Country Report. Energy Efficiency Policies in Europe. Denmark

Transcription

1 Energy Efficiency Policies in Europe Analysis of National Energy Efficiency Action Plans and Policies in EU Member States 2014 Country Report Denmark 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 Denmark s sectoral and overall energy efficiency policies could be further improved. Overview of Findings Based on the NEEAP screening and the findings from the survey conducted with Danish experts, Denmark s energy efficiency policies have progressed very well. According to the survey results, Denmark is the Member State that has made most progress in energy efficiency policies since the second NEEAP. Two thirds of the experts recognised the implementation of many additional policies in the last years. The government has taken energy efficiency as a topic very seriously. There is a strong framework for energy efficiency, backed by the majority of the political parties. Furthermore, an energy efficiency obligation scheme exists since several years with strong impacts. Energy utilities have already reached a 2% reduction of energy sales per year. Two of the main aims in Denmark are to become independent of fossil fuels by 2050 and the regular tightening of the building codes. 85% of the Danish experts agree that Denmark is on track to meet its obligation that all new buildings will be nearly Zero Energy Buildings (nzeb) by Almost all experts agreed that the requirements for new and existing buildings are partly or very effective. However, the potentials to renovate existing buildings are still high and it remains a challenge to convince homeowners to undertake renovations. A first step is the Better Homes programme. It is a relatively new programme with the aim to influence property owners to renovate their buildings. The energy efficiency obligation scheme is working well and especially supports the industry sector. Consequently, 41% of the experts think that energy efficiency in industry makes good progress while 54% believe that this sector makes only some progress. A main challenge in Denmark is the transport sector. 51% of the experts think that this sector makes no progress at all. In addition, the for appliances was not improved in the last three years and is not very balanced. Sectoral Progress The sectoral progress of policies is as follows: The overarching energy efficiency governance framework is characterised by an Energy Policy Agreement and the Energy Strategy 2020 including the overall target of fossil fuel independence by The strategy document Our Energy, which was published in 2011, contains a wide range of initiatives with the aim to achieve high energy savings until 2030 respectively The Danish Energy Agency is responsible for the organisation and implementation of energy efficiency measures. The Energy Saving Trust was dissolved. In 2006, the energy efficiency obligation (EEO) scheme was introduced and the targets are increased regularly (see good practice example). To promote the Energy Service Company (ESCO) market, the Danish Energy Agency focuses on advice. There is a however a need to more strongly support ESCOs. Therefore the Better Homes programme was newly developed to support them. In general energy taxes are high in comparison to other countries. In the public sector, all existing measures are ongoing. Some measures were improved and a few new ones were introduced. An Action Plan sets regularly updated targets for the public sector. Since 2013, municipalities can take up loans for energy savings. One third of 1

