Progress on energy efficiency in Europe

Indicator Specification
Indicator codes: ENER 037
Created 21 Jan 2019 Published 20 Feb 2019 Last modified 20 Feb 2019
17 min read
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The ODEX index measures progress in energy efficiency by major sector (industry, transport, households and services), as well as for all final consumers. For each sector, the index is calculated as a weighted average of sub-sectoral indices of progress in energy efficiency, observed over a given period. Sub-sectors refer to industrial or service sector branches or end-uses for households or transport modes. The sub-sectoral indices are calculated from variations of unit energy consumption indicators, measured in physical units (for instance tons of steel, tonne-km for transport of goods, kWh/appliance, m² for offices, etc.). ODEX provides a better 'proxy' of energy efficiency progress from a policy evaluation viewpoint than the more commonly used monetary indicators.

Assessment versions

Published (reviewed and quality assured)

Rationale

Justification for indicator selection

Energy efficiency and energy consumption are intrinsically linked. Increased energy efficiency can lead to significant reductions in energy consumption provided measures are in place to discourage the occurrence of rebound effects. Reducing energy consumption as a result of progress in energy efficiency and behavioural changes can lead to significant reductions in the environmental pressures associated with energy production and consumption. 

Scientific references

  • No rationale references available

Indicator definition

The ODEX index measures progress in energy efficiency by major sector (industry, transport, households and services), as well as for all final consumers.

For each sector, the index is calculated as a weighted average of sub-sectoral indices of progress in energy efficiency, observed over a given period. Sub-sectors refer to industrial or service sector branches or end-uses for households or transport modes. The sub-sectoral indices are calculated from variations of unit energy consumption indicators, measured in physical units (for instance tons of steel, tonne-km for transport of goods, kWh/appliance, m² for offices, etc.). ODEX provides a better 'proxy' of energy efficiency progress from a policy evaluation viewpoint than the more commonly used monetary indicators.

Units

The ODEX index (Fig.1), energy consumption for space heating and cooling (Fig. 3 and 5) and the energy consumption of electrical appliances (Fig.6) are represented in percentage change compared with 1990 levels. For the calculation of percentage change in energy consumption for space heating per square metre (sqm) by households (climate corrected) the unit is the kWh/m2; and energy consumption for space cooling is represented both in kWh/sqm of average floor area and kWh/sqm of air conditioned space. Improvements in energy consumption by end use per dwelling (Fig.2) are expressed in toe/dwelling. The effects of the main drivers influencing progress in energy efficiency (Fig.3) and the effect of building codes (Fig. 4) are expressed in percentage change per year.

Policy context and targets

Context description

Energy Efficiency Directive (EED)

The EED was approved by the European Parliament on 11 September 2012. It includes a set of new measures to meet the EU’s 2020 energy efficiency target to reduce EU primary energy consumption by 20 %. Related documents are available at: http://ec.europa.eu/energy/efficiency/eed/eed_en.htm. The legal definition and quantification of the EU energy efficiency target is the 'Union's 2020 energy consumption of no more than 1 474 Mtoe primary energy or no more than 1 078 Mtoe of final energy'. With the accession of Croatia, the target was revised to '1 483 Mtoe primary energy or no more than 1 086 Mtoe of final energy'. Under Article 3 of the EED, each Member State had to submit a report to the Commission including an indicative national energy efficiency target for 2020 (http://ec.europa.eu/energy/efficiency/eed/reporting_en.htm).

National Energy efficiency Action Plan (NEEAP)

NEEAPs are intended to set energy savings targets and propose concrete measures and actions that would contribute to meeting the targets. They are submitted every 3 years: the third NEEAPs were submitted in April 2014.

Regulation on emissions for new cars (2009/443) and new light commercial vehicles (2011/510)

Mandatory CO2 standards for new passenger cars were introduced in 2009. The 2009 regulation set a 2015 target of 130 g/km for the fleet average of all manufacturers combined.

