The Cogeneration Directive (2004/8/EC) was adopted in 2004 and is designed to establish a transparent framework to promote and facilitate the installation of cogeneration plants.
Cogeneration plants can achieve energy efficiency levels of around 90%. The development of efficient cogeneration plants could avoid the emission of 127 million tonnes of CO2 in the EU in 2010 and 258 million tonnes in 2020. An analysis of implementation reports by Member States in 2009 showed that currently there are 97 GWe of cogeneration capacity installed in the EU, with at least an additional 122GWe of potential capacity which it would be economic to deploy before 2020. It is likely that a review of the Cogeneration Directive will be one of the measures proposed under the review of the the Energy Efficiency Action Plan.