**2. Political framework operations in the EU**

The European Union has adopted a wide range of legal instruments to improve energy efficiency. For EU directives, it is up to the member states how they transpose the directives into national law. In the official journal of the European Union, directive 2009/28/EG promoting the use of energy from renewable sources and amending and subsequently repealing directives 2001/77/EG and 2003/30/EG are binding and non-binding guidelines for an efficient energy use in the EU. All member states have to give their best to implement those improvement measures [6].

The main targets of the directive 2009/28/EG are the so-called 20-20-20 targets. This means that, as target, renewable energies account for 20% of the final energy consumption across the EU, the greenhouse gas emissions have to be reduced by 20%, and the energy efficiency should be increased by 20% in the EU referring to 1990 as base year. Furthermore, the directive 2009/28/EG stipulates that biofuels must account for 10% of total fuel consumption by 2020 [7].

There are also some long-term objectives of the EU. The proportion of renewable energies in energy consumption and the energy efficiency should increase to at least 27% by 2030. In 2020, the goals should be reviewed to see whether an increase of 30% is possible. In 2030 the greenhouse gas emissions must be reduced by almost 40% (base year 1990) [8].

#### **2.1 European emissions trading system (EU ETS)**

The European Union Emissions Trading System was introduced in 2005 for the regulation of greenhouse gas emissions in energy-intensive industries. The relevant system operators concerned must have a certificate for each tonne of CO2 emitted and submit it to the regulatory authority. The system enables trading in carbon certificates under a defined overall framework for all participants—a so-called "cap-and-trade" system. These allowances are freely tradable, which means that participants who emit more greenhouse gases can purchase emission certificates from other participants with lower greenhouse gas emission needs. In order to reduce overall emissions, the proportion of allowances is reduced by 1.74% per year by 2020 [9]. **Figure 2** illustrates the EU ETS scheme.

The principle of the "cap-and-trade" system is easy to recognize in **Figure 2**. In this example, issuer A generates more emissions than issuer B, thus exceeding the authorized amount of CO2. In order to solve the problem, issuer A can purchase the unused certificates from issuer B (which has very low CO2 emissions in this example).

*Transportation Systems Analysis and Assessment*

freight trains and cargo aircraft.

untapped-into potential [11].

explanatory [12].

countries.

of emission certificates) [6–9]. This chapter deals with the current state of the art of

Energy efficiency means using less energy to provide the same level of utility. It is therefore one method to reduce anthropogenic (human) greenhouse gas emissions [3]. EE is a universally applicable concept relevant for consumers and industry alike

In November 1974, the International Energy Agency, an autonomous agency, was founded. Its main mission is to promote energy security among its 29 member

Energy efficiency is the key to ensure a safe, reliable, affordable, and sustainable energy system for the future. It is the one energy resource that every country possesses in abundance and is the quickest and least costly way of addressing energy security and environmental and economic challenges. While energy efficiency policies are becoming a key part of the global energy market, there remains vast

Energy efficiency means using the same amount of energy to achieve the same

"Energy intensity" looks at how much energy was needed to get a certain result. The units of energy intensity used are usually given by the primary energy consumption per inhabitant or by the primary consumption per unit of gross domestic product (GDP). Measuring energy efficiency as an energy intensity is basically possible at the macroeconomic level [4]. As an indicator of energy efficiency, the energy intensity of a country is often used for the assessment. This is because at a high level it is a proxy measure of energy needed to provide the used energy service (the energy intensity measures the energy needed to provide units of economic value). Moreover, it is very readily available as an indicator, and it is easier to rate or compare countries. If a country has a low energy intensity, it does not necessarily mean that the energy efficiency of that country is also high. Conversely, it should be noted that lower-intensity trends are not necessarily due to efficiency improvements. Energy efficiency contributes to

utility level. The term energy efficiency itself is therefore very clear and self-

that can be achieved by a more efficient technology, an improved process, or a change of individual behavior. Energy efficiency can, according to the International Energy Agency's (IEA) World Energy Outlook (IEA WEO), "close the competitive-

ness gap caused by differences in regional energy prices" [10].

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**Figure 1.**

*Top six CO2-emitting end uses in IEA countries in 2013. Reproduced with permission from [13].*

**Figure 2.** *Purchase and sale of emission certificates. Reproduced with permission from [9].*
