Index 
Texts adopted
Wednesday, 14 September 2022 - Strasbourg
Energy efficiency (recast) ***I
 Adequate minimum wages in the European Union ***I
 Renewable Energy Directive ***I
 Renewed partnership with the Southern Neighbourhood – a new agenda for the Mediterranean
 The new European Bauhaus

Energy efficiency (recast) ***I
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Text
Consolidated text
Amendments adopted by the European Parliament on 14 September 2022 on the proposal for a directive of the European Parliament and of the Council on energy efficiency (recast) (COM(2021)0558 – C9-0330/2021 – 2021/0203(COD))(1)
P9_TA(2022)0315A9-0221/2022

(Ordinary legislative procedure - recast)

[Amendment 1, unless otherwise indicated]

AMENDMENTS BY THE EUROPEAN PARLIAMENT(2)
P9_TA(2022)0315A9-0221/2022
to the Commission proposal
P9_TA(2022)0315A9-0221/2022
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P9_TA(2022)0315A9-0221/2022

Proposal for a
DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL
on energy efficiency (recast)

(Text with EEA relevance)

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union, and in particular Article 194(2) thereof,

Having regard to the proposal from the European Commission,

After transmission of the draft legislative act to the national Parliaments,

Having regard to the opinion of the European Economic and Social Committee(3),

Having regard to the opinion of the Committee of the Regions(4),

Acting in accordance with the ordinary legislative procedure,

Whereas:

(1)  Directive 2012/27/EU of the European Parliament and of the Council(5) has been substantially amended several times(6). Since further amendments are to be made, that Directive should be recast in the interests of clarity.

(2)  With the Climate Target Plan(7), the Commission proposed to raise the Union's ambition by increasing the greenhouse gas emissions (´GHG´) target to at least 55% below 1990 levels by 2030. That is a substantial increase compared to the existing 40% target. The proposal delivered on the commitment made in the Communication on the European Green Deal(8) to put forward a comprehensive plan to increase the Union’s target for 2030 towards 55% in a responsible way. It is also in accordance with the objectives of the 21st Conference of the Parties to the United Nations Framework Convention on Climate Change (the ‘Paris Agreement’) to keep the global temperature increase to well below 2°C and pursue efforts to keep it to 1,5°C.

(3)  In December 2020, the European Council endorsed a binding Union target of a net domestic reduction of at least 55% in greenhouse gas emissions by 2030 compared to 1990.(9) The European Council concluded that the climate ambition needed to be raised in a manner that would spur sustainable economic growth, create jobs, deliver health and environmental benefits for Union citizens, and contribute to the long-term global competitiveness of the Union´s economy by promoting innovation in green technologies.

(4)  To implement those objectives, the European Commission 2021 Work Programme(10) announced a ‘Fit for 55’ package to reduce GHG emissions by at least 55% by 2030, and to achieve a climate-neutral European Union by 2050. This package covers a range of policy areas including energy efficiency, renewable energy, land use, land change and forestry, energy taxation, effort sharing and emissions trading.

(4a)  The ‘Fit for 55’ package should safeguard and create jobs in the Union and enable the Union to become a world leader in the development and uptake of clean technologies in the global energy transition, with particular regard to energy efficiency solutions.

(5)  Projections indicate that, with the full implementation of current policies, GHG emissions reductions by 2030 would be around 45% compared to 1990 levels, when excluding land use emissions and absorptions, and around 47%, when including these. The 2030 Climate Target Plan therefore foresees a set of actions required across all sectors of the economy and revisions of the key legislative instruments to reach that increased ambition.

(6)  Energy efficiency is a key area of action, without which the full decarbonisation of the Union´s economy cannot be achieved(11). The need to capture the cost-effective energy saving opportunities has led to the Union´s current energy efficiency policy. In December 2018, a new 2030 Union headline energy efficiency target of at least 32,5% (compared to projected energy use in 2030) was included as part of the 'Clean Energy for All Europeans package’.

(7)  To achieve the increased climate ambition, the impact assessment accompanying the Climate Target Plan has shown that energy efficiency improvements will need to be significantly raised from the current level of ambition of 32,5%. An increased ambition of the Union’s 2030 energy efficiency target can reduce the energy prices and be crucial in reducing greenhouse gas emissions, accompanied by an increase and uptake of electrification, hydrogen, e-fuels and other relevant technologies necessary for the green transition, including in the transport sector. Even with rapid growth of green electricity generation, energy efficiency can reduce the need of new power generation capacity. Increased energy efficiency is also highly important for the security of energy supply of the Union through lowering its dependence on import of fuels from third countries. Energy efficiency is one of the cleanest and most cost-efficient measures by which to address that dependency.

(8)  The sum of national contributions communicated by Member States in their National Energy and Climate Plans (NECPs) falls short of the Union’s level of ambition of 32,5%. The contributions collectively would lead to a reduction of 29,4% for final energy consumption and 29,7% for primary energy consumption compared to the projections from the 2007 reference scenario for 2030. That would translate in a collective gap of 2,8 percentage points for primary energy consumption and 3,1 percentage points for final energy consumption for the EU 27. As regards the primary and final energy consumption figures for 2020 and the achievement of the Union target, they should be seen in the context of the temporary effects of the COVID-19 pandemic measures taken in 2020 that considerably slowed down economic activity and transport in particular. The reported levels of primary and final energy consumption for 2020 require careful analysis.

(9)  While the energy savings potential remains large in all sectors, there is a particular challenge related to transport, as it is responsible for more than 30% of final energy consumption, and to buildings, since 75% of the Union´s building stock has a poor energy performance. Another increasingly important sector is the information and communications technology (ICT) sector, which is responsible for 5-9% of the world's total electricity use and more than 2% of all emissions. In 2018, data centres accounted for 2,7% of the electricity demand in the EU28.(12) In that context, the Union’s Digital Strategy(13) highlighted the need for highly energy-efficient and sustainable data centres and transparency measures for telecoms operators as regards their environmental footprint. Furthermore, the possible increase in industry’s energy demand that may result from its decarbonisation, particularly for energy intensive processes, should also be taken into account.

(10)  The higher level of ambition requires a stronger promotion of cost-effective energy efficiency measures in all areas of the energy system and in all relevant sectors where activity affects energy demand, such as the transport, water and agriculture sectors. Improving energy efficiency throughout the full energy chain, including energy generation, transmission, distribution and end-use, will benefit the environment, improve air quality and public health, reduce GHG emissions, improve energy security by decreasing the need for energy imports, in particular of fossil fuels, cut energy costs for households and companies, help alleviate energy poverty, and lead to increased competitiveness, more jobs and increased economic activity throughout the economy, thus improving citizens' quality of life. That complies with the Union commitments made in the framework of the Energy Union and global climate agenda established by the 2015 Paris Agreement.

(10a)   Improving the energy performance of various sectors, including transport and housing, has the potential to foster urban regeneration, employment, improvement of buildings and changes in mobility and accessibility patterns. It is therefore essential to promote more efficient, sustainable and affordable options.

(11)  This Directive takes a step forward towards climate neutrality by 2050, under which energy efficiency is to be treated as an energy source in its own right. The energy efficiency first principle  is an overarching principle that  should be taken into account  across all sectors, going beyond the energy system, at all levels, including in the financial sector. Energy efficiency solutions should be considered as the first option in policy, planning and investment decisions, unless that would lead to an increase of greenhouse gas emissions, when setting new rules for the supply side and other policy areas.  While the energy efficiency first principle should be applied without prejudice to other legal obligations, objectives and principles, they should also not hamper its application or exempt from applying the principle.  The Commission should ensure that energy efficiency and demand-side response can compete on equal terms with generation capacity. Energy efficiency improvements need to be made whenever they are more cost-effective than equivalent supply-side solutions.  That should  help exploit the multiple benefits of energy efficiency for the Union, in particular for citizens and businesses.  Implementing energy efficiency improvement measures should also be a priority in alleviating energy poverty.

(12)  Energy efficiency should be recognised as a crucial element and a priority consideration in future investment decisions on the Union's energy infrastructure.  The energy efficiency first principle should be applied taking primarily the system efficiency approach and societal and health perspective into consideration, paying attention to security of supply, energy system integration and the transition to climate neutrality. Consequently, it should help increase the efficiency of individual end-use sectors and of the whole energy system. Application of the principle should also support investments in energy-efficient solutions contributing to environmental objectives listed in Regulation (EU) 2020/852 of the European Parliament and of the Council(14).

(13)  The energy efficiency first principle was defined in the Regulation (EU) 2018/1999 of the European Parliament and of the Council(15) and is at the core of the Energy System Integration Strategy(16). While the principle is based on cost-effectiveness, its application has wider implications from the societal perspective, which should be carefully evaluated through robust cost-benefit assessment methodologies that take into account the multiple benefits of energy efficiency. The Commission prepared dedicated guidelines for the operation and application of the principle, by proposing specific tools and examples of application in various sectors. The Commission has also issued a recommendation to Member States that builds on the requirements of this Directive and calls for specific actions in relation to the application of the principle. Member States should take the utmost account of that recommendation and be guided by it in implementing the energy efficiency principle in practice.

(13a)  The energy efficiency first principle implies adopting a holistic approach, which takes into account the overall efficiency of the integrated energy system, security of supply and cost effectiveness and promotes the most efficient solutions for climate neutrality across the whole value chain, from energy production, network transport to final energy consumption, so that efficiencies are achieved in both primary and final energy consumption. That approach should look at the system performance and dynamic use of energy, where demand-side resources and system flexibility are considered to be efficiency solutions. At the same time, the principle can also be applied at a lower asset level when energy efficiency performance of specific solutions is to be identified and solutions are adapted to favour those with a higher efficiency where they also represent a cost-effective decarbonisation pathway.

(14)  In order to have an impact, the energy efficiency first principle needs to be consistently applied by national, regional, local and sectoral decision makers in all relevant scenarios and policy, planning and major investment decisions – that is to say large-scale investments with a value of more than 50 euro million each or 75 euro million for transport infrastructure projects – affecting energy consumption, transmission, distribution, storage or supply. The proper application of the principle requires using the right cost-benefit analysis methodology, setting enabling conditions for energy efficient solutions and proper monitoring. Cost-benefit analyses should always be based on the most up-to-date information on energy prices and include scenarios for rising prices, such as due to decreasing ETS allowances, in order to provide an incentive to apply energy efficiency measures, and should be systematically developed, carried out and made publicly available. Priority should be given to demand-side solutions where they are more cost-effective than investments in energy supply infrastructure in meeting policy objectives. Demand side flexibility can bring wider economic, environmental and societal benefits to consumers and local communities, and can increase the efficiency of the energy system and decrease the energy costs, for example by reducing system operation costs resulting in lower tariffs for all consumers. Member States should take into account potential benefits from demand side flexibility in applying the energy efficiency first principle and where relevant consider demand response at both centralised and decentralised level, energy storage, and smart solutions as part of their efforts to increase efficiency of the integrated energy system.

(15)  The energy efficiency first principle should always be applied in a proportional way and the requirements of this Directive should not entail overlapping or conflicting obligations on Member States, where the application of the principle is ensured directly by other legislation. This might be the case for the projects of common interest included in the Union list pursuant to Article 3 of Regulation (EU) 2022/869 of the European Parliament and of the Council(17), which introduces the requirements to consider the energy efficiency first principle in the development and assessment for those projects.

(16)  A fair transition towards a climate-neutral Union by 2050 is central to the European Green Deal. Energy poverty is a key concept consolidated in the legislative package entitled ‘Clean Energy for All Europeans’ and designed to facilitate a just energy transition. Pursuant to Regulation (EU) 2018/1999 and Directive (EU) 2019/944 of the European Parliament and of the Council(18), the Commission provided indicative guidance on appropriate indicators for measuring energy poverty and defining what a ‘significant number of households in energy poverty’ is.(19) Directive (EU) 2019/944 and Directive 2009/73/EC of the European Parliament and of the Council(20) requires Member States to take appropriate measures to address energy poverty wherever it is identified, including measures addressing the broader context of poverty. This is particularly relevant in a context of rising energy prices and inflationary pressure, where both short and long-term measures should be implemented to address systemic challenges to the Union's energy system.

(17)  Low and medium income households, vulnerable customers, including final users, people facing or risking energy poverty and people living in social housing, as well as SMEs and micro-enterprises, should benefit from the application of the energy efficiency first principle. Energy efficiency measures should be implemented as a priority to improve the situations of those individuals and households and to alleviate energy poverty and should not encourage any disproportionate increase in housing, mobility or energy costs. A holistic approach in policy making and in implementing policies and measures requires Member States to ensure that other policies and measures have no adverse effect on these individuals and households.

(18)  This Directive is part of a broader policy framework of energy efficiency policies addressing energy efficiency potentials in specific policy areas, including buildings (Directive 2010/31/EC(21)), products (Directive 2009/125/EC, Regulation (EU) 2017/1369 and Regulation (EU) 2020/740(22)) and governance mechanism (Regulation (EU) 2018/1999). Those policies play a very important role in delivering energy savings when products are replaced or buildings constructed or renovated(23).

(19)  Reaching an ambitious energy efficiency target requires barriers to be removed in order to facilitate investment in energy efficiency measures.  The LIFE Clean Energy Transition sub-programme will dedicate funding to support development of the European best practice in energy efficiency policy implementation addressing behavioural, market, and regulatory barriers to energy efficiency.

(20)  The European Council of 23 and 24 October 2014 supported a 27% energy efficiency target for 2030 at Union level, to be reviewed by 2020 having in mind a Union-level target of 30%. In its resolution of 15 December 2015 entitled ‘Towards a European Energy Union’, the European Parliament called on the Commission to assess, in addition, the viability of a 40% energy efficiency target for the same timeframe.

(21)  It is projected that the 32,5% Union´s energy efficiency target for 2030 and the other policy instruments of the existing framework would lead to a reduction in GHG emission of about 45% by 2030.(24) For an increased climate ambition of a 55% decrease of GHG emissions by 2030, the impact assessment of the 2030 Climate Target Plan assessed what level of efforts would be needed in the different policy areas. It concluded that, in relation to the baseline, achieving the GHG emissions target in a cost-optimal way meant that final and primary energy consumption are to decreased by at least 36-37% and 39-41% respectively.

(22)  The Union’s energy efficiency target was initially set and calculated using the 2007 Reference Scenario projections for 2030 as a baseline. The change in the Eurostat energy balance calculation methodology and improvements in subsequent modelling projections call for a change of the baseline. Thus, using the same approach to define the target, that is to say comparing it to the future baseline projections, the ambition of the Union’s 2030 energy efficiency target is set compared to the 2020 Reference Scenario projections for 2030 reflecting national contributions from the NECPs. With that updated baseline, the Union will need to further increase its energy efficiency ambition ▌. The new way of expressing the level of ambition for the Union’s targets does not affect the actual level of efforts needed ▌.

(23)  The methodology for calculation of final and primary energy consumption is aligned with the new Eurostat methodology, but the indicators used for the purpose of this Directive have different scope - that is they exclude ambient heat and include energy consumption in international aviation for the target in final energy consumption. The use of new indicators also implies that any changes in energy consumption of blast furnaces are now only reflected in primary energy consumption.

(24)  The need for the Union to improve its energy efficiency should be expressed in primary and final energy consumption, to be achieved in 2030, indicating additional level of efforts required when compared to the measures in place or planned measures in the national energy and climate plans. The 2020 Reference Scenario projects 864 Mtoe of final energy consumption and 1124 Mtoe of primary energy consumption to be reached in 2030 (excluding ambient heat and including international aviation). An additional reduction of 14,5 % results in 740 Mtoe and 960 Mtoe in 2030 respectively. This corresponds to a reduction of 40 % for final energy consumption and 42,5 % for primary energy consumption respectively when compared to the 2007 Reference Scenario projections for 2030. There are no binding targets at Member State level to achieve the 2020 energy efficiency target. For the 2030 target, national contributions should become binding, and Member States should establish their contributions to the achievement of the Union’s energy efficiency target according to the formula provided in this Directive. Member States should be free to set their national objectives based either on primary or final energy consumption or primary or final energy savings, or on energy intensity.  This Directive amends the way how Member States should express their binding national contributions to the binding Union´s target. Member States’ binding contributions to the Union’s target should be expressed in final and primary energy consumption to ensure consistency and monitoring of progress. A regular evaluation of progress towards the achievement of the Union's 2030 targets is necessary and is provided for in Regulation (EU) 2018/1999.

(25)  The energy efficiency target should be achieved as a result of the cumulative implementation of specific local, regional, national and European measures promoting energy efficiency in different fields. Member States should be required to set national energy efficiency policies and measures. Those policies and measures and the individual efforts of each Member State should be evaluated by the Commission, alongside data on the progress made, to assess the likelihood of achieving the overall Union target and the extent to which the individual efforts are sufficient to meet the common goal.

(26)  The public sector is responsible for around 5 to 10% of total Union’s final energy consumption. Public authorities spend approximately 1.8 trillion euro annually. This represents around 14% of the Union’s gross domestic product.  For that reason the public sector constitutes an important driver to stimulate market transformation towards more efficient products, buildings and services, as well as to trigger behavioural changes in energy consumption by citizens and enterprises. Furthermore, decreasing energy consumption through energy efficiency improvement measures can free up public resources for other purposes. Public bodies at national, regional and local level should fulfil an exemplary role as regards energy efficiency.

(27)  To lead by example, the public sector should set its own decarbonisation and energy efficiency goals. Energy efficiency improvements in the public sector should reflect the efforts required at Union level. ▌An obligation to achieve an annual reduction of the energy consumption in the public sector by at least 2% should ensure that the public sector fulfils its exemplary role. Member States retain full flexibility regarding the choice of energy efficiency improvement measures to achieve a reduction of the final energy consumption. Requiring an annual reduction of final energy consumption has a lower administrative burden than establishing measurement methods for energy savings.

(28)  To fulfil their obligation, Member States should target the final energy consumption of all public services and installations of public bodies. To determine the scope of addressees, Member States should apply the definition of contracting authorities provided in the Directive 2014/24/EU of the European Parliament and of the Council(25). The obligation can be fulfilled by the reduction of final energy consumption in any area of the public sector, including transport, public buildings, healthcare, spatial planning, water management and wastewater treatment, sewage and water purification, waste management, district heating and cooling, energy distribution, supply and storage, public lighting, infrastructure planning. To lower the administrative burden for public bodies, Member States should establish digital platforms or tools to collect the aggregated consumption data from public bodies, make them publicly available, and report the data to the Commission.

(29)  Member States should exercise an exemplary role by ensuring that all energy performance contracts, energy audits and energy management systems are carried out in the public sector in line with European or international standards, or that energy audits are used to a large extent in the intense energy consuming parts of the public sector. Member States should provide clear guidance and procedures for the use of those instruments.

(30)  Public authorities are encouraged to obtain support from entities such as sustainable energy agencies, where applicable established at regional or local level. The organisation of those agencies usually reflect the individual needs of public authorities in a certain region or operating in a certain area of the public sector. Centralised agencies can serve the needs better and work more effectively in other respects, for example, in smaller or centralised Member States or regarding complex or cross-regional aspects such as district heating and cooling. Sustainable energy agencies can serve as one-stop-shops pursuant to Article 21. Those agencies are often responsible for developing local or regional decarbonisation plans, which may also include other decarbonisation measures, such as the exchange of fossil fuels boilers, and to support public authorities in the implementation of energy related policies. Sustainable energy agencies or other entities to assist regional and local authorities may have clear competences, objectives and resources in the field of sustainable energy. Sustainable energy agencies could be encouraged to consider initiatives taken in the framework of the Covenant of Mayors, which brings together local governments voluntarily committed to implementing the Union´s climate and energy objectives, and other existing initiatives for this purpose. The decarbonisation plans should be linked to territorial development plans and take into account the comprehensive assessment which the Member States should carry out.

(31)  Member States should support public bodies in planning and the uptake of energy efficiency improvement measures, including at regional and local levels, by providing financial and technical support and submitting plans addressing the lack of workforce and qualified professionals needed for all stages of the green transition, including craftspeople as well as high-skilled green technology experts, applied scientists and innovators. Member States should support public bodies to take into account the wider benefits beyond energy savings, such as the improved quality of indoor air and healthier indoor environment as well as an improvement of people’s quality of life, in particular for schools, day care centres, nursing homes, sheltered housing and hospitals. Member States should provide guidelines promoting competence building and training opportunities and encourage cooperation amongst public bodies including amongst agencies. For that purpose, Member States could set up national and regional competence centres on complex issues, such as advising local or regional energy agencies on district heating or cooling.

(31a)   In a situation of energy security crisis and a surge in energy prices, Member States should be provided with incentives to frontload investments in energy savings. To that end, Member States that renovate more than 3 % of the total floor area of their buildings in any given year during the 2024-2026 period should be given the possibility to count the surplus towards the annual renovation rate of any of the three following years. A Member State that renovates more than 3 % of the total floor area of its buildings from 1 January 2027 may count the surplus towards the annual renovation rate of the following two years. That possibility should not be used for purposes that are not in line with the general objectives and the level of ambition of this Directive.

(32)  Buildings and transport, alongside industry, are the main energy users and main source of emissions.(26) Buildings are responsible for about 40% of the Union’s total energy consumption and for 36% of its GHG from energy.(27) The Commission Communication entitled Renovation Wave(28) addresses the twin challenge of energy and resource efficiency and affordability in the building sector and aims at doubling the renovation rate. It focusses on the worst performing buildings, energy poverty and on public buildings. Moreover, buildings are crucial to achieving the Union objective of reaching climate neutrality by 2050. Buildings owned by public bodies, and buildings providing services of general interest, such as education (such as day care centres, schools and universities), health (such as hospitals and nursing homes for older people) and social services (such as community centres serving young people, older people and people living in low-income households), or social housing, account for a considerable share of the building stock and have high visibility in public life. It is therefore appropriate to set an annual rate of renovation of buildings owned by public bodies and buildings for social purposes on the territory of a Member State to upgrade their energy performance and be transformed into at least nearly zero-energy buildings or zero-emission buildings. Member States are invited to set a higher renovation rate, where that is cost-effective in the framework of the renovation of their buildings stock in conformity with their Long Term Renovation Strategies or national renovation programmes. That renovation rate should be without prejudice to the obligations with regard to nearly-zero energy buildings (NZEBs) set in Directive 2010/31/EU of the European Parliament and of the Council.(29) Member States should be able to apply less stringent requirements to some buildings, such as buildings with special architectural or historical merit. During the next review of Directive 2010/31/EU, the Commission should assess the progress Member States achieved regarding the renovation of public bodies’ buildings. The Commission should consider submitting a legislative proposal to revise the renovation rate, while taking into account the progress achieved by the Member States, substantial economic or technical developments, or where needed, the Union´s commitments for decarbonisation and zero pollution. The obligation to renovate public bodies’ buildings in this Directive complements that Directive, which requires Member States to ensure that when existing buildings undergo major renovation their energy performance is upgraded so that they meet the requirements on NZEBs. Additional guidance should be provided by the Commission and the Member States on the deep renovation of buildings with historic value.

(33)  To set the rate of renovations, Member States need to have an overview of the buildings that do not reach the NZEB level. Therefore, Member States should publish and keep updated an inventory of public buildings including social housing as part of an overall database of energy performance certificates. That inventory should enable also private actors including energy service companies (ESCOs) to propose renovation solutions and they can be aggregated by the Union Building Stock Observatory.

(34)  In 2020, more than half of the world’s population lives in urban areas. That figure is expected to reach 68% by 2050(30). In addition, half of the urban infrastructures by 2050 are still to be built(31). Cities and metropolitan areas are centres of economic activity, knowledge generation, innovation and new technologies. Cities influence the quality of life of the citizens who live or work in them. Member States should support municipalities technically and financially.  A number of municipalities and other public bodies in the Member States have already put into place integrated approaches to energy saving and energy supply and sustainable mobility, for example via sustainable energy action plans or sustainable urban mobility plans, such as those developed under the Covenant of Mayors initiative, and integrated urban approaches which go beyond individual interventions in buildings or transport modes. Further efforts are needed in the area of improving the energy efficiency of urban mobility, for both passenger and freight transport, as it uses around 40 % of all road transport energy. Regulation ... [revised TEN-T Regulation - COD 2021/420] should contribute significantly to addressing the energy efficiency of urban transport with a consistent, integrated and multimodal approach via the requirement to adopt sustainable urban mobility plans (SUMP) as defined in that Regulation. Moreover, in order to reach the goals of this Directive, Member States should strongly encourage as many local authorities as possible to adopt SUMPs in order to contribute to the reduction of energy consumption and avoid unnecessary transport where possible, in line with the energy efficiency first principle.

(35)  With regard to the purchase of certain products and services and the purchase and rent of buildings, contracting authorities and contracting entities which conclude public works, supply or service contracts should lead by example and make energy-efficient purchasing decisions and apply the energy efficiency first principle, including for those public contracts and concessions for which no specific requirements are provided for in Annex IV. This should apply to the administrative departments whose competence extends over the whole territory of a Member State. When in a given Member State and for a given competence no such relevant administrative department exists that covers the whole territory, the obligation should apply to those administrative departments whose competences cover collectively the whole territory. The provisions of the Union’s public procurement directives should not however be affected.  Member States should remove barriers to joint procurement within a Member State or across borders if this can reduce the costs, enhance the benefits of the internal market by creating business opportunities for suppliers and energy service providers.

(36)  All public entities investing public resources through procurement should lead by example when awarding contracts and concessions by choosing products, services works and buildings with the highest energy efficiency performance, also in relation to those procurements that are not subject to specific requirements under Directive 2009/30/EC. In that context, all award procedures for public contracts and concessions with the value above the thresholds set out in Articles 6 and 7 of Directive 2014/23/EU of the European Parliament and of the Council(32), Article 2(1) of Directive 2014/24/EU of the European Parliament and of the Council(33), and Articles 3 and 4 of Directive 2014/25/EU of the European Parliament and of the Council, need to take into account the energy efficiency performance of the products, buildings and services set by Union or national law, by considering as priority the energy efficiency first principle in their procurement procedures.

(37)  It is also important that Member States monitor how the energy efficiency requirements are taken into account by contracting authorities and contracting entities in the procurement of products, buildings, works and services by ensuring that information about the impact on energy efficiency of those winning tenders above the thresholds referred to in the procurement directives are made publically available. That allows stakeholders and citizens to assess the role of public sector towards ensuring energy efficiency first in public procurement in a transparent manner.

(38)  The European Green Deal recognises the role of circular economy in contributing to overall Union decarbonisation objectives. The public sector should contribute to those objectives by using their purchasing power to, where appropriate, choose environmentally friendly products, buildings, services and works via available tools for green public procurement, and thus making an important contribution to reduce energy consumption and environmental impacts.

(39)  It is important that Member States provide the necessary support to public bodies in the uptake of energy efficiency requirements in public procurement and ▌use of green public procurement, by providing necessary guidelines and methodologies on carrying out the assessment of life-cycle costs, and environment impacts and costs. Well-designed tools, in particular digital tools, are expected to facilitate the procurement procedures and reduce the administrative costs especially in smaller Member States that may not have sufficient capacity to prepare tenders. In this regard, Member States should actively promote the use of digital tools and cooperation amongst contracting authorities including across borders for the purpose of exchanging best practice.

(40)  Given that buildings are responsible for greenhouse gas emissions before and after their operational lifetime, Member States should also consider the whole life-cycle of carbon emissions of buildings. That takes place in the context of efforts to increase attention to whole life cycle performance, circular economy aspects and environmental impacts, as part of the exemplary role of the public sector. Public procurement can thus serve as an opportunity to address the embodied carbon in buildings over their life-cycle. In this regard, contracting authorities are important actors that should take action as part of procurement procedures by purchasing new buildings that address global warming potential over the full life-cycle.

(41)  The global warming potential over the full life-cycle measures the greenhouse gas emissions associated with the building at different stages along its life cycle. It therefore measures the building’s overall contribution to emissions that lead to climate change. That is sometimes referred to as a carbon footprint assessment or the whole life carbon measurement. It brings together carbon emissions embodied in building materials with direct and indirect carbon emissions from use stage. Buildings are a significant material bank, being repositories for carbon intensive resources over many decades, and so it is important to explore designs that facilitate future reuse and recycling at the end of the operational life in line with the new circular economy action plan. Member States should promote circularity, durability, and adaptability of building materials, in order to address the sustainability performance of construction products while setting a competitive and attractive cost, by using all the available financial instruments to provide incentives for the use of circular materials.

(42)  The global warming potential is expressed as a numeric indicator in kgCO2e/m² (of useful internal floor area) for each life-cycle stage averaged for one year of a reference study period of 50 years. The data selection, scenario definition and calculations are carried out in accordance with standard EN 15978. The scope of building elements and technical equipment are set out in indicator 1,2 of the Level(s) common Union framework. Where a national calculation tool exists, or is required for making disclosures or for obtaining building permits, it should be possible to use that national tool to provide the required information. It should be possible to use other calculation tools, if they fulfil the minimum criteria laid down by the Level(s) common Union framework.

(43)  Directive 2010/75/EU of the European Parliament and of the Council(34) governs installations that contribute to energy production or use energy for production purposes, and information on the energy used in or generated by the installation must be included in applications for integrated permits (Article 12(1)(b)). Moreover, that Directive specifies in Article 11 of that Directive that efficient use of energy is one of the general principles governing the basic obligations of the operator and one of the criteria for determining best available techniques pursuant to Annex III of the Directive 2010/75/EU.  The operational efficiency of energy systems at any given moment is influenced by the ability to feed power generated from different sources — with different degrees of inertia and start-up times — into the grid smoothly and flexibly. Improving efficiency will enable better use to be made of renewable energy.

(44)  Improvement in energy efficiency can contribute to higher economic output. Member States and the Union should aim to decrease energy consumption regardless of levels of economic growth.

(45)  The energy savings obligation established by this Directive should be increased and should also apply after 2030. That ensures stability for investors and thus encourage long-term investments and long-term energy efficiency measures, such as the deep renovation of buildings with the long-term objective of facilitating the cost effective transformation of existing buildings into NZEBs. Deep renovations that improve the energy performance of a building by at least 60 % are currently carried out annually in only 0,2 % of the building stock, and energy efficiency is significantly improved in only a fifth of the cases. The energy savings obligation has an important role in the creation of local growth, jobs, competitiveness and alleviating energy poverty. It should ensure that the Union can achieve its energy and climate objectives by creating further opportunities and to break the link between energy consumption and growth. Cooperation with the private sector is important to assess the conditions on which private investment for energy efficiency projects can be unlocked and to develop new revenue models for innovation in the field of energy efficiency.

(46)  Energy efficiency improvement measures also have a positive impact on air quality, as more energy efficient buildings contribute to reducing the demand for heating fuels, including solid heating fuels. Energy efficiency measures therefore contribute to improving indoor and outdoor air quality and help achieve, in a cost effective manner, the objectives of the Union's air quality policy, as established in particular by Directive (EU) 2016/2284 of the European Parliament and of the Council(35).

(47)  Member States are required to achieve cumulative end-use energy savings for the entire obligation period  up  to 2030, equivalent to new annual savings of at least 0,8% of final energy consumption  up to 31 December 2023 and of at least % as of 1 January 2024. That requirement could be met by new policy measures that are adopted during the obligation period from 1 January 2021 to 31 December 2030 or by new individual actions as a result of policy measures adopted during or before the previous period, provided that the individual actions that trigger energy savings are introduced during the following  period. To that end, Member States should be able to make use of an energy efficiency obligation scheme, alternative policy measures, or both.

(48)  For the period 2021 to 31 December 2023,  Cyprus and Malta should be required to achieve cumulative end-use energy savings equivalent to new savings of 0,24 % of final energy consumption  only  for the period 2021 to 2030.  That individual savings rate should cease to apply from 1 January 2024.

(49)  Where using an obligation scheme, Member States should designate obligated parties among transmission system operators, distribution system operators, energy distributors, retail energy sales companies and transport fuel distributors or retailers on the basis of objective and non-discriminatory criteria. The designation or exemption from designation of certain categories of such distributors or retailers should not be understood to be incompatible with the principle of non-discrimination. Member States are therefore able to choose whether such transmission system operators, distribution system operators, distributors or retailers or only certain categories thereof are designated as obligated parties. To empower and protect vulnerable customers and low-income households, people affected by energy poverty and people living in social housing, and to implement policy measures as a priority among those people, Member States can require obligated parties to achieve energy savings among vulnerable customers, people affected by energy poverty and people living in social housing. For that purpose, Member States can also establish energy cost reduction targets. Obligated parties could achieve these targets by promoting the installation of measures that lead to energy savings and financial savings on energy bills, such as the installation of insulation and heating measures, and by supporting energy savings initiatives by renewable energy communities and citizen energy communitiesThose measures can be particularly beneficial to vulnerable customers, people affected by energy poverty and people living in social housing, as those people tend to live in worse-performing buildings and thus stand to benefit the most from energy efficiency improvements.

(50)  When designing policy measures to fulfil the energy savings obligation, Member States should respect the climate and environmental standards and priorities of the Union and comply with the principle of ‘do no significant harm’ within the meaning of Regulation (EU) 2020/852(36). Member States should not promote activities that are not environmentally sustainable such as use of ▌fossil fuels. The energy savings obligation aims at strengthening the response to climate change by promoting incentives to Member States to implement a sustainable and clean policy mix, which is resilient, and mitigates climate change. Therefore, energy savings from policy measures regarding the use of direct fossil fuel combustion may be eligible energy savings under energy savings obligation under certain conditions and for a certain period following the transposition of this Directive in accordance with Annex V. It will allow aligning the energy savings obligation with the objectives of the European Green Deal, the Climate Target Plan, the Renovation Wave Strategy, and mirror the need for action identified by the IEA in its net zero report(37). The restriction aims at encouraging Member States to spend public money into future-proof, sustainable technologies only. It is important that Member States provide a clear policy framework and investment certainty to market actors. The implementation of the calculation methodology under energy savings obligation should allow all market actors to adapt their technologies in a reasonable timeframe. Where Member States support the uptake of efficient fossil fuel technologies or early replacement of such technology, for example through subsidy schemes or energy efficiency obligation schemes, energy savings may not be eligible anymore under the energy savings obligation. While energy savings resulting, for example, from the promotion of natural gas-based cogeneration would not be eligible, the restriction would not apply for indirect fossil fuel usage, for example where the electricity production includes fossil fuel generation. Policy measures targeting behavioural changes to reduce the consumption of fossil fuel, for example through information campaigns, eco-driving, should remain eligible. The energy savings from policy measures targeting building renovations may contain measures such as a replacement of fossil fuel heating systems together with building fabric improvements, which should be limited to those technologies that allow achieving the required energy savings according to the national building codes established in a Member State. Nevertheless, Member States should promote upgrading heating systems as part of deep renovations in line with the long-term objective of carbon neutrality, i.e. reducing the heating demand and covering the remaining heating demand with a carbon-free energy source. When accounting for the savings needed to achieve a share of the energy savings obligation among people affected by energy poverty, Member States may take into account their climatic conditions.

(51)  Member States' energy efficiency improvement measures in transport are eligible to be taken into account for achieving their end-use energy savings obligation. Such measures include policies that are, inter alia, dedicated to promoting more efficient vehicles, including battery powered modes of transport, a modal shift to cycling, walking and collective transport, or mobility and urban planning that reduces demand for transport. In addition, schemes which accelerate the uptake of new, more efficient vehicles or policies fostering a shift to fuels with reduced levels of greenhouse gas emissions, except policy measures regarding the use of direct fossil fuel combustion, that reduce energy use per kilometre are also capable of being eligible, subject to compliance with the rules on materiality and additionality set out in Annex V to this Directive.  Policy measures promoting the uptake of new fossil fuel vehicles should not qualify as eligible measures under the energy savings obligation.

(52)  Measures taken by Member States pursuant to Regulation (EU) 2018/842 of the European Parliament and of the Council(38) and which result in verifiable, and measurable or estimable, energy efficiency improvements can be considered to be a cost-effective way for Member States to fulfil their energy-saving obligation under this Directive.

(53)  As an alternative to requiring obligated parties to achieve the amount of cumulative end-use energy savings required under Article 8(1) of this Directive, it should be possible for Member States, in their obligation schemes, to permit or require obligated parties to contribute to an Energy Efficiency National Fund, which could be used to implement policy measures as a priority among vulnerable customers, people affected by energy poverty and people living in social housing.

(54)  Member States and obligated parties should make use of all available means and technologies  , except regarding the use of direct fossil fuel combustion technologies,  to achieve the cumulative end-use energy savings required, including by promoting smart and sustainable technologies in efficient district heating and cooling systems, efficient heating and cooling infrastructure, efficient and smart buildings, electrical vehicles and industries and energy audits or equivalent management systems, provided that the energy savings claimed comply with the requirements laid down in Article 8 and Annex V to this Directive. Member States should aim for a high degree of flexibility in the design and implementation of alternative policy measures.  Member States should encourage actions resulting in energy savings over the whole lifecycle.

(55)  Long-term energy efficiency measures will continue to deliver energy savings after 2020 but, in order to contribute to the Union's 2030 energy efficiency target, those measures should deliver new savings after 2020. On the other hand, energy savings achieved after 31 December 2020 should not count towards the cumulative end-use energy savings required for the period from 1 January 2014 to 31 December 2020.

(56)  New savings should be additional to ‘business as usual’, so that savings that would have occurred in any event should not count towards the achievement of the energy savings requirements. In order to calculate the impact of the measures introduced, only net savings, measured as the change of energy consumption that is directly attributable to the energy efficiency measure in question implemented for the purpose of Article 8 of this Directive, should be counted. To calculate net savings, Member States should establish a baseline scenario of how the situation would evolve in the absence of the measure in question. The policy measure in question should be evaluated against that baseline. Member States should take into account minimum requirements provided by the relevant legislative framework at Union level, and should take into account the fact that other policy measures may be carried out in the same time frame which may also have an impact on the amount of energy savings, so that not all changes observed since the introduction of a particular policy measure being evaluated can be attributed to that policy measure alone. The actions of the obligated, participating or entrusted party should in fact contribute to the achievement of the energy savings claimed in order to ensure the fulfilment of the materiality requirement.

(57)  It is important to consider, where relevant, all steps in the energy chain in the calculation of energy savings in order to increase the energy savings potential in the transmission and distribution of electricity.  Studies carried out and consultation of stakeholders have revealed a significant potential. However, the physical and economic conditions are quite different among Member States, and often within several Member States, and there is a large number system operators. Those circumstances point to a decentralized approach, pursuant to the subsidiarity principle. National Regulatory Authorities have the required knowledge, legal competences and the administrative capacity to promote the development of an energy efficient electricity grid. Entities such as the European Network of Transmission System Operators for Electricity (ENTSO-E) and the European Entity for Distribution System Operators (the EU DSO Entity) can also provide useful contributions and should support their members in the uptake of energy efficiency measures.

