ESG Economist - Chance of meeting energy efficiency targets is very low
The more energy-efficient companies are, the less energy is wasted and the more is saved. In more concrete terms, this means that with lower energy consumption, at least the same amount of output will have to be realised. Amongst many companies in sectors, energy efficiency has been embraced more often over recent years, mainly due the relatively high and volatile energy prices. Lower energy consumption reduces operational costs and has a favourable effect on margins. But at the same time, energy efficiency improvements also reduce greenhouse gas emissions and make countries less dependent on energy imports. Energy efficiency is also seen as the low-hanging fruit. Every company – and every household – is able to start working on this tomorrow, so to speak. These are often relatively simple interventions at a low cost.
For these reasons, energy saving is high on the European agenda. The EU's Energy Efficiency Directive (EED, 2023) has set energy-saving targets for each member state. Countries that fall under the EED must ensure a reduction in final and primary energy consumption of at least 11.7% in 2030 compared to the 2020 level (reference scenario). In this analysis, we will examine final energy consumption within the EU-27 and take a closer look at the trends. Based on the trend in final energy consumption, it is possible to partially map energy savings and energy efficiency. We will also highlight developments within climate sectors and which important measures have been or can be taken. For the Netherlands specifically, we will take a closer look at sector trends and finally we investigate the feasibility of the EU energy saving target for the Netherlands.
