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EU parliament adopts revised renewables law

  • Mercados: Biofuels, Biomass, E-fuels, Electricity, Emissions, Hydrogen
  • 12/09/23

The European Parliament today formally adopted the revised renewable energy directive (RED III), which aims to boost the target share of renewables in the bloc's final energy consumption to 42.5pc by 2030, from 30pc.

Other key changes in RED III include faster permitting for renewable energy, facilitating imports of renewables — notably green hydrogen — and boosting innovation. RED III sets an indicative target for EU countries for innovative renewable energy technology to account for at least 5pc of newly installed renewable energy capacity.

"Green hydrogen is practically defined with simpler rules. That's important for imports," German centre-right lawmaker Markus Pieper said. "And biomass is recognised as renewable and still eligible for subsidies. That's something the parliament got through," he said.

Parliament, the European Commission and EU states had reached a "balanced" agreement on the sustainability of bioenergy, EU energy commissioner Kadri Simson said.

"As we phase out fossil fuels, bioenergy will have a role to play, but we agreed to utilise it in a way that minimises the impact on forests," she said. And the new permitting rules are a "game changer", she said.

"Approximately 130GW of renewable projects are waiting to receive a permit in the EU. These projects alone would represent around 20bn m³ of gas savings and 36mn t of coal savings," she said.

The new rules on permitting oblige national authorities to approve new renewable energy installations within 12 months, if located in renewables "go-to areas". Outside these areas, permit granting should not take more than 24 months.

"With this law, wind turbines and large solar plants must be approved within two years, in designated areas within one year. Otherwise, they are automatically approved," German green Michael Bloss said. He views some 80pc of power coming from renewables by 2030.

RED III also sets a 29pc target share of renewables in final consumption of energy in the transport sector or a target 14.5pc reduction of the sector's greenhouse gas (GHG) emissions. This should be reached by using greater shares of advanced biofuels, renewable fuels of non-biological origin (RFNBOs), including hydrogen, and electric vehicles.

The legislation, adopted by a large majority of 470 with 120 against and 40 abstentions, will enter into force later in the year, following formal adoption by EU ministers. It stems from the EU's overarching Fit for 55 package, which aims to reduce the bloc's GHG emissions by at least 55pc by 2030, from 1990 levels.


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