(58)  Similar considerations apply for the very large number of natural gas system operators. The role of natural gas and the rate of supply and coverage of the territory is highly variable among Member States. In those cases National Regulatory Authorities are best placed to monitor and steer the system evolution towards an increased efficiency, and entities such as European Network of Transmission System Operators for Gas (ENTSOG) can provide useful contributions and should support their members in the uptake of energy efficiency measures.

(58a)  ESCOs are important to develop, design, build, and arrange financing for projects that save energy, reduce energy costs, and decrease operations and maintenance costs in sectors such as buildings, industry and transport.

(59)  Consideration of the water-energy nexus is particularly important to address the interdependent energy and water use and the increasing pressure on both resources. The effective management of water can make a significant contribution to energy savings yielding not only climate benefits, but also economic and social benefits. The water and wastewater sectors account for 3,5% of electricity use in the Union and that share is expected to rise. At the same time, water leaks account for 24% of total water consumed in the Union and the energy sector is the largest consumer of water, accounting for 44% of consumption. The potential for energy savings through the use of smart technologies and processes across all industrial, residential and commercial water cycles and applications should be fully explored and applied whenever cost-effective and the energy efficiency first principle should be considered. In addition, advanced irrigation technologies, rainwater harvesting and water reuse technologies could substantially reduce water consumption in agriculture, buildings and industry and the energy used for treating and transporting it.

(60)  In accordance with Article 9 of the Treaty, the Union's energy efficiency policies should be inclusive and should therefore ensure equal access  to energy efficiency measures for all consumers affected by energy poverty. Improvements in energy efficiency should be implemented as a priority among vulnerable customers and final users, people affected by energy poverty, and ▌among low-income, medium-income households and people living in social housing, elderly people and those living in rural and remote areas and in the outermost regions. In this context, specific attention should be paid to particular groups which are more at risk of being affected by energy poverty or more susceptible to the adverse impacts of energy poverty, such as women, persons with disabilities, elderly people, children, and persons with a minority racial or ethnic background.  Member States can require obligated parties to include social aims in energy-saving measures in relation to energy poverty and this possibility  had already been extended to alternative policy measures and Energy Efficiency National Funds. That should be transformed into an obligation to protect and empower vulnerable customers and final users and to alleviate energy poverty, while allowing Member States to retain full flexibility with regard to the type of policy measure, their size, scope and content. If an energy efficiency obligation scheme does not permit measures relating to individual energy consumers, the Member State may take measures to alleviate energy poverty by means of alternative policy measures alone.  Within its policy mix, Member States should ensure that other policy measures do not have an adverse effect on vulnerable customers, final users, people affected by energy poverty and, where applicable, people living in social housing. Member States should make best possible use of public funding investments into energy efficiency improvement measures, including funding and financial facilities established at Union level.

(61)  This Directive refers to the concept of vulnerable customers, which Member States are to establish pursuant to Directive (EU) 2019/944. In addition, pursuant to Directive 2012/27/EU, the notion of ‘final users’ alongside the notion of ‘final customer’ clarifies that the rights to billing and consumption information also apply to consumers without individual or direct contracts with the supplier of energy used for collective heating, cooling or domestic hot water production systems in multi-occupant buildings. The concept of vulnerable customers does not necessarily ensure the targeting of final users. Therefore, in order to ensure that the measures set out in this Directive reach all individuals and households in a situation of vulnerability, Member States should include not only customers, in its strict sense, but also final users, in establishing their definition of vulnerable customers.

(62)  Around 34 million households in the Union were unable to keep their home adequately warm in 2019(39). The European Green Deal prioritises the social dimension of the transition by committing to the principle that `no one is left behind´. The green transition, including the clean transition, affects women and men differently and may have a particular impact on some disadvantaged groups including people with disabilities.  Energy efficiency measures must therefore be central to any cost-effective strategy to address energy poverty and consumer vulnerability and are complementary to social security policies at Member State level. To ensure that energy efficiency measures reduce energy poverty for tenants sustainably, the cost-effectiveness of such measures, as well as their affordability to property owners and tenants, should be taken into account, and adequate financial and technical support for such measures should be guaranteed at Member State level.  Member States should support the local and regional level in identifying and alleviating energy poverty. This includes identifying and addressing the specific needs of particular groups at risk of energy poverty or more susceptible to its effects. To protect people affected by energy poverty, vulnerable customers and, where applicable, people living in social housing, Member States should encourage obligated parties to carry out actions such as renovation of buildings, including social housing, replacement of appliances, financial support and incentives for energy efficiency improvement measures in conformity with national financing and support schemes, or energy audits. Member States should require obligated parties to work with regional and local authorities, and engage with social services and civil society organisations (such as consumer organisations, social NGOs and housing associations) to set up an engagement platform dedicated to the alleviation of energy poverty. The Union's building stock needs, in the long term, to be converted to NZEBs in accordance with the objectives of the Paris Agreement. Current building renovation rates are insufficient and buildings occupied by citizens on low incomes who are affected by energy poverty are the hardest to reach. The measures laid down in this Directive with regard to energy savings obligations, energy efficiency obligation schemes and alternative policy measures are therefore of particular importance.

(63)  To tap the energy savings potential in certain market segments where energy audits are generally not offered commercially (such as small and medium-sized enterprises (SMEs)), Member States should develop programmes to encourage and support SMEs to undergo energy audits and to implement recommendations from the energy audits, for example by setting up support schemes, such as energy audit centres for SMEs and microenterprises to cover costs of an energy audit. Such centres could be based in universities, with a central database for collecting and communicating audit results. Energy audits should be mandatory and regular for large enterprises, as energy savings can be significant. Energy audits should take into account relevant European or international standards, such as EN ISO 50001 (Energy Management Systems), EN ISO 50005 (Energy Management Systems), EN 16247-1 (Energy Audits), ISO 50002 (Energy Audits) or, if including an energy audit, EN ISO 14000 (Environmental Management Systems) and thus be also in line with the provisions of Annex VI to this Directive as such provisions do not go beyond the requirements of these relevant standards. A specific European standard on energy audits is currently under development. Energy audits may be carried out on a stand-alone basis or be part of a broader environmental management system or an energy performance contract. In all such cases those systems should comply with the minimum requirements of Annex VI. In addition, specific mechanisms and schemes established to monitor emissions and fuel consumption by certain transport operators, for example under EU law the EU ETS, may be considered compatible with energy audits, including in energy management systems, if they comply with the minimum requirements set out in Annex VI.

(63a)   Member States should ensure the mandatory nature of implementing the recommendations of energy audits by enterprises. The absence of the obligation to implement audit recommendations is a major reason why those recommendations are not adequately taken into account by enterprises.

(64)  The enterprise’s average consumption should be the criterion to define the application of energy management systems and of energy audits in order to increase the sensitivity of those mechanisms in identifying relevant opportunities for cost-effective energy savings. Enterprises that are below the consumption thresholds defined for energy management systems and energy audits should be encouraged and be provided technical support to undergo energy audits and to implement the recommendations resulting from those audits.

(65)  Where energy audits are carried out by in-house experts, the necessary independence would require these experts not to be directly engaged in the activity audited.

(66)  The information and communications technology (ICT) sector another important sector which receives increasing attention. In 2018 the energy consumption of data centres in the EU was 76,8 TWh. This is expected to rise to 98.5 TWh by 2030, a 28% increase. This increase in absolute terms can as well be seen in relative terms: within the EU, data centres accounted for 2,7% of electricity demand in 2018 and will reach 3,21% by 2030 if development continues on the current trajectory(40). Europe’s Digital Strategy already highlighted the need for highly energy-efficient and sustainable data centres and calls for transparency measures for telecommunication operators on their environmental footprint. To promote sustainable development in the ICT sector, particularly of data centres, Member States should collect and publish data, which is relevant for the energy performance, water footprint and demand-side flexibility of data centres, on the basis of a common Union template. Member States should collect and publish data only about data centres with an installed IT power demand of at least 100 kW, for which appropriate design or efficiency interventions, for new or existing installations respectively, can result in a considerable reduction of the energy and water consumption, an increase in systems’ efficiency promoting decarbonisation of the grid or in the reuse of waste heat in nearby facilities and heat networks. Data centre sustainability indicators should be established on the basis of that data collected, taking also into account already existing initiatives in the sector. With a view to facilitating disclosure, the Commission should prepare guidelines on monitoring and publishing information about the energy performance of data centres, after carrying out consultations with relevant stakeholders and considering existing standardised metrics. It is imperative to have a harmonised approach across Member States, in order to avoid different reporting schemes and key performance indicators between Member States.

(67)  The data centre sustainability indicators should be used to measure four basic dimensions of a sustainable data centre, namely how efficiently it uses energy, how much of that energy comes from renewable energy sources, the reuse of any waste heat that it produces, the effectiveness of cooling, the effectiveness of carbon usage and the usage of freshwater. The data centre sustainability indicators should raise awareness amongst network operators, data centre owners and operators, manufactures of equipment, developers of software and services, users of data centre services at all levels as well as entities and organisations that deploy, use or procure cloud and data centre services. It should also give confidence about the actual improvements following efforts and measures to increase the sustainability in new or existing data centres. Finally, it should be used as a basis for transparent and evidence-based planning and decision-making. Use of the data centre sustainability indicators should be mandatory for Member States. Use of the data centre sustainability indicator should be optional for Member States. The Commission should assess the efficiency of data centres based on the information communicated by Member States.

(67a)   The Commission should, in line with Regulation (EU) 2021/1119 of the European Parliament and of the Council(41), establish sector-specific energy efficiency partnerships by bringing together key stakeholders, including NGOs and social partners, in sectors such as ICT, transport, finance and buildings in an inclusive and representative manner.

(68)  Lower consumer spending on energy should be achieved by assisting consumers in reducing their energy use by reducing the energy needs of buildings and improvements in the efficiency of appliances, which should be combined with the availability of low-energy transport modes integrated with public transport, shared mobility and cycling.  Member States should also consider improving connectivity in rural and remote areas.

(69)  It is crucial to raise the awareness of all Union citizens about the benefits of increased energy efficiency and to provide them with accurate information on the ways in which it can be achieved.  Citizens of all ages should also be involved in the energy transition via the European Climate Pact and the Conference on the Future of Europe.  Increased energy efficiency is also highly important for the security of energy supply of the Union through lowering its dependence on import of fuels from third countries.

(70)  The costs and benefits of all energy efficiency measures taken, including pay-back periods, should be made fully transparent to consumers.

(71)  When implementing this Directive and taking other measures in the field of energy efficiency, Member States should pay particular attention to synergies between energy efficiency measures and the efficient use of natural resources in line with the principles of the circular economy.

(72)  Taking advantage of new business models and technologies, Member States should endeavour to promote and facilitate the uptake of energy efficiency measures, including through innovative energy services for large and small customers.

(73)  It is necessary to provide for frequent and enhanced feedback on energy consumption where technically feasible and cost-efficient in view of the measurement devices in place. This Directive clarifies that whether sub-metering is cost-efficient or not depends on whether the related costs are proportionate to the potential energy savings. The assessment of whether sub-metering is cost-efficient may take into account the effect of other concrete, planned measures in a given building, such as any forthcoming renovation. Member States should ensure that, in so far as it is technically possible, financially reasonable, and proportionate to the potential energy savings, for natural gas, heating, cooling and domestic hot water, final customers are provided with competitively priced individual meters that accurately reflect the final customer's actual energy consumption and that provide information on actual time of use.

(74)  This Directive also clarifies that rights relating to billing, and information about billing or consumption should apply to consumers of heating, cooling or domestic hot water supplied from a central source even where they have no direct, individual contractual relationship with an energy supplier.

(75)  In order to achieve the transparency of accounting for individual consumption of thermal energy and thereby facilitate the implementation of sub-metering, Member States should ensure they have in place transparent, publicly available national rules on the allocation of the cost of heating, cooling and domestic hot water consumption in multi-apartment and multi-purpose buildings. In addition to transparency, Member States could consider taking measures to strengthen competition in the provision of sub-metering services and thereby help ensure that any costs borne by the final users are reasonable.

(76)  Newly installed heat meters and heat cost allocators should be remotely readable to ensure cost-effective, frequent provision of consumption information and to be able to deliver information such as detailed temperatures and phase load. All data should be made easily available in real time and shareable for the final energy customer. Meters and sub-meters should display energy consumption in an accessible and user-friendly form. The  provisions of  this Directive relating to metering for heating, cooling and domestic hot water; sub-metering and cost allocation for heating, cooling and domestic hot water; remote reading requirement; billing and consumption information for heating and cooling and domestic hot water; cost of access to metering and billing and consumption information for heating, cooling and domestic hot water; and the minimum requirements for billing and consumption information for heating, cooling and domestic hot water are intended to apply only to heating, cooling and domestic hot water supplied from a central source. Member States are free to decide whether walk-by or drive-by technologies are to be considered remotely readable or not. Remotely readable devices do not require access to individual apartments or units to be read.

(77)  Member States should take into account the fact that the successful implementation of new technologies for measuring energy consumption requires enhanced investment in education and skills for both users and energy suppliers.

(78)  Billing information and annual statements are an important means by which customers are informed of their energy consumption. Data on consumption and costs can also convey other information that helps consumers to compare their current deal with other offers and to make use of complaint management and alternative dispute resolution mechanisms. However, considering that bill-related disputes are a common source of consumer complaints and a factor which contributes to persistently low levels of consumer satisfaction and engagement with their energy providers, it is necessary to make bills simpler, clearer and easier to understand, while ensuring that separate instruments, such as billing information, information tools and annual statements, provide all the necessary information to enable consumers to regulate their energy consumption, compare offers and switch suppliers.

(79)  When designing energy efficiency improvement measures, Member States should take due account of the need to ensure the correct functioning of the internal market and the coherent implementation of the acquis, in accordance with the TFEU.

(80)  High-efficiency cogeneration and efficient district heating and cooling have significant potential for saving primary energy in the Union. Member States should carry out a comprehensive assessment of the potential for high-efficiency cogeneration and efficient district heating and cooling. Those assessments should be based on a baseline scenario leading to a renewable energy-based national heating and cooling sector within a timeframe compatible with the achievement of the climate neutrality objective and be  coherent with the integrated national energy and climate plans and long term renovation strategies. New electricity generation installations and existing installations which are substantially refurbished or whose permit or licence is updated should, subject to a cost-benefit analysis showing a cost-benefit surplus, be equipped with high-efficiency cogeneration units to recover waste heat stemming from the production of electricity. Similarly, other facilities with substantial annual average energy input should be equipped with technical solutions to deploy waste heat from the facility where the cost-benefit analysis shows a cost-benefit surplus. This waste heat could be transported where it is needed through district heating networks. The events that trigger a requirement for authorisation criteria to be applied will generally be events that also trigger requirements for permits under Directive 2010/75/EU of the European Parliament and of the Council (42) and for authorisation under Directive (EU) 2019/944.

(80a)   When assessing the potential for efficient heating and cooling, Member States should take wider environmental, health and safety aspects into account. As heat pumps are an indispensable tool for realising energy efficiency in heating and cooling, any potential environmental impacts from refrigerants should be fully assessed and eliminated.

(81)  It may be appropriate for electricity generation installations that are intended to make use of geological storage permitted under Directive 2009/31/EC of the European Parliament and of the Council (43), to be located in places where the recovery of waste heat through high-efficiency cogeneration or by supplying a district heating or cooling network is not cost-effective. Member States should therefore be able to exempt those installations from the obligation to carry out a cost-benefit analysis for providing the installation with equipment allowing the recovery of waste heat by means of a high-efficiency cogeneration unit. It should also be possible to exempt peak-load and back-up electricity generation installations which are planned to operate under 1500 operating hours per year as a rolling average over a period of five years from the requirement to also provide heat.

(82)  It is appropriate for Member States to encourage the introduction of measures and procedures to promote cogeneration installations with a total rated thermal input of less than  5  MW in order to encourage distributed energy generation.

(83)  To implement national comprehensive assessments, Member States should encourage the assessments of the potential for high-efficiency cogeneration, electricity generation from waste heat for self-consumption and efficient district heating and cooling in regional and local level. Member States should take steps to promote and facilitate deployment of identified cost-efficient potential of the high-efficiency cogeneration and efficient district heating and cooling.

(84)  Requirements for efficient district heating and cooling should be consistent with long-term climate policy goals, the climate and environmental standards and priorities of the Union, and should comply with the principle of ‘do no significant harm’ within the meaning of Regulation (EU) 2020/85. All the district heating and cooling systems should aim for improved ability to interact with other parts of the energy system in order to optimise the use of energy and prevent energy waste by using the full potential of buildings to store heat or cold, including the excess heat from service facilities and nearby data centres. For that reason, efficient district heating and cooling system should ensure the increase of primary energy efficiency and a progressive integration of renewable energy and waste heat as defined in Directive (EU) 2018/2001 of the European Parliament and of the Council(44) or cold. Therefore, this Directive introduces progressively stricter requirements for heating and cooling supply which should be applicable during specific established time periods and should be permanently applicable from 1 January 2050 onwards.

(85)  High-efficiency cogeneration  has been defined by the energy savings obtained by combined production instead of separate production of heat and electricity.  Requirements for high-efficiency cogeneration should be consistent with long-term climate policy goals.  The definitions of cogeneration and high-efficiency cogeneration used in Union legislation should be without prejudice to the use of different definitions in national legislation for purposes other than those of the Union legislation in question. To maximise energy savings and avoid energy saving opportunities being missed, the greatest attention should be paid to the operating conditions of cogeneration units.

(86)  To ensure transparency and allow the final customer to choose between electricity from cogeneration and electricity produced by other techniques, the origin of high-efficiency cogeneration should be guaranteed on the basis of harmonised efficiency reference values. Guarantee of origin schemes do not by themselves imply a right to benefit from national support mechanisms. It is important that all forms of electricity produced from high-efficiency cogeneration can be covered by guarantees of origin. Guarantees of origin should be distinguished from exchangeable certificates.

(87)  The specific structure of the cogeneration and district heating and cooling sectors, which include many small and medium-sized producers, should be taken into account, especially when reviewing the administrative procedures for obtaining permission to construct cogeneration capacity or associated networks, in application of the ‘Think Small First’ principle.

(88)  Most Union businesses are SMEs. They represent an enormous energy saving potential for the Union. To help them adopt energy efficiency measures, Member States should establish a favourable framework aimed at providing SMEs with technical assistance and targeted information.

(89)  Member States should establish, on the basis of objective, transparent and non-discriminatory criteria, rules governing the bearing and sharing of costs of grid connections and grid reinforcements and for technical adaptations needed to integrate new producers of electricity produced from high-efficiency cogeneration, taking into account guidelines and codes developed in accordance with Regulation (EU) 2019/943 of the European Parliament and of the Council(45) and Regulation (EC) No 715/2009 of the European Parliament and of the Council (46). Producers of electricity generated from high-efficiency cogeneration should be allowed to issue a call for tender for the connection work. Access to the grid system for electricity produced from high-efficiency cogeneration, especially for small scale and micro-cogeneration units, should be facilitated. In accordance with Article 99(2) of Directive (EU) 2019/944 and Article 3(2) of Directive 2009/73/EC, Member States may impose public service obligations, including in relation to energy efficiency, on undertakings operating in the electricity and gas sectors.

(90)  It is necessary to set out provisions related to billing, single point of contact, out-of-court dispute settlement, energy poverty and basic contractual rights, with the aim of aligning them, where appropriate, with the relevant provisions regarding electricity pursuant to Directive (EU) 2019/944, in order to strengthen consumer protection and enable final customers to have direct access to detailed, clear and up-to-date information about their electricity, heating, cooling or domestic hot water consumption and to regulate their energy use making energy consumption fully transparent for consumers.

(91)  Greater consumer protection should be guaranteed by the availability of effective, independent out-of-court dispute settlement mechanisms for all consumers, such as an energy ombudsperson, a consumer body or a regulatory authority. Member States should, therefore, introduce speedy and effective complaint-handling procedures.

(92)  The contribution of renewable energy communities, pursuant to Directive (EU) 2018/2001 ▌, and citizen energy communities, according to Directive (EU) 2019/944 towards the objectives of the European Green Deal and the 2030 Climate Target Plan, should be recognised and actively supported. Member States should, therefore, consider and promote the role of renewable energy communities and citizen energy communities. Those communities can help Member States to implement the energy efficiency first principle at local level by advancing energy efficiency at local or household level, as well as in public buildings in cooperation with local authorities. They can empower and engage consumers and enable certain groups of household customers, including in rural, remote areas and outermost regions, to participate in energy efficiency projects and interventions, often combining such actions with investment in renewable energy. Energy communities also have a strong role to play in educating and increasing citizens' awareness of the measures that can undertake to achieve energy savings. If properly supported by Member States, energy communities can help fighting energy poverty through facilitation of energy efficiency projects, reduced energy consumption and lower supply tariffs. Member States should remove unnecessary hurdles to ensure it is attractive to build energy communities. Public administrations at all levels should be duly trained in this area.

(92a)   Long-term behavioural changes in energy consumption can be achieved through the empowerment of citizens. Energy communities can help deliver long-term energy savings, particularly among households, and an increase in sustainable investments from citizens and small businesses. Member States should empower such actions by citizens through support for community energy projects and organisations.

(93)  The contribution of one-stop shops or similar structures as mechanisms that can enable multiple target groups, including citizens, SMEs and public authorities, to design and implement projects and measures related to the clean energy transition, should be recognised. The contribution of one-stop-shops can be very important for the most vulnerable customers, including women in all their diversity and single parents, as they could provide an easier, reliable and accessible source of information about energy efficiency improvements. That contribution can include the provision of technical, administrative and financial advice and assistance, facilitation of the necessary administrative procedures or of access to financial markets, or guidance with the national and European legal framework, including public procurement rules and criteria, and the EU Taxonomy.

(94)  The Commission should review the impact of its measures to support the development of platforms or fora, involving, inter alia, the European social dialogue bodies in fostering training programmes for energy efficiency, and shall bring forward further measures where appropriate. The Commission should also encourage European social partners in their discussions on energy efficiency, especially for vulnerable customers and final users, including those in energy poverty.

(95)  A fair transition towards a climate-neutral Union by 2050 is central to the European Green Deal. The European Pillar of Social Rights, jointly proclaimed by the European Parliament, the Council and the Commission on 17 November 2017, includes energy among the essential services which everyone is entitled to access. Support for access to such services must be available for those in need(47), particularly in a context of inflationary pressure and significant increases in energy prices.

(96)  It is necessary to ensure that people affected by energy poverty, vulnerable customers and, where applicable, people living in social housing are protected and, to this end, empowered to actively participate in the energy efficiency improvement interventions, measures and related consumer protection or information measures that Member States implement. Targeted awareness raising campaigns should be developed to illustrate the benefits of energy efficiency as well to provide information on the financial support available.

(97)  Public funding available at national and Union level should be strategically invested into energy efficiency improvement measures, in particular for the benefit of vulnerable customers, people affected by energy poverty and those living in social housing. Member States should take advantage of any financial contribution they might receive from the Social Climate Fund(48), and of revenues from allowances from the EU Emissions Trading System. These revenues will support Member States in fulfilling their obligation to implement energy efficiency measures and policy measures under the energy savings obligation as a priority among vulnerable customers and people affected by energy poverty, which may include those living in rural and remote regions.

(98)  National funding schemes should be complemented by suitable schemes of better information, technical and administrative assistance, easier access to finance that will enable the best use of the available funds especially by people affected by energy poverty, vulnerable customers and, where applicable, people living in social housing.

(99)  Member States should empower and protect all people equally, irrespective of their sex, gender, age, disability, race or ethnic origin, sexual orientation, religion or belief, and ensure that those most affected or put at greater risk of being affected by energy poverty, or most exposed to the adverse impacts of energy poverty, are adequately protected. In addition, Member States should ensure that energy efficiency measures do not exacerbate any existing inequalities, notably with respect to energy poverty.

(100)  Member States should ensure that national energy regulatory authorities take an integrated approach encompassing potential savings in the energy supply and the end-use sectors.  Without prejudice to security of supply, market integration and anticipatory investments in offshore grids necessary for the deployment of offshore renewable energy, national energy regulatory authorities should ensure that the energy efficiency first principle is applied in the planning and decision making processes and that network tariffs and regulations incentivise improvements in energy efficiency. Member States should also ensure that transmission and distribution system operators consider the energy efficiency first principle. That would help transmission and distribution system operators to consider better energy efficiency solutions and incremental costs incurred for the procurement of demand side resources, as well as the environmental and socio-economic impacts of different network investments and operation plans. Such an approach requires a shift from the narrow economic efficiency perspective to maximised social welfare. The energy efficiency first principle should in particular be applied in the context of scenario building for energy infrastructure expansion where demand side solutions could be considered as viable alternatives and need to be properly assessed, and it should become an intrinsic part of the assessment of network planning projects. Its application should be scrutinised by national regulatory authorities.

(101)  A sufficient number of reliable professionals competent in the field of energy efficiency should be available to ensure the effective and timely implementation of this Directive, for instance as regards compliance with the requirements on energy audits and implementation of energy efficiency obligation schemes. Member States should therefore put in place certification and /or equivalent qualification and suitable training schemes for the providers of energy services, energy audits and other energy efficiency improvement measures in close cooperation with social partners, training providers and other relevant stakeholders. The schemes should be assessed every four years starting as of December 2024 and if needed be updated to ensure the necessary level of competences for energy services providers, energy auditors, energy managers and installers of building elements .

(102)  It is necessary to continue developing the market for energy services to ensure the availability of both the demand for and the supply of energy services. Transparency, for example by means of lists of  certified  energy services providers  and available  model contracts, exchange of best practice and guidelines  greatly contribute to the uptake of energy services and  energy performance contracting  and  can also help stimulate demand  and increase the trust in energy services providers . In an energy performance contract the beneficiary of the energy service avoids investment costs by using part of the financial value of energy savings to repay the investment fully or partially carried out by a third party.  That can help attracting private capital which is key for increasing building renovation rates in the Union, bring expertise into the market and create innovative business models. Therefore, non-residential buildings and public residential buildings with the useful floor area above 500 m2 and buildings for social purposes should be required to assess the feasibility of using energy performance contracting for renovation. That is a step ahead to increase the trust in energy services companies and pave the way for increasing such projects in the future.

(103)  Given the ambitious renovation objectives over the next decade in the context of the Commission’s Communication entitled Renovation Wave it is necessary to increase the role of independent market intermediaries including one stop shops or similar support mechanisms in order to stimulate market development on the demand and supply sides and to promote energy performance contracting for renovation of both private and public buildings. Local energy agencies could play a key role in this regard, and identify and support setting up potential facilitators or one-stop-shops. This Directive should help improve the availability of products, services and advice available on the Union and local markets, including by promoting the potential for women entrepreneurs to fill the gaps in the market and to provide for innovative ways to enhance energy efficiency.

(104)  Energy performance contracting still faces important barriers in several Member States due to remaining regulatory and non-regulatory barriers. It is therefore necessary to address the ambiguities of the national legislative frameworks, lack of expertise, especially as regards to tendering procedures, and competing loans and grants.

(105)  Member States should continue supporting the public sector in the uptake of energy performance contracting by providing model contracts that take into account the available European or international standards, tendering guidelines and the Guide to the Statistical Treatment of Energy Performance Contracts(49) published in May 2018 by Eurostat and the European Investment Bank on the treatment of energy performance contracting in government accounts, which have provided opportunities for addressing remaining regulatory barriers to these contracts in Member States.

(106)  Member States have taken measures to identify and address the regulatory and non-regulatory barriers. However, there is a need to increase the effort to remove regulatory and non-regulatory barriers to the use of energy performance contracting and third-party financing arrangements which help achieving energy savings. These barriers include accounting rules and practices that prevent capital investments and annual financial savings resulting from energy efficiency improvement measures from being adequately reflected in the accounts for the whole life of the investment.

(107)  Member States used the 2014 and 2017 National Energy Efficiency Action Plans (NEEAPs) to report progress in removing regulatory and non-regulatory barriers to energy efficiency, as regards the split of incentives between the owners and tenants or among owners of a building or building units. However, Member States should continue working in that direction and tap the potential for energy efficiency in the context of the 2016 Eurostat statistics, represented by the fact that more than four out of ten Europeans live in flats and more than three out of ten Europeans are tenants.

(108)  Member States, regional and local authorities should be encouraged to make full use of the European funds available in the MFF and Next Generation EU including the Recovery and Resilience Facility,  the Cohesion Policy Funds, the Rural Development Fund and the Just Transition Fund, as well as the financial instruments and technical assistance available under InvestEU, to trigger private and public investments in energy efficiency improvement measures. Investment in energy efficiency has the potential to contribute to economic growth, employment, innovation and a reduction in  energy poverty in households, and therefore makes a positive contribution to economic, social and territorial cohesion and green recovery. Potential areas for funding include energy efficiency measures in public buildings and housing, and the training, reskilling and upskilling of professionals, in particular in jobs related to building renovation, to promote employment in the energy efficiency sector.  The Commission will ensure synergies between the different funding instruments, in particular the funds in the shared management and in the direct management (like the centrally-managed programmes: Horizon Europe or LIFE), as well as between grants, loans and technical assistance to maximise their leverage effect on private financing and their impact on the achievement of energy efficiency policy objectives.

(109)  Member States should encourage the use of financing facilities to further the objectives of this Directive. Such financing facilities could include financial contributions and fines from non-fulfilment of certain provisions of this Directive; resources allocated to energy efficiency under Article 10(3) of Directive 2003/87/EC of the European Parliament and of the Council(50); resources allocated to energy efficiency in the European funds and programmes, and dedicated European financial instruments, such as the European Energy Efficiency Fund. Member States should work on building platforms that aim to aggregate small and medium-sized projects with a view to creating pools of projects suitable for financing purposes.

(110)  Financing facilities could be based, where applicable, on resources allocated to energy efficiency from Union project bonds; resources allocated to energy efficiency from the European Investment Bank and other European financial institutions, in particular the European Bank for Reconstruction and Development and the Council of Europe Development Bank; resources leveraged in financial institutions; national resources, including through the creation of regulatory and fiscal frameworks encouraging the implementation of energy efficiency initiatives and programmes; revenues from annual emission allocations under Decision No 406/2009/EC of the European Parliament and of the Council(51).

(111)  The financing facilities could in particular use those contributions, resources and revenues to enable and encourage private capital investment, in particular drawing on institutional investors, while using criteria ensuring the achievement of both environmental and social objectives for the granting of funds; make use of innovative financing mechanisms (e.g. loan guarantees for private capital, loan guarantees to foster energy performance contracting, grants, subsidised loans and dedicated credit lines, third party financing systems) that reduce the risks of energy efficiency projects and allow for cost-effective renovations even among low and medium revenue households; be linked to programmes or agencies which will aggregate and assess the quality of energy saving projects, provide technical assistance, promote the energy services market and help to generate consumer demand for energy services.

(112)  The financing facilities could also provide appropriate resources to support training and certification programmes which improve and accredit skills for energy efficiency; provide resources for research on and demonstration and acceleration of uptake of small-scale and micro- technologies to generate energy and the optimisation of the connections of those generators to the grid; be linked to programmes undertaking action to promote energy efficiency in all dwellings to prevent energy poverty and stimulate landlords letting dwellings to render their property as energy-efficient as possible; provide appropriate resources to support social dialogue and standard-setting aiming at improving energy efficiency and ensuring good working conditions and health and safety at work.

(113)  Available Union funding programmes, financial instruments and innovative financing mechanisms should be used to give practical effect to the objective of improving the energy performance of public bodies’ buildings. In that respect, Member States may use their revenues from annual emission allocations under Decision No 406/2009/EC in the development of such mechanisms on a voluntary basis and taking into account national budgetary rules. The Commission and Member States should provide regional and local administrations with adequate information on such programmes. For example, the Covenant of Mayors initiative could be one of the tools for providing adequate information.

(114)  In the implementation of the energy efficiency target, the Commission  should monitor the impact of the relevant measures on Directive 2003/87/EC establishing the Union’s emissions trading scheme (ETS) in order to maintain the incentives in the emissions trading system rewarding low carbon investments and preparing the ETS sectors for the innovations needed in the future. It will need to monitor the impact on those industry sectors which are exposed to a significant risk of carbon leakage as determined in Commission Decision 2014/746/EU(52) , in order to ensure that this Directive promotes and does not impede the development of these sectors.

(115)  Member State measures should be supported by well-designed and effective Union financial instruments under  the  InvestEU programme, and by financing from the European Investment Bank (EIB) and the European Bank for Reconstruction and Development (EBRD), which should support investments in energy efficiency at all stages of the energy chain and use a comprehensive cost-benefit analysis with a model of differentiated discount rates. Financial support should focus on cost-effective methods for increasing energy efficiency, which would lead to a reduction in energy consumption. The EIB and the EBRD should, together with national promotional banks, design, generate and finance programmes and projects tailored for the efficiency sector, including for energy-poor households.

(116)  Cross–sectorial law provides a strong basis for consumer protection for a wide range of current energy services, and is likely to evolve. Nevertheless, certain basic contractual rights of customers should be clearly established. Plain and unambiguous information should be made available to consumers concerning their rights in relation to the energy sector.

(117)  Greater consumer protection is guaranteed by the availability of effective, independent out-of-court dispute settlement mechanisms for all consumers, such as an energy ombudsman, a consumer body or a regulatory authority. Member States should therefore introduce speedy and effective complaint-handling procedures.

(118)  In order to be able to evaluate the effectiveness of this Directive, a requirement to conduct a general review of  this Directive and to submit a report to the European Parliament and to the Council by 28 February 2027  should be laid down. That review should allow necessary alignments, also taking into account economic and innovation developments.

(119)  Local and regional authorities should be given a leading role in the development and design, execution and assessment of the measures laid down in this Directive, so that they are able properly to address the specific features of their own climate, culture and society.

(119a)   In view of the specific characteristics of outermost regions, as recognised in Article 349 TFEU, in particular as regards energy connection, production, supply and consumption, and the increased risk of energy poverty, particular attention should be paid to the outermost regions and their inhabitants when drawing up, implementing and evaluating the measures provided for in this Directive.

(120)  Reflecting technological progress and the growing share of renewable energy sources in the electricity generation sector, the default coefficient for savings in kWh electricity should be reviewed in order to reflect changes in the primary energy factor (PEF) for electricity  and other energy carriers  . Calculations reflecting the energy mix of the PEF for electricity are based on annual average values. The ‘physical energy content’ accounting method is used for nuclear electricity and heat generation and the ‘technical conversion efficiency’ method is used for electricity and heat generation from fossil fuels and biomass. For non-combustible renewable energy, the method is the direct equivalent based on the ‘total primary energy’ approach. To calculate the primary energy share for electricity in cogeneration, the method set out in Annex II to this Directive is applied. An average rather than a marginal market position is used. Conversion efficiencies are assumed to be 100 % for non-combustible renewables, 10 % for geothermal power stations and 33 % for nuclear power stations. The calculation of total efficiency for cogeneration is based on the most recent data from Eurostat. As for system boundaries, the PEF is 1 for all energy sources. The PEF value refers to 2018 and is based on data interpolated from the most recent version of the PRIMES Reference Scenario for 2015 and 2020 and adjusted with Eurostat data until 2016. The analysis covers the Member States and Norway. The dataset for Norway is based on the ENTSO-E data.

(121)  Energy savings which result from the implementation of Union law should not be claimed unless they result from a measure that goes beyond the minimum required by the Union legal act in question, whether by setting more ambitious energy efficiency requirements at Member State level or by increasing the take-up of the measure. Buildings present a substantial potential for further increasing energy efficiency, and the renovation of buildings is an essential and long-term element with economies of scale in increasing energy savings. It is therefore necessary to clarify that it is possible to claim all energy savings stemming from measures promoting the renovation of existing buildings, provided that they exceed the savings that would have occurred in the absence of the policy measure and provided that the Member State demonstrates that the obligated, participating or entrusted party has in fact contributed to the achievement of the energy savings claimed.

(122)  In accordance with the Energy Union Strategy and the principles of better regulation, monitoring and verification rules for the implementation of energy efficiency obligation schemes and alternative policy measures, including the requirement to check a statistically representative sample of measures, should be given greater prominence. In this Directive, a statistically significant proportion and representative sample of the energy efficiency improvement measures should be understood to require the establishment of a subset of a statistical population of the energy-saving measures in question in such a way that it accurately reflects the entire population of all energy-saving measures, and thus allows for reasonably reliable conclusions regarding confidence in the totality of the measures.

(123)  Energy generated on or in buildings from renewable energy technologies reduces the amount of energy supplied from fossil fuels. The reduction of energy consumption and the use of energy from renewable sources in the buildings sector are important measures to reduce the Union's energy dependence and greenhouse gas emissions, especially in view of ambitious climate and energy objectives set for 2030 as well as the global commitment made in the context of the Paris Agreement. For the purposes of their cumulative energy savings obligation Member States may take into account energy savings from policy measures promoting renewable technologies to meet their energy savings requirements in accordance with the calculation methodology provided in this Directive. Energy savings from policy measures regarding the use of direct fossil fuel combustion should not be counted.

(124)  Some of the changes introduced by this Directive might require a subsequent amendment to Regulation (EU) 2018/1999 in order to ensure coherence between the two legal acts. New provisions, mainly related to setting binding national contributions, trajectories and milestones, gap filling mechanisms and reporting obligations, should be streamlined and transferred to that Regulation, once it is amended. Some provisions of Regulation (EU) 2018/1999 might also need to be reassessed in view of the changes proposed in this Directive. The additional reporting and monitoring requirements should not create any new parallel reporting systems but would be subject to the existing monitoring and reporting framework under Regulation (EU) 2018/1999.

(125)  To foster the practical implementation of this Directive at national, regional and local levels, the Commission should continue to support the exchange of experiences on practices, benchmarking, networking activities, as well as innovative practices by an online platform.

(126)  Since the objectives of this Directive, namely to achieve the Union's energy efficiency target and to pave the way towards further energy efficiency improvements  and towards climate neutrality, cannot be sufficiently achieved by the Member States but can rather, by reason of the scale and effects of the action, be better achieved at Union level, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on European Union. In accordance with the principle of proportionality as set out in that Article, this Directive does not go beyond what is necessary in order to achieve those objectives.

