It is necessary to allow low-carbon solutions in industry, on a transitional basis and with small shares, said the European Parliament’s rapporteur for the revision of the Renewable Energy Directive (2018/2001) (RED II), Markus Pieper (EPP, Germany), on Tuesday 15 February, when he presented his draft report to some media, including EUROPE.
While he does not change the general target proposed by the European Commission to reach 40% of renewable energy in the EU’s gross final energy consumption by 2030 (see EUROPE 12762/8), the rapporteur suggests extending the scope of RED II to low carbon solutions through some amendments.
Industry
One of them is to review the binding sub-target for industry.
While the Commission wants to oblige Member States to ensure a 50% share of renewable hydrogen in industry by 2030, Mr Pieper claims that this can only be achieved through “the temporary acceptance of low-carbon energies”.
He therefore proposes that the target should also cover low-carbon hydrogen.
However, energy produced from low-carbon hydrogen would not count towards the overall target of 40% renewable energy by 2030, but only towards sectoral greenhouse gas emission reductions, “provided that the greenhouse gas emissions savings from the use of those fuels are at least 70%”.
The draft report also requires Member States to ensure that the share of renewable hydrogen in industry by 2030 is “at least 40%”, “subject to availability”.
In addition, Mr Pieper proposes to set this share at “at least 70%” by 2035 and to require EU countries to carry out an analysis of the availability of renewable fuels of non-biological origin and low-carbon hydrogen in 2027 and regularly thereafter.
Transport
In order to further promote renewable fuels, the rapporteur wants to raise the emission intensity reduction target for transport fuels to “at least 20%” (compared to “at least 13%” in the Commission proposal) by 2030.
One way of doing this is to include low-carbon hydrogen in the sub-target for renewable fuels of non-biological origin (RFNBOs) and to raise this target.
“The share of renewable fuels of non-biological origin and low-carbon hydrogen, (in transportation energy consumption) including low-carbon hydrogen derived fuels, is at least 2,6% in 2028 and 5% in 2030”, the draft report states.
The target in the Commission’s text is to aim for a share of RFNBOs of at least 2.6% by 2030.
The rapporteur also wants to increase the ambition regarding the share of advanced biofuels: 0.4% in 2022 (compared to 0.2% in the Commission’s proposal), 1% in 2025 (compared to 0.5%) and 5% in 2030 (compared to 2.2%).
Buildings
As regards buildings, the rapporteur maintains the Commission’s target of achieving at least a 49% share of renewable energy by 2030.
Instead, he proposes that Member States that do not explicitly price carbon in the building sector “set a higher indicative share of renewable energy”.
Biomass
On the biomass side, the draft report deletes the Commission’s proposal that it adopt a delegated act laying down detailed rules for the implementation of the cascade principle (the principle of aiming at an efficient use of biomass by giving priority to its material use over its energy use).
According to Mr Pieper, the way to implement this principle should be the responsibility of the Member States because of “natural differences”.
He also wants to reject the proposal to lower the minimum threshold for the application of sustainability criteria for solid biomass fuels in heating, electricity and cooling installations. According to the Commission’s text, these criteria should apply to installations with a capacity of 5 MW or more, instead of the current 20 MW threshold.
A strategy for imports
The rapporteur also introduces some new features.
The draft report calls on the Commission to develop “a global import strategy for renewable fuels of non-biological origin and low carbon hydrogen”, arguing that such imports “will be needed to cover the increasing demand for climate-friendly gases”.
This strategy would include indicative import targets and measures.
In order to ensure its proper implementation, Member States would be required to take appropriate measures in their National Energy and Climate Plans (NECP).
‘Fit for 55’ label to speed up licensing
Another new feature is the introduction by Member States of a ‘Fit for 55’ label for renewable energy projects of strategic interest.
This label would allow these projects to be prioritised and to benefit from simplified and accelerated procedures for granting permits (no more than 2 years, with a possible extension to 3 years in case of extraordinary circumstances).
New obligations for Member States
In order to support the development of low-carbon hydrogen, Mr Pieper wants Member States to establish an enabling framework, which can include support schemes, including low-carbon hydrogen purchasing agreements.
He further suggests that each Member State should set an indicative target that at least 5% of new renewable electricity capacity installed between 2025 and 2035 should “be of innovative renewable energy technology”.
EU countries would also be required to establish at least two joint projects with one or more other Member States for renewable energy production (compared to one in the Commission’s proposal), and at least three for Member States whose annual electricity consumption is above 100 TWh.
Next steps
Mr Pieper will present his draft report to his colleagues in the European Parliament’s Committee on Industry, Research and Energy (ITRE) on 3 March, with a view to a vote on 13 and 14 July. The Parliament’s plenary vote is scheduled for September.
See the draft report: https://aeur.eu/f/cf (Original version in French by Damien Genicot)