3 municipalities have already implemented Energy Performance Contracting projects. To promote energy efficient products, a strategy for smart procurement was launched in A Growth Plan DK was newly established to increase investments in the renovation of public housing. The Building Regulation is the main instrument in the residential sector focusing on buildings. It has strict energy performance requirements, which are strengthened regularly (see good practice example). The Danish Energy and Renovation Strategy was finalised in 2014, but a new one was developed containing 14 initiatives to promote renovation activities. Subsidies for energy efficiency in households are still provided under the energy saving obligation scheme. The BoligJobPlan, which offered a tax reduction on wage costs, was completed in To make the energy label more visible, a website was created to inform building owners. The advice and audit activities were improved and some information tools were newly introduced like the Better Homes Scheme. Furthermore, a network was set up to bring together different stakeholders. Appliances are mainly targeted by EU regulations such as the Ecodesign Directive and the Energy Labelling Directive. The sector plays a subordinate role in Denmark and only some additional measures have been implemented. Among them are the Energy Star Label and the Club100 information campaign. No economic incentive programme is in place. In the industry and tertiary sector, the Energy Efficiency Obligation Scheme puts energy companies under an obligation to make concrete efforts to implement energy efficiency measures. Targets were increased in the last years. All other economic incentive programmes were closed and agreements with energy- intensive businesses were not continued. New policies are the mandatory energy audits for large enterprises and the programme Energy Management light, which aims to convince companies to implement an energy management system. A Centre for Energy Savings in Industry was newly developed. In the transport sector some new measures were implemented, but most of the programmes are ongoing. A focus is set on information and advice activities. Planning instruments are not mentioned. Requirements concerning the energy efficiency of taxis, limos and healthcare transportations were strengthened and environmental zones in large cities were established. The tax system includes a car purchase tax, a registration tax, a fuel tax and an annual registration tax. Furthermore, an exemption for electric and hydrogen vehicles was added to the tax system. A new programme is in place to support the energy efficiency effort in public transport. Financial support is now given to electrification of railways, improvements of accessibility of public transport, cycle paths, infrastructure fund for electric, gas, and hydrogen vehicles. A broad range of information and advice measures have been implemented. Recommendations Further improvements to the could be the following: The governance framework in general is strong, but a weak point is the integration of national policies at regional and local levels. A better interaction is needed, as 40% of the municipalities do not have energy efficiency as a top priority. Local actions should therefore be better supported. The Danish Energy Agency is very effective, yet experts say it could be more proactive in some fields. Denmark is lagging behind in achieving the targets set for the public sector. Energy efficiency is not always a high priority in ministries and municipalities. Information and education campaigns could address this barrier. One large barrier to increase the energy efficiency of buildings is the long payback time due to low interest rates and low energy prices. This could be addressed with financial incentives. Furthermore, Denmark focuses on the target to reach zero energy buildings but more attention needs to be put on the energy renovation of buildings. This is crucial because the 2

4 renovation of existing buildings has the largest potential for reducing energy. The Better Homes Scheme is a good starting point and could be extended. The appliance is not very well balanced. The should be improved in terms of financial incentives, learning programmes and information campaigns. The Danish Energy Agency is just starting to investigate the service sector and to develop emission targets for small businesses to tackle their energy consumption. The CO 2 taxes for companies are too low and the Emission Trading System is not working well. Hence, this could be improved. The transport sector policy could extend its scope by planning instruments (e.g. smart spatial planning) and research and development (R&D) support. The sector is not well addressed yet. Taxation of both fuel and cars should be further developed to encourage people to buy efficient cars. Policy Developments according to Official Documents The next tables present 1) the policies that were implemented in 2011 in Denmark 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 Energy Strategy 2050 with the overall target to be independent of fossil fuels by 2050 Denmark Knowledge>Growth> Properity> Welfare work programme to become a green and sustainable society Energy Policy Agreement was introduced in 2008 and sets out national objectives of implementing concrete energy savings (objectives for : 1) In 2020 the overall energy consumption must be 4% less than in 2008 and 2)Danish government Cooperates to make EU tale on action in order to reduce its total emission of greenhouse gasses by 30% in 2020, compared to 1990 level) All the plans and targets are ongoing. The 2020 plan includes setting up a total of 350 MW of coastal wind turbines on 6 potential sites in Denmark and a resource plan and a conversion of the transport sector þ Danish Energy Agreement 2012 contains a wide range of initiatives with the aim to lead to energy savings of 12.6% by 2020 compared with 2006, and CO 2 emissions in 2020 being 34% lower the they were in It was presented in the strategy document Our Energy, which is a follow- up of the Energy Strategy 2050 Strategy for energy renovation contains 14 initiatives which will promote the renovation of the building stock 3

