Study on the costs and benefits of the Action Plan for Energy Efficiency of the European Union 2006

European energy policy has developed rapidly in the last decade, and energy conservation has become a recognized indispensible tool and one of the most straightforward solutions to a number of challenges, such as the threat of global climate change, energy security challenges, financial and environmental pressure on the society and the individual. Energy efficiency can provide remedy within a short timeframe, and in addition it contributes with social and other co-benefits.

The European Commission Action Plan for Energy Efficiency was adopted in 2006 as an integral part of the Energy Package of 10 January 2007, and it was endorsed by European Council in March 2007. The EU EEAP set a commitment and outlined a framework of policies and measures that are expected to realise the estimated savings potential of over 20% of the EU’s annual primary energy consumption by 2020. Building on existing EU energy efficiency legislation and applying the foreseen 10 particular priority actions in 6 areas, it was expected that the 20% savings could be met cost-effectively vis-à-vis the EEAP.

However, while the policies in place in 2006 can already lead to the achievement of significant savings, they were not judged as enough. The Action Plan acknowledged that at the time, there was still scope for additional legislative and supportive measures. Besides introducing new policies, the level of energy savings could be cost-effectively increased through more intensive implementation rate and higher success of existing policies.

This report was prepared to provide input for DG TREN (later DG ENER) of the European Commission to satisfy the obligations of the Commission laid down by Art. 14(3) of the Directive 2006/32/EC on energy end-use efficiency and energy services.

The study evaluates the costs and benefits of a selection of European energy end-use policies, standards, agreements, and legislative elements that were called for in the EEAP. The impacts on competitiveness, employment, environment, health, individual wellbeing and comfort, and persistence are also analyzed. The contribution of the appraised policies to the priority actions of the EEAP was also evaluated.