Key drivers for industrial performance

Herbert Aichinger European Commission

DG Environment Directorate G Sustainable development and Integration

Unit Industry

Putting energy efficiency into a wider context

How are we doing?

What is happening outside the EU?

What are the internal EU drivers for greater efficiency?

What solutions can the European Commission deliver?

Identifying problems…

We are doing fine…

Energy intensity (kg of oil equivalent per EUR1000 of GDP)

195

200

205

210

215

220

225

230

235

240

245

1993 1994 1995 1996 1997 1998 1999 2000 2001

…or at least better than others…Green house gas emissions as percentagte of 1990 levels (EU15) 1990=100

92.00

97.00

102.00

107.00

112.00

117.00

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001

EU15 US

…so why should we care about greater energy efficiency?

Worrying trends:

Growing dependence on energy imports

Growing demand from developing economies

Remedying the greenhouse effect

Because absolute energy use is fairly stable…

Final energy consumption by industry (toe million)

315,5303,7

295,5 295,7304,9 305,1 308,1 303,3 299,1

309,9 309,9 307,0

256,4 250,5 247,1 249,3258,6 257,8 261,2 260,8 261,5

270,6 271,4 269,1

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

EU (25 countries) EU (15 countries)

…while our dependence on energy imports is growing.

Net imports of electricity (GWh)

1089713982

27297

18832

23694

42376

34297

3539

8961

14610

1405

-6589

-15646 -16775

1973 1980 1990 1995 1999 2000 2001

EU-15

CR, PL, HU, SR

Growing dependence

EU Energy Outlook to 2020: Total primary energy consumption +1% pa until 2010

and +0.4% pa until 2020

Energy intensity 1.5% pa towards 2020

2/3 of overall EU energy use imported by 2020 (<1/2 in 1995), gas gaining highest growth

EU gas importers from Russia to face competition from China

China's total oil consumption doubled since 1992. Domestic oil production remained almost static, up barely 20% on 1992.

The deficit filled by net imports of about 100 million tonnes - three times the level in 1998.

Source: Oxford analytica

Asia’s growing appetiteMonthly oil imports 12-month centred moving average, USDm

The new member states

Average GDP growth in 10 Acceding Countries 1995-2002 = 3,6% per annum, EU15 only 2,2%

Labour productivity growth in 10 Acceding Countries (1995-2000) = 3,6 % p.a., EU15 only 1%

Influx of Cohesion and Structural Funds: €8,9 billion in 2004-2006 (of €21.7 billion to be allocated)

Investment needs in environment field ca €100 billion euro

The new member states – major industrial sectors

Industry share in total manufacturing, %

10 Accession Countries 15 Current Member States

Food products, beverages and tobacco

19,1 13,7

Basic metals and fabricated metal products

12,5 11,1

Electrical and optical equipment

10,2 12

Transport equipment 11,3 13,6

Delivering solutions…

EU instruments for energy efficiency at different angles

EU ENERGY

EFFICIENCY

INSTRUMENTS

Large Combustion Plants Directive

Emissions trading

EPER: basis for benchmarking Principal emissions (50 pollutants) and IPPC sources responsible

Published every 3 years: first time February 2004

http://www.eper.cec.eu.int

Environmental TechnologiesAction Program: boosting competitiveness and environmental protection Increase and focus the effort in R&D programmes Technology platforms (Hydrogen, Water, Solar) Networks for technology testing Performance targets for key products and processes Financial instruments with appropriate risk sharing Review of State aid guidelines Review of Environmentally harmful subsidies Green public procurement Rising business and consumer awareness Provide targeted training Responsible investments in developing countries

Voluntary Measures: EMAS

Energy efficiency guidelines for small and medium sized enterprises:

Heating, lighting, ventilation, electric motors

Goal definition, data collection, input-output analysis, sampling of indicators and definition of measures

To be available by the end of 2004

6

IPPC BREF on energy efficiency

Considerable potential (all in all 12-14%) for cost-

effective energy savings in IPPC plants

IMPEL study (May 2000): there is little experience so far

with energy efficiency provisions in integrated permits

The Finnish Environment Institute has proposed a new

IMPEL study

The work on BREF will start 2005

Getting demand right – Green public procurement

Buying green! – Handbook on environmental public procurement

Energy efficiency as environmental factor to be put in technical specifications

Products and services

http://europa.eu.int/comm/environment/gpp/guidelines.htm#handbook

Community support for innovation

Concluding remarks

Energy demand will rise – internally and externally

Increasing energy efficiency might be crucial for industrial competitiveness

Rise in energy efficiency will depend on price signals and technological breakthrough

The key guidance document will be BREF on energy efficiency

Need to integrate energy-efficiency in other sectors (households, transport)