5 Element of the Involvement of non- governmental and market actors, and sub- national authorities Energy agencies and climate protection agencies EE funds for overall coordination and funding of policies and measures EE obligation scheme for overall coordination and funding of policies and measures Favourable framework conditions for energy services Energy taxation higher than EU minimum requirements Energy companies involved via saving obligation scheme Regional and local authorities involved in energy efficiency programmes Research institutions are involved through knowledge centres Danish Energy Agency is responsible for the organisation and implementation of several energy efficiency measures The Energy Saving Trust is an organisation with its own board A national energy efficiency fund was not implemented in Denmark The Energy Saving Trust is responsible for coordination of energy efficiency meaures Centre for Energy Savings administers funds to campaigns to promote energy savings in buildings The Advisory Board on Energy Savings task is to advise the Minister of Climate and Energy and the agency on effective coordination and reinforcement of energy- saving measures Energy Saving Obligations introduced in 2006 for distribution companies supplying electricity, natural gas and district heating. Saving obligations were regularly increased ESCO light in order to examine the opportunities for energy services Green Tax with energy taxes above minimum rates All involvements still exist The Agency still exists The Saving Trust was dissolved According to the third NEEAP, there is no need to set up an energy efficiency fund The Energy Saving Trust was dissolved No information on development regarding the Centre for Energy Savings and the Advisory Board on Energy Savings þ The obligation scheme is ongoing, and the energy saving targets were increased again. The latest agreement is from November Between 2015 and 2020, the annual target is set at 3.0%. Measures offered are consulting, financial assistance, advice etc. ESCO light is still being launched but the greatest use took place in The Danish Energy Agency focuses on advice and publishes lists of suppliers. The website serves as an entry point for final consumers Better Homes apparently newly introduced promoting the market for energy services / According to the third NEEAP, several ESCO models have been used in Danish municipalities; please note that municipalities have been teaming up with ESCOs since 2006 The green taxes are ongoing 4

6 Element of the R&D support Agreement on the implementation of the European Globalisation Fund (EGF) to maintain the investments in energy research, development and demonstration The Energy Technology Development and Demonstration Programme (EUDP) supports the development of new technologies and develops business potentials The EGF is ongoing. EUDP is ongoing. An new board was appointed in 2011 Fund of Innovation includes three funds within research, technology and innovation Public Sector Element of the Public sector strategy An Action Plan for public sector energy saving programmes set a target for the public sector Circular on Energy Efficiency in Government Institutions sets out the framework of activities to be undertaken by public institutions Energy Saving Trust signs energy saving agreements with public institutions Local and regional activities with inter alia implementation of energy management activities, public purchasing, building improvements Nordic Energy Municipalities. Focus is on sustainable energy, green growth and climate activities in the Nordic regions and to boost activities in the municipalities Public procurement Obligation for public institutions to procure energy efficient products Public buildings Buildings are constructed energy efficient. Parts of municipalities have entered into a cooperation with the Danish Nature Conservation Association for a minimum of 3% energy savings per year up to the year Buidlings must have an energy label Government entered into a VA with Local Government Denmark (LGDK) concerning the realisation of energy savings in municipalities þ The target for the public sector was improved. Aim is to reduce energy consumption by 14% in 2020 (compared to 2014). Annual report required The Energy Saving Trust was replaced by a Better Homes Scheme, where the Danish Energy Agency educates energy advisers for the promotion of energy renovation in private homes; the screened do not provide information on what happened to the agreements with public institutions The local and regional activities are ongoing. A climate community is a municipality which has signed up to reducing the CO 2 emissions by 2% per year until an agreed date Since 2013 municipalities can automatically take up loans for energy savings (measures from energy performance certificates, lighting, electrical fittings) þ Government launched in 2013 a strategy for smart procurement for the entire public sector. Furthermore a new tendering law was proposed in March 2015 with the aim to create the best possible framework for public procurement The 3% renovation target is ongoing Growth Plan DK aims to increase investment in the renovation of public housing and energy renovation The LGDK is ongoing 5

