European policy for energy efficiency in SMEs

1. ENERGY EFFICIENCY MEASURES FOR SMES ©3E | | www.3E.eu

2. Intro Outline • Introduction • Objective and scope • Status & Recommendations – Information provision – Energy audits – Investment support • General aspects • Conclusions

3. Intro Introduction – SME situation in Europe • • • ~ 27 Million SMEs* ~ 99% of all enterprises Represent a very large share of EU energy consumption (no data available) 0% 6% Mining and quarrying 10% Manufacturing 0% 10% 0% Electricity, gas, steam and air conditioning supply Water supply; sewerage, waste management and remediation activities 17% 16% Construction Wholesale and retail trade; repair of motor vehicles and motorcycles 6% Transportation and storage 4% Accommodation and food service activities Information and communication 8% 28% 5% Real estate activities Professional, scientific and technical activities Administrative and support service activities * SME Performance Review, Annual Report, Ecorys for European Commission ** Source data graph: Eurostat (2009 data)

4. Intro Introduction – SME situation in Europe • • • ~ 27 Million SMEs* ~ 99% of all enterprises Represent a very large share of EU energy consumption (no data available) 0% 6% Mining and quarrying 10% Manufacturing 0% 0% Electricity, gas, steam and air conditioning supply Water supply; sewerage, waste management and remediation activities 17% 16% Construction Wholesale and retail trade; repair of motor vehicles and motorcycles 6% Transportation and storage 4% Accommodation and food service activities Information and communication 8% 28% 5% Real estate activities Professional, scientific and technical activities Administrative and support service activities * SME Performance Review, Annual Report, Ecorys for European Commission ** Source data graph: Eurostat (2009 data)

5. Intro Introduction – Manufacturing Total number of enterprises in manufacturing: ~2.3 million 3% 1% 14% From 0 to 9 persons employed From 10 to 49 persons employed From 50 to 249 persons employed 250 persons employed or more 82% * Source: Eurostat data 2010

6. Intro Energy efficiency and SME’s: limited sense of urgency • 64% of all SME’s is taking action to save energy compared to 82% by large companies (Eurobarometer 2012) • 36% of all SME’s do not realise any energy saving action for the moment and 79% of this group do not intend to implement any action in the near future. • Large companies consider energy/resource efficiency as an important driver to create a competitive advantage/business opportunity (36% compared to 23% for SME’s) • Only 25% of all SME’s have an energy management system in place compared to 48% of large companies

7. Intro Introduction – The challenge • • • SMEs are very diverse, most companies are small Represent a large share of EU energy consumption (no data available) Until now, most policy efforts were focused on large industry 1% (larger impact, easier to target, …). Main barriers for SMEs**: Lack of understanding of environmental problems and risks Lack of time/staff resources Lack of financial resources for investments (esp. for none-core-business) Lack of understanding of the potential benefits of environmental improvements Lack of expertise/confidence Lack of access to appropriate & sector-specific information The view of environmental activity as peripheral to the core business * SME Performance Review, Annual Report, Ecorys for European Commission ** SMEs and the Environment in the European Union, Danish Technological Institute and PLANET S.A

8. Intro Objective and scope Topic: Policy measures to support energy efficiency in SMEs Objective: • Identification of implemented measures to reduce process-related energy consumption • Description of best practices Scope: Support measure categories: Regions under focus: • Information provision • The Netherlands • Energy audits • Germany • Investment support • France • United Kingdom • Denmark • Austria • Belgium (Fl, Wal, Br)

9. Status and recommendations Information provision - Status BE NL FR UK DK DE AT FL WA BR X Comprehensive programme X X X X X X Branch concepts, technology information… X X Example projects X X X X X X One single main website available X Good and very clear website available from viewpoint of SMEs Strong involvement of Chambers of Commerce or sector organisations Facilitators - contact points for the industry X X X X X X X X

10. Status and recommendations Information provision - Recommendations Make single website for SMEs Structure info according to SME viewpoint (General info, Funding, Advice, Examples, Links) SMEs are very diverse – Branch concepts, Technology info & Benchmarking will help Best practice projects will generate interest Involve regional partners and sector organisations – closer to the SMEs

11. Status and recommendations Example website structure Questions • How is my company doing? Website structure 1. Benchmarking

12. Status and recommendations Example website structure Questions Website structure • How is my company doing? 1. Benchmarking • How can we improve? 2. Advice

13. Status and recommendations Example website structure Questions Website structure • How is my company doing? 1. Benchmarking • How can we improve? 2. Advice • What is the benefit? 3. Financial support

14. Status and recommendations Example website structure Questions Website structure • How is my company doing? 1. Benchmarking • How can we improve? 2. Advice • What is the benefit? 3. Financial support • How does it work in detail? 4. Efficient Technologies

