New EU Legislation on energy efficiency

A new European directive on energy efficiency has been published and will enter into force on 17 May 2006.  Directive 2006/32/EC on Energy End-Use Efficiency and Energy Services aims to reduce energy demand by encouraging Member States to improve energy efficiency.  Under the new legislation, Member States will be required to reduce energy use by 9% (relative to the business-as-usual scenario) from 2008 to 2017.

Member States will also be required to publish periodic Energy Efficiency Action Plans, setting out the planned energy efficiency improvement measures.  The first Energy Efficiency Action Plan must be submitted no later than 30 June 2007.  In addition, the Directive specifies that Member States are to ensure that the public sector leads by example in the role of energy efficiency and suggests a variety of possible measures, such as the use of energy-efficient vehicles and equipment and the performance of energy audits.

The Directive must be implemented by Member States by 17 May 2008 (with the exception of the requirement to prepare an Energy Efficiency Action Plan, which must be in place by 17 May 2006).

More information on this Directive and its commercial consequences will follow in subsequent updates on Law-Now.