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How to support the implementation of energy
efficiency measures under the Cohesion
Policy 2014-2020
Policy recommendations from several EU
projects

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A GLOOMY REALITY
 A reality that we all know: we are not on track on
energy efficiency
 “Progress towards clean energy has stalled since 1990” (IEA report
published on 17 April 2013)
 European Trading Scheme for GHG emissions is experiencing serious
problems (tonne of C02 : ca. 3€)  much smaller revenue than expected
from the auctioning of C02

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WHAT SHOULD THE EU DO?
 In the long-term  2030 framework for the climate and
energy policies
 In the short- to mid-term : Cohesion Policy
 A great opportunity we must use :
336 mio € over 2014-2020 (the most transformative EU policy for
social economic and environmental development)
A policy that is implemented at the local level and helps communities
to be the leaders of the transition to the low-carbon economy
A potential that is far from being exploited (today the share of total
cohesion policy for sustainable energy is 2.5%. The Commission
proposes 5% for 2014-2020. NGOs plead for 10%)
 Recommendations from SF energy invest (IEE), SHELTER (IEE),
CASH (Urbact II)

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FACTORS for POLICY and FINANCIAL COHERENCE
 Partnership agreements should reflect the synergies with
Energy Efficiency Directive (articles 4, 7, 20)
 Member States shall establish a long-term strategy for
mobilising investment in the renovation of the national stock
of residential and commercial buildings […]
 […]Member States shall facilitate the establishment of
financing facilities, or use of existing ones, for energy
efficiency improvement measures […]
 For instance: Energy efficiency funds at the appropriate level
should be set up partly following obligations put on Energy
providers, partly fed by ERDF
 Requires discussion fora between managing authorities of the
Funds and administration in charge of energy  possibility to
work within a concerted action

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 Importance of thematic concentration (ERDF)
 Will incentivize managing authorities to set up the above
mentioned Funds with sufficient up front resources
 Combined with new local development instruments (CLLD and
ITI) thematic concentration will give the necessary means for
local/urbal low carbon development
 This will incentivize public authorities to look at the co-
benefits of low-carbon investments
For instance: in Northern Ireland
Estimated cost of reducing Category 1 hazards to acceptable
level: £470m (nearly E600m)
Estimated annual savings to Health Service of £33m (E40m) per
annum

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 New evidence on the macro economic effect compared to
other use of public spending (see Cambridge Econometrics,
October 2012)
 In UK investing in energy efficiency measures in fuel poor
households has a similar or more positive macro-economic
impact than an equivalent stimulus package either through
increases in government current spending (e.g. NHS,
education) or government capital spending (e.g. roads,
building hospitals), or reductions in VAT.
 investment in energy efficiency has the added and persisting
benefit of also reducing natural gas imports. If households
spend less on energy imports, they are able to spend more
on other products and services, which are in part supplied
domestically.
 Energy security is also improved.

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FACTORS FOR SUCCESSFUL IMPLEMENTATION
 Design good Operational Programme with relevant
priority axes
 Mainstreaming of energy efficiency ambitions is NOT
necessarily relevant
 Better to have a priority axis or OP or ITI only dedicated to
low carbon investments to reach critical mass of projects
and investment volume
 HOWEVER low carbon investments (particularly in housing
sector) can only be successful with social and human capital
measures (training measures for instance and other ESF
type activities)

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 Create local clusters on sustainable social housing
clustering approach, favouring the development of special
linkages and synergies between local stakeholders involved
in a specific field - as research, industry, municipality, social
and private landlords
 Use of Framework contracts in the public procurement
directive – e.g.: SHELTER project
 Could be easily transformed into local support group for
CLLD
 Facilitate shared diagnosis about the energy needs and help
strategic energy planning

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Julien Dijol, Policy Coordinator
julien.dijol@housingeurope.eu
SF Energy Invest:
http://sf-energyinvest.eu/
SHELTER
http://www.shelterproject-iee.eu/
CASH:
http://urbact.eu/fr/projects/low-carbon-urban-
environments/cash/homepage/

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Julien Dijol, Policy Coordinator
julien.dijol@housingeurope.eu
SF Energy Invest:
http://sf-energyinvest.eu/
SHELTER
http://www.shelterproject-iee.eu/
CASH:
http://urbact.eu/fr/projects/low-carbon-urban-
environments/cash/homepage/