15. Status and recommendations Example website structure Questions Website structure • How is my company doing? 1. Benchmarking • How can we improve? 2. Advice • What is the benefit? 3. Financial support • How does it work in detail? 4. Efficient Technologies • Does this really work? 5. Best practice projects

16. Status and recommendations Example website structure Questions Website structure • How is my company doing? 1. Benchmarking • How can we improve? 2. Advice • What is the benefit? 3. Financial support • How does it work in detail? 4. Efficient Technologies • Does this really work? 5. Best practice projects • Can someone help us? 6. Further help

17. Status and recommendations Example website structure Questions Website structure • How is my company doing? 1. Benchmarking • How can we improve? 2. Advice answer their questions 3. Financial support Keep overview & use clear explanations with links & cross-links 4. Efficient Technologies How does it work in detail? Trigger interest (e.g. benchmarking, example projects…) Viewpoint • What is the benefit? SMEs • • Does this really work? 5. Best practice projects • Can someone help us? 6. Further help

18. Status and recommendations Example website structure Example: German website “www.Stromeffizienz.de”

19. Status and recommendations Energy audits - Status BE NL FR UK DK DE X Subsidised audits Audits often part of comprehensive measure (e.g. voluntary of obligation) X X AT FL WA BR X X X X X Energy audits needed when applying for environmental permit X Pool of accredited auditors X X Standard way of auditing X X Audits in two phases (initial and implement.) X Specific training for auditors X X

20. Status and recommendations Energy audits - Recommendations Subsidising energy audits has very high impact Organise pool of experienced & accredited auditors with regular evaluation Train the auditors (instead of the SMEs multiplication effect) Integrate audits in an integrated approach (e.g. standardised audit forms linked with benchmarking, link with investment subsidy focus, etc.)

21. Status and recommendations Energy audits – Existing subsidised schemes Austria Training of auditors Audit duration # Audits # Auditors Audit frequency Cost of Audit Percentage support Percentage implementation Germany Wallonia ~6 days (>400 indiv. participants) No special organised training No special organised training 1 days Up to 10 days Undefined ~2000 audits so far ~5000 audits in 2011 ? ? ~17000 accredited auditors ~185 accredited auditors Voluntary. New law: every 4y Voluntary Voluntary 2 x € 750 Max € 1280 / 4800 Undefined 90% 80% / 60% 50% ~80% (Eurem) 68% (since 2008) N/A

22. Status and recommendations Investment support - Status BE NL Fiscal tax deduction for EE measures FR X UK DK DE X X Cheap loans X Bank guarantees or warranty system FL WA BR X Investment subsidies X Additional tax on energy or CO2 with objective to reduce consumption AT X X X X X X X X X X X X

23. Status and recommendations Investment support - Recommendations Keep it simple – best to focus on one or max two measures Annual focus measures can increase the attention and urge to implement Measures can be linked with audits, trainings, information…

24. Overview General aspects Top-down Integrated Europeanise bottom-up stand-alone

25. Overview General aspects Top-down bottom-up

26. Overview General aspects Think carefully about top-down or bottom-up model: • Top-down: Obligations & quota Top-down bottom-up • Mostly for large companies, SMEs via quota to DSO/supplier • High chance of reaching target • Uncertainty about costs & whether target is right • Bottom-up: Info, financial support & audits • Not certain about impact • No additional burden, and freedom to investors & most proactive companies • Both have advantages & disadvantages more detailed evaluations are needed

28. Overview General aspects Integrated stand-alone

29. Overview General aspects Integrated stand-alone

30. Overview General aspects Develop integrated framework (link info, audits, financial support, evaluation...) Integrated stand-alone • is more clear for target public • is more effective • allows to profit from synergies Austrian system can serve as example: • • • • • • Heavily subsidised audits Standardised audit procedure Pool of accredited auditors Trainings new & experienced auditors Link with info & annual priorities Use of the data (benchmarking, sector concepts, policy choices…) • Link financial support (annual prior.) • Close cooperation regional entities

32. Overview General aspects Europeanise

33. Overview General aspects Cooperate more on EU level • Share information, e.g.: Europeanise • Share technology info & best practice examples • EU-wide benchmarking per sector • EU portal with links to country websites for international SMEs • Cooperate on policy • Standardise policy evaluation • Inter-country sharing of policy best practices & evaluations • Cooperate on financial support • Guarantee system for EE-related loans (risksharing with reinsurance) • Cheap loans via European Investment Bank?

35. Conclusions Clear framework Enabling energy efficiency Involvement of local parties Integrated approach

36. PR105704 – Energy efficiency measures SMEs Thank you Brussels Toulouse Gent Beijing Istanbul Cape Town www.3E.eu