INCLUDE CITIES in EU energy policies 5DESIGN and in international climate negotiations. SET NEW INVESTMENT PRIORITIES to increase energy security

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1 EUROPE'S ENERGY TRANSITION THE BIG RECOMMENDATIONS TO GUIDE AND INSPIRE EU POLICY-MAKERS 1 INCLUDE CITIES in EU energy policies 5DESIGN and in international climate negotiations SET NEW INVESTMENT PRIORITIES to increase energy security USE LOCAL RESOURCES to tap the full efficiency potential 2 3 FUTURE-PROOF CITIES with radically reduced energy needs 4 INVOLVE ALL ACTORS to foster social innovation

2 WHAT MATTERS TO US The energy transition is more than a shift from one energy system (finite resources) to another (more renewable and low energy-based). Our century s challenge is to radically reduce our energy use. The local level is where the new energy paradigm is happening, through hundreds of initiatives implemented by a multitude of private, public and associative partners. Most of them are from cities engaged in the Covenant of Mayors sharing the same goal: THE LOW ENERGY CITY WITH A HIGH QUALITY OF LIFE FOR ALL. Ambitious policies at European level are crucial to speed up the movement.

3 f Everywhere across Europe euro scepticism is growing. Citizens feel increasingly disconnected with EU-level decisions and do not see the benefits of European policies in their everyday lives. f Europe wants to be a leader in fighting climate change but the successive failures of the international conferences have shown that limiting debates to the State level no longer works: Today s solutions lie in multi-level and multi-actor/sector actions. i The energy transition: it helps mobilise citizens and local actors in order to collectively boost a Europe united by actions. i The Covenant of Mayors, an EU-funded instrument that provides this multi-level, multi-actor solution. A growing community of nearly 6,000 cities representing 1/3 of the EU population have committed to going beyond EU climate and energy commitments. i The European Structural and Investment Funds with over 20% of the total budget to finance low-carbon growth. i The COP21 climate summit in Paris in 2015 to showcase local authorities and their active role in building a Europe united by actions, involving citizens and other local actors in a bottom-up vision of society. INCLUDE CITIES IN EU ENERGY POLICIES AND IN INTERNATIONAL CLIMATE NEGOCIATIONS! 1 Extend the Covenant of Mayors initiative to reinforce the community of signatories on the basis of a renewed commitment, beyond Offer Covenant signatories the right tools, such as an EU energy transition fund, to fast-track sustainable energy investments with the involvement of the private sector and civil society. Adapt supporting measures to the specificity of local energy contexts by means of dedicated capacity-building and exchange schemes between territories as well as support to regional and national offices. Anchor cities contribution to fight climate change in the COP 21 negotiation.

4 f Energy security has become a priority. f The past decades have been devoted to building an EU ensuring fundamental rights and freedom of movement. The single market has underpinned energy policies, with among others, the liberalisation of gas and electricity markets. f Directives aimed at increasing the energy efficiency of buildings and goods and at fostering the production of renewables have shaped the market. State aid rules, however, are still mainly designed for large-scale energy production units. f The cost-benefit analysis of investments does not internalise neither the climate change challenge nor the great benefit of creating local jobs, improving health and quality of life in the long-term. i Energy security can be ensured by empowering cities to better handle energy needs and potentials. For Europe to become independent from a handful of very powerful suppliers, European policies should foster decentralised, local energy production and savings, boosting local growth and jobs. Focusing on macroeconomic projects and continuously building new interconnecting infrastructures, huge pipelines and LNG terminals will not lead to that. i EU competition rules (feed-in tariffs, tendering procedures, progressive tariffs, etc.) should benefit territory-anchored businesses. Rules should allow local authorities for choosing the support mechanism they deem best suited to their local contexts. i Budget policy rules need to be reviewed in order to better allocate tax payer's money and encourage financial actors to support long-term and small-scale projects that benefit the society. SET NEW INVESTMENT PRIORITIES TO INCREASE ENERGY SECURITY 2 Set up a Community Power Facility (similar to the Connecting Europe Facility) as part of the Energy Union that finances projects investing in local carbon-neutral infrastructure. Propose an evaluation method for energy infrastructure investments taking into account long-term costs and benefits. This should make energy prices transparent and make employment, health and quality of life aspects decisive criteria for energy and transport infrastructure projects. Invest in capacity-building in the field of financial engineering with innovative schemes such as ELENA and support dedicated financial intermediaries.

