Policy Overview

The Energy Efficiency Directive 2012/27/EU (EED) establishes binding measures and targets in order to increase energy efficiency across the EU. Its review under the Green Deal, proposed in June 2020, aims to increase the target (currently 32.5%) to align with the EU’s new economy-wide 2030 emissions reduction target of 55%. The reform will review mandatory national level mechanisms, such as the energy savings obligation, and update measures to tackle energy efficiency in road transportation. It will also update provisions for heating and cooling relating to private and public housing and renovation.

Policy Passed

After intense negative engagement on the EED from the heavy industry sectors, the final policy, adopted in September 2023, implemented weaker energy efficiency targets and a less ambitious Energy Savings Obligation reform.

InfluenceMap Query

Energy and Resource Efficiency

Policy Status

Inactive: completed. The file was approved in July 2023 and entered into force in September 2023.

  • European Parliament: Industry, Research and Energy (ITRE) Committee
  • Rapporteur: Niels Fuglsang (Socialists & Democrats)
  • European Council: Energy ministers and the Working Party on Energy

Evidence Profile

Key

opposing not supporting mixed/unclear
supporting strongly supporting

European Commission

European Parliament

European Council

Policy Engagement Overview

The aggregated evidence of corporate and industry lobbying on the update of the EED shows intense, negative engagement from heavy industry sectors such as steel and chemicals.

Long-term Lobbying Trends

Heavy industry sectors did not support reforms to the EED to accelerate reducing energy consumption, including chemical, steel and refining industry associations Cefic, Eurofer and FuelsEurope, and company BASF.

The energy, utilities and heavy industry sectors did not support measures to phase out fossil fuels in the EED. The International Association of Oil and Gas Producers (IOGP), Snam and PGE opposed phasing out fossil fuels in heating systems. Associations Eurogas, Gas Distributors for Sustainability, Cefic, IFIEC and Eurofer and company Naturgy opposed excluding energy saved from the use of direct fossil fuel combustion from the Energy Savings Obligation from 2024.

EU industry did not seem to support binding national targets with significant advocacy for indicative targets, including the utilities sector, such as actors Eurelectric and Enel. FuelsEurope and Business Europe advocated for an energy intensity target instead of binding energy efficiency targets.

The utilities and renewables sector supported the EED revision, including SmartEn, SolarPower Europe and Eurelectric. Corporate Leaders Group (CLG), and SolarPower Europe advocated for higher binding targets in the EED than those proposed by the EU Commission.

New Lobbying Trends on the EU Commission proposal since July 2021

Heavy industry, utilities, and cross sector associations did not support the increase of the annual energy savings obligation to 1.5%, including associations BusinessEurope, the Federation of German Industries (BDI), IFIEC, and company Enel.

Heavy industry associations did not support stringent criteria for high efficiency cogeneration (CHP). This included Cefic, IFIEC, the Confederation of European Paper Industries (CEPI) and Eurofer.

There was cross sector support for buildings energy efficiency reform proposals, including associations Cefic and CLG and company Snam.

Impacts on Policy Ambition

By considering the potential scenarios in the EU Commission's original Impact Assessment Report for the EED reform, and comparing this to the final proposal, a gauge of the impact of industry lobbying can be taken. In this case, intense engagement from actors across the EU economy appears to correlate to the adoption of several weaker positions by the EU Commission and Council.

EU Commission Proposal

  • EU level target: The EED reform proposed to increase the EU-level target to 36% for final and 39% for primary energy consumption, up from 32%.

  • National level targets: Binding national-level targets which were included in the impact assessment were not proposed by the Commission, although a delivery mechanism was incorporated to ensure that Member States were making sufficient progress on the EU-level target.

  • Energy savings obligation: The national level energy savings obligation was proposed to increase from a mandatory target of 0.8% annually to 1.5% from 2024, which is close to the highest proposed ambition in the EED impact assessment of (1.6%). Measures that promote direct fossil fuel combustion would no longer be eligible to contribute to the energy savings obligation.

