European Parliament votes for ambitious energy efficiency push

A wave of new energy efficiency policies are set to be adopted across Europe, after the European Parliament yesterday voted overwhelmingly in favour of demanding new energy efficiency legislation that will require all large businesses to undertake energy use audits. The draft EU energy efficiency directive was approved by 632 votes for to 25 against with 19 abstentions, and is now widely expected to be formally adopted by member states in the next few months. Governments will then have 18 months to transpose the new legislation into national law. The directive is based around demanding new energy efficiency targets for utilities and public sector buildings that will force governments across Europe to develop new policies to drive investment in energy efficiency. Under the new rules, utilities will be required to demonstrate that they are delivering annual energy savings between 2014 and 2020 equivalent to 1.5 per cent of their annual energy sales to customers. Meanwhile, governments will be required to renovate three per cent of the total floor area of central government buildings each year, while all large businesses will be forced to undertake officially approved energy use audits every four years in an effort to identify potential energy savings. "This essential legislation is not only crucial for achieving our energy security and climate goals; it will also give a real boost to the economy and create jobs," said MEP Claude Turmes who helped steer the legislation through the European Parliament. "Crucially, it will reduce the sizeable and growing cost of our dependence on energy imports - €488bn in 2011 or 3.9 per cent of GDP - which is particularly stark in crisis-hit countries." The passage of the bill will further crank up pressure on the European Commission and Parliament to finalise long-awaited plans to tackle the low price of carbon in the EU emissions trading scheme (ETS). Experts have warned that if the new energy efficiency directive proves effective at curbing energy use, it will further dampen demand for carbon allowances in the next phase of the ETS between 2013 and 2020, leading to downward pressure on carbon prices. Officials in Brussels have signalled plans to try and tackle the problem by reducing the number of allowances that will be released for auction, but debates are on-going over the precise number of credits that will be withheld. In related news, the European Commission this week announced nearly €200m of co-financing for transport projects across the bloc, including a series of developments designed to curb air pollution and greenhouse gas emissions. Nearly €10m has been awarded to four climate change-related transport projects, including a feasibility study for a fast-charging electric vehicle network in Northern Ireland, while a further €3.76m has been awarded to four projects addressing air pollution from maritime transport.