7 Element of the R&D support No information found in the screened No information found in the screened Residential Sector Buildings Element of the Minimum Energy Performance Standards (MEPS) Energy Policy Agreement: Reducing energy consumption by 25% in 2010, 50% in 2015 and 75% in 2020, compared to 2006 requirements. Mandatory requirements for new and existing buildings. The regulation also include voluntary minimum standards Other Regulation Mandatory inspection of boilers and heating installations Grants, tax incentives Financing instruments Subsidies for energy efficient requirements in households are provided under the energy saving obligation scheme for companies BoligJobplan is offers a tax deduction on wage costs for energy- related improvements No information found in the screened The Building regulation contains the rules for construction of buildings. Regulation contains mandatory MEPS and two voluntary low energy classes (first stage became mandatory in 2015: 33% lower overall energy consumption than for 2010, i.e. 50% lower than 2006; second stage to become mandatory in 2020 but voluntary until then: 66% lower than 2010, i.e. 75% lower than 2006) The inspections are ongoing Strategy for energy renovation contains 14 initiatives which will promote the renovation of the building stock The obligation scheme is ongoing BoiligJobplan was completed in 2013 No information found in the screened Energy performance certificates (EPCs) Energy advice and audits EPCs were in place even before the Energy Performance of Buildings Directive (EPBD) required it Energy consultants must fullfil certain qualification requirements Activities of the Energy Saving Trust include advice to end- users in businesses Advice and audits are commonly performed under the energy saving obligation for households Energy performance certificates still exist. EPC work must be carried out by a certified energy consultant. Requirements are set out in the Danish Energy Agency s requirements for companies that carry out energy labelling The agency developed the website to inform building owners about energy labelling The Energy Saving Trust was dissolved The energy saving obligations are ongoing þ Denmark has various schemes for conducting energy audits in buildings (such as mandatory labelling, promotion of energy conservation in the private property sector). There is a registration scheme for energy audit consultants 6

8 Element of the Information tools for investors and users Funding of DKK20 million was provided annually for information campaigns Energy Saving Trust promotes cost- effective energy savings in households Within the energy saving obligation energy companies must provide information to consumers about his or her energy consumption The Danish Energy Agency provides information on the website Energy Strategy 2050 includes requirements for electricity meters that are exchanged from 2015 onwards (including the Meter Order) Demonstration projects No information found in the screened Education and training Knowledge Centre for Energy Savings in for building buildings provide state- of- the- art professionals information to buidling professionals Information and motivation campaigns are initiated under the saving obligations R&D support Knowledge Centre for energy savings in buildings The funding is ongoing. The Agency has drawn up an action plan to promote EE solutions. The Danish government is at present modifying the Better Homes Scheme (finance is more accessible to homeowners, involvement of banks) The Energy Saving Trust was abandoned The energy saving obligation scheme and the Energy Strategy are still ongoing The Executive Order on remote electricity meters and metering of electricity at end use contains obligations for collective energy companies to provide their customers with informative bills and adivce free of charge Electricity consumers can obtain information about their own consumption from Energinet.dk s DataHub Sparenergi.dk promote energy efficient solutions with check lists, tools, guides, opportunities for subsidies Better Homes is a scheme focussing on energy renovation with cooperations between home owners and financial institutions Bolius was established in 2002 for the purpose of providing home owners with information No information found in the screened The knowledge centre still exists. It collects and disseminates information about concrete and practical ways to reduce energy consumption The saving obligations are ongoing Network for Energy Renovation consists of more than 180 stakeholders to promote energy renovation Better Homes: Skilled workmen are educated to be advisors on energy renovation in private homes The centre still exists Residential Sector Appliances Element of the Minimum Energy Performance Standards (MEPS) The Ecodesign Directive was implemented. In addition, advisory activities and seminars are offered No information on changes or additional measures 7