(127)  In order to permit adaptation to technical progress and changes in the distribution of energy sources, the power to adopt acts in accordance with Article 290 TFEU should be delegated to the Commission in respect of the review of the harmonised efficiency reference values laid down on the basis of this Directive and in respect of the values, calculation methods, default primary energy coefficient and requirements in the Annexes to this Directive.

(128)  It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making(53). In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council receive all documents at the same time as Member States' experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts.

(129)  In order to ensure uniform conditions for the implementation of this Directive, implementing powers should be conferred on the Commission. Those powers should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council (54).

(130)  The obligation to transpose this Directive into national law should be confined to those provisions which represent a substantive amendment as compared to the earlier Directive. The obligation to transpose the provisions which are unchanged arises under that earlier Directive.

(131)  This Directive should be without prejudice to the obligations of the Member States relating to the time-limits for  the  transposition into national law of  the  Directives  set out in Annex XV, Part B,

HAVE ADOPTED THIS DIRECTIVE:

CHAPTER I

SUBJECT MATTER, SCOPE, DEFINITIONS AND ENERGY EFFICIENCY TARGETS

Article 1

Subject matter and scope

1.  This Directive establishes a common framework of measures to promote energy efficiency within the Union in order to ensure that the binding Union's target on energy efficiency is met and enables further energy efficiency improvements, contributing to the implementation of the Paris Agreement and to the Union’s security of energy supply through reducing its dependence on energy imports, including fossil fuels, while transforming the Union's energy relations with third country partners towards achieving climate neutrality.

This Directive lays down rules designed to implement energy efficiency as a priority across all sectors, remove barriers in the energy market and overcome market failures that impede efficiency in the supply, transmission, storage and use of energy. It also provides for the establishment of binding national energy efficiency contributions for 2030.

This Directive contributes to the implementation of the energy efficiency first principle, thus contributing to the Union as an inclusive, fair and prosperous society with a modern, resource-efficient and competitive economy.

2.  The requirements laid down in this Directive are minimum requirements and shall not prevent any Member State from maintaining or introducing more stringent measures. Such measures shall be compatible with Union law. Where national legislation provides for more stringent measures, the Member State shall notify such legislation to the Commission.

Article 2

Definitions

For the purposes of this Directive, the following definitions shall apply:

(1)  ‘energy’ means all forms of energy products, combustible fuels, heat, renewable energy, electricity, or any other form of energy, as defined in Article 2(d) of Regulation (EC) No 1099/2008 of the European Parliament and of the Council (55);

(2)  ‘energy efficiency first’ means ‘energy efficiency first’ as defined in point (18) of Article 2 of Regulation (EU) 2018/1999;

(3)  `energy system´ means a system primarily designed to supply energy-services to satisfy the demand of end-use sectors for energy in the forms of heat, fuels, and electricity;

(3a)  ‘system efficiency’ means the selection of energy-efficient solutions where they also enable a cost-effective decarbonisation pathway, additional flexibility and the efficient use of resources;

(4)  ‘primary energy consumption’ means gross  available energy, excluding  international maritime bunkers, final  non-energy  consumption, ambient heat and geothermal energy used in heat pumps;

(5)  ‘final energy consumption’ means all energy supplied to industry, transport  (including energy consumption in international aviation), households,  public and private  services, agriculture, forestry and fishing and other end-users (final consumers of energy). It excludes  energy consumption in international maritime bunkers, ambient heat and geothermal energy used in heat pumps and deliveries to the transformation sector, and the energy   sector and losses due to transmission and distribution (definitions in Annex A of Regulation (EC) No 1099/2008 apply);

(6)  ‘energy efficiency’ means the ratio of output of performance, service, goods or energy, to input of energy;

(7)  ‘energy savings’ means an amount of saved energy determined by measuring and/or estimating consumption before and after implementation of an energy efficiency improvement measure, whilst ensuring normalisation for external conditions that affect energy consumption;

(8)  ‘energy efficiency improvement’ means an increase in energy efficiency as a result of technological, behavioural and/or economic changes;

(9)  ‘energy service’ means the physical benefit, utility or good derived from a combination of energy with energy-efficient technology or with action, which may include the operations, maintenance and control necessary to deliver the service, which is delivered on the basis of a contract and in normal circumstances has proven to result in verifiable and measurable or estimable energy efficiency improvement or primary energy savings;

(10)  ‘public bodies’ means ‘contracting authorities’ as defined in Directive 2014/24/EU of the European Parliament and of the Council(56) ;

(10a)  ‘buildings for social purposes’ means buildings solely occupied by bodies other than public bodies, which are publicly funded and which provide services of general interest, such as education, health, social services or social housing;

(11)  ‘total useful floor area’ means the floor area of a building or part of a building, where energy is used to condition the indoor climate;

(12)  ‘contracting authorities’ means contracting authorities as defined in Article Articles 6(1), 2(1) and 3(1) of Directives 2014/23/EU, Directive 2014/24/EU and Directive 2014/25/EU respectively;

(13)  ‘contracting entities’ means contracting entities as defined in Directives 2014/23/EU and 2014/25/EU respectively;

(14)  ‘energy management system’ means a set of interrelated or interacting elements of a plan which sets an energy efficiency objective and a strategy to achieve that objective  , including monitoring of actual energy consumption, actions taken to increase energy efficiency and measurement of progress;

(15)  ‘European standard’ means a standard adopted by the European Committee for Standardisation, the European Committee for Electrotechnical Standardisation or the European Telecommunications Standards Institute and made available for public use;

(16)  ‘international standard’ means a standard adopted by the International Standardisation Organisation and made available to the public;

(17)  ‘obligated party’ means an energy distributor or retail energy sales company  or transmission system operator  that is bound by the national energy efficiency obligation schemes referred to in Article 9;

(18)  ‘entrusted party’ means a legal entity with delegated power from a government or other public body to develop, manage or operate a financing scheme on behalf of the government or other public body;

(19)  ‘participating party’ means an enterprise or public body that has committed itself to reaching certain objectives under a voluntary agreement, or is covered by a national regulatory policy instrument;

(20)  ‘implementing public authority’ means a body governed by public law which is responsible for the carrying out or monitoring of energy or carbon taxation, financial schemes and instruments, fiscal incentives, standards and norms, energy labelling schemes, training or education;

(21)  ‘policy measure’ means a regulatory, financial, fiscal, voluntary or information provision instrument formally established and implemented in a Member State to create a supportive framework, requirement or incentive for market actors to provide and purchase energy services and to undertake other energy efficiency improvement measures;

(22)  ‘individual action’ means an action that leads to verifiable, and measurable or estimable, energy efficiency improvements and is undertaken as a result of a policy measure;

(23)  ‘energy distributor’ means a natural or legal person, including a distribution system operator, responsible for transporting energy with a view to its delivery to final customers or to distribution stations that sell energy to final customers;

(24)  ‘distribution system operator’ means ‘distribution system operator’ as defined in  Article 2(29) of  Directive (EU) 2019/944  , as regards electricity,  and  Article 2(6) of  Directive 2009/73/EC  , as regards gas,  respectively;

(25)  ‘retail energy sales company’ means a natural or legal person who sells energy to final customers;

(26)  ‘final customer’ means a natural or legal person who purchases energy for own end use;

(27)  ‘energy service provider’ means a natural or legal person who delivers energy services or energy efficiency improvement measures in a final customer’s facility or premises;

(27a)   ‘small or medium-sized enterprise’ or ‘SME’ means an enterprise as defined in Article 2(1) of the Annex to the Commission Recommendation 2003/361/EC(57);

(27b)  ‘microenterprise’ means an enterprise as defined in Article 2(3) of the Annex to Recommendation 2003/361/EC;

(28)  ‘energy audit’ means a systematic procedure with the purpose of obtaining adequate knowledge of the energy consumption and management profile of a building or group of buildings, an industrial or commercial operation or installation or a private or public service, identifying and quantifying opportunities for cost-effective energy savings  identifying the potential for cost-effective use or production of renewable energy and reporting the findings;

(29)  ‘energy performance contracting’ means a contractual arrangement between the beneficiary and the provider of an energy efficiency improvement measure, verified and monitored during the whole term of the contract, where work, supply or service in that measure are paid for in relation to a contractually agreed level of energy efficiency improvement or other agreed energy performance criterion, such as financial savings;

(30)  ‘smart metering system’ or ‘intelligent metering system’ means  ’smart metering system’ as defined in Directive (EU) 2019/944 ;

(30a)   ‘recharging point’ means a recharging point as defined in Article 2(41) of Directive ... [AFIR - 2021/0223(COD)];

(31)  ‘transmission system operator’ means ‘transmission system operator’ as defined in  in Article 2(35) of  Directive (EU) 2019/944 and Directive 2009/73/EC, for electricity and gas, respectively;

(32)  ‘cogeneration’ means the simultaneous generation in one process of thermal energy and electrical or mechanical energy;

(33)  ‘economically justifiable demand’ means demand that does not exceed the needs for heating or cooling and which would otherwise be satisfied at market conditions by energy generation processes other than cogeneration;

(34)  ‘useful heat’ means heat produced in a cogeneration process to satisfy economically justifiable demand for heating or cooling;

(35)  ‘electricity from cogeneration’ means electricity generated in a process linked to the production of useful heat and calculated in accordance with the methodology laid down in Annex II;

(36)  ‘high-efficiency cogeneration’ means cogeneration meeting the criteria laid down in Annex III;

(37)  ‘overall efficiency’ means the annual sum of electricity and mechanical energy production and useful heat output divided by the fuel input used for heat produced in a cogeneration process and gross electricity and mechanical energy production;

(38)  ‘power-to-heat ratio’ means the ratio of electricity from cogeneration to useful heat when operating in full cogeneration mode using operational data of the specific unit;

(39)  ‘cogeneration unit’ means a unit that is able to operate in cogeneration mode;

(40)  ‘small-scale cogeneration unit’ means a cogeneration unit with installed capacity below 1 MWe;

(41)  ‘micro-cogeneration unit’ means a cogeneration unit with a maximum capacity below 50 kWe;

(42)  ‘efficient district heating and cooling’ means a district heating or cooling system  meeting the criteria laid down in Article 24;

(43)  ‘efficient heating and cooling’ means a heating and cooling option that, compared to a baseline scenario reflecting a business-as-usual situation, measurably reduces the input of primary energy needed to supply one unit of delivered energy within a relevant system boundary in a cost-effective way, as assessed in the cost-benefit analysis referred to in this Directive, taking into account the energy required for extraction, conversion, transport and distribution;

(44)  ‘efficient individual heating and cooling’ means an individual heating and cooling supply option that, compared to efficient district heating and cooling, measurably reduces the input of non-renewable primary energy needed to supply one unit of delivered energy within a relevant system boundary or requires the same input of non-renewable primary energy but at a lower cost, taking into account the energy required for extraction, conversion, transport and distribution;

(45)  ‘data centre’ means a structure, or group of structures used to house, connect and operate computer system/servers and associated equipment for data storage, processing and/or distribution, as well as related activities as defined in Commission Regulation (EU) 2022/132(58);

(46)  ‘substantial refurbishment’ means a refurbishment whose cost exceeds 50 % of the investment cost for a new comparable unit;

(47)  ‘aggregator’ has the meaning attributed to ‘independent aggregator’ as defined by Article 2(19) of Directive (EU) 2019/944;

(48)  ‘energy poverty’ means a household’s inability, linked to non-affordability, to meet its basic energy supply needs and a lack of access to essential energy services to guarantee basic levels of comfort and health, a decent standard of living and health, including adequate heating, hot water, cooling, lighting, and energy to power appliances, in the relevant national context, existing social policy and other relevant policies, caused by one or a combination of the following factors: insufficient disposable income, high energy expenditures and poor energy efficiency of homes;

(49)  ´final user´ means natural or legal person purchasing heating, cooling or domestic hot water for their own end-use, or natural or legal person occupying an individual building or a unit in a multi-apartment or multi-purpose building supplied with heating, cooling or domestic hot water from a central source who has no direct or individual contract with the energy supplier;

(50)  ‘split incentives’ means the lack of fair and reasonable distribution of financial obligations and rewards related to energy efficiency investments among the actors concerned, for example the owners and tenants or the different owners of building units, or owners and tenants or different owners of multi-apartment or multi-purpose buildings.

(50a)   ‘engagement strategy’ means a strategy that sets objectives, develops techniques and establishes the process by which to involve all relevant stakeholders at national and local level, including civil society representatives such as consumer organisations,in the policy-making process, with the goal of increasing awareness, obtaining feedback on such policies and improving their public acceptance;

(50b)  ‘one-stop shop’ means a single point for provision of advice, guidance and information.

Article 3

Energy efficiency first principle

1.  In conformity with the energy efficiency first principle, Member States shall ensure that energy efficiency solutions, including demand-side resources and system flexibilities, areassessed in the design and planning of policy decisions as well as major investment decisions related to the following sectors:

(a)  energy systems, and

(b)  non-energy sectors, where those sectors have an impact on energy consumption and energy efficiency, including buildings, transport, water, information and communications technology (ICT), agriculture and financial sectors.

2.  Member States shall ensure that the application of the energy efficiency first principle, including, where appropriate, sector integration and cross-sectoral impacts, is verified by the relevant entities where policy, planning and investment decisions are subject to approval and monitoring requirements.

2a.  In applying this Article, Member States shall take into account the Commission Recommendation (EU) 2021/1749(59).

3.  In applying the energy efficiency first principle, Member States shall:

(a)  develop, apply and make publicly available a cost-benefit methodology that allows the proper assessment of the wider benefits of energy efficiency solutions taking into account the entire life cycle and foreseeable developments, system and cost efficiency, security of supply and quantification from the societal, health, economic and climate neutrality perspective;

(aa)   ensure that the application of the energy efficiency first principle will have a positive impact on addressing energy poverty;

(b)  identify an entity responsible for monitoring the application of the energy efficiency first principle and the impacts of regulatory frameworks, including financial regulations, planning, policy and investment decisions on energy consumption and energy efficiency and energy systems;

(ba)  secure that the investments made are environmentally sustainable at all stages of the energy value chain and apply circularity principles in transition to climate neutrality;

(c)  report to the Commission, as part of the integrated national energy and climate progress reports in accordance with Article 17 of Regulation (EU) 2018/1999 on how the energy efficiency first principle was taken into account in the national, regional and local planning, policy and major investment decisions related to the national and regional energy systems and to non-energy sectors, where those sectors have an impact on energy consumption and energy efficiency, including, but not limited to, the following:

(i)  an assessment of the systematic application and benefits of the energy efficiency first principle in energy systems, in particular in relation to energy consumption;

(ii)  a list of actions taken to remove any unnecessary regulatory or non-regulatory barriers to the implementation of the energy efficiency first principle and of demand-side solutions, including through the identification of national legislation and measures that are contrary to the energy efficiency first principle;

3a.  By ... [6 months after the date of entry in force of this Directive], the Commission shall adopt a delegated act supplementing this Directive by establishing a common general framework including supervision, the monitoring and reporting procedure that Member States may use to design the cost-benefit methodologies referred to in paragraph 3, point (a), in order to ensure comparability while leaving the possibility for Member States to adapt to national and local circumstances.

Article 4

Energy efficiency targets

1.  Member States shall collectively ensure a reduction of energy consumption of at least 40 % in 2030 in final energy consumption and 42,5 % in primary energy consumption compared to the projections of the 2007 Reference Scenario so that the Union’s final energy consumption amounts to no more than 740 Mtoe and the Union’s primary energy consumption amounts to no more than 960 Mtoe in 2030.(60)

2.  Each Member State shall set binding national energy efficiency contributions for final and primary energy consumption to meet, collectively, the binding Union target set in paragraph 1. Member States shall notify those contributions together with a trajectory with two reference points (milestones) in 2025 and 2027 for those contributions,  to the Commission as part of the updates of their integrated national energy and climate plans in accordance with Article 14 of Regulation (EU) 2018/1999, and as part of their integrated national energy and climate plans as referred to in, and in accordance with, the procedure set out in Article 3 and Articles 7 to 12 of Regulation (EU) 2018/1999. When setting their binding national contributions, Member States shall apply the formula defined in Annex I of this Directive and explain how, and on the basis of which data, the contributions have been calculated.

Member States shall also provide the shares of energy consumption of energy end-use sectors, as defined in Regulation (EC) No 1099/2008 on energy statistics, including industry, residential, services and transport, in their national energy efficiency contributions. Projections for energy consumption in ▌ICT ▌shall also be indicated.

In setting those contributions, Member States shall take into account:

(a)  that the Union’s  2030  energy consumption has to be no more than 740 Mtoe of final energy or no more than 960 Mtoe of primary energy consumption ;

(b)  the measures provided for in this Directive;

(c)  other measures to promote energy efficiency within Member States and at Union level;

(d)  the following relevant factors affecting efficiency efforts included in the formula established in Annex I:

i.  the collective level of ambition necessary to reach climate objectives;

ii.  the equitable distribution of efforts across the Union;

iii.  the energy intensity of the economy;

(iv)  the remaining cost-effective energy-saving potential;

(e)  other national factors affecting energy consumption, in particular:

(i)  GDP evolution and forecast;

(ii)  changes of energy imports and exports, developments in energy mix and deployment of new sustainable fuels ;

(iii)  development of all sources of renewable energies, nuclear energy, carbon capture and storage;

(iv)  decarbonisation of energy intensive industries.

(iv a)  the level of ambition in the national decarbonisation/climate neutrality plans.

Where Member States take into account the national factors referred to in point (e) of the third subparagraph, this shall not lead to a failure to achieve the Union’s energy efficiency target. The Commission shall assess whether the collective contribution of Member States is sufficient to achieve the Union’s energy efficiency target and assess if the contributions are in line with achieving the milestones. Where it concludes that it is not sufficient, it shall, within two months of the Member States’ notification of their national energy efficiency contributions, propose to each Member State a corrected national energy efficiency contribution ensuring that the collective contribution of Member States reaches the Union’s energy efficiency target. When applying that mechanism, the Commission shall ensure that there is no difference in the primary and final energy consumption between the sum of the Member States’ national contributions and the Union’s energy efficiency target.

3.  The Commission shall, on the basis of its assessment pursuant to Article 29(1) and (3) of Regulation (EU) 2018/1999, assess the progress of Member States towards the achievement of their binding national contributions and milestones referred to in paragraph 2 of this Article. Where the Commission concludes, on the basis of its assessment, that insufficient progress has been made towards meeting the energy efficiency contributions, Member States that are above their ▌trajectories and milestones referred to in paragraph 2 of this Article shall ensure that additional measures are implemented within one year following the date of reception of the Commission's assessment in order to ensure getting back on track to reach their energy efficiency contributions. Those additional measures shall include, but shall not be limited to, the following measures:

a.  national measures delivering additional energy savings, including stronger project development assistance for the implementation of energy efficiency investment measures;

b.  increasing the energy savings obligation set out in Article 8;

c.  adjusting the obligation for public sector;

d.  making a voluntary financial contribution to the National Energy Efficiency Fund referred to in Article 28 or another financing instrument dedicated to energy efficiency, where the annual financial contributions shall be equal to the investments required to reach the ▌trajectory.

Where a Member State is above its ▌trajectory referred to in paragraph 2 of this Article, it shall include in its integrated national energy and climate progress report pursuant to Article 17 of Regulation (EU) 2018/1999, an explanation of the measures it will take to cover the gap to ensure reaching its national energy efficiency contributions and the amount of energy savings each measure is expected to deliver.

The Commission shall assess whether the national measures referred to in this paragraph are sufficient to achieve the Union's energy efficiency targets. Where national measures are deemed to be insufficient, the Commission shall, as appropriate, propose measures and exercise its power at Union level in order to ensure, in particular, the achievement of the Union's 2030 targets for energy efficiency.

4.  The Commission shall assess by 31 December 2026 any methodological changes in the data reported pursuant to Regulation (EC) No 1099/2008 on energy statistics, in the methodology for calculating energy balance and in energy models for European energy use and, if necessary, propose technical calculation adjustments to the Union’s 2030 targets with a view to maintaining the level of ambition set out in paragraph 1 of this Article.

CHAPTER II

 EXEMPLARY ROLE OF PUBLIC SECTOR 

Article 5

Public sector leading on energy efficiency

1.  Member States shall ensure that the total final energy consumption of all public bodies combined is reduced by at least 2 % each year, when compared to the year X-2 (with X as the year when this Directive enters into force).

Member States may take into account climatic variations within the Member State when calculating their public bodies’ final energy consumption.

2.  Member States shall include, in their national energy and climate plans and updates thereof pursuant to Regulation (EU) 2018/1999, the list of all public bodies which shall contribute to the fulfilment of the obligation set out in paragraph 1 of this Article, the amount of energy consumption reduction and energy savings to be achieved by each of them and the measures they plan to achieve it. As part of their integrated national energy and climate reports pursuant to Article 17 of Regulation (EU) 2018/1999, Member States shall report to the Commission the final energy consumption reduction achieved annually.

3.  Member States shall ensure that regional and local authorities, establish specific energy efficiency measures in their decarbonisation plans after consulting relevant stakeholders, their energy agencies, where relevant, and the public, including the particular groups at risk of energy poverty or more susceptible to its effects on the basis of their income, gender, demographics, health condition or membership of a minority group, such as ▌persons with a minority racial or ethnic background. Member States shall also ensure that, when designing and implementing energy efficiency measures, regional and local authorities avoid negative direct or indirect impacts of the energy efficiency measures on energy poor, low-income households or vulnerable groups.

4.  Member States shall provide financial and technical support to public bodies in the uptake of energy efficiency improvement measures and encourage them to take into account the wider benefits beyond energy savings, such as the quality of the indoor air and environment as well as an improvement of people’s quality of life and the comfort of renovated public buildings, in particular schools, day care centres, nursing homes, sheltered housing, hospitals, and social housing, including at regional and local levels. Member States shall provide guidelines, promote competence building and training opportunities, including on energy refurbishment by using Energy Performance Contracts and public private partnerships and encourage cooperation amongst public bodies. Members States shall support public bodies to address the lack of human resources, which are needed at all stages of the green transition, including craftspeople as well as high-skilled green technology experts, applied scientists and innovators.

5.  Member States shall encourage public bodies to consider life cycle carbon emissions as well as economic, social and energy security benefits of their public bodies’ investment and policy activities and shall provide specific guidance in that regard.

5a.  Member States shall encourage public bodies to take adequate measures to address the heating dimension of buildings owned or occupied by public bodies, in particular via the replacement of old and inefficient heaters and phase out of fossil fuels.

5b.  Member States shall promote the use of public transport and other less polluting and more energy efficient means of mobility, such as rail, cycling, walking or shared mobility, by renewing and decarbonising fleets, encouraging a modal shift and including those modes in urban mobility planning.

Article 6

Exemplary role of public bodies’ buildings

1.  Without prejudice to Article 7 of Directive 2010/31/EU ▌, each Member State shall ensure that at least  3 % of the total floor area of heated and/or cooled buildings owned by public bodies of the following categories and of buildings for social purposes is renovated each year to at least be transformed into nearly zero-energy buildings or zero-emission buildings in accordance with Article 9 of Directive 2010/31/EU with due consideration of cost-effectiveness and technical feasibility:

(a)  buildings owned by public bodies;

(b)  buildings newly occupied by public bodies, from ... [the date of entry into force of this Directive];

(c)  buildings occupied by public bodies when reaching a trigger point (renewal of rental, sale, change of use, significant repair or maintenance work).

Member States may exempt social housing from the obligation to renovate referred to in the first subparagraph where such renovations would not be cost neutral or would lead to rent increases for people living in social housing that cannot be limited to the equivalent of the economic savings on the energy bill in any way.

Where public bodies occupy a building that they do not own, they shall exercise their contractual rights to the extent possible and encourage the building owner to renovate the building to a nearly zero-energy building in accordance with Article 9 of Directive 2010/31/EU or implement an energy management system or energy performance contract to maintain and improve the energy performance over time. When concluding a new contract for occupying a building they do not own, public bodies shall ensure that the building falls into the top two energy efficiency classes on the energy performance certificate or establish contractual clauses that commit the building owner to renovate the building to a nearly zero-energy building before it is occupied by the public body.

The rate of at least 3% shall be calculated on the total floor area of buildings having a total useful floor area over 250 m2 owned by public bodies ▌and of buildings for social purposes which, on 1 January 2024, are not nearly zero-energy buildings.

Member States may lay down requirements to ensure that, where technically and economically feasible, buildings owned or occupied by public bodies as referred to in the first and third subparagraphs of this paragraph and buildings for social purposes over 250 m2 are equipped with building automation and control systems or other solutions to actively manage energy flows, in accordance with Article 14(4) of Directive 2010/31/EU.

Where technically feasible and cost-effective, Member States shall make their best efforts to install a number of recharging points in buildings owned or occupied by public bodies exceeding the minimum requirements provided for in Article [12] of Directive ... [recast EPBD - 2021/0426 (COD)].

1a.  By way of derogation from paragraph 1, Member States may apply less stringent requirements establishing different energy efficiency requirements for the following categories of buildings:

(a)  buildings officially protected as part of a designated environment, or because of their special architectural or historical merit, in so far as compliance with certain minimum energy performance requirements would alter their character or appearance unacceptably;

(b)  buildings owned by the armed forces or central government and serving national defence purposes, apart from single living quarters or office buildings for the armed forces and other staff employed by national defence authorities;

(c)  buildings used as places of worship and for religious activities.

1b.  In order to front load energy savings and to provide an incentive for early action, a Member State that renovates more than 3 % of the total floor area of its buildings in accordance with paragraph 1 in any year until 31 December 2026 may count the surplus towards the annual renovation rate of any of the following three years. A Member State that renovates more than 3 % of the total floor area of its buildings from 1 January 2027 may count the surplus towards the annual renovation rate of the following two years.

2.  In exceptional cases, Member States may count towards the annual renovation rate of buildings new buildings owned as replacements for specific public bodies’ buildings demolished in any of the two previous years.  Such exceptions shall only apply where they would be more cost effective and sustainable in terms of the energy and lifecycle CO2 emissions achieved compared to the renovations of such buildings. The general criteria, methodologies and procedures to identify such exceptional cases shall be clearly set out and published by each Member State.

3.  For the purposes of this Article, Member States shall make publicly available an inventory of heated and/or cooled buildings that are owned or occupied by public bodies as referred to in the first and third subparagraphs of paragraph 1 and buildings for social purposes with a total useful floor area of more than 250 m2.  This inventory shall be set up by 30 June 2024, and shall be updated at least once a year.  It shall be collated in a user-friendly database and linked to the building stock overview done in the framework of the national long-term renovation strategies in accordance with Article 2a of Directive 2010/31/EU and the databases set up pursuant to Article [19] of that Directive [recast EPBD - 2021/0426 (COD)].

Where such inventories already exist at local or regional levels, each Member State shall take appropriate measures to facilitate the data collection and processing activities related to its inventory. The inventory shall also enable private actors including ESCOs to take part in renovation solutions. Data about building stock characteristics, building shell performance, technical buildings systems, buildings renovation and energy performance may be aggregated by the EU Building Stock Observatory to ensure a better understanding of the energy performance of the building sector through comparable data.

The inventory shall contain at least the following data:

(a)  the floor area in m2;

(ab)   the annual energy consumption of heat, cooling, electricity and hot water when those data are available;

(b)  the energy performance certificate of each building issued in accordance with Article 16 of Directive ... [recast EPBD - 2021/0426 (COD)] or, where no energy performance certificate of the building exists, information about the buildings heat source, the energy intensity of the building given in kWh/(m²*y), ventilation and cooling installations and other technical installations shall be provided;

(ba)   the measured energy savings resulting from the renovation of buildings owned or occupied by public bodies and of buildings for social purposes and other energy efficiency actions on those buildings;

(bb)   the age, usage type, typology and location (urban or rural) of the buildings.

In addition to the data referred to in the third subparagraph, Member States shall make their best efforts to include qualitative aspects to their inventories. In particular, they may annex to their inventories a description of the measures related to their engagement strategies in order to ensure the owners and occupiers of the buildings adapt their behaviour to energy savings and to nearly zero-energy buildings’ operational requirements. Such annexes shall be made available in the form of, or be added to pre-existing, resource centres managed by local authorities, which shall be accessible to stakeholders, including policymakers, private social landlords and tenant associations, and managers of private offices.

Article 7

 Public procurement

1.  Member States shall ensure that  contracting authorities and contracting entities, when concluding public contracts and concessions with a value equal to or greater than the thresholds laid down in Article 8 of Directive 2014/23/EU, Article 4 of Directive 2014/24/EU and Article 15 of Directive 2014/25/EU,  purchase only products, services, buildings  and   works  with high energy-efficiency performance, duly taking into account the efficient management of financial resources, in accordance with the requirements  referred to in Annex IV  to this Directive.

Member States shall also ensure that in concluding the public contracts and concessions with a value equal to or greater than the thresholds referred to in the first subparagraph, contracting authorities and contracting entities, apply the energy efficiency first principle referred to in Article 3 of this Directive, including for those public contracts and concessions for which no specific requirements are provided in Annex IV.

2.  The obligation referred to in paragraph 1 shall apply to the contracts of the armed forces only to the extent that its application does not cause any conflict with the nature and primary aim of the activities of the armed forces. The obligation shall not apply to contracts for the supply of military equipment as defined by Directive 2009/81/EC of the European Parliament and of the Council (61).

3.  Notwithstanding paragraph 4 of Article 26 of this Directive, Member States shall  ensure that contracting authorities and contracting entities  assess the  feasibility of concluding long-term energy performance contracts that provide long-term energy savings when procuring service contracts with significant energy content.

4.  Without prejudice to paragraph 1, when purchasing a product package fully covered by a delegated act adopted under Regulation (EU) 2017/1369 of the European Parliament and of the Council(62) , Member States may require that the aggregate energy efficiency take priority over the energy efficiency of individual products within that package, by purchasing the product package that complies with the criterion of belonging to the highest available energy efficiency class.

5.  Member States shall require that contracting authorities and contracting entities take into account, where appropriate, wider sustainability, social, environmental and circular economy aspects in procurement practices, in particular for the transport sector, with a view to achieving the Union’s decarbonisation and zero pollution objectives. Where appropriate, and in accordance with the requirements laid down in Annex IV, Member States shall require contracting authorities and contracting entities to take into account Union green public procurement criteria.

To ensure transparency in the application of energy efficiency requirements in the procurement process, Member States shall make publicly available information on the energy efficiency impact of contracts with a value equal to or greater than the thresholds referred to in paragraph 1. Contracting authorities shall require that tenderers disclose information on the life cycle global warming potential of a new building and a building to be renovated, including the use of low carbon materials and the circularity of the materials used, and shall make that information publically available for the contracts, in particular for new buildings having a floor area larger than 2000 square meters.

Member States shall support contracting authorities and contracting entities in the uptake of energy efficiency requirements, including at regional and local level, by providing clear rules and guidelines including methodologies on the assessment of lifecycle costs and environment impacts and costs, setting up competence support centres, encouraging cooperation amongst contracting authorities including across borders and using aggregated procurement and digital procurement where possible.

5a.  Where appropriate, the Commission may provide further guidance and tools to national authorities and procurement officials in the application of energy efficiency requirements in the procurement process. Such support may strengthen existing supporting fora (e.g. concerted action) for Member States and assist them in taking the green public procurement criteria into account.

6.  Member States shall establish legal and regulatory provisions, and administrative practices, regarding public purchasing and annual budgeting and accounting, necessary to ensure that individual contracting authorities are not deterred from making investments in improving energy efficiency and from using energy performance contracting and third-party financing mechanisms on a long-term contractual basis.

7.  Member States shall remove any regulatory or non-regulatory barriers to energy efficiency, in particular as regards legal and regulatory provisions, and administrative practices, regarding public purchasing and annual budgeting and accounting, with a view to ensuring that individual public bodies are not deterred from making investments in improving energy efficiency and from using energy performance contracting and third-party financing mechanisms on a long-term contractual basis.

Member States shall report to the Commission on the measures taken to address the barriers to uptake of energy efficiency improvements as part of the integrated national energy and climate progress reports pursuant to Article 17 of Regulation (EU) 2018/1999.

CHAPTER III

 EFFICIENCY IN ENERGY USE 

Article 8

Energy savings obligation

-1.  With a view to ensuring a stable and predictable contribution towards achieving the Union's energy and climate targets for 2030 and the climate neutrality objective for 2050, Member States shall achieve cumulative end-use energy savings in the obligation periods. The first obligation period, which is referred to in paragraph 1, point (a), was from 2014 to 2020. The second obligation period, which is referred to in paragraph 1, points (b) and (c), shall run from 2021 to 2030.

1.  Member States shall achieve cumulative end-use energy savings at least equivalent to:

(a)  new savings each year from 1 January 2014 to 31 December 2020 of 1,5 % of annual energy sales to final customers by volume, averaged over the most recent three-year period prior to 1 January 2013. Sales of energy, by volume, used in transport may be excluded, in whole or in part, from that calculation;

(b)  new savings each year from 1 January 2021 to 31 December  2023  of 0,8 % of annual final energy consumption, averaged over the most recent three-year period prior to 1 January 2019. By way of derogation from that requirement, Cyprus and Malta shall achieve new savings each year from 1 January 2021 to 31 December  2023  equivalent to 0,24 % of annual final energy consumption, averaged over the most recent three-year period prior to 1 January 2019;

(c)  new savings each year from 1 January 2024 to 31 December 2030 of % of annual final energy consumption, averaged over the three-year period prior to 1 January 2020.

Member States shall decide how to phase the calculated quantity of new savings over each period referred to in points (a), (b) and (c) of the first subparagraph, provided that the required total cumulative end-use energy savings have been achieved by the end of each obligation period.

Member States shall continue to achieve new annual savings in accordance with  the savings rate provided in point (c) of the first subparagraph for ten-year periods after 2030.

2.  Member States shall achieve the amount of energy savings required under paragraph 1 of this Article either by establishing an energy efficiency obligation scheme referred to in Article 9 or by adopting alternative policy measures referred to in Article 10. Member States may combine an energy efficiency obligation scheme with alternative policy measures. Member States shall ensure that energy savings resulting from policy measures referred to in Articles 9 and 10 and Article 28(11) are calculated in accordance with Annex V.

3.  Member States shall implement energy efficiency obligation schemes, alternative policy measures, or a combination of both, or programmes or measures financed under an Energy Efficiency National Fund, as a priority among people affected by energy poverty, low-income households, vulnerable customers and, where applicable, people living in social housing. Member States shall ensure that policy measures implemented pursuant to this Article have no adverse effect on those persons. Where applicable, Member States shall make the best possible use of funding, including public funding, funding facilities established at Union level, and revenues from allowances pursuant to Article 22(3)(b) with the aim of removing adverse effects and ensuring a just and inclusive energy transition.

In order to achieve the amount of energy savings required under paragraph 1, Member States shall consider and promote the role of renewable energy communities and citizen energy communities in the contribution to the implementation towards these policy measures.

Member States shall establish and achieve a minimum share of the required amount of cumulative end-use energy savings among people affected by energy poverty, low-income households, vulnerable customers and, where applicable, people living in social housing. This share shall at least equal the proportion of households in energy poverty as assessed in their National Energy and Climate Plan established in accordance with Article 3(3)(d) of the Governance Regulation 2018/1999. Member States shall, in their assessment of the share of energy poverty in their National Energy and Climate Plans, consider the indicators referred to in points (a) to (bb) of this subparagraph. If a Member State had not notified the share of households in energy poverty as assessed in their National Energy and Climate Plan, the share of the required amount of cumulative end-use energy savings among people affected by energy poverty, low-income households, vulnerable customers and, where applicable, people living in social housing, shall at least equal the arithmetic average share of the following indicators for the year 2019 or, if not available for 2019, for the linear extrapolation of their values for the last three years that are available:

a)  Inability to keep home adequately warm (Eurostat, SILC [ilc_mdes01]);

b)  Arrears on utility bills (Eurostat, SILC, [ilc_mdes07]); and

(ba)  total population living in a dwelling with a leaking roof, damp walls, floors or foundation, or rot in window frames or floor (Eurostat, SILC [ilc_mdho01]);

(bb)  at-risk-of-poverty rate (Eurostat, SILC and ECHP surveys [ilc_li02]) (cutoff point: 60 % of median equivalised income after social transfers.

4.  Member States shall include information about the indicators applied, the arithmetic average share and the outcome of policy measures established in accordance with paragraph 3 of this Article in the updates of their integrated national energy and climate plans in accordance with Article 14 of Regulation (EU) 2018/1999, in their subsequent integrated national energy and climate plans pursuant to Articles 3 and 7 to 12 of Regulation (EU) 2018/1999, and respective progress reports in accordance with Article 17 of that Regulation.

5.  Member States may count energy savings that stem from policy measures, whether introduced by 31 December 2020 or after that date, provided that those measures result in new individual actions that are carried out after 31 December 2020.  Energy savings achieved in any obligation period shall not count towards the amount of required energy savings for the previous obligation periods set out in paragraph 1.

6.  Provided that Member States achieve at least their cumulative end-use energy savings obligation referred to in point (b) of the first subparagraph of paragraph 1, they may calculate the required amount of energy savings  referred to in point (b) of the first subparagraph of paragraph 1  by one or more of the following means:

(a)  applying an annual savings rate on energy sales to final customers or on final energy consumption, averaged over the most recent three-year period prior to 1 January 2019;

(b)  excluding, in whole or in part, energy used in transport from the calculation baseline;

(c)  making use of any of the options set out in paragraph 8.

7.  Where Member States make use  of any  of the possibilities provided for in paragraph 6 regarding the required energy savings referred to in point (b) of the first subparagraph of paragraph 1, they shall establish:

(a)  their own annual savings rate that will be applied in the calculation of their cumulative end-use energy savings, which shall ensure that the final amount of their net energy savings is no lower than those required under point (b) of the first subparagraph of paragraph 1;

(b)  their own calculation baseline, which may exclude, in whole or in part, energy used in transport.

