Energy Efficiency Policies in Europe Country Report

Transcription

1 Energy Efficiency Policies in Europe Analysis of National Energy Efficiency Action Plans and Policies in EU Member States 2014 Country Report Latvia Co-funded by the Intelligent Energy Europe Programme of the European Union

2 Key Points and Recommendations This report is one of 28 Country Reports published in 2015 by the Energy Efficiency Watch (EEW) project. It addresses 1) the changes in policies implemented since 2011 by EU Member States (MS) and their plans, based on the National Energy Efficiency Action Plans (NEEAPs) published in 2014 and other official, as well as 2) the feedback that was received from the quantitative survey and expert interviews on how effective policy implementation actually is (see more at efficiency- watch.org). Based on these results, it also offers recommendations on how Latvia s sectoral and overall energy efficiency policies could be further improved. Overview of Findings Since the second NEEAP, Latvia has made medium progress, which can be confirmed by document analysis and expert interviews. From a cross- sectoral perspective, only few additional policies have been implemented over the last three years some former instruments were abandoned. The majority of experts (65%) either consider the ambition of implemented energy efficiency policies as rather low or as ambitious in only a few sectors. Especially with residential and non- residential buildings, the rather gloomy energy outlook (provided by experts) offers substantial space for policy adjustment and experts lament the slow pace of building refurbishment. However, energy efficiency requirements for buildings are conceived as positive. Likewise, the uptake of energy- efficient appliances should be stressed. While experts are rather concerned about the trend in the transport sector, the document screening has found an expansion of policy instruments. Sectoral Progress The sectoral progress of policies is as follows: The number of energy efficiency policies in Latvia s overarching energy efficiency governance framework has expanded to some extent. However, most measures are ongoing. Experts are concerned, among other things, about the lower interest in energy efficiency at the national level, which goes hand in hand with difficulties in obtaining financing for energy efficiency projects, e.g. in municipalities. Regarding Article 7 of the Energy Efficiency Directive (EED), Latvia has opted to combine EEOs with alternative measures. With respect to the public sector, several policies are implemented, and some were newly introduced. The government newly requires public building owners to display a building s Energy Performance Certificate (EPC) prominently. Moreover, since % of the total floor area of Central government buildings have had to be renovated annually. On the local level, several positive trends were identified such as the renovation of public buildings with smart management systems in the City Liepaja. While such efforts suggest a positive trajectory for the sector, the government stopped its support for the provision of financing to municipalities for upgrading the lighting infrastructure. Furthermore, support for research and development (R&D) is still lacking and the government does not support the Energy Service Company (ESCO) community through e.g. financial incentives and training measures, which is considered to be a major bottleneck for realising energy- efficient public buildings. With respect to the exemplary role of public buildings, experts believe that there is rather no progress (21%) than good progress (16%). Numerous activities aim to improve the energy efficiency of residential buildings. Apart from the measures that were already in place in 2011, a few new instruments were introduced including, for example, the requirements for energy service providers to install electricity and heat meters accurately displaying the energy consumption of end- users as well as the National Climate Policy financing low energy buildings. Some measures were abandoned such as the Low Energy Building programme, which included support for project publicity measures. Above that, experts conceive funding to be one of the most important barriers to 1

