Part of Our EU-27 Green Tax Wiki

Introduction and Background Information

The “Clean Energy for All Europeans” Package symbolizes the final push from the European Union to transition from its economy from the existing energy policy to a climate neutral economy. The package, which was completed in the Spring of 2019, is intended to help the European Union meet its ambitious energy targets by the year 2030, but more importantly to contribute as an important factor in the EU’s long-term strategy to reach carbon neutrality by 2050. The package as a whole is made up of eight individual legislative files, listed below, which will be outlined in this page.

Energy Performance of Buildings Directive
Renewable Energy Directive
Energy Efficiency Directive
Governance of the Energy Union and Climate Action Regulation
Electricity Regulation
Electricity Directive
Regulation on Risk-Preparedness in the Electricity Sector
Regulation on the European Union Agency for the Cooperation of Energy Regulators

Energy Performance of Buildings Directive

This directive emphasizes the importance of energy efficiency in buildings across the EU, due to the high contribution of energy consumption by buildings to the EU’s net carbon consumption. Approximately 40% of the total energy consumption in the EU is through processes related to buildings and their lack of efficiency. Within this directive a set of guidelines and measures to be followed within the building sector are established which have been updated for this package from the initial Energy Performance of Buildings Directive, released in 2010.

Renewable Energy Directive

This directive builds off of, and extends, the targets previously established in the 2009 directive. The EU wide target established in the updated version of this directive is for 32% of total energy usage to be made up of renewables. Under this directive each nation has a tailored goal which was developed taking the national starting point and overall potential for renewables into account to set realistically attainable goals. The directive also emphasizes the importance of biofuels in helping reach previous targets and criteria are outlined to ensure that the continued production and use of biofuels adhere to environmentally friendly and sustainable standards.

Energy Efficiency Directive

The main goal of this directive is for EU member states to meet new energy savings of 0.8% each year of annual final energy consumption for the 2021-2030 period. This target has been established with the option for increase in the year 2023, if such an increase is deemed necessary or attainable. This directive also strengthens rules on energy consumption metering to make personal energy consumption data more accessible and user-friendly for EU consumers.

Governance of the Energy Union and Climate Action Regulation

This regulation outlines strategies of cooperation between EU member states to ensure that state level National Energy and Climate Plans are met. This regulation was established with the recognition that each state can contribute to the EU wide goals in different ways and encourages cooperation between member states to ensure the necessary steps are taken and the transition into the new carbon neutral economy of the European Union happens smoothly and within the existing timeline.

Electricity Regulation and Directive

Under this regulation the current share of electricity produced by renewable energy sources should increase from 25% to an expected 50% by 2030. The regulation also emphasizes the need for the consistent delivery of electricity to consumers even at times when solar and wind energy generation are not favorable. The regulation also underlines that the market for electricity must provide incentives for consumer involvement and contribution to the stability of the EU electrical system. To achieve this, cross-border trade and competition between states will be utilized to benefit society as a whole. It is the goal of the European Union to achieve and maintain the status of a world leader in terms of renewable energy production. If the goals of EU carbon neutrality are to be met by 2050 it is vital for renewable utilization and advancements to continue.

Regulation on Risk-Preparedness in the Electricity Sector

This regulation requires that each EU member state develop risk preparedness plans for all identified electricity crisis scenarios at both a national and regional level. Although each member state is tasked with the development of a nation specific plan, it is encouraged that neighboring member states collaborate with each other to ensure effective plans across the EU.

Regulation on the European Union Agency for the Cooperation of Energy Regulators

The Agency for the Cooperation of Energy Regulators is tasked with coordination, advising and monitoring within the EU energy market. Under the new regulations, which place emphasis on cooperation between states, the ACER has been tasked with new responsibilities to oversee that cross-border actions of energy regulators are without problems for the internal energy market. ACER’s new responsibilities also include ensuring that fragmented cross-border actions will not negatively impact the EU wide energy market and consumers.

Bibliography

https://www.twobirds.com/en/news/articles/2019/global/clean-energy-for-all-europeans---an-overview

https://www.twobirds.com/news/articles/2019/global/eu-wholesale-electricity-market-design-our-one-page-summary

https://ec.europa.eu/energy/topics/energy-strategy/clean-energy-all-europeans_en

https://ec.europa.eu/energy/topics/energy-efficiency/energy-efficient-buildings/energy-performance-buildings-directive_en

https://ec.europa.eu/energy/topics/renewable-energy/renewable-energy-directive/overview_en

https://ec.europa.eu/energy/topics/energy-efficiency/targets-directive-and-rules/energy-efficiency-directive_en

https://ec.europa.eu/energy/topics/energy-strategy/energy-union_en#regulation-on-the-governance-of-the-energy-union-and-climate-action

https://ec.europa.eu/energy/topics/markets-and-consumers/market-legislation/electricity-market-design_en?redir=1