Renewables legislation negotiation update
Renewables legislation negotiation update
Legislation aimed at setting out how to achieve the binding EU target for a 20% share for energy from renewable sources by 2020, including specific targets for member states.
Flexibility or cooperation between member states
The final 'compromise' produced agreement on the issue of 'flexibility', also known as 'cooperation mechanisms' - by which member states can count investments in renewable energy production in other countries towards their own targets. This would ensure that only real cross-border trading in renewable energy will be counted (the Commission's proposal risked creating a completely virtual market). This will ensure that no national support systems for promoting renewables - notably those that offer a guaranteed price to renewables providers - will be undermined.
Renewables Action Plans
The EP succeeded in strengthening provisions obliging member states to report on the measures they will take, ensuring greater transparency and improved monitoring. In June 2010, member states will have to submit a standardised Renewable Action Plan. If they miss their interim or 2020 targets, they will have to revise these action plans. The Commission can also issue recommendations on unsatisfactory action plans. This will help ensure that member states meet their targets on time.
Priority access for renewables
The EP ITRE committee introduced a proposal under which renewables should get easier access to electricity grids and gas pipelines (biogas and bio-methane were not included in the original Commission text). The Council also agreed to include a provision on 'priority connection' in a recital under which member states can give 'priority connection' to new renewables projects. Thus the precedence is established.
Interim review clause
The Council was urged by certain member states, notably Italy, to introduce a clause to review the overall directive in 2014. The EP and a vast majority of Member States opposed such a review, which could throw open the whole issue of 'flexibility' at a later date and threaten the EU's renewables commitment, thus undermining investment certainty. The final 'compromise' does foresee a review but this will not be tasked with revising either the target or the cooperation mechanisms.
Renewables in transport (including biofuels)
The renewables directive also includes a specific target for the transport sector (10% by 2020). Originally, this target was proposed as being a target for biofuels but it is now a target for renewables in transport (i.e. including electric or hydrogen vehicles or trains that are powered through renewable electricity). These fuels together with waste residues and non-feed/food biofuels will count towards the target and could make up around 4/10s of the 10%. This provision will reduce the proportion of 'first generation' biofuels in the overall target. In addition, a review of the renewables in transport rules in 2014 was agreed at the last trialogue.
Under the compromise, the level of greenhouse gas saving (compared with conventional fuels) required for fuels to be used in the EU would be 35% initially, rising to 50% in 2017 and 60% for new installations.
Based on EP proposals the 'sustainability criteria' proposed by the Commission to limit the environmental damage caused by biofuels were strengthened, notably to include the 'indirect land use' - the indirect impact caused by the diversion of the use of land to produce biofuels. Based on the current agreement, indirect land use would be counted as part of the overall sustainability criteria and the European Commission is to present a proposal to the EP and the Council by the end of 2010 on how this will be implemented.