Sizing up the Fit for 55 proposals

European Commission legislation on energy efficiency is welcome, but over complicates the underlying issues, writes Dr Richard Dixon

Last week, the European Commission set out new energy legislation aimed at helping the European Union meet its 2030 climate target. There are many good elements in the legislation, but also plans which ring alarm bells for environmentalists.

Called the “Fit for 55” package, the proposed new laws would significantly improve energy efficiency across Europe, providing a large part of the savings needed to meet the target of a 55 per cent reduction in carbon emissions from the 1990 level by 2030.

The choice of 2030 is good because it focuses attention on the things we need to do in the next few years, rather than vague aspirations for 2050.

Scotland’s 2030 target is a

75 per cent reduction, but we didn’t have to get 27 other countries to agree, and we have a great head start by having so much renewable energy resources to tap into.

The argument about what targets the EU should adopt and how they should reach them have been rumbling on for years, so the Fit for 55 package represents a step forward. However, the pace of change is still not sufficient to stop the global temperature rise past the 1.5C danger point.

There are important new measures in the proposals to tackle fuel poverty, with an EU duty to protect vulnerable consumers, and another to drive energy efficiency improvements in social housing.

There is also a requirement for part of energy-savings programmes to be directed to energypoor households.

The last official figures showed that a quarter of all households in Scotland were in fuel poverty – identified by spending more than 10 per cent of their income on heating.

Many children are living in homes that are cold and often damp, to the detriment of their physical and mental health.

We’re pretty good at targeting action at the most in need but these two obligations could make a significant difference if adopted here too.

Sadly, the new package of measures introduces a large amount of complexity by adding climate emissions from buildings and transport into the EU Emissions Trading Scheme.

In theory, this means a factory owner could effectively invest in insulating people’s homes instead of directly reducing emissions from their operations.

In its 16 years of existence, the trading scheme has had a patchy record in reducing industrial and power-sector climate emissions across Europe, with a low price for each tonne of carbon and lots of get-outs for big industry.

The EU wants to make it work

There are many good bits, but also plans which ring alarm bells for environmentalists

more efficiently, but including buildings could put people in fuel poverty at the mercy of shifting corporate priorities. It could also limit the technical options available to make buildings more efficient and heating systems lower carbon.

One study suggested the average EU household energy bill will rise by more than €400. The European Commission has tried to address this by proposing a new fund to help cushion these rises but admits that the proposals would still adversely affect poorer households.

The Scottish Government has said that Scotland should keep up with new environmental laws in the EU. While there are measures in this new package which would be helpful here, the need to tackle fuel poverty means we should exercise extreme caution on some of the proposals.

Dr Richard Dixon is director of

Friends of the Earth Scotland