1EnergyEfficiencyPolicyinGermanySino-GermanEnergyPartnership2ImprintThereport“EnergyEfficiencyPolicyinGermany”introducestheimportanceofenergyefficiencyintheframeofclimateneutralityandthebestpracticemeasuresandpoliciesforenergyefficiencyinGermany.ThereportispublishedintheframeworkoftheSino-GermanEnergyPartnershipbetweentheGermanFederalMinistryforEconomicAffairsandClimateAction(BMWK)andtheNationalDevelopmentandReformCommissionofthePeople’sRepublicofChina(NDRC).Asthecentraldialogueplatformonenergybetweentwocountries,themainobjectiveofthepartnershipistofosterandadvancethefar-reachingandprofoundenergytransitionsongoinginbothcountriesbyexchangingviews,bestpracticesandknowledgeonthedevelopmentofasustainableenergysystem,primarilycenteredonimprovingenergyefficiencyandex-pandingtheuseofrenewableenergy.TheDeutscheGesellschaftfürInternationaleZusammenarbeit(GIZ)GmbHimple-mentstheprojectundercommissionofBMWK.AsaGermanfederalenterprise,GIZsupportstheGermangovernmentintheachievementofitsgoalsininternationalcoop-erationforsustainabledevelopment.PublishedbySino-GermanEnergyPartnershipcommissionedbytheGermanFederalMin-istryforEconomicAffairsandClimateAc-tion(BMWK)TayuanDiplomaticOfficeBuilding1-15,14LiangmaheSouthStreet,ChaoyangDistrict100600Beijing,P.R.Chinac/oDeutscheGesellschaftfürInternationaleZu-sammenarbeit(GIZ)GmbHTorstenFritscheKöthenerStr.2Berlin10963ProjectManagement:YuxiaYinDeutscheGesellschaftfürInternationaleZu-sammenarbeit(GIZ)GmbHAuthors:WolfgangEichhammerFraunhoferISIFredericBergerFraunhoferISIJanSteinbach,IREESNeleFriedrichsen,IREESSu-MinChoi,IREESDesignedelman.ergo(oncommissionofBMWK)Image:BMWK/CoverLayout:LiWenqin,GIZ©Beijing,April2022Thisreportinitsentiretyisprotectedbycopyright.Theinformationcontainedwascompiledtothebestofourknowledgeandbeliefinaccordancewiththeprinciplesofgoodscientificpractice.Theauthorsbelievetheinfor-mationinthisreportiscorrect,completeandcurrent,butacceptnoliabilityforanyerrors,explicitorimplicit.Responsibilityforthecontentofexternalwebsiteslinkedinthispublicationalwayslieswiththeirrespectivepub-lishers.Thestatementsinthisdocumentdonotnecessarilyreflecttheclient’sopinion.GIZacceptsnoresponsi-bilityforthesemapsbeingentirelyuptodate,correctorcomplete.Allliabilityforanydamage,directorindirect,resultingfromtheiruseisexcluded.3TableofContentAbbreviation................................................................................................................................................................4Preface..........................................................................................................................................................................51.Introduction:TheImportanceofEnergyEfficiencyintheFrameofClimateNeutrality.....................62.Part1:FrameforEnergyEfficiency(Climate,SupplySecurity,Competitiveness)................................92.1ClimateNeutralityFrameforEnergyEfficiency(atEuropeanUnionandParis-Agreementlevel)......................92.2ClimateNeutralityFrameforEnergyEfficiencyinGermany.......................................................................................122.3EnergyEfficiency,CompetitivenessandSupplySecurity.............................................................................................173.Part2:FactSheetsandCaseStudiesonBestPracticeMeasuresandPoliciesforEnergyEfficiency......................................................................................................................................................................................193.1Cross-cuttingEnergyEfficiencyPolicies........................................................................................................................193.2EnergyEfficiencyinBuildings...........................................................................................................................................223.3EnergyEfficiencyinAppliances.........................................................................................................................................303.4EnergyEfficiencyinIndustry.............................................................................................................................................373.5EnergyEfficiencyinTransport..........................................................................................................................................503.6BestPracticeMonitoringandImplementation..............................................................................................................564.Part3:LocalLevelandAcceptance................................................................................................................604.1Local(Municipality/City)LevelPolicyMakinganditsLinktoNationalandEuropeanLevel.............................604.2DistributionalEffectsofEnergyEfficiencyPolicies......................................................................................................624.3SocialAcceptance..................................................................................................................................................................635.Literature..............................................................................................................................................................634AbbreviationCBAMCarbonBorderAdjustmentMechanismCCSCarbonCaptureandStorageCCUCarbonCaptureandUseCO2CarbondioxideCO2eq.Carbondioxide-equivalentEEEnergyefficiencyEEDEnergyEfficiencyDirectiveEffSTRAEnergyEfficiencyStrategyEMSEnergyManagementSystemGHGGreenhousegasesGJGigaJoule(109Joule)H2HydrogenkWhKilowatthourMtoeMilliontonnesofoilequivalentMWMegawattNAPENationalerAktionsplanEnergieeffizienzNECPNationalEnergyandClimatePlanNEDCNewEuropeanDrivingCyclePJPetajoule(1015Joule)PtGPower-to-GasPtLPower-to-LiquidSUVSportsUtilityVehicleSWOTStrengths-Weaknesses-Opportunities-ThreatsTWhTerawatthour(1012Watt)ZLEVZero-andlow-emissionvehiclesWLTPWorldwideHarmonisedLightvehiclesTestProcedureKSGClimateChangeActGEGBuildingEnergyAct/BuildingcodeGermany5PrefaceIntimeswhenClimateneutralitytowardsthemiddleofthiscentury,orinthedecadeafter,inmanycountriesworld-wide,energyefficiencypolicyismorethanjustapillarinclimateneutralitybuttheessentialingredienttomakeotherpoliciesmorepowerfulandacceptablesuchasrenewablespolicies,thehydrogeneconomyaswellasasustainablebio-economyorcarbon-captureandstorage(CCS/CCU).Allsupply-sidelow-carbonsolutionsleadtolargerenvironmentalandsocio-economicimpactssuchasresourceuse,(new)importdependencies,distributionaleffectsamongconsumergroupsandpossibleacceptanceissues.ItisforthisreasonthatthekeyroleofenergyefficiencyissupportedintheEuropeanUnionbytheEnergyEfficiencyFirstPrinciple.ItisrecognisedasaguidingprincipleoftheUnionenergypolicyandshouldbetakenintoaccountacrossallsectors,goingbeyondtheenergysystem,atalllevels,includinginthefinancialsector.Energyefficiencysolutionsshouldbeconsideredasthefirstoptioninplanningandinvestmentdecisions,whensettingnewrulesforthesupplysideandotherpolicyareas.ThisBookaddressestheimportantroleofenergyefficiencypoliciesinGermanyandinvestigatesin3Partsitsmainmechanisms:•Part1establishestheframeforenergyefficiency(intermsofclimateneutrality,supplysecurity,competitive-ness)•Part2takesasectoralviewonenergyefficiencypolicesinGermany(cross-cuttingpolicieswithastrongfocusonpricingandtradingpolicies,buildings,appliances,industryandtransport.Policycasestudiesillustratemoreindetailsuccessesandfailuresofenergyefficiencypolicies.AspecificfocusisgivenonmonitoringandanalysisapproachestothetransformationoftheenergysysteminGermany,aswellasontheanalysisfacilitiesprovidedbytheOdyssee-MUREprojectatEuropeanlevel.•Part3finallypointsoutthestrongroleoflocallevelenergyefficiencypolicies,theimportanceofpoliciesad-dressingvulnerableconsumergroupsandenhancingacceptanceofenergyefficiencypolicies,notablyofpric-ingandtradingschemes.AllthreepartsareaccompaniedwithSWOTanalyses(Strengths-Weaknesses-Opportunities-Threats)whichcovertheframepolicies,aswellassectoralpoliciesandthedetailedpolicycasestudies.ThestrongarisingEuropeanframeoftheFit-for-55PackagesproposedbytheEuropeanCommissionin2021aswellasthehigh-levelobjectivesbroughtforwardbythenewGermanGovernmentCoalitioninNovember2021willprovideam-pleopportunitiestoimplementtheEnergyEfficiencyFirstprinciplestronglyintopolicypractice.Itcanbuildonthepolicystrengthsandweaknessesidentifiedinthisbookwhiletakingadvantagesoftheopportunitiesprovidedinthisnewframe.61.Introduction:TheImportanceofEnergyEfficiencyintheFrameofClimateNeu-tralityClimateneutralityhasemergedinrecentyearasamainobjectiveforthewholeworld,inordertokeeptheglobaltemperatureriseofthiscenturybelow1.5°C.Chinahasstateditsobjectivetoachieveastabilisationofcarbonemissionsstillinthisdecade,whileaimingtoachievecarbonneutralityby2060.InitsFit-for-55-ClimatePackageputforwardinJuly2021z(EuropeanCommission2021a),theEuropeanUnionhasreiterateditsobjec-tivetoreachgreenhousegases(GHG)neutralityby2050,withanintermediatereductionof55%by2030com-paredto1990.Energyefficiencyisseenbyallactorsasamajorcontribu-tortoclimateneutrality.ThisisillustratedonthegloballevelbytheWorldEnergyTransitionOutlook,publishedbyInternationalRenewableEnergyAgency(IRENA2021)asseeninFigure1.Accordingtotheiranalysis,energyef-ficiencyandrenewableenergysourceswillcontributetohalfoftherequiredreductioninGHGemissionswhilefurthercontributionsarenecessaryfromdirectelectrifi-cation.GHGemissionscanbefurtherreducedwhencom-binedwitharenewableenergy-basedhydrogeneconomy.Additionally,CarbonCaptureStorageandUse(CCS/CCU)inindustry,aswellasCCSinbioenergycanachievenega-tiveemissionstocompensateforremainingCO2-emis-sions.Figure1MainpolicycomponentscontributingtocarbonemissionsabatementsintheIRENA1.5°CScenarioSource:IRENA(2021)7ThemostrecentLong-termScenariospublishedin2021confirmthisassertionataverydetailedsectorallevelforGermany.Theaimofthesescenarioswastoinvestigatedifferentpaths1toclimateneutralityindetail,notably2(Figure2):•Option1(ScenarioTN-Electricity)withstrongrelianceonelectricity•Option2(ScenarioTN-H2),basedstronglyonhydrogen•Option3(ScenarioTN-PtG/PtL),basedtoalargedegreeonsyntheticfuels(generatedfromhydrogen),includingCO2recyclingfromtheatmosphereFigure2MaindecarbonisationpathstoclimateneutralityinGermanySource:(FraunhoferISIetal.2021)Theanalysisshowsthatfinalenergydemand3needstobereducedby28-37%atleast,comparedtotoday(FraunhoferISIetal.2021).Especiallybuildingsandtransport,whichconsumed35and29%oftotalenergyrespectively,requireahighdemandreductionof41-50%(Table1andFigure3).Also,theindustrysectorandtheappliancessector,whichconsumed22and14%,needtoreducedemandsubstantially.1ThescenariopathsalsoinvestigateanOption4,whichincludesCO2storagetocompensateforthecontinueduseoffossilme-thane.However,therearemanyreasons,nottocontinuewithfossilfuels,evencombinedwithCO2storage,notablytheresourceavailabilityforoilandnaturalgas,aswellastheenvironmentaldamagelinkedtotheirextractionandimportdependencies.2Takenotethatthesectorsconcerningenergyconsumptionarebuildings,industry,transportandappliances.Energytargetsaregivenforthesectorsbuildings,industry,transportandappliances,whiletheemissiontargetsaregivenforthesectorsbuildings,industry,transport,energy,agricultureandwasteandothers.3Inprinciple,onehastodistinguishenergyefficiencyimprovementfromthereductioninenergydemand.InEuropeancountries,thisismostlythesame,asenergydemandisnotincreasinganymore.ThatmaybedifferentincountrieswithstillraisingenergydemandasinChinauptonow.However,amajorcountrylikeChina,iftheworldistoreachclimateneutrality,needsalsoembarkonapathofreductioninenergydemand(similartoareductioninemissions)ratherthanjustimprovingenergyefficiency.ThiswillalsobethecaseofothermajorforthcomingemitterssuchasIndiaandotherdevelopingnations.8Finalenergydemandhasapparentlytobereducedmoreintheelectricityscenariosthaninthescenarioswithlargeramountsofhydrogenorsyntheticfuels(37%comparedto38-30%inthecaseofthelatter).Thisisduetothefactthatimportedhy-drogenappearsascheaperinthosescenariosasitisimportedfromplaceswhereH2productionischeaperthaninGermanyandhencetakesalargerrolethanenergyefficiencyoptionsinthecountry.However,thismasksthefactthatthelattertwoareimportedtoquitealargedegreewhichraisesquestionsofrenewedimportdependenceaswellashowtobalancehydrogenexportagainstsustainabilityissuesandtheneedtodecarbonisetheirowneconomyintheexportingcountries.Allinall,theLong-termScenariosillustrateextensivelythat-independentofthedecarbonisationpath-energyefficiencyneedstobeastrongcontributor,otherwiseenvironmentalimpactsofdifferentenergysupplytypeswillcontinuetobelarge.ThisisthemainreasonwhytheEUhasdefinedtheEnergyEfficiencyFirstPrinciple.Table1Requiredreductioninfinalenergy(FE)demandinrecentclimateneutralitypathsto2050forGermanySource:(FraunhoferISIetal.2021)Figure3EnergyconsumptionpersectorinGermany2020Source:Owndepictionbasedon(BMWi2021b)ReductioncomparedtopresentTN-ElectricityTN-H2TN-PtG/PtLBuildings-41%-26%-26%Industry-23%-21%-18%Transport-50%-44%-40%ServiceSectorAppliances-30%-30%-30%HouseholdAppliances-34%-30%-34%Allsectors-37%-30%-28%92.Part1:FrameforEnergyEfficiency(Cli-mate,SupplySecurity,Competitiveness)2.1ClimateNeutralityFrameforEnergyEfficiency(atEuropeanUnionandParis-Agreementlevel)TheEUratifiedtheParisAgreementfrom2015–alegallybindingglobalclimatechangeagreement.Underthisagreement,thecountriescommittolimitingglobalwarmingtowellbelow2°Candundertakemeasurestolimitthetemperatureriseto1.5°C.Emissionreductionsaretargetedassoonaspossible.Forthesecondhalfofthecentury,climateneutralityisaimedforinthesensethatremainingemissionsarebalancedbyremovalsfromgreenhousegasesfromtheatmosphere.TheEUsub-mittedinitiallyanIntendedNationallyDeterminedContributionoftheEUanditsMemberStates(MS)withthecommitmenttoreduceemissionsby40%by2030comparedto1990.Thiscommitmentwasupdatedandincreasedtoareductionofatleast55%by2030comparedto1990.WiththeproposaloftheEUGreenDealandtheEuropeanClimateLawenforcedinJuly2021,theEUMemberStatesagreedonasetoftargetsthataremeanttoturntheEUintothefirstclimate-neutralcontinentintheworldin2050.ThemaintargetsarethereductionandremovalofGHGemissionsby2030toatleast55%comparedto1990,ashareofatleast40%renewa-blesandthereductionof36%and39%respectivelyforthefinalandprimaryenergyconsumptionuntil2030(9%comparedto2020).Furthertargetsaretheremovalof310Mtcarbonandthecreationof160,000additionalgreenjobsby2030.Around0.6trillioneurowillbefinancedthroughtheEuropeanGreenDeal(EuropeanCommission2021a).AllMSagreedontheircontributiontothesetargets.TheGovernanceisregulatedinthe“RegulationoftheGovernanceoftheEuropeanUnion”.EachMSneedstodevelopaNationalEnergyandClimatePlan(NECP)for2030basedonacommontem-platethatcoversdecarbonisation,energysecurity,energyefficiency,internalenergymarketsandresearch,innovation,andcompetitiveness.Updatesneedtobemadeuntil2024.Additionally,MSarerequiredtodevelopnationallong-termstrate-gies.MemberstatesalsohavetoreporttheiremissionsandotherclimateemissionstotheEU,whoreportsontheprogressoftheEUasawholeeachyear.MemberstateswillreporttheirownprogressforthefirsttimeinMarch2023(EuropeanCommission2021h).WithenactingtheEuropeanEnergyDirectivein2007,threetargetsweresetfor2020onaEuropeanlevel,fromwhicheachcountrywasrequiredtoderivenationaltargets:20%cutinGHGemissionscomparedto1990,20%shareofrenewablesinfinalenergyfromrenewablesand20%improvementinenergyefficiencycomparedtoabaselineestablishedin2007.Thedirectivewasamendedin2018andthetargetofa32.5%reductionuntil2030wassetwithaclauseforpossibleupwardsrevi-sionby2023.However,theactualachievedreductionwasonlyat29.4%regardingfinalenergyuseand29.7%regardingpri-maryenergyuse(EuropeanCommission2021e).InJuly2021,theproposalforanewdirectiveonenergyefficiencyhasbeenputforwardaspartofthepackage“DeliveringontheEuropeanGreenDeal”.Thenew36%-/39%-efficiencytargettranslatestoanenergyconsumptionofmax.1023Mtoeofprimaryand787Mtoeoffinalenergy.ThismeansMemberStateshavetoalmostdoubletheirannualenergysavingsfromprevious0.8%tonow1.5%.Forthepublicsectorssuchasbuildings,transport,waterandstreetlighting,thistargetissetto1.7%togiveagoodexample(EuropeanCommission2021c).Theproposalalsoincludesanadaptionofthegovernanceregulation.Therathersoftmechanismsthatwereinplacetoregu-latetheactionofMemberStatestoadheretoefficiencytargetswerefoundtoleadtoalowerlevelofcomplianceascom-paredtosomewhatharderregulationsforrenewableenergytargets.Itfurtherlegallyanchorsthe“EnergyEfficiencyFirst”principle.10Source:(EuropeanCommission2021c)Anewarticle(Article3)obligesMemberStatestoensurethisprinciplealsoinnonenergysectorsaswellasinpolicyandin-vestmentdecisions,andtomonitorandreportontheapplicationandexpectedsocietalbenefits.RecommendationsandBox1.TheEnergyEfficiencyFirstPrincipleThekeyroleofenergyefficiencyissupportedintheEEDbytheEnergyEfficiencyFirstPrinciple.Itisrecog-nisedasaguidingprincipleoftheUnionenergypolicyandshouldbetakenintoaccountacrossallsectors,goingbeyondtheenergysystem,atalllevels,includinginthefinancialsector.Energyefficiencysolutionsshouldbeconsideredasthefirstoptioninplanningandinvestmentdecisions,whensettingnewrulesforthesupplysideandotherpolicyareas.EnergyefficiencyshouldberecognisedasacrucialelementandapriorityconsiderationinfutureinvestmentdecisionsontheUnion'senergyinfrastructure.Theenergyefficiencyfirstprincipleshouldbeappliedtakingprimarilythesystemefficiencyapproachandsocietalperspectiveintocon-sideration.Consequently,itshouldhelpincreasetheefficiencyofindividualend-usesectorsandofthewholeenergysystem.Applicationoftheprincipleshouldalsosupportinvestmentsinenergy-efficientsolutionscontributingtoenvironmentalobjectives.Forexample,allMemberStates,NationalRegulatoryAuthorities,transmissionanddistributionsystemoperatorsshouldapplythe`EnergyEfficiencyFirst´principleandre-moveallregulatory,technicalandnon-regulatorymeasuresforenergyefficiencyimprovementsintheoper-ationofenergynetworks.Inordertohaveanimpact,theenergyefficiencyfirstprincipleneedstobeconsistentlyappliedbydecisionmakersinlarge-scaleinvestmentswithavalueofmorethan50euromillioneachor75euromillionfortransportinfrastructureprojects–affectingenergyconsumptionorsupply.Article3quotesthefollowingintheenergyefficiencyfirstprinciple:1.Inconformitywiththeenergyefficiencyfirstprinciple,MemberStatesshallensurethatenergyefficiencysolu-tionsaretakenintoaccountintheplanning,policyandmajorinvestmentdecisionsrelatedtothefollowingsec-tors:(a)energysystems,and(b)non-energysectors,wherethosesectorshaveanimpactonenergyconsumptionandenergyefficiency.2.MemberStatesshallensurethattheapplicationoftheenergyefficiencyfirstprincipleisverifiedbytherelevantentitieswherepolicy,planningandinvestmentdecisionsaresubjecttoapprovalandmonitoringrequirements.3.Inapplyingtheenergyefficiencyfirstprinciple,MemberStatesshall:(a)promoteand,wherecost-benefitassessmentsarerequired,ensuretheapplicationofcost-benefitmethod-ologiesthatallowproperassessmentofwiderbenefitsofenergyefficiencysolutionsfromthesocietalper-spective;(b)identifyanentityresponsibleformonitoringtheapplicationoftheenergyefficiencyfirstprincipleandtheimpactsofplanning,policyandinvestmentdecisionsonenergyconsumptionandenergyefficiency;(c)reporttotheCommission,aspartoftheintegratednationalenergyandclimateprogressreportsinaccord-ancewithArticle17ofRegulation(EU)2018/1999onhowtheprinciplewastakenintoaccountinthena-tionalandregionalplanning,policyandmajorinvestmentdecisionsrelatedtothenationalandregionalenergysystems.11detailedguidelinesprovidedbytheEUtoMemberStatesaresupposedtohelpimplementthisprinciplepractically(Euro-peanCommission2021d).AnewformulafordistributingemissionsamongMemberStatesissupposedtoensurecompli-ancewiththetargetsbysettingobjectivecriteria:aflatrateshare,asharebasedontheGDPpercapita,asharebasedontheenergyintensityandasharebasedonthecost-efficientpotential.Additionally,nationaltargetsforbothfinalandpri-maryenergyhavetobesetinordertocomplywiththetargetsthuscalculated.Arecentstudy(FraunhoferISI/Scheuer2021)assessedtheFit-for-55packagepublishedbytheCommission,aswellastheformulaproposedbyMemberState.Itprovidedhigh-levelrecommendationsforstrengtheningthetargetambitionbasedontheformula,byincreasingtheweightputontherealisationofthecost-efficientEEpotentials.Theproposalfurtherintroducesanenhanced“gap-fillingmechanism”incaseacountryfallsbehinditstargetsandobligesMemberStatestosupportvulnerablegroupswithefficiencymeasurestoalleviateenergypoverty,whichisensuredbyamandatoryshareofenergysavingsamongthosevulnerablecustomers.TheeffortswillbefinancedbytherevenuesfromthebuildingsandtransportsectoroftheEUEmissionTradingScheme,thatfeedintoanewlyestablishedSocialCli-mateFund(EuropeanCommission2021k).Furtheramendmentsforthepublicsectorarea3%renovationratefortotalfloorareaofbuildings,considerationofeffi-ciencystandardsonalllevelsinpublicprocurementandaannualreductionoffinalenergyuseofthepublicsectorby1.7%(Pauseetal.2021).Itfurtherenvisionsenergymanagementsystemsasdefaultobligationforlargeenergyconsumers,out-linesstricterplanning,reachingouttolocalandregionallevelsandrequirementstoensurecompetenceofenergyserviceproviders,auditors,managersandinstallers(EuropeanCommission2021k).Supplyofheatingandcoolinghastobeplannedcomprehensivelyandthestandardsfortheefficiencyofheatingandcoolingnetworksarebeingincreased.ApositionforthemonitoringoftheapplicationoftheEfficiency-FirstPrincipleneedstobeestablishedbytheMemberStates.Thepolicyalsoaddressesnationalenergyregulatorsdirectlybyobligingthemtoapplytheprinciplealsointheop-erationofgasandelectricitynetworks.Memberstates,ontheotherhand,areobligedtoensurethatnetworkoperatorsapplytheprincipleintheplanningofthenetworks(Pauseetal.2021).EnergyefficiencyinthebuildingsectorisregulatedintheEnergyPerformanceofBuildingsDirectivethatisintendedtoberenewedbytheendof2021.InOctober2020,theCommissionpresenteditsrenovationwavestrategy,aspartoftheEuro-peanGreenDeal.Itcontainsaconcreteactionplanandmeasurestoachieveatleastadoublingoftherenovationrateofbuildingsby2030.ThiswillalsoplayaroleintheupcomingrenewaloftheEnergyPerformanceofBuildingsDirective,forwhichpublicfeedbackhasbeencollectedaswellasinputfromstakeholdersinvariousworkshops.Currently,thedirectivecomprisesmeasuressuchastheobligationofMemberStatestoestablishlong-termstrategiestodecarbonisethebuildingstockuntil2050,anobligationtoexclusivelybuildnearlyzero-energybuildingsfrom2021onwards,theissuingofenergyperformancecertificatestoconsumers,theestablishmentofinspectionschemesandthepromotionofsmartbuildingtechnologieslikeregulationsystems.TheCommissionhasestablishedasetofstandardsandaccompanyingtechnicalre-portstosupporttheEPBDcalledthe"EnergyPerformanceofBuildingsStandards"(EuropeanCommission2021f).Therenovationwavestrategyisalsomeanttoaddressresidents'qualityoflife,thecreationofgreenjobsandenergypov-erty.Anewsmart-readinessindicatoraimsatpromotingdigital-friendlyrenovation,integratingrenewableenergyandenablingmeasurementofactualenergyconsumptionbyraisingawarenesstotheabilityinbuildingstooptimiseenergyefficiency,adapttheiroperationtotheresidents'needsandadapttosignalsfromthegrid.Thelong-termrenovationstrategiesmustincludeanoverviewofthenationalbuildingstock,policiestopromoterenova-tioncost-effectively,especiallytargetingworstperformingbuildingsaswellasinitiativestopromotetechnologiesandcompetenceinthesector.Plannedmeasuresandmeasurableindicatorsmustbegiven.Thetransitionismeanttobesup-portedbytheEUBuildingStockObservatorytool,whichprovidesdataonawiderangeofbuildingstockcharacteristicsandperformanceindicatorsforallEuropeancountries(EuropeanCommission2021f).Itcanbeusedtomonitorprogressandsupportplanning.BesidesthemoregeneralfundingstreamsoftheEUthatapplytothebuildingsector,morespecificfi-nancialinstrumentswillbedevelopedbetween2021and2027(EuropeanCommission2021g).Furthermore,thedevelop-mentofsustainable,energy-efficientarchitectureispromotedintheinitiative“NewEuropeanBauhaus”AnimportantmeansbywhichtheEUsupportsenergyefficiencyonthegenerationofelectricityisbyobligingtheMemberStatestoconductcost-benefitsanalysesonthepotentialofcogeneration(EuropeanCommission2021b).Sincethere-newal12oftheEnergyEfficiencyDirectivein2012,energycompaniesarealsodirectlyrequiredtoachieveyearlyenergysavingsof1.5%ofannualsalestofinalconsumersbyhelpingthemtoimprovetheirenergyefficiency(e.g.byinsulation,behaviouralchangeorimplementationofnewheatingsystems)(EuropeanCommission2021i).Furthermore,theEUhasastrongimpactontheefficiencyofappliancesbymeansoftheEuropeanEnergylabelandEcode-signrequirements.ClimateNeutralityFrameforEnergyEfficiency–EnergyPolicySWOT-AnalysisStrength–currentframeworkWeakness–policyimprovementAstrongsetofambitiousandinteractingpolicies:EUGreenDealEuropeanClimateLawSetofambitioustargetsfor2030/2050.Co-herencebetween2030(55%GhGreduc-tion)and2050targets(climateneutrality)GovernanceoftheEuropeanUnion”NationalEnergyandClimatePlans(NECP)for2030Nationallong-termstrategiesEfficiency-FirstPrinciple&concreteguide-linesforitsimplementationEnhanced“gap-fillingmechanism”NewformulafordistributingemissionsamongMemberStatesSupporttovulnerablegroupsinthetransi-tionprocessIncoherencebetweenEuropeanandMemberStatestargetsLackingtranslationoftheEnergyEfficiencyFirstPrincipletothenationallevelLackinoperationalimplementationoftheEn-ergyEfficiencyFirstPrinciple(only"Slogan")TargetsdonotrepresentfullEEpotentialsOpportunities–newpoliciesandpolicyoptionsThreats–barriersandmarketshortcomings11Regulatorypackagesdeveloped/up-datedintheFit-for-55package,notably:oEnergyEfficiencyDirectiveoEnergyPerformanceofBuildingsDirectiveLackingacceptanceofimpactsofthetransitionprocess(suchasresistanceagainstincreasingenergytaxesandprices;obligationsonexistingbuildingstorenovateetc.)2.2ClimateNeutralityFrameforEnergyEfficiencyinGermanyTheGermanclimateprotectionframework(Figure4)isformedbygeneralgoals,targetsandstrategy,measuresandpro-grammes.TheheadlineisgivenbytheParisAgreement.Nationaltargetsandalong-termstrategyaregivenbytheEnergyConcept,ClimateActionPlanandtheClimateChangeAct(Bundes-Klimaschutzgesetz2019).TheEnergyEfficiencyStrategy(EffSTRA)spellsouttargetsandmeasuresmorespecificallyforenergyefficiency(BMWi2019).Inthefuture,theframeworkwilllikelybeenhancedbyastrongerintegrationofresourceefficiencytoenergyefficiencypolicy.44Roadmapenergyefficiencyrecommendstolinkthetwotopicsmorestrongly.Theysuggestspecificallytobetterlinkandcombineinformationandguidancebythe(different)ministriesresponsibleforresourceefficiencyandenergytoeaseaccessforstakehold-ers(BMWi2021a:14).Furthermore,theysuggesttointegrateindicatorsformaterialefficiencyintosupportprogrammesforenergyefficiencyinindustry.13Thetargetsarecomplementedwithseveralprogrammesbundlingspecificmeasures:thenationalactionplanforenergyeffi-ciency(NAPE)andRoadmapEnergyEfficiency2045,theclimateactionprogrammeaswellasimmediateactionprogrammes.Targetsandprogrammesarecomplementedwithmonitoringandevaluation.ImportantboundaryconditionsforGermanenergyandclimatepolicyaregivenbythenuclearphaseoutuntil2022whichhavebeenagreedin2011aswellasthedecisiontophaseoutligniteandhardcoalin2038atthelatestagreedin2020.Figure4OverviewontheGermanclimateprotectionframework(ownillustration)Source:owncompilation.AdecisionfromthejurisdictionalcourtinGermanyrequiredclimategovernanceinawaytoprotectthelibertyoffuturegen-erations.Thedecisionspecifiesitasadutyofthestatetotakeactiontopreventdisproportionatelimitationofthefundamentalrightoffreedomofyoungergenerationsandplanningsecurity.Thiswasperceivedasacriticaldecisionunderliningtheim-portanceofclimateprotectionandledtorevisionoftheGermanclimatechangeact.Long-termStrategy–TheClimateActionPlanWithintheclimateactionplan,firstpublishedin2016,Germanyunderlinesitscommitmenttothisgoal.Theplanasalong-termstrategyfortransformingsocietyandindustryaimstogiveclearguidancetoavoidstrandedinvestments.Itcontainsthelong-termtargetsforemissionreductionaswellasmilestonesandtargetsforallsectors.Furthermore,itspecifiesguidingprinciplesandstrategicmeasurestobetakenforeachfieldofaction.InaccordancewiththeParisAgreement,theplanisupdatedregularly.Annualclimateprotectionreportsdocumentthestatusofimplementationandarethebasisfortimelycor-rections.EmissionReductionTargets-TheRevisedClimateChangeActTheGermanClimateChangeActspecifiesbindingemissionreductiontargets.Climateneutralityisaimedforby2045.By2030,CO2emissionsshouldbereducedby65%ascomparedto1990andby2040,thetargetedreductioninCO2emissionsis88%ascomparedto1990.From2050onwards,Germanyaimstoachievenegativeemissionsbyabsorptioninnaturalsinks.Theoveralltargetsarebrokendownintosixsectoralreductiontargetsfor„energyindustry",„industry",„transport",„buildings“,„agriculture“and„wasteindustry/other“.Withthisexplicitanddifferentiatedtargetsetting,thewaytoclimateneutralityismadeexplicitandforeseeable.Progresstowardsthegoalscanbemeasuredandmonitored.AnnualreportsaresubmittedtoanexpertcouncilbytheGermanEnvironmentalProtectionAgency.Incaseasectorexceedstheemissionstarget,thegovernmenthastodevelopanimmediateactionprogrammetoensurethatthereductiongoalwillbereachedthefollowing14year.Theexpertcouncilreviewsthedraftprogrammepriortoitspropositionandattachesitsreviewstatementtothedraft.Startingin2022theexpertcouncilwillsubmitbiannuallyanexpertopiniononthetargets,measures,andtrendswithrespecttoclimatepolicy.5Yearlyreductiontargetswillbefixeduntil2030.In2024atthelatest,thereductiontargetsfortheyearsfrom2031to2040willbedetermined.In2034,thereductiontargetsfor2041to2045needtobeset.Figure5showstheleveloftotalGermanGHGemissionsfrom1990onwardsaswellasthereductiontargetuntil2030of543milliontonsaccordingtotheClimateChangeActFigure5Historicemissionsandreductiontargetsfrom2020to2030accordingtotheKSGSource:Owncompilationbasedon(UBA2021b)EnergyefficiencytargetsTheGermangovernmentaimsatmakingtheGermanEconomythe“mostenergy-efficienteconomyintheworld”sinceonlywitha“continuousincreaseinenergyefficiencytheenergytransformationandclimateprotectioncanbereachedeffectivelyandcostefficiently”(BMWi2019:6).Renewableenergysourcesandenergyefficiencyarethetwocrucialleversforachievingtheemissionreductiongoals.Intheshortrun,energyefficiencycontributesdirectlytoemissionreductionbydecreasingtheamountofconventionalgenerationnecessarytocoverdemand.Witharenewable-dominatedenergysystem,asecondeffectbecomesmoreimportant:energyefficiencyhelpstosparetheuseoflimitedresourcessuchasareasforrenewableenergyinstallationsorsyntheticfuels.Ittherebyminimisesthecostofenergysupply(BMWi2019:33).Withintheenergyefficiencystrategy2050(EffSTRA)theGermangovernmentsetsthetargetforenergyefficiencyasare-ductioninprimaryenergyconsumptionby30%in2030comparedto2008andminus50%by2050(Table2).However,withtheincreasedambitionoftheemissionreductionsandwiththerevisionoftheclimateprotectionlaw,thesetargetswillhavetobecomemoreambitious,too.Afirstestimateisfor2030:thetargetshouldbeminus40%.Minus50%shouldbeachievedby2045i.e.fiveyearsearlierthancurrentlytargeted(BMWi2021a;Prognos,Öko-Institut,andWuppertal-Institut2021).Be-yondtargetsetting,thestrategycomprisestheNationalActionPlanforEnergyEfficiency2.0asasetofmeasurestoreachthereductiontargetof30%by2030andoftheroadmapenergyefficiency2050–astakeholder-orientedformattodevelop5https://www.bundesregierung.de/breg-de/themen/klimaschutz/transparenter-klimaschutz-179214415pathwaysandmeasurestoreachthereductiontargetfor2050.Theroadmapisnowupdatedtotheroadmapenergyefficiency2045.Table2OverviewonGermanenergyefficiencyandemissionreductiontargetsNationalActionPlanforEnergyEfficiencyandRoadmapEnergyEfficiency2045In2019,thesecondnationalactionplanforenergyefficiencyNAPE2.0hasbeenpublishedaspartoftheenergyefficiencystrategy2050(BMWi2019).Whilechangesinthegenerationsystemwillcontributenearlyhalftothereductiontargetofpri-maryenergyconsumption,itisclearthatdemand,too,hastodecreasesubstantiallytoreachthegoal.Hence,NAPE2.0isfocusedonthedemandsideoftheenergysystem.Itaddressesallrelevantsectors:buildings,industryandcommercialsector,transportandagriculture.Itfocusesonmeasurestoreducefinalenergydemandinthosesectors.ThemeasuresofNAPE2.0shouldleadtoareductionofprimaryenergydemandby300TWhin2030.Itbuildsonandextendsthemeasuresforenergyefficiencyalreadyagreedintheclimateprotectionplan2030.TheRoadmapEnergyEfficiency20456implementsastakeholderprocessthatinvolvesthebusinesssector,civilsociety,sci-entists,andrepresentativesofthefederalstatesinGermany.Theaimistodeveloppathwaystosubstantialreductionofpri-maryenergydemandby2045andtodevelopconcretemeasuresinadialogue-orientedandjointsettingwithallstakeholders.Theroadmapprocessisstructuredinplenarysessionsandworkinggroupsthatpartiallyhaveasectoralfocusandpartiallyaddresscross-cuttingissues.Aseconddialogueprocess“climateneutralheat2045