8.  Subject to paragraph 9, each Member State may:

(a)  carry out the calculation required under point (a) of the first subparagraph of paragraph 1 using values of 1 % in 2014 and 2015; 1,25 % in 2016 and 2017; and 1,5 % in 2018, 2019 and 2020;

(b)  exclude from the calculation all or part of the sales of energy used, by volume, with respect to the obligation period referred to in point (a) of the first subparagraph of paragraph 1, or final energy consumed, with respect to the obligation period referred to in point (b) of that subparagraph, by industrial activities listed in Annex I to Directive 2003/87/EC;

(c)  count towards the amount of required energy savings in point (a) and (b) of the first subparagraph of paragraph 1, energy savings achieved in the energy transformation, distribution and transmission sectors, including efficient district heating and cooling infrastructure, as a result of implementing the requirements set out in in Article 23(4), point (a) of Article 24(4), and Article 25(1), (5) to (9) and (11). Member States shall inform the Commission about their intended policy measures under this point for the period from 1 January 2021 to 31 December 2030 as part of their integrated national energy and climate plans. The impact of those measures shall be calculated in accordance with Annex V and included in those plans;

(d)  count towards the amount of required energy savings, energy savings resulting from individual actions newly implemented since 31 December 2008 that continue to have an impact in 2020 with respect to the obligation period referred to in point (a) of the first subparagraph of paragraph 1 and beyond 2020 with respect to the period referred to in point (b) of the first subparagraph of paragraph 1, and which can be measured and verified;

(e)  count towards the amount of required energy savings, energy savings that stem from policy measures, provided that it can be demonstrated that those measures result in individual actions carried out from 1 January 2018 to 31 December 2020 which deliver savings after 31 December 2020;

(f)  exclude from the calculation of the amount of required energy savings  pursuant to point (a) and (b) of the first subparagraph of paragraph 1, 30 % of the verifiable amount of energy generated on or in buildings for own use as a result of policy measures promoting new installation of renewable energy technologies;

(g)  count towards the amount of required energy savings  pursuant to point (a) and (b) of the first subparagraph of paragraph 1 , energy savings that exceed the energy savings required for the obligation period from 1 January 2014 to 31 December 2020, provided that those savings result from individual actions carried out under policy measures referred to in Articles 9 and 10, notified by Member States in their National Energy Efficiency Action Plans and reported in their progress reports in accordance with Article 24.

9.  Member States shall apply and calculate the effect of the options chosen under paragraph 8 for the period referred to in points (a) and (b) of the first subparagraph of paragraph 1 separately:

(a)  for the calculation of the amount of energy savings required for the obligation period referred to in point (a) of the first subparagraph of paragraph 1, Member States may make use of points (a) to (d) of paragraph 8. All the options chosen under paragraph 8 taken together shall amount to no more than 25 % of the amount of energy savings referred to in point (a) of the first subparagraph of paragraph 1;

(b)  for the calculation of the amount of energy savings required for the obligation period referred to in point (b) the first subparagraph of paragraph 1, Member States may make use of points (b) to (g) of paragraph 8, provided individual actions referred to in point (d) of paragraph 8 continue to have a verifiable and measurable impact after 31 December 2020. All the options chosen under paragraph 8 taken together shall not lead to a reduction of more than 35 % of the amount of energy savings calculated in accordance with paragraphs 6 and 7.

Regardless of whether Member States exclude, in whole or in part, energy used in transport from their calculation baseline or make use of any of the options listed in paragraph 8, they shall ensure that the calculated net amount of new savings to be achieved in final energy consumption during the obligation period  referred to in point (b) of the first subparagraph of paragraph 1  from 1 January 2021 to 31 December  2023  is not lower than the amount resulting from applying the annual savings rate referred to in point (b) of the first subparagraph of paragraph 1.

10.  Member States shall describe in  the updates of  their integrated national energy and climate plans  in accordance with Article 14 of Regulation (EU) 2018/1999, in their subsequent integrated national energy and climate plans pursuant to Articles 3 and 7 to 12 of Regulation (EU) 2018/1999 and  in accordance with Annex III to Regulation (EU) 2018/1999,  and respective progress reports  the calculation of the amount of energy savings to be achieved over the period from 1 January 2021 to 31 December 2030 and shall, if relevant, explain how the annual savings rate and the calculation baseline were established, and how and to what extent the options referred to in paragraph 8 of this Article were applied.

11.  Member States shall notify the Commission with the amount of the required energy savings referred to in point (c) of the first subparagraph of paragraph 1 and paragraph 3 of this Article, a description of the policy measures to be implemented to achieve the required total amount of the cumulative end-use energy savings and their calculation methodologies pursuant to Annex V of this Directive, as part of the updates of their integrated national energy and climate plans in accordance with Article 14 of Regulation (EU) 2018/1999, and as part of their integrated national energy and climate plans as referred to in, and in accordance with, the procedure pursuant to Articles 3 and 7 to 12 of Regulation (EU) 2018/1999. Member States shall use the reporting template provided to the Member States by the Commission.

12.  Where on the basis of the assessment of the integrated national energy and climate progress reports pursuant to Article 29 of Regulation (EU) 2018/1999, or of the draft or final update of the latest notified integrated national energy and climate plan pursuant to Article 14 of Regulation (EU) 2018/1999, or the assessment of the subsequent draft and final integrated national energy and climate plans pursuant to Article 3 and 7 to 12 of Regulation (EU) 2018/1999, the Commission concludes that policy measures do not ensure the achievement of the required amount of cumulative end-use energy savings by the end of the obligation period, the Commission may issue recommendations in accordance with Article 34 of Regulation (EU) 2018/1999 to the Member States whose policy measures it deems insufficient to ensure the fulfilment of their energy savings obligations.

13.  Where a Member State has not achieved the required cumulative end-use energy savings by the end of each obligation period set out in paragraph 1 of this Article, it shall achieve the outstanding energy savings in addition to the cumulative end-use energy savings required by the end of the following obligation period.

14.  As part of their updates of national energy and climate plans and respective progress reports, and their subsequent integrated national energy and climate plans and notified pursuant to Regulation (EU) 2018/1999  Member States shall demonstrate  including, where appropriate, evidence and calculations:

(a)  that where there is an overlap in the impact of policy measures or individual actions, there is no double counting of energy savings;

(b)  how energy savings achieved pursuant to points (b) and (c) of the first subparagraph of paragraph 1 contribute to the achievement of their national contribution pursuant to Article 4;

(c)  that policy measures are established for fulfilling their energy savings obligation, designed in compliance with the requirements of this Article and that those policy measures are eligible and appropriate to ensure the achievement of the required amount of cumulative end-use energy savings by the end of each obligation period.

Article 9

Energy efficiency obligation schemes

1.  Where Member States decide to fulfil their obligations to achieve the amount of savings required under Article 8(1) by way of an energy efficiency obligation scheme, they shall ensure that obligated parties as referred to in paragraph 2 of this Article operating in each Member State's territory achieve, without prejudice to Article 8(8) and (9), their cumulative end-use energy savings requirement as set out in Article 8(1).

Where applicable, Member States may decide that obligated parties fulfil those savings, in whole or in part, as a contribution to the Energy Efficiency National Fund in accordance with Article 28(11).

2.  Member States shall designate, on the basis of objective and non-discriminatory criteria, obligated parties among transmission system operators, distribution system operators, energy distributors, retail energy sales companies and transport fuel distributors or transport fuel retailers operating in their territory. The amount of energy savings needed to fulfil the obligation shall be achieved by the obligated parties among final customers, designated by the Member State, independently of the calculation made pursuant to Article 8(1) or, if Member States so decide, through certified savings stemming from other parties as described in point (a) of paragraph 10 of this Article.

3.  Where retail energy sales companies are designated as obligated parties under paragraph 2, Member States shall ensure that, in fulfilling their obligation, retail energy sales companies do not create any barriers that impede consumers from switching from one supplier to another.

4.  Member States shall encourage obligated parties to achieve a share of their energy savings obligation among people affected by energy poverty, vulnerable customers and low-income households and, where applicable, people living in social housing. Member States may also require obligated parties to achieve energy cost reduction targets and to achieve energy savings by promoting energy efficiency improvement measures, including financial support measures mitigating carbon price effects on SMEs and microenterprises.

5.  Member States shall require obligated parties to work with regional and local authorities or municipalities, and engage with social services and civil society organisations in order to set up an engagement platform dedicated to energy poverty alleviation, to promote energy efficiency improvement measures among people affected by energy poverty, vulnerable customers and low-income households and, where applicable, people living in social housing. This includes identifying and addressing the specific needs of particular groups at risk of energy poverty or more susceptible to its effects. To protect people affected by energy poverty vulnerable customers and, where applicable, people living in social housing, Member States shall encourage obligated parties to carry out actions such as renovation of buildings, including social housing, replacement of appliances, financial support and incentives for energy efficiency improvement measures in conformity with national financing and support schemes, or energy audits.

6.  Member States shall require obligated parties to report on an annual basis on the energy savings achieved by the obligated parties from actions promoted among people affected by energy poverty, vulnerable customers and, where applicable, people living in social housing, and shall require aggregated statistical information on their final customers (identifying changes in energy savings to previously submitted information) and regarding technical and financial support provided.

7.  Member States shall express the amount of energy savings required of each obligated party in terms of either final or primary energy consumption. The method chosen to express the amount of energy savings required shall also be used to calculate the savings claimed by obligated parties. When converting the amount of energy savings, the net calorific values set out in Annex VI of Commission Implementing Regulation (EU) 2018/2066(63) and the primary energy factor pursuant to Article 29 shall apply unless the use of other conversion factors can be justified.

8.  Member States shall establish  measurement, control and verification systems for carrying out  documented verification on at least a statistically significant proportion and representative sample of the energy efficiency improvement measures put in place by the obligated parties. The measurement, control and verification shall be carried out independently of the obligated parties. [Where an entity is an obligated party under a national energy efficiency obligation scheme under Article 9 and under the EU Emissions Trading System to buildings and road transport [COM(2021) 551 final, 2021/0211 (COD)(64)], the monitoring and verification system shall ensure that the carbon price passed through when releasing fuel for consumption [according to Article 1(21) of COM(2021) 551 final, 2021/0211 (COD)] shall be taken into account in the calculation and reporting of energy savings of the entity´s energy saving measures.]

9.  Member States shall inform the Commission, as part of the integrated national energy and climate progress reports pursuant to Article 17 of Regulation (EU) 2018/1999, on the measurement, control and verification systems put in place, including but not limited to methods used, issues identified and how they were addressed.

10.  Within the energy efficiency obligation scheme, Member States may authorise obligated parties to carry out  the following:

(a)  to count towards their obligation certified energy savings achieved by energy service providers or other third parties, including when obligated parties promote measures through other State-approved bodies or through public authorities that may involve formal partnerships and may be in combination with other sources of finance. Where Member States so permit, they shall ensure that the certification of energy savings follows an approval process that is put in place in the Member States, that is clear, transparent, and open to all market participants, and that aims to minimise the costs of certification;

(b)  to count savings obtained in a given year as if they had instead been obtained in any of the four previous or three following years as long as this is not beyond the end of the obligation periods set out in Article 8(1).

Member States shall assess and, if appropriate, take measures to minimise the impact of the direct and indirect costs of energy efficiency obligation schemes on the competitiveness of energy-intensive industries exposed to international competition.

11.  Member States shall, on an annual basis, publish the energy savings achieved by each obligated party, or each sub-category of obligated party, and in total under the scheme.

Article 10

Alternative policy measures

1.  Where Member States decide to fulfil their obligations to achieve the savings required under Article 8(1) by way of alternative policy measures, they shall ensure, without prejudice to Article 8(8) and (9), that the energy savings required under Article 8(1) are achieved among final customers.

2.  For all measures other than those relating to taxation, Member States shall put in place measurement, control and verification systems under which documented verification is carried out on at least a statistically significant proportion and representative sample of the energy efficiency improvement measures put in place by the participating or entrusted parties. The measurement, control and verification shall be carried out independently of the participating or entrusted parties.

3.  Member States shall inform the Commission, as part of the integrated national energy and climate progress reports pursuant to Article 17 of Regulation (EU) 2018/1999, on the measurement, control and verification systems put in place, including but not limited to methods used, issues identified and how they were addressed.

4.  When reporting a taxation measure, including parafiscal charges or levies, Member States shall demonstrate that they were designed with the purpose to generate energy savings and how the effectiveness of the price signal, such as tax rate and visibility over time, has been ensured in the design of the taxation measure. Where there is a decrease in the tax rate, Member States shall justify how the taxation measures still result in new energy savings.

Article 11

Energy management systems and energy audits

1.  Member States shall ensure that enterprises implement an energy management system, where their average annual energy consumption over the previous three years, taking all energy carriers together, is:

(a)  higher than 100 TJ, from 1 January 2024;

(b)  higher than 70 TJ, from 1 January 2027.

The energy management system shall be certified by an independent body according to the relevant European or international standards.

2.  Member States shall ensure that enterprises ▌that do not implement an energy management system are subject to an energy audit, where their average annual energy consumption over the previous three years, taking all energy carriers together, is:

(a)  higher than 10 TJ, from 1 January 2024;

(b)  higher than 6 TJ, from 1 January 2027.

Energy audits shall be carried out according to the relevant European or international standards in an independent and cost-effective manner by qualified or accredited sector specific experts or accredited independent bodies in accordance with requirements provided in Article 26 or implemented and supervised by independent authorities under national legislation. Energy audits shall be carried out at least every four years from the date of the previous energy audit.

The results of the energy audits including the recommendations from these audits shall result in concrete and feasible implementation plans indicating the cost and payback period for each recommended energy efficiency action and shall be transmitted to the management of the enterprise. Member States shall ensure that the implementation of the recommendations is mandatory, with the exception of those where the payback period is longer than three years. Member States shall ensure that the results and the implemented recommendations are published in the enterprise’s annual report, and made public available, except information subject to national laws protecting trade and business secrets and confidentiality.

2a.  Member States may encourage all eligible companies to provide the following information in their annual report:

(a)   information on the yearly energy consumption in kWh;

(b)   information on the yearly volume of water consumed in cubic metres;

(c)   comparisons of the yearly energy and water consumption with previous years of the same facility.

3.  Member States shall promote the availability to all final customers of high quality energy audits which are cost-effective and:

(a)  carried out in an independent manner by qualified and/or accredited experts according to qualification criteria; or

(b)  implemented and supervised by independent authorities under national legislation.

The energy audits referred to in the first subparagraph may be carried out by in-house experts or energy auditors provided that the Member State concerned has put in place safeguards to ensure their ability to carry out audits in an independent manner as well as a scheme to assure and check their quality, including, if appropriate, an annual random selection of at least a statistically significant percentage of all the energy audits they carry out.

For the purpose of guaranteeing the high quality of the energy audits and energy management systems, Member States shall establish transparent and non-discriminatory minimum criteria for energy audits based on Annex VI and specified in European and international standards.  Member States shall ensure that quality checks are carried out to ensure the validity and accuracy of energy audits.

Energy audits shall not include clauses preventing the findings of the audit from being transferred to any qualified/accredited energy service provider, on condition that the customer does not object.

4.  Member States shall develop programmes with the aim of encouraging and providing technical support to SMEs that are not subject to paragraph 1 or 2 to undergo energy audits and the subsequent implementation of the recommendations from these audits complying with the minimum criteria set out in Annex VI.

On the basis of transparent and non-discriminatory criteria and without prejudice to Union State aid law, Member States shall set up mechanisms such as energy audit centres for SMEs and microenterprises, where these are not in competition with private auditors, to provide subsidised energy audits, as well as other support schemes for SMEs, including if they have concluded voluntary agreements, to cover costs of an energy audit and of the implementation of highly cost-effective recommendations from the energy audits, if the proposed measures are implemented.

Member States shall support and provide incentives for the implementation of the recommendations by means of technical and financial support, which shall not be accounted under the maximum amount of de minimis aid to enterprises, easier access to finance, with a special attention to SMEs and those companies that implement recommendations with the highest decarbonisation impact in terms of energy efficiency.

Member States shall bring to the attention of SMEs, including through their respective representative intermediary organisations, concrete examples of how energy management systems could help their businesses. The Commission shall assist Member States by supporting the exchange of best practices in this domain.

4a.  For the purpose of paragraph 4, Member States shall ensure that the programmes include:

(a)  integration of energy management systems involving the management of the enterprise, including financial incentives with the commitment of the enterprise to uptake the energy efficiency measures identified;

(b)  support to SMEs in quantifying the multiple benefits of energy efficiency measures within their operations;

(c)  development of company-specific energy efficiency roadmaps developed in an interactive process, with a prioritisation of goals, measures, financial and technological options;

(d)  development of energy transition networks of SMEs, facilitated by independent facilitators;

(e)  support mechanisms for such networks for the deployment of energy audits or energy management systems.

5.  Member States shall develop programmes to encourage non-SMEs that are not subject to paragraph 1 or 2 to undergo energy audits and the subsequent implementation of the recommendations from these audits complying with the minimum criteria set out in Annex VI.

6.  Energy audits shall be considered as fulfilling the requirements of paragraph  2 when they are carried out in an independent manner, on the basis of minimum criteria based on Annex VI, and implemented under voluntary agreements concluded between organisations of stakeholders and an appointed body and supervised by the Member State concerned, or other bodies to which the competent authorities have delegated the responsibility concerned, or by the Commission.

Access of market participants offering energy services shall be based on transparent and non-discriminatory criteria.

7.  Enterprises that implement an energy performance contract shall be considered to fulfil the requirements of paragraphs 1 and 2 provided that the energy performance contract covers the necessary elements of the energy management system and complies with the requirements set out in Annex XIV.

8.  Enterprises that implement an environmental management system - certified by an independent body according to the relevant European or international standards - shall be considered to fulfil the requirements of paragraphs 1 and 2, provided that the environmental management system concerned includes an energy audit on the basis of the minimum criteria based on Annex VI.

9.  Energy audits may stand alone or be part of a broader environmental audit. Member States may require that an assessment of the technical and economic feasibility of connection to an existing or planned district heating or cooling network shall be part of the energy audit.

Without prejudice to Union State aid law, Member States may implement incentive and support schemes for the implementation of recommendations from energy audits and similar measures.

9a.  Member States shall promote the implementation of energy management systems and energy audits within the public administration at national, regional and local level.

Article 11a

Data centres

1.  By 15 March 2024 and annually thereafter, Member States shall require owners and operators of every data centre in their territory with an installed IT power demand of at least 100 kW, in particular in the ICT sector, to make the information set out in Annex VIa publicly available on the basis of a harmonised format.

2.  Member States shall submit the information that they have collated pursuant to paragraph 1 to the Commission without delay. The information shall be made public through a database established and operated by the Commission.

3.  The Commission shall adopt guidelines on monitoring and publishing the energy performance of data centres in accordance with Annex VIa. Those guidelines shall contain harmonised definitions for each item of information as well as a uniform measurement methodology, reporting guidelines and a harmonised template for the transfer of the information to allow for consistent reporting across all Member States.

4.  Member States shall encourage owners and operators of every data centre in their territory with an installed IT power demand equal to or greater than 1 MW to take into account the best practices referred to in the most recent version of the European Code of Conduct on Data Centre Energy Efficiency, or in CEN-CENELEC document CLC TR50600-99-1 "Data centre facilities and infrastructures - Part 99-1: Recommended practices for energy management", until the entry into force of the delegated act adopted pursuant to Article 31(3) of this Directive.

5.  By 15 March 2025, the Commission shall assess the available data on the energy efficiency of data centres submitted to it by the Member States pursuant to paragraph 2 and shall submit a report to the European Parliament and the Council. The report shall be accompanied, if appropriate, by a proposal on further measures to improve energy efficiency, including on establishing minimum performance standards and an assessment on the feasibility of transition towards net-zero emission centres, in close consultation with the relevant stakeholders. Such a proposal may establish a timeframe within which existing data centres are to be required to meet minimum performance standards.

Article 12

Metering for natural gas

1.  Member States shall ensure that, in so far as it is technically possible, financially reasonable, and proportionate to the potential energy savings, for natural gas final customers are provided with competitively priced individual meters that accurately reflect the final customer's actual energy consumption and that provide information on actual time of use.

Such a competitively priced individual meter shall always be provided when:

(a)  an existing meter is replaced, unless this is technically impossible or not cost-effective in relation to the estimated potential savings in the long term;

(b)  a new connection is made in a new building or a building undergoes major renovations, as set out in Directive 2010/31/EU.

2.  Where, and to the extent that, Member States implement intelligent metering systems and roll out smart meters for natural gas in accordance with Directive 2009/73/EC:

(a)  they shall ensure that the metering systems provide to final customers information on actual time of use and that the objectives of energy efficiency and benefits for final customers are fully taken into account when establishing the minimum functionalities of the meters and the obligations imposed on market participants;

(b)  they shall ensure the security of the smart meters and data communication, and the privacy of final customers, in compliance with relevant Union data protection and privacy legislation;

(c)  they shall require that appropriate advice and information be given to customers at the time of installation of smart meters, in particular about their full potential with regard to meter reading management and the monitoring of energy consumption.

Article 13

Metering for heating, cooling and domestic hot water

1.  Member States shall ensure that, for district heating, district cooling and domestic hot water, final customers are provided with competitively priced meters that accurately reflect their actual energy consumption.

2.  Where heating, cooling or domestic hot water is supplied to a building from a central source that services multiple buildings or from a district heating or district cooling system, a meter shall be installed at the heat exchanger or point of delivery.

Article 14

Sub-metering and cost allocation for heating, cooling and domestic hot water

1.  In multi-apartment and multi-purpose buildings with a central heating or central cooling source or supplied from a district heating or district cooling system, individual meters shall be installed to measure the consumption of heating, cooling or domestic hot water for each building unit, where technically feasible and cost effective in terms of being proportionate in relation to the potential energy savings.

Where the use of individual meters is not technically feasible or where it is not cost-efficient to measure heat consumption in each building unit, individual heat cost allocators shall be used to measure heat consumption at each radiator unless it is shown by the Member State in question that the installation of such heat cost allocators would not be cost-efficient. In those cases, alternative cost-efficient methods of heat consumption measurement may be considered. The general criteria, methodologies and/or procedures to determine technical non-feasibility and non-cost effectiveness shall be clearly set out and published by each Member State.

2.  In new multi-apartment buildings and in residential parts of new multi-purpose buildings that are equipped with a central heating source for domestic hot water or are supplied from district heating systems, individual meters shall, notwithstanding the first subparagraph of paragraph 1, be provided for domestic hot water.

3.  Where multi-apartment or multi-purpose buildings are supplied from district heating or district cooling, or where own common heating or cooling systems for such buildings are prevalent, Member States shall ensure they have in place transparent, publicly available national rules on the allocation of the cost of heating, cooling and domestic hot water consumption in such buildings to ensure transparency and accuracy of accounting for individual consumption. Where appropriate, such rules shall include guidelines on the manner in which to allocate cost for energy that is used as follows:

(a)  domestic hot water;

(b)  heat radiated from the building installation and for the purpose of heating the common areas, where staircases and corridors are equipped with radiators;

(c)  for the purpose of heating or cooling apartments.

Article 15

Remote reading requirement

1.  For the purposes of Articles 13 and 14, newly installed meters and heat cost allocators shall be remotely readable devices. The conditions of technical feasibility and cost effectiveness set out in Article 14(1) shall apply.

2.  Meters and heat cost allocators which are not remotely readable but which have already been installed shall be rendered remotely readable or replaced with remotely readable devices by 1 January 2027, save where the Member State in question shows that this is not cost-efficient.

Article 16

Billing information for natural gas

1.  Where final customers do not have smart meters as referred to in Directive 2009/73/EC, Member States shall ensure that billing information for natural gas is reliable, accurate and based on actual consumption, in accordance with point 1.1 of Annex VII, where that is technically possible and economically justified.

This obligation may be fulfilled by a system of regular self-reading by the final customers whereby they communicate readings from their meter to the energy supplier. Only when the final customer has not provided a meter reading for a given billing interval shall billing be based on estimated consumption or a flat rate.

2.  Meters installed in accordance with Directive 2009/73/EC shall enable the provision of accurate billing information based on actual consumption. Member States shall ensure that final customers have the possibility of easy access to complementary information on historical consumption allowing detailed self-checks.

Complementary information on historical consumption shall include:

(a)  cumulative data for at least the three previous years or the period since the start of the supply contract if this is shorter. The data shall correspond to the intervals for which frequent billing information has been produced;

(b)  detailed data according to the time of use for any day, week, month and year. These data shall be made available to the final customer via the internet or the meter interface for the period of at least the previous 24 months or the period since the start of the supply contract if this is shorter.

3.  Independently of whether smart meters have been installed or not, Member States:

(a)  shall require that, to the extent that information on the energy billing and historical consumption of final customers is available, it be made available, at the request of the final customer, to an energy service provider designated by the final customer;

(b)  shall ensure that final customers are offered the option of electronic billing information and bills and that they receive, on request, a clear and understandable explanation of how their bill was derived, especially where bills are not based on actual consumption;

(c)  shall ensure that appropriate information is made available with the bill to provide final customers with a comprehensive account of current energy costs, in accordance with Annex VII;

(d)  may lay down that, at the request of the final customer, the information contained in these bills shall not be considered to constitute a request for payment. In such cases, Member States shall ensure that suppliers of energy sources offer flexible arrangements for actual payments;

(e)  shall require that information and estimates for energy costs are provided to consumers on demand in a timely manner and in an easily understandable format enabling consumers to compare deals on a like-for-like basis.

Article 17

Billing and consumption information for heating, cooling and domestic hot water

1.  Where meters or heat cost allocators are installed, Member States shall ensure that billing and consumption information is reliable, accurate and based on actual consumption or heat cost allocator readings, in accordance with points 1 and 2 of Annex VIII for all final users.

This obligation may, where a Member State so provides, save in the case of sub-metered consumption based on heat cost allocators under Article 14, be fulfilled by a system of regular self-reading by the final customer or final user whereby they communicate readings from their meter. Only where the final customer or final user has not provided a meter reading for a given billing interval shall billing be based on estimated consumption or a flat rate.

2.  Member States shall:

(a)  require that, if information on the energy billing and historical consumption or heat cost allocator readings of final users is available, it be made available upon request by the final user, to an energy service provider designated by the final user;

(b)  ensure that final customers are offered the option of electronic billing information and bills;

(c)  ensure that clear and comprehensible information is provided with the bill to all final users in accordance with point 3 of Annex VIII;

(d)  promote cybersecurity and ensure the privacy and data protection of final users in accordance with applicable Union law.

Member States may provide that, at the request of the final customer, the provision of billing information shall not be considered to constitute a request for payment. In such cases, Member States shall ensure that flexible arrangements for actual payment are offered.

3.  Member States shall decide who is to be responsible for providing the information referred to in paragraphs 1 and 2 to final users without a direct or individual contract with an energy supplier.

Article 18

Cost of access to metering and billing information for natural gas

Member States shall ensure that final customers receive all their bills and billing information for energy consumption free of charge and that final customers have access to their consumption data in an appropriate way and free of charge.

Article 19

Cost of access to metering and billing and consumption information for heating, cooling and domestic hot water

1.  Member States shall ensure that final users receive all their bills and billing information for energy consumption free of charge and that final users have access to their consumption data in an appropriate way and free of charge.

2.  Notwithstanding paragraph 1 of this Article, the distribution of costs of billing information for the individual consumption of heating, cooling and domestic hot water in multi-apartment and multi-purpose buildings pursuant to Article 14 shall be carried out on a non-profit basis. Costs resulting from the assignment of that task to a third party, such as a service provider or the local energy supplier, covering the measuring, allocation and accounting for actual individual consumption in such buildings, may be passed onto the final users to the extent that such costs are reasonable.

3.  In order to ensure reasonable costs for sub-metering services as referred to in paragraph 2, Member States may stimulate competition in that service sector by taking appropriate measures, such as recommending or otherwise promoting the use of tendering and/or the use of interoperable devices and systems facilitating switching between service providers.

CHAPTER IV

CONSUMER INFORMATION AND EMPOWERMENT

Article 20

Basic contractual rights for heating, cooling and domestic hot water

1.  Without prejudice to Union rules on consumer protection, in particular Directive 2011/83/EU of the European Parliament and of the Council(65) and Council Directive 93/13/EEC(66), Member States shall ensure that final customers and, where explicitly referred to, final users are granted the rights provided for in paragraphs 2 to 8 of this Article.

2.  Final customers shall have the right to a contract with their supplier that specifies:

(a)  the identity and address of the supplier;

(b)  the services provided and the service quality levels offered;

(c)  the types of maintenance service offered;

(d)  the means by which up-to-date information on all applicable tariffs, maintenance charges and bundled products or services may be obtained;

(e)  the duration of the contract, the conditions for renewal and termination of the contract and services, including products or services that are bundled with those services, and whether terminating the contract without charge is permitted;

(f)  any compensation and the refund arrangements which apply if contracted service quality levels are not met, including inaccurate or delayed billing;

(g)  the method of initiating an out-of-court dispute settlement procedure in accordance with Article 21;

(h)  information relating to consumer rights, including information on complaint handling and all of the information referred to in this paragraph, which is clearly communicated on the bill or the undertaking's web site and includes the contact details or link to the web site of the single point of contact referred to in Article 21.

Conditions shall be fair and known in advance. In any case, this information shall be provided prior to the conclusion or confirmation of the contract. Where contracts are concluded through intermediaries, the information relating to the matters set out in this paragraph shall also be provided prior to the conclusion of the contract.

Final customers and final users shall be provided with a summary of the key contractual conditions in a comprehensible manner and in concise and simple language.

2a.  Suppliers shall provide final customers and final users with a copy of the contract, transparent information on applicable prices and tariffs and on standard terms and conditions in respect of access to and use of heating, cooling and domestic hot water services.

3.  Final customers shall be given adequate notice of any intention to modify contractual conditions. Suppliers shall notify their final customers, in a transparent and comprehensible manner, directly of any adjustment in the supply price and of the reasons and preconditions for the adjustment and its scope, at an appropriate time no later than two weeks, or no later than one month in the case of household customers, before the adjustment comes into effect. Final customers shall be informed of their right to terminate a contract if they do not accept the new contractual conditions or adjustments in the price notified to them by the supplier in accordance to the contract. Final customers shall inform final users of the intended contractual changes without delay.

4.  Suppliers shall offer final customers a wide choice of payment methods. Such payment methods shall not unduly discriminate between customers. Any difference in charges related to payment methods or prepayment systems shall be objective, non-discriminatory and proportionate and shall not exceed the direct costs borne by the payee for the use of a specific payment method or a prepayment system, in line with Article 62 of Directive (EU) 2015/2366 of the European Parliament and of the Council(67).

5.  Pursuant to paragraph 6, household customers who have access to prepayment systems shall not be placed at a disadvantage by the prepayment systems.

6.  Suppliers shall offer final customers and, where applicable, final users fair and transparent general terms and conditions, which shall be provided in plain and unambiguous language and shall not include non-contractual barriers to the exercise of customers' rights, such as excessive contractual documentation. Final users shall be provided access to these general terms and conditions upon request. Final customers and final users shall be protected against unfair or misleading selling methods. Final customers with disabilities shall be provided all relevant information on their contract with their supplier in accessible formats.

7.  Final customers and final users shall have the right to a good standard of service and complaint handling by their suppliers. Suppliers shall handle complaints in a simple, fair and prompt manner.

7a.  Competent authorities responsible for the enforcement of the consumer protection measures laid down in this Directive shall be independent from market interests and shall be able to take administrative decisions.

Article 21

Information and awareness raising

1.  Member States, in cooperation with regional and local authorities, shall ensure that information on available energy efficiency improvement measures, individual actions and financial and legal frameworks is transparent, accessible and widely disseminated to all relevant market actors, such as final customers, final users, consumer organisations, civil society representatives, renewable energy communities, citizen energy communities, local and regional authorities, energy agencies, social service providers, builders, architects, engineers, environmental and energy auditors, and installers of building elements as defined in by Article 2(9) of Directive 2010/31/EU.

2.  Member States shall take appropriate measures to promote and facilitate an efficient use of energy by final customers and final users. These measures shall be part of a national strategy  such as the integrated national energy and climate plan in accordance with Regulation (EU) 2018/1999, or the long term renovation strategy as defined in Directive ... [recast EPBD - 2021/0426 (COD)].

For the purposes of this Article, these measures shall include a range of instruments and policies to promote behavioural change such as:

(i)  fiscal incentives;

(ii)  access to finance,  vouchers,  grants or subsidies;

(ii a)   the availability of publicly-supported energy audits and tailored-made advisory services and support for household consumers, in particular vulnerable customers, people affected by energy poverty and, where applicable, people living in social housing;

(ii b)   tailored-made advisory services for SMEs and microenterprises;

(iii)  information provision  in accessible form to people with disabilities ;

(iv)  exemplary projects;

(v)  workplace activities;

(vi)  training activities;

(vii)  digital tools;

(vii a)   engagement strategies.

For the purposes of this article, these measures shall also include but not be limited to the following ways and means to engage market actors such as those referred in paragraph 1:

(i)  creation of one-stop shops or similar mechanisms for the provision of technical, administrative and financial advice and assistance on energy efficiency, including onsite energy checks for households, energy renovations of buildings, information on the replacement of old and inefficient heating systems with modern and more efficient appliances and the take-up of renewable energy and energy storage for buildings to final customers and final users, especially household and small non-household ones, including SMEs and microenterprises;

(i a)   cooperation with private actors that provide services such as energy audits, financing solutions and execution of energy renovations and promotion of such services;

(ii)  communication of cost-effective and easy-to-achieve changes in energy use;

(iii)  dissemination of  information on energy efficiency measures  and financing instruments;

(iv)  provision of single points of contact, to provide final customers and final users with all necessary information concerning their rights, the applicable law and dispute settlement mechanisms available to them in the event of a dispute. Such single points of contact may be part of general consumer information points.

2a.  For the purpose of this Article, Member States shall engage with relevant authorities and private stakeholders for the purpose of developing dedicated local, regional or national one-stop shops for energy efficiency. Those one-stop shops shall be cross-sectoral and interdisciplinary and lead to locally developed projects by:

(a)   advising and providing streamlined information on technical and financial possibilities and solutions to households, SMEs, microenterprises, public bodies;

(b)   connecting potential projects with market players, in particular smaller-scale projects;

(c)   advising on energy consumption behaviour with the aim of actively engaging the consumers;

(d)   providing information on training programmes and education to ensure more energy efficiency professionals and to re-skill and up-skill professionals in order to meet the market needs;

(e)   collecting and submitting typology aggregated data from energy efficiency projects facilitated by the one-stop-shops to the Commission, which shall be published by the Commission in a report every second year in order to share experiences and enhance cross-border cooperation between Member States in order to promote best practice examples from different building, housing and enterprise typologies;

(f)   providing holistic support to all households, with a special attention to households in energy poverty and worst performing buildings, as well as to accredited companies and installers providing retrofit services, adapted to different housing typologies and geographical scope, and providing support covering the different stages of the retrofit project in particular to facilitate the implementation of Minimum Energy Performance Standards provided for in Article 9 of Directive ... [recast EPBD - 2021/0426 (COD)];

(g)   developing services for energy poor, vulnerable consumers and low-income households.

Member States shall work together with local and regional authorities to encourage cooperation among public bodies, energy agencies and community-led initiatives and to promote, develop and upscale one-stop shops through an integrated process. The Commission shall provide Member States with guidelines to develop those one-stop shops with the aim of creating a harmonised approach throughout the Union.

3.  Member States shall establish appropriate conditions for market  actors  to provide adequate and targeted information and advice to  final  consumers  , including vulnerable customers, people affected by energy poverty and, where applicable, people living in social housing on energy efficiency, SMEs and microenterprises.

4.  Member States shall ensure that final customers, final users, vulnerable customers, people affected by energy poverty and, where applicable, people living in social housing, have access to simple, fair, transparent, independent, effective and efficient out-of-court mechanisms for the settlement of disputes concerning rights and obligations established under this Directive, through an independent mechanism such as an energy ombudsperson or a consumer body, or through a regulatory authority. Where the final customer is a consumer as defined in Article 4(1)(a) of Directive 2013/11/EU of the European Parliament and of the Council(68), such out-of-court dispute settlement mechanisms shall comply with the requirements set out therein.

Where necessary, Member States shall ensure that alternative dispute resolution entities cooperate to provide simple, fair, transparent, independent, effective and efficient out-of-court dispute settlement mechanisms for any dispute that arises from products or services that are tied to, or bundled with, any product or service falling under the scope of this Directive.

The participation of undertakings in out-of-court dispute settlement mechanisms for household customers shall be mandatory unless the Member State demonstrates to the Commission that other mechanisms are equally effective.

5.  Without prejudice to the basic principles of their property and tenancy law,  Member States shall take  necessary  measures to remove regulatory and non-regulatory barriers to energy efficiency, as regards the split of incentives between the  owners  and  tenants  or among owners  of a building or building unit , with a view to ensuring that these parties are not deterred from making efficiency-improving investments that they would otherwise have made by the fact that they will not individually obtain the full benefits or by the absence of rules for dividing the costs and benefits between them;

Measures to remove  such  barriers may include providing incentives, including on financing and the possibility to turn to third-party financing solutions, repealing or amending legal or regulatory provisions, or adopting guidelines and interpretative communications, or simplifying administrative procedures  , including national rules and measures regulating decision-making processes in multi-owner properties . The measures may be combined with the provision of education, training and specific information and technical assistance on energy efficiency to market actors such as those referred in paragraph 1.

Member States shall take appropriate measures to support a multilateral dialogue with the participation of relevant local and regional authorities, public and social partners such as owners and tenants organisations, consumer organisations, energy distributors or retail energy sales companies, ESCOs, renewable energy communities, citizen energy communities local and regional authorities, relevant public authorities and agencies and the aim to set out proposals on jointly accepted measures, incentives and guidelines pertinent to the split of incentives between the owners and tenants or among owners of a building or building unit.

Each Member State shall report such barriers and the measures taken in its long-term renovation strategy pursuant to Article 2a of Directive 2010/31/EU and Regulation (EU) 2018/1999.

6.  The Commission shall encourage the exchange and wide dissemination of information on good energy efficiency practices and methodologies and provide technical assistance to mitigate the split of incentives in Member States.

Article 21a

Partnerships for energy efficiency

1.  By ... [12 months after the date of entry into force of this Directive], the Commission shall establish European sector-specific energy efficiency partnerships by bringing together key stakeholders, including the social partners, in sectors such as ICT, transport, financial and building sectors, in an inclusive and representative manner. The Commission shall appoint a chair for each European sector-specific energy efficiency partnership.

2.  The partnerships referred to in paragraph 1 shall facilitate climate dialogues and encourage sectors to draw up energy efficiency roadmaps in order to map available measures and technological options to achieve energy efficiency savings, prepare for renewable energy and decarbonise the sectors. Such roadmaps shall make a valuable contribution in assisting sectors in planning the necessary investments needed to reach the objectives of this Directive and of Regulation (EU) 2021/1119 as well as facilitate cross-border cooperation between actors to strengthen the internal market of the Union.