9 Element of the Economic incentives No information found in the screened No information found in the screened Energy labels Energy Star label without high impact ongoing The EU Energy Label is in place according to EU Directive 2010/30/EC Information tools Club kwh campaign The Club 1000 campaign is ongoing including a radio campaign and campaigns on printed media how a family can reduce its electricity consumption Education and training for retail staff and other supply chain actors Information available on the Danish Energy Agency s website No information found in the screened þ The Danish Energy Agency publishes shop material, education films, brochures (information on purchasing and using energy efficient appliances) No information found in the screened R&D support No information found in the screened No information found in the screened 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 The Ecodesign Directive was implemented. In addition, advisory activities and seminars are offered Energy Saving Obligations with binding targets for large companies Energy Policy Agreement set put energy companies under the obligation to implement energy savings The Danish Energy Agency entered into agreements with energy- intensive businesses. Businesses agree to implement an energy management and improve energy efficiency in their production processes (in exchange for a refund on the energy saving tax) The Energy Saving Trust supports cost- effective energy saving actions in businesses Companies investing in energy efficiency following an agreement could get a refund on the energy saving tax ongoing. No information on changes or additional measures þ The Energy Company s saving efforts put energy companies under an obligation to make concrete efforts to implement energy efficiency investments. Targets were increased Energy audits in large enterprises are mandatory every fourth year þ The Energy Company s saving efforts put energy companies under an obligation to make concrete efforts to implement energy efficiency investments. Targets were increased The agreements with energy- intensive businesses were abandoned Energy management light aims to convince SMEs to implement an energy management system and energy audits The Energy Saving Trust was dissolved The possibility of getting a refund on energy saving tax does not exist any longer 8

10 Element of the Financial support for energy advice and audits No information found in the screened Energy labelling The EU Energy Label is in place according to EU Directive 2010/30/EC R&D support Green Labs DK is a subsidy scheme for research, development and demonstration activities. The Research Fund stimulates growth, employment and exports in Danish enterprises A Research Foundation was established in 1944 by Aarhus University and aims to support scientific research at the University Centre for Energy Savings in Industry aims to identify and exploit energy efficiency potential in the industrial sector Energy management light aims to convince SMEs to implement an energy management system and energy audits. Danish Standards in held a free training session on energy management designed for SME and organizations ongoing The Green Labs DK were discontinued in 2013 The Research Fund is ongoing The Research Foundation is still active. Danish Technological Institute is an organisation working for innovation and technological development Transport Sector Element of the Planning instruments Regulatory instruments Few measures, short description without timeframe and scope. Strategy Sustainable Transport : Increase of public transport Investments in roads and railways Minimum requirements on energy efficiency of taxis, limos and healthcare transportations Introduction of biofuels for transport (according to EU target) Voluntary agreement on green certification of communes and transporters in order to reduce CO 2 emissions from transport. No information on changes or additional measures. þ Strengthened requirements on energy efficiency of taxis, limos and healthcare transportations Voluntary agreement on green certification of communes and transporters Environmental zones in large towns 9

11 Element of the Economic incentives Information and advice Denmark s tax system consists of car purchase tax/registration tax, fuel tax and annual registration tax: Taxes on registration of a new car, high level of taxation in relation to other EU countries increased taxes on gasoline Green Owner Fee: owners of new passenger cars (registered after July 1st 1997) have to pay an annual fee depending on the average consumption of fuel by that particular car model Reduction of registration tax for efficient vehicles (4 litre /100 kilometre gasoline, 3.5 litre /100 kilometre diesel), further reduction for even more efficient cars A broad range of information measures have been implemented: Recommendations for public procurement of passenger and delivery cars Certification scheme/ voluntary labelling for business and local authorities Campaigns and network of best practice for optimized aerodynamics of lorries (but only low interest) Labelling of passenger and delivery cars (mandatory), accompanied by info campaign, control by unannounced visits at car dealer s showroom Eco- Driving: Courses and campaigns (but only low interest) R&D support Experimental projects: subsidies to promote use of alternative fuels (electricity, biogas, hydrogen) and energy efficient technologies (e.g. busses) Taxes on registration of a new car Taxes on gasoline Green owner fee Electric and hydrogren vehicles are exempt for tax unteil 2015 Investments in public transport: grants for bus mobility and service improvements (until 2013), grants for improved access to train stations and platforms, metro expansion and development of lieght railways Financial support: Improvement and electrification of railways, improvements of accessibility of public transport, cycle paths, infrastructure fund for electric, gas and hydrogen vehicles Recommendations for public procurement of passenger and delivery cars Certification scheme for transport in municipalities and enterprises to reduce CO 2 emissions Optimized aerodynamics of lorries Labelling of delivery and passenger cars Eco- driving courses and campaigns: for car drivers and professional drivers No information on changes or additional measures. 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 47 national energy efficiency experts participated in the quantitative survey for Denmark. 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). 10

