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Europe Daily Bulletin No. 12984
SECTORAL POLICIES / Energy

European Parliament political groups agree on compromises on revision of ‘RED II’ directive

Negotiators from the European Parliament’s political groups for the revision of the EU’s Renewable Energy Directive (2018/2001) (RED II) managed to reach compromise amendments on Wednesday 29 June, ahead of the vote in the Parliament’s Committee on Industry, Research and Energy (ITRE) scheduled for 13 July.

These amendments, consulted by EUROPE, would set the EU’s binding target for the share of renewable energy in the energy mix at 45% by 2030. If adopted, this would bring the Parliament into line with the ambition of the European Commission’s plan to move the EU away from dependence on Russian fossil fuels (‘REPowerEU’ - see EUROPE 12955/4).

In order to preserve the EU’s industrial competitiveness, MEPs also propose to set an indicative target for each Member State that at least 5% of new installed renewable energy capacity between the entry into force of the directive and 2030 should apply innovative technologies.

In addition, there would be a national indicative target for storage technologies and a minimum national indicative target for demand-side flexibility, corresponding to a 5% reduction in peak electricity consumption by 2030.

While Parliament’s rapporteur on this dossier, Markus Pieper (EPP, Germany), wanted to extend the scope of the directive to low-carbon energies (see EUROPE 12891/5), this idea was finally dropped in the face of opposition from the S&D, Renew Europe, Greens/EFA and The Left groups.

Industry

For the industry sector, the compromise amendments raise the indicative target for the annual increase in the use of renewable energy to 1.9 percentage points (pp) (compared to 1.1 pp in the Commission’s original proposal).

As regards the use of renewable fuels of non-biological origin (RFNBOs) as feedstocks or energy carriers in industry by 2030, the Commission’s binding sub-target for 2030 (50%) is retained. However, the compromise negotiated between the political groups adds a target of 70% for 2035.

As requested by the rapporteur, the Commission would be required to develop a global hydrogen import strategy to promote a European hydrogen market no later than one year after the entry into force of the directive.

Buildings

On the use of renewable energy in buildings, the compromise amendments retain the indicative target of at least 49% proposed by the Commission.

Member States would have the option of counting waste heat and cooling towards this target, with a limit of 20%. If they decide to do so, the target would then be increased by half the percentage of residual heat and cooling used up to an upper limit of 54%.

Heating and cooling

While the Commission proposed keeping the current target for the heating and cooling sector, but to make it binding, the compromise amendments follow the opposite logic.

The target would thus remain indicative and increase from an annual increase of at least 1.1 pp to an annual increase of 2.3 pp. In addition, it would be increased to 2.8 pp for those Member States where residual heat and cooling is included in the accounting. The inclusion of residual heat and cooling in the target would also be limited to 40% of the average annual increase.

Transport

The compromise amendments also introduce several changes to the transport chapter.

They raise the binding target for reducing the greenhouse gas emission intensity of transport fuels by 2030 to 16% (compared to 13% in the Commission’s original proposal).

The share of advanced biofuels and biogas in the energy supplied to the transport sector should be at least 0.5% in 2025 and at least 2.2% in 2030, which corresponds to the Commission’s proposal.

However, the amendments bring forward the 2.6% target for the share of RFNBOs in transport by 2 years (from 2030 to 2028). For 2030, the target is set at at least 5.7%.

The political groups’ negotiators also want to introduce a sub-target of 1.2% for the share of RFNBOs in the maritime sector. A Member State without seaports on its territory could choose not to apply this provision.

Other amendments

The negotiators also reached compromises on other points of the proposal, such as guarantees of origin, biomass, the principle of additionality and the procedures for granting permits to renewable energy projects.

On this last point, they agreed to streamline Article 15 on administrative procedures and to leave the provisions on authorisations for the next negotiations, taking into account the proposals of the REPowerEU plan on this matter (see EUROPE 12949/2).

On the principle of additionality - ensuring that the fuel producer contributes to the deployment or financing of renewables so that increased production of RFNBOs is matched by a corresponding increase in renewable energy production - the amendments contain two different compromises. One, championed by the rapporteur, foresees setting the additionality criteria in Article 27, while the S&D, Renew Europe, Greens/EFA and The Left groups oppose this approach as the Commission has issued a delegated act on this issue (see EUROPE 12959/22). (Original version in French by Damien Genicot)

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