The idea was raised last week during an informal gathering of European energy and environmental ministers in Sweden and it follows an EU Parliamentary report questioning the EU members’ commitments to energy efficiency, which the Commission calls “the most cost-effective way of reducing energy consumption while maintaining an equivalent level of economic activity.”

Sweden has said it will make energy efficiency a priority as it takes its turn as the head of the EU’s rotating presidency. But challenges are significant. Countries remain unconvinced the target should be mandated, especially because the costs of doing so would be huge and upfront.

Still, EU Energy Commissioner Andris Pielbags said during the meeting that it was the right moment to raise the question. “There are voices calling for binding targets,” said Pielbags’s spokesman Ferran Terradelas. “But there are other voices saying that it remains to be seen if these targets can be measured, which is not an easy task.” There is no consensus on how efficiency rules would be implemented. Indeed, EU legislation to oversee building energy efficiency, which along with transport is key component of the strategy, hasn’t gained consensus within the EU. The Commission’s energy savings plan, expected in November, aims at setting common standards that will be included in country actions plans due in 2011.

By reducing 20 percent of the energy demand that is projected for 2020 under a business as usual scenario, Europe would save 400 million tons of oil equivalent, cut 860 million tons of greenhouse gases, and save on investments equivalent to half a million wind turbines, according to the Commission. Europe agreed to legally binding targets to cut greenhouse gas emissions 20 percent and to supply 20 percent of its energy with renewable sources by 2020. The Commission has also signaled out energy efficiency as one of the main drivers to reach the emission cutting goals.

Citing its impact, the Commission says that had it not been for lukewarm efficiency measures implemented between 1997 and 2006, annual final energy use for the EU would have increased 115 Mtoe, equal to one third of regional oil imports in 2006. During that same period, EU energy demand actually increased, but only slightly. The Commission also points to lack of consumer awareness and “the absence of adequate structures to trigger essential investments.” The objective is in serious danger of not being met, the Commission has said.

More than 40 percent of Europe’s greenhouse target could be met with energy efficiency, according to an assessment of national energy plans released earlier this month by Energy Efficiency Watch, led by EU members of Parliament. The same report estimates over 30 percent of the savings could come from the transportation sector, almost 25 percent from residential sector and 27 percent from the industrial sector. But the group also warned most countries would not commit to efficiency measures.