Parliament notes "with regret" that in the majority of Member States the funding allocated to energy efficiency projects is still insufficient and fails to adequately account for regional differences.
Moreover, individual sector policies continue to run counter to the EU's endeavour to be energy efficient, the report says.
Member States should be more ambitious in their energy saving targets
MEPs call on Member States to "increase their level of ambition" by going beyond the national indicative energy saving target of 9% by 2016. Countries of the EU are also urged to turn their National Energy Efficiency Action Plans (NEEAPs) into a "practical tool for delivery", in order to meet the wider and longer term target of improving energy efficiency by at least 20% by 2020.
Residential buildings are among the most energy-wasteful sectors, the report says. Therefore, financial support at both national and Community levels for the energy performance of buildings should be increased and existing financial incentives should be compared with the commitments set out in the National Action Plans.
Cars: increasing demand for transport an issue
Turning to the car industry, the MEPs underline the importance of stringent future emissions targets to be set as soon as possible in the interests of industry certainty and express their disappointment that the 95g CO2 limit for 2020 called for by Parliament is not yet confirmed.
While they welcome the regulation on conditions governing carbon dioxide emissions from cars, they note, "with concern" that the new legislation will not offset the increasing energy demand for transport.
Small businesses do not have capacity to abide by legislation
SMEs also have an important role to play in improving energy efficiency, the report says, but "they do not have the same capacity to comply with legislation or new standards in the energy sector". MEPs therefore consider it necessary for National Action Plans to place special emphasis on how governments intend to promote and support energy efficiency investments on the part of SMEs.
Awareness campaigns to tackle poverty
In view of the fact that rising energy prices can lead to poverty, Member States are encouraged to include appropriate financial instruments for energy saving in their national action plans, and to develop long-term energy efficiency awareness campaigns as a matter of urgency.
Looking to alternative energy sources, Member States are "encouraged" to make substantial use of renewable energy such as wind, biomass, biofuels and also wave and tidal energy, where possible.
Finally, MEPs call on the Commission to make the 20% energy efficiency target by 2020 "legally binding as part of the assessment it must prepare on the progress of the Community towards this target."
