Cost-effectiveness of Cohesion Policy Investments in Energy Efficiency:
Statement by Harald WÖGERBAUER, Member of the European Court of Auditors
Première transmission: 14/01/2013
European Court of Auditors , IPC Maalbeek room, Brussels
Fin de production: 14/01/2013
The cost of increased energy consumption, the depletion of fossil fuel reserves and the effect of human activities on global climate change are drivers of recent energy efficiency policies. Since 2000, the European Union, through its Cohesion Policy funds, spent almost €5 billion for co-financing energy efficiency measures in the Member States. The European Commission and the Member States are both responsible for the sound financial management of these funds.
The European Court of Auditors has assessed whether Cohesion Policy investments in energy efficiency were cost-effective.
The Court found that the projects selected by Member State authorities for financing did not have rational objectives in terms of cost-effectiveness, i.e. cost per unit of energy saved. Their objectives were to save energy and improve comfort, but they were not selected for financing on the basis of their potential to produce financial benefits through energy savings, but rather that the buildings were typically regarded as being ‘ready’ for funding if they were in need of refurbishment and their documentation complied with the requirements.
Only the original language version is authentic and it prevails in the event of its differing from the translated versions.
||SOUNDBITE by Harald Wögerbauer, Member of the European Court of Auditors (In English) saying that: The European Court of Auditors has audited projects concerning the investment in the efficiency of energy. We have seen that the efficiency was not very good because we have a payback period for these investments from about in average 50 years. That means that only 10% to 20% of the investment was going directly into measures for energy efficiency. For that reason, we propose that in the future we should only invest our money in measures for energy efficiency and not in other like refurbishment, like renovation and so on because to get the goal until 2020 to reduce the Co² emission, we need the money from 17 billion Euros in the next year only for energy efficiency investments because it is cheaper to reach the goal of the reduction of Co² emissions and that is the reason why we say that the commission should make the program like we propose.