Energy Efficiency and Energy Saving – The ‘First Fuel’

Energy efficiency and energy saving are the ‘first fuel’, offering enormous opportunities for tackling climate change. They also contain great economic potential because, in the long run, the return exceeds the costs. Article 194 TFEU allows EU-wide legislation, thereby steering Member States towards certain energy efficiency and energy saving goals. As part of a highly complex regulatory package, the Energy Efficiency Directive was amended in 2018, setting ambitious energy efficiency targets. However, its Energy Efficiency Obligation Scheme has not yet been implemented by all Member States. The Eco-Design Directive offers chances for improving the energy efficiency of electric and electronic appliances but is thwarted by increases in demand caused by more efficient technologies (so-called rebound effects). The Energy Performance of Buildings Directive still struggles with challenges due to the low renovation rate of existing buildings. It is therefore questionable whether the relevant EUs efforts will be in line with international climate change targets.