• INTRODUCTION

The European Union continues to lead the way in the global transition towards a more sustainable future, as evidenced by the recent adoption of the new Renewables Energy Directive[1] (RED II) by the Council. The new Directive sets new targets and measures for energy efficiency, and tackling energy poverty, putting consumers at the forefront.

Furthermore, emphasis is placed on cross-sectoral objectives, the overall target of using Renewable Energy Sources (RES), as well as the impact of these new regulations.

• THE RENEWED AMBITION: SETTING THE STAGE

Central to the new Directive is the goal to significantly boost the proportion of renewable energy in the EU’s overall energy consumption, namely at 42.5% by 2030. Furthermore, an additional provision allows for an indicative top-up of 2.5%, potentially pushing the overall target to 45%. It is crucial to note that this does not constitute an isolated endeavor; every EU Member State is mandated to contribute towards this collective goal, ensuring a harmonized approach to addressing the renewable energy challenge.

• SECTORAL BREAKDOWN: DEEPENING THE DIVE

Recognizing that a broad-brush approach may not yield optimal results across diverse sectors, the Directive lays down sector-specific targets, a strategic move given the varying pace of renewable integration across sectors.

– Transport: The transport sector, traditionally reliant on fossil fuels, is now presented with a dual-path approach:

States can opt for a 14.5% reduction in greenhouse gas intensity, leveraging renewables by 2030. Alternatively, a more direct route would be to ensure that renewables comprise at least 29% of the final energy consumption in the sector by the same year. A noteworthy mention is the combined sub-target of 5.5% for advanced biofuels and other renewable fuels. Within this, a dedicated 1% is set aside for renewable fuels of non-biological origin by 2030, signaling a move towards diverse renewable sources.

– Industry: Industrial processes, another significant energy consumer, have clear markers set out:
A steady annual increase in renewable energy usage by 1.6% is mandated.
By 2030, a robust 42% of hydrogen used in industry should be sourced from renewable fuels of non-biological origin, rising to 60% by 2035. However, flexibility mechanisms exist, allowing States to discount the contribution of these renewable fuels under specified conditions.

– Buildings, Heating, and Cooling: The Directive boldly sets an indicative target for a 49% renewable energy share in buildings by 2030. Furthermore, renewable targets for heating and cooling are on a progressive trajectory, necessitating binding annual increases at the national level. This phased approach reflects a strategy of gradual adaptation and ease of implementation.

• ADDITIONAL PROVISIONS: BIOENERGY AND PERMIT ACCELERATION

– Bioenergy: The Directive seeks to ensure sustainable bioenergy production, emphasizing stronger sustainability criteria for biomass energy utilization. This is coupled with the cascading principle, tailored with due regard to national contexts.

– Permit Acceleration: In the wake of geopolitical shifts, especially Russia’s invasion of Ukraine, the EU is pressing ahead with expedited permit procedures for renewable projects. Areas designated for renewables acceleration will benefit from streamlined permit-granting processes, and legal challenges to new installations will face stringent scrutiny given the ‘overriding public interest’ in renewable energy deployment.

• LOOKING AHEAD: IMPLEMENTATION AND BROADER CONTEXT

The Directive’s formal adoption sets the clock ticking. It will be published in the EU’s Official Journal and will come into force 20 days thereafter. Member states have a timeline of 18 months post-enactment to integrate it into their national legal frameworks.

It is essential to position this Directive within the broader ‘Fit for 55’ package, which underscores the EU’s resolute commitment to cut down on greenhouse gas emissions by at least 55% by 2030. The revamped Renewables Energy Directive, an enhancement over its predecessor effective since December 2018, is a testament to the EU’s evolving and escalating ambitions in the renewable energy space.

• CONCLUSION

The new Renewables Energy Directive is more than just a policy document; it is a reflection of the EU’s vision for a sustainable future. While the targets are ambitious, they represent a strategic blend of flexibility and firmness, ensuring that the transition to renewables is both aggressive and achievable. As the Directive moves from adoption to implementation, it will be pivotal for Member States to harness the opportunities and navigate the challenges it presents.

Maria-Konstantina Lili-Kokkori
Lawyer
LL.M. in Public International Law, Law School of Athens,
National and Kapodistrian University of Athens
LL.M. Energy and Climate Law, University of Groningen

[1] Directive on Renewable Energy [https://data.consilium.europa.eu/doc/document/PE-36-2023-INIT/en/pdf]