by Shane Henson — June 29, 2011—The European Union (EU) has set a new energy efficiency directive with the aim of saving energy and reaching the target the EU has set itself: by 2020, the EU wants to cut energy consumption by 20 percent.
As part of the directive, energy companies will have to offset sales with energy-efficiency measures, and public buildings will face green makeovers. Europe’s utilities could be obliged to save 1.5 percent of their energy sales by volume by installing more efficient boilers, fitting double-glazed windows, and insulating lofts for their customers.
Companies may also have the option of funding programs or voluntary agreements that generate the same results, depending on their domestic government’s implementation of the directive. The EU estimates that this measure alone will reduce its energy consumption by 6.4 percent in 2020, roughly equating to the current consumption of Poland and Portugal combined.
In addition, large companies would have to audit their energy consumption to help identify potential areas for reduction, while SMEs will be incentivized to do the same. Public bodies will also be required to renovate three percent of their buildings each year from 2014 so they meet energy efficiency standards.
The directive will need to be approved by the EU’s 27 governments and the European Parliament before it becomes law.
