Energy intensity in Europe

Assessment versions

Published (reviewed and quality assured)

• No published assessments

Rationale

Justification for indicator selection

Energy-intensity is expressed as the ratio between gross inland energy consumption and GDP. 

Historically, economic growth led to higher energy consumption, thus increasing the pressure exerted by energy production and consumption on the environment. This indicator identifies to what extent there is decoupling between energy consumption and economic growth. Relative decoupling occurs when energy consumption grows, albeit more slowly than the economy (i.e. GDP). Absolute decoupling occurs when energy consumption is stable or falls while GDP grows. Absolute decoupling is likely to alleviate the environmental pressures from energy production and consumption.

Environmental context

Decoupling energy consumption from economic growth can help the simultaneous achievement of economic and environmental goals. The decoupling may result from reducing the demand for energy services (e.g. heating, lighting and passenger or freight transport) by using energy in a more efficient way (thereby using less energy per unit of economic output) or a combination of the two. From an environmental point of view, overall impacts depend on the total amount of energy consumption, and the fuels and technology used to generate the energy.

Scientific references

• No rationale references available

Indicator definition

Energy intensity is the ratio between gross inland energy consumption (GIEC) and gross domestic product (GDP), calculated for a calendar year. GIEC is calculated as the sum of the gross inland consumption of the five sources of energy: solid fuels, oil, gas, nuclear and renewable sources. To monitor trends, GDP is in constant prices to avoid the impact of inflation, with a base year of 2010. From 2019, GIEC in this report includes ambient heat used for heat pumps, which was not included in the previous reports.

Units

Gross inland energy consumption is measured in 1 000 tonnes of oil equivalent (ktoe), while GDP is expressed in millions of euros at 2010 market prices. To make comparisons of trends across countries more meaningful, the indicator is presented as an index. For country comparisons, two additional columns are included in the table in Figure 2 to show the current energy intensity in GDP in purchasing power standards for the latest available year, and also the energy intensity in terms of consumption per capita.

Policy context and targets

Context description

• The Energy Efficiency Directive 2018/2002 — amending Directives 2012/27/EU, 2009/125/EC and 2010/30/EU, and repealing Directives 2004/8/EC and 2006/32/EC — puts forward a binding EU-wide 32.5 % energy savings target for 2030, following on from the existing 20 % target by 2020. These targets are expressed in primary and/or final energy consumption and are relative to projected levels of primary energy consumption in 2030 of 1 887 Mtoe and final energy consumption of 1 416 Mtoe. A 32.5 % reduction therefore results in 1 273 Mtoe and 956 Mtoe in 2030, respectively.
• The Energy Roadmap 2050 for moving to a competitive low-carbon economy in 2050 (COM(2011) 112 final), presents a roadmap for action in line with an 80-95 % reduction in greenhouse gas emissions by 2050.
• A Clean Planet for All — A European Strategic long-term vision for prosperous, modern, competitive and climate neutral economy (COM (2018) 773 final), confirms Europe's commitment to lead in global climate action and presents a vision that can lead to achieving net-zero greenhouse gas emissions by 2050 through a socially-fair transition in a cost-efficient manner.
• Going Climate-Neutral by 2050 by the Directorate-General for Climate Action (European Commission), a brochure summarising EU’s strategic long-term vision.
• A Framework Strategy for a Resilient Energy Union with a Forward-Looking Climate Change Policy (COM(2015) 080 final), proposed to form an Energy Union where Member States see that they depend on each other to deliver secure energy to their citizens, an Energy Union that speaks with one voice in global affairs.
• The Fourth report on the State of the Energy Union (COM(2019) 175 final), showing the progress made on the energy union since the start of the Juncker Commission.
• A resource-efficient Europe — flagship initiative of the Europe 2020 Strategy (COM(2011) 21) — presents a strategic framework that should deliver a more sustainable use of natural resources and a shift towards resource-efficient, low-carbon growth in Europe.
• The Energy Efficiency Plan 2011 (COM(2011) 109 final), proposes additional measures to achieve the 20 % primary energy savings target by 2020.
• The Energy 2020 strategy for competitive, sustainable and secure energy (COM(2010) 639 final) identifies energy efficiency as a key priority.
• The EU Action Plan for Energy Efficiency (COM (2006)545 final) aims to boost the cost-effective and efficient use of energy in the EU. One of the priority areas is making power generation and distribution more efficient.

Targets

Directive 2018/2002 on energy efficiency puts forward a binding EU-wide 32.5 % energy savings target for 2030, following on from the existing 20 % target by 2020. These targets are expressed in primary and/or final energy consumption and are relative to projected levels of primary energy consumption in 2030 of 1 887 Mtoe and final energy consumption of 1 416 Mtoe. A 32.5 % reduction therefore results in 1 273 Mtoe and 956 Mtoe in 2030, respectively. Member States are requested to set indicative targets. Member States shall express their contribution in terms of the absolute level of primary energy consumption and final energy consumption in 2020, and in terms of the absolute level of primary energy consumption and final energy consumption in 2030, with an indicative trajectory for that contribution from 2021 onwards.

