European Policy Update October 2018

New Standards for Green Mortgages Launched

On 24 September, the World Green Building Council (WGBC) launched a new report setting out a vision for how mortgage lenders and borrowers can come together to help tackle climate change by improving millions of properties across Europe.

The report proposes a new set of standards for property energy performance thresholds that create real reductions in financial and climate risks for mortgage lenders – qualifying borrowers for incentives such as lower mortgage interest rates.

Applying these standards reduces risks for both borrowers and lenders by lowering energy bills, giving borrowers more freedom to meet mortgage repayments whilst protecting them against the future devaluation of inefficient buildings. The report also calls on policymakers to develop incentives that could help stimulate demand such as reduced property transaction tax for buildings that meet the proposed standards.

The standards, which have been designed by a coalition of ten national Green Building Councils, are now being tested as part of an EU-backed pilot scheme involving banks and financial institutions representing a combined lending power of over €3 trillion.

Further information can be found here.

Deadline Looms for EU Strategy for Long-Term GHG Emissions Reduction

On 9 October, the European Commission’s consultation on a strategy for long-term EU greenhouse gas emissions reduction closes.

The consultation, which opened in July, is in response to a request from EU leaders for the European Commission to present “a proposal for a strategy for long-term EU greenhouse gas emissions reduction in accordance with the Paris Agreement”.

The public consultation will feed into the Commission’s development of a strategy that will reflect on a long-term vision for a modern, decarbonised European economy.

The Commission aims to put forward its strategy proposal ahead of the next UN climate conference (COP24) taking place in Katowice, Poland in December 2018.

European Council Adopt Positions on the EU Budget

On 04 September, the European Council adopted their position on the EU budget for 2019. Areas which receive increased support include research and innovation (Horizon 2020, +5.79%), youth exchanges (Erasmus+ programme, +10.37%), investments in infrastructure (Connecting Europe Facility, +26.46%), and environment and climate action (LIFE programme, +5.20%).

The European Parliament is currently adopting their own position on the budget and it is expected to adopt its amendments to the Council’s position on 24 October. This will trigger a three-week conciliation period, which will start on 30 October and end on 19 November. This process aims to reach an agreement between the Council and the European Parliament on the 2019 EU budget.

The final agreement will have a direct impact on how much money is allocated to programmes focused on the circular economy and energy efficiency in 2019.

Austrian Presidency Aims to Finalise the Clean Energy Package

On 18 September, Austria’s environment minister said that finalising the Clean Energy Package by the end of the year was a priority for Austria who currently holds the presidency of the Council of the European Union. The package, which was introduced in November 2016, includes 8 different legislative proposals, including:

Energy Performance in Buildings
Renewable Energy
Energy Efficiency
Governance
Electricity Market Design (the Electricity Regulation, Electricity Directive, and Risk-Preparedness Regulation)

The last piece of legislation to be finalised is the Electricity Market Design files, including the provision on capacity mechanisms which regulate state aid to power plants in order to secure supply of electricity.

Further information on this debate can be found here.

Consultation on Fitness Check of the Water Framework Directive and the Floods Directive

On 18 September, the European Commission launched a consultation on a fitness check on the Water Framework Directive and the Floods Directive. The consultation aims to understand how these directives have brought about changes to the sustainable management of water and improvement in the state of water bodies, and to the strategies to reduce the risk of flooding across the EU.

The consultation intends to go beyond pure implementation and collect opinions on the functioning and interactions of the different directives and the costs and benefits attached to them by different stakeholders.

Further information can be found here.

New Light Bulb Rules Rolled Out Across Europe

As of 01 September, energy intensive and inefficient halogen will no longer be sold in the European Union. The changes relate to standard halogen bulbs but do not cover special types like those used in desk lamps and floodlights. The new measures will not apply to products already in shops and only applies to new products being placed on the market.

The changes are part of the EU’s Eco-design Work Programme – a key part of the EU’s commitment to put energy efficiency first. Originally decided in 2009 by Member States and the European Parliament, the new rules were reconfirmed in 2015, but their introduction was deferred until September 2018 in order to ensure that sufficient affordable alternatives would be available.

More Action Needed to Improve National Renovation Strategies

A new BPIE report, A snapshot of building renovation strategies: Bulgaria, Croatia, Germany, Romania, Slovenia, suggests that more action is needed to improve the renovation strategies submitted by the Member States under the Energy Efficiency Directive (EED).

The report assesses the compliance of the five countries’ updated renovation strategies with the EED by comparing them with the requirements set out in the Directive and the guidance provided for the development of National Energy Efficiency Action Plans.

The report, released as part of the EmBuild Project, highlights examples where renovation strategies have improved and where new measures have been put in place, including Germany introducing tailored ‘Renovation Roadmaps’ and Croatia strengthening the administrative capacity to better tackle renovation of multi-family buildings.

However, overall, the report finds that little has been done to improve the 2014 strategies and consequently increase the rate and quality of renovation at a pace that would significantly contribute to the achievement of the EU 2030 targets and the Paris commitment.

Report Suggests More Linkages Needed Between Circular Economy and Bioeconomy

A new European Environment Agency (EEA) report, The Circular Economy and the Bioeconomy: Partners in Sustainability’ has called for policies on the circular economy and bioeconomy to be developed in tandem.

The report says that both policy agendas have similar objectives and areas of intervention and would, therefore, benefit from stronger links, particularly in product and infrastructure design, and collaboration throughout the value chain.

According to the report, the increasing demand for food, feed, biomaterials and bioenergy resources could worsen the over-exploitation of natural resources. By extending the lifetime of products and recycling materials, a circular, bio-economy approach can help retain material value and functionality for a longer period and avoid unrecycled biowaste.

Further information is available here.

Call for Eco Labels Working Group

The European Environmental Bureau (EEB) and the European Consumers Organisation (BEUC) have launched a call for technical experts in Ecolabelling to support both organisations in the EU policy-making process. Experts will provide technical and scientific input into preparatory studies and EU Ecolabel criteria discussed at EU level.