12 Denmark is the Member State that has made the most progress in energy efficiency policies since the second NEEAP (country progress indicator: 1 out of 28 - see page 81). Denmark had also progressed very well in the three preceding years (2012 survey: country progress indicator: 2 out of 27). Danish experts see a high overall ambition in energy efficiency policies almost 90% consider it at least ambitious in a range of sectors. However, only around two thirds see a range or many additional policies in the last three years. These results indicate that experts find the energy efficiency policies are not quite living up to ambitions (however, both values are among the highest across the EU). Critical issues mentioned by experts include the lack of progress in the transport sector as well as the need for more action in building renovation. On the positive side, experts report a strengthening of energy efficiency policies since 2012 and the goal to become fossil- fuel free by Also, the building codes were reinforced. Denmark: overall ambi`on of the energy efficiency policies Denmark: progress of the energy efficiency policies in the last 3 years 2% 9% 23% 5% 32% 51% 38% 40% generally, rather low ambimous in a few sectors, less so in most others ambimous in a range of sectors, less so in a few others generally, rather high no or very linle progress a few addimonal policies a range of addimonal policies many addimonal policies Almost 70% of experts believe that the EED savings target (new savings of 1.5% of the annual energy sales to final consumers) is likely to be achieved. Regarding energy efficiency obligation programmes, experts mention the scheme that has existed in Denmark for a number of years with clear positive impacts. At the time of the survey an amendment process was reported as being underway. 85 % of the interviewees think that Denmark is on track to meet its obligation under the EPBD that all new buildings be "nearly Zero Energy Buildings" by Both for the EED and the EPBD, these are among the highest ratings of all Member States. 11

13 Denmark: achievement of na`onal 1.5 % energy savings target (EED) Denmark: on track towards the "nzeb" obliga`on 20% 6% 9% 11% 69% 85% 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 implementamon is well underway For the residential sector, experts mention the "Better Housing Programme" that promotes energy renovation for the private housing sector. Engaging more homeowners in building renovation remains a significant challenge. Experts report the introduction of an energy audit obligation scheme for large companies, and they call for more action in the industry and service sectors. The increasing role played by regions and cities in energy efficiency progress is observed by the experts as well as the important role of the Danish Energy Agency. Denmark: improvement in actual implementa`on Energy efficiency in transport 51% 40% 9% Funcmoning of the energy service market 23% 49% 28% Decreasing fuel poverty Exemplary role of public buildings Consideramon of energy efficiency in public purchasing 21% 20% 16% 50% 62% 68% 29% 18% 16% no progress some progress good progress Building renovamon 7% 73% 20% Energy efficiency in industry 5% 54% 41% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Among specific policy instruments, energy efficiency requirements for new and renovated buildings (rated at least partly effective by 100% and 93% of experts respectively) and energy labelling of products (95% partly or very effective) are seen as the most effective in the Danish context. Energy taxation is also seen positively in Denmark, a very high ranking compared to other Member States. 12