3 energy efficiency in Latvia s residential buildings. However, the government does not offer sufficient support to overcome this bottleneck. The fact that the performance labelling system for buildings, which should inform future investors on the energy consumption of a building, does not work properly deteriorates the situation. As regards appliances in the residential sector, the document screening suggests that measures that were installed already in 2011 are ongoing. In particular, minimum energy performance requirements as well as the energy labelling are based on EU directives. Moreover, Latvia established an information centre as well as a website to inform end- users on the appliances energy consumption. However, a set of instruments is missing including economic incentives to purchase best- available technologies, education and training measures for retail staff and / or supply chain actors, as well as R&D support. With respect to industry and tertiary sector, most of the instruments are ongoing. The Cabinet Regulation on Industrial Energy Audits has recently been adopted and complements existing state subsidies for energy audits. Moreover, the government offers economic incentives for the uptake of building renovation, energy efficiency equipment, and building management systems. However, procedures implemented for voluntary agreements with sectoral stakeholders have not shown success yet. Above that, the programmatic or strategic direction appears to be evolving slowly. For instance, the type of companies targeted as well as their size seem to be unknown yet, according to experts. Last but not least, especially for the services sector, the lack of a fully- fledged ESCO market appears to hinder the realisation of energy savings. Compared to 2011, the policy landscape in the Latvian transport sector has expanded, even though experts perceive progress in the sector to be among the lowest in the EU. The Electromobility Development Plan drives the uptake of electric vehicles by designing a charging station network and through public education and information about Electromobility. This complements the also newly developed Environmental Investment Fund supporting electric vehicles as well as charging infrastructure. The replacement of diesel trains with electricity- based vehicles is another key measure. Cities also have been playing a key role in enhancing the transport system in Latvia. For example, Riga s public transportation system is considered to be improving and easy- to- use. Moreover, local authorities are promoting cycling. Recommendations Further improvements to the could be the following: Within the governance framework, Latvia intends to reach Article 7 by combining an obligation scheme with alternative measures. However, it has not been implemented due to legal issues. These issues should be clarified. Energy service companies should be supported by policy and the Energy Efficiency National Fund should be established. For the public sector, it is key to realise the 3%- target of annually renovated floor area, which will contribute to highlighting the exemplary role of public buildings in Latvia. For the near future, it appears crucial for the government to mandate energy efficiency plans for central government buildings and establish agreements for municipalities on enhancing their energy efficiency. Moreover, training and financial incentives for the ESCO community is another important issue to be addressed in Latvia. With respect to the residential building sector, several measures exist, but the financial barrier the key barrier to renovating residential buildings in Latvia should be better addressed through support schemes. In addition, the EPC should be adequately implemented. To increase the energy efficiency of appliances, economic incentives for purchasing the best available technology could be an opportunity to lower sectoral energy demand. Such an instrument could aim at specific target groups (e.g. low income households). It may be complemented, among other things, by education and training measures for retail staff, so 2

4 that information on the energy consumption of appliances is properly communicated to end- users. In the industry and tertiary sector voluntary agreements with stakeholders should, finally, become effective. As stated above, financial and technical support for ESCOs could be beneficial to realising energy savings in the commercial sector, as well. Considering the transport sector, the comprehensive set of policies established should be continued. Energy efficiency efforts on the local level should be rewarded or supported. Policy Developments according to Official Documents The next tables present 1) the policies that were implemented in 2011 in Latvia and 2) the policy changes after The policies are listed as the result of a document screening. Primarily, the screening takes into account the second and third NEEAP as well as Article 4, 5 and 7 communications of the Energy Efficiency Directive to achieve meaningful results. The Odyssee Mure database has also been a valuable source of information. Depending on the quality of information given in the official it has been analysed whether policies have been ongoing, abandoned/weakened or improved. It was not possible to assess how well these policies are implemented and which results they achieve. The changes in the policy design are illustrated with the following symbols: - means that the measure is ongoing without significant changes, - shows that the policy is new, - illustrates a policy that was abandoned, - ý shows a policy that is ongoing but that was weakened significantly, - þ presents a policy that is ongoing but that was improved significantly. Overarching Energy Efficiency Governance Framework Element of the Long- term EE target(s) and strategy Involvement of non- governmental and market actors, and sub- national authorities The National Development Plan Programme to foster the competitiveness of Econimic Activities and Innovation National Programme on Construction Latvia s Sustainable Development Strategy up to 2030 The Energy Law Energy Development Guidelines for the years Agreement on improving energy efficiency by promoting the implementation of industrial energy audits and energy management systems in companies The National Development Plan for the period was accepted in December 2012 The programme to foster competitiveness and the National Programme on Construction were expired The Sustainable Development Strategy, the Energy Law and the Energy Development Guidelines are ongoing. Guidelines for the years are currently developed Latvia s Long- term Energy Strategy 2030 competitive energy for Society was drawn to update existing policies and targets, including new policy guidelines for the period The Agreements between industry and the state are ongoing Regulation on Independent Experts in the Energy Performance of Buildings Latvia plans introduced Energy Efficiency Obligations (EEOs) with alternative measures. A draft of a new Energy Efficiency Law is currently discussed by the Latvia Parliament. 3

