integrated national energy and climate plans.”290
Electro-mobility infrastructure installation will be promoted through Article 8. The drive for support will cover installations in all new and renovated buildings to further drive the decarbonization of the economy.291 The updated Article 8 will also reinforce the use of automation and control, improve building electronic monitoring and introduce the ‘smartness indicator rating system. Article 10 will be amended to include two new provisions to drive more transparency on the use of EPCs particularly in public buildings and provide actual energy usage data to the public to determine the energy savings before and after renovation. The amendment will ensure “that all necessary parameters for calculations, for both certification and minimum energy performance requirements, are set out and applied consistently”292 through an enhanced certification process and compliance checking. Transparency and consistency in energy performance will be enhanced by the update of Annex 1 also. The update will also ensure that heating and air-conditioning systems are regularly inspected as further strengthened in Article 14 and 15. This aims to ensure improved indoor environments and maintain building performances to maximize energy efficiency potential. The amendment will strengthen the monitoring ability of the Commission to ensure that the revised objectives are met since the Member States’ reporting and planning obligations will be connected to the Commission’s monitoring obligations.293
There have been great developments in the update legislative process. The Council and the Parliament reached a provisional agreement in December 2017 and the “agreed text is expected to be formally adopted in early 2018.”294
In conclusion, this chapter has examined the core EU energy efficiency legislative instruments mainly- the EED and EPBD that addresses the interrelated and connected challenges of climate
290 COM/2016/0765 final, p.10.
291 COM/2016/0765 final, p.9.
292 COM/2016/0765 final, p.14.
293 europarl.europa.eu/legislative Section Energy Performance of Buildings Directive review.
294 europarl.europa.eu/legislative Section Energy Performance of Buildings Directive review.
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change and energy. There is high level of significance of keystone intervention legislation such as RED, Eco-Design directive and the EU ETS that aims to overcome different problems emanating from energy demand and reducing emissions in building stocks. These are the principal EU legislation towards achieving the 20% energy efficiency headline target by 2020 and beyond.
Although the EED and EPBD directives have been ambitious in reducing emissions, they have not been sufficient for adequately reducing emissions and save energy as noted in the proposed upcoming key updates. Regarding the EED the main conclusion is that, despite setting out ambitious goals the potential to reduce emissions in buildings lies in the transposition into national law, implementation and enforcement by Member States. There is need to improve both implementation and enforcement in accelerating energy savings and emission reduction in buildings. Findings on the performance and limitations of the EPBD recast points out that the directive has great potential. The update process is targeting its regulatory problems to ensure that buildings can be “relied upon to deliver substantial emission reductions.”295
It is significant to note that there is much GHG emission potential from EU public and historical buildings. The 3% public buildings renovation target is not very ambitious to harness this great potential considering the impact of EU public buildings on emissions generation. Lack of legal text targeting the potential from historical buildings and increasing retrofitting ambitions should be addressed in future legislation updates. Most of the EU buildings are now old and very inefficient while renovation is at a very low pace (0.5%-2.5% per year).
295 Dawes Environmental Law Review 2010, p.280.
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4 ENERGY EFFICIENCY IMPLEMENTATIONS IN MEMBER STATES This chapter will examine and critique the legal instruments adopted by Finland, Germany and the UK to implement energy efficiency to achieve EU energy and climate change policies. The examination will be limited to EPC regulation, metering, billing and utility companies, funding of energy efficiency renovation and finally the construction and renovation policies and measures.
These are key areas impacting energy efficiency uptake in the EU. This thesis further examines the national regulatory frameworks and explore their challenges and strengths against the EU energy efficiency objectives.
Building stocks characteristics varies greatly between Germany, Finland and the UK. The variations exist in terms of “buildings age, type, climatic conditions, ownership, renovation rates and energy performance.”296 In the UK, most of the Victorian and Georgian houses are energy inefficient while the extreme weather in Finland influences the implementation of energy efficiency.297 These circumstances influence the varying contexts in which EU law on energy efficient buildings is implemented. EU energy efficiency laws through the EED and EPBD ensure that Member States observes Union law while “adapting to the different national and regional specificities”298 however, inconsistent implementation and compliance exist amongst Member States.
EU law allows Member States to have the “flexibility as to the form and method of implementation of EU directives, and whether to go beyond the minimum requirements set by the EU law.”299 As such Germany, UK and Finland are obliged to transpose and adopt the EPBD and EED into their national law. Although these 3 Member States’ regulatory frameworks share common themes such as retrofitting and funding, they “have adopted different approaches in the design of their national
296 COM/2013/0225 final.
297 COM/2013/0225 final.
298 COM (2016)765
299 Directive 2002/91/EC. Recital 21.
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regulatory framework” and it is this “transposition of directives into national legislation that influences the achievement of energy saving targets.”300