14 The highest ratings for "not effective at all" are given to the inspection of heating/air- conditioning systems (40%) and to financial incentives for private households and SMEs (38% and 35% respectively). Denmark: effec`veness of different policy instruments EE requirements for new buildings Energy labelling of products EE requirements for renovated buildings Energy taxamon Programmes for local energy planning Energy cermficamon of buildings Energy audits for companies Smart metering Targeted advice for households Inspecmon heamng/air- condimoning systems Financial incenmves for private households Namonal Energy Efficiency Funds Financial incenmves for SMEs 33% 67% 5% 61% 34% 7% 66% 27% 2% 2% 14% 36% 48% 17% 55% 26% 23% 56% 21% 5% 29% 56% 10% 14% 23% 44% 19% 5% 33% 43% 19% 40% 10% 33% 16% 38% 17% 35% 47% 13% 42% 10% 48% 2% 47% 2% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% not implemented not effecmve at all partly effecmve very effecmve Business Stakeholders Point of View Within the EEW 3 project, workshops were conducted to gather feedback from business stakeholders on energy efficiency policy and their impact on the business community. In Denmark, a workshop took place on 26 th of March 2015 in Frederiksberg. In total, 21 participants representing associations, service providers, consultancies, production companies, technology providers, R&D providers, the Energy Agency and Distribution System Operators took part. Recommendations made during the Danish workshop are presented below: European legislation should draw from the positive experience in Denmark and create a European market similar to the Danish. In order to achieve this, trade barriers should be removed. A more harmonised market across Europe could expand business models developed in one Member State within the EU. Furthermore, policy instruments for renewable energy and energy efficiency should be harmonised. Danish stakeholders are generally happy with the political framework in Denmark and consider it supportive to trigger new business models. There is however the concern that if the European market does not keep pace, it will eventually slow down Danish developments. The price of savings are rising in Denmark, as many measures with short amortisation times have already been implemented. Yet, further low hanging fruits exist within the context of the energy label or eco design. A general need for new strategies or tools to address the SMEs exists. The business community also raised the importance to consider how regulation could be expanded to smaller fields of application in order to keep the market alive. 13

15 Good Practices Denmark has made good progress in almost all sectors and therefore a large range of successful policies exists. Examples are the building codes, the Better Homes Scheme, the taxes on registration of new cars and the energy efficiency obligation scheme (EEO). The latter one will be described here as an example of good practice in Denmark. The agreement of the EEO was first set up in The current version of the EEO is the Energy Savings Agreement from November The overall aim of the EEO is the promotion of cost- effective energy savings in all end- user sectors of the Danish economy. To determine the savings, a simple weighting factor is applied, which reflects the savings lifespan, the impact on primary energy consumption, and the expected CO 2 impact. The policy was set up as an agreement between the Danish energy distribution companies and the public authorities (primarily the Danish Energy Agency (DEA)). The policy targets all energy distribution companies, i.e. electricity, district heating, natural gas and oil for heating. They are committed to an annual binding energy saving target. All actions that aim at improving energy efficiency in buildings, appliances, industrial equipment and processes and certain actions in the transport sector are targeted. The scheme allows the targeted companies to choose freely any measure they consider most cost- effective as long as the effect of energy savings can be documented. Most common measures are advice and subsidies to realise energy savings in enterprises and households or a combination of both. An ex- post evaluation is carried out prior to each new agreement period by an independent source. Total annual energy savings per sector compared to the set annual target are depicted in the graph below. Figure 1: Total annual final energy savings per sector compared to the annual target Source: ENSPOL The figure below illustrates the cost- effectiveness of selected policy measures: If a measure s ratio is under the red line, there is a socio- economic benefit of the measure. It clearly demonstrates that the EEO is a cost effective policy measure within the in socio- economic terms at the time (2008), which was confirmed in another evaluation from ENSPOL (2015): Energy Saving Policies and Energy Efficiency Obligation Scheme. D2.1.1: Report on existing and planned EEOs in the EU Part I: Evaluation of existing schemes. 14

16 Figure 2: Ratio between socio- economic costs of energy normalized to 1 vs. socio economic costs of energy saving measures Source: ENSPOL 2015 For further information on this good practice example, please refer to the EEW 3 case studies. 15

17 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), Tina Sanders (Danish Energy Association), Jacob Høgh (Danish Energy Association) 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