Impact assessment of EU 2030 energy efficiency targets

In the context of the Energy Union & Energy Efficiency First – Towards a cost benefit analysis

Published: 28/06/2016

The European Commission’s impact assessment of the 2030 energy efficiency targets concluded that a target of 27% savings compared to baseline would result in the lowest energy system costs. This impact assessment thereby takes a private perspective to analyse the costs.

This study, carried out for and together with The Coalition for Energy Savings, analysed the effect on the results when taking a societal perspective. This was done by applying a societal interest rate in assessing and comparing costs and benefits of energy efficiency measures.

The use of a societal interest rate revealed significant potential to achieve higher energy efficiency targets for the EU. When applying a societal interest rate, the benefits exceed the costs for the scenarios reflecting energy efficiency targets up to 35%. When also considering lifetimes of energy efficiency measures of 30 years, the 40% energy efficiency scenario was found to be cost effective.

The outcomes of the study are a contribution to the debate on defining suitable energy efficiency targets for Europe and have been reflected in the European Parliament's report on energy efficiency legislation implementation.

Please find additional information in The Coalition for Energy Savings’ press release: Parliament raises the stakes for higher ambition on EE Directive review.

An updated study has been published following the EC's revision of the impact assessment in November 2016.