Multiple benefits of renovation in buildings - PU Europe

Multiple benefits of investing in energy
efficient renovation of buildings
in 2020, cf. Figure 10. These funds could alternatively be used to boost investments in
innovation of low carbon technologies, including energy efficiency, in order to meet more
stringent climate targets in the future. 19 Our estimates are based on the EU government’s
envisaged deployment of renewable energy, described in the countries’ National Renewable
Energy Action Plan (NREAP). It should be noted that the cost of energy from renewable
technology is uncertain, and is subject to rapid change over time. We have calculated
the gain to public finances from both a low-cost, and a high-cost scenario. Figure 10
shows an average value, and the low and high-cost estimates respectively can be found in
the appendix. These benefits will improve public budgets each year.
Figure 10 Reduced outlay on subsidies
€ bn
18
16
2012-2020 2020-2030
Total: 15 Total: 16
14
12
10
8
Total: 8 Total: 8
14.0
14.0
6
4
7.1 7.1
2
0
0.7 1.1 1.4 2.1
Low EE scenario High EE scenario Low EE scenario High EE scenario
Avoided energy consumption subsidies
Avoided RE deployment subsidies
Note:
Since the EU NREAPs only go to 2020, we have assumed a parallel deployment of the same technologies
going towards 2030.
For energy consumption subsidies we have only included the OECD’s EU countries.
The total does not necessarily equal the sum of the elements due to rounding.
Source: Copenhagen Economics, based on Member States NREAP, OECD (2011c), DG Energy (2010), and
http://en.openei.org/apps/TCDB/
Health benefits – reduced air pollution
By reducing energy consumption, the amount of air pollution will be reduced. As energy
production from power plants, district heating plants, and local heating production is
reduced, so is the air pollution associated therewith. The air pollution primarily takes
place through the emissions of CO 2, NO x, SO 2, and small particle matters (PM 2.5).
We find that by reducing air pollution, an annual health benefit worth €5-8 billion will
accrue to the European population from 2020, cf. Figure 11. By continuing with energy
efficiency investments after 2020, this annual benefit can be doubled in 2030. For comparison,
the EU Commission finds that by going from a 20 per cent GHG reduction target
to a 30 per cent target, the value of reduced air pollution ranges from €3.5 – 17 billion. 20
19 See e.g. Copenhagen Economics (2011), and Copenhagen Economics (forthcoming)
20 See European Commission (2010), page 95
18