5 Element of the Energy agencies and climate protection agencies EE funds for overall coordination and funding of policies and measures EE obligation schemes for overall coordination and funding of policies and measures Favourable framework conditions for energy services Energy taxation higher than EU minimum requirements Riga Energy Agency Zemgale Regional Energy Agency Latvian Investment and Development Agency (LIDA) is a subordinate to the Ministry of Economics Climamte Change Financial Instrument (CCFI) is a state budget programme ( ) Other funds are the Structural Fund, the Cohesion Fund, and the SIA Environment Investment Fund The Energy Taxation is divided between three laws: (1) On Excise Duties (excise tax on oil products and natural gas), (2) Natural Resources Tax Law (taxation applicable for coal) and (3) Electricity Tax Law R&D support The Riga Energy Agency and the Regional Energy Agency still exist LIDA does no longer deal with the energy sector CCFI is ongoing until Currently revenues from the EU Emission Trading System are used for the national Emissions Quotas Auctioning Financial Instrument. It is not clear for which measures the revenues are used. The other funds are ongoing. The Structural Fund includes a new national programme Growth and Employment. The Structural Fund was the responsible institution supervising the programmes of Climate Change Financial Instrument An Energy Efficiency National Fund (EENF) shall be established. It provides financing in form of loans and grants. Municipalities may establish their own funds Latvia has opted to combine EEOs with alternative measures. Obligated parties are electricity sellers, distribution system operators and other actors It is planned to draft a special law to stimulate the energy service market Taxation of Subsidized Electricity started in 2014 and promotes and motivates the competitive production of electricity from renewable and in CHP units and penetration of competitive technologies. It was introduced to avoid increase of the component of feed- in payment in the total price of electricity Public Sector Element of the Public sector strategy Agreement on improving energy efficiency developing and implementing local authority energy efficiency action plans (planned) Sustainable Energy Action Plans for individual municipalities within the framework of the Covenant of Mayors The Agreement and the Sustainbale Energy Action Plan are ongoing measures but still in the planning phase Energy Efficiency Plan for premises owned or occupied by the central government (planned) Agreements on Improving Energy Efficiency in Municipalities (planned) 4

6 Element of the Public procurement Public buildings Green Public procurement for State authorities, local authorities associations. The terms are specified in accorance with the Public Procurement Law Green Public Procurement Guidelines were adopted in 2008 Reduction in Greenhouse Gas Emissions in the Lighting Infrastructure of the Public Territories of Municipalities. Financial support to municipalities in the introduction of lighting infrastructure Low energy buidlings withmeasures in local authority budilings (renovation plans, audits, heat supply switch etc.) Investments in Complex Solutions for Green House Gas Emissions Reduction in Vocational Education Institutions' Buildings & Investments in Higher Education Institutions' Buildings Energy Efficiency to Reduce Green House Gas emissions Improving energy efficiency in local authority buildings; Complex solutions to reduce green house gas emissions in local authorities buildings Solutions to reduce green house gas emissions in buildings housing state, resulting in minimum 60 buildings renovated Measures to improve the thermal stability of social housing with aim to improve EE of local authority social housing Information campaign on applying energy efficiency electrical equipment R&D support Draft amendment in 2014 to the Public Procurement Law. The public sector will be obliged to purchase only products, services and building with high EE performance The Reduction in Greenhouse Gas Emissions programme ended in 2015 Continuation of the Low Energy Buidlings project in The higher education measure will continue until Educational institutions of all type as well as health case institutions and culture sector institutions might apply The third measure will continute in the years The first programme was targeted to reduce heat energy only, the other activity was widened by including heat supply switch and lighting The improvement of thermal stability for social housing will be continued until 2015 The information campaign is ongoing Starting from 2014, 3% of the total floor area of central government buildings will be renovated Energy performance certificates of public buildings owned by the central government must be displayed in a prominent place Residential Sector Buildings Element of the Minimum Energy Performance Standards (MEPS) The Construction Law implements the Energy Performance of Buildings Directive (EPBD) The Construction Law is ongoing. A new construction law is in force from 1 October 2014 In 2012, the new Law on the Energy Performance of Buildings was adopted 5

