Orgalime Blog

President, Hon. Heads of State and Members of the European Council,

Orgalime, the European engineering industries association, whose members’ annual turnover is some 1800 billion euro and which employ over 10 million staff in the EU, is writing to you to urge you to adopt of an integrated European 2030 Energy and Climate Change Framework at the occasion of the European Council meeting on 23/24 October 2014.

Such a decision is urgently needed to encourage investments into innovative areas of cutting edge technologies that will pave the way towards Europe´s future low carbon, energy efficient economy with higher levels of energy independence, greater security of supply and overall sustainability of the energy system.

We believe that a binding EU 40% lead carbon target, coupled with EU-level commitments for energy efficiency and renewable energy sources beyond 2020, will provide a new impetus for sustainable growth and jobs in Europe and will overall boost the competitiveness of EU industry.

We particularly welcome the fact that the Commission has now closed the gap in its initial 2030 Framework proposal with a 30% energy efficiency target*, which we consider as both, feasible and reasonable, provided that the right instruments for implementation are put into place.

Indeed, if Europe wishes to deliver on its carbon target, control energy prices, increase the integration of renewables into its energy system and become world leader in this area, action inevitably needs to go hand in hand with energy efficiency and the development of an integrated energy system, including interconnected infrastructures. Increasing the efficiency of equipment, which is often reaching its technical limits, will not suffice. The challenge is to better exploit the energy savings potentials at system and market level, which requires a future energy retail model that facilitates greater involvement of energy end users and distributed generation in a truly consumer-centric, competitive energy market.

This can only be achieved through instruments, such as the governance process, the Energy Efficiency and Energy Performance of Buildings Directives rather than through further product regulation under the Ecodesign Directive or its pending review, which risks breaking today´s delicate balance between cost efficiency, environmental improvement, product functionality and affordability.

To conclude, we call upon European regulators to set in place a robust 2030 Energy and Climate Change Framework in support of the EU´s Industrial Policy, and particularly the overall aim to reach a 20% share of
manufacturing output in the EU’s GDP by 2020.

Considering the international dimension of this debate, we encourage the EU to make the necessary efforts to obtain a global and legally binding climate agreement at the UN-FCCC in Paris in 2015. It is essential that other regions of the world show a comparable degree of ambition and take similar action.

Yours faithfully,

Sandro Bonomi

President, Orgalime

* Previously, Orgalime felt that a 40% energy efficiency target should be set considering the 2050 perspective. We consider the suggested
30% as a step in the right direction, which should be supported, while we ask for maintaining a forward looking, proactive attitude.

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