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Europe Daily Bulletin No. 12985
SECTORAL POLICIES / Energy

European Parliament negotiators want to raise EU’s energy efficiency target and binding national contributions

Negotiators from the EPP, S&D, Renew Europe and Greens/EFA groups in the European Parliament agreed, on Friday 1 July, on compromise amendments to the revision of the EU Energy Efficiency Directive - EED (2018/2002). In particular, they want to raise the target set at EU level and make Member States’ national contributions to this target binding.

When presenting the proposal for the revision of the EED, the Commission had proposed the objective of ensuring, at EU level, a reduction in energy consumption of at least 9% by 2030 compared to the projections of the 2020 baseline scenario (projection of the situation in which current EU policies, combined with market trends, are likely to lead - see EUROPE 12762/8).

According to the Commission, this corresponded to an energy efficiency target of 39% for primary energy consumption and 36% for final energy consumption compared to the 2007 baseline projections (compared to 32.5% under current legislation), the previously used baseline.

Following the Russian invasion of Ukraine, the Commission subsequently proposed to increase the target to 13% compared to the 2020 baseline projections.

The compromise amendments obtained by EUROPE provide for an increase in ambition to 42.5% (primary energy consumption) and 40% (final energy consumption) compared to the 2007 baseline projections.

This means that the Union’s final and primary energy consumption should not exceed 740 Mtoe and 960 Mtoe respectively in 2030, compared to 787 Mtoe and 1023 Mtoe in the Commission’s original proposal. 

In addition to raising the collective target, the European Parliament negotiators want to make Member States’ national contributions to this target binding. Member States would also be required to accompany these contributions with a trajectory with two interim targets in 2025 and 2027.

Public sector

For the public sector, the compromise amendments provide for an increase in the binding annual reduction in the total final energy consumption of all public bodies combined from 1.7% to 2%.

They also specify which buildings would be affected by the obligation to renovate at least 3% of the total floor area of buildings owned by public bodies.

The amendments extend this obligation to social buildings, but reinstate an exemption for certain types of buildings. These are: - buildings officially protected as part of a designated environment, or because of their special architectural or historical value; - buildings belonging to the armed forces or central government and used for national defence purposes; - buildings used as places of worship and for religious activities.

In addition, Member States would have the possibility to exempt social housing from the renovation obligation if the renovations are not cost-neutral or if they lead to rent increases for the people living in the housing that are higher than the savings on their energy bills. 

If a Member State renovates more than 3% of the total surface area of its public buildings and social housing in a given year, it could apply the excess to the annual renovation rate in one of the following three years, until 31 December 2026. From the 1st of January 2027, this possibility would be limited to the following two years (rather than three).

Energy savings

The compromise amendments also change the energy saving obligation between 2024 and the end of 2030. During this period, Member States would be required to make annual energy savings of at least 2% of annual final energy consumption, compared to 1.5% in the Commission’s original proposal.

In addition, European Parliament negotiators agreed to: - introduce a new chapter on data centres; - revise the criteria for what constitutes an ‘efficient ‘ district heating and cooling system; - strengthen the application of the ‘energy efficiency first principle’; - modify the criteria for the selection of companies subject to the obligation to have an energy management system or to carry out energy audits.

They also propose that the Commission establish “European sectoral energy efficiency partnerships” bringing together key stakeholders, including social partners, in sectors such as ICT, transport, finance and buildings. These partnerships would aim to facilitate climate dialogues and encourage sectors to develop energy efficiency roadmaps “to identify measures and technology options available to achieve energy savings, prepare for renewables and decarbonise sectors”.

While the Council of the EU adopted its position on the dossier on 27 June (see EUROPE 12980/2), the compromise amendments will be put to the vote in the Parliament’s Committee on Industry, Research and Energy (ITRE) on 13 July.

See the compromise amendments: https://aeur.eu/f/2h1 (Original version in French by Damien Genicot)

Contents

SECTORAL POLICIES
Russian invasion of Ukraine
EXTERNAL ACTION
ECONOMY - FINANCE - BUSINESS
SOCIAL AFFAIRS - EMPLOYMENT
NEWS BRIEFS
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