7 Element of the Other Regulation Regulation for inspecting boilers and air conditing systems Energy efficiency requirements for heating supply systems specifies the requirements to improve the efficiency of heat production Minimal Requirements for Energy Efficiency of Residential Apartment Buildings to define the maximal annual heat consumption for multi- apartment buildings and to state the set of requirements for EE management Grants, tax incentives Low Energy Housing Measures to improve the thermal stability of apartment blocks with support for audits, insulation works, renovation, reconstruction of heat supply Investments to improve the thermal stability of social housing stock Financing instruments Energy performance Cabinet Regulation on energy certificates (EPCs) performance certificates for buildings Energy advice and audits Energy Audits are supported as part of several programmes like Low Energy Buildings, Improving EE in bulding housing higher education institutions and Improving energy efficiency in local authority buildings Agreement on improving energy efficiency by promoting the implementation of industrial energy audits and energy management systems in companies, and developing and implementing local authority energy efficiency action plancs since mid 2011 (including action plans, information programmes, audits) Law on the Energy Efficiency of Buildings: Cabinet Regulation on Energy Auditors These measures are ongoing The Minimal Requirements are updated regularly Low Energy Housing programme for residentail buildings finished þ The programme thermal stability of apartment blocks was improved, 614 projects were finished and 208 projects are under finishing (July 2015), greater cumulative targets than expected The programm for social housing will be continued until 2015 Increasing Energy Efficiency in Multi- Apartment Buildings: EU programme period , activities to be supported are renovation of buildings, energy certification and construction works (planned, implementation in 2016) Energy Performance Certificates are still in place The first mentioned programmes were ended in mid 2015 The Agreement is ongoing and part of the Article 7 notification The Regualtion on Energy Auditors was replaced with the implemmentation of the Energy Performance of Buildings Directive (2012). The Regulations in independent Experts in the Energy Performance of Buidlings is now in place Regulation in Independent Experts in the Energy Performance of Buildings was introduced in 2013 and sets out the requirements as to the competence of independent experts and the procedure for providing their competence 6

8 Element of the Information tools for investors and users Information campaign "Let's live warmer!" to encourage owners to renovate their buidling, to inform and consult relevant actors, increase understanding of EE and reduce heat consumption Promotion public understanding on the importance and possibilities of greenhouse gas emission reduction Demonstration projects Support programmes for low- energy buildings include support for project publicity measures, thus attributing a certain demonstration effect to these buildings/projects Education and training for building professionals Latvia has defined the levels of vocational education, levels of vocational qualifications and education necessary for the acquisition of a relevant vocational qualification. 35 programmes are accredited in architecture and construction R&D support Next period ( ) of Let s live warmer starts The promotion programme is ongoing Development of smart meters: energy service provider must install individual electricity and heat meters that accurately reflect the final customer s actual energy consumption Latvenergo is implementing the project Promoting Energy Efficiency in Households Using Smart Technologies. 500 households will be involved The measure Low energy buildings was abandoned, but it is allocated EUR 3 million only for public demonstration building projects : EEZ financial instrument EEA Financial Mechanism Programme National Climate Policy ( ): 5 low energy buildings are approved within the tender The programmes are ongoing Residential Sector Appliances Element of the Minimum Energy Ecodesign Directive Requirements for Ecodesign Directive Requirements Performance Standards (MEPS) energy- related products for energy- related products are ongoing Economic incentives Energy labels The EU Energy Labelling Directive is in No information on developments place according to EU Directive regarding the EU Energy Labelling 2010/30/EC. Directive Information tools Information centre and website Latvenergo. The website provides information on energy labels for electrical equipment, efficient lighting etc Education and training for retail staff and other supply chain actors R&D support Latvenergo is ongoing 7

