Proposal for an EU Energy Efficiency Directive 2011
On 22 June 2011 the European Commission published its proposal for a revised Energy Efficiency Directive in accordance with the Energy Efficiency Plan published earlier in March 2011. The proposed directive transforms a number of the key actions identified in the Energy Efficiency Plan into binding measures and will repeal the Cogeneration directive (2004/8/EC), and the Energy Services Directive (2006/32/EC).
The proposal follows recent calls for further action in the area of energy efficiency this year by the European Council and the European Parliament to achieve the European Commission’s objective of saving 20% of the EU’s anticipated primary energy consumption by 2020.
The Commission’s most recent estimates, based on the national energy efficiency targets for 2020 set by Member States for themselves with a view to achieving the Europe 2020 energy efficiency objectives would indicate that overall the EU is far from reaching this goal, based on the rate of progress achieved to date. Accordingly, the directive also proposes to assess the progress towards achieving the 2020 energy efficiency objectives across the EU in 2014, with a view to introducing further legislative measures if satisfactory progress has not been achieved.
The proposed directive could have significant implications for the NHS. This is because the new rules will require that the public sector are to lead by example. Public bodies are to act as a major driver for change to ensure energy efficiency targets are met, and to achieve greater market usage of energy efficient products and services through two key requirements: a legal obligation to purchase energy efficient premises, goods and services; and secondly, a requirement to reduce energy consumption of their buildings, by carrying out required renovation works of at least 3% of the total floor area of their premises, each year.
Implications for NHS Organisations
In view of the size of the NHS estate, and the vast procurement budget within the NHS, the impact of these requirements on the NHS could be significant.
We estimate that the renovation requirement alone could leave the NHS liable for annual costs of more than £70 million. Given the NHS' vast, and often Victorian-era estate, the proposal would be especially damaging for acute services, with significant costs incurred to meet high-energy efficient specifications.
The Parliamentary Vote
On 28 February 2012, the European Parliament energy committee agreed its position towards the Directive. After five months of negotiations, the energy committee adopted the report which calls on Member States to establish binding national energy efficiency targets, which were not included in the Commission’s initial proposal.
Buildings account for 40% of the EU's energy consumption and 36% of its CO² emissions. Under the new measures proposed by the energy committee, Member States would need to start renovating 2.5% of the total surface area of their public buildings when the total utilised surface area is over 250 m² by January 2014.
With regards to public procurement, the voted measures would also require public bodies that purchase rental products, services, systems and buildings to set energy performance requirements as technical specifications, taking into account cost-effectiveness based on a whole life-cycle analysis and therefore ensuring that they buy or rent products with a high efficiency performance.
Finally, the text proposes to establish financing facilities for energy efficiency measures. These facilities would be funded by revenue from fines imposed for failure to comply with the directive and money from EU funds. By June 2013, the Commission will need to verify whether Member States are on the right track to reach these targets. By June 2014, the Commission will have to come up with energy saving objectives for 2030.
The Energy Committee decided to give the rapporteur a mandate to proceed with the negotiations with the Council. The plenary vote will take place only after the end of these negotiations.
Next steps
Negotiations on this controversial subject are still on-going. In the meantime, the NHS European Office will continue to work to brief EU decision-makers of NHS views and concerns.
For further information on the proposed Directive, please contact:
Jenny-Lee Spencer, Senior European Policy Manager: jenny-lee.spencer@nhsconfed.org.