The Energy Services Directive (ESD) is a framework Directive that covers a wide range of different aspects in relation to energy efficiency. The purpose of the Directive is to make the end use of energy more economic and efficient by:

• establishing indicative targets, incentives and the institutional, financial and legal framework needed to eliminate market barriers and imperfections which prevent efficient end use of energy;
• creating the conditions for the development and promotion of a market for energy services and for the delivery of energy-saving programmes and other measures aimed at improving end-use energy efficiency.

The Directive applies to the distribution and retail sale of energy, the delivery of measures to improve end-use energy efficiency, with the exception of activities included in the greenhouse gas emissions trading scheme, and, to a certain extent, the armed forces. It targets the retail sale, supply and distribution of extensive grid-based energy carriers, such as electricity and natural gas as well as other types of energy such as district heating, heating oil, coal and lignite, forestry and agricultural energy products and transport fuels.

More information is provided by DG Energy.