EU energy efficiency plan tackles buildings, cars

The European Commission will push for buildings, cars, power generators and electrical products to be more energy efficient in a plan that aims to cut the 25-nation bloc's energy use by 20 per cent by 2020.

The long-awaited action plan, set to be adopted by the European Union executive tomorrow, lays out a series of ways to reduce consumption in Europe at a time when demand for gas, oil and electricity is growing worldwide.

"Europe continues to waste at least 20 per cent of its energy due to inefficiency," a draft copy of the plan, said.

It said failure to use energy more efficiently would lead to direct costs of more than €100 billion by 2020.

The Commission says reducing energy consumption - and building houses and products to be less wasteful - will improve the security of the bloc's energy supply, reduce emissions of greenhouse gases, and boost innovation and technology by spurring industry to design better products.

The plan identifies 10 priority steps the EU should take to reduce energy use. They include:

1) Energy performance standards: new standards for energy performance will be developed for 14 product groups including boilers, water heaters, consumer electronics, copying machines, televisions and lighting.

2) Energy standards for buildings: the Commission will propose expanding rules on energy efficiency in buildings in 2009 to include smaller constructions below 1,000 square metres.

3) Power generation - The Commission will by 2008 develop minimum binding efficiency requirements for new electricity, heating and cooling capacity lower than 20 MW and consider, if necessary, such requirements for larger production units.