9 Industry, Tertiary Sector, and Agriculture Element of the MEPS and other standards for equipment, production process, products Energy savings and action targets for individual companies Energy management systems and other obligations Economic incentives for investment Financial support for energy advice and audits The Ecodesign Directive was implemented Overall target for agreements on improving energy efficiency Agreements on improving energy efficiency by promoting the implementation of industrial energy audits and energy management systems in companies. The objective of the agreement is to achieve energy savings of at least 10% in the sector, company of local authority Complex solutions to reduce greenhouse gas emissions in manufacturing buildings. Improving EE of economic operators manufacturing buildings, technical equipment used for manufacturing and manufacturing technologies Agreements on improving energy efficiency by promoting the implementation of industrial energy audits and energy management systems in companies Energy labelling The EU Energy Labelling Directive is in place according to EU Directive 2010/30/EC. R&D support No information on developments regarding the Ecodesign Directive Overall saving target for the Latvian industry sector of 170 GWh in 2016 (in comparison to 2011). It consists of 2 measures: Investment support and agreements The measure is ongoing. The practical implementation of the voluntary measure has just started. An agreement shall be entered for a time period of up to five years. The action will continue. Renovation, energy efficiency equipment, lighting, building management control systems and RE sources will be supported. During the similar- content measure will be co- financed by the EU Cohesion Fund within the Operational Programme "Growth and Employment" The state may specify subsidies for energy audits and invididual energy efficiency improvement measures implemented in accordance with specific agreements Cabinet Regulation on Industrial Energy Audits lays down the procedure for carrying out industrial energy audits in large industrial enterprises, requirements as to the conformity assessment of energy auditors, as well as the procedure for monitoring the compliance with these regulations No information on developments regarding the EU Energy Labelling Directive 8

10 Transport Sector Element of the Planning instruments Improving the unified public transport route network: e.g. harmonising/reorganising parallel regional bus routes and intercity railways, harmonising timetables, organisation of harmonised public transport network (implemented) Integration of the sub- urban railway and public transport system in Riga Increasing the efficiency of the existing main road network and planning the transport system in the city of Riga Regulatory instruments Promotion of clean and energy efficient road transport by public procurement draft amendments to public procurement law Economic incentives Differentiated rates of new annual taxation system for cars (registered after ) depending on engine size, maximal power of engine and full mass of vehicle; taxation for cars (registered before ) depending only on full mass, many exemptions and/or reductions (e.g. 20% tax reduction for the only car owner of which has three or more under- age children (implemented, all vehicle owners); tax exemption for electric vehicles Special tax for business entities depending on engine size in order to compensate the private use of business vehicles Vehicle registration tax depending on age of car and engine size (for cars which have been registered for the first time abroad before ) respectively depending on CO 2 emissions factor (for cars which are previously non- registered or have been registered for the first time abroad after ) Excise duties for gasoline and diesel fuels, reduced tax rates/excise duties for gasoline with 70-85% of ethanol, diesel with at least 30% of biodiesel and pure biodiesel Information and advice Optimisation of public transport network Integration of the sub- urban railway and public transport system in Riga Increasing the efficiency of the existing main road network and planning the transport system in the city of Riga Electromobility Development Plan for : promotion of electric vehicles, construction of charging station network, innovative products, public education and information about electromobility Replacement of diesel multiple- unit trains by new electric multiple- unit trains Promotion of clean and energy efficient road transport by public procurement Annual taxation to vehicles: from tax reduction for families with at least three children will increase to 50% Special tax for business entitites to compensate private use of business vehicles Vehicle registration tax Excise duties for fuels, increased duty rate for oil gases (LPG) since 2014; the reduced tax rate for diesel with at least 30% (volume) mix of biodiesel was cancelled from Toll rates for the use of motorways for freight vehicles (>3.5t) Latvian Environmental Investment Fund, co- financed by the national Climate Change Financial Instrument (2014): funding for pure electric vehicles and installation of electric vehicle charging infrastructure, funding rates depend on business size, target group: public institutions and business entities Dissemination of information on technologies and approaches for reducing energy consumption (e.g. eco- driving) effectively: via press, TV, booklets (proposed for 2015 and ongoing years) 9

