EU parliament votes to up renewables, energy efficiency

  • Market: Biofuels, Electricity, Emissions
  • 13/07/22

The European Parliament's energy committee today voted to increase the share of renewables in the bloc's energy mix to a 45pc target and to increase energy savings, reducing usage by at least 40pc in final energy consumption, both by 2030.

A large majority of the committee adopted legislation revising the 2018 Renewable Energy Directive (RED). This second recast of the directive, known as RED III, classifies soy as a feedstock with high risk of causing indirect land use change and confirms a 16pc cut in transport fuels' greenhouse gas (GHG) intensity compared with current figures. It also sets out details prioritising non-energy uses of biomass ahead of bioenergy.

Other targets were confirmed. The share of advanced biofuels and biogas in the transport sector should rise to at least 0.5pc by 2025 and 2.2pc by 2030 and the share of renewable fuels of non-biological origin (RFNBOs), including hydrogen, should increase to at least 2.6pc in 2028 and at least 5.7pc in 2030 in the transport sector. But the committee rejected a legal report that aimed to set aside forthcoming technical legislation establishing stricter conditions for the definition of renewable hydrogen.

German centre-right lawmaker Markus Pieper, parliament's lead negotiator on RED III, said there was a large majority behind the 45pc renewables target share for final energy consumption by 2030.

"We have adopted many pragmatic solutions that are much more ambitious and innovative than the initial European Commission proposal," he said. The commission in July 2021 called for a 40pc renewables share by 2030. This was revised in May to 45pc in proposals aimed at cutting dependence on Russian fossil fuels.

The committee further agreed on a separate legislative report confirming cross-party support for a 40pc cut in final energy consumption or 42.5pc for primary energy consumption compared to projections made in 2007 for 2030. This equates to a 14.5pc final energy consumption cut by 2030 compared to present figures. German green politician Jutta Paulus welcomed the committee's vote for an EU efficiency target of 14.5 percent as well as national savings commitments.

"Voluntary and low targets will not bring about the changes that are urgently needed," she said, noting further pressure could lead to an end of subsidies for "climate-damaging" fossil gas boilers as an efficiency measure. The committee also agreed to mandate firms to obtain annual energy savings obligations from end-consumers of 2pc in 2024-2030. Public buildings must obtain annual savings of 2pc.

Parliament is scheduled to vote on the renewables and energy efficiency reforms in September, and negotiations will then begin with EU member states over a final legal text. EU energy ministers have already reached a common position on energy efficiency and reform of the renewables directive.


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