  • Heating and cooling provisions: A phase out date for fossil fuels in heating included in the impact assessment was not proposed after intense opposition from industry.

  • REPowerEU amendment: The amendment of the EED in May 2022 through the REPowerEU proposal increased the EU-level target to 39% and 41.5% for final and primary energy consumption respectively.

EU Parliament Position

The EU Parliament’s position strengthened the EU Commission’s proposal in September 2022 by increasing energy efficiency targets, however it weakened the Energy Savings Obligation’s measures on fossil fuels.

  • EU level target: The proposal raised the EU-level target for reducing final and primary energy consumption to 40% by 2030 and 42.5% in primary energy consumption respectively.

  • National level targets: EU Parliament proposed binding national contributions to achieve the overall energy efficiency targets with milestones in 2025 and 2027.

  • Energy Savings Obligation: The proposal increased the ESO to 2% annually from 2024. However, the fossil fuels exclusion was delayed from 2024 to 2028, except for residential buildings. Up to a fourth of annual energy savings from fossil fuel combustion would count towards the ESO until 2028.

EU Council Position

The EU Council’s proposed reform of the Energy Efficiency Directive significantly weakened the ambition of the EU Commission’s proposal.

  • EU level target: The EU Council maintained the Commission’s level of ambition, but proposed that only the final energy consumption target would be binding.

  • National level targets: The EU Council proposed that national contributions remain non-binding and based exclusively on final (not primary) energy consumption.

  • Energy Savings Obligation: The EU Council proposal gradually increased the energy savings obligation from 1.1% in 2024 to 1.5% from 2028-30. It also proposed to allow energy savings from fossil fuel combustion to count towards the energy savings obligation in the industrial sector in “duly justified cases.”

Policy Adopted

The European Commission, Parliament, and Council of the EU adopted the revised EED in July 2023. The agreement weakened several elements of the policy compared to the negotiation positions of the EU Commission and Parliament. The Energy Savings Obligation only excludes energy savings from fossil fuels in residential buildings, setting obligations in a staggered approach until 2030 (average of 1.3% in 2024 increasing to 1.9% in the period between 2028 and the end of 2030).

InfluenceMap Query

Energy and Resource Efficiency

Policy Status

Inactive: completed. The file was approved in July 2023 and entered into force in September 2023.

  • European Parliament: Industry, Research and Energy (ITRE) Committee
  • Rapporteur: Niels Fuglsang (Socialists & Democrats)
  • European Council: Energy ministers and the Working Party on Energy

Evidence Profile

Key

opposing not supporting mixed/unclear
supporting strongly supporting

European Commission

European Parliament

European Council

Live Lobbying Alerts

German chemicals association VCI expresses concern about policies under the EU Green Deal

16/12/2022

On 2nd November, the German chemicals association Verband der Chemischen Industrie (VCI) published an evaluation of the EU Green Deal. In the text the association generally supported the EU’s 2050 target, but expressed major concerns about different elements of the EU ETS reform, the Carbon Border Adjustment Mechanism, Energy Efficiency Directive and Renewable Energy Directive.

Corporate Leaders Group Europe and SolarPower Europe advocate for more ambitious EU energy targets

11/11/2022

In an open letter to the President of the EU Council on 18th October, Corporate Leaders Group Europe and SolarPower Europe advocated for more ambitious, binding targets in the EU Energy Efficiency Directive and the EU Renewable Energy Directive.

VNO-NCW supports fossil fuel financing and exemptions for heavy industry in EU

28/10/2022

De Trouw reported on the 13th October that The Confederation of Netherlands Industry and Employers (VNO-NCW) supported exemptions for heavy industry from the EU energy efficiency legislative tool, the Energy Savings Obligation, in the Netherlands for the past 20 years, justifying the exemption by stating that industry is already regulated under the EU Emissions Trading System. De Trouw reported on the 17th October that VNO-NCW did not support the planned phase out of Dutch overseas fossil fuel financing by 2023, advocating that this should continue until 2030 since fossil gas is a transition fuel, and that Dutch companies developing fossil fuels in developing countries will be replaced by Russia and China.