11 Element of the R&D support Policy Developments according to the Expert Survey In order to provide a fuller picture on energy efficiency progress made, this chapter makes use of information gained through quantitative surveys and qualitative interviews. For each country assessed in the EEW project, three experts were interviewed orally, while 19 national energy efficiency experts participated in the quantitative survey for Latvia. The experts work with the business sector, universities/research organisations, public sector or energy agencies. All findings below are solely based on the assessments made by these experts. This also includes the country progress indicators, which helps to compare the progress across countries and policy fields. It was calculated from five relevant questions of the quantitative survey (see annex for the questionnaire), namely question 1 (ambition of energy efficiency policies), question 2 (progress in the last 3 years), question 4 (annual savings target), question 7 (NZEB target) and question 8 (improvements in key energy policy areas). The answers were weighted (the most positive answer by 100, the least positive one by 0). According to the Latvian experts, Latvia is among the Member States that have made medium progress since the second NEEAP (country progress indicator: 15 out of 28). The rate of progress was slightly lower than in the three preceding years (2012 survey: country progress indicator: 12 out of 27). Two thirds of the experts perceive the ambition of the energy efficiency policies as rather low or consider it ambitious in only a few sectors. Nearly 70% see very few additional policies in the last three years. As in the 2012 survey, building renovation and its progress are seen as crucial issue by the experts. Even though some progress is made, the scale of renovation is considered to be insufficient, also due to the lack of funding. Here the experts ask for an increased role of ESCOs. The positive impact of the Green Investment Scheme was reported and a new funding mechanism was under preparation at the time of the survey. Also positively mentioned was the role of some local energy agencies in energy efficiency progress. 10

12 Latvia: overall ambihon of the energy efficiency policies 32% 16% Latvia: progress of the energy efficiency policies in the last 3 years 26% 5% 5% 52% 64% generally, rather low ambinous in a few sectors, less so in most others ambinous in a range of sectors, less so in a few others generally, rather high no or very liole progress a few addinonal policies a range of addinonal policies many addinonal policies More than half of the interviewees think that the EED savings target (new savings of 1.5% of the annual energy sales to final consumers) is not likely to be achieved. Relating to the introduction of an energy efficiency obligation scheme for energy distributors/retailers, experts report that at the time of survey, a draft law was under discussion to introduce such an obligation scheme. Similarly to the EED targets, more than half believe that Latvia is behind in meeting its obligation under the EPBD that all new buildings be "nearly Zero Energy Buildings" by Latvia: achievement of nahonal 1.5 % energy savings target (EED) Latvia: on track towards the "nzeb" obligahon 28% 17% 32% 16% 55% 52% not aware of this target target is likely not to be achieved target is likely to be achieved I don't know No, we are lagging much behind Yes, the implementanon is well underway In the public sector, some cities have become active in building renovation and implemented successful projects. However, the lack of funding remains a critical factor. 11

13 Similarly, in the residential sector, financing energy efficiency investments is a key obstacle. Also ownership issues hamper the progress in multi- family buildings (getting the majority of owners to agree to a renovation project). Progress in energy efficiency in Latvia's transport sector remains slow (it is perceived to be amongst the lowest across the EU countries). Latvia: improvement in actual implementahon Energy efficiency in transport 58% 42% Decreasing fuel poverty 55% 39% 6% Funcnoning of the energy service market Energy efficiency in industry Consideranon of energy efficiency in public purchasing 47% 37% 28% 48% 58% 66% 5% 5% 6% no progress some progress good progress Exemplary role of public buildings 21% 63% 16% Building renovanon 11% 78% 11% 0% 20% 40% 60% 80% 100% In terms of specific policy instruments, energy efficiency requirements for new and renovated buildings are viewed very positively by experts (both rated at least partly effective by 95%). Opinions are divided regarding financial incentives for private households, energy taxation and national energy efficiency funds, where similar percentages of experts consider them "partly to very effective" and "not effective at all". The highest ratings for "not effective at all" are given to inspection of heating/air- conditioning systems (61%) and targeted advice for private households (57%). 12

