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REVISED ENERGY EFFICIENCY DIRECTIVE

Updated: July 2023

In 2016, the European Commission launched a proposal to amend the Energy Efficiency Directive (EED) 2012/27/EU.

The background is that the 2012 Directive established a set of binding measures to help the EU reach its 20% energy efficiency target by 2020. Under the Directive, all EU countries are required to use energy more efficiently at all stages of the energy chain, from production to final consumption. Afterwards, both the European Council and the European Parlament called for more ambitious targets. In 2014, a Council's agreement set a target of at least 27% energy efficiency target for 2030 to be reviewed by 2020 and the Parliament's resolutions have been calling for a target of a 40%.

The new proposed Directive, has an energy efficiency target of "30% by 2030”. According to the Commission, such a target would bring more benefits by 2030 compared to a 27% energy efficiency target: create about 400,000 new jobs, reduce gas imports by 12%, save ˆ70 bn in fossil fuel import bills (cumulatively for 2021-30) and reduce health damage costs by up to 8.3 bn euros per year.

The new proposal streamlines and simplifies the existing provisions and increases coherence with other elements of the Clean Energy for All Europeans legislative proposal package. New package of measures and commitments published on November 2016.
The revised Directive also proposes to extend beyond 2020 the application of the energy savings obligation scheme, which requires utility c
ompanies to help their consumers use 1.5 % less energy each year. It also aims to make the rules on energy metering and billing clearer.

While the Parliament's resolutions have been calling for a 40% binding target to be implemented by setting individual national targets, on Wednesday 17th of January of 2018, the European Parliament opted to back a binding 35% goal for 2030. Nonetheless, an energy savings goal of 1.5% per year under Article 7 of the EED is preserved, while the transport sector is for the first time included in the Parliament's decision.

Lastly, it is worth mentioning that in February 2017, the European Commission published a fact sheet which indicates that according to an assessment of the progress made up till 2014, the EU has already significantly lowered its energy consumption, and has reduced its final energy consumption below the 2020 target.

The final legislative act, Directive (EU) 2018/2002 of the European Parliament and of the Council amending Directive 2012/27/EU, was adopted on the 11th of December 2018. With this revision, the target for the share of renewable energy to 32 % rather than 21,8 %.

On the 30th of March 2023, a provisional agreement was reached between the European Parliament and the Council of the European Union for a further revision of the Renewable Energy Directive, with the target being raised from 32 % to at least 42,5 %, but with the hope for a 45 % target. This revision is now pending formal approval by the co-legislators.

You can find more information about:

- Energy Efficiency Directive (2012/27/EU)

https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32018L2002

- The Briefing of the Revised Energy Efficiency Directive. Download pdf copy here (pdf).

- The proposal amending Directive 2012/27/EU on energy efficiency. Download pdf copy here (pdf).

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

- The European Commission's Fact Sheet. Download copy here (pdf).

- The Package of Clean Energy for all Europeans on the European Commission's website.