Article 22

Empowering and protecting vulnerable customers and alleviating energy poverty

1.  Member States shall develop a robust long-term strategy and take appropriate measures to empower and protect people affected by energy poverty, vulnerable customers and low-income households and, where applicable, people living in social housing.

In defining the concept of vulnerable customers pursuant to Articles 28(1) and 29 of Directive (EU) 2019/944 and Article 3(3) of Directive 2009/73/EC, Member States shall take into account final users.

2.  Member States shall implement energy efficiency improvement measures and related consumer protection or information measures, in particular those set out in Article 21 and Article 8(3), as a priority among people affected by energy poverty, vulnerable customers, low-income households and, where applicable, people living in social housing to alleviate energy poverty. Member States shall introduce proper monitoring and evaluation instruments to ensure that people affected by energy poverty are supported by energy efficiency improvement measures.

3.  To support vulnerable customers, people affected by energy poverty, low-income households, and, where applicable, people living in social housing, Member States shall:

a)  implement energy efficiency improvement measures to mitigate distributional effects from other policies and measures, such as taxation measures implemented according to Article 10 of this Directive, or the application of emission trading in the buildings and transport sector according to the ETS Directive [COM(2021) 551 final, 2021/0211 (COD)];

(aa)   ensure that measures to promote or facilitate energy efficiency, in particular those concerning buildings and mobility, do not lead to a disproportionate increase in the cost of these services or to greater social exclusion;

b)  make the best possible use of public funding available at national and Union level, including, where applicable, the financial contribution Member State received from the Social Climate Fund pursuant to [Article 9 and Article 14 of the Social Climate Fund Regulation, COM 2021 568 final], and revenues from allowance auctions from emission trading pursuant to the EU ETS [COM(2021) 551 final, 2021/0211 (COD)], for investments into energy efficiency improvement measures as priority actions;

c)  where applicable, carry out early, forward-looking investments into energy efficiency improvement measures such as the retrofitting of heating, cooling and ventilation systems, before distributional impacts from other policies and measures show effect;

d)  foster technical assistance that facilitates the exchange of best practices on reforms of the regulatory frameworks like property and rental laws in relation to energy efficiency measures and the roll-out of enabling funding and financial tools, such as on-bill schemes, local loan-loss reserve, guarantee funds, funds targeting deep renovations and renovations with minimum energy gains;

e)  foster technical assistance for social actors to promote vulnerable customer´s active engagement in the energy market, and positive changes in their energy consumption behaviour;

f)  ensure access to finance, grants or subsidies bound to minimum energy gains and facilitate access to affordable bank loans or dedicated credit lines.

3a.  Member States shall take appropriate measures to protect people affected by energy poverty, low-income households, vulnerable customers and, where applicable, people living in social housing against unfair price setting and price increases in the supply of heating, cooling and domestic hot water.

4.  Member States shall establish a network of experts from various sectors such as health sector, energy sector, building sector, heating and cooling sector and social sectors, including local and regional energy agencies where applicable, to develop strategies to support local and national decision makers in implementing energy efficiency improvement measures alleviating energy poverty, measures to generate robust long term solutions to mitigate energy poverty and to develop appropriate technical assistance and financial tools. Member States shall strive to ensure a network of experts’ composition that ensures gender balance and reflects the perspectives of people in all their diversity.

The same network of experts shall support Member States:

a)  to establish national definitions, indicators and criteria of energy poverty, energy poor and concepts of vulnerable customers, including final users;

b)  to develop or improve relevant indicators and data sets, pertinent to the issue of energy poverty, that should be used and reported upon;

c)  to set up methods and measures to ensure affordability, the promotion of housing cost neutrality, or ways to ensure that public funding invested in energy efficiency improvement measures benefit both, owners and tenants, of buildings and building units, in particular regarding vulnerable customers, people affected by energy poverty, and, where applicable, people living in social housing;

d)  to assess, and where applicable, propose measures to prevent or remedy situations in which particular groups are more affected or more at risk of being affected by energy poverty or more susceptible to the adverse impacts of energy poverty, such as women, persons with disabilities, older persons, children, and persons with a minority racial or ethnic background.

CHAPTER V

EFFICIENCY IN ENERGY SUPPLY

Article 23

Heating and cooling assessment and planning

1.  As part of its integrated national energy and climate plan, its subsequent integrated national energy and climate plan and respective progress reports notified in accordance with Regulation (EU) 2018/1999, each Member State shall notify to the Commission a comprehensive heating and cooling assessment, including the mapping of areas identified for new heating and cooling networks. That comprehensive assessment shall contain the information set out in Annex IX and shall be accompanied with the assessment carried out pursuant to Article 15(7) of Directive (EU) 2018/2001.

2.  Member States shall ensure that all relevant parties, including public and private stakeholders, are given the opportunity to participate in the preparation of heating and cooling plans, the comprehensive assessment and the policies and measures.

3.  For the purpose of the assessment referred to in paragraph 1, Member States shall carry out a cost-benefit analysis covering their territory and based on climate conditions, economic feasibility and technical suitability. The cost-benefit analysis shall be capable of facilitating the identification of the most resource- and cost-efficient solutions to meeting heating and cooling needs, taking into account overall system efficiency, power system adequacy and resiliency, and the energy efficiency first principle. That cost-benefit analysis may be part of an environmental assessment under Directive 2001/42/EC of the European Parliament and of the Council (69).

Member States shall designate the competent authorities responsible for carrying out the cost-benefit analyses, provide the detailed methodologies and assumptions in accordance with Annex X and establish and make public the procedures for the economic analysis.

4.  Where the assessment referred to in paragraph 1 and the analysis referred to in paragraph 3 identify a potential for the application of high-efficiency cogeneration and/or efficient district heating and cooling and/or power generation from waste heat for self-consumption whose benefits exceed the costs, Member States, or the local and regional authorities responsible, shall take adequate measures for efficient district heating and cooling infrastructure to be developed and/or to encourage the development of installations for the conversion of waste excess heat to power for self-consumption and/or to accommodate the development of high-efficiency cogeneration and the use of heating and cooling from waste heat and renewable energy sources in accordance with paragraph 1, and Article 24(4) and (6).

Where the assessment referred to in paragraph 1 and the analysis referred to in paragraph 3 do not identify a potential whose benefits exceed the costs, including the administrative costs of carrying out the cost-benefit analysis referred to in Article 24(4), the Member State together with the local and regional authorities concerned may exempt installations from the requirements laid down in that paragraph.

5.  Member States shall adopt policies and measures which ensure that the potential identified in the comprehensive assessments carried out pursuant to paragraph 1 is realised. These policies and measures shall include at least the elements set out in Annex IX. Each Member State shall notify those policies and measures as part of the update of its integrated national energy and climate plans, its subsequent integrated national energy and climate plan, and respective progress reports notified in accordance with Regulation (EU) 2018/1999.

When preparing its policies and measures, Member States shall collect information on cogeneration plants and units in existing district heating and cooling networks and carry out an assessment of the potential for energy savings. That information shall contain at least the data on system efficiency, system losses, connection density, network losses and temperature spread, primary energy and final energy consumption, emission factors and upstream chains of the energy sources. That data shall be published and Member States shall make that data publicly available.

6.  Member States shall ensure that regional and local authorities to prepare local heating and cooling plans at least in municipalities having a total population of at least 35 .000 and encourage municipalities with a lower population to prepare such plans. Those plans shall:

(a)  be based on the information and data provided in the comprehensive assessments carried out pursuant to paragraph 1 and provide an estimate and mapping of the potential for increasing energy efficiency, including via low-temperature district heating readiness, high efficiency cogeneration, waste heat recovery, and renewable energy in heating and cooling in that particular area; in addition, an analysis of the heating and cooling appliances in local building stocks shall be conducted that takes into account the area-specific potentials for energy efficiency measures and that develops renovation roadmap templates for similar building types with the aim of a rapid, cost-efficient and mutually coordinated transformation of buildings and supply infrastructure;

(aa)  be fully compliant with the energy efficiency first principle;

(b)  include a strategy for the use of the identified potential pursuant to paragraph 6(a);

(c)  be prepared with the involvement of all relevant regional or local stakeholders and ensure participation of general public, including operators of local energy infrastructure at an early stage;

(ca)   take into account the existing energy infrastructure for gas, heat and electricity;

(d)  consider the common needs of local communities and multiple local or regional administrative units or regions;

(da)  assess the role of energy communities and other consumer-led initiatives that can actively contribute to the implementation of local heating and cooling projects;

(db)  include a strategy to prioritise people affected by energy poverty, low-income households, vulnerable consumers and, where applicable, people living in social housing as referred to in Article 22, including market analysis to identify and understand the needs of target groups and propose tailored programmes;

(dc)  assess how to finance the implementation of policies and measures identified and provide for financial mechanisms allowing consumers to shift to renewable heating and cooling;

(dd)  consider energy affordability, security of supply, power system adequacy and resiliency;

(e)  include a trajectory to achieve the goals of the plans in line with climate neutrality and the monitoring of the progress of implementation of policies and measures identified;

(ea)   develop a strategy to plan the replacement of old and inefficient heating and cooling appliances in public bodies with highly efficient alternatives with the aim of phasing out fossil fuels;

(eb)  assess potential synergies with the plans of neighbouring regional or local authorities to encourage joint investments and cost efficiency.

Member States shall ensure that all relevant parties, including public and relevant private stakeholders, are given the opportunity to participate the preparation of heating and cooling plans, the comprehensive assessment and the policies and measures.

For this purpose, Member States shall develop recommendations supporting the regional and local authorities to implement policies and measures in energy efficient and renewable energy based heating and cooling at regional and local level utilising the potential identified. Member States shall support regional and local authorities to the utmost extent possible by any means including financial support and technical support schemes. Member States shall ensure that heating and cooling plans are aligned with other local climate, energy and environment planning requirements, in order to avoid administrative burden for local and regional authorities and encourage the effective implementation of the plans.

6a.  Local heating and cooling plans may be carried out jointly by a group of several neighbouring local authorities provided that the geographical and administrative context as well as the heating and cooling infrastructure is appropriate.

6b.  Implementation of local heating and cooling plans shall be verified and assessed by a competent authority. Where implementation is deemed to be insufficient, based on the trajectory and the monitoring pursuant to paragraph 6, point (e), the competent authority shall propose measures to close the implementation gap.

Article 24

Heating and cooling supply

1.  In order to increase primary energy efficiency and the share of renewable energy in heating and cooling supply, an efficient district heating and cooling system is a system which meets the following criteria:

a.  until 31 December 2027, a system using at least 50% renewable energy, 50% waste heat, 75% cogenerated heat or 50% of a combination of such energy and heat going into the network;

b.  from 1 January 2028, a system using at least 50% renewable energy, 50% waste heat, 80% of high-efficiency cogenerated heat or at least a combination of such thermal energy going into the network where the share of renewable energy is at least 5% and the total share of renewable energy, waste heat or high-efficiency cogenerated heat is at least 50%;

c.  from 1 January 2035, a system using at least 50% renewable energy and waste heat, where the share of renewable energy is at least 20%;

d.  from 1 January 2045, a system using at least 75 % renewable energy and waste heat, where the share of renewable energy is at least 40%;

e.  from 1 January 2050, a system using only renewable energy and waste heat, where the share of renewable energy is at least 60%.

f.  in line with the energy efficiency first principle, where the share of waste heat exceeds the criteria in points (c), (d) and (e), and where the waste heat would otherwise be lost, waste heat may replace any of the other energy sources;

g.  an assessment has been made of the maximum needed temperatures in distribution grid.

2.  Member States shall ensure that where a district heating and cooling system is built or substantially refurbished it meets the criteria set out in paragraph 1 applicable at such time when it starts or continues its operation after the refurbishment. In addition, Member States shall ensure that when a district heating and cooling system is built or substantially refurbished, there is no increase in the use of fossil fuels other than natural gas in existing heat sources compared to the annual consumption averaged over the previous three calendar years of full operation before refurbishment, and that any new heat sources in that system do not use fossil fuels ▌. Member States shall also ensure that the geographic routing of existing district heating and cooling systems are mapped and published.

3.  Member States shall ensure that as from 1 January 2025, and every five years thereafter, operators of all existing district heating and cooling systems with a total energy output exceeding 5 MW and which do not meet the criteria set out in paragraph 1(b) to (e), prepare a plan to increase primary energy efficiency and renewable energy and to reduce distribution losses. The plan shall include measures to meet the criteria set out in paragraph 1(b) to (e) and shall be approved by the competent authority.

3a.  Member States shall ensure that a data centre with a total rated energy input exceeding 100 kW utilises the waste heat or other waste heat recovery applications unless it can show that it is not technically or economically feasible in accordance to the assessment referred to in paragraph 4.

4.  In order to assess the economic feasibility of increasing energy efficiency of heat and cooling supply, Member States shall ensure that  an installation level cost-benefit analysis in accordance with Annex X is carried out  where the following installations are newly planned or substantially refurbished and their material costs have not yet been incurred:

(a)  a thermal electricity generation installation with  an average annual  total  energy  input exceeding  5  MW , in order to assess the cost and benefits of providing for the operation of the installation as a high-efficiency cogeneration installation;

(b)  an industrial installation with an average annual total energy input exceeding 5 MW in order to assess utilisation of the waste heat on-site and off-site;

(c)  service facility with an annual average total energy input exceeding 5 MW, such as wastewater treatment facilities and LNG facilities in order to assess utilisation of waste heat on-site and off-site;

(d)  a data centre with a total rated energy input exceeding 100 kW level, to assess the technical feasibility, cost-efficiency and impact on energy efficiency and local heat demand, including seasonal variation, of utilising the waste heat to satisfy economically justified demand, and of the connection of that installation to a district heating network or an efficient/RES-based district cooling system or other waste heat recovery applications. The analysis shall consider cooling system solutions that allow removing or capturing the waste heat at useful temperature level with minimal ancillary energy inputs.

Member States shall ensure that regulatory barriers for the utilisation of waste heat are removed and sufficient support for the uptake of waste heat is provided where the installations referred to in points (a) to (d) are newly planned or refurbished. For the purposes of assessing on-site waste heat for the purpose of points (b) to (d), energy audits in line with Annex VI may be carried out instead of the cost benefit analysis set out in this paragraph.

The fitting of equipment to capture carbon dioxide produced by a combustion installation with a view to its being geologically stored as provided for in Directive 2009/31/EC shall not be considered as refurbishment for the purpose of points (b) and (c) of this paragraph.

Member States shall require the cost-benefit analysis to be carried out in cooperation with the companies responsible for the operation of the facility.

5.  Member States may exempt from paragraph 4:

(a)  those peak load and back-up electricity generating installations which are planned to operate under 1500 operating hours per year as a rolling average over a period of five years, based on a verification procedure established by the Member States ensuring that this exemption criterion is met;

(b)  installations that need to be located close to a geological storage site approved under Directive 2009/31/EC;

(c)  data centres whose waste heat is or will be used in a district heating network or directly for space heating, domestic hot water preparation or other uses in the building or group of buildings where it is located or other uses in a relevant zone around the data centres.

Member States may also lay down thresholds, expressed in terms of the amount of available useful waste heat, the demand for heat or the distances between industrial installations and district heating networks, for exempting individual installations from the provisions of points (c) and (d) of paragraph 4.

Member States shall notify exemptions adopted under this paragraph to the Commission.

6.  Member States shall adopt authorisation criteria as referred to in Article 8 of Directive (EU) 2019/944, or equivalent permit criteria, to:

(a)  take into account the outcome of the comprehensive assessment referred to in Article 23(1);

(b)  ensure that the requirements of paragraph 4 are fulfilled;

(c)  take into account the outcome of cost-benefit analysis referred to in paragraph 4.

7.  Member States may exempt individual installations from being required, by the authorisation and permit criteria referred to in paragraph 6, to implement options whose benefits exceed their costs, if there are imperative reasons of law, ownership or finance for doing so. In these cases the Member State concerned shall submit a reasoned notification of its decision to the Commission within three months of the date of taking it.  The Commission may issue an opinion on the notification within three months of its receipt.

8.  Paragraphs 4, 5, 6 and 7 of this Article shall apply to installations covered by Directive 2010/75/EU without prejudice to the requirements of that Directive.

9.  Member States shall collect information on cost-benefit analyses carried out in accordance with paragraph 4 points (a), (b), (c) and (d) of this Article. That information should contain at least the data on available heat supply amounts and heat parameters, number of planned operating hours annually and geographical location of the sites. That data shall be published with the due respect of its potential sensitivity.

10.  On the basis of the harmonised efficiency reference values referred to in point (f) of Annex III, Member States shall ensure that the origin of electricity produced from high-efficiency cogeneration can be guaranteed according to objective, transparent and non-discriminatory criteria laid down by each Member State. They shall ensure that this guarantee of origin complies with the requirements and contains at least the information specified in Annex XI. Member States shall mutually recognise their guarantees of origin, exclusively as proof of the information referred to in this paragraph. Any refusal to recognise a guarantee of origin as such proof, in particular for reasons relating to the prevention of fraud, must be based on objective, transparent and non-discriminatory criteria. Member States shall notify the Commission of such refusal and its justification. In the event of refusal to recognise a guarantee of origin, the Commission may adopt a decision to compel the refusing party to recognise it, in particular with regard to objective, transparent and non-discriminatory criteria on which such recognition is based.

The Commission shall be empowered to review, by means of delegated acts in accordance with Article 31 of this Directive, the harmonised efficiency reference values laid down in Commission Delegated Regulation (EU) 2015/2402(70) .

11.  Member States shall ensure that any available support for cogeneration is subject to the electricity produced originating from high-efficiency cogeneration and the waste heat being effectively used to achieve primary energy savings. Public support to cogeneration and district heating generation and networks shall be subject to State aid rules, where applicable.

Article 25

Energy transformation, transmission and distribution

1.  National energy regulatory authorities shall apply the energy efficiency first principle in accordance with Article 3 of this Directive in carrying out the regulatory tasks specified in Directives (EU) 2019/944 and 2009/73/EC regarding their decisions on the operation of the gas and electricity infrastructure, including their decisions on network tariffs, without prejudice to the principles of non-discrimination and cost-effectiveness. In addition to the energy efficiency first principle, national energy regulatory authorities shall take into account cost efficiency, system efficiency and security of supply and adapt a lifecycle approach safeguarding the Union’s climate targets and sustainability.

2.  Member States shall ensure that gas and electricity transmission and distribution system operators apply the energy efficiency first principle in accordance with Article 3 of this Directive and in accordance with the Union’s climate and sustainability targets in their network planning, network development and investment decisions. Demand-side flexibility shall be a central part of the assessment of network planning and operation. While taking security of supply and market integration into account, Member States shall ensure that transmission system operators and distribution system operators ▌invest in future-proof assets to contribute to climate change mitigation. National regulatory authorities may provide methodologies and guidance on how to assess alternatives in the cost-benefit analysis in close cooperation with the transmission system operators and distribution system operators, which can share key technical expertise, taking into account wider benefits, and verify the implementation of the energy efficiency first principle by the transmission system operators or distribution system operators when approving, verifying or monitoring the projects submitted by the transmission system operators or distribution system operators.

3.  Member States shall ensure that transmission and distribution system operators monitor and quantify the overall volume of network losses relating to the network they operate and take cost-effective measures to increase network efficiency and address infrastructure developments needs and the losses resulting from increased electrification at both demand and production side. Transmission and distribution system operators shall report those measures ▌to the national energy regulatory authority. ▌Member States shall ensure that transmission and distribution network operators assess energy efficiency improvement measures with regard to their existing gas or electricity transmission or distribution systems and improve energy efficiency in infrastructure design and operation, especially in terms of smart grid deployment. Member States shall encourage transmission and distribution system operators to develop innovative solutions to improve the efficiency and sustainability, including energy efficiency, of existing and future systems through incentive based regulations.

4.  National energy regulatory authorities shall include a specific section on the progress achieved in energy efficiency improvements regarding the operation of the gas and electricity infrastructure in the annual report drawn up pursuant to Article 59(1)(i) of Directive (EU) 2019/944 and pursuant to Article 41 of Directive (EU) 2009/73/EC. In these reports, national energy regulatory authorities shall provide an assessment of the overall efficiency in the operation of the gas and electricity infrastructure, the measures carried out by transmission and distribution system operators, and, where applicable, provide recommendations for energy efficiency improvements, including cost-efficient alternatives that reduce peak loads and overall electricity use.

5.  For electricity, Member States shall ensure that network regulation and network tariffs fulfil the criteria in Annex XII, taking into account guidelines and codes developed pursuant to Regulation (EU) 2019/943.

6.  Member States may permit components of schemes and tariff structures with a social aim for net-bound energy transmission and distribution, provided that any disruptive effects on the transmission and distribution system are kept to the minimum necessary and are not disproportionate to the social aim.

7.  National regulatory authorities shall ensure the removal of those incentives in transmission and distribution tariffs that are detrimental to the energy efficiency and demand response of the generation, transmission, distribution and supply of electricity and gas. Member States shall ensure efficiency in infrastructure design and the operation of the existing infrastructure and, within the framework of Directive (EU) 2019/944, that tariffs allow suppliers to improve consumer participation in system efficiency.

8.  Transmission system operators and distribution system operators shall comply with the requirements set out in Annex XII.

9.  Where appropriate, national regulatory authorities may require transmission system operators and distribution system operators to encourage high-efficiency cogeneration to be sited close to areas of heat demand by reducing the connection and use-of-system charges.

10.  Member States may allow producers of electricity from high-efficiency cogeneration wishing to be connected to the grid to issue a call for tender for the connection work.

11.  When reporting under Directive 2010/75/EU, and without prejudice to Article 9(2) of that Directive, Member States shall consider including information on energy efficiency levels of installations undertaking the combustion of fuels with total rated thermal input of 50 MW or more in the light of the relevant best available techniques developed in accordance with Directive 2010/75/EU.

CHAPTER VI

HORIZONTAL PROVISIONS

Article 26

Availability of qualification, accreditation and certification schemes

1.  Member States shall ensure the appropriate level of competences for energy efficiency professions that corresponds to the market needs. Member States in close cooperation with the social partners shall ensure that certification and/or equivalent qualification schemes, including, where necessary, suitable training programmes, are available for energy efficiency professions including providers of energy services, providers of energy audits, energy managers, independent experts and installers of building elements pursuant to Directive 2010/31/EU, and are reliable and contribute to national energy efficiency objectives and the overall EU decarbonisation objectives.

Providers of certification, and/or equivalent qualification schemes, including, where necessary, suitable training programmes shall be accredited according to Regulation (EC) No 765/2008(71).

1a.  Member States shall promote certification, training and education programmes to ensure the appropriate level of competences for energy efficiency professions that correspond to market needs. Member States shall put in place measures to promote participation in such programmes, in particular by SMEs and self-employed persons. By ... [12 months after the date of entry into force of this Directive], the Commission shall set up a Union-wide campaign to attract more people to energy efficiency professions and ensure equal access for women.

1b.  By ... [12 months after the date of entry into force of this Directive], the Commission shall set up a single point of access platform providing support and sharing of knowledge to ensure the appropriate level of qualified professionals to reach the Union’s climate and energy targets. The platform shall gather Member States, social partners, education institutions, academia and other relevant stakeholders to foster and promote best practices to ensure more energy efficiency professionals and re-skill or up-skill existing professionals in order to meet market needs.

2.  Member States shall ensure that national certification, or equivalent qualification schemes, including, where necessary, training programmes, are based on existing European or international standards.

3.  Member States shall make publicly available the certification, or equivalent qualification schemes, or suitable training programmes referred to in paragraph 1 and shall cooperate among themselves and with the Commission on comparisons between, and recognition of, the schemes.

Member States shall take appropriate measures to make consumers aware of the availability of the schemes in accordance with Article 27(1).

4.  Member States shall assess by 31 December 2024 and every two years thereafter whether the schemes ensure the necessary level of competences and gender balance for energy services providers, energy auditors, energy managers, independent experts and installers of building elements pursuant to Directive 2010/31/EU. They shall also assess the gap between available and needed professionals. They shall make the assessment and recommendations thereof publically available.

Article 27

Energy services

1.  Member States shall promote the energy services market and access to it for SMEs by disseminating clear and easily accessible information on:

(a)  available energy service contracts and clauses that should be included in such contracts to guarantee energy savings and final customers’ rights;

(b)  financial instruments, incentives, grants, revolving funds, guarantees, insurance schemes,  and loans to support energy efficiency service projects;

(c)  available energy services providers that are qualified and/or certified and their qualifications and/or certifications in accordance with Article 26.

(d)  available monitoring and verification methodologies and quality control schemes.

2.  Member States shall encourage the development of quality labels, inter alia, by trade associations, based on European or international standards where relevant;

3.  Member States shall make publicly available and regularly  update a list of available energy service providers who are qualified and/or certified and their qualifications and/or certifications in accordance with Article 26, or  provide an interface where energy service providers can provide information.

4.  Member States shall ensure that public bodies use energy performance contracting for renovations of large buildings. For renovations of large non-residential and public residential buildings with a useful floor area above 500 m2, and of buildings for social purposes, Member States shall ensure that public bodies assess the feasibility of using energy performance contracting and other performance-based energy services.

Member States may encourage public bodies to combine energy performance contracting with expanded energy services including demand response and storage, in order to ensure energy savings and maintain the obtained results over time through continuous monitoring, effective operation and maintenance.

5.  Member States shall support the public sector in taking up energy service offers, in particular for building refurbishment, by:

(a)  providing model contracts for energy performance contracting which include at least the items listed in Annex XIII  and take into account the existing European or international standards, available tendering guidelines and Eurostat guide to the statistical treatment of energy performance contracts in government accounts;

(b)  providing information on best practices for energy performance contracting, including, if available, cost-benefit analysis using a life-cycle approach;

(c)  promoting and making publicly available a database of implemented and ongoing energy performance contracting projects that includes the projected and achieved energy savings.

6.  Member States shall support the proper functioning of the energy services market by taking the following measures:

(a)  identifying and publicising point(s) of contact where final customers can obtain the information referred to in paragraph 1;

(b)  removing  the regulatory and non-regulatory barriers that impede the uptake of energy performance contracting and other energy efficiency service models for the identification and/or implementation of energy saving measures;

(c)  setting up and promoting the role of advisory bodies, ESCOs and independent market intermediaries including one stop shops or similar support mechanisms to stimulate market development on the demand and supply sides, and making information about those support mechanisms publically available and accessible to market actors.

7.  For the purpose of supporting the proper functioning of the energy services market, Member States may establish an individual mechanism or designate an ombudsperson to ensure the efficient handling of complaints and out-of-court settlement of disputes arising from energy service and energy performance contracts.

8.  Member States shall ensure that energy distributors, distribution system operators and retail energy sales companies refrain from any activities that may impede the demand for and delivery of energy services or energy efficiency improvement measures, or hinder the development of markets for such services or measures, including foreclosing the market for competitors or abusing dominant positions.

Article 28

Energy Efficiency National Fund, Financing and Technical Support

1.  Without prejudice to Articles 107 and 108 TFEU, Member States shall facilitate the establishment of financing facilities, or use of existing ones, for energy efficiency improvement measures to maximise the benefits of multiple streams of financing and the combination of grants, financial instruments and technical assistance.

2.  The Commission shall, where appropriate, directly or via the European financial institutions, assist Member States in setting up financing facilities and project development assistance facilities at national, regional or local level  with the aim of increasing  investments in  energy efficiency in different sectors, and protecting and empowering vulnerable customers, people affected by energy poverty and, where applicable, people living in social housing including by integrating an equality perspective so that no one is left behind.

3.  Member States shall adopt measures that ensure that energy efficiency lending products, such as green mortgages and green loans, secured and unsecured, are offered widely and in a non-discriminatory manner by financial institutions and, are visible and accessible to consumers. Member States shall adopt measures to facilitate the implementation of on-bill and on-tax financing schemes.  Member States shall ensure that banks and other financial institutions receive information on opportunities to participate in the financing of energy efficiency improvement measures, including through the creation of public/private partnerships.

3a.   Without prejudice to Articles 107 and 108 TFEU, Member States shall adopt financial support schemes to increase the uptake of energy efficiency improvement measures for newly built, or the substantial refurbishment of, individual and district heating and cooling systems and the replacement of old and inefficient heating and cooling appliances with highly efficient alternatives.

Member States shall facilitate the establishment of local expertise and technical assistance to advise on best practices with regard to achieving the decarbonisation of local district heating and cooling, such as access to locally available projects and dedicated financial support.

4.  The Commission shall facilitate the exchange of best practice between the competent national or regional authorities or bodies, e.g. through annual meetings of the regulatory bodies, public databases with information on the implementation of measures by Member States, and country comparison.

5.  In order to mobilise private financing for energy efficiency measures and energy renovation, to contribute to the achievement the Union´s energy efficiency targets and of the national contributions pursuant to Article 4 of this Directive and of the objectives in ▌Directive 2010/31/EU, the Commission shall conduct a dialogue with both public and private financial institutions, as well as specific sectors such as transport, ICT and buildings, in order to map out needs and possible actions it can take.

6.  The actions referred to in paragraph 5 shall include the following elements:

(a)  mobilising capital investment into energy efficiency by considering the wider impacts of energy savings;

(aa)  facilitating the implementation of dedicated energy efficiency financial instruments and financing schemes at scale to be set up by financial institutions;

(b)  ensuring better energy and finance performance data by:

(i)  examining further how energy efficiency investments improve underlying asset values;

(ii)  supporting studies to assess the monetisation of the non-energy benefits of energy efficiency investments.

7.  For the purpose of mobilising private financing of energy efficiency measures and energy renovation, Member States shall, when implementing this Directive:

(a)  consider ways to make better use of energy management systems and energy audits under Article 11 to influence decision-making;

(b)  make optimal use of the possibilities and tools  available from the Union budget, and  proposed in the smart finance for smart buildings initiative  and in Commission Communication entitled ‘Renovation Wave´ .

8.  By 31 December 2024 the Commission shall provide guidance for Member States and market actors on how to unlock private investment.

The guidance shall have the purpose of helping Member States and market actors to develop and implement their energy efficiency investments in the various Union programmes, and will propose adequate financial mechanisms and solutions, with a combination of grants, financial instruments and project development assistance, to scale up existing initiatives and use the Union funding as a catalyst to leverage and trigger private financing.

9.  By ... [transposition date], Member States may set up a National Energy Efficiency ▌Fund. The purpose of the National Energy Efficiency Fund shall be to implement energy efficiency measures in support of Member States’ national contributions pursuant to Article 4(2). The National Energy Efficiency Fund may be established as a dedicated fund within an already existing national facility promoting capital investments.

Member States shall establish financing instruments including public guarantees in their National Energy Efficiency Funds to increase the uptake of private investments in energy efficiency and of the energy efficiency lending products and innovative schemes referred to in paragraph 3 of this Article. Pursuant to Article 8(3) and Article 22, the National Energy Efficiency Fund shall support the implementation of measures as a priority among vulnerable customers, people affected by energy poverty and, where applicable, people living in social housing. That support shall include financing for energy efficiency measures for SMEs in order to leverage and trigger private financing for SMEs, thereby supporting the implementation of national energy efficiency measures to support Member States in meeting their national energy efficiency contributions and their indicative trajectories referred to in Article 4(2). [The National Energy Efficiency ▌Fund may be financed with revenues from the allowance auctions pursuant to the EU Emission Trading System on buildings and transport sectors.]

10.  Member States may allow public bodies to fulfil  the obligations set out in Article 6(1) by means of annual contributions to the Energy Efficiency National Fund  equivalent  to the amount of the investments required to achieve those obligations.

11.  Member States may provide that obligated parties can fulfil their obligations set out in Article 8(1)  and (4)  by contributing annually to the Energy Efficiency National Fund an amount equal to the investments required to achieve those obligations.

12.  Member States may use their revenues from annual emission allocations under Decision No 406/2009/EC for the development of innovative financing  for energy efficiency improvements.

12a.  The Commission shall assess the effectiveness and efficiency of energy efficiency investment measures implemented in the Member States and their capacity to increase the uptake of private investments in energy efficiency while also taking into account public financing needs expressed in the National Energy and Climate Plans. The Commission shall evaluate whether an energy efficiency mechanism at Union level, with the objective to provide an EU guarantee, technical assistance, including one stop shops, and associated grants to enable the implementation of financial instruments, and financing and support schemes at national level, could support in a cost-effective way the achievement of the Union energy efficiency and climate targets, and, if appropriate, propose the establishment of such a mechanism.

To that end, the Commission shall submit by ... [30 March 2024] a report to the European Parliament and the Council, which shall be accompanied, if appropriate, by a legislative proposal.

12b.  Member States shall report to the Commission by ... [15 March 2025] and every two years thereafter, as part of their integrated national energy and climate progress reports in accordance with Articles 17 and 21 of Regulation (EU) 2018/1999 the following data:

(a)  an estimation of the volume of public and private investments on energy efficiency, including investments via energy performance contracting and the leverage factor achieved by public funding supporting energy efficiency measures;

(b)  the volume of energy efficiency lending products, differentiating between secured and unsecured lending products;

(c)  national financing programmes put in place to increase uptake of energy efficiency and best practices, and innovative financing schemes for energy efficiency.

To facilitate the preparation of the report referred to in the first subparagraph, the Commission shall provide a common template to Member States by ... [15 March 2024]. Member States shall include an annex to their integrated national energy and climate progress reports, drawn up in accordance with that template.

Article 29

Conversion factors and primary energy factors

1.  For the purpose of comparison of energy savings and conversion to a comparable unit, the net calorific values in Annex VI of Commission Implementing Regulation (EU) 2018/2066(72) and the primary energy factors   set out in paragraph 2 shall apply unless the use of other values or factors can be justified.

2.  A primary energy factor shall be applicable when energy savings are calculated in primary energy terms using a bottom-up approach based on final energy consumption.

3.  For savings in kWh electricity, Member States shall apply a coefficient in order to accurately calculate the resulting primary energy consumption savings. Member States shall apply a default coefficient of 2,1 unless they use their discretion to define a different coefficient based upon justified national circumstances.

4.  For savings in kWh of other energy carriers, Member States shall apply a coefficient in order to accurately calculate the resulting primary energy consumption savings.

5.  Where Member States establish their own coefficient to a default value provided pursuant to this Directive, Member States shall establish this through a transparent methodology on the basis of national or local circumstances affecting primary energy consumption. The circumstances shall be substantiated, verifiable and based on objective and non-discriminatory criteria.

6.  Where establishing an own coefficient, Member States shall take into account the energy mix included in the update of their integrated national energy and climate plans and subsequent integrated National Energy and Climate Plan to be notified to the Commission in accordance with Regulation (EU) 2018/1999. If they deviate from the default value Member States shall notify the coefficient that they use to the Commission along with the calculation methodology and underlying data in the update of their integrated National Energy and Climate Plans and subsequent integrated National Energy and Climate Plans in accordance with Regulation (EU) 2018/1999.

7.  By 25 December 2022 and every four years thereafter, the Commission shall revise the default coefficient on the basis of observed data. That revision shall be carried out taking into account its effects on other Union law such as Directive 2009/125/EC and Regulation (EU) 2017/1369. The methodology shall be regularly assessed to ensure that energy savings lead to the highest level of greenhouse gas emission reductions while contributing to the phasing out of fossil fuels.

CHAPTER VII

FINAL PROVISIONS

Article 30

Penalties

Member States shall lay down the rules on penalties applicable in case of non-compliance with the national provisions adopted pursuant to this Directive  and shall take the necessary measures to ensure that they are implemented. The penalties provided for shall be effective, proportionate and dissuasive. Member States shall notify those provisions to the Commission by [transposition date] and shall notify it without delay of any subsequent amendment affecting them.

Article 31

Delegated acts

1.  The Commission is empowered to adopt delegated acts in accordance with Article 32 concerning the review of the harmonised efficiency reference values referred to in the second subparagraph of Article 24(10).

2.  The Commission is empowered to adopt delegated acts in accordance with Article 32 to amend or supplement this Directive by adapting to technical progress the values, calculation methods, default primary energy coefficients and requirements referred to in Article 29, Annexes  II, III, V, VII to XI, and XIII.

3.  The Commission is empowered to adopt delegated acts in accordance with Article 32 to amend or supplement this Directive by establishing, after having consulted the relevant stakeholders, a common Union scheme for rating the sustainability of data centres located in its territory, within a month after the entry into force of the Directive. The scheme shall establish the definition of data centre sustainability indicators, and, pursuant to Article 11a of this Directive, define the minimum thresholds for significant energy consumption and set out the key indicators and the methodology to measure them.

Article 32

Exercise of the delegation

1.  The power to adopt delegated acts is conferred on the Commission subject to the conditions laid down in this Article.

2.  The power to adopt delegated acts referred to in Article 31 shall be conferred on the Commission for a period of five years from [date of publication in OJ]. The Commission shall draw up a report in respect of the delegation of power not later than nine months before the end of the five-year period. The delegation of power shall be tacitly extended for periods of an identical duration, unless the European Parliament or the Council opposes such extension not later than three months before the end of each period.

3.  The delegation of power referred to in Article 31 may be revoked at any time by the European Parliament or by the Council. A decision to revoke shall put an end to the delegation of the power specified in that decision. It shall take effect the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force.

4.  Before adopting a delegated act, the Commission shall consult experts designated by each Member State in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making.

5.  As soon as it adopts a delegated act, the Commission shall notify it simultaneously to the European Parliament and to the Council.

6.  A delegated act adopted pursuant to Article 31 shall enter into force only if no objection has been expressed either by the European Parliament or the Council within a period of two months of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by two months at the initiative of the European Parliament or of the Council.

Article 33

Review and monitoring of implementation

1.  In the context of the State of the Energy Union report, the Commission shall report on the functioning of the carbon market in accordance with Article 35(1) and point (c) of Article 35(2) of Regulation (EU) 2018/1999, taking into consideration the effects of the implementation of this Directive.

2.  By 31 October 2025 and every four years thereafter, the Commission shall evaluate the existing measures to achieve energy efficiency increase and decarbonisation in heating and cooling. The evaluation shall take into account:

(a)  Energy efficiency and greenhouse gases emissions trends in heating and cooling, including in district heating and cooling;

(b)  Interlinkages between measures taken;

(c)  Changes in energy efficiency and greenhouse gas emissions in the heating and cooling;

(d)  Existing and planned energy efficiency policies and measures and greenhouse gas reduction policies and measures at national and EU level, and

(e)  Measures Member States provided in their comprehensive assessments pursuant to Article 23(1) of this Directive and notified in accordance with Article 17 (1) of Regulation (EU) 2018/1999.

