Energy intensity (2024)

This indicator is discontinued. No more assessments will be produced.

Assessment versions

Published (reviewed and quality assured)
  • No published assessments

Rationale

Justification for indicator selection

Energy-intensity is expressed as the ratio between gross inland energy consumption and GDP.

Historically, economic growth led to higher energy consumption, thus increasing the pressure exerted by energy production and consumption on the environment. This indicator identifies to what extent there is decoupling between energy consumption and economic growth.Relative decoupling occurs when energy consumption grows, albeit more slowly than the economy (i.e. GDP). Absolute decoupling occurs when energy consumption is stable or falls while GDP grows. Absolute decoupling is likely to alleviate the environmental pressures from energy production and consumption.

Environmental context

Decoupling energy consumption from economic growth can help the simultaneous achievement of economic and environmental goals. The decoupling may result from reducing the demand for energy services (e.g. heating, lighting and passenger or freight transport) by using energy in a more efficient way (thereby using less energy per unit of economic output) or a combination of the two. From an environmental point of view, overall impacts depend on the total amount of energy consumption, and the fuels and technology used to generate the energy.

Scientific references

Indicator definition

Energy intensity is the ratio between gross inland energy consumption (GIEC) and gross domestic product (GDP), calculated for a calendar year. GIEC is calculated as the sum of the gross inland consumption of the five sources of energy: solid fuels, oil, gas, nuclear and renewable sources. To monitor trends, GDP is in constant prices to avoid the impact of inflation, with a base year of 2010.

Units

Gross inland energy consumption is measured in 1 000 tonnes of oil equivalent (ktoe), while GDP is expressed in millions of euros at 2010 market prices. To make comparisons of trends across countries more meaningful, the indicator is presented as an index. For country comparisons, two additional columns are included in the table in Figure 2. to show thecurrent energy intensity in GDP in purchasing power standards for the latest available year, and also the energy intensity in terms of consumption per capita.

Policy context and targets

Context description

  • The Energy Efficiency Directive 2012/27/EU— amending Directives 2009/125/EC and 2010/30/EU, and repealing Directives 2004/8/EC and 2006/32/EC — puts forward an EU-wide 20 % energy savings target for 2020, measured against primary energy consumption (i.e. gross inland energy consumption minus non-energy uses). The Directive also transforms certain aspects of the Energy Efficiency Plan 2011 into binding measures, with the objective being to make a significant contribution to meeting the EU’s 2020 energy efficiency target.
  • The Energy Roadmap 2050 for moving to a competitive low-carbon economy in 2050 (COM(2011) 112 final), presents a roadmap for action in line with an 80-95 % reduction in greenhouse gas emissions by 2050.
  • A resource-efficient Europe— Flagship initiative of the Europe 2020 Strategy (COM(2011) 21) — presents a strategic framework that should deliver a more sustainable use of natural resources and a shift towards resource-efficient, low-carbon growth in Europe.
  • The Energy Efficiency Plan 2011 (COM(2011) 109 final), proposes additional measures to achieve the 20 % primary energy savings target by 2020.
  • The Energy 2020 strategy for competitive, sustainable and secure energy (COM(2010) 639 final) identifies energy efficiency as a key priority.
  • Directive 2009/29/EC of the European Parliament and of the Council, amending Directive 2003/87/EC so as to improve and extend the greenhouse gas emissions allowance trading scheme of Community Directive 2009/31/EC of the European Parliament and of the Council on the geological storage of carbon dioxide.
  • Directive 2009/31/EC of the European Parliament and of the Council on the geological storage of carbon dioxide.
  • Directive 2009/28/EC of the European Parliament and of the Council on the promotion of the use of energy from renewable sources.
  • Community guidelines on state aid for environmental protection (2008/C 82/01).
  • Directive 2008/101/EC of the European Parliament and of the Council, amending directive 2003/87/EC so as to include aviation activities in the scheme for greenhouse gas emissions allowance trading within the Community.
  • Regulation (EC) No 443/2009 of the European Parliament and of the Council sets emission performance standards for new passenger cars as part of the community’s integrated approach to reducing CO2emissions from light-duty vehicles.
  • The Second Strategic Energy Review (COM(2008) 781 final) reviews short, medium and long-term targets for EU energy security.
  • The EU Action Plan for Energy Efficiency (COM (2006)545 final) aims to boost the cost-effective and efficient use of energy in the EU. One of the priority areas is makingpower generationand distribution more efficient.

Targets

Directive 2012/27/EU on energy efficiency establishes a common framework of measures for the promotion of energy efficiency within the European Union in order to achieve the headline target of a 20 % reduction in primary energy consumption[1] by 2020. Member States are requested to set indicative targets. It is up to the Member States whether they base their targets on primary energy consumption, final energy consumption, primary or final energy savings or energy intensity.

[1] Under Directive 2012/27/EU, primary energy consumption is defined as gross inland energy consumption minus non-energy uses.

Related policy documents

Key policy question

Has there been absolute decoupling of economic growth from energy consumption in Europe?