5 f Europe s energy policy tends to focus on supply and generation, with electricity as the core power source. Most often, the potential of waste heat as a useful by-product is being overlooked. f Cities and regions have started counting water and waste, followed by energy, emissions and discharges at territorial level. But they are still too often unaware of the local or imported resources that are being used. i The Energy Efficiency Directive Review : it provides a sound heat policy and a greater support to co-generation. i The European Social Fund: it can support training for green jobs. i By allocating adequate human, financial and technical means for knowing the local resources, cities can fully exploit and optimise their local water, energy and material flow potentials. Thereby, synergies will be created and the territory will be able to increase its resilience. USE LOCAL RESOURCES TO TAP THE FULL EFFICIENCY POTENTIAL 3 Include a chapter on the local energy transition in the reviewed Energy Efficiency Directive, with particular emphasis on leveraging heat potential. Ensure the European Social Fund is being used to support local green jobs alliances: it needs coordinated action between all relevant actors to enable major sectors to shift towards a low-carbon economy. Similarly, in order to accelerate the industrial shift, the EU should play a role in aggregating small-scale projects focusing on energy efficiency and renewables.

6 f By focusing on market liberalisation and large infrastructures, EU energy policies fail to reap the huge economic benefits that the local level offers. f EU energy governance is currently being reviewed to increase subsidiarity. Power needs to be distributed and shared at all levels. i The energy autonomy of cities and regions is reliant on future energy policies focusing on decentralised production and consumption. i Local energy alliances are increasingly emerging at city-level. Europe needs more of this social innovation. i The role of national, regional and local energy agencies should be further extended both geographically and scope wise. They provide actors with know-how, advice and they help drive the implementation of energy-related directives. INVOLVE ALL ACTORS TO FOSTER SOCIAL INNOVATION 4 Include social innovation as a key element in exchange and research programmes. Support decentralised advice and capacity-building: Support regional public service facilitators focused on the energy transition such as national, regional and local energy agencies, training centres, enterprises and financial institutions. Provide cities and local actors with skills and tools to collectively develop long-term low-carbon strategies.

7 f EU cohesion policies promote sustainable urban development and regeneration of deprived areas, but they lack the crucial energy dimension. i The EU Urban Agenda should leverage local authorities full potential and place territorial cohesion at the heart of EU policies, including climate and energy policies. i New wide-scale campaigns on sustainable modes and schemes of transport should be launched. Successful European initiatives like the Mobility Week need a revival across all Member States. DESIGN FUTURE-PROOF CITIES WITH RADICALLY REDUCED ENERGY NEEDS! 5 Include a programme dedicated to innovative sustainable urban transport modes in the EU transport policies. Use the Urban Development Network, URBACT and other urban exchange networks to develop new knowledge-sharing streams. They promote approaches where cities systematically harness energy by more efficiently planning, mixing and integrating urban functions. Ensure that, during the mid-term review of the European Structural and Investment funds implementation and of other EU financial instruments, energy is fully integrated and considered as a key driver of territorial development and cohesion.

8 25 YEARS OF EXPERIENCE IN EUROPEAN MATTERS Energy Cities, created in 1990, is the European association of local authorities in energy transition. Since its foundation, it has been committed to sustainable energy policies and is active in sharing its experience and know-how with its members. The network of cities now represents more than 1,000 members from 30 countries. Its President is the Mayor of the city of Heidelberg (Germany). He is also heading the Board of Directors composed of 11 European cities from 11 countries. ENERGY CITIES MISSION f Strengthening local authorities capacity to accelerate the energy transition f Representing cities interests and influence national & EU policies f Developing and promoting our members initiatives A TRUSTED VOICE IN BRUSSELS Energy Cities is a credible and trusted advocate of local authorities in the fields of energy efficiency, renewables, climate mitigation, regional policy and financing. Energy Cities leads the Covenant of Mayors Offices (www.eumayors.eu) and is one of its official Supporters. Our network is proud to play an important role in this powerful initiative. conception graphique Priscilia Thénard, impression Oprinta (Bruxelles), 250 exemplaires, septembre 2014 ENERGY CITIES IN EUROPEAN MEDIA Le Monde, Euractiv, Frankfurter Rundschau, European Files, Le Nouvelliste, Cities Today, Revolve, etc. See the press clippings and much more on:

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