Rethinking Energy Efficiency in EU Climate and Energy Policy

The Confederation of Finnish Industries EK and key industrial federations have assessed the need to reform the EU Energy Efficiency Directive. Simply reducing final energy consumption is not a meaningful objective at a time when Europe is seeking economic growth and, at the same time, the clean transition is increasing electricity demand. The focus should instead be on genuine energy efficiency that benefits both the environment and the economy.

The EU Energy Efficiency Directive (EED) sets a binding target for the Union to reduce final energy consumption by 11.7 per cent by 2030. This target is based on the assumption that lower energy consumption automatically leads to improved energy efficiency, lower emissions, and reduced costs. In reality, this is not the case: reducing emissions requires the electrification of society, which in turn increases the consumption of clean energy.

The Confederation of Finnish Industries EK, Technology Industries of Finland, Finnish Energy, Finnish Forest Industries Federation, and the Chemical Industry Federation of Finland have commissioned Ramboll to assess how EU energy efficiency policy could be more effectively steered towards the objectives of EU climate and energy policy. The topic is currently timely in Brussels, as the Commission is expected to present an update to the Energy Efficiency Directive by the end of 2026.

The study shows that the current main objective—a cap on final energy consumption—does not adequately reflect real energy efficiency. It is unable to distinguish genuine efficiency improvements from reduced production or delayed electrification. As a result, it may constrain clean investments and industrial growth in Europe.

EK and the industrial federations emphasise that energy efficiency should remain a key EU policy instrument, but it must simultaneously support emissions reductions, competitiveness, and security of supply.