By the dates referred to in the first subparagraph, the Commission shall submit a report to the European Parliament and the Council on that evaluation and propose, if appropriate, measures to ensure the achievement of the Union's climate energy targets.

3.  Member States shall submit to the Commission before 30 April each year statistics on national electricity and heat production from high and low efficiency cogeneration, in accordance with the methodology shown in Annex II, in relation to total heat and electricity production. They shall also submit annual statistics on cogeneration heat and electricity capacities and fuels for cogeneration, and on district heating and cooling production and capacities, in relation to total heat and electricity production and capacities. Member States shall submit statistics on primary energy savings achieved by application of cogeneration in accordance with the methodology shown in Annex III.

4.  By 1 January 2021, the Commission shall carry out an assessment of the potential for energy efficiency in conversion, transformation, transmission, transportation and storage of energy, and shall submit a report to the European Parliament and to the Council. That report shall, if appropriate, be accompanied by legislative proposals.

5.  Subject to any changes to the retail market provisions of Directive 2009/73/EC,  by 31 December 2021, the Commission shall carry out an assessment, and submit a report to the European Parliament and to the Council, on the provisions related to metering, billing and consumer information for natural gas, with the aim of aligning them, where appropriate, with the relevant provisions for electricity in Directive (EU) 2019/944, in order to strengthen consumer protection and enable final customers to receive more frequent, clear and up-to-date information about their natural gas consumption and to regulate their energy use. As soon as possible after submission of that report, the Commission shall, where appropriate, adopt legislative proposals.

6.  By 31 October 2022, the Commission shall assess whether the Union has achieved its 2020 headline target on energy efficiency.

7.  By 28 February 2027, and every five years thereafter, the Commission shall evaluate this Directive and submit a report to the European Parliament and to the Council.

That evaluation shall include:

(a)  an assessment of the general effectiveness of this Directive and the need to adjust further the Union's energy efficiency policy in accordance with the objectives of the 2015 Paris Agreement and in the light of economic and innovation developments;

(aa)   a comprehensive assessment of the aggregated macroeconomic impact of this Directive, with an emphasis on the effects on the Union’s energy security, energy prices, minimising energy poverty, economic growth, competitiveness, job creation, mobility cost and household purchasing power;

(b)  the Union's 2030 headline targets on energy efficiency set out in Article 4(1) with a view to revising those that targets upwards in the event of substantial cost reductions resulting from economic or technological developments, or where needed to meet the Union's decarbonisation targets for 2040 or 2050, or its international commitments for decarbonisation;

(c)  if Member States shall continue to achieve new annual savings in accordance with point (c) of the first subparagraph of Article 8 for the ten-year periods after 2030;

(d)  if Member States shall continue to ensure that at least 3% of the total floor area of heated and/or cooled buildings owned by public bodies is renovated each year in accordance with paragraph 1 of Article 6 with a view to revising the renovation rate in that Article;

(e)  if Member States shall continue to achieve a share of energy savings among vulnerable customers, people affected by energy poverty, and, where applicable, people living in social housing, in accordance with paragraph 3 of Article 8 for the ten-year periods after 2030;

(f)  if Member States shall continue to achieve a reduction of final energy consumption in accordance with Article 5(1).

That report shall be accompanied by a comprehensive assessment of whether there is a need to revise this Directive in the interest of regulatory simplification and, where appropriate, by proposals for further measures. The Commission shall continuously adapt to administrative procedural best practices and shall take all measures to simplify the implementation of this Directive, keeping administrative burdens to a minimum.

 Article 34

Committee procedure

1.  The Commission shall be assisted by a committee. That committee shall be a committee within the meaning of Regulation (EU) No 182/2011.

2.  Where reference is made to this paragraph, Article 4 of Regulation (EU) No 182/2011 shall apply.

Article 35

Transposition

1.  Member States shall bring into force the laws, regulations and administrative provisions necessary to comply with   Articles […] and Annexes […] [articles and annexes which have been amended in substance by comparison with the repealed Directive] by […].

They shall  immediately communicate the text of those measures to the Commission.

When Member States adopt those measures, they shall contain a reference to this Directive or be accompanied by such a reference on the occasion of their official publication. They shall also include a statement that references in existing laws, regulations and administrative provisions to the Directive repealed by this Directive shall be construed as references to this Directive. Member States shall determine how such reference is to be made and how that statement is to be formulated.

2.  Member States shall communicate to the Commission the text of the main provisions of national law which they adopt in the field covered by this Directive.

Article 36

Repeal

Directive 2012/27/EU, as amended by the acts listed in Annex XV, Part A, is repealed with effect from […] [the day after the date in the first subparagraph of Article 35(1)], without prejudice to the obligations of the Member States relating to the time-limits for the transposition into national law of the Directives set out in Annex XV, Part B.

References to the repealed Directive shall be construed as references to this Directive and shall be read in accordance with the correlation table in Annex XVI.

Article 37

Entry into force

This Directive shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.

 Articles […] and Annexes […] [articles and annexes which are unchanged by comparison with the repealed Directive] shall apply from […] [the day after the date in the first subparagraph of Article 35(1)].

Article 38

Addressees

This Directive is addressed to the Member States.

Done at Brussels,

For the European Parliament For the Council

The President The President

ANNEX I

NATIONAL CONTRIBUTIONS TO THE UNION’S ENERGY EFFCIENCY TARGETS IN 2030 IN FINAL AND/OR PRIMARY ENERGY CONSUMPTION

1.  The level of national contributions is calculated based on the ▌formula:

20220914-P9_TA(2022)0315_EN-p0000002.png

Where CEU is a correction factor set by the Commission after Member States have reported the target, Target is the level of national-specific ambition and FECB2030 PECB2030 is the 2020 Reference Scenario used as a baseline for 2030.

2.  The following ▌formula represents the objective criteria reflecting the factors listed in points (d) (i) to (iv) of Article 4(2), each used for defining the level of national-specific ambition in % (Target) and having the same weight in the formula (0,25):

a)  a flat rate co20220914-P9_TA(2022)0315_EN-p0000003.png

b)  GDP-per-capita dependent contribution ("Fwealth");

c)  energy intensity dependent contribution ("Fintensity");

d)  cost-effective energy savings potential contribution ("Fpotential").

3.  Fflat represents the 2030 Union target that includes the additional efforts needed to reach the Union’s energy efficiency targets in FEC and PEC compared to the 2007 Reference Scenario projections for 2030.

4.  Fwealth shall be calculated for each Member State based on its three-year average Eurostat's real GDP per capita index to the Union’s three-year average over the 2017-2019 period, expressed in Purchasing power parities (PPPs).

5.  Fintensity shall be calculated for each Member State based on its three-year average final energy intensity (FEC or PEC per real GDP in PPPs) index to the Union’s three-year average over 2017-2019 period.

6.  Fpotential shall be calculated for each Member State based on the final or primary energy savings under the PRIMES MIX 55% scenario for 2030. The savings are expressed in relation to 2007 Reference Scenario projections for 2030.

7.  For each criteria provided in point 2(a) to (d), a lower and upper limit shall be applied. The level of ambition for each factor shall be capped at 50% and 150% of the Union average level of ambition under a given factor.

8.  The source of the input data used to calculate the factors is Eurostat unless stated otherwise.

9.  Ftotal shall be calculated as the weighted sum of all four factors (Fflat. Fwealth Fintensity and Fpotential). The target shall be then calculated as the product of the total factor Ftotal and the EU target.

10.  The Commission shall determine a primary and final energy correction factor CEU, which shall be applied to all Member Statestarget allocations to calibrate the sum of all national contributions to the Union primary and final energy consumption targets in 2030. The factor CEU is identical for all Member States.

_____________

ANNEX II

GENERAL PRINCIPLES FOR THE CALCULATION OF ELECTRICITY FROM COGENERATION

Part I

General principles

Values used for calculation of electricity from cogeneration shall be determined on the basis of the expected or actual operation of the unit under normal conditions of use. For micro- cogeneration units the calculation may be based on certified values.

(a)  Electricity production from cogeneration shall be considered equal to total annual electricity production of the unit measured at the outlet of the main generators if following conditions are met:

(i)  in cogeneration units of types (b), (d), (e), (f), (g) and (h) referred to in Part II with an annual overall efficiency set by Member States at a level of at least 75 %;

(ii)  in cogeneration units of types (a) and (c) referred to in Part II with an annual overall efficiency set by Member States at a level of at least 80 %.

(b)  In cogeneration units with an annual overall efficiency below the value referred to in point (a)(i) (cogeneration units of types (b), (d), (e), (f), (g), and (h) referred to in Part II) or with an annual overall efficiency below the value referred to in point (a)(ii) (cogeneration units of types (a) and (c) referred to in Part II)  electricity from  cogeneration is calculated according to the following formula:

ECHP=HCHP*C

where:

ECHP is the amount of electricity from cogeneration;

C is the power-to-heat ratio;

HCHP is the amount of useful heat from cogeneration (calculated for this purpose as total heat production minus any heat produced in separate boilers or by live steam extraction from the steam generator before the turbine).

The calculation of electricity from cogeneration must be based on the actual power-to-heat ratio. If the actual power-to-heat ratio of a cogeneration unit is not known, the following default values may be used, in particular for statistical purposes, for units of types (a), (b), (c), (d) and (e) referred to in Part II provided that the calculated cogeneration electricity is less or equal to total electricity production of the unit:

Type of the unit

Default power to heat ratio, C

Combined cycle gas turbine with heat recovery

0,95

Steam back pressure turbine

0,45

Steam condensing extraction turbine

0,45

Gas turbine with heat recovery

0,55

Internal combustion engine

0,75

If Member States introduce default values for power-to-heat ratios for units of types (f), (g), (h), (i), (j) and (k) referred to in Part II, such default values shall be published and shall be notified to the Commission.

(c)  If a share of the energy content of the fuel input to the cogeneration process is recovered in chemicals and recycled this share can be subtracted from the fuel input before calculating the overall efficiency used in points (a) and (b).

(d)  Member States may determine the power-to-heat ratio as the ratio of electricity to useful heat when operating in cogeneration mode at a lower capacity using operational data of the specific unit.

(e)  Member States may use other reporting periods than one year for the purpose of the calculations according to points (a) and (b).

Part II

Cogeneration technologies covered by this Directive

(a)  Combined cycle gas turbine with heat recovery

(b)  Steam back pressure turbine

(c)  Steam condensing extraction turbine

(d)  Gas turbine with heat recovery

(e)  Internal combustion engine

(f)  Microturbines

(g)  Stirling engines

(h)  Fuel cells

(i)  Steam engines

(j)  Organic Rankine cycles

(k)  Any other type of technology or combination thereof falling under the definition laid down in  point (32) of  Article 2.

When implementing and applying the general principles for the calculation of electricity from cogeneration, Member States shall use the detailed Guidelines established by Commission Decision 2008/952/EC (73).

_____________

ANNEX III

METHODOLOGY FOR DETERMINING THE EFFICIENCY OF THE COGENERATION PROCESS

Values used for calculation of efficiency of cogeneration and primary energy savings shall be determined on the basis of the expected or actual operation of the unit under normal conditions of use.

(a)  High-efficiency cogeneration

For the purpose of this Directive high-efficiency cogeneration shall fulfil the following criteria:

–  cogeneration production from cogeneration units shall provide primary energy savings calculated according to point (b) of at least 10 % compared with the references for separate production of heat and electricity;

–  production from small-scale and micro-cogeneration units providing primary energy savings may qualify as high-efficiency cogeneration;

–  direct emissions of the carbon dioxide from cogeneration production that is fuelled with fossil fuels, are less than 270 gCO2 per 1 kWh of energy output from the combined generation (including heating/cooling, power and mechanical energy).

–  When a cogeneration unit is built or substantially refurbished, Member States shall ensure that there is no increase in the use of fossil fuels other than natural gas in existing heat sources compared to the annual consumption averaged over the previous three calendar years of full operation before refurbishment, and that any new heat sources in that system do not use fossil fuels other than natural gas.

(b)  Calculation of primary energy savings

The amount of primary energy savings provided by cogeneration production defined in accordance with Annex II shall be calculated on the basis of the following formula:

20220914-P9_TA(2022)0315_EN-p0000004.png

Where:

PES is primary energy savings.

CHP Hη is the heat efficiency of the cogeneration production defined as annual useful heat output divided by the fuel input used to produce the sum of useful heat output and electricity from cogeneration.

Ref Hη is the efficiency reference value for separate heat production.

CHP Eη is the electrical efficiency of the cogeneration production defined as annual electricity from cogeneration divided by the fuel input used to produce the sum of useful heat output and electricity from cogeneration. Where a cogeneration unit generates mechanical energy, the annual electricity from cogeneration may be increased by an additional element representing the amount of electricity which is equivalent to that of mechanical energy. This additional element does not create a right to issue guarantees of origin in accordance with Article 24(10).

Ref Eη is the efficiency reference value for separate electricity production.

(c)  Calculations of energy savings using alternative calculation

Member States may calculate primary energy savings from a production of heat and electricity and mechanical energy as indicated below without applying Annex II to exclude the non-cogenerated heat and electricity parts of the same process. Such a production can be regarded as high-efficiency cogeneration provided it fulfils the efficiency criteria in point (a) of this Annex and, for cogeneration units with an electrical capacity larger than 25 MW, the overall efficiency is above 70 %. However, specification of the quantity of electricity from cogeneration produced in such a production, for issuing a guarantee of origin and for statistical purposes, shall be determined in accordance with Annex II.

If primary energy savings for a process are calculated using alternative calculation as indicated above the primary energy savings shall be calculated using the formula in point (b) of this Annex replacing: ‘CHP Hη’ with ‘Hη’ and ‘CHP Eη’ with ‘Eη’, where:

Hη shall mean the heat efficiency of the process, defined as the annual heat output divided by the fuel input used to produce the sum of heat output and electricity output.

Eη shall mean the electricity efficiency of the process, defined as the annual electricity output divided by the fuel input used to produce the sum of heat output and electricity output. Where a cogeneration unit generates mechanical energy, the annual electricity from cogeneration may be increased by an additional element representing the amount of electricity which is equivalent to that of mechanical energy. This additional element will not create a right to issue guarantees of origin in accordance with Article 24(10).

(d)  Member States may use other reporting periods than one year for the purpose of the calculations according to points (b) and (c) of this Annex.

(e)  For micro-cogeneration units the calculation of primary energy savings may be based on certified data.

(f)  Efficiency reference values for separate production of heat and electricity

The harmonised efficiency reference values shall consist of a matrix of values differentiated by relevant factors, including year of construction and types of fuel, and must be based on a well-documented analysis taking, inter alia, into account data from operational use under realistic conditions, fuel mix and climate conditions as well as applied cogeneration technologies.

The efficiency reference values for separate production of heat and electricity in accordance with the formula set out in point (b) shall establish the operating efficiency of the separate heat and electricity production that cogeneration is intended to substitute.

The efficiency reference values shall be calculated according to the following principles:

(i)  for cogeneration units the comparison with separate electricity production shall be based on the principle that the same fuel categories are compared;

(ii)  each cogeneration unit shall be compared with the best available and economically justifiable technology for separate production of heat and electricity on the market in the year of construction of the cogeneration unit;

(iii)  the efficiency reference values for cogeneration units older than 10 years of age shall be fixed on the reference values of units of 10 years of age;

(iv)  the efficiency reference values for separate electricity production and heat production shall reflect the climatic differences between Member States.

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ANNEX IV

ENERGY EFFICIENCY REQUIREMENTS FOR PUBLIC PROCUREMENT 

In award procedures for public contracts and concessions, contracting authorities and contracting entities  that purchase products, services, buildings  and works, shall:

(a)  where a product is covered by a delegated act adopted under Regulation (EU) 2017/1369 or by a related Commission implementing directive, purchase only the products that comply with the criterion  laid down in Article 7(2) of that Regulation ;

(b)  where a product not covered under point (a) is covered by an implementing measure under Directive 2009/125/EC adopted after the entry into force of this Directive, purchase only products that comply with energy efficiency benchmarks specified in that implementing measure;

(c)  where a product or a service is covered by the Union green public procurement criteria, with relevance to energy efficiency of the product or service, make best efforts to purchase only products and services that respect at least the technical specifications set at ‘core’ level in the relevant Union green public procurement criteria including among others for data centres, server rooms and cloud services, Union green public procurement criteria for road lighting and traffic signals, Union green public procurement criteria for computers, monitors tablets and smartphones;

(d)  purchase only tyres that comply with the criterion of having the highest fuel energy efficiency class, as defined by Regulation (EU) 2020/740 of the European Parliament and of the Council(74). This requirement shall not prevent public bodies from purchasing tyres with the highest wet grip class or external rolling noise class where justified by safety or public health reasons;

(e)  require in their tenders for service contracts that service providers use, for the purposes of providing the services in question, only products that comply with the requirements referred to in points (a)  , (b)   and  (d), when providing the services in question. This requirement shall apply only to new products purchased by service providers partially or wholly for the purpose of providing the service in question;

(f)  purchase, or make new rental agreements for, only buildings that comply at least with the minimum energy performance requirements referred to in Article 4(1) of Directive 2010/31/EU  unless the purpose of the purchase is:

(i)  to undertake deep renovation or demolition;

(ii)  in the case of public bodies, to re-sell the building without using it for public body’s own purposes; or

(iii)  to preserve it as a building officially protected as part of a designated environment, or because of its special architectural or historical merit.

Compliance with these requirements shall be verified by means of the energy performance certificates referred to in Article 11 of Directive 2010/31/EU.

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ANNEX V

Common methods and principles for calculating the impact of energy efficiency obligation schemes or other policy measures under Articles 8, 9 and 10 and Article 28(11)

1.  Methods for calculating energy savings other than those arising from taxation measures for the purposes of Articles 8, 9 and 10 and Article 28(11).

Obligated, participating or entrusted parties, or implementing public authorities, may use the following methods for calculating energy savings:

(a)  deemed savings, by reference to the results of previous independently monitored energy improvements in similar installations. The generic approach is termed ‘ex ante’;

(b)  metered savings, whereby the savings from the installation of a measure, or package of measures, are determined by recording the actual reduction in energy use, taking due account of factors such as additionality, occupancy, production levels and the weather which may affect consumption. The generic approach is termed ‘ex post’;

(c)  scaled savings, whereby engineering estimates of savings are used. This approach may be used only where establishing robust measured data for a specific installation is difficult or disproportionately expensive, e.g. replacing a compressor or electric motor with a different kWh rating from that for which independent information about savings has been measured, or where those estimates are carried out on the basis of nationally established methodologies and benchmarks by qualified or accredited experts that are independent of the obligated, participating or entrusted parties involved;

(d)  surveyed savings, where consumers' response to advice, information campaigns, labelling or certification schemes or smart metering is determined. This approach may be used only for savings resulting from changes in consumer behaviour. It shall not be used for savings resulting from the installation of physical measures.

2.  In determining the energy savings for an energy efficiency measure for the purposes of Articles 8, 9 and 10 and Article 28(11), the following principles apply:

(a)  Member States shall demonstrate that the policy measure has been implemented for the purpose of fulfilling the energy savings obligation and achieving end-use energy savings pursuant to Article 8(1). Member States shall provide evidence and their documentation that the energy savings are caused by a policy measure, including voluntary agreements;

(b)  the savings shall be shown to be additional to those that would have occurred in any event without the activity of the obligated, participating or entrusted parties, or implementing public authorities. To determine the savings that can be claimed as additional, Member States shall have regard to how energy use and demand would evolve in the absence of the policy measure in question by taking into account at least the following factors: energy consumption trends, changes in consumer behaviour, technological progress and changes caused by other measures implemented at Union and national level;

(c)  savings resulting from the implementation of mandatory Union law shall be considered to be savings that would have occurred in any event, and thus shall not be claimed as energy savings for the purpose of Article 8(1). By way of derogation from that requirement, savings related to the renovation of existing buildings may be claimed as energy savings for the purpose of Article 8(1), provided that the materiality criterion referred to in point 3(h) of this Annex is ensured.  Measures promoting energy efficiency improvements in the public sector pursuant to Article 5 and Article 6 may be eligible to be taken into account for the fulfilment of energy savings required under Article 8(1), provided that they result in verifiable, and measurable or estimable, end-use energy savings. The calculation of energy savings shall comply with the requirements of this Annex;

(d)  measures taken pursuant to Regulation (EU) 2018/842 on binding annual greenhouse gas emission reductions can be considered material, but Member States have to show that they result in verifiable and measurable or estimable end-use energy savings. The calculation of energy savings shall comply with the requirements of this Annex;

(e)  Member States cannot count reduced energy use in sectors, including the transport and building sector, that would have occurred in any event as a result of emission trading pursuant to the EU ETS Directive towards the fulfilment of the energy savings obligation pursuant to Article 8(1). If an entity is an obligated party under a national energy efficiency obligation scheme under Article 9 of this Directive and under the EU Emissions Trading System for buildings and road transport [COM(2021) 551 final,2021/0211 (COD)], the monitoring and verification system shall ensure that the carbon price passed through when releasing fuel for consumption [according Article 1(21) of COM(2021) 551 final,2021/0211 (COD)] is taken into account when calculating and reporting the energy savings of its energy saving measures;

(f)  credit may be given only for savings exceeding the following levels:

(i)  Union emission performance standards for new passenger cars and new light commercial vehicles following the implementation of Regulation (EU) 2019/631 of the European Parliament and of the Council(75);  Member States must provide evidence, their assumptions and their calculation methodology to show additionality to the Union´s new vehicle CO2 requirements;

(ii)  Union requirements relating to the removal from the market of certain energy related products following the implementation of implementing measures under Directive 2009/125/EC;  Member States shall provide evidence, their assumptions and their calculation methodology to show additionality;

(g)  policies with the purpose of encouraging higher levels of energy efficiency of products, equipment, transport systems, vehicles and fuels, buildings and building elements, processes or markets shall be permitted, except for those policy measures regarding the use of direct combustion of fossil fuel technologies that are implemented as from 1 July 2028, and except for those policy measures subsidising the use of direct combustion of fossil fuel technologies in residential buildings as from 1 January 2024. Energy savings as a result of policy measures regarding the use of direct fossil fuel combustion may count towards the fulfilment of energy savings obligation for a maximum amount equivalent to one fourth of energy savings as from 1 January 2024 to 30 June 2028;

(ga)  individual actions regarding the use of direct combustion of fossil fuel technologies are not permitted as from 1 July 2028. Individual actions promoting combinations of technologies are permitted. In the case of individual actions promoting combinations of technologies, the share of energy savings related to the fossil fuel combustion technologies shall not be eligible to be counted as from 1 July 2028;

[AM 20]

(i)  measures promoting the installation of small-scale renewable energy technologies on or in buildings may be eligible to be taken into account for the fulfilment of energy savings required under Article 8(1), provided that they result in verifiable, and measurable or estimable,  end-use  energy savings. The calculation of energy savings shall comply with the requirements of this Annex;

(j)  measures promoting the installation of solar thermal technologies may be eligible to be taken into account for the fulfilment of energy savings required under Article 8(1) provided that they result in verifiable, and measurable or estimable, end-use energy savings. The ambient heat captured by solar thermal technologies can be excluded from their end-use energy consumption;

(k)  for policies that accelerate the uptake of more efficient products and vehicles,  except those regarding the use of direct fossil fuel combustion,  full credit may be claimed, provided that it is shown that such uptake takes place before expiry of the average expected lifetime of the product or vehicle, or before the product or vehicle would usually be replaced, and the savings are claimed only for the period until end of the average expected lifetime of the product or vehicle to be replaced;

(l)  in promoting the uptake of energy efficiency measures, Member States shall, where relevant, ensure that quality standards for products, services and installation of measures are maintained or introduced where such standards do not exist;

(m)  to account for climatic variations between regions, Member States may choose to adjust the savings to a standard value or to accord different energy savings in accordance with temperature variations between regions;

(n)  the calculation of energy savings shall take into account the lifetime of the measures and the rate at which the savings decline over time. That calculation shall count the savings each individual action will achieve during the period from its date of implementation to the end of each obligation period. Alternatively, Member States may adopt another method that is estimated to achieve at least the same total quantity of savings. When using another method, Member States shall ensure that the total amount of energy savings calculated using that method does not exceed the amount of energy savings that would have been the result of their calculation when counting the savings each individual action will achieve during the period from its date of implementation to 2030. Member States shall describe in detail in their integrated national energy and climate plans under Regulation (EU) 2018/1999 the other method and the provisions made to ensure that the binding calculation requirement is met.

3.  Member States shall ensure that the following requirements for policy measures taken pursuant to Article 10 and Article 28(11) are met:

(a)  policy measures and individual actions produce verifiable end-use energy savings;

(b)  the responsibility of each participating party, entrusted party or implementing public authority, as relevant, is clearly defined;

(c)  the energy savings that are achieved or are to be achieved are determined in a transparent manner;

(d)  the amount of energy savings required or to be achieved by the policy measure is expressed in either final or primary energy consumption, using the  net calorific values or primary energy  factors  referred to in Article 29;

(e)  an annual report on the energy savings achieved by entrusted parties, participating parties and implementing public authorities be provided and made publicly available, as well as data on the annual trend of energy savings;

(f)  monitoring of the results and taking appropriate measures if progress is not satisfactory;

(g)  the energy savings from an individual action are not claimed by more than one party;

(h)  the activities of the participating party, entrusted party or implementing public authority are shown to be material to the achievement of the energy savings claimed;

(i)  the activities of the participating party, entrusted party or implementing public authority have no adverse effects on vulnerable customers, people affected by energy poverty and, where applicable, people living in social housing.

4.  In determining the energy saving from taxation and parafiscal levies related policy measures introduced under Article 10, the following principles shall apply:

(a)  credit shall be given only for energy savings from taxation measures exceeding the minimum levels of taxation applicable to fuels as required in Council Directive 2003/96/EC(76) or 2006/112/EC(77);

(aa)  credit shall be given only for energy savings from taxation measures and parafiscal levies designed with the purpose of generating energy savings as defined in Article 2, point (7);

(b)  ▌price elasticities for the calculation of the impact of the (energy) taxation measures shall be end-user segment specific, including income classes, company types and size, and thus represent the responsiveness of energy demand to price changes, and shall be estimated on the basis of recent and representative official data sources which are applicable for the Member State, and, where applicable, based on accompanying studies from an independent institute ▌;

(c)  the energy savings from accompanying taxation policy instruments, including fiscal incentives or payment to a fund, shall be accounted separately;

(d)  short-run elasticity estimates shall be used to assess the energy savings from taxation measures to avoid overlap with Union law and other policy measures;

(e)  Member States shall determine distributional effects of taxation and equivalent measures on vulnerable customers, people affected by energy poverty and, where applicable, people living in social housing, and show the effects of mitigation measures implemented in accordance with Article 22(1) to (3);

(f)  Member States shall provide evidence, including calculation methodologies, that where there is an overlap in the impact of energy or carbon taxation measures or emission trading according the EU ETS Directive [COM(2021) 551 final,2021/0211 (COD)], there is no double counting of energy savings.

5.  Notification of methodology

Member States shall in accordance with Regulation (EU) 2018/1999 notify to the Commission their proposed detailed methodology for the operation of the energy efficiency obligation schemes and alternative measures referred to in Articles 9 and 10, and Article 28(11). Except in the case of taxation, such notification shall include details of:

(a)  the level of the energy savings required under the first subparagraph of Article 8(1) or savings expected to be achieved over the whole period from 1 January 2021 to 31 December 2030;

(b)  how the calculated quantity of new energy savings required under the first subparagraph of Article 8(1) or energy savings expected to be achieved will be phased over the obligation period;

(c)  the obligated, participating or entrusted parties, or implementing public authorities;

(d)  target sectors;

(e)  policy measures and individual actions, including the expected total amount of cumulative energy savings for each measure;

(f)  information on policy measures or programmes or measures financed under an Energy Efficiency National Fund implemented as a priority among people affected by energy poverty, vulnerable customers, and, where applicable, people living in social housing;

(g)  the share and the amount of energy savings to be achieved among people affected by energy poverty, vulnerable customers, and, where applicable, people living in social housing;

(h)  where applicable, information about the indicators applied, the arithmetic average share and the outcome of policy measures established according to Article 8(3);

(i)  where applicable, information about impacts and adverse effects of policy measures implemented pursuant to Article 8(3) on people affected by energy poverty, vulnerable customers, and, where applicable, people living in social housing;

(j)  the duration of the obligation period for the energy efficiency obligation scheme;

(k)  where applicable, the amount of energy savings or cost reduction targets to be achieved by obligated parties among people affected by energy poverty, vulnerable customers, and, where applicable, people living in social housing;

(l)  the actions provided for by the policy measure;

(m)  the calculation methodology, including how additionality and materiality have been determined and which methodologies and benchmarks are used for deemed and scaled savings,  and, where applicable, the net calorific values and conversion factors used  ;

(n)  the lifetimes of measures, and how they are calculated or what they are based upon;

(o)  the approach taken to address climatic variations within the Member State;

(p)  the monitoring and verification systems for measures under Articles 9 and 10 and how their independence from the obligated, participating or entrusted parties is ensured;

(q)  in the case of taxation:

(i)  the target sectors and segment of taxpayers;

(ii)  the implementing public authority;

(iii)  the savings expected to be achieved;

(iv)  the duration of the taxation measure;

(v)  the calculation methodology, including the price elasticities used and how they have been established;  and

(vi)  how overlaps with emission trading in accordance with the EU ETS Directive [COM(2021) 551 final, 2021/0211 (COD)] have been avoided and the risk of double counting has been abolished.

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ANNEX VI

Minimum criteria for energy audits including those carried out as part of energy management systems

The energy audits referred to in Article 11 shall be based on the following criteria:

(a)  be based on up-to-date, measured, traceable operational data on energy consumption and (for electricity) load profiles;

(b)  comprise a detailed review of the energy consumption profile of buildings or groups of buildings, industrial operations or installations, including transportation;

(c)  identify energy efficiency measures to decrease energy consumption;

(d)  identify the potential for cost-effective use or production of renewable energy;

(e)  build, whenever possible, on life-cycle cost analysis (LCCA) instead of Simple Payback Periods (SPP) in order to take account of long-term savings, residual values of long-term investments and discount rates;

(f)  be proportionate, and sufficiently representative to permit the drawing of a reliable picture of overall energy performance and the reliable identification of the most significant opportunities for improvement.

Energy audits shall allow detailed and validated calculations for the proposed measures so as to provide clear information on potential savings.

The data used in energy audits shall be storable for historical analysis and tracking performance.

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ANNEX VIa

Minimum requirements for monitoring and publishing the energy performance of data centres

The following minimum information shall be monitored and published with regard to the energy performance of data centres referred to in Article 11a(1):

(a)  the name of the data centre, the name of the owner and operators of the data centre, the municipality where the data centre is based, except for data centres related to national security and defence;

(b)  the floor area of the data centre; the installed power; the temperature set points; the annual incoming and outgoing data traffic if available to the data centre operator and taking into account the business model and customer type; and the amount of data stored and processed within the data centre when this affects the energy consumption of the data centre;

(c)  the performance, during the last full calendar year, of the data centre in accordance with the following key performance indicators from CEN/CENELEC EN 50600-4 “Information technology - Data centre facilities and infrastructures”, taking due account of the geographical location of the data centre, the demand of heat reuse and the heat infrastructures available, until the entry into force of the delegated act pursuant to Article 31 of this Directive:

(i)   Power Usage Effectiveness (PUE), according to CEN/CENELEC EN 50600-4-2

(ii)   Renewable Energy Factor (REF), according to CEN/CENELEC EN 50600-4-3

(iii)   Energy Re-use Factor (ERF), according to CEN/CENELEC EN 50600-4-6

(iv)   Cooling Effectiveness Ratio (CER), according to CEN/CENELEC EN 50600-4-7

(v)   Carbon Usage Effectiveness (CUE), according to CEN/CENELEC EN 50600-4-8

(vi)   Water Usage Effectiveness (WUE), according to CEN/CENELEC EN 50600-4-9

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ANNEX VII

Minimum requirements for billing and billing information based on actual consumption of natural gas

1.  Minimum requirements for billing

1.1.  Billing based on actual consumption

In order to enable final customers to regulate their own energy consumption, billing should take place on the basis of actual consumption at least once a year, and billing information should be made available at least quarterly, on request or where the consumers have opted to receive electronic billing or else twice yearly. Gas used only for cooking purposes may be exempted from this requirement.

1.2.  Minimum information contained in the bill

Member States shall ensure that, where appropriate, the following information is made available to final customers in clear and understandable terms in or with their bills, contracts, transactions, and receipts at distribution stations:

(a)  current actual prices and actual consumption of energy;

(b)  comparisons of the final customer’s current energy consumption with consumption for the same period in the previous year, preferably in graphic form;

(c)  contact information for final customers’ organisations, energy agencies or similar bodies, including website addresses, from which information may be obtained on available energy efficiency improvement measures, comparative end-user profiles and objective technical specifications for energy-using equipment.

In addition, wherever possible and useful, Member States shall ensure that comparisons with an average normalised or benchmarked final customer in the same user category are made available to final customers in clear and understandable terms, in, with or signposted to within, their bills, contracts, transactions, and receipts at distribution stations.

1.3.  Advice on energy efficiency accompanying bills and other feedback to final customers

When sending contracts and contract changes, and in the bills customers receive or through websites addressing individual customers, energy distributors, distribution system operators and retail energy sales companies shall inform their customers in a clear and understandable manner of contact information for independent consumer advice centres, energy agencies or similar institutions, including their internet addresses, where they can obtain advice on available energy efficiency measures, benchmark profiles for their energy consumption and technical specifications of energy using appliances that can serve to reduce the consumption of these appliances.

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ANNEX VIII

Minimum requirements for billing and consumption information for heating, cooling and domestic hot water

1.  Billing based on actual consumption or heat cost allocator readings

In order to enable final users to regulate their own energy consumption, billing shall take place on the basis of actual consumption or heat cost allocator readings at least once per year.

2.  Minimum frequency of billing or consumption information

Until 31 December 2021, where remotely readable meters or heat cost allocators have been installed, billing or consumption information based on actual consumption or heat cost allocator readings shall be provided to final users at least quarterly upon request or where final customers have opted to receive electronic billing, or else twice a year.

From 1 January 2022, where remotely readable meters or heat cost allocators have been installed, billing or consumption information based on actual consumption or heat cost allocator readings shall be provided to final users at least monthly. It may also be made available via the internet and be updated as frequently as allowed by the measurement devices and systems used. Heating and cooling may be exempted from that requirement outside the heating/cooling seasons.

3.  Minimum information contained in the bill

Member States shall ensure that the following information is made available to final users in clear and comprehensible terms in or with their bills where those are based on actual consumption or heat cost allocator readings:

(a)  current actual prices and actual consumption of energy or total heat cost and heat cost allocator readings;

(b)  information about the fuel mix used and the related annual greenhouse gas emissions, including for final users supplied by district heating or district cooling, and a description of the different taxes, levies and tariffs applied. Member States may limit the scope of the requirement to provide information about greenhouse gas emissions to include only supplies from district heating systems with a total rated thermal input exceeding 20 MW;

(c)  comparisons of the final users current energy consumption with consumption for the same period in the previous year, in graphic form, climate corrected for heating and cooling;

(d)  contact information for final customers' organisations, energy agencies or similar bodies, including website addresses, from which information on available energy efficiency improvement measures, comparative end-user profiles and objective technical specifications for energy-using equipment may be obtained;

(e)  information about related complaints procedures, ombudsman services or alternative dispute resolution mechanisms, as applicable in the Member States;

(f)  comparisons with an average normalised or benchmarked final user in the same user category. In the case of electronic bills, such comparisons may instead be made available online and signposted to within the bills.

Bills that are not based on actual consumption or heat cost allocator readings shall contain a clear and comprehensible explanation of how the amount set out in the bill was calculated, and at least the information referred to in points (d) and (e).

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ANNEX IX

Potential for efficiency in heating and cooling

The comprehensive assessment of national heating and cooling potentials referred to in Article 23(1) shall include and be based on the following:

Part I

OVERVIEW OF HEATING AND COOLING

1.  heating and cooling demand in terms of assessed useful energy(78) and quantified final energy consumption in GWh per year(79) by sectors:

(a)  residential;

(b)  services;

(c)  industry;

(d)  any other sector that individually consumes more than 5 % of total national useful heating and cooling demand;

2.  identification, or in the case of point 2(a)(i), identification or estimation, of current heating and cooling supply:

(a)  by technology, in GWh per year(80), within sectors mentioned under point 1 where possible, distinguishing between energy derived from fossil and renewable sources:

(i)  provided on-site in residential and service sites by:

–  heat only boilers;

–  high-efficiency heat and power cogeneration;

–  heat pumps;

–  other on-site technologies and sources;

(ii)  provided on-site in non-service and non-residential sites by:

–  heat only boilers;

–  high-efficiency heat and power cogeneration;

–  heat pumps;

–  other on-site technologies and sources;

(iii)  provided off-site by:

–  high-efficiency heat and power cogeneration;

–  waste heat;

–  other off-site technologies and sources;

(b)  identification of installations that generate waste heat or cold and their potential heating or cooling supply, in GWh per year:

(i)  thermal power generation installations that can supply or can be retrofitted to supply waste heat with a total thermal input exceeding 50 MW;

(ii)  heat and power cogeneration installations using technologies referred to in Part II of Annex II with a total thermal input exceeding 20 MW;

(iii)  waste incineration plants;

(iv)  renewable energy installations with a total thermal input exceeding 20 MW other than the installations specified under point 2(b)(i) and (ii) generating heating or cooling using the energy from renewable sources;

(v)  industrial installations with a total thermal input exceeding 20 MW which can provide waste heat;

(c)  reported share of energy from renewable sources and from waste heat or cold in the final energy consumption of the district heating and cooling(81) sector over the past 5 years, in line with Directive (EU) 2018/2001;

3.  a map covering the entire national territory identifying (while preserving commercially sensitive information):

(a)  heating and cooling demand areas following from the analysis of point 1, while using consistent criteria for focusing on energy dense areas in municipalities and conurbations;

(b)  existing heating and cooling supply points identified under point 2(b) and district heating transmission installations;

(c)  planned heating and cooling supply points of the type described under point 2(b) and district heating transmission installations;

4.  a forecast of trends in the demand for heating and cooling to maintain a perspective of the next 30 years in GWh and taking into account in particular projections for the next 10 years, the change in demand in buildings and different sectors of the industry, and the impact of policies and strategies related to the demand management, such as long-term building renovation strategies under Directive (EU) 2018/844;

Part II

OBJECTIVES, STRATEGIES AND POLICY MEASURES

5.  planned contribution of the Member State to its national objectives, targets and contributions for the five dimensions of the Energy Union, as laid out in Article 3(2)(b) of Regulation (EU) 2018/1999, delivered through efficiency in heating and cooling, in particular related to points 1 to 4 of Article 4(b) and to paragraph (4)(b) of Article 15, identifying which of these elements is additional compared to integrated national energy and climate plans;

6.  general overview of the existing policies and measures as described in the most recent report submitted in accordance with Articles 3, 20, 21 and 27(a) of Regulation (EU) 2018/1999;

Part III

ANALYSIS OF THE ECONOMIC POTENTIAL FOR EFFICIENCY IN HEATING AND COOLING

7.  an analysis of the economic potential(82) of different technologies for heating and cooling shall be carried out for the entire national territory by using the cost-benefit analysis referred to in Article 23(3) and shall identify alternative scenarios for more efficient and renewable heating and cooling technologies, distinguishing between energy derived from fossil and renewable sources where applicable.