Related policy documents

• 2008/c 82/01
  Community guidelines on state aid for environmental protection (2008/c 82/01)
• Climate action and renewable energy package (CARE Package)
  Combating climate change is a top priority for the EU. Europe is working hard to cut its greenhouse gas emissions substantially while encouraging other nations and regions to do likewise.
• COM(2006) 545
  Action Plan for Energy Efficiency
• COM(2008) 781
  COM(2008) 781 final - Second Strategic Energy Review
• COM(2010) 639 final: Energy 2020 – A strategy for competitive, sustainable and secure energy
  A strategy for competitive, sustainable and secure energy
• COM(2011) 21
  A resource-efficient Europe – Flagship initiative under the Europe 2020 Strategy
• COM(2011) 109 final: Energy Efficiency Plan 2011
  Energy Efficiency Plan 2011
• COM(2011) 112 - A Roadmap for moving to a competitive low carbon economy in 2050
  With its "Roadmap for moving to a competitive low-carbon economy in 2050" the European Commission is looking beyond these 2020 objectives and setting out a plan to meet the long-term target of reducing domestic emissions by 80 to 95% by mid-century as agreed by European Heads of State and governments. It shows how the sectors responsible for Europe's emissions - power generation, industry, transport, buildings and construction, as well as agriculture - can make the transition to a low-carbon economy over the coming decades.
• COM(2015) 80 final - A Framework Strategy for a Resilient Energy Union with a Forward-Looking Climate Change Policy
  Energy Union Package, Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee, the Committee of the Regions and the European Investment Bank "A Framework Strategy for a Resilient Energy Union with a Forward-Looking Climate Change Policy", COM(2015) 80 final, 25 February 2015. Energy Union Package establishes a Framework Strategy for a Resilient Energy Union with a Forward-Looking Climate Policy. 
• COM(2018) 773 final
  Communication from the Commission to the European Parliament, the European Council, the Council, the European Economic and Social Committee, the Committee of the Regions and the European Investment Bank A Clean Planet for all A European strategic long-term vision for a prosperous, modern, competitive and climate neutral economy
• Directive (EU) 2018/2002
  Directive (EU) 2018/2002 of the European Parliament and of the Council of 11 December 2018 amending Directive 2012/27/EU on energy efficiency
• Directive 2012/27/eu
  DIRECTIVE 2012/27/EU OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 25 October 2012 on energy efficiency, amending Directives 2009/125/EC and 2010/30/EU and repealing Directives 2004/8/EC and 2006/32/EC
• EC, Energy efficiency measures
  Reducing energy consumption and eliminating energy wastage are among the main goals of the European Union (EU). EU support for improving energy efficiency will prove decisive for competitiveness, security of supply and for meeting the commitments on climate change made under the Kyoto Protocol.

Methodology

Methodology for indicator calculation

 Technical information

Methodology for gap filling

GDP is taken from the European Commission’s AMECO database. Data from the early 1990s are not available for some EU Member States. The EU-28 estimate for the 1990-1992 period (growth rates 1991-1993) has been made by gap-filling these Member States using available GDP figures from the World Bank database. Gap-filling was carried out for the following counties and years: 1990-1992 for Croatia, Estonia and Slovakia; 1990-1991 for Latvia and Lithuania; 1990 for Bulgaria. In addition, 1990 GDP for Germany has been estimated on the basis of the 1991 growth rate in West Germany.

Methodology references

No methodology references available.

Data specifications

EEA data references

• No datasets have been specified here.

External data references

• Energy statistics (Eurostat)
• World Development Indicators database (World Bank)
• Eurostat statistics on population
• Annual national accounts
• Gross inland energy consumption
• Total Primary Energy Supply non European countries
• World Economic Outlook database
• AMECO database

Data sources in latest figures

Uncertainties

Methodology uncertainty

The intensity of energy consumption is relative to changes in real GDP. Cross-country comparisons of energy intensity based on real GDP are relevant for trends but not for comparing energy intensity levels in specific years and specific countries. This is why the indicator is expressed as an index. In order to compare the energy intensity between countries for a specific year, two additional columns are included that show energy intensity in purchasing power standards (PPS) and energy intensity per capita. PPS are currency conversion rates that convert to a common currency and equalise the purchasing power of different currencies. They are an optimal unit for benchmarking country performance in a particular year. Energy intensity should therefore always be put in the broader context of the actual fuel mix used to generate the energy.

Data sets uncertainty

Strengths and weaknesses (at data level)

Data have been compiled by Eurostat through the annual joint questionnaires, which are shared by Eurostat and the International Energy Agency, following a well-established and harmonised methodology. Methodological information on the annual joint questionnaires and data compilation can be found in Eurostat's web page for metadata on energy statistics, http://ec.europa.eu/eurostat/statistics-explained/index.php?title=Energy

GDP is the central aggregate of national accounts. Some GDP-figures have been estimated using the procedure described above (Methodology for gap filling). Methodological information related to GDP can be found on Eurostat’s website.

Rationale uncertainty

 No uncertainty has been identified