EU Augments Overall Energy Consumption Target to 42.5% by 2030

The European Council recently adopted the new Renewables Energy Directive that will raise the share of renewable energy in the EU’s overall energy consumption to 42.5% by 2030 with an additional 2.5% indicative top up to allow the target of 45%. The directive has been formally adopted. Member states will have 18 months after the entry into force of the directive to transpose it into national legislation.

Stricter Rules For Biomass

The new rules set under the  RFNBO sets the renewable fuels of non-biological origin (mostly renewable hydrogen and hydrogen-based synthetic fuels) in the share of renewable energies supplied to the transport sector. The report indicates that this target sets the minimum requirement of 1% of renewable fuels of non-biological origin (RFNBOs) in the share of renewable energies supplied to the transport sector in 2030. Moreover, the new proposed revised the target for the transport sector that were made binding with the combined sub-target of 5.5% for advanced biofuels (generally derived from non-food-based feedstocks). 

Special Rules for Renewables

In addition, in the RE Power EU plan, that was set on 18 May 2022, the Commission proposed a series of additional targeted amendments to the renewable energy directive to reflect recent changes in the energy landscape. The elements of the proposal were integrated into the directive adopted by the council. The current renewable energy directive has been in force since December 2018 and has been legally binding since June 2021. It sets an EU-level target of 32% share of renewable energy in the total EU energy consumption by 2030 at EU level.

Industry: The report states that, within the industries the new target will set the new target for an increase in the use of renewable energy annually by 1.6%. The report states that the member states agreed that 42% of the hydrogen used in industry should come from renewable fuels of non-biological origin (RFNBOs) by 2030 and 60% by 2035. 

The report suggests that, with the new policy, the member states will have the possibility to discount the contribution of RFNBOs. These discounts will be possible for industry use by 20% under two conditions: 

1. If the member states’ national contribution to the binding overall EU target meets their expected contribution
2. If the share of hydrogen from fossil fuels consumed in the member state is not more 23% in 2030 and 20% in 2035. 

Using Renewables in Buildings: According to the new rules, that is buildings, heating and cooling which has set an indicative target of at least a 49% renewable energy share in buildings in 2030. The report also estimates the renewable targets for heating and cooling to gradually increase, with a binding increase of 0.8% per year at national level until 2026 and 1.1% from 2026 to 2030. The minimum annual average rate applicable to all member states is complemented by additional indicative increases calculated specifically for each member state.

Bioenergy: The directive strengthens the sustainability criteria for the use of biomass for energy, in order to reduce the risk of unsustainable bioenergy production. Member states will ensure that the cascading principle is applied, with a focus on support schemes and with due regard to national specificities.

Faster permits for projects: Permit procedures for renewable energy projects will be accelerated. The intention is to fast- track the deployment of renewable energies in the context of the EU’s REPowerEU plan to become independent from Russian fossil fuels, after Russia’s invasion of Ukraine. Member states will design renewables acceleration areas where renewable energy projects will undergo simplified and fast permit-granting processes. Renewable energy deployment will also be presumed to be of ‘overriding public interest’, which will limit the grounds of legal objections to new installations.

The announcement is a part of the European Green Deal that sets sights on reducing net greenhouse gas emissions by at least 55% by 2030 when compared to 1990.