Individual manufacturers were allowed a higher CO2 emission value depending on the average vehicle weight of their fleet. The heavier the average weight of the cars sold by a manufacturer, the higher the CO2 level allowed. A similar CO2 standard for new light-commercial vehicles was introduced in 2011. It set a target of 175 g/km for 2017. In July 2012, the European Commission put forward two regulatory proposals to set mandatory CO2 standards for new cars and vans in 2020. Target values of 95 g/km of CO2 for the new car fleet and 147 g/km of CO2 for vans for 2020 have been set.

Energy Performance of Buildings Directive: recast version in 2010 (2010/31/EU) EPBD, 2002/91/EC

The Directive on Energy Performance in Buildings (EPBD) is the main legislative instrument affecting energy use and efficiency in the building sector in the EU. The Directive tackles both new build and existing housing stock. Originally approved in 2002, this Directive is now being replaced by a recast Directive that was approved on 19 May 2010.

Energy Labelling Directive: recast version in 2010 (2010/30/EC) Directive 92/75/EEC

The Energy Labelling Directive 2010/30/EU is a framework Directive that facilitates the labelling of products so that the power consumption of one make and model can be compared to another, allowing consumers to make informed purchasing decisions.

Ecodesign Directive: recast version in 2009 (2009/125/EC)/(2005/32/EC)

The Ecodesign Directive sets a framework for performance criteria for energy-using and energy-related products, which manufacturers must meet in order to legally bring their product to the market. Minimum requirements have to be fulfilled by appliances to get the European Commission label and to be introduced in the European market.

The first Directive was adopted in 2005. Its scope was expanded in 2009 to all energy-related products. From September 2015, the Ecodesign Directive will concern heating equipment and the production of hot water, defining new levels of performance and features to meet new energy labels.

Energy Services Directive: (ESD) 2006/32/EC

This directive sets out targets for annual energy savings of 1 % per year for each Member State between 2008 and 2012. For the same period, strong incentives were given to Member States by the directive to ensure that suppliers of energy offer a certain level of energy service.

A Roadmap for moving to a competitive low carbon economy in 2050 (COM(2011) 112 final)

The Roadmap presents actions in line with the reduction of greenhouse gas emissions by 80-95 % by 2050.

Energy 2020, A strategy for competitive, sustainable and secure energy COM(2010) 639 final

The Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions prioritises four types of action for an energy-efficient Europe:

  • Action 1: Tapping into the biggest energy-saving potential — buildings and transport.
  • Action 2: Reinforcing industrial competitiveness by making industry more efficient.
  • Action 3: Reinforcing efficiency in energy supply.
  • Action 4: Making the most of National Energy Efficiency Action Plans.

 

Adoption of the 'energy-climate'' package on December 2008 (also called the '20-20-20 plan)

This package sets legally binding targets to cut greenhouse gas emissions to 20 % below 1990 levels and to increase the share of renewable energy to 20 %, both by 2020 (10 % in transport). It will also help achieve the EU's objective of improving energy efficiency by 20 % within the same time frame.

The climate and energy package consists of four legislative texts:

-        A directive revising the EU Emissions Trading System (EU ETS), which covers some 40 % of EU greenhouse gas emissions;

-        An Effort Sharing Decision setting binding national targets for emissions from sectors not covered by the EU ETS;

-        A directive setting binding national targets for increasing the share of renewable energy in the energy mix; and

-        A directive creating a legal framework for the safe and environmentally sound use of carbon capture and storage technologies.

Energy efficiency: delivering the 20 % target - COM(2008) 772 final

European leaders committed themselves to reducing primary energy consumption by 20 % compared with projections for 2020. Energy efficiency is the most cost-effective way of reducing energy consumption while maintaining an equivalent level of economic activity. Improving energy efficiency also addresses the key energy challenges of climate change, energy security and competitiveness.

Targets

Directive 2012/27/EU on energy efficiency establishes a common framework of measures for the promotion of energy efficiency within the European Union in order to achieve the headline target of a 20 % reduction in primary energy consumption. Member States are requested to set indicative targets. It is up to the Member states whether they base their targets on primary energy consumption, final energy consumption, primary or final energy savings, or energy intensity. However, this indicator does not monitor progress at EU level towards the energy efficiency target (different methodologies may be applied for this purpose particularly if the emphasis is on energy savings), but it does provide an indication of progress to date in achieving energy efficiency (in this context energy efficiency means mainly improvements in technological performance).