”hasbeenstartedbytheFederalMinistryforEconomicAffairsandEnergyatthebeginningof2021andcomplementstheRoadmapEnergyEfficiency.Currently,theenergyefficiencystrategyisrevisedtoconformwiththerequirementsfromEUpolicy(Fitfor55)aswellasthenewtargetsinGermany.Afurtherissueisthediscussionofasuitableindicatorforenergyefficiencyagainstthebackgroundofgrowingsharesofrenewablesandthenecessitytoreducefinalenergydemand.TheRoadmapEnergyEfficiency2045willdiscusswhethertargetsshouldbeconvertedfromprimaryenergydemandtofinalenergydemandasheadlineindicator(BMWi2021a)GreenEconomicStimulusProgrammesandSupportProgrammesSimilartoseveralothercountries,GermanysetupeconomicstimulusprogrammestosupporteconomicrecoveryfromtheCovid-19relateddownturn.Itintegratedaspectstofosterclimateprotectionwithinthesestimuluspackagestoassurethateconomicrecoverygoeshandinhandwithandnotagainstthenecessarytransformationtowardsclimateneutrality.6https://www.bmwi.de/Redaktion/DE/Dossier/Energieeffizienz/roadmap-energieeffizienz-2045.html16In2020and2021,Germanyprovided80billionEuroforclimateprotectionwithintheclimateactionandeconomicstimulusprogramme.7Withtheclimateprotectionimmediateactionprogramme2022,anadditional8billionEurosupportfordecar-bonisationofindustry,greenhydrogen,refurbishmentofbuildings,climate-friendlymobilityandsustainableforestryandagricultureisforeseen.Thegovernmentaimstofurthersupportfinancingofimportantclimateprotectionmeasureswithmorethan93billionEurointheyears2022to2025.Germanyhasseveralprogrammesunderwhichfinancialsupportforenergyefficiencymeasuresisavailableforprivatehouse-holdsaswellasenterprisesandmunicipalities.Theseprogrammestypicallyprovideinvestmentgrantsoraccesstoloansatreducedinterestrates.Theprogrammescanbedifferentiatedinfourcategories:supportforconsultation,entrylevelsupport,systemicsupportandspecializedfunding.Thefundingprogrammesaretypicallytargetedtowardsspecificsectorsandhencementionedintherespectivesubchapters.ThecentralfundinginstrumentinGermanyistheenergyandclimatefund.Thefundisfinancedfromtherevenuesfromauc-tioningCO2allowances,fromtherecentlyintroducednationalemissionspricingaswellasgovernmentmoney.ClimateNeutralityFrameforEnergyEfficiency–EnergyPolicySWOT-Analysis7https://www.bundesregierung.de/breg-de/themen/buerokratieabbau/sofortprogramm-klimaschutz-1934852Strength–currentframeworkWeakness–policyimprovementAstrongsetofinteractingpoliciesasasecondpil-lartotheEuropeanlegislation:EnergyandelectricitytaxNationalCO2-pricingfortransportandheatingNAPEasadetailedsetofmeasuresandmonitoringClimateprotectionprogramme2030quan-tifyingandmonitoringmeasurestoreach2030targetsClimateprotectionimmediateactionpro-gramme2022foradditionalmeasurestoreachtightenedtargetsGreenEconomicstimulusprogrammesin-centivizefirmstobecomemoresustainablewhilesupportingeconomicrecoverysupportprogramsforambitioussolutionsprepareenergyefficiencysolutionsinthemarket.Regulationfollowsandimplementsminimumstandards.DetailedpoliciesinsufficientcomparedtothetargetambitionbyclimateneutralityInefficientpricesignals/barriersforelectrifi-cationfromtaxesandleviesLargetaxexemptionsfortheindustrialsectorwithoutstrongcounterpartinenergyeffi-ciencyachievementsDiscrepanciesbetweenambitionatEuropeanandnationallevel(gaptobeclosedintheframeoftheFit-for-55legislation)Opportunities–newpoliciesandpolicyoptionsThreats–barriersandmarketshortcomingsClimateContractsforDifferencetosupportdecarbonisationofindustryReformoftaxesandleviescouldimprovepriceincentivesforenergyefficiencyandclimateprotectionCombinationofambitiousstandardswithfinancialsupportcouldspeedupdevelop-mentofefficiencysolutionsRefundfromCO2-pricingrevenuescouldreduceburdenforvulnerableconsumersandbusinessDistributionaleffects:highpricesdispro-portionatelyburdenlow-incomehouse-holdswhichlowersacceptance172.3EnergyEfficiency,CompetitivenessandSupplySecurityEnergysavingshavealargenumberofso-calledMultipleBenefits(i.e.benefitsinadditiontoenergysavingswhicharesche-matisedinFigure6).Theycanbegroupedinenvironmental,economicandsocialMultipleBenefits.Twoimportantbenefitsinthislistaresupplysecurity/importdependenceandcompetitiveness.Energyefficiencyhasimportantimpactsonboth.Figure6:MultipleBenefitsofenergyefficiencySource:(ODYSSEE-MURE2021a)Germany'sImportDependenceandtheImpactofEnergySavingsTheGermanimportdependenceishigh:thoughthepercentagehasbeenslightlydecreasingsince2000,itisabove70%.TheGermanenergysystemdependstomorethantwothirdsonforeigncountries.Oilandgasaloneaccountfor57percentagepointsoutofthe>70%.Theremainderisassociatedwithcoalandnuclear.Nevertheless,energyefficiencyhasloweredtheimportdependenceoverthelast20yearsbymorethansevenpercentagepointsfromaround77to70%,contributingtothestabilityoftheenergysysteminGermany(Figure7).Figure7:ImportdependenceofGermany(actualandwithoutenergysavings)18Source:Owncalculationbasedon(AGEnergiebilanzen2021;ODYSSEE-MURE2021b)Competitiveness:AdvantagethroughExportofEnergyEfficiencyTechnologiesThecompetitivenessofanindustryisgenerallystronglyimpactedbyloweringfactorcosts,inparticularwhenenergyandcarbonpricesarerising.However,energyefficiencydoesnotonlyimprovegeneralcompetitivenessbyloweringfactorcostsbutalsobycreatingtechnologysupplyindustries,whichareabletoexporttheirgoodsworldwide.Germanyisacountrywithalargeshareinworldexport.Energyefficiencytechnologiescontribute,nexttorenewableenergytechnologies,substantiallytothissuccess.Germanexportsofenergyefficiencytechnologiesamountto12%oftheworldtradeinthisfield(20billionUSD,approximately17.7billionEUR),onlytoppedbyChinawithroughlydoubletheexportvolumeandashareofnearlyaquarterinworldtrade(Figure8).Incomingyears,thesetechnologieswillsubstantiallyexpand.Figure1:Worldwideexportvolumeofgoodsrelatedtoenergyefficiencyin2017bycountry(BillionUSD)Source:(GWS2020)193.Part2:FactSheetsandCaseStudiesonBestPracticeMeasuresandPoliciesforEnergyEfficiencyThischapteranalysisenergyefficiencypoliciesinfiveareasinGermany:•Cross-cuttingenergyefficiencypolicies•Energyefficiencypoliciesforthebuildingsector•Energyefficiencypoliciesfortheindustrysector•Energyefficiencypoliciesaddressingappliances•EnergyefficiencypoliciesforthetransportsectorTheenergyefficiencypoliciesineachareaareanalysedintwosteps:1.FactsheetsforeachareawhichpresentaconciseoverviewofpoliciesandtrendsincludingaSWOT-Analysisofthepoliciesinthearea2.CaseStudiesofpoliciesineachareawhichdiscusssuccessesandfailuresandwhichcondensethefindingsinanin-dividualSWOT-Analysisofthepolicy3.1Cross-cuttingEnergyEfficiencyPolicies3.1.1FactSheetonEnergyDemandandEnergyEfficiencyinGermanyWhatarecross-cuttingpolicies?Cross-cuttingpoliciesmeanpolicyinstrumentswhicharedesignedtofosterenergyefficiencyorclimateprotectionindif-ferentareasorsectors.Thoseinstrumentsareusuallydesignedtotriggerinvestmentsinthefieldswiththehighestcost-benefitratio.Sincecross-cuttingmeasuresaddressalloratleastseveralenergydemandsectors,thepolicydesignrequiresabroaderapproachthatcanaddresssector-specificbarrierstoalimitedextentonly.Forinstance,therearemajordiffer-encesinthewayinvestmentdecisionsaremadeconcerningtheevaluationandknowledgeaboutavailableenergyefficiencymeasures.Nevertheless,cross-cuttingpoliciescanbeeffectiveinstrumentsiftheyaredesignedascomplementaryinstru-mentinapolicybundlewithsector-specificinstruments.InGermany,experienceswithcross-cuttingmeasuresarelimited.Whilethereisalotofresearchonpolicydesignofcross-cuttingmeasuresinGermanyandinthecontextofEUwideinstru-ments,thereisonlyfewexperienceswithimplementedmeasures.Typeofimplementedcross-cuttingpoliciesandrelevanceforGHGemissionsandenergydemandinGer-manyThemaincross-cuttingpoliciesinGermanyarecapandtradeschemesforGHGemissionsandtaxationonelectricityandfossilfuels.Apilotsupportschemethatwasdesignedsimilartoafeed-intariffforenergywasclosedin2021andisthereforenotmentionedinthefollowingfigures.Awidelydiscussedandcomprehensivecross-cuttinginstrumentforenergyeffi-ciencyareEnergySavingObligations.SuchaschemehasbeenimplementedinseveralEuropeanMemberStatesfollowingtherequirementoftheEnergyEfficiencyDirectiveoftheEuropeanUnion.However,thegovernmentinGermanydecidedtofulfiltherequirementswithalternativesector-specificmeasures.Thus,thereisnopracticalexperienceswithanEnergySavingObligationSchemeinGermany.20Figure9:Overviewofenergy/emissionpricingschemesinGermanyandcoverageintermsofemissionsanden-ergydemandSource:OwndepictionIREESbasedon(BMWi2021c;UBA2021b)Cross-cuttingpolicies–EnergyPolicySWOT-AnalysisStrength–currentsetofpoliciesWeakness–policyimprovementThepresentsetofcross-cuttingtechnologieshasamainfocusonCO2pricingandtradinginstru-ments,whicharemajorleversforclimateneutral-ity:ETSwithCO2priceforindustryandenergysectorSince2021,nationalfuelemissiontradingsystemwithCO2pricealsofortransportandbuildingsectorTaxationonfuelandelectricityconsump-tionCurrentlylowCO2priceinthenationalemissiontradingsystemwithlimitedef-fectoneconomicfeasibleofenergyeffi-ciencymeasuresTaxationandotherleviesonelectricityandfuelsfordistrictheatingarecounter-productivesincetransformationtocli-mateneutralenergysystemsrequiresshifttoelectricityinallsectorsaswellasmaintenanceandexpansionofdistrictheatingnetworks21Opportunities–newpoliciesandpolicyoptionsThreats–barriersandmarketshortcomingsExpectedincreaseofCO2pricesLeviesonelectricityfromtheRenewableEnergyActwillbegraduallyreducedinthenextyearsImplementationofanEnergySavingObli-gationschemeorsimilarmarketbasedin-strumentsareindiscussionTemporarypricejumpsofretailfuelpricesreduceacceptanceofCO2pricingandmightleadasuspensionofthena-tionalfuelemissiontradingsystemIncreasinginvestmentcostsforenergyefficiencymeasuresandmissingenergyefficiencymarket3.1.2CaseStudyonCross-CuttingPoliciesCO2-pricing-EUETSplusnationalFuelEmissionsTradingLawObjectivesoftheprogrammeEmissionstradingisamarket-basedpolicyinstrumentforemissionreductions.Cappingallowedemissionsmakesthemascarceresourceandeffectivelyputsapriceoncarbon.Thisenablescompaniestointernalisetheformerlyexternalcostoftheenvironmentalimpactoftheiremissionsandhenceinvestinemissionreductionifthisischeaperthankeepingpolluting.Byallowingtradeofcertificates,amarketcanemergeinwhichemissionswillbereducedwherethisispossibleatleastcostandcompanieswithhighabatementcostcanpurchasecertificates.Thisshallleadtocostefficientreductionofemissionstoapre-definedcap.WithintheEUtheEUETSisthecentralinstrumentofclimatepolicy.DesignoftheprogrammeGermanyfallsundertheEuropeanEmissionsTradingScheme(EUETS)whichisacentralinstrumentofEuropeanclimatepolicy.Installationsfromtheenergyindustryandenergyintensiveindustryareobligedtohandinemissioncertificatesfortheemissionsoftheirinstallations.AEuropeanunion-widecaplimitsthetotalamountofcertificatesavailable.Memberstateshandoutthecertificatestotheinstallations–partlyasfreeallocationandpartlyviaauctioning.Thecertificatescanthenbetradedandapricepercertificatewillforminthemarket.InadditiontotheEUETS,GermanyintroducedaCO2-pricingschemefortransportandheatinginbuildingswithimplemen-tationoftheFuelEmissionsTradingLaw(BEHG2019).Theschemestartedin2021andaimsatputtingapriceonthoseemis-sionsthatarenotcoveredbytheEUETSandtherebycontributetoreachingclimatepolicygoals.Enterprisessellingheatingoil,naturalgas,gasolineanddieselareobligedtobuyemissioncertificatesfortheemissionscausedbytheirproducts.Fortheyearsupto2025,thecertificatepriceisfixedandwillbeannuallyincreasingfrom25Europertonnein2021to55Europertonnein2025.In2026,apricecorridorofminimum55Europertonneandmaximum65Europertonneshallapply.Intheyearsfollowingthisintroductoryphase,certificatesshallbeauctioned.Revenuesshallbeinvestedintotheclimateprotectionprogramme.Anotherpartshallbeusedtoreducetheburdenofin-creasedheatingandfuelpricesforcitizensbyreducingtherenewableenergylevy,increaselivingsupportoramobilitypre-mium.ResultsoftheprogrammeLittleambitiouscapsandeconomiccrisiswithlowproductionvolumesledtolowCO2pricesoftheEUETSinthepast.How-ever,since2017,theCO2pricehasincreasedasaconsequenceofseveralreformstotheEUETS.Mid2021,thepricewasat55Europertonne(UBA2021a).Lowpricesandinsecurityaboutfuturepricedevelopmentareabarrierfordecarbonisationinvestmente.g.inindustry.AnexpectationofstableandhighCO2-pricesonthecontrarycanprovideasettinginwhichcompaniescaninvestindecarboni-sation.SincethenationalCO2-pricingschemeonlystartedin2021,noresultsontheeffectsareavailableyet.22CO2-Pricing–SWOT-AnalysisStrength–experiencefromprogrammeWeakness–experiencefromprogrammeAllsectorsareaddressedbyCO2pricingduetoEUETSandnationalscheme.IncreasingCO2pricesignalsaresenttotheconsumersbutinaforeseeablepricepathwhichmakesiteasierforthetargetgroupstoundertakeappropriatemeasuresCurrentlylowCO2priceinthenationalemissiontradingsystemwithlimitedef-fectoneconomicfeasibleofenergyeffi-ciencymeasuresInvestor-userdilemmainbuildings:CO2pricesarepaidbytenantsOpportunities–perspectivesofprogrammeThreats–barriersandmarketshortcomingsSuggestionforrevisionofthenationalFuelEmissionsTradingLawregardingasplitofCO2costsbetweenbuildingsownersandtenantsPossibleextensionofthenationaltradingschemeforbuildingandtransporttotheEuropeanlevelReductionofacceptancewithincreasingheatingandtransportcost3.2EnergyEfficiencyinBuildings3.2.1FactSheetonMeasuresforEnergyEfficiencyinBuildingsBuildingsectorbyend-usesandrelevanceforenergydemandinGermanyEnergydemandinthebuildingsectorcanbedefined8asen-ergyneededforthermalcon-ditioningofresidentialandnon-residentialbuildings(inservicesector,industryandtransport),includingtheend-useenergydemandforspaceheating,hotwaterandaircon-ditioning.Followingthisdefi-nition,thebuildingsectorac-countsfor34%oftotalfinalenergydemandinGermany.Source:Owncompilationbasedon(BMWi2021c)8ThescopeoftheGermanbuildingsectorisdifferentlydefinedinthevariouspoliticaltargetsandassociatedstudies,makingcom-parabilitysometimesdifficult.23DevelopmentofGHGemissionsandtargetpathGHGemissionsinthebuildingsector9havebeenreducedby42%to120MtCO2-eq.intheperiod1990to2020.TheCli-mateChangeActdefinesper-missibleGHGemissionsof70milliontonsby2030withan-nualminimumreductionsteps.Thetargetachievementiscontrolledonannualbasisandiftargetsarefailed,theresponsibleministryisre-quiredtoputnewpolicymeasuresinplace,whichareevaluatedbyanindependentexpertcouncil.Source:Owncompilationbasedon(UBA2021b)BuildingSector–EnergyPolicySWOT-AnalysisStrength–currentsetofpoliciesWeakness–policyimprovementAcomprehensivesetofpolicies,comprisingregula-tionofnewandexistingbuildings,subsidyschemesadviceandfossilfuelpricingschemes:BuildingEnergyAct(GEG)oMandatoryenergyefficiencyrequire-mentsonnewbuildingsandbuildingren-ovationoRequirementsonprimaryenergyandqualityofthebuildingshellFederalFundingforefficientbuildingsoInvestmentsubsidiesandsoftloansforambitiousefficiencystandardsandindi-vidualmeasuresoAdditionalsupportforsustainablemate-rialsoEstablishmentofmarketstandardsforbuildingdevelopers–EfficiencyHouseDefinitionofminimumenergystandardsisstrictlylimitedtoeconomicefficiency,nottorequirementsduetotargetsEnergyperformancestandardsforexist-ingbuildingshavenotbeentightenedsince2009Energycertificatesarepoorlyestablishedsincedifferentcalculationmethodscanbeusedwhichleadstoalackofcompa-rabilityamongbuildings10Lackofpolicyinstrumentthataddresscraftsmen,installersorotherrelevantprofessionalsStilllowCO2priceswithlimitedeffectsexpectedincreaseofCO2pricesinthefutureisnotnecessarilyconsideredinin-vestmentdecisionstoday9AnotherdefinitionforthebuildingsectorisgivenbytheGermanClimateChangeAct.Accordingtothelaw,thebuildingsec-toraccountsforallGHGemissionsfromhouseholdandservicesector.10Energycertificatescaneitherbecalculatedbasedontheenergyconsumptionofthelastthreeyearorbasedonthebuildingcharacteristics(u-Values,geometries)withanenergymodellingsoftware24Financialsupportforcomprehensiveen-ergyadvicesandrenovationroadmapinbuildingso80%ofcostisfundedoQualitystandardsforenergyadvisershavebeenestablishedFederalEmissionTradeAct(BEHG)oCO2pricesforfossilfuelsusedforheat-ingandtransport(non-ETSsectors)MissingcomplianceandfewcontrolofregulationsOpportunities–newpoliciesandpolicyoptionsThreat–barriersandmarketshortcomingsBanonnewinstallationoffossilfuelboilersAddressingof“WorstPerformingBuildings”byrenovationobligationoradditionalfi-nancialsupportDevelopmentofregionalimplementationcentresforenergyefficiencyinbuildingsFurtherdevelopmentofminimumenergyperformancestandardsincombinationwithfinancialsupportforrequirementswhichareeconomicallynotfeasibleFinancialsupportfortrainingoftechniciansLongreinvestmentcyclesMajorityofimplementedmeasuresarenotcompatiblewithclimateneutralitytargetsShortagesofprofessionalsandrequiredskillsVerylowtransparencyaboutcostsandmeasuresNocommonmarketforenergyefficiencyinbuildingsmostlyregionaloperatingsmallfirmsandinstallerswithnoholisticapproachConflictingrecommendationsonmeasuresbydifferentstakeholders3.2.2CaseStudiesonPoliciesforEnergyEfficiencyinBuildingsFederalFundingforefficientbuildingsObjectivesoftheprogrammeTheFederalFundingforEfficientBuildingsmergedtheexistingfinancialsupportprogrammesforenergyefficiencyandre-newableenergiesinbuildingsin2020(BAFA2021;BAnzAT18.10.2021B22021;BAnzAT18.10.2021B32021;BAnzAT18.10.2021B42021).Furthermore,itprovideshighersupportbudgetandhigherspecificsubsidies.Theexistingprogrammeshavebeenverysuccessfulnotonlyinintermsofimplementedenergyefficiencymeasuresbutalsoinestablishingmarketstandardsregardingqualityandminimumefficiencystandardsoftechnologiesaswellasholisticconstructionstandardsforhigheffi-ciencybuildings.Theprogrammeaddressesthewholebuildingsectoraimingatresidentialandnon-residentialbuildingsaswellasnewbuildandrenovationofexistingbuildings.Itsupportsfabricmeasuressuchasinsulationofbuildingenvelopeandefficientwindowsaswellasrenewableheatingsystems.DesignoftheprogrammeToaddressdifferentinvestmentdecisionssituations,theprogramsupportsbothindividualmeasures,suchasinstallationofefficientwindows,insulationofbuildingpartsornewheatingsystems,andholisticrenovationstoachieveambitiousenergyperformancestandards.Thesupportedenergyperformancestandards.thesocalledEfficiencyHousesdifferwithregardtotheresultingenergyefficiencyofthebuildingshelfandtheprimaryenergydemand(Figure10)comparedtotheminimumrequirementdefinedfornewbuildingsintheBuildingsEnergyAct(GEG2020).25Figure10:ConnectionbetweenminimumrequirementsandfundinglevelsforefficiencyhousesinexistingbuildingsSource:OwnillustrationIREESTheenergyefficiencyofthebuildingenvelopeismeasuredbythetransmissionheatlosscoefficientresultinganaverageu-Valueofthebuildingenvelope.Furthermore,additionalfinancialsupportisprovidedifatleast55%oftheheatingdemandiscoveredbyrenewableenergysources.Theprogrammealsoaddresseslifecycleefficiencyofthebuildingsbygrantingaddi-tionalsupportfornewbuildingswithlowenergyconsumptionandgreenhousegasemissionsgeneratedbyconstruction,in-cludingthemanufacturingphaseandupstreamsupplychains.ResultsoftheprogrammeFigure11showstheresultsoftheprogrammesegmentsupportingenergyefficiencymeasuresinexistingresidentialbuildings.Theprogramme“EnergyEfficientRefurbishment”whichisnowpartoftheFederalFundingforEfficientBuildingspro-grammehasbeenevaluatedfortheperiod2005to2017(Diefenbachetal.2018).Thesupportedandimplementedmeasureswithinthisperiodhaveledtoadditionalannualsavingoffinalenergydemandof20.4TWhwhichrepresentsroughly3%ofthetotalfinalenergydemandofthebuildingsector.ThecorrespondingGHGannualemissionsavingsaccountfor7.5milliontonsCO2eq.Theprogrammehassupportedenergyefficiencymeasuresinexistingbuildingswithatotalnumberof2.87milliondwellingsleadingtoinducedinvestmentinenergyefficiencymeasuresof73.4billioneuros.26Figure11:Impactoftheprogrammepart“EnergyEfficientRefurbishment”Source:Owncompilationbasedon(Diefenbachetal.2018)Intheprogrampartforefficientnewbuildings,1.15milliondwellingshavebeensupported.Thefiguresillustratethehighrelevanceoftheprogrammeforthebuildingsectorwhenitisconsideredthatabout10%ofalldwellingsinGermanyhavebeenaffectedeitherbysupportforambitiousrenovationmeasuresorforefficientnewbuildings11.Sincethespecificsubsidiesandoverallbudgethavebeenfurtherimprovedin2020withinthenewFederalFundingforEffi-cientBuildingsprogram,anevenhigherimpactisexpected.Comparedtothe2019,numberofgrantapplicationsincreasedsignificantlybetween60%and190%dependingontheprogramsegment(OekoInstitute2021).FederalFundingforEfficientBuildings–SWOT-AnalysisStrength–experiencefromprogrammeWeakness–experiencefromprogrammeDifferentiatedfundingforindividualmeasuresanddifferentefficiencyhousestandardsHighsubsidiesforambitiousmeasuresEfficiencyhousestandardsareestablishedstandardsinthehousingmarketHighimpactespeciallyinthesegmentofnewbuildingsFundingisstillgrantedformeasureswhicharenotcompatiblewiththecli-mateneutralitygoalsEfficientfossilfuelboilershavebeensub-sidiesuntil2019–nowonlyincombina-tionwithrenewablesystemsOpportunities–perspectivesofprogrammeThreats–barriersandmarketshortcomings11In2017,thetotalnumberofdwellingsinGermanywas41.97million.27Shiftingsupportbudgetfromnewbuildingstoholisticrenovationmeasureswithambi-tiousstandardsGrantsshouldonlybegiventomeasureswhichsupporttransformationtoclimateneutralityofthebuildingsFurtherdevelopmentofsustainablere-quirementswithrenovationmeasurescon-sideringlifecycleanalysisofusedmaterialsComplexityregardingthedifferentstand-ardsandintheverificationprocessofambitiousholisticrenovationmeasuresleadstofocusonindividualsinglemeasuresInvestor-userdilemmainrentedbuild-ingsLackoftransparencyaboutinvestmentsforrenovationmeasuresFederalfundingforenergyadviceinresidentialbuildingsObjectivesoftheprogrammeTheprogram“Federalfundingforenergyadviceinresidentialbuildings”supportsowners,homeowners'associations,andtenantsofresidentialbuildingsbytheimplementationofenergyefficiencymeasures(BAnzAT04.02.2020B12020).Theob-jectofthefundingisenergyadviceforresidentialbuildings,whichshowsthepersonbeingadvisedtheoptionsforenergy-efficientbuildingrefurbishment.Theenergyadviceprovidesacomprehensiveinformationandbasisforinvestmentdecisionsmaking.DesignoftheprogrammeFundingisprovidedintermsofsubsidiesforadvisoryservicesforresidentialbuildingsthatareatleast10yearsold.Theamountoffundingis80%oftheeligibleconsultancyfee,uptoamaximumof1,300eurosfordetachedorsemi-detachedhousesandamaximumof1,700eurosforresidentialbuildingswiththreeormoreresidentialunits.Recipientsoffundingareenergyconsultantsapprovedbythegrantingauthority.Aprerequisiteforfundingisthattheenergyadvisormustbeneutralwithregardtomanufacturers,suppliers,productsandsalesandmustandmayneitheracceptnordemandacommissionorpecuniaryadvantagefromathirdparty.Grantapplicationscanonlybesubmittedbyenergyadvisorsthatareapprovedunderthefundingprogramme.Theenergyadvicemustconsistatleastofon-sitedatacollection,preparationofanadvicereportandhandingitoverwithsubsequentexplanationtothepersonbeingadvised.Inadditiontotheon-siteconsultationbyacertifiedenergyadvisor.Inaddition,buildingownerscanreceivean“Individualrenovationroadmap”.Theindividualrenovationroadmappresentsbuildingownerswiththeindividualoptionsforstep-by-steprenovation.Thecompositionoftherenovationmeasuresisbasedonthebuilding,theindividualneedsandpersonalwishesofthehomeowner.Theadvantageisthatholisticenergyefficiencyrenovationcanbebrokendowntostep-by-stepmeasureswhichcanbeimplementedoverseveralyearsdependingontheindividualfinancialandpersonalsituationoftheowner.Theindividualrenovationroadmapisvaletfor15yearsandincludes2to5successiverenovationpackageswithinformationonthechronologicalorderaswellastheamountofthecostsoftherespectiveefficiencymeasures.Theidentifiedmeasuresintheindividualrenovationroadmapareeligibleforfunding(seecase1).28Figure12:Examplefortheillustrationofanindividualrenovationroadmapwith5packagesSource:(BMWi2017);owntranslationResultsoftheprogrammeAnevaluationoftheimpactoftheprogrammeisavailableuptothefundingperioduntil2018(PWC2019).Sincethespecificfundingwasimprovedfrom60%to80%in2020,numberoffundingapplicationsandconductedenergyadvicesareexpectedtoincreasesignificantly12.Intheperiod2014to2018,theprogrammesupportedabout260000comprehensiveon-siteenergyadvicesinresidentialbuildingswithanimplementationrateof64%and84%includingplannedmeasures(Figure13).Ac-cordingtotheindependentprogrammeevaluation(PWC2019),theadditionalinducedinvestmentsasdirectlyresultsoftheenergyadviceareonaverage33139EUROperbuilding.Thesuggestedandimplementedenergyefficiencymeasuresleadtoadditionalenergysavingsof3478GWhuntil203013.Thus,theprogrammeishighlysuccessfulifadditionalsavingscomparedtosubsidiesandprogramcostresultinginadditionalenergysavingsof661kWhorGHGemissionsavingsof150kgCO2eqperEUROprovidedasfunding.12Numberonfundingapplicationsfortheperiod2020–2021havenotbeenpublishedyet.13Thereby,itisconsideredthatenergyefficiencymeasuresthatareimplementedtodaywillleadtoannualenergysavingsoverthelifetimeoftherespectivebuilding.Thenumberconsidersenergysavingsfrommeasuresimplementedin2014to2018until2030.29Figure2:Impactofthe“Fundingforenergyadviceinresidentialbuildings”intheperiod2014to2018Source:OwncompilationIREESbasedon(PWC2019)FederalFundingforEnergyConsulting/IndividualRenovationRoadmap–SWOT-AnalysisStrength–experiencefromprogrammeWeakness–experiencefromprogrammeHighfundingefficiencyEasyaccessforbuildingownersapplica-tionandverificationisdownbycertifiedenergyadvisorsIndividualrenovationroadmapasstep-stepbystrategyforachievingoverallgoalEnergyadviceleadsonaveragetosignifi-cantlyhigherinvestmentswithmoreambi-tiousenergyefficiencymeasuresHighfundinglevelwith80%subsidiesHighlevelofsatisfactionwiththecon-ductedenergyadviceLackofawarenessfortheprogramwithbuildingownersLackofawarenessforavailablemarket-ingmaterialwhichisavailableforenergyadvisorsforfreeLevelofdetailofmeasuresandinfor-mationforhomeownerspresentedintheindividualrenovationroadmapisratedtoolowbytheenergyadvisorsOpportunities–perspectivesofprogrammeThreats–barriersandmarketshortcomingsIntensificationofstakeholderspecificpub-licrelationsworktoincreaseawarenessoftheprogrammeImprovementofqualificationforenergyadvisorsregardingclimateneutralitygoalsGapbetweenenergyadviceandimple-mentationenergyadvisorsarenotal-lowedtorecommendcraftsmenandin-stallersforimplementationofenergyef-ficiencymeasuresLackofqualifiedenergyadvisors30Supportingenergyadvisorsintheprepara-tionoftheadvisoryreportsinsoftwarepro-grammesbybuildingupregionalenergyef-ficiencycentresRecommendationsgiveninenergyad-visedooftennotmatchthepolicygoalsofclimate-neuralbuildings3.3EnergyEfficiencyinAppliances3.3.1FactsheetonmeasuresforEnergyEfficiencyofAppliancesAppliances(HouseholdsandServiceSector)byend-usesandrelevanceforenergydemandinGermanyEnergydemandofappliancescanbedefinedasenergyneededforlighting,ICT,me-chanicalenergyaswellaspro-cessheat/coldinhouseholdsandservices(forcooking,coolingandrefrigeration).Followingthisdefinition,ap-pliancesaccountfor14%ofto-talfinalenergydemandinGermany.Source:Owncompilationbasedon(BMWi2021c)DevelopmentofGHGemissionsandtargetpathGHGemissionsofelectricityproductionandthusoftheen-ergyconsumptionforappli-anceshavebeenreducedby46%to107MtCO2-eq.intheperiod1990to2020underthecombinedeffectofelectricitysavingsanddecarbonisationofthepowersector.TheClimateChangeActdefinespermissi-bleGHGemissionsonlyfortheoverallenergysupply,inwhichelectricitypresentsasubstan-tialshare.Projectingthetar-getsofenergysupplytoappli-ances,the2020targetwouldbe136MtCO2-eq,andthe2030targetwouldbe46MtCO2-eq.Source:Owncompilationbasedon(AGEnergiebilanzen2021;BMWi2021c;UBA2021b)31Appliances(HouseholdsandServiceSector)–EnergyPolicySWOT-AnalysisStrength–currentsetofpoliciesWeakness–policyimprovementAcomprehensivesetofsixmainmeasures,thefirsttwoharmonisedwithEuropeanframe(bothforhouseholdsandtheservicesector):Eco-designoHighimpactoEffectivelyspeedsupmarketdevelopmentsEnergyLabellingoLargeMarket,highrecognitionoSimpleanduniversaltoolforalotofappli-ancesSubsidyprogrammesundertheNationalCli-mateInitiativeNKI(cold/airconditioning;munici-palinvestmentdirective),theFederalSupportProgrammeforEnergyEfficiencyincompaniesandtheKfWEfficiencyProgrammeEnergyauditobligationsforcompanieswhicharenotsmall/mediumsize(SME)EnergyEfficiencyandClimateProtectionNet-worksSmalleraccompanyingmeasures:EnergyandelectricitytaxEcologictaxreformReformofthechargesfromrenewableenergysupportonelectricityPilotprogramme"SavingMeter"Energyadvicetopoorhouseholds("Electricitysavingcheck")Eco-design/labellingpoliciesgraduallyhaveexhaustedtheirlong-termpotentialsforelec-tricappliancesDistributionalimpactsareconsideredinasys-tematicmannerbysupportingenergyeffi-ciencyinenergypoorhouseholdsAuditrecommendationsarenotsystemati-callytranslatedinpracticewheneconomicOpportunities–newpoliciesandpolicyoptionsThreats–barriersandmarketshortcomingsInclusionofnewproductgroupsandtighteningofstandardsunderEco-design/labellingIncreasingelectricity/energyprices(triggeredbytheEUEmissionTradingSchemeETS,fuelpricesandstrategicissuesaroundgasdeliveryinEu-rope)makesavingmeasuresmoreattractiveIntelligentappliances/smartmetersmaybothcontributetoaflexibleenergysystemandtoen-ergysavingsReboundeffectsbothinthehouseholdandservicesectorcanbeimportant:sizeofappli-ances,thedurationofuse,increasingnumberofappliances(e.g.screensinpublicareas,LEDs)Distributionaleffectsduetohighchargesonelectricityandfossilfuelsimpactlow-incomehouseholds.Supportmeasuresarerequiredforthoseconsumergroups323.3.2CaseStudiesonPoliciesforEnergyEfficiencyofAppliancesEco-designandlabellingofappliancesObjectivesoftheprogrammeGoingbackto1992,theEULabellingDirectivemadeitmandatorytoprovidecomparativeenergylabelsforthesaleofcertainhouseholdappliances(Schleichetal.,2021).Theunderlyingideaistoinformconsumersabouttheusagecoststoexpect,inordertodeterthemfrombuyingproductswithlowpurchasingcostsbuthightotalexpenses.AsshowninFigure14,theinitialschemedifferentiatedbetweensevenefficiencyclasses,goingfromA(best)toG(worst).TheEUEco-DesignDirectivefol-lowed,takingeffectin1999andintroducingMandatoryEnergyPerformanceStandards(MEPS)forarangeofappliances.Fol-lowinganobjectivewhichissimilartothelabellingscheme,thisdirectiveaddressespeople’spropensitytobuyproductsforthesolesakeofalowpurchasingpricebyrequiringallnewappliancestocomplywiththedefinedmandatorystandards.Bothprogrammesaremarketpullmeasuresdesignedtofosterthesaleofenergy-efficientproducts,whilereducingthemarketshareofenergy-inefficientproducts(Schleichetal.2021).Figure3:Labellingandeco-designstandardsregardingcoldappliancesNote:"InthenewEUregulation,thecalculationoftheEnergyEfficiencyIndexEEIhasbeenchanged.Furthermore,theassessmentoftheenergyconsumptionismostlybasedonIEC62552-3:2015/AMD1:2020,whichisamajorupdatecomparedtothe2007versionofthestandard.Therefore,itisnotpossibletocomparedirectlytheMEPSlevelandenergyclassesofthenewEUregulationsfrom2019withtheolderone."Source:owndesignbasedonandextendedfrom(Schleich,Faure,andMeissner2021)DesignoftheprogrammeThelabellingsystemoftheEUEnergyLabellingschemeisbasedonanenergyefficiencyindex(EEI)calculatedinrelationtostandardvaluesforeveryproduct(EuropeanCommission2009):𝐸𝐸𝐸𝐸𝐸𝐸=100∙𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑒𝑒′𝑠𝑠𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑒𝑒′𝑠𝑠𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐Thereferenceconsumptioniscalculatedthroughaformulaconsideringspecificcharacteristicsofthetestedappliance,thuscomparingittothereferencevalueofasimilarappliancemodel.DuetotechnologicaladvancementandanincreasingshareofclassAlabelsforcertainproductcategories,forsomeappliancesthetopclasshasbeensubdivided(A,A+,A++,sometimesA+++)inordertoaccountforthestronglydifferingenergyefficiency33valuespreviouslylabelledA.Atthesametime,theavailablerangeoflabellingclassesislimitedbythemandatorystandardsdefinedintheEco-DesignDirective,essentiallybanningcertainpoorefficiencyclasses,asdepictedinFigure14(Schleichetal.2021).Addressingthisshiftinenergyefficiencyclasses,thelabellingscheme’s2017revisionreturnedtotheinitialAtoGlabellingrangewithoutanyplussigns(startingfrom2020).Furthermore,itwasupgradedtoaregulation,meaningthatcontrarytoadirective,itimmediatelytakeseffectanddoesnotneedtobeimplementednationally.InGermany,theregulationisenhancedbytwoadditionalpiecesoflegislation(Bundesregierung2021).TheEUEco-DesignDirectivedefinestheminimumenergyperformancestandardsforappliancestoreceivetheCEmarkingandthus,beallowedontheEuropeanmarket.Thesearedeterminedindividuallyforeveryproductcategoryonthebasisofatechnical,economical,andecologicalanalysis.Akeytenetistheaspectofcost-effectiveness,requiringthatnomandatorystandardentailshighercostsforconsumersovertheappliance’slifetime.Therefore,apreliminarystudyiscommissionedbytheEuropeanCommission,interaliaincludingatechnicalandamarketassessment.Thereupon,theEuropeanCommissioncanproceedbycreatingadraftregulation,whichhastoundergoaconsultationforumandanimpactassessment.Alterna-tively,theCommissionisentitledtoacceptvoluntaryagreementsproposedbytherelevantindustry.Asof2021,29Eco-Designregulationsand2voluntaryagreementsareineffect(Bundesregierung2021).ResultsoftheprogrammeOverall,theEUEnergyLabellingRegulationaswellastheEUEco-DesignDirectivehaveproventobeveryexpedientintheirscopetoreduceenergyconsumption(Bundesregierung2021).InGermany,thelabellingschemehasentailedsavingsof2.9TWhin2020(2.9%ofprivatehouseholds’energyconsumption),whileminimumenergyperformancerequirementshaveledtoareductioninconsumptionofadditional14.4TWhin2020(14.5%).Thus,thetwoschemeshaveinstigatedsignificanten-ergysavingsintheresidentialsectorthroughthefosteringofappliances’energyefficiency(Bundesregierung2021).Eco-designandLabellingofAppliances–SWOT-AnalysisStrength–experiencefromprogrammeWeakness–experiencefromprogrammeTwopowerfullandcomprehensive,European-wideharmonisedschemesonstandardsandlabels:Eco-designoHighimpactoEffectivelyspeedsupmarketdevelopmentsEnergyLabellingoLargeMarket,highrecognitionoSimpleanduniversaltoolforalotofappli-ancesEco-designoOnlyenergyuseintheusephaseiscov-eredformostprojectsoMarketsurveillancesometimesweakoCannotcopewithdisruptivedevelopmentsandreacttonewapplicationsoSlowprocessoMostimportantproductgroupsarecov-ered,theremainingnewproductsaretoocomplexordon'toffersufficientimprove-mentpotentialEnergyLabellingoReadjustmentofthelabelclassescreatesuncertaintyforusersOpportunities–perspectivesofprogrammeThreats–barriersandmarketshortcomingsFocusontheLCAapproachInclusionofsocialaspectsintheassessment(e.g.workingconditions)Reboundeffectsarenotproperlyaddressed(efficiencyvs.energydemandreduction)Thesubstitutionofoldappliancesisnotdi-rectlyencouragedForsomeprojectcategories,onlysmallim-provementscanbemadeifnobehaviouralchangeisaddressed34Pilotprogramme"Electricitysavingsthroughcompetitivetendering:Exploitingelectricityefficiencypoten-tials"(STEPup!)ObjectivesoftheprogrammeSTEPup!waslaunchedinMay2016asapilotprogrammeundertheNationalActionPlanonEnergyEfficiency(Heinrichetal.2019).Itwasintendedtotestacompetitivetenderingmodelasanewwaytopromoteenergyefficiencyacrosssectors,tech-nologiesandstakeholders.ThedesignoftheGermansupportprogrammeforcompetitivetenderingwasbasedverycloselyonexperiencegainedinSwitzerlandwiththeimplementationofthe"ProKilowatt"programme(BFE2021;Kotin-Förster,Bons,andDinges2019).STEPup!wasintendedtotesttheefficientuseofpublicfundstoachievesignificantelectricitysavings.Inpractice,theapplicantshouldbegivenleewaythroughthecompetitionconcept:withintheframeworkofthespecifications,theycanindividuallydecidewhichfundingvolumetheyapplyfortheirplannedefficiencymeasure(max.30%oftheaddi-tionalinvestmentcosts).New,creativesalesortechnicalsolutionsshouldthusberealisedthroughthefinancialcompetitivepressure.Ifnecessary,newplayersshouldbeencouragedtoenterthemarket,togeneratecompetition.STEPup!ispartofageneralenergypolicytrendtowardstendersasanelementofcontrollingenergypolicy,whichiscurrentlyalsobeingdiscussedintensivelyinconnectionwiththefurtherdevelopmentoftheRenewableEnergySourcesActinGermany.DesignoftheprogrammeTheSTEPup!fundingwasopentoallactorsandisaimedatcompaniesandmunicipalenterpriseswithapermanentestab-lishmentorbranchinGermanyaswellascontractorswhoimplementeligiblemeasureswithintheframeworkofacontractingagreementateligiblecompanies.Fundingwasavailableforinvestmentmeasurestoreduceelectricityconsumption(renewalinvestments,earlyreplacementinvestmentsandadditionalinvestments).Individualandcollectiveprojectscouldbeappliedfor.Individualprojectswereimplementedattheapplicant'spremisesorbyacontractorateligiblecompanies.Collectivepro-jectsconsistofoneormoremeasuresofthesamekindthatarecarriedoutbythirdparties(companies,privateindividuals)andcoordinatedbyaprojectcoordinator.Theprogrammehadthefollowingdesignelements:•Thepaybackperiodofeach(partial)measureshouldbemorethanthreeyearsinrelationtotheelectricitycostssavedwithoutfunding.Thereasonforsettingthelimitat3yearsisthatallmeasuresbelowaregenerallyimplementedaccordingtotheeconomiccriteriaofcompanies(unlessnon-economicbarrierscomeinaddition.•Thesubsidyrateappliedforinthecompetitionshouldnotexceed30%oftheadditionalinvestmentcostsofthemeasures,giventhecompetitiveenvironment.•Thecost-benefitthresholdshouldnotexceed10ctEuro/kWh.Thecost-benefitvalue(fundingefficiencyincent-Euro/kWh)reflectstheamountoffundingrequiredfortheamountofelectricitysaved.Thetenderroundswereeachdividedintoanopenandaclosedround.Theopentendersweregenerallyopentoallsectorsandtechnologies.Theclosedtendersfocusedonspecificsectors,targetgroups,technologiesortopicswithknownhighpotentialsandbarriers,whichweretobeaddressedspecifically.Topicsoftheclosedcallsincluded:•Energeticrefurbishmentofliftsystems•Implementationofefficiencymeasureswithintheframeworkofcontracting•Implementationofelectricityefficiencymeasuresindatacentres•Implementationofefficiencymeasuresindryingandcleaningprocesses,"combinedelectricity-heatprojects"•Implementationofenergyefficiencymeasuresinwaterandwastewatertechnology,"combinedelectricity-heatprojects"•"Combinedelectricity-heatprojects",opentoalltechnologiesandsectorsResultsoftheprogrammeIntotal,89tenderswerefunded,nearlyalloftheadmittedtenders,i.e.nosubstantialcutoccurredwiththeprojectpipeline(Table3).35Table1Step-up!-DevelopmentoffundingfiguresbyfundingyearYearTenderroundNumberoften-dersAdmittedtendersFundedtendersSharefundedten-ders2016round1183211%2017round284338%round363350%2018round426201973%round541282868%2019round652343465%Total151928959%Source:Owndepictionbasedon(Heinrichetal.2019)Intotal,thepilotprogrammesubsidedprojectsinavalueof28.8millionEuro(Table4).Thecost-benefitratioofthesubsi-disedprojectsrangedfrom0.5to10ctEuro/kWhandwasonaverage4.8ctEuro/kWh,wellbelowthemaximumpermissiblevalueof10ctEuro/kWh.Iftheabove-mentioned"cut"weretobecomerelevantduetocompetition,themaximumpermissiblevaluecouldbeadjusteddownwards,ifnecessary,andthusincreasetheintensityofcompetition.Theadmissibilitycriterionofaminimumpaybackperiodofthreeyearswithoutsubsidyhadprovenitself.Italsoseemedtobeavalidcriterionforapplicants.Manyofthecompaniesinterviewedcitedthereductionofthepaybackperiodasthemainmotivationfortakingadvantageofthefunding.Especiallyinlargecompanies,threeyearswasmentionedasthelimitthatprojectshavetomeetinordertobeimplemented.Thepaybackperiodofmostofthefundedprojectswasoverfiveyears,only10projectsindicatedperiodsof3.5to5years.Themedianpaybackperiodwas11.7yearswithoutfundingand8.4yearsforthepaybackoftotalcostsminusfund-ing.Givenausefullifeof10yearsforalmostallprojects,thesubsidywasrelevantfortheeconomicviabilityoftheprojects.TheabatementcostsforSTEPup!overitseconomiclifetimeamounttoaround54Euro/tonneCO2.Achievedsavingswere113GWhperyear,considerablybelowtheexpectedresult,duetocomparativelysmallprojectproposals(Table4).Table2Step-up!-totalcost,additionalinvestment,subsidiesandelectricitysavingsTotalcostAdditionalin-vestmentSubsidiesElectricitysav-ingsperyearElectricitysavingslifetime[millionEURO][MWh]Opentender133.261.521.583,064840,432Singleproject108.153.516.363,934645,882Collectiveproject25.18.05.119,130194,559ClosedtenderSingleproject35.120.47.330,167301,665Total168.381.928.8113,2311,142,097Note:TheAdditionalInvestmentisthepartoftheTotalCostwhichexceedsthecostofthestandardtechnology.Thesubsidyshouldreducethoseadditionalcostsbutnotexceed30%ofthem.Source:(Heinrichetal.2019)36Pilotprogramme"Electricitysavingsthroughcompetitivetendering:Exploitingelectric-ityefficiencypotentials"(STEPup!)–SWOT-AnalysisStrength–experiencefromprogrammeWeakness–experiencefromprogrammeTechnology/actor/sectoropennesswasful-filled.Cost-benefitvalueprovenasaguidingpa-rameterforcompetition(approx.3-5ct/kWh,i.e.farbelowlimitof10ct/kWh.Avoidanceofwindfallprofitsduetospeci-fiedminimumpaybackperiod.Pilotprogrammestimulatedcreativityamongthegrantrecipients.Lownumberofapplicationssubmitted:(fixedfundswerenotexceeded).Selectionofprojectsforfundingaccord-ingtocost-benefitvaluecouldnotbetested.Substantialeffortrequiredinsubmittingapplicationsinconnectionwiththeun-certaintyoffundingapproval.SignificantdeviationfromtargetsforelectricityandCO2savings.Opportunities–perspectivesofprogrammeThreats–barriersandmarketshortcomingsCompetitivetendersforenergyefficiencyfitwelltothetrendofauctioningrenewa-bleenergycapacities.Tappingfurtherpotentialbyexpandingtoheat.Collectiveprojectsaresuitableforactivat-ingalargenumberofconsumersinashorttime(largevolumes).Limitationto30%fundingdoesnotrep-resentaddedvaluecomparedtootherfundingprogrammes373.4EnergyEfficiencyinIndustry3.4.1FactSheetonMeasuresforEnergyEfficiencyinIndustryIndustrialsectorbyend-usesandrelevanceforenergydemandinGermanyFinalenergydemandinthein-dustrysectorismainlydefinedbyenergyneededforprocessheatingandcooling14.Thein-dustrialsectoraccountsfor22%oftotalfinalenergyde-mandinGermany.Themainenergysourcesusedinthein-dustrysectorarenaturalgas,electricity,andcoal.Renewableenergysourcesusedinindustryisalmostonlybiomasswhichaccountsfor7%offinalenergydemand.Source:Owncompilationbasedon(BMWi2021c)DevelopmentofGHGemissionsandtargetpathGHGemissionsintheindustrysector15havebeenreducedby37%to178milliontonsCO2-eq.intheperiod1990to2020.TheClimateChangeActdefinespermissibleGHGemissionsof140milliontonsby2030withannualminimumreductionsteps.In2020,thetargetintheindustrysectorhasbeenex-ceeded,whichisalsoduetotheeconomicslowdownasanef-fectoftheCovid-19crisis.Source:Owncompilationbasedon(UBA2021b)14Notethatspaceheatingenergydemandofindustrialbuildingsisincludedinthebuildingsector.15AnotherdefinitionforthebuildingsectorisgivenbytheGermanClimateChangeAct.Accordingtothelaw,theindustrysec-toraccountsforalldirectGHGemissionsfromindustrysectorincludingthoseforspaceheating.GHGemissionsfromelectric-ityuseanddistrictheatingarenotaccountedintheindustrysector,though.38IndustrySector–EnergyPolicySWOT-AnalysisStrength–currentsetofpoliciesWeakness–policyimprovementAcomprehensivesetofpoliciescomprisingpricingcarbonpricingandtrading,subsidyschemes,cli-matenetworks,auditandmanagementschemes,aswellasinnovationinstruments:Federalfundingprogrammeforenergyandresourceefficiencyintheeconomy(Bun-desförderungfürEnergie-undRessource-neffizienzinderWirtschaft);newpro-gramme:Nov.2021EnergyEfficiencyandClimateProtectionNetworksenableexchangeofideasandex-periencesandleadtoenergysavingsAuditsandEnergyManagementSystemsEMSincreasetransparencyandincreaseimplementationofenergyefficiencymeasuresEnergytaxationandexemptionsincentivizeenergyefficiencyEUEmissionTradingSchemeGrantprogramme‘DecarbonisinginIndus-try’advancesinvestmentsinlow-carbontechnologiesbyinvestmentgrantsPilotprogrammeforclimateprotectioncontracts(carboncontractsfordifference)securesinvestmentsinbreakthroughlow-carbontechnologieswithhigheroperatingcostbyguaranteeingthecontractpriceonavoidedCO2LowcarbonpricesuptorecenttimeStrongfocusondecarbonisationmayleadtoneglectenergyefficiency(hydro-geneconomywithlowefficiencies)Lackindedicatedimplementationofrec-ommendedmeasuresunderenergyau-ditsUntappedpotentialsofusingindustrialwasteheatindistrictheatingOpportunities–newpoliciesandpolicyoptionsThreats–barriersandmarketshortcomingsSupportfromtheEUInnovationFundbasedontheEUEmissionTradingschemeOngoingrevisionofEnergyandEnviron-mentalStateAidGuidelinesatEUlevelwhichhelpMemberStatesenableMemberStatestosupportprojectsforenvironmen-talprotectionCarbonBorderTaxAdjustmentCBAMCapitalintensiveassetswithlonglife-timesRadicalchangesrequired-incrementalimprovementsremainimportantbutarenotsufficientRiskofstrandedassets,carbonlock-inorinvestmentwithholding393.4.2CaseStudiesonPoliciesforEnergyEfficiencyinIndustryEnergyAuditsandEnergyManagementSystemsObjectivesoftheprogrammeEnergyauditsareanimportantandeffectiveinstrumentforraisingawarenessintherespectiveenterpriseforefficiencymeasures.AuditsinGermanyincreasedtheimportancethatcompaniesattributetoenergyefficiency(Maietal.2017).Also,theintroductionofenergymanagementsystems(EMS)isseenasanimportantsteptowardsmoreenergyefficiencybyiden-tifyingenergyefficiencymeasuresandovercomingimplementationbarriers(Hirzel,Sontag,andRohde2011).However,theintroductionalonedoesnotsayanythingabouttherealisedimpactonenergyconsumption.CompanieswithanEMSstateasimportantconsequencesthedefinitionofenergyreductiontargetsandofresponsibilitiesfortheimplementationaswellastheachievementofcontinuousimprovementswithrespecttoenergy(Maietal.2017).AccordingtoDINEN16247,anenergyauditis“asystematicinspectionandanalysisoftheenergyinputandenergyconsump-tionofaninstallation,abuilding,asystemoranorganisationwiththeaimtoidentifyenergyflowsandpotentialenergyeffi-ciencyimprovementsandreportonthem”(BAFA2020).Theenergyauditorevaluatesenergyefficiencymeasuresandtherebyenablescompaniestoidentifywheretheycanpotentiallyandprofitablysaveenergy.However,theauditdoesnotrequirethecompaniestosubsequentlyactupontheidentifiedmeasures.Anenergymanagementsystemestablishesasystematicstructureandresponsibilitiestoimproveenergyefficiencywithinanenterprise.Itfurtherestablishestargetsforenergyconsumptionand/orefficiency.Progresstowardsthetargetsismeasuredwithspecificindicators.ThefoundationofanEMSisregularmeasurementandanalysisofenergycarriersandenergyflows.Basedonthedata,theauditoridentifiespotentialsforenergyefficiencyimprovements.Thesecanbeeithermeasuresorchangestoprocessesorbehaviour.Thepotentialsareevaluatedeconomically.TheInternationalStandardforenergymanagementsystemsisDINISO50001.TheEco-ManagementandAuditScheme(EMAS)(EuropeanCommission2009)isprimaryanenvironmentalmanagementsystem.However,itcoversenergyuseasonecriticalaspectforenvironmentalmanagement.CompaniesthatalreadyapplyEMAShavetorealizeonlysmalladaptationstoalsocomplywithISO50001(UBA2021c).Alsoviceversa,anenergymanagementsystemaccordingtoISO50001canbethefirststepandleadeventuallytotheimplementationofabroaderenvironmentalmanagementsystem.DesignoftheprogrammeTheEnergyEfficiencyDirective(Article8)makesenergyauditsmandatoryforlargecompanies.Germanytransposedthisre-quirementintonationallawwiththelawonenergyservicesandotherenergymeasures(EDL-G2021).TheauditobligationappliestocompaniesthatarenotSMEs16unlesstheyalreadyhaveanenergyorenvironmentalmanagementsystem.Theaudithastoberepeatedeveryfouryears,theinitialauditwasduebyDecember5,2015.Companiesthatfailtocarryoutandsubmitenergyauditcorrectlyandcompletelymaybefinedwithupto50,000Euro.CompaniesthathaveanEMSdonothavetocarryoutanaudit.Germanyintroducedathresholdforminimumenergyconsumptionfortheauditobligationtobeeffectivetomaintainasen-siblecost-benefitratio.Companieswithanannualconsumptionoflessthan500000kWh/aareexempt.Theyonlyhavetosubmitannualenergyconsumptionandenergycostbothdifferentiatedbyenergycarrier.TherearefurthermoretwofinancialincentivesforenterprisestointroduceEMSorenergyaudit:1.Thetaxpeakcompensationscheme17enablesasubstantialrefundonenergyandelectricitytaxesforcompaniesfromthemanufacturingsector.Arequirementfortheapplicationistheimplementationofanenergyorenvironmentalmanagementsystem.Smallandmediumenterprisescanqualifywithanenergyauditoranalternativeenergyman-agementsystemaccordingtotheregulationontaxpeakcompensation(SpaEfV2013)18.16SMEsarecompanieswithupto250employees,anannualturnoverofupto50MioEuroandtotalassetsaccordingtothebalancesheetofnomorethan43MioEuroaccordingtothedefinitionoftheEuropeanCommissionABl.Nr.L124p.36(Euro-peanCommission2003).17German:“Spitzenausgleich”18Thealternativesystemisfurtherspecifiedintheregulationinconnectionwiththerefundofenergyandelectricitytaxinspecialcases(Spitzenausgleichseffizienzsystemverordnung-SpaEfV).f402.Thespecialcompensationmechanismwithintherenewableenergylaw(German:“BesondereAusgleichsregelung(BesAR)”)whichentitlesqualifiedenergyintensiveenterprisestopayonlyareducedrenewableenergylevy.Themechanismalsorequiresprivilegedenterprisestoimplementanenergyorenvironmentalmanagementsystem.Companieswithupto5GWh/aelectricityconsumptioncaninsteadcarryoutanenergyauditoranalternativeenergymanagementsystem.Bothschemesreduceenergycostfortheenterprise,andtherequirementforanauditorEMSaimstomaintainorevenstrengthenincentivestoincreaseenergyefficiencydespitereducedeffectiveenergyprices.Financialsupportfortherealisationofanauditisavailableforsmallandmediumcompaniesthatarenotrequiredtocarryoutanaudit.Theycanreceiveupto80%oftheauditcost.EnterprisesthatreceiveareducedrenewableenergylevyundertheBesARarenoteligible.Similarly,enterprisesthatbenefitfromthetaxrefundonenergyorelectricitytaxunderthepeakcom-pensationschemecanonlyinexceptionalcasesapplyforfunding.Figure4:OverviewoflegalobligationsforEMSandenergyauditsinGermanySource:OwnillustrationbasedonMaietal.2017ResultsoftheprogrammeTheinternationallydominantenergymanagementsystemisthecertificationaccordingtoISO50001.Worldwide,19731validcertificatesfor45092sitesexistaccordingtotheISOSurvey2020.Withonethird,themajorshareofcertificatesisheldbyGermancompanies.ThedatashowsapeakincertificatesforGermanyintheyears2016and2017withasubsequentdecline.Thestrongincreaseintheyears2014and2015islikelyinfluencedbytherequirementofanEMSforreductionsintaxesandlevies,asdescribedabove,thathadacut-offdateattheendof2015.Thecontinuedincreasein2016mightthenbedrivenbytheEEDobligation.TheGermanEDL-Ghadanintroductoryphaseuntil2016.China,in2020,hadashareofnearlyonefifthofworldwidecertificateswithstrongannualincreasessince2015.41Figure5WorldwideevolutionofEMS(accordingISO50001)Source:ownillustrationbasedondatafrom:ISOSurvey2020Inanevaluation,thesavingsinfinalenergyresultingfromimplementedandplannedmeasuresinconsequenceofanenergyauditorenergymanagementsystemwereestimatedat3.4%oftheirtotalenergyconsumption.Thiswasnotmuchlessthanthereportedpotentialsof3.9%(Maietal.2017).Anestimationofsavingsfordifferentsectorsfindsapotentialaveragere-ductionof2.9%,ifallimplementedandplannedmeasureswereconsidered.Thepotentialsavingsdivergebetweensectorsfromroughly0.5%to6.5%.Thesepotentialscouldbetappedwithinvestmentswithinthreetofiveyears.Thisimpliesthatplannedmeasureshaveapotentialofabout1%savingsperyear(Maietal.2017)Aftertheintroductionoftheauditobligationin2015,quiteanumberofcompaniesrushedtogetanauditandpaidmoreat-tentiontolowcostthantoquality.Therewerealsoproblemswiththecapacityofqualifiedauditorstodotheauditsintimeandtherewerealsoproblemswiththequalityofaudits(Maietal.2017).Inconsequence,Germanyadjustedtherulesforcom-pliancewiththereviewoftheEDL-Gin2019:Companiesarenowrequiredtofillinanonlineauditstatement.Inthisstate-ment,severaldatafromtheenergyaudithavetobesubmittedsuchasenergyconsumption,energycost,identifiedenergyefficiencymeasuresandcostfortheauditor.Thisenablestheresponsiblegovernmententitytoperformcertainchecksontheauditsautomatically.Additionally,BAFAcontinuestoconductrandomchecksofthesubmittedauditreports.This“threatofscrutiny”setsanincentiveforcompaniestosubmithighqualityreports.Qualityofauditorsisanimportantfactorforhighqualityreportsaswellassolidinformationonpotentialenergyefficiencyinvestments.Onlythen,theauditisofrealbenefittothecompany,itsusefulnessbecomesacceptedbythemanagementandimplementationofidentifiedenergyefficiencymeasuresismorelikely.InGermany,acertainstandardisachievedbytherequirementforauditorstoregisterwiththeBAFAandprovideevidencefortheirqualifications.Furthermore,theyarere-quiredtoparticipateregularlyintrainings.Additionally,inthefutureitmightbehelpfultointroduceamechanismforre-movingauditorsfromthelistincasetheyrepeatedlysubmitlowqualityreports.Inadditiontotheprequalificationofauditors,theBAFAprovidesaguidancedocumenttoassistauditorsinproducinggoodqualityenergyauditreports.19Effortfortheauditwasratedhighinparticularbysmallercompanies.Thisledtoanunfavourablecost-benefitratiountiltheminimumthresholdwasintroduced.19AvailableinGermanonly:https://www.bafa.de/SharedDocs/Downloads/DE/Energie/ea_leitfaden.html;jses-sionid=0C61F2201B7E119A5F4557C0DA179D58.2_cid378?nn=806412842EnergyAuditsandEnergyManagementSystems–SWOT-AnalysisStrength–experiencefromprogrammeWeakness–experiencefromprogrammeEMSandauditscontributeto:oidentificationofenergyefficiencypotentialsoreductionofimplementationbarriersoincreasedrealisationofenergyefficiencypotentialsEMSandauditsincreaseawarenessforenergyeffi-ciencythresholdvalueandsimplifiedrulesforsmallcompa-nieshelpmaintainacceptablebalanceofcostandef-fortLackindedicatedimplementationofrecommendedmeasuresunderenergyauditsOpportunities–perspectivesofprogrammeThreats–barriersandmarketshortcomingsRequirementtorealizeacertainshareofidentifiedpo-tentialsAuditorqualityisimportantImplementationCaseStudy–ReductioninCO2emissionsandfossilenergycon-sumptionattheCEMEXcementplantinRüdersdorf.CEMEXisoneofthebiggestcementproducerintheworld.InGermany,itoperatesnotablyaplantinRuedersdorfclosetoBerlin.Theclinkerproductionoperatesat5,500tclinkerperday.Thefuelmixusedcontainscoaldust,animalmeal,sewagesludge,fluff,gasfromaCirculatingFluidizedBedCombustion.Theplantiscertifiedforanenvironmentalmanagementsystem(EMASandISO14001).Since2011,theplanthasintroducedanenergymanagementsystemaccordingtoDINENISO50001.Inthelasttwodecadesthecompanyhasputalotofeffortsintotheuseofsecondaryinputfuelssuchassewagesludge,animalmealandotherfuels.Thesharehasreached70%onaverage(Figure17)whilethecompanyintendstoincreasethissharefurtherinfutureto80%andmore.TheuseofsecondaryfuelsreducesCO2emissions,aspartlytheyarecomposedofrenewablefuels.Overall,CO2emissionshavebeenreducedby17%overthetimeperiod2000-2019(andmuchmorecomparedto1990)(Figure18).Nevertheless,challengedtheprogressachievedinenergyefficiency,giventhatlesshomogeneousfuelswereusedwithpartlyhighmoistercontent.Theuseofanenergymanagementhelpedtocompensateforthead-ditionalenergyrequired.Mostrecentobjectives/measureslinkedtoenergyefficiencyinclude:•ImplementationoftheExpertOptimizer(EO).TheEOisacomputer-basedsystemforcontrolling,sta-bilizingandoptimizingindustrialprocesses.Duetoitsoptimizationtechnologiesthesoftwarehelpstomakethebestoperationaldecisionsaccuratelyandconsistentlyatalltimes.EOprovidesadvancedpro-cesstechniques,includinglinearandnon-linearmodelpredictivecontrol,fuzzylogicandneuralnet-works.•Anaverageannualimprovementof0.5kWh/tcementwhilekeepingstructuralpropertiesofthecement•Furnaceefficiency(operationalefficiency)>90%onannualbasis:achievedwithapermanentmonitor-ingandevaluationofthefurnaceefficiencywiththeenergymanagementsystemSources:EnvironmentalReportsCEMEXupto2019;ExpertOptimizerforcement,seehttps://new.abb.com/ce-ment/cement/systems-and-solutions/advanced-process-control/abb-ability-expert-optimizer-cement43ImplementationCaseStudy–ReductioninCO2emissionsandfossilenergycon-sumptionattheCEMEXcementplantinRüdersdorf(continued)Figure6:MassshareofSecondaryFuelsintheCEMEXcementplantinRuedersdorf/Berlin.Figure7CO2emissionsintheCEMEXcementplantinRuedersdorf/Berlin.Sources:EnvironmentalReportsCEMEXupto2019(https://www.cemex.de/ueber_cemex/nachhaltigkeit/umweltschutz)44ImplementationCaseStudy–UtilisingindustrialexcessheatfrompapermillfordistrictheatingattheStoraEnsoMaxau(SEM)papermillPartoftheindustrialprocesswasteheatfromtheStoraEnsoMaxau(SEM)papermillontheRhinewillinfuturebeusedforthedistrictheatingsupplyinthecityofKarlsruhe(StadtwerkeKarlsruhe2020)(1).TheMaxauMillofStoraEnsoinsouthwestGermanyproducessupercalenderedpaperanddeinkedpulpprimarilyfromrecoveredpaperwithanannualcapacityis530000tonnes(paper)and270000tones(StoraEnso2021)(2).Karlsruhe'sdistrictheatingnetworkisoneofthelargestinGermanywithover600MWthheatsupplycapacityandanetworklengthofover180kilometres(VfW2021)(3).Morethan90%ofKarlsruhe'sdistrictheatingisalreadysuppliedbyindustrialexcessheatandfromcombinedheatandpower(CHP)plants.ThemainsuppliersarethemineraloilrefineryOberrhein(MiRO)andtheRhineharboursteampowerplantofEnergieBaden-WürttembergAG.Therefineryandexcesswastefromindustrialprocessthatwouldotherwisebelostforthedistrictheatingsupply.Photosource:StoraEnsoMaxau(SEM)Theprojecttointegrateexcessheatfromthepaperasanotherfeed-insourcestartedinbeginningof2020.Tosupplythepapermillwithprocesssteamandelectricalenergy,theSEMhasafluidisedbedboiler,whichrunsonmorethan80percentbiomass,withassociatedsteamturbinesinoperation.Theturbinesareusedincombinedheatandpower(CHP)andcondensingoperation.Thecurrentconstructionofanew,highlyefficientturbinewillresultinfurtherCHPpotentialinthefuture.ThetwopartnersSEMandthelocalutilitywanttomakethisavailablefortheheatsupplyinthefuture.Thiswillleadtoanavoidanceof10,000tonnesofCO2emissionsperyear(StadtwerkeKarlsruhe2020).SEM'snewsteamturbineandnewheatingcondenser,around40tonnesofsteamperhourcanbeusedinCHPoperationtosupplyheat.Thisistobeconductedviaanew,approximatelytwo-kilometre-longconnectingpipelinefromthepapermilltotheexistingdistrictheatingpipeline.Sources:(1)StadtwerkeKarlsruhe(2020).ProzessabwärmederPapierfabrikwirdzuFernwärme.https://www.stadt-werke-karlsruhe.de/de/presse/meldungen/2020/20200123.php(2)StoraEnso(2021).MaxauMill.https://www.storaenso.com/en/about-stora-enso/stora-enso-loca-tions/maxau-mill(3)VfEW(2021).KarlsruheheiztmitFernwärmeausAbwärmeundKWK.https://www.vfew-bw.de/maga-zin/waerme/karlsruhe-heizt-mit-fernwaerme-aus-abwaerme-und-kwk/45ImplementationCaseStudy–IntelligentEnergyManagementattheCeramicsproducerAdolfGottfriedTonwerkeGmbHThefamily-ownedSMEcompanyAdolfGottfriedTonwerkeGmbHextractsandrefinesclayandotherrawmaterialsfortheceramicandclayprocessingindustriesinGroßheirath,Bavaria.thecompanyisrunninganEnergyManagementSystemEMSaccordingtoISO50001since2014.ItwasactivelyinvolvedintheEn-ergyEfficiencyNetworkFranconia.Fortheachievement,thecompanyreceivedthedenaenergyefficiencyaward2019,togetherwithOrcan.Followingthesuccessfulimplementationofinitialenergyefficiencymeasures,thecompanypursuedthegoalofextendingtheuseofwasteheat,whichhadalreadybeenimplementedinproduction,tothefiringprocessesaswell.Thefocuswasontworotarykilnsforfiringtheclay.Withasfewchangesaspossibletotheexistingprocess,thehighwastegastemperaturesgeneratedthereweretobemadeusable.AsuitablesolutionwasofferedbythecooperationwithOrcanEnergyAG.Thecompany,whichspecializesinORC(OrganicRankineCycle)plants,tookovertheplanningandimplementationoftheORCmodule.Duetoitsflexiblebehavior,themodulecanreacttofluctuatingheatquantitieswithinsecondsandachieveshighefficiencyintheconversionofheattoelectricityevenatpartialload.Inaddition,theORCmoduleischar-acterizedbyasecondhigh-temperaturecircuitandcanthusalsogeneratehighertemperaturesinthewasteheatstream.AtechnicalchallengeintheprojectwastheintegrationoftheORCplantintotheexistingrotarykilnsystem.Thus,anadditionalexhaustgasheatexchangerhadtobeinstalledontheexhaustgasstreamoffurnaces1and2.Ahighdustcontentintheexhaustgascomplicatedthesituation.Thesolutionwasfinallyprovidedbyanexhaustgasheatexchangerspeciallydesignedforthisapplication.ItsoperationenabledtheORCsolutionandensuredareductionintheloadfactoroftheintakeairfan,savinganadditional15kWofenergy.Thesavingsachievedaredemonstratedbyanintegratedcontrolsystemthatcontinuouslymeasurestheelectricalpowergenerated.Energyefficiencymeasures:•ORC(OrganicRankineCycle)plantforconversionofwasteheattoelectricity.•Installationofaspecialheatexchangerforwastegaswithhighdustcontent•Dust/ashseparationandpipingconstruction.Savingsachievements:•Reductioninelectricityconsumption:304,000kWh/yr.•CO2reduction:181t/year•Reductionofover50,000eurosinelectricitycostsforthecompanyConcerningtheEnergyEfficiencyNetworkFranconia:Togetherwithatotalof14industrialcustomers,theenergysupplycompanyE.ONjoinedforceswithan-otherelectricityproviderBayernwerktolaunchthelearningenergyefficiencynetwork"Frankenvernetztsich"(Franconiainterlinks)inmid-2016.Withreferencetothebaseyear2015,thecompanieswantedtojointlyimprovetheirenergyefficiencyby5%andreducetheirCO2emissionsby6%.Afterthreeyears,thequiteambitiousgoalswereevenexceeded.Intotal,113energyefficiencymeasureswereimplementedbythecompanies,savingaround13,700MWhofenergyand5,400tofCO2annually.Inthethreeyearsofnetworkoperation,thecompaniesimprovedtheirenergyefficiencybyatotalof5.5%.CO2emissionswerereducedby7.1%.TheNetworkcontinuedin2020("FrankenvernetztsichII"),byfixinganotherof7000MWhforthetimeperiod2019-2022.Sources:dena2019andInitiativeEnergyEfficiencyandClimateNetworks2021.ImplementationCaseStudy–IntelligentEnergyManagementFrankfurtAirportFraportdecidedinthe1990iestointroduceanexternallyvalidatedenvironmentalmanagementsystem.FrankfurtairportwasfirstcertifiedaccordingtoEMASin1999.Itcontinuouslyfollowedupandimproved46itsenvironmentalandenergymanagement.Furthermore,FrankfurtairportiscertifiedaccordingtotheAirportCarbonAccreditationthataimstoleadEuropeanAirportstocarbon-freeoperation.ForFrankfurt,Fraportaimstoreduceemissionsto80000t/CO2/ain2030.Thisisareductionof65%comparedto1990.By2050,Frankfurtairportshalloperatecarbonfree(i.e.withoutcompensationrequired).Figure8:HistoricalandplannedemissionsFrankfurtAirport.Source:Fraport2021.Author’stranslationAcriticaltooltoachievetheseambitiousgoalsistransparency.FraportcarriedoutadetailedreviewoftheenergyconservationpotentialsatFrankfurtAirportin2011/2012supportedbyOekoInstituteDarmstadt.Subsequently,theyintroducedadetailedcontrollingofenergyconsumptionandCO2-emissionsin2013andenergymanagementin2014.Dataisreportedmonthlyatthelevelofindividualprocesses,installationsorbuildings.ThisallowsFraporttoidentifypotentialstoincreaseenergyefficiencyandtoevaluatetheeffec-tivenessofmeasuresimplemented.Atthesametime,progresstowardsthegoalscanbecontinuouslytracked.Sinceitsintroductionin2013,thecontrollingsystemenabledsavingsof112000Mwh(orroughly16%(2019))mainlyelectricity,districtheatingandcoolingthroughtheimplementationofdiversetech-nicalandoperationalmeasures.Forfurthersavings,Fraportidentifiedfourkeylevers:Sources:Fraport2020a,Fraport2020b.47EnergyTaxesObjectivesoftheprogrammeInGermany,anecologicallymotivatedtaxreform,whichwasimplementedin1999,increasedtheenergytaxratesandnewlyintroducedelectricitytaxation.Taxesareatooltointernalisesocalledexternalities–inthecaseofenergyconsumption,thisreferstonegativeenvironmentalconsequencesofburningfossilfuelsi.a.CO2-emissions.Thetaxationofenergyuseincreasesthepriceofenergyandtherebysetseconomicincentivesforenergyconservationandrationaluseofenergy.Therebyoverallenergyconsumptionandtheassociatedemissionsshouldbereduced.Thetaxrevenuecanbeusedtofundothertopics.InGermany,revenuesfromtheecologicaltaxreformwereusedtosubsidisethepensionsystemforreducingtheemployershareofleviesonwages.Thiswasintendedtofostereconomicdevelopmentandstimulatethelabourmarket.Severalexemptionsthatreducetheeffectivetaxrateexistwiththeaimofa)avoidingundueburdensonindustryandcon-sumersorb)fosteringtheuseofrelativelyenvironmentallyfavourableenergycarriersortransportmodes.20DesignoftheprogrammeThelawsforenergytaxationandelectricitytaxationprescribedifferentiatedtaxratesbyenergycarrierandbyutilisation(Table5).Interaliarenewableenergyandcertainenergyintensiveprocesses(Table6)areexemptfromthetax.Reducedratesapplyforforestryandagriculture,publicrailways,liquidnaturalgas,naturalgasfortransportutilisation.Table3:Taxratesbeforeandafterecologicaltaxreform20Furtherinformation:https://www.zoll.de/DE/Fachthemen/Steuern/Verbrauchsteuern/Energie/energie_node.html48Table4Productionprocessesthatarecompletelyexemptfromenergyand/orelectricitytaxEnterprisesfromthemanufacturingsectorcanfurthermorebenefitfromthetaxpeakcompensationscheme21.Itaimsatpro-tectingtheinternationalcompetitivenessofGermanenergyintensiveproduction.Itreducesthetaxrateexceptforareason-ablebasecontribution.Therefundiscalculatedbasedonacomparisonoftheincreasedamountofenergyandelectricitytaxespaidduetotheecologictaxreformwiththereductionintheemployer’spaymentstothepensionsystem.90%oftheexceedingamountareeligibleforrefund.Thetaxrefundissubjecttothreeconditionsthatneedtobefulfilled:1.Theelectricitytaxpaidexceedsthebasicamountof1,000Eurorespectively750Euroforenergytax.2.ApplicantsarerequiredtointroduceandfollowuponanenergymanagementsystemaccordingtoDINENISO50001oranenvironmentalmanagementsystemaccordingtoEMAS.SMEscanalternativelycarryoutanenergyauditac-cordingtoDINEN16247-1orimplementanalternativeenergymanagementsystem.Theaimistolimittheadmin-istrativeburdenforsmallercompanies.3.Themanufacturingsectorasawholehastoreduceitsenergyintensitybyaspecifiedpercentage.Forrefundapplica-tionsintheyears2018to2022,thetargetvalueis1.35%annuallyfrom2016onwards(baseyears2016-2020).Previ-ously,thetargetvaluewas1.3%startingin2013.Conditions2.and3.addresstheissuethatreducedtaxes-whichleadtolowereffectiveenergycost(allelseequal)-carrytheriskofweakenedincentivestoincreaseenergyefficiency.TherequirementstointroduceanEMSandforthesectorasawholetoreduceitsenergyintensity,servetofosterenergyefficiencyinthemanufacturingsectordespitereducedenergyprices.Resultsoftheprogramme21German:“Spitzenausgleich”49Theecologicaltaxreformfulfilleditsgoalofreducingthecostonlabourbysupportingthepensionscheme(DIW2019).Witharevenueofroughly38billionEuro22annually,theenergytaxisanimportantcontributortopublicfinances.Theenviron-mentalimpact,however,israthermeagre.Energytaxonlycontributedtoasmalldegreetopriceincreasesbetween1999and2008(DIW2019).Onlylittleemissionreductionscanbeattributedtotheecologicaltaxreform.Theprojectionreport2021forGermanyattributessavingsof0.4TWhelectricityand1.5PJfuelintheindustrialsectortoenergyandelectricitytax(year:2020).Fortheservicessectors,savingsareestimatedat2.9TWhin2020(Prognosetal.2021).Thetaxesarecriticisedforbeinginconsistentacrossuses,sectorsandwithrespecttotheeffectivetaxratepertCO2eq.