How to Design an Effective National Energy Efficiency Strategy: Lessons Learned from EU Policies

Since the inception of the first national energy efficiency action plans under the Energy Services Directive (2006/32/EC), the European Commission and the Member States have had a long experience in planning national strategies on energy efficiency. This paper analyses the lessons learned in setting up national energy efficiency strategies and traces the progress made in 2007-2020 to provide insights on what constitutes a good strategy. Our findings show that major improvements are attained in the latest national energy and climate plans through the adoption of more harmonised reporting approaches, more evidence-based target setting methods, the establishment of better monitoring systems and broader consideration of policy packages. Various areas with a significant potential for further improvements are also identified, ranging from more coherent reporting framework for policies and measures to the need of setting up a system that encourages the adoption of national targets in line with a country’s cost-effective energy efficiency potential. Embedding energy efficiency in the larger climate policy framework, considering how it can support pressing socioeconomic challenges, is also important. To this end, the anticipated COVID-19 recovery, which will arguably lead to a rebound in energy consumption without structural and policy interventions, highlights the role of these strategies.