Governance of the Energy Union

Governance of the Energy Union

In the Climate and Energy Package to 2020, the Member States had to reach national targets on energy efficiency, renewable energy and greenhouse gas emissions reductions. More importantly the latter two (RES and GHG) are legally binding, meaning that in theory not meeting them could mean that a hefty fine is imposed. These targets notably justified providing public support to the then nascent renewable energy industry.

The Clean Energy for all European Package forgoes national targets, which proved unpopular to national governments when it appears efforts were necessary to reach them and defines a framework for the “Governance of the Energy Union” instead.

The Governance regulation lays out the rules for National Energy and Climate Plans, in which Member States shall define their contribution to the overall EU targets on GHG, RES and EE. The Commission will then verify that all these planned contribution amount to the EU targets and provide recommendations if they do not. A list of benchmark national target will be set up to provide indications. In addition, NECP shall include indicative trajectories for the deployment of renewables in heating and cooling. The regulation notably provides for intermediary points against which progress towards the achievement of the targets should be measured. In case the EU as a whole is not on track, mechanisms to “fill the gap” will be put in action – for instance increasing the ambition of policies on heating and cooling laid out in the REDII or set a financing platform to fund RES projects.

Member States will also have to submit long term strategies that include sectorial trajectories that also include the heating and cooling sector – which for the first time will allow to consider the its role in decarbonisation as a whole, and not broken down across residential, commercial and industry.

EGEC has been active in promoting a robust governance framework, that guarantees the accomplishment of the EU climate and energy objectives, and therefore that allows the development of geothermal energy:

Joint business letter for a robust energy union Governance

Joint RES-HC position ahead of trialogue on governance

A strong governance framework needed to deliver the 2030 targets

Statement for a robust post-2020 Governance framework

For more of EGEC’s position on this topic and on others, go to the Position papers section of the website