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European Council adopts new renewable energy directive

European Council adopts new renewable energy directive

OCTOBER 12ST,2023

Today, the European Council announced policies targeting industries such as transportation, industry, and construction, which have been progressing slowly in achieving the recently set goal of achieving a 45% share of renewable energy by 2030.

Earlier today, the European Council based in Brussels announced a series of measures in line with the Renewable Energy Directive, legislated as part of this June, requiring all EU member states to contribute to the EU's collective goal of achieving a 45% share of renewable energy by the end of this decade.

According to the European Council's latest announcement, the new regulations will focus on sectors with "slow" integration of renewable energy, including transportation, industry, and construction. Some sector-specific regulations are mandatory, while others provide optional pathways.

For the transportation sector, member states can choose either a binding target of reducing the greenhouse gas intensity produced by renewable energy consumption by 14.5% before 2030 or ensuring renewable energy accounts for at least 29% of final energy consumption by 2030.

In the industrial sector, member states will increase renewable energy consumption by 1.5% annually, and the contribution of non-biological renewable fuels (RFNBO) "may" decrease by 20%. To achieve this goal, member states' contributions to the EU's binding overall targets need to meet expectations, or the proportion of fossil fuel-based hydrogen consumed by member states should not exceed 23% by 2030 and 20% by 2035.

For the construction, heating, and cooling sectors, new regulations propose an "indicative target" of achieving a renewable energy consumption share of at least 49% in the construction industry by the end of this decade. The announcement indicates that renewable energy consumption for heating and cooling will "gradually increase."

Furthermore, the approval process for renewable energy projects will be expedited through "accelerated approval" of specific deployments to help achieve these targets. Member states will identify areas for accelerated progress, and renewable energy projects will undergo a "streamlined" and "swift granting of permits" process. Renewable energy projects will also be presumed to be of "supreme public interest," limiting reasons for legal opposition to new projects.

The directive also strengthens sustainability standards for biomass energy use while aiming to mitigate "unsustainable" risks associated with bioenergy production. The announcement notes that "member states will ensure the application of cascading principles, focusing on support schemes and duly considering each country's specific circumstances."

Teresa Ribera, the acting Minister for Ecological Transition in Spain, stated that the new regulations are a step forward, allowing the EU to pursue its climate goals in a "fair, cost-effective, and competitive" manner. The original document from the European Council highlighted the surge in energy prices across the entire EU region due to the "larger context" of the Russia-Ukraine conflict and the impacts of the COVID-19 pandemic, underscoring the necessity to enhance energy efficiency and increase the consumption of renewable energy.

"To achieve long-term objectives of an energy system independent of third countries, the EU should focus on accelerating the green transition, ensuring that emission reduction energy policies reduce dependence on imported fossil fuels and promote fair and affordable energy prices for EU citizens and all economic sectors," as stated in the European Council's original document. In March of this year, all member states of the European Parliament voted in favor of this measure except Hungary and Poland, which voted against it, and the Czech Republic and Bulgaria, which abstained.


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