14 Latvia: effechveness of different policy instruments EE requirements for new buildings EE requirements for renovated buildings Energy labelling of products Energy cernficanon of buildings Smart metering Energy audits for companies Programmes for local energy planning Financial incennves for SMEs Financial incennves for private households Energy taxanon Targeted advice for households Nanonal Energy Efficiency Funds Inspecnon heanng/air- condinoning systems 5% 84% 11% 5% 84% 11% 5% 26% 48% 21% 11% 26% 58% 5% 11% 32% 57% 11% 33% 45% 11% 11% 33% 50% 6% 17% 33% 44% 6% 26% 37% 26% 11% 33% 33% 28% 6% 11% 57% 32% 48% 26% 26% 17% 61% 22% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% not implemented not effecnve at all partly effecnve very effecnve Good Practices A passenger car registration tax applies to all new cars registered in Latvia. For calculating the tax amount, the scheme takes into account CO 2 emissions. The higher the emissions, the higher the taxation; for instance, the car registration tax for a car emitting 120 grams of CO 2 is EUR (EUR 0.43 per gram of CO 2 ), while the registration tax for a car emitting triple emissions (360 grams of CO 2 ) does not only triple, but amounts to EUR 2, (EUR 7.11 per gram of CO 2 ), which is in fact nearly the fiftyfold (see Table 1 below). 1 Table 1: Taxation (pricing) scheme for registering new passenger car in Latvia 2 Carbon dioxide (CO 2 ) emissions grams for 1 km Tax rate for 1 gram per 1 km (EUR) Not over 120 grams grams grams grams grams grams 5.69 Over 350 grams Odyssee Mure (2015): LV 19 Cars Registration Tax based on Specific CO2 Emissions. odyssee- mure.eu/public/mure_pdf/transport/lv19.pdf 2 Ministry of Finance (2015): Tax on Cars and Motorcycles. 13

15 One of the main barriers to energy efficiency, in general, is that environmental externalities are not included in the purchasing price of a product such as a passenger car. Due to the registration tax, less efficient passenger cars are put in a disadvantaged position due to higher (registration) costs. The policy primarily aims at behavioural changes of end- users to opt for more efficient cars. This may result in an increasing availability of environment friendly cars in Latvia. The taxes, in combination with other measures, resulted in a positive development in the following years: The average CO 2 emissions of new cars decreased by 3.2 % in 2013 (147.1 grams/kilometre) and by 4.5% in 2014 (140.4 grams/kilometre). Nevertheless, it is important to notice that these emissions are still very high, the average emission level of new cars in Europe in 2014 was grams per kilometre. For further information on this good practice example, please refer to the EEW 3 case studies. 14

16 Disclaimer The sole responsibility for the content of this publication lies with the authors. It does not necessarily reflect the opinion of the European Union. Neither the EASME nor the European Commission are responsible for any use that may be made of the information contained therein. The analysis performed here is based almost exclusively on the information provided in the NEEAPs. Consequently, a low score for any of the criteria analysed could also be the result of a NEEAP lacking detailed information. Furthermore for some countries, national experts were consulted to review the reports. However, an expert was not available for every country and a full analysis of the policies and measures was only possible for a limited number of reports. The purpose of this assessment is not an absolute policy overview among Member States but is focusing on each Member State s individual conditions. The Project The Energy Efficiency Watch Project aims to facilitate the implementation of the Energy Efficiency Directive but also related policies like the Energy Performance in Buildings Directive (EPBD) and the Ecodesign (ErP) Directive on the national, but also on the regional and local level. This country report shows the progress made in implementation of national energy efficiency policies identified via a screening of NEEAPs and an extensive EU wide expert survey. efficiency- watch.org The Authors Stefan Thomas, Felix Suerkemper, Thomas Adisorn, Dorothea Hauptstock, Carolin Schäfer- Sparenberg, Lena Tholen, Florin Vondung (Wuppertal Institute) Daniel Becker, Lucie Tesniere, Charles Bourgault, Sonja Förster (Ecofys) Christiane Egger (OÖ Energiesparverband) with contributions by Reinhold Priewasser (University of Linz), Nils Borg (eceee), Dominique Bourges (Fedarene), Peter Schilken (Energy Cities) List of Abbreviations EE Energy Efficiency, EED Energy Efficiency Directive, EPC Energy Performance Certificates, EPBD Energy Performance of Buildings Directive, ESCO Energy Service Company, EU European Union, EEW Energy Efficiency Watch, MEPS Minimum Energy Performance Standards, MURE Mesures d Utilisation Rationelle de l Energie, NEEAP National Energy Efficiency Action Plan, nzeb nearly Zero Energy Buildings, R&D Research and Development 1