The following technologies should be considered:

(a)  industrial waste heat and cold;

(b)  waste incineration;

(c)  high efficiency cogeneration;

(d)  renewable energy sources (such as geothermal, solar thermal and biomass) other than those used for high efficiency cogeneration;

(e)  heat pumps;

(f)  reducing heat and cold losses from existing district networks;

8.  this analysis of economic potential shall include the following steps and considerations:

(a)  Considerations:

(i)  the cost-benefit analysis for the purposes of Article 23(3) shall include an economic analysis that takes into consideration socioeconomic and environmental factors(83), and a financial analysis performed to assess projects from the investors' point of view. Both economic and financial analyses shall use the net present value as criterion for the assessment;

(ii)  the baseline scenario should serve as a reference point and take into account existing policies at the time of compiling this comprehensive assessment(84), and be linked to data collected under Part I and point 6 of Part II of this Annex;

(iii)  alternative scenarios to the baseline shall take into account energy efficiency and renewable energy objectives of Regulation (EU) 2018/1999. Each scenario shall present the following elements compared to the baseline scenario:

–  economic potential of technologies examined using the net present value as criterion;

–  greenhouse gas emission reductions;

–  primary energy savings in GWh per year;

–  impact on the share of renewables in the national energy mix.

Scenarios that are not feasible due to technical reasons, financial reasons or national regulation may be excluded at an early stage of the cost-benefit analysis, if justified based on careful, explicit and well-documented considerations.

The assessment and decision-making should take into account costs and energy savings from the increased flexibility in energy supply and from a more optimal operation of the electricity networks, including avoided costs and savings from reduced infrastructure investment, in the analysed scenarios.

(b)  Costs and benefits

The costs and benefits referred to under point 8(a) shall include at least the following benefits and costs:

(i)  Benefits:

–  value of output to the consumer (heating, cooling and electricity);

–  external benefits such as environmental, greenhouse gas emissions and health and safety benefits, to the extent possible;

–  labour market effects, energy security and competitiveness, to the extent possible.

(ii)  Costs:

–  capital costs of plants and equipment;

–  capital costs of the associated energy networks;

–  variable and fixed operating costs;

–  energy costs;

–  environmental, health and safety costs, to the extent possible;

–  labour market costs, energy security and competitiveness, to the extent possible.

(c)  Relevant scenarios to the baseline:

All relevant scenarios to the baseline shall be considered, including the role of efficient individual heating and cooling.

(i)  the cost-benefit analysis may either cover a project assessment or a group of projects for a broader local, regional or national assessment in order to establish the most cost-effective and beneficial heating or cooling solution against a baseline for a given geographical area for the purpose of planning;

(d)  Boundaries and integrated approach:

(i)  the geographical boundary shall cover a suitable well-defined geographical area;

(ii)  the cost-benefit analyses shall take into account all relevant centralised or decentralised supply resources available within the system and geographical boundary, including technologies considered under point 7 of Part III of this Annex, and heating and cooling demand trends and characteristics.

(e)  Assumptions:

(i)  Member States shall provide assumptions, for the purpose of the cost-benefit analyses, on the prices of major input and output factors and the discount rate;

(ii)  the discount rate used in the economic analysis to calculate net present value shall be chosen according to European or national guidelines;

(iii)  Member States shall use national, European or international energy price development forecasts if appropriate in their national and/or regional/local context;

(iv)  the prices used in the economic analysis shall reflect socio economic costs and benefits. External costs, such as environmental and health effects, should be included to the extent possible, i.e. when a market price exists or when it is already included in European or national regulation.

(f)  Sensitivity analysis:

(i)  a sensitivity analysis shall be included to assess the costs and benefits of a project or group of projects and be based on variable factors having a significant impact on the outcome of the calculations, such as different energy prices, levels of demand, discount rates and other.

Part IV

POTENTIAL NEW STRATEGIES AND POLICY MEASURES

9.  overview of new legislative and non-legislative policy measures(85) to realise the economic potential identified in accordance with points 7 and 8, along with their foreseen:

(a)  greenhouse gas emission reductions;

(b)  primary energy savings in GWh per year;

(c)  impact on the share of high-efficiency cogeneration;

(d)  impact on the share of renewables in the national energy mix and in the heating and cooling sector;

(e)  links to national financial programming and cost savings for the public budget and market participants;

(f)  estimated public support measures, if any, with their annual budget and identification of the potential aid element.

_____________

ANNEX X

COST-BENEFIT ANALYSIS

Principles for the purpose of Article 244 and (6)

The cost-benefit analyses shall provide information for the purpose of the measures in Article 24(4) and (6):

If an electricity-only installation or an installation without heat recovery is planned, a comparison shall be made between the planned installations or the planned refurbishment and an equivalent installation producing the same amount of electricity or process heat, but recovering the waste heat and supplying heat through high-efficiency cogeneration and/or district heating and cooling networks.

Within a given geographical boundary the assessment shall take into account the planned installation and any appropriate existing or potential heat  or cooling  demand points that could be supplied from it, taking into account rational possibilities (for example, technical feasibility and distance).

The system boundary shall be set to include the planned installation and the heat and cooling loads, such as building(s) and industrial process. Within this system boundary the total cost of providing heat and power shall be determined for both cases and compared.

Heat  or cooling  loads shall include existing heat  or cooling  loads, such as an industrial installation or an existing district heating  or cooling  system, and also, in urban areas, the heat  or cooling  load and costs that would exist if a group of buildings or part of a city were provided with and/or connected into a new district heating  or cooling  network.

The cost-benefit analysis shall be based on a description of the planned installation and the comparison installation(s), covering electrical and thermal capacity, as applicable, fuel type, planned usage and the number of planned operating hours annually, location and electricity and thermal demand.

Assessment of waste heat utilization shall take into consideration current technologies. The assessment shall take into consideration the direct use of waste heat or its upgrading to higher temperature levels, or both. In case of waste heat recovery on-site, at least the use of heat exchangers, heat pumps, and heat to power technologies shall be assessed. In case of waste heat recovery off-site, at least industrial installations, agriculture sites and district heating networks shall be assessed as potential demand points.

For the purpose of the comparison, the thermal energy demand and the types of heating and cooling used by the nearby heat or cooling demand points shall be taken into account. The comparison shall cover infrastructure related costs for the planned and comparison installation.

Cost-benefit analyses for the purposes of Article 24(4) shall include an economic analysis covering a financial analysis reflecting actual cash flow transactions from investing in and operating individual installations.

Projects with positive cost-benefit outcome are those where the sum of discounted benefits in the economic and financial analysis exceeds the sum of discounted costs (cost-benefit surplus).

Member States shall set guiding principles for the methodology, assumptions and time horizon for the economic analysis.

Member States may require that the companies responsible for the operation of thermal electric generation installations, industrial companies, district heating and cooling networks, or other parties influenced by the defined system boundary and geographical boundary, contribute data for use in assessing the costs and benefits of an individual installation.

_____________

ANNEX XI

Guarantee of origin for electricity produced from high-efficiency cogeneration

(a)  Member States shall take measures to ensure that:

(i)  the guarantee of origin of the electricity produced from high-efficiency cogeneration:

–  enable producers to demonstrate that the electricity they sell is produced from high-efficiency cogeneration and is issued to this effect in response to a request from the producer;

–  is accurate, reliable and fraud-resistant;

–  is issued, transferred and cancelled electronically;

(ii)  the same unit of energy from high-efficiency cogeneration is taken into account only once.

(b)  The guarantee of origin referred to in Article 24(10) shall contain at least the following information:

(i)  the identity, location, type and capacity (thermal and electrical) of the installation where the energy was produced;

(ii)  the dates and places of production;

(iii)  the lower calorific value of the fuel source from which the electricity was produced;

(iv)  the quantity and the use of the heat generated together with the electricity;

(v)  the quantity of electricity from high-efficiency cogeneration in accordance with Annex III that the guarantee represents;

(vi)  the primary energy savings calculated in accordance with Annex III based on the harmonised efficiency reference values indicated in point (f) of Annex III;

(vii)  the nominal electric and thermal efficiency of the plant;

(viii)  whether and to what extent the installation has benefited from investment support;

(ix)  whether and to what extent the unit of energy has benefited in any other way from a national support scheme, and the type of support scheme;

(x)  the date on which the installation became operational; and

(xi)  the date and country of issue and a unique identification number.

The guarantee of origin shall be of the standard size of 1 MWh. It shall relate to the net electricity output measured at the station boundary and exported to the grid.

_____________

ANNEX XII

Energy efficiency criteria for energy network regulation and for electricity network tariffs

1.  Network tariffs shall be cost-reflective of cost-savings in networks achieved from demand-side and demand- response measures and distributed generation, including savings from lowering the cost of delivery or of network investment and a more optimal operation of the network.

2.  Network regulation and tariffs shall not prevent network operators or energy retailers making available system services for demand response measures, demand management and distributed generation on organised electricity markets, in particular:

(a)  the shifting of the load from peak to off-peak times by final customers taking into account the availability of renewable energy, energy from cogeneration and distributed generation;

(b)  energy savings from demand response of distributed consumers by energy aggregators;

(c)  demand reduction from energy efficiency measures undertaken by energy service providers, including energy service companies;

(d)  the connection and dispatch of generation sources at lower voltage levels;

(e)  the connection of generation sources from closer location to the consumption; and

(f)  the storage of energy.

For the purposes of this provision the term ‘organised electricity markets’ shall include over-the-counter markets and electricity exchanges for trading energy, capacity, balancing and ancillary services in all timeframes, including forward, day-ahead and intra-day markets.

3.  Network or retail tariffs may support dynamic pricing for demand response measures by final customers, such as:

(a)  time-of-use tariffs;

(b)  critical peak pricing;

(c)  real time pricing; and

(d)  peak time rebates.

___________

ANNEX XIII

ENERGY EFFICIENCY REQUIREMENTS FOR TRANSMISSION SYSTEM OPERATORS AND DISTRIBUTION SYSTEM OPERATORS

Transmission system operators and distribution system operators shall:

(a)  set up and make public their standard rules relating to the bearing and sharing of costs of technical adaptations, such as grid connections, grid reinforcements and the introduction of new grids, improved operation of the grid and rules on the non-discriminatory implementation of the grid codes, which are necessary in order to integrate new producers feeding electricity produced from high-efficiency cogeneration into the interconnected grid;

(b)  provide any new producer of electricity produced from high-efficiency cogeneration wishing to be connected to the system with the comprehensive and necessary information required, including:

(i)  a comprehensive and detailed estimate of the costs associated with the connection;

(ii)  a reasonable and precise timetable for receiving and processing the request for grid connection;

(iii)  a reasonable indicative timetable for any proposed grid connection. The overall process to become connected to the grid should be no longer than 24 months, bearing in mind what is reasonably practicable and non-discriminatory;

(c)  provide standardised and simplified procedures for the connection of distributed high-efficiency cogeneration producers to facilitate their connection to the grid.

The standard rules referred to in point (a) shall be based on objective, transparent and non-discriminatory criteria taking particular account of all the costs and benefits associated with the connection of those producers to the grid. They may provide for different types of connection.

_____________

ANNEX XIV

Minimum items to be included in energy performance contracts or in the associated tender specifications

–  Findings /recommendations of an analysis/ audit carried out before the contract has been concluded that covers energy use of the building with a view to implement energy efficiency improvement measures.

–  Clear and transparent list of the efficiency measures to be implemented or the efficiency results to be obtained.

–  Guaranteed savings to be achieved by implementing the measures of the contract.

–  Duration and milestones of the contract, terms and period of notice.

–  Clear and transparent list of the obligations of each contracting party.

–  Reference date(s) to establish achieved savings.

–  Clear and transparent list of steps to be performed to implement a measure or package of measures and, where relevant, associated costs.

–  Obligation to fully implement the measures in the contract and documentation of all changes made during the project.

–  Regulations specifying the inclusion of equivalent requirements in any subcontracting with third parties.

–  Clear and transparent display of financial implications of the project and distribution of the share of both parties in the monetary savings achieved (i.e. remuneration of the service provider).

–  Clear and transparent provisions on measurement and verification of the guaranteed savings achieved, quality checks and guarantees.

–  Provisions clarifying the procedure to deal with changing framework conditions that affect the content and the outcome of the contract (i.e. changing energy prices, use intensity of an installation).

–  Detailed information on the obligations of each of the contracting party and of the penalties for their breach.

_________

ANNEX XV

Part A

Repealed Directive with list of the successive amendments thereto

(referred to in Article 36)

Directive 2012/27/EU of the European Parliament and of the Council

(OJ L 315, 14.11.2012, p. 1)

 

Council Directive 2013/12/EU

(OJ L 141, 28.5.2013, p. 28)

 

Directive (EU) 2018/844 of the European Parliament and of the Council

(OJ L 156, 19.6.2018, p. 75)

only Article 2

Directive (EU) 2018/2002 of the European Parliament and of the Council

(OJ L 328, 21.12.2018, p. 210)

 

Regulation (EU) 2018/1999 of the European Parliament and of the Council

(OJ L 328, 21.12.2018, p. 1)

only Article 54

Decision (EU) 2019/504 of the European Parliament and of the Council

(OJ L 85I , 27.3.2019, p. 66)

only Article 1

Commission Delegated Regulation (EU) 2019/826

(OJ L 137, 23.5.2019, p. 3)

 

Directive (EU) 2019/944 of the European Parliament and of the Council

(OJ L 158, 14.6.2019, p. 125)

only Article 70

Part B

Time-limits for transposition into national law

(referred to in Article 36)

Directive

Time-limit for transposition

2012/27/EU

5 June 2014

(EU) 2018/844

10 March 2020

(EU) 2018/2002

25 June 2020, with the exception of points 5 to 10 of Article 1 and points 3 and 4 of the Annex

25 October 2020 as regards points 5 to 10 of Article 1 and points 3 and 4 of the Annex

(EU) 2019/944

31 December 2019 as regards point (5)(a) of Article 70

25 October 2020 as regards point (4) of Article 70

31 December 2020 as regards points (1) to (3), (5)(b) and (6) of Article 70

_____________

ANNEX XVI

Correlation Table

Directive 2012/27/EU

This Directive

Article 1

Article 1

Article 2, introductory wording

Article 2, introductory wording

Article 2, point 1

Article 2, point 1

-

Article 2, points 2 and 3

Article 2, point 2

Article 2, point 4

Article 2, point 3

Article 2, point 5

Article 2, point 4

Article 2, point 6

Article 2, point 5

Article 2, point 7

Article 2, point 6

Article 2, point 8

Article 2, point 7

Article 2, point 9

Article 2, point 8

Article 2, point 10

Article 2, point 9

-

Article 2, point 10

Article 2, point 11

_

Article 2, points 12 and 13

Article 2, point 11

Article 2, point 14

Article 2, point 12

Article 2, point 15

Article 2, point 13

Article 2, point 16

Article 2, point 14

Article 2, point 17

Article 2, point 15

Article 2, point 18

Article 2, point 16

Article 2, point 19

Article 2, point 17

Article 2, point 20

Article 2, point 18

Article 2, point 21

Article 2, point 19

Article 2, point 22

Article 2, point 20

Article 2, point 23

Article 2, point 21

Article 2, point 24

Article 2, point 22

Article 2, point 25

Article 2, point 23

Article 2, point 26

Article 2, point 24

Article 2, point 27

Article 2, point 25

Article 2, point 28

Article 2, point 26

-

Article 2, point 27

Article 2, point 29

Article 2, point 28

Article 2, point 30

Article 2, point 29

Article 2, point 31

Article 2, point 30

Article 2, point 32

Article 2, point 31

Article 2, point 33

Article 2, point 32

Article 2, point 34

Article 2, point 33

Article 2, point 35

Article 2, point 34

Article 2, point 36

Article 2, point 35

Article 2, point 37

Article 2, point 36

Article 2, point 38

Article 2, point 37

Article 2, point 39

Article 2, point 38

Article 2, point 40

Article 2, point 39

Article 2, point 41

Article 2, point 40

-

Article 2, point 41

Article 2, point 42

Article 2, point 42

Article 2, point 43

Article 2, point 43

Article 2, point 44

-

Article 2, point 45

Article 2, points 44 and 45

Article 2, points 46 and 47

-

Article 2, points 48, 49 and 50

-

Article 3

-

Article 4(1)

Article 3(1), first subparagraph

Article 4(2), first subparagraph

Article 3(1), second subparagraph, introductory wording

Article 4(2), second subparagraph, introductory wording

Article 3(1), second subparagraph, points (a) and (b)

Article 4(2), second subparagraph, points (a) and (b)

Article 3(1), second subparagraph, point (c)

-

Article 3(1), second subparagraph, point (d)

Article 4(2), second subparagraph, point (c)

Article 3(1), third subparagraph, introductory wording

-

-

Article 4(2), second subparagraph, point (d), introductory wording

-

Article 4(2), second subparagraph, points (d)(i), (ii) and (iii)

Article 3(1), third subparagraph, point (a)

Article 4(2), second subparagraph, point (d)(iv)

-

Article 4(2), second subparagraph, point (e), introductory wording

Article 3(1), third subparagraph, point (b)

Article 4(2), second subparagraph, point (e)(i)

Article 3(1), third subparagraph, point (c)

Article 4(2), second subparagraph, point (e)(ii)

Article 3(1), third subparagraph, point (d)

Article 4(2), second subparagraph, point (e)(iii)

Article 3(1), third subparagraph, point (e)

-

Article 3(2) and (3)

-

Article 3(4)

Article 33(6)

Article 3(5) and (6)

-

-

Article 4(3)

-

Article 4(4)

-

Article 5

Article 5(1), first subparagraph

Article 6(1), first subparagraph

Article 5(1), second subparagraph

-

Article 5(1), third subparagraph

Article 6(1), second subparagraph

Article 5(1), fourth and fifth subparagraph

-

Article 5(2) and (3)

-

Article 5(4)

Article 6(2)

Article 5(5)

Article 6(3)

Article 5(6) and (7)

-

Article 6(1), first subparagraph

Article 7(1), first subparagraph

Article 6(1), second subparagraph

-

-

Article 7(1), second subparagraph

Article 6(1), third subparagraph

-

Article 6(2), (3) and (4)

Article 7(2), (3) and (4)

-

Article 7(5) and (6)

-

Article 7(7), second subparagraph

Article 7(1), introductory wording, point (a) and (b)

Article 8(1), introductory wording, point (a) and (b)

-

Article 8(1), point (c)

Article 7(1), second subparagraph

Article 8(5)

Article 7(1), third subparagraph

Article 8(1), second subparagraph

Article 7(1), fourth subparagraph

Article 8(1), third subparagraph

-

Article 8(2), (3) and (4)

Article 7(2)

Article 8(6)

Article 7(3)

Article 8(7)

Article 7(4)

Article 8(8)

Article 7(5)

Article 8(9)

Article 7(6)

Article 8(10)

Article 7(7)

-

Article 7(8)

-

Article 7(9)

-

Article 7(10)

-

Article 7(11)

-

 

Article 8(11), (12) and (13)

Article 7(12)

Article 8(14)

Article 7a (1), (2) and (3)

Article 9(1), (2) and (3)

-

Article 9(4), (5) and (6)

Article 7a (4) and (5)

Article 9(7) and (8)

-

Article 9(9)

Article 7a (6) and (7)

Article 9(10) and (11)

Article 7b (1) and (2)

Article 10(1) and (2)

-

Article 10(3) and (4)

-

Article 11(1) and (2)

Article 8(1) and (2)

Article 11(3) and (4)

Article 8(3) and (4)

-

-

Article 11(5)

Article 8(5)

Article 11(6)

-

Article 11(7)

Article 8(6)

Artice 11(8)

Article 8(7)

Article 11(9)

-

Article 11(10)

Article 9

Article 12

Article 9a

Article 13

Article 9b

Article 14

Article 9c

Article 15

Article 10

Article 16

Article 10a

Article 17

Article 11

Article 18

Article 11a

Article 19

-

Article 20

-

Article 21(1)

Article 12(1)

Article 21(2)

Article 12(2), introductory wording and point (a), subpoints (i) to (v)

Article 21(2), second subparagraph, subpoints (i) to (v)

Article 21(2), second subparagraph, subpoint (vi)

Article 12(2), point (b)

Article 21(2), third subparagraph

-

Article 21(2), third subparagraph, point (i)

Article 12(2), point (b), subpoints (i) and (ii)

Article 21(2), third subparagraph, points (ii) and (iii)

-

Article 21(2), third subparagraph, point (iv)

-

Article 21(4)

-

Article 21(5), third and fourth subparagraphs

-

Article 22

Article 13

Article 30

Article 14(1) and (2)

-

-

Article 23(1) and (2)

Article 14(3)

Article 23(3), first subparagraph

-

Article 23(3), second subparagraph

Article 14(4)

Article 23(4)

-

Article 23(5) and (6)

-

Article 24(1), (2) and (3)

Article 14(5), introductory wording and point (a)

Article 24(4), introductory wording and point (a)

Article 14(5), points (b), (c) and (d)

-

-

Article 24(4), points (b), (c) and (d) and second subparagraph

Article 14(5), second and third subparagraphs

Article 24(4), third and fourth subparagraphs

Article 14(6), point (a)

Article 24(5), point (a)

Article 14(6), point (b)

-

Article 14(6), point (c)

Article 24(5), point (b)

-

Article 24(5), point (c)

Article 14(6), second and third subparagraphs

Article 24(5), second and third subparagraphs

Article 14(7), (8) and (9)

Article 24(6), (7) and (8)

-

Article 24(9)

Article 14(10) and (11)

Article 24(10) and (11)

Article 15(1), first subparagraph

Article 25(1)

Article 15(1), second and third subparagraphs

-

-

Article 25(2), (3) and (4)

Article 15(1), fourth subparagraph

Article 25(5)

Article 15(2) and (2a)

-

Article 15(3), (4) and (5), first subparagraph

Article 25(6), (7) and (8)

Article 15(5), second suparagraph

-

Article 15(6), first subparagraph

-

Article 15(6), second subparagraph

Article 25(9)

Article 15(7)

Article 25(10)

Article 15(9), first subparagraph

Article 25(11)

Article 15(9), second subparagraph

-

Article 16(1) and (2)

-

-

Article 26(1) and (2)

Article 16(3)

Article 26(3)

-

Article 26(4)

Article 17(1), first subparagraph

-

Article 17(1), second subparagraph

Article 28(3)

Article 17(2)

Article 21(3)

Article 17(3)

-

Article 17(4)

-

Article 17(5)

Article 21(6)

Article 18(1), introductory wording

Article 27(1), introductory wording

Article 18(1), point (a), subpoints (i) and (ii)

Article 27(1), points (a) and (b)

-

Article 27(1), points (c) and (d)

Article 18(1), point (b)

Article 27(2)

Article 18(1), point (c)

Article 27(3)

-

Article 27(4)

Article 18(1), point (d), subpoints (i) and (ii)

Article 27(5), points (a) and (b)

-

Article 27(5), point (c)

Article 18(2), points (a) and (b)

Article 27(6), points (a) and (b)

Article 18(2), point (c) and (d)

-

-

Article 27(6), point (c)

-

Article 27(7)

Article 18(3)

Article 27(8)

Article 19(1), point (a)

Article 21(5), first subparagraph

Article 19(1), point (b)

Article 7(7), first subparagraph

Article 19(1), second subparagraph

Article 21(5), second subparagraph

Article 19(2)

-

Article 20(1) and (2)

Article 28(1) and (2)

-

Article 28(3)

Article 20(3), (3a), (3b) and (3c)

Article 28(4), (5), (6) and (7)

Article 20(3d)

Article 28(8), first subparagraph

-

Article 28(8), second subparagraph

Article 20(4), (5), (6) and (7)

Article 28(9), (10), (11) and (12)

Article 21

Article 29(1)

-

Article 29(2), (3), (4), (5), (6) and (7)

Article 22(1) and (2)

Article 31(1) and (2)

-

Article 31(3)

Article 23

Article 32

Article 24(4a), (5) and (6)

Article 33(1), (2) and (3)

Article 24(7), (8), (9), (10), (12)

-

Article 24(13) and (14)

Article 33(4) and (5)

Article 24(15), introductory wording

Article 33(7), introductory wording

Article 24(15), point (a)

-

Article 24(15), point (b)

Article 33(7), point (a)

 

Article 33(7), point (b), (c), (d), (e) and (f)

Article 24(15), second subparagraph

Article 33(7), second subparagraph

Article 25

-

Article 26

Article 34

Article 27, first subparagraph

Article 36, first subparagraph

Article 27, second subparagraph

-

Article 27, third subparagraph

Article 36, second subparagraph

Article 27(2) and (3)

-

Article 28(1), first subparagraph

Article 35(1), first subparagraph

Article 28(1), second subparagraph

-

Article 28(1), third and fourth subparagraphs

Article 35(1), second and third subparagraphs

Article 28(2)

Article 35(2)

Article 29

Article 37

Article 30

Article 38

-

Annex I

Annex I

Annex II

Annex II

Annex III

Annex III

Annex IV

Annex IV

-

Annex V

Annex V

Annex VI

Annex VI

Annex VII

Annex VII

Annex VIIa

Annex VIII

Annex VIII

Annex IX

Annex IX

Annex X

Annex X

Annex XI

Annex XI

Annex XII

Annex XII

Annex XIII

Annex XIII

Annex XIV

Annex XV

-

-

Annex XV

-

Annex XVI

_________

(1) The matter was referred back for interinstitutional negotiations to the committee responsible, pursuant to Rule 59(4), fourth subparagraph (A9-0221/2022).
(2)* Amendments: new or amended text is highlighted in bold italics; deletions are indicated by the symbol ▌.
(3) OJ C 152, 6.4.2022, p. 134.
(4) OJ C […], […], p. […].
(5) Directive 2012/27/EU of the European Parliament and of the Council of 25 October 2012 on energy efficiency, amending Directives 2009/125/EC and 2010/30/EU and repealing Directives 2004/8/EC and 2006/32/EC (OJ L 315, 14.11.2012, p. 1).
(6) See Annex XV, Part A.
(7) Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions Stepping up Europe’s 2030 climate ambition Investing in a climate-neutral future for the benefit of our people, COM(2020) 562 final.
(8) Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions The European Green Deal, COM(2019) 640 final.
(9) https://www.consilium.europa.eu/media/47296/1011-12-20-euco-conclusions-en.pdf.
(10) Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions Commission Work Programme 2021 A Union of vitality in a world of fragility COM(2020) 690 final.
(11) Communication A Clean Planet for all – A European strategic long-term vision for a prosperous, modern, competitive and climate neutral economy (COM(2018) 773 final), where the role of energy efficiency as a condition sine qua non for all decarbonisation scenarios is assessed.
(12) See also European Commission, Final study report, Energy-efficient Cloud Computing Technologies and Policies for an Eco-friendly Cloud Market, https://digital-strategy.ec.europa.eu/en/library/energy-efficient-cloud-computing-technologies-and-policies-eco-friendly-cloud-market.
(13) Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions – Shaping Europe's digital future (COM(2020) 67 final).
(14) OJ L 198, 22.6.2020, p. 13.
(15) Regulation (EU) 2018/1999 of the European Parliament and of the Council of 11 December 2018 on the Governance of the Energy Union and Climate Action, amending Regulations (EC) No 663/2009 and (EC) No 715/2009 of the European Parliament and of the Council, Directives 94/22/EC, 98/70/EC, 2009/31/EC, 2009/73/EC, 2010/31/EU, 2012/27/EU and 2013/30/EU of the European Parliament and of the Council, Council Directives 2009/119/EC and (EU) 2015/652 and repealing Regulation (EU) No 525/2013 of the European Parliament and of the Council, PE/55/2018/REV/1, OJ L 328, 21.12.2018, p. 1–77.
(16) An EU Strategy for Energy System Integration COM(2020) 299 final.
(17) Regulation (EU) 2022/869 of the European Parliament and of the Council of 30 May 2022 on guidelines for trans-European energy infrastructure, amending Regulations (EC) No 715/2009, (EU) 2019/942 and (EU) 2019/943 and Directives 2009/73/EC and (EU) 2019/944, and repealing Regulation (EU) No 347/2013 (OJ L 152, 3.6.2022, p. 45).
(18) Directive (EU) 2019/944 of the European Parliament and of the Council on common rules for the internal market for electricity and amending Directive 2012/27/EU (OJ L 158, 14.6.2019, p. 125).
(19) Commission Recommendation on energy poverty, C(2020) 9600 final.
(20) Directive 2009/73/EC of the European Parliament and of the Council of 13 July 2009 concerning common rules for the internal market in natural gas and repealing Directive 2003/55/EC (OJ L 211, 14.8.2009, p. 94).
(21) Directive 2010/31/EC of the European Parliament and of the Council of 19 May 2010 on the energy performance of buildings (OJ L 153, 18.6.2010, p. 13).
(22) Directive 2009/125/EC of the European Parliament and of the Council of 21 October 2009 establishing a framework for the setting of ecodesign requirements for energy-related products; Regulation (EU) 2017/1369 of the European Parliament and of the Council of 4 July 2017 setting a framework for energy labelling and Regulation (EU) 2020/740 of the European Parliament and of the Council of 25 May 2020 on the labelling of tyres with respect to fuel efficiency and other parameters respectively.
(23) Moreover, implementation of the product reviews under the Ecodesign Working Plan 2020-2024 and the “Renovation Wave” Action plan, together with the review of the EPBD, will make an important contribution to reaching the 2030 energy saving target.
(24) Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee, the Committee of the Regions and the European Investment Bank – A Clean Planet for all A European strategic long-term vision for a prosperous, modern, competitive and climate neutral economy (COM(2018) 773 final).
(25) Directive 2014/24/EU of the European Parliament and of the Council of 26 February 2014 on public procurement and repealing Directive 2004/18/EC (OJ L 94 28.3.2014, p. 65).
(26) COM(2020) 562 final.
(27) See IRP, Resource Efficiency and Climate Change, 2020, and UN Environment Emissions Gap Report, 2019. These figures refer to the use and operation of buildings, including indirect emissions in the power and heat sector, not their full life cycle. The embodied carbon in construction is estimated to account for about 10% of total yearly greenhouse gas emissions worldwide.
(28) COM(2020) 662 final.
(29) Directive 2010/31/EU of the European Parliament and of the Council of 19 May 2010 on the energy performance of buildings (OJ L 153, 18.6.2010, p. 13).
(30) https://www.unfpa.org/world-population-trends
(31) https://www.un.org/en/ecosoc/integration/pdf/fact_sheet.pdf
(32) Directive 2014/23/EU of the European Parliament and of the Council of 26 February 2014 on the award of concession contracts (OJ L 94, 28.3.2014, p. 1).
(33) Directive 2014/24/EU of the European Parliament and of the Council of 26 February 2014 on public procurement and repealing Directive 2004/18/EC (OJ L 94, 28.3.2014, p. 65).
(34) Directive 2010/75/EU of the European Parliament and of the Council of 24 November 2010 on industrial emissions (integrated pollution prevention and control) (OJ L 334, 17.12.2010, p. 17).
(35) Directive (EU) 2016/2284 of the European Parliament and of the Council of 14 December 2016 on the reduction of national emissions of certain atmospheric pollutants, amending Directive 2003/35/EC and repealing Directive 2001/81/EC (OJ L 344, 17.12.2016, p. 1).
(36) Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020 on the establishment of a framework to facilitate sustainable investment, and amending Regulation (EU) 2019/2088 (OJ L 198, 22.6.2020, p. 13).
(37) IEA (International Energy Agency) (2021), Net Zero by 2050 A Roadmap for the Global Energy Sector, https://www.iea.org/reports/net-zero-by-2050.
(38) Regulation (EU) 2018/842 of the European Parliament and of the Council of 30 May 2018 on binding annual greenhouse gas emission reductions by Member States from 2021 to 2030 contributing to climate action to meet commitments under the Paris Agreement and amending Regulation (EU) No 525/2013 (OJ L 156, 19.6.2018, p. 26).
(39) COMMISSION RECOMMENDATION of 14.10.2020 on energy poverty, C(2020) 9600 final.
(40) https://digital-strategy.ec.europa.eu/en/library/energy-efficient-cloud-computing-technologies-and-policies-eco-friendly-cloud-market
(41) Regulation (EU) 2021/1119 of the European Parliament and of the Council of 30 June 2021 establishing the framework for achieving climate neutrality and amending Regulations (EC) No 401/2009 and (EU) 2018/1999 (‘European Climate Law’) (OJ L 243, 9.7.2021, p. 1).
(42) Directive 2010/75/EU of the European Parliament and of the Council of 24 November 2010 on industrial emissions (OJ L 334, 17.12.2010, p. 17).
(43) Directive 2009/31/EC of the European Parliament and of the Council of 23 April 2009 on the geological storage of carbon dioxide (OJ L 140, 5.6.2009, p. 114).
(44) Directive (EU) 2018/2001 of the European Parliament and of the Council of 11 December 2018 on the promotion of the use of energy from renewable sources (OJ L 328, 21.12.2018, p. 82).
(45) Regulation (EU) 2019/943 of the European Parliament and of the Council of 5 June 2019 on the internal market for electricity (OJ L 158, 14.6.2019, p. 54).
(46) Regulation (EC) No 715/2009 of the European Parliament and of the Council of 13 July 2009 on conditions for access to the natural gas transmission networks (OJ L 211, 14.8.2009, p. 36).
(47) EPSR, Principle 20 “Access to essential services”: https://ec.europa.eu/commission/priorities/deeper-and-fairer-economic-and-monetary-union/european-pillar-social-rights/european-pillar-social-rights-20-principles_en
(48) Proposal for a Regulation of the European Parliament and of the Council establishing a Social Climate Fund, COM(2021) 568 final.
(49) https://ec.europa.eu/eurostat/documents/1015035/8885635/guide_to_statistical_treatment_of_epcs_en.p df/f74b474b-8778-41a9-9978-8f4fe8548ab1
(50) Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003 establishing a scheme for greenhouse gas emission allowance trading within the Community and amending Council Directive 96/61/EC (OJ L 275, 25.10.2003, p. 32).
(51) Decision No 406/2009/EC of the European Parliament and of the Council of 23 April 2009 on the effort of Member States to reduce their greenhouse gas emissions to meet the Community’s greenhouse gas emission reduction commitments up to 2020 (OJ L 140, 5.6.2009, p. 136).
(52) Commission Decision 2014/746/EU of 27 October 2014 determining, pursuant to Directive 2003/87/EC of the European Parliament and of the Council, a list of sectors and subsectors which are deemed to be exposed to a significant risk of carbon leakage, for the period 2015 to 2019 (OJ L 308, 29.10.2014, p. 114).
(53) OJ L 123, 12.5.2016, p. 1.
(54) Regulation (EU) No 182/2011 of the European Parliament and of the Council of 16 February 2011 laying down the rules and general principles concerning mechanisms for control by Member States of the Commission’s exercise of implementing powers (OJ L 55, 28.2.2011, p. 13).
(55) Regulation (EC) No 1099/2008 of the European Parliament and of the Council of 22 October 2008 on energy statistics (OJ L 304, 14.11.2008, p. 1).
(56) Directive 2014/24/EU of the European Parliament and of the Council of 26 February 2014 on public procurement and repealing Directive 2004/18/EC (OJ L 94, 28.3.2014, p. 65).
(57) Commission Recommendation of 6 May 2003 concerning the definition of micro, small and medium-sized enterprises (OJ L 124, 20.5.2003, p. 36).
(58) Commission Regulation (EU) 2022/132 of 28 January 2022 amending Regulation (EC) No 1099/2008 of the European Parliament and of the Council on energy statistics, as regards the implementation of updates for the annual, monthly and short-term monthly energy statistics (OJ L 20, 31.1.2022, p. 208).
(59) Commission Recommendation (EU) 2021/1749 of 28 September 2021 on Energy Efficiency First: from principles to practice — Guidelines and examples for its implementation in decision-making in the energy sector and beyond.
(60) The Union’s energy efficiency target was initially set and calculated using the 2007 Reference Scenario projections for 2030 as a baseline. The change in the Eurostat energy balance calculation methodology and improvements in subsequent modelling projections call for a change of the baseline. Thus, using the same approach to define the target, that is to say comparing it to the future baseline projections, the ambition of the Union’s 2030 energy efficiency target is set compared to the 2020 Reference Scenario projections for 2030 reflecting national contributions from the NECPs. With that updated baseline, the Union will need to further increase its energy efficiency ambition by at least 9 % in 2030 compared to the level of efforts under the 2020 Reference Scenario. The new way of expressing the level of ambition for the Union’s targets does not affect the actual level of efforts needed.
(61) Directive 2009/81/EC of the European Parliament and of the Council of 13 July 2009 on the coordination of procedures for the award of certain works contracts, supply contracts and service contracts by contracting authorities or entities in the fields of defence and security (OJ L 216, 20.8.2009, p. 7).
(62) Regulation (EU) 2017/1369 of the European Parliament and of the Council of 4 July 2017 setting a framework for energy labelling and repealing Directive 2010/30/EU (OJ L 198, 28.7.2017, p. 1).
(63) Commission Implementing Regulation (EU) 2018/2066 of 19 December 2018 on the monitoring and reporting of greenhouse gas emissions pursuant to Directive 2003/87/EC of the European Parliament and of the Council and amending Commission Regulation (EU) No 601/2012, OJ L 334, 31.12.2018, p. 1–93.
(64) Proposal for a DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Directive 2003/87/EC establishing a system for greenhouse gas emission allowance trading within the Union, Decision (EU) 2015/1814 concerning the establishment and operation of a market stability reserve for the Union greenhouse gas emission trading scheme and Regulation (EU) 2015/757, (Text with EEA relevance){SEC(2021) 551 final} - {SWD(2021) 557 final} - {SWD(2021) 601 final} -{SWD(2021) 602 final.
(65) Directive 2011/83/EU of the European Parliament and of the Council of 25 October 2011 on consumer rights, amending Council Directive 93/13/EEC and Directive 1999/44/EC of the European Parliament and of the Council and repealing Council Directive 85/577/EEC and Directive 97/7/EC of the European Parliament and of the Council (OJ L 304, 22.11.2011, p. 64).
(66) Council Directive 93/13/EEC of 5 April 1993 on unfair terms in consumer contracts (OJ L 95, 21.4.1993, p. 29).
(67) Directive (EU) 2015/2366 of the European Parliament and of the Council of 25 November 2015 on payment services in the internal market, amending Directives 2002/65/EC, 2009/110/EC and 2013/36/EU and Regulation (EU) No 1093/2010, and repealing Directive 2007/64/EC (OJ L 337, 23.12.2015, p. 35).
(68) Directive 2013/11/EU of the European Parliament and of the Council of 21 May 2013 on alternative dispute resolution for consumer disputes and amending Regulation (EC) No 2006/2004 and Directive 2009/22/EC (Directive on consumer ADR) (OJ L 165, 18.6.2013, p. 63).
(69) Directive 2001/42/EC of the European Parliament and of the Council of 27 June 2001 on the assessment of the effects of certain plans and programmes on the environment (OJ L 197, 21.7.2001, p. 30).
(70) Commission Delegated Regulation (EU) 2015/2402 of 12 October 2015 reviewing harmonised efficiency reference values for separate production of electricity and heat in application of Directive 2012/27/EU of the European Parliament and of the Council and repealing Commission Implementing Decision 2011/877/EU (OJ L 333, 19.12.2015, p. 54).
(71) Regulation (EC) No 765/2008 of the European Parliament and of the Council of 9 July 2008 setting out the requirements for accreditation and market surveillance relating to the marketing of products and repealing Regulation (EEC) No 339/93 , (OJ L 218, 13.8.2008, p. 30–47).
(72) Commission Implementing Regulation (EU) 2018/2066 of 19 December 2018 on the monitoring and reporting of greenhouse gas emissions pursuant to Directive 2003/87/EC of the European Parliament and of the Council and amending Commission Regulation (EU) No 601/2012 (OJ L 334, 31.12.2018, p. 1).
(73) Commission Decision 2008/952/EC of 19 November 2008 establishing detailed guidelines for the implementation and application of Annex II to Directive 2004/8/EC of the European Parliament and of the Council (OJ L 338, 17.12.2008, p. 55).
(74) Regulation (EU) 2020/740 of the European Parliament and of the Council of 25 May 2020 on the labelling of tyres with respect to fuel efficiency and other parameters, amending Regulation (EU) 2017/1369 and repealing Regulation (EC) No 1222/2009 (OJ L 177, 5.6.2020, p. 1).
(75) Regulation (EU) 2019/631 of the European Parliament and of the Council of 17 April 2019 setting CO2 emission performance standards for new passenger cars and for new light commercial vehicles, and repealing Regulations (EC) No 443/2009 and (EU) No 510/2011 (OJ L 111, 25.4.2019, p. 13).
(76) Council Directive 2003/96/EC of 27 October 2003 restructuring the Community framework for the taxation of energy products and electricity (OJ L 283, 31.10.2003, p. 51).
(77) Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax (OJ L 347, 11.12.2006, p. 1).
(78) The amount of thermal energy needed to satisfy the heating and cooling demand of end-users.
(79) The most recent data available should be used.
(80) The most recent data available should be used.
(81) The identification of ‘renewable cooling’ shall, after the methodology for calculating the quantity of renewable energy used for cooling and district cooling is established in accordance with Article 35 of Directive (EU) 2018/2001, be carried out in accordance with that Directive. Until then it shall be carried out according to an appropriate national methodology.
(82) The analysis of the economic potential should present the volume of energy (in GWh) that can be generated per year by each technology analysed. The limitations and interrelations within the energy system should also be taken into account. The analysis may make use of models based on assumptions representing the operation of common types of technologies or systems.
(83) Including the assessment referred to in Article 15, paragraph 7 of Directive (EU) 2018/2001.
(84) The cut-off date for taking into account policies for the baseline scenario is the end of the year preceding to the year by the end of which the comprehensive assessment is due. That is to say, policies enacted within a year prior to the deadline for submission of the comprehensive assessment do not need to be taken into account.
(85) This overview shall include financing measures and programmes that may be adopted over the period of the comprehensive assessment, not prejudging a separate notification of the public support schemes for a State aid assessment.