(DIW2019;FOES2016,2017).Furthermore,exemptionsandreductions,inparticularforindustry,aresetupforreview.Theyshouldbemorespecificallytargetedatthosecompaniesthatarethreatenedininternationalcompetitionandbebetteralignedwithclimatepolicygoals(ExpertenkommissionEnergiederZukunft2021).Thecouplingofthetaxpeakcompensationschemewithmeasurestofosterenergyefficiencyisseenpositively.Nonetheless,incentivesforimprovingenergyefficiencyshouldstillbestrengthened(FiFo,FraunhoferFIT,andZEW2019).Despitecriticism,taxationremainsanimportanttool.ExpertssuggestabettercoordinationofdifferentinstrumentssuchasCO2pricingandenergytaxationbothnationallyandintheEU.TheydemandareformtocreateaconsistentpricesignalonCO2(ExpertenkommissionEnergiederZukunft2021)EnergyTaxesandExemptionsinIndustry–SWOT-AnalysisStrength–experiencefromprogrammeWeakness–experiencefromprogrammeEstablishedinstrumentthathasledandstillleadstoenergyconservationRevenuecanbeusedtofurtherfosterclimateprotectionortosupportothergoalsTaxesarenotdesignedconsistentlywhichcausesdistortionswithinandamongheating,electricityandtransportTaxrateperCO2-contentvarieslargelyManyexemptions.Morespecificdesignre-quiredtoalignwithclimatetargetsandpro-videreductionsonlywherenecessaryEffectivetaxrateinrealtermsdecreasedovertimedeflatingtheincentivetoconserveen-ergyOpportunities–perspectivesofprogrammeThreats–barriersandmarketshortcomingsReductionofenergytaxandreplacementwithaCO2-basedinstrumentPricecorridorforCO2improvesincentivesincestableandincreasingpricelevelisbeneficialforinvestmentdecisionsPricebasedinstrumentsarenotsufficienttoovercomeallbarriersforenergyefficiencysuchase.g.informationalbarriersSeparatesupportforinfrastructure,futuretechnologiesoreducationofskilledpersonnelarerequired22https://www.zoll.de/DE/Fachthemen/Steuern/Verbrauchsteuern/Energie/energie_node.html503.5EnergyEfficiencyinTransport3.5.1FactSheetonMeasuresforEnergyEfficiencyinTransportTransportbyend-usesandrelevanceforenergydemandinGermanyEnergydemandoftransportcanbedefinedasenergyneededformainlymechanicalenergyintransport.Otheren-ergyusesspecifiedinthegraphonlyaccountforminorcontributions.Followingthisdefinition,thetransportsectoraccountsfor27%oftotalfinalenergydemandinGermany.Source:Owncompilationbasedon(BMWi2021c)DevelopmentofGHGemissionsandtargetpathGHGemissionsofthetransportsectorhavebeenre-ducedby11%to146MtCO2eqintheperiod1990to2020butwithanincreasingtrendfrom2015-2019.The2020sectortargetfor2020wasachieved,butonlyduetoCovidimpacts.TheClimateChangeActde-finespermissibleGHGemis-sionsof95milliontonsby2030withannualminimumreductionsteps.Therewith,thetransportsectorhasachievedthelowestreductionofGHGemissionsofallde-mandsectorssince1990.Source:Owncompilationbasedon(UBA2021b)51Transport–EnergyPolicySWOT-AnalysisStrength–currentsetofpoliciesWeakness–policyimprovementAcomprehensivesetoftransportpoliciescompris-ingstandardsforlightandheavyvehicles(Euro-pean-wideharmonised),taxationandpricingschemes,quotaforrenewablessharesintransportaswellasmodalshiftpolicies:EUCO2standardsforpassengercarsandlightcommercialvehiclesLNFVehicletaxdifferentiatedmorestronglyac-cordingtotheCO2-emissionsofcarsCO2pricingintheheatandtransportsec-torsEUCO2standardsforheavy-dutyvehiclesDevelopmentofrenewablefuelsandna-tionalimplementationREDII:AdjustmentofgreenhousegasquotaModalshiftpolicies(mostlyaturbanandregionallevel)CO2limitsbasedonaveragefleetemis-sionsConcessionsforheavyvehiclesviaaweightbonusNoCO2limitvaluesinreal-worldopera-tionontheroadNoeffectiveefficiencystandardsandconsumptioncapforelectriccarsMissingstrongpolicyformodalshiftincitiesandtheregionsinordertoin-creasetheofferOpportunities–newpoliciesandpolicyoptionsThreads–barriersandmarketshortcomingsFrom2021,mostoftheEUclimatelegisla-tionwillberevised,includingtheCO2standardsforpassengercarsZeroemissionlimitforcarsby2035inor-dertoachieveclimateneutralityby2050Increaseintheshareoflargesizecars(SUVs)Uncleartechnologyperspectivesforheavygoodstransport(batteryelectric,overheadlines,hydrogen)IncreasingdecouplingofCO2-andenergysavings523.5.2CaseStudiesonPoliciesforEnergyEfficiencyinTransportCO2StandardsforCarsandLightDutyVehiclesObjectivesoftheprogrammeTheregulationonCO2standardsforpassengercarsandvans(RegulationEU2019/631)isacentralinstrumentoftheEUforthetransformationofthetransportsector,andassuchalsoacentralinstrumentfortheGermanyenergytransformation.Itisintendedtoensurethatcarmanufacturersproduceeverlower-emissionandincreasinglyelectriccars.TheCO2standardsarefleetlimits,i.e.theyapplytotheaverageemissionsofamanufacturer'snewcarssoldwithinayear,nottotheindividualcar.Inthiscontext,purelyelectriccarsareincludedinthebalancewith0gCO2/km,whichcreatesanincentivefortheirproduction.In2015,thefirstmandatoryCO2fleetlimitof130gCO2/kmcameintoforce,whichmanufacturersachieved,butpartlybyma-nipulatinglaboratorytestprocedure.Between2016and2019,averageemissionsfromnewcarsroseagainasmanufacturerspushedsalesofeverlargerandheaviervehicleswithhighprofitmargins.Since2020,afleetlimitof95gCO2/kmapplies.Ifexceeded,penaltiesof95Europercarsoldwillbedueforeachgramabovethelimit.In2019,thelatestrevisionoftheCO2standardsstipulatedthatmanufacturersmustreducetheirfleetemissionsbyafurther15%by2025and37.5%by2030,com-paredtothebaseyear2021.AspartoftheFitfor55legislativepackage,theEuropeanCommissionproposedinJuly2021toreviseRegulation(EU)2019/631,bysettingmoreambitiousCO2emissiontargetsfornewcarsandvansfrom2030onward.DesignoftheprogrammeFortheperiod2020-2024,RegulationEU2019/631confirmedtheEUfleet-wideCO2emissiontargetssetunderthepreviousRegulationsEC443/2009andEU510/2011(95gCO2/kmforcarsand147gCO2/kmforvansrespectively)23.Startingintheyears2025and2030,RegulationEU2019/631setsstricterEUfleet-wideCO2emissiontargets,whicharedefinedasapercentagereductionfromthe2021startingpoints:-15%forbothcars/vansfrom2025onwards;-37.5%/-31%reductionasfrom2030onwardsforcarsandvansrespectively.IntheFit-for-55-PackagefromJuly2021,theEuropeanCommissionproposedtoup-datethetargetsfor2030comparedto2021to-55%/-50%forcars/vansrespectively.From2035onwards,carsandvansshouldreachzeroemissions.Otherwise,climateneutralitywillnotbeachievableby2050.AlltargetsarebasedonEUfleet-widetargetsandtakeintoaccounttheaveragemassofnewvehiclesregisteredinagivenyearforeachmanufacturer,usingalimitvaluecurve.Thismeansthatmanufacturersofheaviercarsareallowedhigheraverageemissionsthanmanufacturersoflightercars.ThecurveissetinsuchawaythatthetargetsfortheEUfleet-wideaverageemissionsareachieved.RegulationEU2019/631alsointroducedacomplexincentivemechanismforzero-andlow-emissionvehicles(ZLEV)24.TheCommissionproposedin2021toremovethisincentivefrom2030onwards,asthosecarsthenwillbecomethestandards.The2021proposalofcarstandardsisflankedbyaproposedAlternativeFuelsInfrastructureRegulation(EuropeanCommission2021j)whichshallensuretheavailabilityoftherechargingandrefuellinginfrastructureforthezero-emissionvehiclesthatthestrength-enedCO2standardswillbringtothemarket.InGermany,thecarstandardsareflankedbytwootherinstruments:•Asof1January2021,ahighervehicletaxappliestocarswithhighfuelconsumptionthatareregisteredforthefirsttime(BMF2020).Thisparticularlyaffectstheso-calledSportsUtilityVehiclesandsportscarswithemissionsofover116gCO2/km.Thisisintendedtocreateanincentivetobuymoreeconomicalcars.•Alsoin2021,theCO₂pricingintransportcameintoforce.Initially,thepriceforonetonneofcarbondioxideissetat25euros,whichincreasedthepriceofalitreofSuperE10byanaverageof7.7Eurocentsandalitreofdieselby7.6Eurocentsover.TheCO₂pricewillberaisedannuallyandisexpectedtoreach55eurosin2025.Then,thelitreofpetrolwillcost15Eurocentsandthelitreofdiesel17Eurocentsmorethanattheendof2020.23ThesetargetlevelsrefertotheNEDC(NewEuropeanDrivingCycle)emissiontestprocedure(datingfrom1997).From2021onwards,theemissiontargetsformanufacturersarebasedonthenewWLTP(WorldwideharmonisedLightVehiclesTestPro-cedure)emissiontestprocedure(datingfrom2017).24https://ec.europa.eu/clima/eu-action/transport-emissions/road-transport-reducing-co2-emissions-vehicles/co2-emission-performance-standards-cars-and-vans_de53ResultsoftheprogrammeAsaresultoftheCO2standards,CO2-emissionshavebeendecreasingin2020to136gCO2/kminGermany25(EEA2021).Thejumpin2019isduetotheintroductionoftheWLTPmeasuringcycle(Figure20).ThiscomparestoaEuropeanlevelinaverageCO2emissionfromnewcarsin2020of130.8gCO2/km(averageWLTPemissions)or107.8gCO2/km(averageNEDCemissions).Germany'semissionsexceedtheEuropeanaverageduetothelargersizeofcars(1.53taveragecarweightin2020comparedto1.46tEuropeanaverage).Figure9AverageCO2emissionsofnewlyregisteredpassengercarsinGermanySource:(KBA2021)26TheexpectedimpactsoftheCO2standardsandflankingmeasures,includingRegulationEU2019/631ispresentedinFigure21.ThefigureshowsalsotheimpactofthetwomeasurementcyclesNEDCandWLTP,aswellasthecomparisonwithrealCO2emissions.ThefiguredoesnotyetincludetheproposedtighteningoftheCO2standardsatEUlevelintheframeoftheFit-for-55Packageupto2030,andinparticulartheintendedreductionofemissionstozeroby2035.25AverageWLTPemissionsrepresenting113.6CO2eq/kmasaverageNEDCemissions26Inthe2018reportingyear,asinthepast,theCO2valuespublishedintheofficialstatisticsonnewregistrationsarebasedonthevaluesdeterminedinthecourseofCO2andfuelconsumptionmeasurementsinaccordancewiththeNewEuropeanDriv-ingCycle(NEDC).However,withthereplacementoftheNEDCbytheWorldwideharmonisedLight-dutyvehiclesTestProce-dure(WLTP),whichhasbeenapplicablefornewlyapprovedvehicletypessince1September2017andforallnewlyregisteredvehiclessinceSeptember2018,comparableNEDCCO2valueswillbecalculatedfortheseWLTPCO2valuesuntiltheendof2020usingacorrelationmethoddefinedbytheEUCommission.Theunderlyingdatabasisforthereportingyear2018thusincludesbothmeasuredandcorrelatedCO2values.From01/01/2019onwards,however,onlyCO2valuesbasedonWLTParereportedintheofficialstatistics.54Figure10:ExpectedCO2emissionsofnewlyregisteredpassengercarsinGermanySource:(Bundesregierung2021)Overall,theimpactofthemeasureappearsasquitelargeintransport(Table7).Table5:ExpectedreductioninemissionsfromCO2StandardsforCarsandLightDutyVehiclesEffectofthemitigationmeasure(milliontCO2eq)2025203020352040UpdatingEUCO2standardsforpassengercarsandlightcommercialvehi-cles(excludingyetadditionalimpactsfromtheFit-for-55Package)0.984.939.6210.37Source:(Bundesregierung2021)CO2StandardsforCarsandLightDutyVehicles–SWOT-AnalysisStrength–experiencefromprogrammeWeakness–experiencefromprogrammeRegulardecreaseinCO2-emissionstand-ardsupto2030Measurementcycleswhichbringthevaluesclosertoreal-worldvalues(WLTPinsteadofNEDCmeasurementcycle)CO2limitsbasedonaveragefleetemis-sions(allowinglargercarsbeingcompen-satedbysmallercars)ZLEVmechanismthatmitigatesCO2lim-itsConcessionstoheavyvehiclesviaaweightbonusCreditingofalternativefuelstoCO2limitsNoCO2limitvaluesinreal-worldopera-tionontheroadNoeffectiveefficiencystandardsandconsumptioncapforelectriccars(i.e.car55weightcanbecompensatedbyCO2-neu-tralfuel)Opportunities–perspectivesofprogrammeThreats–barriersandmarketshortcomingsTheproposedrevisionundertheEuropeanFit-for-55packageprovidespressuretoachievezeroemissionsfromcarsby2035.TheflankingofCO2standardswithrisingcartaxes(annualcartax)andfueltaxes,takingintoaccountCO2emissionswillfur-therexertpressuretoremovefossilfuelsfromthecarmarkets.Increaseintheshareoflargesizecars(SUVs)maynotallowenergyefficiencytargetsintransporttobereached.Vehicletax:strongerweightingoftheCO2componentforpassengercarsObjectivesoftheprogrammeTheSeventhActAmendingtheMotorVehicleTaxActof16October2020/SiebtesGesetzzurÄnderungdesKraftfahrzeug-steuergesetzesvom16.Oktober2020(FederalLawGazetteIp.2184/BGBl.IS.2184)providesfortheCO2componentforpas-sengercarsregisteredforthefirsttimeinGermanytobeweightedmoreclearlyfrom2021bymeansofprogressivelygraduatedtaxratesinordertoprovideastrongerincentiveforlower-emissionvehicles.DesignoftheprogrammeTheCO2taxratescarsareof2to4Euro/gCO2perkilometre,whichwillapplyintherangeofmorethan95to195gCO2/km,ineachcasewithinfiveequalstagesandonestagethatisopentothetop.Theindividualstages(perg/kminrelationtotheCO2testvalues)arestructuredasfollows:over95upto115g/km:€2.00,over115upto135g/km:2,20€,over135upto155g/km:2,50€,over155upto175g/km:2,90€,over175upto195g/km:3,40€,over195g/km:€4.00.TheCO2valuesoftheWLTPemissiontestprocedureareused,whichmorerealisticallydepictstheexhaustandconsumptionvalues.ResultsoftheprogrammeUptonow,theCO2taxrateofthemotorvehicletaxforpassengercarswithcombustionengineswas2Euro/gCO2andkmabove95g/km.Ahighermotorvehicletaxthanbeforeresultsfrom1January2021forpassengercarsregisteredforthefirsttimewithCO2testvaluesfrom116gCO2/kmupwards.AftertheeffectsofthetaxassessmentbasedontheCO2valuesoftheWLTPalreadyintroducedin2018,thenewprogressiveCO2tariffwillfurtherincreasetheaverageannualtaxforfirst-registeredpassengercarswithcombustionenginesfrom2021onwards;underthetheoreticalassumptionofaconstantcompositionoffirstregistrations,upto€230(+60%overall).Thevehicletaxaffectsthecostsofcarownershipandthusindirectlythechoiceofpropulsion.Overall,theimpactofthemeasuresappearsascomparativelysmallandisdecreasingovertime,becauseoftheinteractionwithothermeasures(Table8).56Table6:ExpectedreductioninemissionsfromastrongerweightingoftheCO2componentofthemotorvehicletaxasof2021Effectofthemitigationmeasure(milliontCO2eq)2025203020352040StrongerweightingoftheCO2componentofthemotorvehicletaxasof20210.290.200.080.09Source:(Bundesregierung2021)Nevertheless,theCO2componentinthecartaxappearsasaflankinginstrumenttocarstandards(seepreviouscasestudy)whichofferspotentialinthecomingyearstoacceleratethephase-outoffossilfuelsforcarsandlightdutyvehicles.Vehicletax:strongerweightingoftheCO2componentforpassengercars–SWOT-AnalysisStrength–experiencefromprogrammeWeakness–experiencefromprogrammeFirsttimeintroductionofastronglydiffer-entiatedvehicletaxforcarsFlankinginstrumentforothermeasuresintransportsuchasCO2-standardsIncreaseforthecarownerquiteimportantinrelativeterms(+60%)ComparativelysmalladditiontothecostofacarCuttingoftaxincreasebeyond195gCO2/kmLinearincreasewithspecificCO2emis-sionsNoenergyefficiencyincentiveforelectriccarsOpportunities–perspectivesofprogrammeThreats–barriersandmarketshortcomingsTheCO2taxcanbefurtherdifferentiatedincomingyearstoacceleratethetransitionpro-cessThevehicletaxmaybefurtherdifferentiatedtoincludeanenergycomponentTheincreasingpenetrationoflarge-sizeelec-tricandotherlow-carbontechnologiesintransportcouldincreaseenergyconsump-tion,ifthetaxisnotdesignedaccordingly3.6BestPracticeMonitoringandImplementationMonitoringReportoftheGermanTransitionoftheEnergySystemTheGermanyTransitionoftheEnergySystemismonitoredonanannualbasis.TheFederalMinistryforEconomicAffairsandEnergyhasbeenappointedleadministryforthemonitoringprocessfortheenergytransition.TheMonitoringReportforeachyearisapprovedbytheFederalCabinetandtransmittedtothefirstandsecondchamberoftheParliament(BundestagandBundesrat).Alsoinvolvedintheprocessisanindependentcommissionoffourrenownedenergyexperts,whoprovideadviceforthedraftingprocessandascientificopinionontheMonitoringReport.TheirscientificopinionispublishedalongsidetheFederalGovernment’sreport.Thedetailedanalysesaretranslatedintosimple"trafficlight"assessments(Figure22).Everythreeyears,theFederalGovernmentpublishesaProgressReportontheenergytransition.TheProgressReportprovidesforawideoverviewoftheenergytransition,thusallowingfordeeperanalysisoveralongerperiod,whichmakesitpossiblefortrendstobediscerned.Thereportalsolooksatwhetherthecountryisontracktoattainthegoalsandtargetssetoutinthe57EnergyConcept,andatwhatadditionalmeasuresmightneedtobetaken.TheannualmonitoringreportisincorporatedintotheProgressReport.Thelatestpublicationsarethe8thMonitoringReportanditsexpertopinion,andthesecondProgressReport"EnergyoftheFuture"(BMWi2021a).Theexpertopinionisparticularlyscepticabouttheenergyefficiencycomponentofthetransformationoftheenergysystem,whileitismoreconfidentonrenewables.Figure11MainMonitoringReportfortheEnergyTransitioninGermanyMonitoringReportIndependentExpertEvaluationEnergyEfficiencyReductioninPrimaryEnergyDemand(LeadIndicator)FinalEnergyProductivityReductionofHeatDemandinBuildingsReductionofFinalEnergyDemandinTransportLegend:TargetachievementlikelynotsureunlikelySource:(BMWi2021a)ODYSSEE-MUREProject:AnalysingEnergyEfficiencyTrendsandPoliciesAsecondimportantmonitoringapproachforenergyefficiencyhasbeenrealisedintheODYSSEE-MUREproject(www.odys-see-mure.eu),whichcoversallEuropeancountries(includingGermany)andenergy-usesthroughalargesetofenergyindi-catorsandenergyefficiencypolicies.ThissetofmonitoringinstrumentsprovidesanumberofanalysistoolssuchastheDe-compositionTool(Figure23),whilehelpstounderstandandinterpretchangesinenergydemandinspecificsectorsorforspecificenergyusesonanannualbasis.58Figure12DecompositionofcontributionstothechangeinresidentialenergyuseinGermanyNote:ThevariationofHousehold(HH)FinalEnergyDemand(FED)2000-2019isexplainedby:Climaticdifferencebetweenthesetwodates(“climate”);Changeinthenumberofoccupieddwelling(“moredwellings”);Changeinapplianceownership(“moreappliancesperdwelling:electricappliancesandcentralheating”);Changeinaveragefloorareaperdwelling(“largerhomes”);(Technical)Energysavings("grosssavingscorrectedfornegativesavingsduetoinefficientbehaviour");Othereffects(mainlychangeinheatingbehaviours).Climaticcorrectionsaremadeonthebasisofnationaldegreedaysdata(EurostatfortheEU).Source:(ODYSSEE-MURE2021b)ODYSSEE-MUREProject:AnalysingEnergyEfficiencyTrendsandPoliciesAnotherimportanttoolistheEuropeanEnergyEfficiencyScoreboardwhichrankscountriesaccordingtotheirsuccessinenergyefficiencylevels,trendsandpolicies(Figure24).Figure13EuropeanEnergyEfficiency(EE)Scoreboard2021andRanking59Source:(ODYSSEE-MURE2021b)604.Part3:LocalLevelandAcceptance4.1Local(Municipality/City)LevelPolicyMakinganditsLinktoNationalandEuropeanLevelMunicipalitiesandlocalgovernmentsareanimportantactorforimplementationintegratedenergyefficiencyandclimateprotectionstrategies.WhereasoveralltargetsettingandeconomicandregulatoryframeworksarepredominatelydefinedonEuropeanandnationallevel,energyefficiencypolicyonlocallevelcomprisesplanninginstrumentsandimplementationcon-ceptswithdetailedpotentialandscenarioanalysisformajoreconomicactivitiesandenergyconsumptionofcitizenwithintheadministrativeareaoftherespectivemunicipality(Figure25).Policyandmeasuresaddressinginformationandawarenessraising,participationofcitizens,andtrainingstoenhancerelevantskillsandcompetencesofprofessionalsarealsobestim-plementedonlocallevel.Figure14:EnergypolicyareasneededtobeaddressedonlocallevelSource:OwndepictionIREESbasedon(Steinbachetal.2017)Municipalitiesalsofulfilanexemplaryrolewiththeirownbuildingsifambitiousenergyefficiencystandardsaredefinedandhigherrenovationratepursued.Economicactivitiesofmunicipalitiescanalsoinfluencestandardsconsideringtherelevanceofpubliccontractsfortheprivatesector.Publicprocurementhasanannualvolumeofabout50billionEUROSofwhich60%arespentbymunicipalities(dena2021).Therefore,analignmentofprocurementprocesseswithhigherminimumrequire-mentsforenergyefficiencyforproductsandservicesisaveryeffectivemeasurewithsignificantspill-overeffectsonthetotalmarket.61CaseStudy:MunicipalClimateProtectionConceptsandMunicipalHeatPlanningMunicipalclimateprotectionconceptsanddedicatedclimateprotectionmanagersinmunicipalitiesarefundedwithintheNationalClimateProtectionInitiativeoftheFederalMinistryoftheEnvironment,NatureConservationandNuclearSafety.Since2008,morethan2600climateprotectionconceptsandpotentialanalysishavebeenfundedwithintheprogram(BMU2021).Climateprotectionconceptsmustidentifyshort-,medium-andlong-termtargetsandmeasurestoreducegreenhousegasemissionsintherespectivemunicipalityandthuscontributetotheachievementofnationalclimateprotectiontargetsatthelocallevel.Theywillbedrawnupwiththeinvolvementofallrelevantactorsandincludeanenergyandgreenhousegasbalancesheet,apotentialanalysis,reductiontargets,acatalogueofmeasuresandrecommendationforasuitableinstrumentforcontrollingandmanagement(BAnzAT14.08.2020B72020).Concreteprojectsandmeasuresaredevelopedwithintheconceptsintheareasprivatehouseholds,servicesector,industry,municipalinstitutionsaswellasmobilityandtransport(Figure26).Figure15:ComponentsandprocedureforthepreparationofamunicipalclimateprotectionconceptSource:OwndepictionIREESAnotherplanninginstrumentismunicipalheatplanningwhichisconsideredasessentialinstrumentforachievingnotonlythetargetsinbuildingandindustrysectorbutalsoasprerequisiteforoverallinfrastructureplanning.InthestateofBaden-Württemberg,municipalitieswithmorethan20000inhabitantsareobligedtoprepareamunicipalheatingplan.Municipalheatplanningisaninstrumentusedtodevelopastrategyforthelong-termconversionoftheheatsupplywiththegoalofclimateneutrality.Comparedtoclimateprotectionconcepts,heatplanningfocusesonheatingdemandandsupplyincludingthelocalinfrastructuressuchasdistrictheatingandgasnetworks.Withregardtotheanalysisandtheunderlyingdata,itrequiresahigherlevelofdetail.AccordingtotherequirementsoftheClimateProtectionActofthestateofBaden-Württemberg,amunicipalheatplanscomprisesthefollowingelements:AnalysisofheatdemandandsupplyinfrastructurePotentialanalysisofrenewableenergiesandwasteheatDevelopmentofclimate-neutraltargetscenario2040,withintermediatestep2030MunicipalheattransitionstrategywithcatalogueofmeasuresFurthermore,themunicipalheatplanneedstodefineatleastfivemeasures,theimplementationofwhichistobestartedwithinthefiveyearsfollowingpublication.624.2DistributionalEffectsofEnergyEfficiencyPoliciesEnergyEfficiencyandEnergyPoverty(DistributionalEffects)Energypovertyisunderstoodastheinabilitytoadequatelyconsumerequiredenergyservicesataffordablecost(Schleich2019).Currently,about11%oftheEUpopulationcannotaffordheatingtheirhomesappropriatelyandaboutaquarterofpeopleareatriskofenergypoverty(BPIE2014;Pyeetal.2015)PublicationssuchasUgarteetal.(2016)describetherelationbetweenlow-incomestatusandpoorenergyperformanceofdwellingsasaviciouscyclebecauselow-incomehouseholdstendtoliveinlow-priced,non-refurbishedbuildings,whichleadstohighfuelcosts(Grösche2010).Ontopofthat,low-incomehouseholdstendtohavefewerfinancialresourcestopur-chaseenergy-efficienttechnologies,astheyusuallyhavehigherupfrontcoststhanlessefficienttechnologies(e.g.retrofitmeasuresorappliancesintopenergyclasses).EvidenceforthispatternwasfoundinseveralempiricalstudiesforGermanyandotherEUcountries(Schleich2019).Low-incomehouseholdsarealsomorelikelytobeconstrainedforcreditbecausetheycannotprovideadequatecollateral.Typically,anunfavourabledebt-serviceratiopreventsthemfromtakingoutfurtherloans.Inaddition,behaviouralfactorssuchasdebtaversion,riskaversion,lossaversionorimpatiencemaypreventhouseholdsfromadoptingenergy-efficienttechnologies(e.g.Schleichetal.2019;Schleich,Faure,andMeissner2021).Typically,low-incomehouseholdsaremorelikelytobedebtaverse,riskaverse,lossaverseandimpatient.Energycostsaretypicallyregressive:Low-incomehouseholdsinGermanytypicallyspendahighershareoftheirincomeonenergyservices(e.g.Bach,Harnisch,andIsaak2018).Forexample,householdsinthelowestdecilespendonaverageabout6.5percentofnetincomeonelectricity,buthouseholdsinthehighestdecileonlyspend1percent(Bachetal.2018).However,incontrasttoothercountries(e.g.France,Romaniawithhighownershipshares),inGermany,thephenomenonof'poorhome-owners'israre.Low-incomehouseholdswouldespeciallybenefitfromcost-effectiveenergyefficiencymeasures,asthosearetypicallypro-gressiveandleadtoenergyandcostsavingsinthemediumterm.PoliciesAlleviatingEnergyPovertyUgarteetal.(2016)findonlyafewpoliciesspecificallytargetinglow-incomehouseholdsintheirreviewofEUMemberStates'energyefficiencypolicies.Mostpoliciescombineenergyauditsandlow-interestloansorgrantsearmarkedforretrofitmeasuresorboilerreplacementswhilefewpoliciesaddressthereplacementofappliances(Schleich2019).Attentionneedstobepaidtotheaddressedstakeholder,sincemeasuressuchaslow-interestloansorgrantsforimplementinginsulationmeasuresorheatingsystemswhichonlybenefithomeownersarelikelytoberegressiveunlessspecificallytargetedat'poorhomeowners'.Similarly,high-incomehouseholdsbenefitinparticularfromtaxcreditsbecausetheirmarginaltaxrateishigher.Ingeneral,stronglytargetinglow-incomehouseholdsspecificallylimitsfreeridingandcanacceleratethetakeupofenergy-efficienttechnologies.WiththeproposalforanewdirectiveonenergyefficiencyoftheEuropeanCommissionmentionedinsection2.1anditstargettoalleviateenergypoverty,themandatoryshareofenergysavingsamongvulnerablecustomersandtheSocialClimateFund,itcanbeexpectedthatnewpoliciestoaddressenergypovertywillbedevelopedandenforcedintheMemberStatesandEurope.Currently,theGermanEnergySavingCheckprogrammeoffersadvicetoabout50.000low-incomehouseholdsperyear,in-stallslow-costEnergyEfficiencyTechnologiesEETssuchasLEDsorconnectorstrips,andofferspremiumsofupto150EURforthepurchaseofarefrigeratorinthehighestenergyclass.AninformationprogrammespecificallyforfinancialandlegalissuesalsoexistsonafederallevelinNorthRhine-Westphaliacalled“NRWfightspoverty”(VerbraucherzentraleNordrhein-Westphalen2021).Furthereffectivemeasuresforlow-incomehomeownerscouldbealoweringofinterestrates,alongerdurationforre-pay-mentoftheloanoralargersubsidy(Schleich2019).Also,low-incomehouseholdswouldpreferimmediatesubsidiestotaxcreditsthatareusuallyreceivedseveralmonthslatersincethesestakeholdersarelesspatient.Anotherideaaremini-contractingconcepts,wherebytheenergysuppliertakesoveraninvestment,financedbyamini-con-tractcreditwithare-paymentamountofthesizeofthesavedelectricitycost(Luschei,Beckmann,andSchreiner2016).63DistributionalEffectsofEnergyEfficiencyPolicies–SWOT-AnalysisStrength–currentsetofpoliciesWeakness–policyimprovementFirstexperienceswithinstrumentstargetingvulner-ableconsumergroups:Financialandlegalinformationcampaignsforlower-incomehouseholds(Ver-braucherzentraleNordrhein-Westfalen,Caritas)Instalmentoflow-costEnergyEfficiencyTechnologiesEETsandpremiums(Caritas)freeridingifnotspecifiedbuilding-relatedpoliciestendtobere-gressivefewpoliciesfocussingonlow-incomehouseholdsmostlyneglectbehaviouralfactorshightransactioncosts:complexproce-duretoapplyforfundingOpportunities–newpoliciesandpolicyoptionsThreads–barriersandmarketshortcomingsPoliciestargetedatlow-incomehouseholdssuchaslowerinterestrates,longerre-pay-mentperiodsforloansandsubsidiesInnovativefinancinginstrumentswithin-volvementofdifferentstakeholdersMandatoryfixedrateofenergysavingsbyvulnerablegroups(EU)investor-userdilemmabudgetaryconstraintslackofinformationlowrefurbishmentratessplitincentives4.3SocialAcceptanceReachingahighlevelofawareness,understandingandacceptanceabouttheimportanceofenergyefficiencyandassociatedpoliciesinsocietyatlargeandamongstconcernedstakeholdergroupsofmorespecificpoliciesiscrucialtoensurethecom-plianceneededtoachievethepotentialsofthesepoliciesandminimisetheenergyefficiencygap.ThegeneralacceptancefortheenergytransitionamongsttheGermanpopulationisquitehigh.Accordingtotheannualsurvey“energytransitionbarometer”oftheGermanFederalDevelopmentBank,theself-statedreadinesstoactaswellastheshareofhouseholdsthatindeedhaveenergy-efficientorrenewableenergytechnologiesintheirhomeshasbeenincreasingsteadilyoverthepastyears.However,concretemeasuresintheimmediatevicinityareoftenhamperedbyNIMBYeffects(NotInMyBackyard).Theconstructionofwindturbinesoroverlandpowerlines,forexample,areoftentimesopposedbythelocalpop-ulationwhomightworryaboutdisturbancesinthelandscapeandnoiselevels(RömerandSteinbrecher2021).Ithasbeensuggestedinseveralstudiesthatparticipationmeasurescanhelptoincreaseacceptance.InareportoftheprojectKomMA-P,differentparticipationmeasuresindifferentcontextsareevaluatedandgivedifferentsuggestionsonhowtoim-proveacceptancebylettingpeopleparticipateindecisionprocessesandfinancialreturns,bytransparentlycommunicatingthelocalmeasuresandprovidingcompensation.Especiallyutilitiesandmunicipalitiesareseenasrelevantactorstoinitiateparticipationprocesses(Fuchsetal.2016).Aspectsofacceptanceshouldalsobeconsideredforthedesignofpolicymechanismstoensurethattheyarebeingperceivedasfairandadequateandwilltherebyleadtothedesiredoutcomes.Forexample,Fanghellaetal.(2021)conducteddemograph-icallyrepresentativediscretechoiceexperimentswithindividualsinthreeEUcountries(IT,SE,UK),inwhichtheyinvestigatedtheroleofself-interestoncitizens’preferencesforthedistributionofcostsandofenvironmentalbenefitsofenergyefficiencypoliciesforpolicyacceptability.Theyfindthatfortheburdensharingofcosts,thepolluter-paysruleisthemostpopularburden-sharingruleandanequal-amountruletheleastpopularaswellasevidenceofself-interest(i.e.individualspreferpolicieswheretheybenefitmorethanothersandwheretheypaylessthanothers).However,sincepreferencesmightvaryregionally,studiesonacceptanceofdifferenttypesofpoliciesinChineseregionsshouldbeconsidered.Anotherfacetofpolicieswithacertaintargetgroupisthepotentialinfluenceofotheractorsintheirdecision-makingprocess.Especiallyinthecontextofenergyefficiencyinbuildings,intermediariessuchascraftsmenandinstallershavebeenfoundtoplayanimportantroleinhouseholddecisionmaking(Arningetal.2020).Thiscanbeespeciallyproblematicbecausetheseactorshaveoftenbeenfoundtoprefertechnologiesthataremorefamiliarinsteadofinnovativesustainabletechnologies.64Policiesshouldthereforenotonlytargetinvestorsthemselvesbutconsiderfurtheractorsintheinnovationsystemwiththeirspecificinterestsandresources.Similarly,itshouldbeassuredthattheoperatorsofnew,energy-efficienttechnologiesinbuildingsandenterprisesacceptandaretrainedinthehandlingofthesetechnologies,sinceoftentimesalackthereofcanleadtoaninefficientoperationandagapbetweentheexpectedandrealenergysavings(Böhm,Schäfer,andStadler2019).655LiteratureAGEnergiebilanzen.2021.AuswertungstabellenZurEnergiebilanzDeutschland.DatenFürDieJahrevon1990Bis2020.Arning,Katrin;,Elisabeth;Dütschke,Joachim;Globisch,andBarbaraZaunbrecher.2020.TheChallengeofImprovingEnergyEfficiencyintheBuildingSector:Takinganin-DepthLookatDecision-MakingonInvestmentsinEnergy-EfficientRefurbish-ments.In:EnergyandBehaviour.TowardsaLowCarbonFuture.Amsterdam:AcademicPress,S.129–151.Bach,S...,M...Harnisch,andN.Isaak.2018.VerteilungswirkungenDerEnergiepolitik–PersonelleEinkommensverteilung.Endbericht.ForschungsprojektImAuftragDesBundesministeriumsFürWirtschaftUndEnergie,DIW,Berlin.BAFA.2020.LeitfadenZurErstellungvonEnergieauditberichtenStand30.11.2020.BAFA.2021.‘FederalFundingProgrammeforEnergyandResourceEfficiencyintheEconomy(BundesförderungFürEnergie-UndRessourceneffizienzinDerWirtschaft):NewProgrammeNovember2021,Previously:FederalFundingProgrammeforEnergyEfficiencyintheEconomy(BundesförderungFürEnergieeffizienzinDerWirtschaft).’Re-trieved(https://www.bafa.de/DE/Energie/Energieeffizienz/Energieeffizienz_und_Prozesswaerme/energieeffizi-enz_und_prozesswaerme_node.html).BAnzAT04.02.2020B1.2020.RichtlinieÜberDieFörderungDerEnergieberatungFürWohngebäude(Vor-Ort-Beratung,IndividuellerSanierungsfahrplanVom28.Januar2020.BAnzAT14.08.2020B7.2020.RichtliniezurFörderungvonKlimaschutzprojektenimKommunalenUmfeld„Kommunalrichtlinie“Vom22.Juli2020.BAnzAT18.10.2021B2.2021.RichtliniefürDieBundesförderungFürEffizienteGebäude–Einzelmaßnahmen(BEGEM)Vom16.September2021.BAnzAT18.10.2021B3.2021.RichtliniefürDieBundesförderungFürEffizienteGebäude–Wohngebäude(BEGWG)Vom16.September2021.BAnzAT18.10.2021B4.2021.RichtliniefürDieBundesförderungFürEffizienteGebäude–Nichtwohngebäude(BEGNWG)Vom16.September2021.BEHG.2019.BrennstoffemissionshandelsgesetzVom12.Dezember2019(BGBl.IS.2728),DasDurchArtikel1DesGesetzesVom3.November2020(BGBl.IS.2291)GeändertWordenIst".BFE.2021.CompetitiveCallsforTenders–ProKilowatt.BMF.2020.SeventhActAmendingtheMotorVehicleTaxAct(SiebtesGesetzZurÄnderungDesKraftfahrzeugsteuergesetzes).BMU.2021.‘ZahlenUndFaktenNationaleKlimaschutzinitiativeDesBundesumweltministeriums’.BundesministeriumFürUmwelt,NaturschutzUndNukleareSicherheit.Retrieved26November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