Climate Law Week 3B

What is the difference between Energy Conservation, Energy Efficiency (EE), and Energy Savings?

• Energy Conservation: Reducing energy consumption by reducing a service

• Energy Efficiency: Reducing energy consumption while maintaining the same level of service. It is defined as the ratio of output (performance, goods, energy) to the input of energy

• Energy Savings: The amount of energy saved by comparing consumption before and after an efficiency measure, adjusted for external conditions

Define Energy Intensity and its role as a global indicator.

Energy intensity is the amount of primary energy used to produce a given amount of economic output or GDP. Under Sustainable Development Goal (SDG) Target 7.3 and COP28, the global goal is to double the annual rate of energy efficiency improvement (from roughly 2% to 4%) by 2030

What is the Rebound Effect and why does it complicate EE policy?

This occurs when an increase in EE leads to an increase in demand, potentially neutralizing emissions savings.

• Direct: Using the same service more because it is cheaper (e.g., driving more because the car is fuel-efficient)

• Indirect: Spending money saved from EE on other energy-intensive things (e.g., using savings from LED lights to buy a flight for vacation)

How does Energy Sufficiency differ from Efficiency?

While efficiency focuses on technological conversion, sufficiency focuses on behavioral changes to reach a level of energy demand consistent with human well-being and environmental limits. It is often proposed because efficiency alone may not be enough to meet climate targets due to the rebound effect

What is the EE1st Principle and when must it be applied?

It requires taking utmost account of cost-efficient EE measures in energy planning and investment decisions

Member States (MS) must assess EE solutions for major investment decisions exceeding €100 million (or €175 million for transport) in energy and non-energy sectors (like buildings or ICT) that impact energy consumption

What are the primary legal bases for EE in the EU and the specific 2030 target?

• Legal Basis: Art. 191(1) TFEU (prudent use of resources) and Art. 194(1)(c) TFEU (promotion of EE and energy saving).

• 2030 Target: The 2023/1791 Directive sets a binding EU target to reduce final energy consumption by 11.7% by 2030 compared to 2020 projections. MS must contribute collectively and set indicative national contributions

Why is the building sector a priority, and what is a Zero-Emission Building?

• Buildings account for 40% of energy consumed and 36% of GHG emissions in the EU

• Zero-Emission Building: A building with very high energy performance where the tiny amount of energy still required is fully covered by renewables and has no on-site carbon emissions from fossil fuels.

• Deadlines: New public buildings must be zero-emission by 2028; all new buildings by 2030

What are Split Incentives in the context of building renovations?

• This occurs when the person paying for the EE improvement (usually the owner) does not receive the direct benefit (the lower energy bills, which go to the tenant)

• Under the EE Directive Art. 22(9), Member States are obligated to identify and lift these barriers to encourage renovations in rented propertie