FORUM PORTUGAL ENERGY POWER: "SME, Energy Efficiency and Sustainability"

SME, Energy Efficiency and Sustainability

Isabel Soares FEP/CEF.UP

1 Isabel Soares ( [email protected])

Outline

Isabel Soares ( [email protected]) 2

EU STRATEGIC PRIORITIES


Smart growth

Sustainable growth

Inclusive growth


Increasing share of REN in a country’s energy mix is a necessary but not a sufficient condition for the sustainability of economic system. Energy Efficiency (EE) encompasses all changes leading to a reduction in the

energy used for a given energy service or level of activity

BUT

EU 20% goal for energy savings could not be met with present policies…

Problem

Why SMEs?


99% of EU-27 enterprises in the private sector are SMEs. 60%-70% of environmental impact is related to SMEs.

About 0.4% of SMEs use a certified Environmental Management System About 24% of SMEs are actively engaged in actions which are reducing

their environmental impact Most EU businesses are small and medium-sized enterprises (SMEs).

They represent an enormous energy saving potential for the EU

European Commission also promotes the growth of SMEs also through the Small Business Act for Europe (SBA), a set of 10 principles which should guide the design and implementation of policies both at EU and national level

SMEs are the backbone of the European economy and their contribution is essential for pursuing the goals of ‘Europe 2020’,

the Strategy for Smart, Sustainable and Inclusive Growth

Accounting for 99.8% of non-financial enterprises in 2012 20.7 million businesses.

The majority (92.2%) are micro-enterprises (< 10 employees)

6.5% of EU SME are small enterprises ( 10 - 49 employees)

1.1% are medium-sized (50-249 employees)

Only 0.2% are non-financial large businesses (> 250 employees)



Annual growth % in Employment, Real Value Added and Real Productivity of EU27 SMEs ( 2008-2011)


SME performance among Member States: diverging trends (2011 Data)

Only Austria, Germany and Malta exceeded their 2008 levels of real VA and employment in their SMEs (Ecorys, 2012).

Belgium, Finland France and Luxemburg: a flat SME performance 2008.

In the remaining EU countries: SMEs have not recovered their pre-crises levels of real VA and employment.

WHY?

1. SME employment is relatively concentrated in high-tech and medium-tech manufacturing and knowledge-intensive services

2. Sectoral labour productivity levels are higher when the sector shows higher investment rates, higher export rates and when the sector belongs to high-tech manufacturing and knowledge-intensive services.

3. Best performing countries have combined SME employment growth with SME labour productivity growth, although SME EG much higher than LPG.


European Strategy to boost SMEs according to strategic priorities


EU Strategy

Resource Efficiency

Green Markets

Green Jobs


For an economist: EE is associated with economic efficiency and includes:

Technological change

Behavorial change

Economic change

EU 27 SMEs: facts on the European Sustainability Targets up to 2020

1. RESOURCE EFFICIENCY


3% of EU SMEs are taking at least one action to be more resource efficient.

SMEs would save energy (64%), minimize waste (62%), recycle (61%), save materials (57%) and water (50%), while large companies with more than 250 employees would save more energy (82%), minimize waste (72%), recycle (76%), save materials (74%) and sell scrap material to companies (44% vs. 24%)

80% of SMEs plan to implement additional resource efficiency actions in the next two years



• Resource Efficiency

33% of SMEs make efforts to improve resource efficiency, as it is one of their top priorities.

1/5 of SMEs would take measures because of financial and fiscal incentives, or other forms of public support to create a competitive advantage/business opportunity (23%), or because of demand from customers or providers (22%).

Large companies with over 250 employees compared to SMEs would take efficiency measures to create a competitive advantage/business opportunity (36% vs. 23% for SMEs), anticipate future professional/product standards (22% vs. 12%), as well as further changes in legislation (20% vs. 12%)


• Resource Efficiency


43% of SMEs receive external support in relation to environmental actions from the private sector (24%) and public support (9%), while 47% of large companies receive external support from private sector and from public sector (13%).

Measures to improve resource efficiency have reduced the production costs for 35% of SMEs, while 27% of SMEs had production costs increased.

25% of SMEs have an Environmental Management System (EMS) in place in comparison to 48% of large companies.

EU structural and cohesion funds supported 4% of SMEs.

11% of SMEs have bid for a public procurement tender that included environmental requirements, while 16% of large companies participate in a public procurement tender with environmental requirements.

Energy consumption by manufacturing business in Portugal (2000-2010)


Sample: a) 100 SMEs; b) North/Center/Alentejo; c) Textil&Garment/Metal Engineering/Wood/Furniture&Cork/Glass & Ceramics/Foodstuffs; energy consumption mainly between 250-500 tep; d) Potential to increase energy efficiency




Thank you!


http://www.google.pt/url?sa=i&source=images&cd=&cad=rja&docid=bOXuMTTXLZSalM&tbnid=Wqi00MHxzNviUM:&ved=0CAgQjRwwAA&url=http%3A%2F%2Fwww.dreamstime.com%2Froyalty-free-stock-photos-energy-efficiency-concept-image13887038&ei=LBmNUuXoKKjT7AaN2oC4DA&psig=AFQjCNE0MZIfWEy_aesAukGyrKpdVoy0VQ&ust=1385065132742343

References

• WEC.2011:Energy efficiency policies around the world: review and evaluation

• ECORYS ,Sept. 2012: EU SMEs in 2012: at the crossroads

• IAPMEI ( Editor), Nov. 2012: Estratégia de Eficiência Energética em PME


Technology

FORUM PORTUGAL ENERGY POWER: "SME, Energy Efficiency and Sustainability"