According to a report by the European Court of Auditors, most of the European Union's energy efficiency spending, totaling €5 billion ($6.6 billion) since 2000, was misspent.

The money was intended to curb fuel use and emissions by funding national investments in energy-saving measures. But after examining spending in the Czech Republic, Italy and Lithuania -- the countries that received the most funding since 2007 -- the court found that the money was put toward public buildings in need of renovation rather than projects with high savings potential.

"None of the projects we looked at had a needs assessment or even an analysis of the energy savings potential in relation to investments," Harald Wögerbauer, the court member responsible for the report, said in a news release. "The Member States were essentially using this money to refurbish public buildings while energy efficiency was, at best, a secondary concern."

Doors and windows were replaced and walls were insulated, but the energy savings didn't add up. Often, the payback time for the investment exceeded the lifetime of the refurbished parts.

The court blamed not only the individual states, but also the European Commission for mismanaging the funding programs. In the future, the court advised that energy efficiency projects should be carefully selected and closely monitored, and the European Commission should limit the payback period (Alessandro Torello, Wall Street Journal, Jan. 14). -- EH