A strong 2040 EU energy efficiency framework is an imperative for energy security, competitiveness and affordability

In the midst of a new energy crisis resulting from the war in the Middle East, the EU starts its reflections on the design of the energy efficiency framework for the next decade. The post-2030 energy efficiency rules must build on the successes of the current legislation and ensure that energy efficiency remains the starting point for achieving EU energy independence by helping citizens to cut their bills and fossil fuel dependency. 

In legislative terms, 2040 is just around the corner and the European Commission is expected to present the energy efficiency framework for the next decade by the end of this year, making this a crucial moment to reflect on what energy efficiency policy has achieved, why it is still needed and how it can be further improved. 

Is energy efficiency policy delivering in the EU?  

Without energy efficiency, EU energy use in 2023 would have been 29% higher than in 2000, making the EU even more dependent on fossil fuels import. Annual energy savings have grown considerably since 2020, well above the 2000-2014 average and three times more than in 2015-2019, showing a steady progress in the last two decades.  

This progress did not happen by chance. From SMEs adopting efficient electrified technologies, to renovation of schools and efficient appliances, the EU energy efficiency legislation has helped to save energy, cut bills, improve comfort and competitiveness for European citizens and businesses. With the 2023 Energy Efficiency Directive still in its early implementation phase, energy efficiency will accelerate further. 

Why is energy efficiency policy still needed?  

Energy efficiency actions are largely regulatory driven, demand for energy efficiency products and services is often pushed by regulations and standards. EU legislation is therefore crucial to shape the market by providing a predictable long-term signal that drives industrial investment, skills upgrades, and innovation. In a nutshell, EU legislation ensures that the energy efficiency industrial ecosystem, which employs over 1.2 million Europeans, continues to thrive in Europe and delivers solutions that help families and businesses to keep their energy costs in check. The recent AccelerateEU communication reconfirms that energy demand reduction measures are both essential to cut fossil fuel imports rapidly and with long-lasting effects.  

How should the new post-2030 energy efficiency framework look like?  

Next decade’s rules must build on what has worked, ensuring continuity and stability, while focusing on making energy efficiency solutions easier to adopt and more affordable. First, a combination of an overall target, which sets the course, with policies and measures, which provide enabling conditions, must be maintained. A 2040 EU energy efficiency target, underpinned by legislation, will ensure the direction and coherence for further cross-sectoral and national actions.  

Second, the post-2030 framework should be designed for EU energy independence, building on the actions from AccelerateEU. Energy efficiency policy must support the phase-out of fossil fuels and accelerate renewables-based electrification. For example, comprehensive buildings renovations are the best insurance for Europeans against future energy crises. 

Third, it should put a stronger emphasis on providing support to companies, especially the smallest ones, to uptake energy efficiency technologies. The most competitive company is the most energy efficient one: according to the EIB, firms that implement energy efficiency measures outperform those without these measures, making them structurally more resilient to price shocks. 

Finally, and most importantly, the framework for next decade must put citizens, particularly the most vulnerable, at its core, and be shaped to serve their needs. If Europeans are not empowered to make the changes the energy transition requires, they might not embrace it, if not oppose it altogether.  

The ongoing energy crisis is yet another reminder of the importance for the EU to cut energy demand, becoming truly independent and more resilient in times of geopolitical uncertainties. Implementing the existing energy efficiency framework and setting a post-2030 legislation that builds on its successes is an imperative for energy security, competitiveness and affordability. 

Recommended links:

1. Energy Efficiency Delivers: Turning Policy Into Impact
2. Unlocking energy efficiency investments by small firms and mid-caps
3. European Citizens’ Energy Efficiency Panel 

About the authors

Arianna Vitali Roscini is Secretary General at the Coalition for Energy Savings since 2021. She has almost 20 years’ experience in energy efficiency policy at the EU level. Before joining the Coalition, she was Senior Policy Advisor at BPIE where she managed research projects and steered BPIE work related to the Renovation Wave. Previous to that, she was part of the climate and energy team of the WWF European Policy Office, where she coordinated WWF advocacy on energy savings in Europe.  

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Neither the European Commission nor any person acting on behalf of the Commission is responsible for the use that might be made of the information in the article. The opinions expressed are those of the author(s) only and should not be considered as representative of the European Commission’s official position.