DIÁLOGOS SETORIAIS UNIÃO EUROPEIA - BRASIL Climate change and energy efficiency CLIM0001 F. Javier González Vidal 25/05/2013 This project has been developed under the contract of the European Commission with reference EuropeAid/130075/C/SER/BR to support the sectoral dialogues EU – Brazil. This report aims at the exchange of experiences and the collection of elements to support the Brazilian government in the formulation and implementation of policies related to energy efficiency also covering the scope of environmental policy. The report reproduces to a large extent several fragments of some references cited in the bibliography, which correspond to work developed for the European Commission by external consultants and that are available on the website Europe.eu “How could I look my grandchildren in the eye and say I knew what was happening to the world and did nothing.” David Attenborough “In the old world that is passing, in the new world that is coming, national efficiency has been and will be a controlling factor in national safety and welfare.” Gifford Pinchot (1865 - 1946) 2 SUMMARY This project has been developed under the contract of the European Commission with reference EuropeAid/130075/C/SER/BR to support the sectoral dialogues EU – Brazil. This report aims at the exchange of experiences and the collection of elements to support the Brazilian government in the formulation and implementation of policies related to energy efficiency also covering the scope of environmental policy. The report reproduces to a large extent several fragments of some references cited in the bibliography, which correspond to work developed for the European Commission by external consultants and that are available on the website Europe.eu. The report is divided in four chapters. The first chapter introduces the approach in the European Union (EU) to climate change and energy efficiency. It starts with a brief introduction to the EU legislative procedure and a description of some of the most relevant actors in these topics, its competences and its relations. It follows with some examples of the government structures applied in several Member States that show substantial different approaches. It also provides a general overview of the EU legislation on energy efficiency and climate change, with a special focus on the EU Climate and Energy Package and the Energy Efficiency Directive. Eventually, a brief description of the financing scenario and programmes in place is provided. The second chapter performs an analysis of energy consumption and greenhouse gas emissions in the EU, focusing on an end-user analysis published by the European Environmental Agency to identify the most relevant sectors: building, transport and industry. For each of these sectors, an assessment of the potential, the policy options and some examples of best practices have been reproduced from reports published by the European Commission in its website, with special recognition to the work series “Next phase of the European Climate Change Programme: Analysis of Member States actions to implement the Effort Sharing Decision and options for further community-wide measures”, elaborated by the AEA Group, Ecofys and the Fraunhofer Institute for Systems and Innovation Research. This second chapter includes also a final section on cross-cutting issues, where the situation and potential of the Energy Services Companies and the Green Public Procurement is discussed. Based on the fact that a monitoring system is key in order to assess the effectiveness of the policies and measures implemented both at the EU and national levels, the third chapter describes the ODYSSEE- MURE project. Coordinated by ADEME, it is one of the main energy efficiency monitoring tools that is based on a set of databases containing both indicators and measures. Eventually, this chapter also gives an overview of the energy efficiency trends in the EU, reproducing parts of the brochures published in the project website elaborated by Enerdata. The forth chapter provides some conclusions and recommendations derived from the information included in the report, and could serve as a final synthesis. The fifth chapter includes the references of the reports and documents that have been consulted for the elaboration of this report. Last but not least, I would like to share my appreciation and gratitude towards the colleagues of the Ministry of Environment of Brazil in charge of the project (Alexandra Albuquerque Maciel and Ana Lucia Dolabella) and Mr. Hamilton Pollis, who helped me throughout the course of this work and provided me with great advice and a lot of useful information. 3 CONTENTS 1.1. The EU and the legislative procedure...............................................................................7 1.2. EU Competent authorities and their competences..........................................................10 European Commission.......................................................................................................10 D.G. Energy.......................................................................................................................12 D.G. Environment...............................................................................................................14 D.G. Clima.........................................................................................................................15 European Environment Agency..........................................................................................15 Joint Research Centre.......................................................................................................16 Executive Agency for Competitiveness and Innovation......................................................16 The Covenant of Mayors....................................................................................................17 Agency for the Cooperation of Energy Regulators.............................................................17 1.3. Member States competent authorities and their competences........................................18 1.4. EU Legislation on energy efficiency and climate change. Mutual interactions and incentives...............................................................................................................................23 European Climate Change Programme.............................................................................23 EU climate and energy package........................................................................................24 EU emissions trading system (EU ETS).........................................................................24 Effort Sharing Decision (ESD)........................................................................................27 Renewable energy (RES)...............................................................................................28 Carbon capture and geological storage (CCS)...............................................................29 Energy Efficiency Plan and Energy Efficiency Directive.....................................................30 Energy taxation .................................................................................................................35 Roadmap for moving to a competitive low-carbon economy in 2050..................................35 1.5. Financing........................................................................................................................38 2.1. EU analysis of energy consumption and greenhouse gas emissions..............................53 2.2. An energy end-user analysis...........................................................................................55 2.3. Building sector................................................................................................................59 2.3.1. Characteristics of the building sector........................................................................59 2.3.2. Policy options...........................................................................................................62 EU Policy Landscape......................................................................................................62 National Policies.............................................................................................................63 Financial measures.....................................................................................................63 Regulatory framework and standardization.................................................................65 Information, capacity building and market transformation...........................................65 Voluntary agreements.................................................................................................65 Market based instruments...........................................................................................66 2.3.3. Best practice examples............................................................................................66 4 White Certificates Scheme.............................................................................................67 Capacity building and training in the EU.........................................................................75 Financial measures for building construction and renovation..........................................79 2.4. Transport sector..............................................................................................................84 2.4.1. Characteristics of the