The final inter-institutional negotiations on the Energy Efficiency Directive started at 2pm on Thursday 9 March and ended at dawn the following day. It took the co-legislators almost 16 hours to agree on the various points of debate between the EU Council and the European Parliament (see EUROPE 13137/3).
Overall target of 11.7% energy efficiency
The most important of these concerned the overall energy efficiency target in Europe, which was finally set at 11.7%. This is a lower target than the one aimed at by the Parliament and its rapporteur, Niels Fuglsang (S&D, Danish), contacted by EUROPE after the negotiations: “Strong governance is a good thing, but we would have liked to have a bigger target”, he said, before pointing out that energy efficiency was the cheapest way to tackle today’s energy challenges.
The Parliament was indeed aiming for a 14.5% reduction in energy consumption compared to the 2020 baseline, while the EU Council wanted a 9% reduction. The Commission’s REPowerEU strategy proposed 13%. The Parliament has, however, acquired individual national targets, which are indicative, but which will have to be integrated into the National Energy and Climate Plans (‘NECPs’). “Now, for the first time ever, we have a target for energy consumption that the member states are obliged to live up to. In other words, we will see action here”, Fuglsang welcomed.
Annual energy savings of 1.5% for Member States
As regards the annual energy savings of the Member States, they must reach an average of 1.49% from 2024 until 2030. They will be set at 1.3% until the end of 2025 and will have to gradually reach 1.9% by the end of 2030.
The Swedish Presidency of the EU Council and the European Commission welcomed the agreement as a further step in the realisation of the ‘Fit for 55’ package. Commissioner for Energy Kadri Simson said on Twitter that she was pleased that “we now have a strong European framework to help us fully decarbonise the EU economy”.
Other political and professional reactions quickly multiplied following the announcement of the agreement. While many are relieved that the agreement has finally been reached, others denounce a lack of ambition, particularly concerning national contributions, which are not binding. For Adriana Vitali, Secretary General of The Coalition for energy savings, the agreement is not complete: “It improves the current energy efficiency directive, but not to the extent needed to meet the objectives of REPowerEU. For example, agreement was reached to increase the overall target, but this meant compromising the certainty of its achievement”.
Targeted measures for the public sector and businesses
With regard to other measures, the role of the public sector was also one of the last points of debate. Under the agreement, the sector will now be required to reduce its final energy consumption by 1.9% per year and at least 3% of public buildings will have to be renovated each year.
Companies will also be encouraged to reduce their energy consumption. Those exceeding 85 TJ of annual energy consumption will have to implement an energy management system. Otherwise, if their annual consumption exceeds 10 TJ, they will be subject to an energy audit. For the first time, a reporting system on the energy performance of large data centres is also introduced.
Local district heating and cooling plans
Another key measure agreed by the co-legislators is the promotion by Member States of local district heating and cooling plans in municipalities with more than 45,000 inhabitants, with a view to achieving full decarbonisation by 2050.
Tackling energy poverty
The agreement also contains the first European definition of ‘energy poverty’. Member States should implement energy efficiency measures as a priority for people experiencing energy poverty. This includes, for example, the establishment of one-stop shops for technical and financial assistance and out-of-court mechanisms for dispute settlement.
In addition, Member States should promote green financing schemes and lending products that encourage energy efficiency, ensuring that financial institutions offer them widely and without discrimination. (Original version in French by Pauline Denys)