Letter to Commissioner Hedegaard

To the kind attention of Connie Hedegaard
European Commissioner for Climate Action
European Commission, DG Climate Action
B-1049 Brussels (Belgium)
cc José Manuel Barroso
President of the European Commission
cc Antonio Tajani
Vice President of the European Commission
European Commissioner for Industry and Entrepreneurship
cc Günther Oettinger
European Commissioner for Energy
cc László Andor
European Commissioner for Employment, Social Affairs and Inclusion
Brussels, 20 November 2012
Dear Commissioner Hedegaard,
Re: Binding energy savings target in the EU Energy and Climate framework for 2030
We, the undersigned, understand that the College of Commissioners is due to meet soon, for an
orientation debate on the European Union (EU) Energy and Climate framework for 2030. This is an
important opportunity to address a major shortcoming in the current Energy and Climate Strategy for
2020—that is, the lack of a specific binding target for energy savings which is vital for meeting the
economic and sustainable growth needs of the European community in the coming decades.
Our concerns regarding the framework for 2030 involve its potential impacts on the European economy
with respect to three areas in particular: competitiveness, job creation, and economic growth. And each
of these areas is strongly affected by the primary benefit of any target—regulatory certainty. Such
certainty helps all sectors of the business community to establish firm goals, develop plans to meet the
goals, and execute those plans, thereby laying the groundwork for robust and stable economic activity.
Experience in the renewable sector, for example, has shown what certainty can do for attracting
investments and creating markets.
[email protected]•www.euase.eu
Competitiveness
In its 2013 work plan, the European Commission explicitly recognizes the strong connection between
energy efficiency and competitiveness. 1 This connection stems from several factors, including the ability
of energy-efficiency measures to help decouple economic prosperity from matters related to energy
supply—many of which have proven extremely volatile in recent years.
Some of those matters are political in nature; others relate to pricing. 2 But by reducing its overall energy
needs, the European business community can improve its flexibility and responsiveness to changing
markets, thereby giving itself a competitive edge over regions of the globe that remain crippled by their
ever-increasing energy needs.
In this way, an energy savings target would help the European business community to shore up its
operational defences—which, in turn, would strengthen our position when facing competition in the
world arena. Such measures would also improve the ability of our community to compete in a future
world of diminishing energy supply.
Job Creation
An energy savings target would help to spur job creation not only by virtue of the jobs that are directly or
indirectly tied to the implementation of energy-efficiency measures but also by providing the impetus for
the development and manufacturing of exportable technology. Jobs created as a result of such activities
are especially attractive because most of them are local and not easily outsourced to other world
regions.
In addition, the cost savings that result from energy-efficiency measures can be reinvested by businesses
to promote job growth in the EU rather than being lost to economies from which energy resources are
imported. And here again, the regulatory certainty that accompanies targets allows businesses to act
decisively to carry out hiring plans rather than delaying such plans indefinitely with an eye toward
reducing risk.
Economic Growth
The economic health and flexibility of any business depends in part on its ability to obtain the financing
needed to invest in growth-related projects. In an environment of regulatory uncertainty, however,
banks and other financing institutions are reluctant to provide the funds necessary for such projects—
especially in the fragile economic environment that currently exists in the EU.
By establishing a firm energy savings target, the 2030 framework can help stabilise those factors that
affect the ability to obtain financing for business-related energy-efficiency projects. And by so doing, the
measures can promote the decision making that leads to the growth of individual businesses and
sustainable economic expansion at large.
1
Commission Work Programme 2013, COM(2012) 629 final, Strasbourg, 23.10.2012
Commission staff working document on the impact assessment accompanying document to the communication from the Commission to the
European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions Energy Efficiency Plan 2011
{COM(2011) 109} final {SEC(2011) 278} final {SEC(2011) 279}final {SEC(2011) 280} final
2
[email protected]•www.euase.eu
The European business community has proven itself to be highly adaptable and capable of responding to
challenges when the parameters of those challenges are known. We believe that by setting a binding
energy savings target in its Energy and Climate framework for 2030, the European Commission can help
to create a better-defined economic environment that can serve the EU in the short term and solidify its
long-term position as a competitive player in the world arena.
We look forward to discussing these issues with you in more detail.
Yours sincerely,
Monica Frassoni
President of the European Alliance to Save Energy
Tony Robson
Chairman of the European Alliance to Save Energy
Group Chief Executive Officer, Knauf Insulation
Niels B. Christiansen
President and Chief Executive Officer, Danfoss
Claude Breining
Vice-Chairman of the European Alliance to Save Energy
Head of European Affairs and Strategic Influence,
Schneider Electric
Garrett Forde
Chief Executive Officer Philips Lighting EMEA
Sumir Karayi
Chief Executive Officer, 1E
Gene M. Murtagh
Chief Executive Officer, Kingspan
Catia Bastioli
President of Kyoto Club
Chief Executive Officer, Novamont S.p.A.
Johannes Meier
Chief Executive Officer, European Climate Foundation
[email protected]•www.euase.eu
About the European Alliance to Save Energy (EU-ASE)
EU-ASE was established in December 2010 by some of Europe’s leading multinational companies. The
Alliance creates a platform from which our companies (Danfoss, Philips, Schneider Electric, Knauf
Insulation, Siemens, 1E, Kingspan and Opower) can join with politicians and thought leaders to ensure
the voice of energy efficiency is heard from across the business and political community.
Members
Honorary Members
Bendt Bendtsen
Member of the European Parliament
(Denmark, EPP)
Bas Eickhout
Member of the European Parliament
(Netherland, Greens)
Fiona Hall
Member of the European Parliament
(UK, ALDE)
Pieter Liese
Member of the European Parliament
(Germany, EPP)
Judith Merkies
Member of the European Parliament
(Netherland, S&D)
Anni Podimata
Member of the European Parliament
(Greece, S&D)
[email protected]•www.euase.eu