Breakthrough for ambitious expansion of renewable energies in the EU

New EU Renewable Energy Directive adopted by Member States in Council

Introduction

On 16 June, the member states of the European Union agreed in the Permanent Representatives Committee to a comprehensive reorganisation of the EU-Renewable Energy Directive (RED). The European target for renewable energies will thus be significantly increased from 32% to 45% in 2030. This means a doubling of the share of renewable energies compared to the level achieved in 2021 of just under 22%.

This is a great success for the expansion of renewables: The planned expansion of renewable energies by 2030 will thus be roughly doubled. For the new targets, the EU more than 100 GW of new wind turbines and solar plants are installed every year. For Germany hott that the greatly increased expansion targets for wind and solar energy in 2022 are underpinned by European requirements and become binding. The higher EU-targets also provide the framework for further measures and targets in the EUFor example, the solar strategy of the EU, which roughly triples the PV-capacity to 600 GW by 2030.

Federal Minister of Economics and Climate Protection Robert Habeck: "I am very pleased that the Council has today backed the agreement of 30 March. The revised directive will massively accelerate the expansion of renewables across the European Union. We are raising the renewables target for 2030 from 32% to 45%. In particular, wind and solar energy will be expanded twice as fast as previously envisaged. The new European rules will trigger a boom of investments in renewables and make them legally binding. For us, this means: our massively increased expansion targets for wind and solar energy last year will now be underpinned by European requirements. This will make us less dependent on energy imports. For me, it is very important that it is not only about targets, but also about measures. That is why I have worked to ensure that many of the accelerated approval procedures for renewable energy projects, which we agreed on in the 2022 energy crisis, are now made permanent. Permits are coming faster, planning is being accelerated. I am therefore pleased that the European Union has the strength to make such a success for renewable energies possible."

The agreement also enables the breakthrough of renewable energies in sectors other than electricity in the future. In the heating sector, in transport and in industry, binding targets for the use of renewable energies now apply in every single country. The switch to renewable energies in all sectors will become mandatory at the European level. In Germany alone, for example, industry will have to use hydrogen from renewable energies on a large scale in 2030, around 20-25 TWh. To ensure that the targets are also translated into action, there is a threat of infringement proceedings if a country does not meet its sectoral targets.

In addition, approval procedures will be accelerated significantly and permanently. Among other things, specific deadlines will be set for this: The approval process for new renewable energy projects in certain areas may no longer take longer than 12 months. It is also important that hydrogen from nuclear power will continue not to be credited to EU-targets takes place - the RED only counts renewable energy towards the targets.

There was also an agreement on 16 June on the market ramp-up of e-fuels in aviation in particular, the so-called "ReFuelEU Aviation". The EU introduces a quota for the market ramp-up of e-fuels ("RFNBOs") in the aviation sector, from 1.2% e-fuels in 2030 to 35% e-fuels in 2050. A total of 70% of aviation fuels must then be renewable in 2050. In aviation, e-fuels are particularly important as direct electrification is only possible to a limited extent.

Background to the agreement on the Renewable Energy Directive:

• Raising the overall target
  

  The agreement now reached on an amendment to the EU-Renewables Directive (RED III) provides that the EU-2030 target for renewable energies increases to a total of 45% of total energy consumption (gross energy consumption). 42.5% are to be provided as binding by the member states as before. In this context, the already existing governance regulation ensures that this target is actually achieved. For example, concrete measures are taken if there are indications that the expansion of renewables is not yet sufficient. In addition, there is an indicative additional target of 2.5 percent. This "top-up" is to be achieved through further voluntary contributions by the member states or through pan-European measures. This doubles the EU their ambition in expanding renewable energies. According to initial projections, the German targets are sufficient to meet the new EU-targets. Now we have to do everything we can to achieve our national expansion targets.

• Nationally binding sector targets for 2030 ensure that renewable energies are not only used in the electricity sector.

  The agreement introduces further binding national sectoral targets for the use of renewable energies. If a member state does not comply with these binding sectoral targets, it faces infringement proceedings. The share of renewable energies must grow by 0.8 percentage points each year between 2021-2025 and by 1.1 percentage points each year thereafter. In addition, there is a new indicative buildings target of 49% renewables of heat demand in buildings. In the transport sector, the already binding target increases from 14% to 29%. A new binding sub-target in transport includes a combination of electricity-based renewable fuels (RFNBOs) and advanced biofuels. This sub-target is 5.5%, of which 1% is to be covered by hydrogen and other electricity-based fuels (RFNBOs).

  In the industrial sector, a new mandatory target is set for the use of hydrogen and other electricity-based fuels (RFNBO). 42% of the hydrogen consumed in industry in 2030 must come from renewable energy sources. This corresponds to an increase to about 20 to 25 TWh. By 2035, the share is expected to rise to 60%. Depending on the scenario, this will require around 41 to 83 TWh hydrogen from renewable energy sources is needed, as in parallel industry is using more and more hydrogen. In addition, a new indicative target is that the share of renewable energy in total energy consumption in industry should increase by 1.6% each year.

• Regulations to accelerate the expansion of renewable energies are to be lifted and continued on a permanent basis.

  The regulations for accelerating the approval procedures for the expansion of renewable energies and grids, which are contained in the EU-The provisions of the Emergency Ordinance are largely laid down. For example, renewable energy and grid expansion are in the overriding public interest and time-consuming assessment steps can be dispensed with in the priority areas (no second environmental and species protection assessment at project level if there has already been an assessment at planning level). However, this only applies if appropriate avoidance or compensation measures have been taken, i.e. the level of nature conservation remains high.

• New momentum for cross-border projects

  In addition, there is a new impetus for cross-border RE projects: each Member State has to start at least one cross-border cooperation project; so that joint cooperation is strengthened. Such cooperation projects include, for example, joint offshore projects. With the recently signed German-Danish offshore project "Bornholm Energy Island", Germany is one of the pioneers in the EU.

• Low carbon fuels are not counted towards the RE targets

  On the long-disputed issue of crediting low-carbon fuels (sog. "low-carbon fuels), such as hydrogen based on nuclear power, a compromise was also found. Low carbon fuels are not counted towards the RE targets. Thus, a clear distinction will continue to be made between green H2 and low carbon H2. The German government had strongly advocated this in advance. Member states that have not met their national target contribution to the EU-2030 target, and whose industry uses almost exclusively decarbonised fuels, receive a discount on the hydrogen sub-target in industry and thus somewhat more flexibility.

• Ramp-up of e-fuels in air traffic

  The simultaneous agreement on ReFuelEU Aviation means that e-fuels will be highly encouraged in aviation, where they are urgently needed, as direct electric propulsion is hardly possible here. This now applies to EU-level what has already been law in Germany since 2021: the German e-fuels quota was so far the world's first obligation to use these fuels. EU-wide, from 2030 onwards, at least 1.2 % e-fuels will be used and by 2032 already 2 %. The ratio rises to 35% by 2050. %. Overall, in the target year 2050, at least 70 % renewable aviation fuels are used, i.e. in addition to e-fuels, also biofuels from residual and waste materials.

Source: BMWK-PM of 16.6.2023