Fortum opposes measures to strengthen EU energy policies

07/10/2022

In a 26th September blog post on its corporate website, Fortum advocated for the REPowerEU proposal to support a technology neutral approach and provide less of a focus on renewable energy. The post did not support strengthening European energy efficiency policy and reducing energy demand, stating it would overlap with other climate objectives and the EU Emissions Trading Scheme. It also did not support stringent criteria for renewable hydrogen production, including the additionality principle, in the EU Renewable Energy Directive reform.

BDI opposes policies under the EU's Fit for 55 package, supports sustainable fuel quotas

07/10/2022

The Federation of German Industries (BDI) published a position paper on the EU’s Fit for 55 package on 20th September, in which the association laid out its opposition to the 2035 zero emissions vehicle standard proposed by the EU Commission. In addition, the association supported quotas for low-CO2 and climate neutral aviation fuels as part of ReFuelEU Aviation, while emphasizing the risk of carbon leakage and the need for flexibility to compensate for additional costs, and called for "ambitious but realistic" quotas for biofuels in the Renewable Energy Directive (RED).

In the same position paper, BDI advocated for a Carbon Border Adjustment Mechanism (CBAM) test phase which only includes industries that support it, and the maintenance of free emissions allowances in the EU Emissions Trading System (ETS). Furthermore, the entity supported the extension of the EU ETS for road transport and buildings, but not for aviation, and it did not support “inappropriate” Minimum-Energy-Performance-Standards (MEPS) in the Energy Performance Buildings Directive (EPBD), as well as not supporting an energy consumption cap in the Energy Efficiency Directive (EED).

VCI opposes the proposed EU ETS reforms and supports expanding fossil fuel infrastructure

05/08/2022

The German chemical association VCI published a new position paper on EU climate laws on 12th July, criticizing the EU Emissions Trading System (EU ETS) reforms and the planned phase out of free allocation of certificates, as well as not supporting absolute energy savings targets as part of the EU Energy Efficiency Directive. Meanwhile, on 25th July, VCI emphasized in a tweet the importance of Germany becoming independent of Russian gas, supporting the role of LNG terminals and coal as means to do so.

Eurogas and GD4S advocated on EU Energy Efficiency Directive with mixed positions

30/06/2022

In a 22nd June joint letter to the EU Council, industry associations including Eurogas and Gas Distributors for Sustainability (GD4S) called for the EU Energy Efficiency Directive revision to extend the energy savings obligation to include renewable and decarbonized gases in the residential heating sector.

Eurofer supports weakening RED and EED

27/05/2022

In a position paper published on 19th May, Eurofer advocated to weaken the reform of the Renewable Energy Directive (RED) by supporting the inclusion of recycled carbon fuels and advocating for more flexible additionality criteria. The association also did not support proposed GHG emission standards for cogeneration in the Energy Efficiency Directive reform.

Corporate Leaders Group calls for more ambitious EU climate policies

23/05/2022

On 11th May, ahead of the REPowerEU plan, Corporate Leaders Group (CLG) Europe published a joint letter that advocated for increased ambition on the Renewable Energy Directive, and advocated for increased ambition and action on the Energy Efficiency Directive and Energy Performance of Building Directives.

ERT supports EU renewable energy and energy efficiency regulations

18/05/2022

In a 12th May statement, the European Round Table for Industry (ERT) communicated high-level support for the EU's Renewable Energy Directive and other renewable energy incentives, including power purchase agreements. In the same statement, ERT supported an acceleration of energy efficiency initiatives, and for a number of measures to strengthen the proposed Energy Efficiency Directive.

