The Energy Services Directive (ESD) was adopted on 5 April 2006. The transposition date for all Member States was 17 May 2008. The overall aim of the ESD is to enhance the cost-effective improvement of energy end-use efficiency.

The need for improved energy end-use efficiency, a clear system for managing energy demand, and promotion of the production of renewable energy are becoming increasingly important within the European Community, as well as on a wider global scale.

The purpose of this Directive is to enhance the cost-effective improvement of energy end-use efficiency in the Member States. This will be achieved by providing the necessary indicative targets as well as mechanisms, incentives and institutional, financial and legal frameworks to remove existing market barriers and imperfections that impede the efficient end use of energy. The ESD also aims to create the necessary conditions for development and promotion of a market for energy services and for the delivery of other energy efficiency improvement measures to final consumers