Methodology

Methodology for indicator calculation

Technical information

  1. Geographical coverage:
    The EEA member countries. These are the 28 European Union Member States plus Iceland, Liechtenstein, Norway, Switzerland and Turkey. Iceland, Liechtenstein and Switzerland are not covered or are only partly covered in this factsheet due to lack of data for recent years.
  2. Methodology and frequency of data collection:
    Data collected annually. Eurostat definitions and concepts for energy statistics http://ec.europa.eu/eurostat/statistics-explained/index.php?title=Energy.
  3. Methodology of data manipulation:
    Energy intensity is defined as gross inland energy consumption (GIEC) divided by GDP at constant 2010 prices (i.e. to illustrate trends in economic energy intensity) and measures how much energy is required to generate one unit of GDP. Its variation over time reflects the influence of various factors, which include energy efficiency improvements, but also changes in the nature of the economic activity (the 'economic structure') or in the structure of the energy mix, changes in lifestyle (more appliances, higher indoor temperature in dwellings, more cars), climatic factors such as colder winters, etc.The coding (used in the Eurostat database) and specific components of the indicator is:

- Numerator: 100900 Gross inland consumption (of energy).
- Denominator: B1G GDP in millions of euros, chain-linked volumes, reference year 2010 (GDP in purchasing power standards is used for cross-country comparisons of energy intensity in a particular year; dataset-identifier: B1GM).
Average annual rate of growth calculated using: [(last year/base year) ^ (1/number of years) –1]*100

To compare the situation among countries and make a more realistic comparison, the energy intensity needs to be corrected to take into account differences in the general price levels. For that purpose, GDP has been expressed in purchasing power standards (PPS). This is particularly true for eastern European Member States where the average price level is lower than in the EU-15 countries: after adjustment, the energy intensities of these countries are almost twice as low, on average, as the values measured with exchange rates and are more in line with other EU countries.

Qualitative information

Overall scoring – historical data (1 = no major problems, 3 = major reservations):

  • Relevance: 1
  • Accuracy: 1
  • Comparability over time: 1
  • Comparability over space: 1

Methodology for gap filling

GDP is taken from the European Commission’s AMECO database. Data from the early1990s are not available for some EU Member States. The EU-28 estimate for the 1990-1992 period (growth rates 1991-1993) has been made by gap-filling these Member States using available GDP figures from the World Bank database. Gap-filling was carried out for the following counties and years: 1990-1992 forCroatia, Estonia and Slovakia; 1990-1991 for Latvia and Lithuania; 1990 for Bulgaria. In addition, 1990 GDP for Germany has been estimated on the basis of the 1991 growth rate in West Germany.

Methodology references

No methodology references available.

Uncertainties

Methodology uncertainty

The intensity of energy consumption is relative to changes in real GDP. Cross-country comparisons of energy intensity based on real GDP are relevant for trends but not for comparing energy intensity levels in specific years and specific countries. This is why the indicator is expressed as an index. In order to compare the energy intensity between countries for a specific year, two additional columns are included that show energy intensity in purchasing power standards (PPS) and energy intensity per capita. PPS are currency conversion rates that convert to a common currency and equalise the purchasing power of different currencies. They are an optimal unit for benchmarking country performance in a particular year. Energy intensity should therefore always be put in the broader context of the actual fuel mix used to generate the energy.

Data sets uncertainty

Strengths and weaknesses (at data level)

Data have been compiled by Eurostat through the annual joint questionnaires, which are shared by Eurostat and the International Energy Agency, following a well-established and harmonised methodology. Methodological information on the annual joint questionnaires and data compilation can be found in Eurostat's web page for metadata on energy statistics, http://ec.europa.eu/eurostat/statistics-explained/index.php?title=Energy

GDP is the central aggregate of national accounts. Some GDP-figures have been estimated using the procedure described above (Methodology for gap filling). Methodological information related to GDP can be found on Eurostat’s website.

Rationale uncertainty

No uncertainty has been identified

Further work

Short term work

Work specified here requires to be completed within 1 year from now.

Long term work

Work specified here will require more than 1 year (from now) to be completed.

General metadata

Responsibility and ownership

EEA Contact Info

Mihai Florin Tomescu

Ownership

European Environment Agency (EEA)

Identification

Indicator code

CSI 028

ENER 017

Specification

Version id: 4

First draft created:

17 Oct 2016, 06:19 PM

Publish date:

16 Dec 2016, 02:15 PM

Last modified:

12 Feb 2021, 02:07 PM

Primary theme: Energy intensity (1) Energy

Frequency of updates

This indicator is discontinued. No more assessments will be produced.

Classification

DPSIR: Response
Typology: Performance indicator (Type B - Does it matter?)

Energy intensity (2024)
Top Articles
Latest Posts
Article information

Author: Kimberely Baumbach CPA

Last Updated:

Views: 6004

Rating: 4 / 5 (41 voted)

Reviews: 88% of readers found this page helpful

Author information

Name: Kimberely Baumbach CPA

Birthday: 1996-01-14

Address: 8381 Boyce Course, Imeldachester, ND 74681

Phone: +3571286597580

Job: Product Banking Analyst

Hobby: Cosplaying, Inline skating, Amateur radio, Baton twirling, Mountaineering, Flying, Archery

Introduction: My name is Kimberely Baumbach CPA, I am a gorgeous, bright, charming, encouraging, zealous, lively, good person who loves writing and wants to share my knowledge and understanding with you.