BusinessEurope opposes EU energy efficiency legislation

24/03/2022

In a letter to the Chair of the EU Environment Council on 16th March, BusinessEurope opposed energy efficiency legislation (e.g. Energy Efficiency Directive), arguing against “formulating energy efficiency goals in terms of absolute reduction of energy consumption”, and suggesting that they should focus on optimizing energy intensity.

EU heavy industry groups called for less stringent cogeneration efficiency measures

09/03/2022

In a joint statement, published on 2nd March, energy-intensive associations including Eurofer, the International Federation of Industrial Energy Consumers and the Confederation of European Paper Industries advocated for less stringent measures for high-efficiency cogeneration (combined heat and power, CHP) in reforms to EU climate policy. The statement advocated against strong criteria for high-efficiency CHP in the Energy Efficiency Directive and was supportive of exemptions for high-efficiency CHP in the Energy Taxation Directive.

BDI opposes elements of the EED

14/01/2022

In feedback to the EU Commission in November 2021, the Federation of German Industry appeared to not support the EU Energy Efficiency Directive, advocating for a review of the definition of "energy efficiency", stating that a cap on energy consumption is limiting industrial decarbonization, and describing new energy savings target of 1.5% as "unrealistic."

BusinessEurope has mixed position on EU climate legislations

03/12/2021

BusinessEurope released a position paper on the Fit for 55 package, which supported the revision of the Renewable Energy Directive with major exceptions regarding the implementation of binding targets and the inclusion of bioenergy. It did not support several reforms to the Energy Efficiency Directive as it was unsupportive of the increase in energy savings obligations and excluding the direct use of fossil fuels to achieve energy savings.

IFIEC appears unsupportive of EU energy regulations

26/11/2021

In a position paper on the EU’s Renewable Energy Directive (RED), the International Federation of Industrial Energy Consumers (IFIEC)advocated that the policy should be based on technology neutrality and supported including recycled carbon fuels in RED. The position paper also supported the revision of the Energy Efficiency Directive with major exceptions as it stressed that low-carbon technologies use more energy than fossil fuels.

CEFIC supports the Energy Efficiency Directive, but with exceptions

17/11/2021

Cefic released a position paper detailing its position on the EU Commission’s proposed reform to the Energy Efficiency Directive, which supported the revision but with major exceptions. The association supported increased flexibilities for Member States to meet energy efficiency contributions, and opposed the exclusion of energy savings which could be achieved from the efficient use of fossil gas in contributing to Member States' energy savings obligations. Despite this, the group set out its support for energy efficiency legislation for buildings.

EnBW announces EU policy positions

04/11/2021

EnBW released a COP26 page on its corporate website discussing several elements of EU climate policy. The company stated support for the reforms made to the EU ETS, in particular suggesting waiting till after 2030 to integrate emissions trading systems for the buildings and road transport sectors.

However, the company appeared to advocate against increased ambition in the EU’s Energy Efficiency Directive, highlighting issues with the inclusion of new CHP high-efficiency criteria. Similarly, it supported a weakening of the EU’s Renewable Energy Directive, by suggesting the criteria for renewable hydrogen and bioenergy were too strong.

Finally, EnBW advocated for a greater role for fossil gas in EU policy. The company called for the weakening of the EU's taxonomy, particularly by including fossil gas for heating/cooling generation as a transitional activity. EnBW also suggested that the EU's Hydrogen and Gas Decarbonization Package applies too much pressure to transition away from fossil gas.

The German Chemical Industry (VCI) voices opposition to EU Energy Efficiency Target

22/09/2021

In a press release this week, the Director General of the VCI Wolfgang Große Entrup stated opposition to the EU’s Energy Efficiency Target, asserting that fossil free technologies use more energy than fossil fuels.

Entities Engaged on Policy

The table below lists the entities found to be most engaged with the policy. The entities are ranked by performance band. InfluenceMap tracks over 500 companies and 250 industry associations globally. Each entity name links to its full InfluenceMap profile, where the evidence of its engagement can be found.

Influencemap Performance BandOrganizationPolicy PositionPolicy Engagement Intensity