Related policy documents

Key policy question

Is final energy consumption in Europe becoming more efficient?

Specific policy question

Is energy consumption in buildings decreasing in the EU?

Methodology

Methodology for indicator calculation

  • Figure 1: Energy efficiency index

The ODEX index (Fig.1) measures progress in energy efficiency by major sector (industry, transport, households and services), as well as for all final consumers.

For each sector, the index is calculated as a weighted average of sub-sectoral indices of progress in energy efficiency observed over a given period. Sub-sectors refer to industrial or service sector branches or end-uses for households or transport modes. The sub-sectoral indices are calculated from variations of unit energy consumption indicators, measured in physical units (for instance tons of steel, tonne-km for transport of goods, kWh/appliance, m² for offices, etc.). ODEX provides a better 'proxy' of progress in energy efficiency from a policy evaluation viewpoint, than the more commonly used monetary indicators.

Methodology for gap filling

To calculate the ODEX (Figure 1), data submitted to the ODYSSEE project by countries on a voluntary basis are used. Not all countries submit the necessary data. Therefore, for the EU-28, data extrapolations based as far as possible on Eurostat supporting data (e.g. growth rates, shares of various energy forms in final energy consumption, etc.) are used. In this way, some consistency between the top-down calculations and the bottom-up calculations made for specific countries is ensured (also country data make use of Eurostat where possible).

To calculate the effect of new building codes (Figure 2), the theoretical unit consumption of new dwellings for the EU as a whole is based on an extrapolation from 11 representative countries (Italy, France, Denmark, Sweden, Netherlands, Germany, Austria, Poland, Czechia, Hungary and Slovakia). The theoretical consumption for new dwellings by country is weighted according to annual construction, so results can be produced at EU level.

Methodology references

Data specifications

EEA data references

  • No datasets have been specified here.

External data references

Data sources in latest figures

Uncertainties

Methodology uncertainty

Indicators used in the ODYSSEE database are comparable over time and space.

The ODYSSEE database contains data on energy consumption and its drivers provided by energy agencies or their representatives in all EU countries. Quality control checks are performed to ensure the quality of the database and improve transparency, consistency, comparability, completeness and accuracy of data retrieved in the ODYSSEE database. Examples of quality control checks include: checking for transcription errors in data inputs, checking of source reliability, checking inner consistency of data (e.g. sum of energy consumption by end-use in the household sector is coherent with total residential consumption), consistency with other sources (e.g Eurostat) and checking that indicators are calculated correctly (though graphical representation over years to check discrepancies between countries or outliers).

Data sets uncertainty

The ODYSSEE database contains data on energy consumption and its drivers, which are provided by energy agencies or their representatives in all EU countries and Norway. Quality control checks are performed to ensure the quality of the database and to improve the transparency, consistency, comparability, completeness and accuracy of data retrieved from the ODYSSEE database. Examples of general quality checks include checking for transcription errors in data inputs, checking source reliability, checking the inner consistency of data (e.g. the sum of energy consumption by residential end-use is coherent with total residential consumption), consistency with other sources (e.g Eurostat) and checking that indicators are calculated correctly (through graphical representation over years to check discrepancies between countries or outliers).

Rationale uncertainty

No uncertainty has been specified

Further work

Short term work

Work specified here requires to be completed within 1 year from now.

Long term work

Work specified here will require more than 1 year (from now) to be completed.

General metadata

Responsibility and ownership

EEA Contact Info

Stephanie Schilling

Ownership

European Environment Agency (EEA)

Identification

Indicator code
ENER 037
Specification
Version id: 3
Primary theme: Energy Energy

Frequency of updates

Updates are scheduled once per year

Classification

DPSIR: Response
Typology: Efficiency indicator (Type C - Are we improving?)

Related content

Data references used

Relevant policy documents

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