In its 2030 Climate Target plan, the European Commission suggests raising the ambition of the EU’s energy efficiency policies to reach climate neutrality by 2050. It mentions the possibility of increasing the energy savings obligations under Article 7 of the Energy Efficiency Directive (EED).

This paper provides a rationale for increasing the contribution of EED Article 7 in line with more ambitious energy efficiency and climate goals, as well as recommendations on how to do this.

The paper argues that unless national energy efficiency targets are made binding on Member States during the upcoming EED revision, Article 7 will remain the cornerstone of energy efficiency policies. It shows that Article 7 and EU-level measures are complementary, suggesting that reaching a reinforced 2030 energy efficiency goal would require boosting both types of measures.

The paper recommends to:

• Increase the energy savings obligation in line with the 2030 and 2050 goals
• Increase the reliability of energy savings estimates reported by Member States
• Ensure complementarity between Article 7 and carbon pricing measures
• Ensure complementarity between Article 7 and the Renovation Wave
• Align eligibility of individual actions under Article 7 with the 2050 climate goal