Adequate minimum wages in the European Union ***I
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European Parliament legislative resolution of 14 September 2022 on the proposal for a directive of the European Parliament and of the Council on adequate minimum wages in the European Union (COM(2020)0682 – C9-0337/2020 – 2020/0310(COD))
P9_TA(2022)0316A9-0325/2021

(Ordinary legislative procedure: first reading)

The European Parliament,

–  having regard to the Commission proposal to Parliament and the Council (COM(2020)0682),

–  having regard to Article 294(2) and Article 153(2), in conjunction with point (b) of Article 153(1) of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C9‑0337/2020),

–  having regard to the opinion of the Committee on Legal Affairs on the proposed legal basis,

–  having regard to Article 294(3) of the Treaty on the Functioning of the European Union,

–  having regard to the reasoned opinions submitted, within the framework of Protocol No 2 on the application of the principles of subsidiarity and proportionality, by the Danish Parliament, the Maltese Parliament and the Swedish Parliament, asserting that the draft legislative act does not comply with the principle of subsidiarity,

–  having regard to the opinion of the European Economic and Social Committee of 25 March 2021(1),

–  having regard to the opinion of the Committee of the Regions of 19 March 2021(2),

–  having regard to the provisional agreement approved by the committee responsible under Rule 74(4) of its Rules of Procedure and the undertaking given by the Council representative by letter of 15 June 2022 to approve Parliament’s position, in accordance with Article 294(4) of the Treaty on the Functioning of the European Union,

–  having regard to Rules 59 and 40 of its Rules of Procedure,

–  having regard to the opinion of the Committee on Women's Rights and Gender Equality,

–  having regard to the report of the Committee on Employment and Social Affairs (A9-0325/2021),

1.  Adopts its position at first reading hereinafter set out;

2.  Calls on the Commission to refer the matter to Parliament again if it replaces, substantially amends or intends to substantially amend its proposal;

3.  Instructs its President to forward its position to the Council, the Commission and the national parliaments.

Position of the European Parliament adopted at first reading on 14 September 2022 with a view to the adoption of Directive (EU) 2022/… of the European Parliament and of the Council on adequate minimum wages in the European Union

P9_TC1-COD(2020)0310


THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union, and in particular Article 153 (2), point (b), in conjunction with ▌Article 153 (1), point (b), thereof,

Having regard to the proposal from the European Commission,

After transmission of the draft legislative act to the national parliaments,

Having regard to the opinion of the European Economic and Social Committee(3),

Having regard to the opinion of the Committee of the Regions(4),

Acting in accordance with the ordinary legislative procedure(5),

Whereas:

(1)  Pursuant to Article 3 of the Treaty on European Union (TEU), the aims of the Union are, inter alia, to promote the well-being of its peoples and to work for the sustainable development of Europe based on a highly competitive social market economy, aiming to ensure full employment and social progress, a high level of protection and improvement of the quality of the environment, while promoting social justice and equality between women and men. Pursuant to Article 9 of the Treaty on the Functioning of the European Union (TFEU), the Union is to take into account, inter alia, requirements linked to the promotion of a high level of employment, the guarantee of adequate social protection, and the fight against social exclusion.

(2)   Article 151 TFEU provides that the Union and the Member States, having in mind fundamental social rights such as those set out in the European Social Charter (ESC), have as their objectives, inter alia, the promotion of employment, improved living and working conditions, so as to make possible their harmonisation while the improvement is being maintained, proper social protection and dialogue between management and labour.

(3)  Article 31 of the Charter of Fundamental Rights of the European Union(6) (the ‘Charter’) provides for the right of every worker to working conditions which respect his or her health, safety and dignity. Article 27 of the Charter provides for the right of workers to information and consultation. Article 28 of the Charter provides for the right of workers and employers, or their respective organisations, in accordance with Union law and national laws and practices, to negotiate and conclude collective agreements at the appropriate levels. Article 23 of the Charter provides for the right to equality between women and men in all areas, including employment, work and pay.

(4)  The ESC establishes that all workers have the right to just conditions of work. It recognises the right of all workers to a fair remuneration sufficient for a decent standard of living for themselves and their families. It also recognises the role of freely concluded collective agreements, as well as of statutory minimum wage-setting mechanisms, to ensure the effective exercise of this right, the right of all workers and employers to organise in local, national and international organisations for the protection of their economic and social interests and the right to bargain collectively.

(5)  Chapter II of the European Pillar of Social Rights (the ‘Pillar’), proclaimed at Gothenburg on 17 November 2017, establishes a set of principles to serve as a guide towards ensuring fair working conditions. Principle No 6 of the Pillar ▌reaffirms workers’ right to fair wages that provide for a decent standard of living. It also provides that adequate minimum wages are to be ensured, in a way that provides for the satisfaction of the needs of the worker and his or her family in light of national economic and social conditions, while safeguarding access to employment and incentives to seek work. Furthermore, it recalls that in-work poverty is to be prevented and that all wages are to be set in a transparent and predictable way, according to national practices and respecting the autonomy of the social partners. Principle No 8 of the Pillar provides that the social partners are to be consulted on the design and implementation of economic, employment and social policies according to national practices and that they are to be encouraged to negotiate and conclude collective agreements in matters relevant to them, while respecting their autonomy and the right to collective action.

(6)  Guideline 5 in the annex to Council Decision (EU) 2020/1512(7) calls on Member States that have in place national mechanisms for the setting of statutory minimum wages to ensure an effective involvement of social partners in wage-setting, providing for fair wages that enable a decent standard of living, while paying particular attention to lower and middle income groups with a view to upward convergence. That Guideline also calls on Member States to promote social dialogue and collective bargaining with a view to wage-setting. It also calls on Member States and the social partners to ensure that all workers have adequate and fair wages by benefitting from collective agreements or adequate statutory minimum wages, and taking into account their impact on competitiveness, job creation and in-work poverty, while respecting national practices. The Commission communication of 17 September 2020 entitled ‘Annual Sustainable Growth Strategy 2021’ states that Member States should adopt measures to ensure fair working conditions. Moreover, the Commission communication of 17 December 2019 entitled ‘Annual Sustainable Growth Strategy 2020’ recalled that, in the context of growing social divides, it is important to ensure that each worker earns a fair wage. Country-specific recommendations have been issued to a number of Member States in the field of minimum wages with the aim of improving the setting and updating of minimum wages.

(7)  Better living and working conditions, including through adequate minimum wages, benefit ▌workers and businesses in the Union as well as society and the economy in general and are a prerequisite for achieving fair, inclusive and sustainable growth. Addressing large differences in the coverage and adequacy of minimum wage protection contributes to improving the fairness of the Union’s labour market, to preventing and reducing wage and social inequalities, and to promoting economic and social progress and upward convergence. Competition in the internal market should be based on high social standards, including a high level of worker protection and the creation of quality jobs, as well as on innovation and improvements in productivity, while ensuring a level playing field.

(8)  When set at adequate levels, minimum wages, as provided for in national law or collective agreements, protect the income of workers, in particular of disadvantaged workers, help ensure a decent living, as pursued by International Labour Organization (ILO) Minimum Wage Fixing Convention No 131 (1970). Minimum wages that provide for a decent standard of living and thus meet a threshold of decency can contribute to the reduction of poverty at national level and to sustaining domestic demand and purchasing power, strengthen incentives to work, reduce wage inequalities, the gender pay gap and in-work poverty, and limit the fall in income during economic downturns.

(9)   In-work poverty in the Union has increased over the past decade and more workers are experiencing poverty. During economic downturns, the role of adequate minimum wages in protecting low-wage workers is particularly important, as they are more vulnerable to the consequences of such downturns, and is essential for the purpose of supporting a sustainable and inclusive economic recovery, which should lead to an increase in quality employment. To ensure sustainable recovery, it is vital that businesses, in particular microenterprises and small enterprises, thrive. In view of the effects of the COVID-19 pandemic, it is important to assess the adequacy of wages in low-paid sectors that have proven to be essential and of great social value during the crisis.

(10)  Women, younger workers, migrant workers, single parents, low-skilled workers, persons with disabilities, and in particular persons who suffer from multiple forms of discrimination, still have a higher probability of being minimum wage or low wage earners than other groups. Given the over-representation of women in low-paid jobs, improving the adequacy of minimum wages contributes to gender equality, closing the gender pay and pension gap, as well as elevating women and their families out of poverty, and contributes to sustainable economic growth in the Union.

(11)  The crisis caused by the COVID-19 pandemic is having a significant impact on the services sector, microenterprises and small enterprises, which ▌have a high share of low-wage and minimum-wage earners. ▌Minimum wages are therefore also important in view of the structural trends that are reshaping labour markets and which are increasingly characterised by high shares of precarious and non-standard forms of work, often including part-time, seasonal, platform and temporary agency workers. Those trends have led, in many cases, to an increased job polarisation resulting in an increasing share of low-paid and low-skilled occupations and sectors in most Member States, as well as to higher wage inequality in some of them. It is more difficult for workers with non-standard contracts to organise and negotiate for collective agreements.

(12)  While minimum wage protection exists in all Member States, in some that protection stems from legislative or administrative provisions and from collective agreements while in others it is provided exclusively through collective agreements. The different national traditions in the Member States should be respected.

(13)  Minimum wage protection provided for in collective agreements in low-paid occupations is adequate and therefore provides a decent standard of living in most cases, and has proven to be an effective means by which to reduce in-work poverty. In several Member States, statutory minimum wages are usually low compared to other wages in the economy. In 2018, the statutory minimum wage did not provide sufficient income for a single minimum-wage earner to reach the at-risk-of-poverty threshold in nine Member States. ▌

(14)  Not all workers in the Union are effectively protected by minimum wages, as in some Member States some workers, even though they are covered, receive a lower remuneration than the statutory minimum wage in practice, due to non-compliance with existing rules. Such non-compliance has been found to affect, in particular, women, young workers, low-skilled workers, migrant workers, single parents, persons with disabilities, workers in non-standard forms of employment such as temporary workers and part-time workers, and agricultural and hospitality workers, which as a consequence drives down wages. In Member States where minimum wage protection is provided for in collective agreements alone, the share of workers not covered is estimated to vary from 2 % to 55 % of all workers.

(15)  The United Nations' Convention on the Rights of Persons with Disabilities requires that workers with disabilities, including those in sheltered employment, receive equal remuneration for work of equal value. That principle is also relevant with regard to minimum wage protection.

(16)  While strong collective bargaining, in particular at sector or cross-industry level, contributes to ensuring adequate minimum wage protection, traditional collective bargaining structures have been eroding during recent decades, due, inter alia, to structural shifts in the economy towards less unionised sectors and to the decline in trade union membership, in particular as a consequence of union-busting practices and the increase of precarious and non-standard forms of work. In addition, sectoral and cross-industry level collective bargaining came under pressure in some Member States in the aftermath of the 2008 financial crisis. However, sectoral and cross-industry level collective bargaining is an essential factor for achieving adequate minimum wage protection and therefore needs to be promoted and strengthened.

(17)  The Commission has consulted management and labour in a two-stage process with regard to possible action to address the challenges related to adequate minimum wage protection in the Union, in accordance with Article 154 TFEU. There was no agreement among the social partners to enter into negotiations with regard to those matters. It is, however, important to take action at Union level, while respecting the principle of subsidiarity, to improve living and working conditions in the Union, in particular the adequacy of minimum wages, taking into account the outcomes of the social partners’ consultation.

(18)  With a view to improving living and working conditions as well as upward social convergence in the Union, this Directive establishes minimum requirements at Union level and sets out procedural obligations for the adequacy of statutory minimum wages, and enhances effective access of workers to minimum wage protection, in the form of a statutory minimum wage where it exists, or provided for in collective agreements as defined for the purposes of this Directive. This Directive also promotes collective bargaining on wage-setting.

(19)  In accordance with Article 153(5) TFEU, this Directive neither aims to harmonise the level of minimum wages across the Union nor does it aim to establish a uniform mechanism for setting minimum wages. It does not interfere with the freedom of Member States to set statutory minimum wages or to promote access to minimum wage protection provided for in collective agreements, in accordance with national law and practice and the specificities of each Member State and in full respect for national competences and the social partners’ right to conclude agreements. This Directive does not impose and should not be construed as imposing an obligation on the Member States where wage formation is ensured exclusively via collective agreements to introduce a statutory minimum wage or to declare collective agreements universally applicable. Moreover, this Directive does not establish the level of pay, which falls within the right of the social partners to conclude agreements at national level and within the relevant competence of Member States.

(20)   This Directive takes into account that, in accordance with the Maritime Labour Convention, 2006(8), as amended, Member States who ratified that Convention are, after consulting representative ship-owners’ and seafarers’ organisations, to establish procedures for determining minimum wages for seafarers. Representative ship-owners’ and seafarers’ organisations are to participate in such procedures. In light of their specific nature, the acts of Member States resulting from such procedures should not be subject to the rules on statutory minimum wages set out in Chapter II of this Directive. Such acts should not interfere with free collective bargaining between ship-owners or their organisations and seafarers’ organisations.

(21)  While complying with Regulation (EC) No 593/2008 of the European Parliament and of the Council(9), this Directive should apply to workers who have an employment contract or employment relationship as defined by the law, collective agreements or practice in force in each Member State, with consideration to the criteria established by the Court of Justice of the European Union for determining the status of a worker. Provided that they fulfil those criteria, ▌ workers in both the private and the public sectors, as well as domestic workers, on-demand workers, intermittent workers, voucher-based workers, platform workers, trainees, apprentices and other non-standard workers, as well as bogus ▌self-employed and undeclared workers could fall within the scope of this Directive. Genuinely self-employed persons do not fall within the scope of this Directive since they do not fulfil those criteria. The abuse of the status of self-employed persons, as defined in national law, either at national level or in cross-border situations, is a form of falsely declared work that is frequently associated with undeclared work. Bogus self-employment occurs when a person is declared to be self-employed while fulfilling the conditions characteristic of an employment relationship, in order to avoid certain legal or fiscal obligations. Such persons should fall within the scope of this Directive. The determination of the existence of an employment relationship should be guided by the facts relating to the actual performance of the work and not by the parties' description of the relationship.

(22)  Well-functioning collective bargaining on wage-setting is an important means by which to ensure that workers are protected by adequate minimum wages that therefore provide for a decent standard of living. In the Member States with statutory minimum wages, collective bargaining supports general wage developments and therefore contributes to improving the adequacy of minimum wages as well as the living and working conditions of workers. In the Member States where minimum wage protection is provided for exclusively by collective bargaining, their level as well as the share of protected workers are directly determined by the functioning of the collective bargaining system and the collective bargaining coverage. Strong and well-functioning collective bargaining together with a high coverage of sectorial or cross-industry collective agreements strengthen the adequacy and the coverage of minimum wages.

(23)   Minimum wage protection through collective agreements is beneficial to workers and employers as well as businesses. In some Member States there are no statutory minimum wages. In those Member States, wages, including minimum wage protection, are provided for exclusively by collective bargaining between the social partners. Average wages in those Member States are among the highest in the Union. Those systems are characterised by very high collective bargaining coverage as well as high levels of affiliation to both the employer associations and trade unions. Minimum wages that are provided for in collective agreements that have been declared universally applicable without any discretion of the declaring authority as to the content of the applicable provisions should not be considered to be statutory minimum wages.

(24)  In a context of declining collective bargaining coverage, it is essential that the Member States promote collective bargaining, facilitate the exercise of the right of collective bargaining on wage-setting and thereby enhance the wage-setting provided for in collective agreements to improve workers’ minimum wage protection. Member States have ratified the ILO Freedom of Association and Protection of the Right to Organise Convention No 87 (1948) and Right to Organise and Collective Bargaining Convention No 98 (1949). The right to bargain collectively is recognised under those ILO Conventions, under the ILO Labour Relations (Public Services) Convention No 151 (1978) and the Collective Bargaining Convention No 154 (1981), as well as under the Convention for the Protection of Human Rights and Fundamental Freedoms and the ESC. Articles 12 and 28 of the Charter guarantee, respectively, the freedom of assembly and association and the right of collective bargaining and action. According to its preamble, the Charter reaffirms those rights as they result, in particular, from the Convention on the Protection of Human Rights and Fundamental Freedoms and the Social Charters adopted by the Union and by the Council of Europe. Member States should take, as appropriate and in accordance with national law and practice, measures promoting collective bargaining on wage-setting. Such measures might include, among others, measures easing the access of trade union representatives to workers.

(25)   Member States with a high collective bargaining coverage tend to have a small share of low-wage workers and high minimum wages. Member States with a small share of low-wage earners have a collective bargaining coverage rate above 80 %. Similarly, the majority of the Member States with high levels of minimum wages relative to the average wage have a collective bargaining coverage above 80 %. Therefore, each Member State with a collective bargaining coverage rate below 80 % should adopt measures with a view to enhancing such collective bargaining. Each Member State with a collective bargaining coverage below a threshold of 80 % should provide a framework of enabling conditions for collective bargaining, and establish an action plan to promote collective bargaining to progressively increase the collective bargaining coverage rate. In order to respect the autonomy of the social partners, which includes their right to collective bargaining and excludes any obligation to conclude collective agreements, the threshold of 80 % of collective bargaining coverage should only be construed as an indicator triggering the obligation to establish an action plan.

The action plan should be reviewed on a regular basis, at least every five years, and, if needed, revised. The action plan and any update thereof should be notified to the Commission and be made public. Each Member State should be able to decide on the appropriate form of its action plan. An action plan that a Member State has adopted before the entry into force of this Directive may be considered to be an action plan under this Directive provided that it contains actions to effectively promote collective bargaining and fulfils the obligations under this Directive. Each Member State should establish such an action plan after consulting the social partners or by agreement with them, or, following a joint request by the social partners, as agreed between them. Member States’ collective bargaining coverage rates vary significantly owing to a number of factors, including national tradition and practice as well as historic context. This should be taken into account when analysing progress towards a higher collective bargaining coverage, particularly with regard to the action plan provided for in this Directive.

(26)  Sound rules, procedures and effective practices for setting and updating statutory minimum wages are necessary to deliver adequate minimum wages, while safeguarding existing and creating new employment opportunities, a level playing field and the competitiveness of firms including microenterprises, small enterprises and medium-sized enterprises (SMEs). Those rules, procedures and practices include a number of components to contribute to the adequacy of statutory minimum wages, including criteria to guide Member States in setting and updating statutory minimum wages and indicators to assess their adequacy, regular and timely updates, the existence of consultative bodies and the involvement of the social partners. A timely and effective involvement of the latter in the setting and updating of statutory minimum wages as well as in the establishment or modification of automatic indexation mechanisms, where they exist, is another element of good governance that allows for an informed and inclusive decision-making process. Member States should provide the social partners with relevant information on statutory minimum wage-setting and updating. Giving the social partners the possibility to provide opinions, and to receive a reasoned response to opinions expressed prior to the presentation of proposals, on statutory minimum wage-setting and updating and before any decisions are taken could contribute to the proper involvement of the social partners in that process.

(27)   Member States which use an automatic indexation mechanism, including semi-automatic mechanisms in which a minimal obligatory increase of statutory minimum wage is at least guaranteed, should also carry out the procedures for updating the statutory minimum wages, at least every four years. Those regular updates should consist of an evaluation of the minimum wage taking into account the guiding criteria, followed, if necessary, by a modification of the amount. The frequency of the automatic indexation adjustments on the one hand and the updates of the statutory minimum wages on the other hand might differ. Member States where automatic or semi-automatic indexation mechanisms do not exist should update their statutory minimum wage at least every two years.

(28)  Minimum wages are considered to be adequate if they are fair in relation to the wage distribution in the relevant Member State and if they provide a decent standard of living for workers based on a full-time employment relationship. The adequacy of statutory minimum wages is determined and assessed by each Member State in view of its national socio-economic conditions, including employment growth, competitiveness and regional and sectoral developments. For the purpose of that determination, Member States should take into account purchasing power, long-term national productivity levels and developments, as well as wage levels wage distribution and wage growth.

Among other instruments, a basket of goods and services at real prices established at national level can be instrumental to determining the cost of living with the aim of achieving a decent standard of living. In addition to material necessities such as food, clothing and housing, the need to participate in cultural, educational and social activities could also be taken into consideration. It is appropriate to consider the setting and updating of statutory minimum wages separately from income support mechanisms. Member States should use indicators and associated reference values to guide their assessment of statutory minimum wage adequacy. The Member States might choose among indicators commonly used at international level and/or indicators used at national level. The assessment might be based on reference values commonly used at international level such as the ratio of the gross minimum wage to 60 % of the gross median wage and the ratio of the gross minimum wage to 50 % of the gross average wage, which are currently not met by all Member States, or the ratio of the net minimum wage to 50 % or 60 % of the net average wage. The assessment might also be based on reference values associated to indicators used at national level, such as the comparison of the net minimum wage with the poverty threshold and the purchasing power of minimum wages.

(29)  Without prejudice to the competence of Member States to set the statutory minimum wage and to allow for variations and deductions, it is important to avoid variations and deductions being used widely, as they risk negatively impacting the adequacy of minimum wages. It should be ensured that variations and deductions respect the principles of non-discrimination and proportionality. Variations and deductions should therefore pursue a legitimate aim. Examples of such deductions might be the recovery of overstated amounts paid or deductions ordered by a judicial or administrative authority. Other deductions, such as those related to the equipment necessary to perform a job or deductions of allowances in kind, such as accommodation, present a high risk of being disproportionate. Moreover, nothing in this Directive should be construed as imposing an obligation on Member States to introduce any variations of or deductions from minimum wages.

(30)  An effective enforcement system, including reliable monitoring, controls and field inspections, is necessary to ensure the functioning of and compliance with national statutory minimum wage frameworks. To strengthen the effectiveness of enforcement authorities, a close cooperation with the social partners is also needed, including to address critical challenges such as those related to abusive sub-contracting, bogus self-employment, non-recorded overtime or health and safety risks linked to an increased work intensity. The capabilities of enforcement authorities should also be developed, in particular through training and guidance. Routine and unannounced visits, judicial and administrative proceedings and penalties in the case of infringements are important means by which to dissuade employers from effecting infringements.

(31)  The effective implementation of minimum wage protection set out by legal provisions or provided for in collective agreements is essential in the awarding and the performance of public procurement and concession contracts. Non-respect for collective agreements providing for minimum wage protection ▌may indeed occur in the execution of such contracts or in the sub-contracting chain thereafter, resulting in workers being paid less than the wage level agreed in the sectoral collective agreements. To prevent such situations, ▌in accordance with Articles 30(3) and 42(1) of Directive 2014/23/EU(10), Articles 18(2) and 71(1) of Directive 2014/24/EU(11) and Articles 36(2) and 88(1) of Directive 2014/25/EU(12), of the European Parliament and the Council, public procurement contracting authorities and contracting entities are to take appropriate measures, including the possibility to introduce contract performance conditions, and ensure that economic operators apply to their workers the wages provided for in collective agreements for the relevant sector and geographical area and respect the rights of workers and trade unions arising from the ILO Freedom of Association and the Protection of the Right to Organise Convention No 87 (1948) and Right to Organise and Collective Bargaining Convention No 98 (1949), as referred to in those Directives, in order to abide by applicable obligations in the field of labour law. However, this Directive does not create any additional obligation in relation to those Directives.

(32)   For applicants for financial support from Union funds and programmes under Regulation (EU) 2021/1060 of the European Parliament and of the Council(13)and the enabling conditions therein, the rules for public procurement and concessions should be applied adequately, including with regard to compliance with collective agreements provisions.

(33)  Reliable monitoring and data collection are essential for effective minimum wage protection. For the purposes of data collection, Member States may rely on sufficiently representative sample surveys, national databases, harmonised data from Eurostat and other publicly accessible sources such as the Organisation for Economic Co-operation and Development. In exceptional cases where accurate data is not available, Member States might use estimates. Employers, in particular microenterprises and other SMEs, should not bear an unnecessary administrative burden with regard to the implementation of data collection requirements. The Commission should report every second year to the European Parliament and to the Council its analysis of levels and developments in the adequacy and coverage of statutory minimum wages as well as the collective bargaining coverage on the basis of ▌data and information to be provided by Member States.

In addition, progress should be monitored in the framework of the process of economic and employment policy coordination at Union level. In that context, the Council or the Commission can request the Employment Committee and the Social Protection Committee, in accordance with Articles 150 and 160 TFEU respectively, to examine, in their respective area of competence, the development of the collective bargaining coverage and the adequacy of statutory minimum wages in the Member States on the basis of the report produced by the Commission and other multilateral surveillance tools such as benchmarking. During such an examination, the Committees are to involve the social partners at Union level, including cross-sectoral social partners, in accordance with Articles 150 and 160 TFEU respectively.

(34)   Workers should have easy access to comprehensive information on statutory minimum wages as well as on minimum wage protection provided for in universally applicable collective agreements to ensure transparency and predictability as regards their working conditions, including for persons with disabilities in accordance with Directive (EU) 2016/2102 of the European Parliament and of the Council(14).

(35)  Workers and workers’ representatives, including those who are trade union members or representatives, should be in a position to exercise their right of defence when their rights relating to minimum wage protection are provided for in national law or collective agreements and have been violated. In order to prevent workers from being deprived of their rights provided for in national law or collective agreements and without prejudice to specific forms of redress and dispute resolution provided for in collective agreements, including systems of collective dispute resolution, Member States should take the necessary measures to ensure that workers have access to effective, timely and impartial dispute resolution and a right to redress, ▌ as well as effective judicial and/or administrative protection from any form of detriment, if they decide to exercise their right of defence. Social partners’ involvement in the further development of impartial dispute resolution mechanisms in Member States can be beneficial. Workers should be informed about the redress mechanisms for the purpose of exercising their right to redress.

(36)  The Commission should conduct an evaluation providing the basis for a review on the effective implementation of this Directive. The European Parliament and the Council should be informed of the results of such a review.

(37)  The reforms and measures adopted by the Member States to promote adequate minimum wage protection of workers, while being steps in the right direction, have not always been comprehensive and systematic. Moreover, action taken at Union level to improve the adequacy and coverage of minimum wages can contribute to further improving living and working conditions in the Union and mitigating concerns about possible adverse economic effects resulting from isolated measures of Member States. Since the objectives of this Directive cannot be sufficiently achieved by the Member States, but can rather, by reason of their scale and effects, be better achieved at Union level, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 TEU. In accordance with the principle of proportionality, as set out in that Article, this Directive does not go beyond what is necessary in order to achieve those objectives.

(38)  This Directive lays down procedural obligations as minimum requirements, thus leaving untouched Member States' prerogative to introduce and maintain more favourable provisions. Rights acquired under the existing national legal framework should continue to apply, unless more favourable provisions are introduced by this Directive. The implementation of this Directive cannot be used to reduce existing rights for workers, nor can it constitute valid grounds for reducing the general level of protection afforded to workers in the field covered by this Directive, including, in particular, with regard to the lowering or abolition of minimum wages.

(39)  In implementing this Directive Member States should avoid imposing unnecessary administrative, financial and legal constraints, in particular if they hold back the creation and development of SMEs. Member States are therefore encouraged to assess the impact of their transposition measures on SMEs in order to ensure that they are not disproportionately affected, paying particular attention to microenterprises and to the administrative burden, and to publish the results of such assessments. If Member States find that SMEs are disproportionately affected by the transposition measures, they should consider introducing measures to support SMEs to adjust their remuneration structures to the new requirements.

(40)  Regulations (EU) 2021/240 (15) and (EU) 2021/1057(16) are available to Member States to develop or improve the technical aspects of minimum wage frameworks, including on the assessment of adequacy, monitoring and data collection, broadening access, as well as on enforcement and on general capacity building relating to the implementation of those frameworks. In accordance with Regulation (EU) 2021/1057, Member States are to allocate an appropriate amount to the capacity building of the social partners,

HAVE ADOPTED THIS DIRECTIVE:

CHAPTER I

GENERAL PROVISIONS

Article 1

Subject matter

1.  With a view to improving living and working conditions in the Union, in particular the adequacy of minimum wages for workers in order to contribute to upward social convergence and reduce wage inequality, this Directive establishes a framework for:

(a)  adequacy of statutory minimum wages with the aim of achieving decent living and working conditions;

(b)   promoting collective bargaining on wage-setting;

(c)  enhancing effective access of workers to rights to minimum wage protection where provided for in national law and/or collective agreements ▌.

2.   This Directive shall be without prejudice to the full respect for the autonomy of the social partners, as well as their right to negotiate and conclude collective agreements.

3.  In accordance with Article 153(5) TFEU, this Directive shall be without prejudice to the competence of Member States in setting the level of minimum wages, as well as to the choice of the Member States to set statutory minimum wages, to promote access to minimum wage protection provided for in collective agreements, or both.

4.  The application of this Directive shall be in full compliance with the right to collective bargaining. Nothing in this Directive shall be construed as imposing an obligation on any Member State:

(a)   where wage formation is ensured exclusively via collective agreements, to introduce a statutory minimum wage; or

(b)   to declare any collective agreement universally applicable.

5.   The acts by which a Member State implements the measures concerning minimum wages of seafarers periodically set by the Joint Maritime Commission or another body authorised by the Governing Body of the International Labour Office shall not be subject to Chapter II of this Directive. Such acts shall be without prejudice to the right to collective bargaining and to the possibility to adopt higher minimum wage levels.

Article 2

Scope

This Directive applies to workers in the Union who have an employment contract or employment relationship as defined by law, collective agreements or practice in force in each Member State, with consideration to the case-law of the Court of Justice of the European Union.

Article 3

Definitions

For the purposes of this Directive, the following definitions apply:

(1)  ‘minimum wage’ means the minimum remuneration set by law or collective agreements that an employer, including in the public sector, is required to pay to workers for the work performed during a given period ▌;

(2)  ‘statutory minimum wage’ means a minimum wage set by law or other binding legal provisions, with the exclusion of minimum wages set by collective agreements that have been declared universally applicable without any discretion of the declaring authority as to the content of the applicable provisions;

(3)  ‘collective bargaining’ means all negotiations which take place according to national law and practice in each Member State between an employer, a group of employers or one or more employers’ organisations on the one hand, and one or more trade unions on the other, for determining working conditions and terms of employment; ▌

(4)  ‘collective agreement’ means a written agreement regarding provisions on working conditions and terms of employment concluded by the social partners that have the capacity to bargain on behalf of workers and employers respectively according to national law and practice, including collective agreements that have been declared universally applicable;

(5)  ‘collective bargaining coverage’ means the share of workers at national level to whom a collective agreement applies, calculated as the ratio of the number of workers covered by collective agreements to the number of workers whose working conditions may be regulated by collective agreements in accordance with national law and practice.

Article 4

Promotion of collective bargaining on wage-setting

1.  With the aim of increasing the collective bargaining coverage and of facilitating the exercise of the right to collective bargaining on wage-setting, Member States, with the involvement of the social partners, in accordance with national law and practice, shall:

(a)  promote the building and strengthening of the capacity of the social partners to engage in collective bargaining on wage-setting, in particular at sector or cross-industry level;

(b)  encourage constructive, meaningful and informed negotiations on wages between the social partners, on an equal footing, where both parties have access to appropriate information in order to carry out their functions in respect of collective bargaining on wage-setting;

(c)   take measures, as appropriate, to protect the exercise of the right to collective bargaining on wage-setting and to protect workers and trade union representatives from acts that discriminate against them in respect of their employment on the grounds that they participate or wish to participate in collective bargaining on wage-setting;

(d)  for the purpose of promoting collective bargaining on wage-setting, take measures, as appropriate, to protect trade unions and employers' organisations participating or wishing to participate in collective bargaining against any acts of interference by each other or each other’s agents or members in their establishment, functioning or administration.

2.  In addition, each Member State in which the collective bargaining coverage rate is less than a threshold of 80 % shall provide for a framework of enabling conditions for collective bargaining, either by law after consulting the social partners or by agreement with them. Such a Member State shall also establish an action plan to promote collective bargaining. The Member State shall establish such an action plan after consulting the social partners or by agreement with the social partners, or, following a joint request by the social partners, as agreed between the social partners. The action plan shall set out a clear timeline and concrete measures to progressively increase the rate of collective bargaining coverage, in full respect for the autonomy of the social partners. The Member State shall review its action plan regularly, and shall update it if needed. Where a Member State updates its action plan, it shall do so after consulting the social partners or by agreement with them, or, following a joint request by the social partners, as agreed between the social partners. In any event, such an action plan shall be reviewed at least every five years. The action plan and any update thereof shall be made public and notified to the Commission.

CHAPTER II

STATUTORY MINIMUM WAGES

Article 5

Procedure for setting adequate statutory minimum wages

1.  Member States with statutory minimum wages shall establish the necessary procedures for the setting and updating of statutory minimum wages. Such setting and updating shall be guided by criteria set to contribute to their adequacy, with the aim of achieving a decent standard of living, reducing in-work poverty, as well as promoting social cohesion and upward social convergence, and reducing the gender pay gap. Member States shall define those criteria in accordance with their national practices in relevant national law, in decisions of their competent bodies or in tripartite agreements. The criteria shall be defined in a clear way. Member States may decide on the relative weight of those criteria, including the elements referred to in paragraph 2, taking into account their national socio-economic conditions.

2.  The national criteria referred to in paragraph 1 shall include at least the following elements:

(a)  the purchasing power of statutory minimum wages, taking into account the cost of living ▌;

(b)  the general level of ▌wages and their distribution;

(c)  the growth rate of ▌wages;

(d)  long-term national productivity levels and developments.

3.   Without prejudice to the obligations set out in this Article, Member States may additionally use an automatic mechanism for indexation adjustments of statutory minimum wages, based on any appropriate criteria and in accordance with national laws and practices, provided that the application of that mechanism does not lead to a decrease of the statutory minimum wage.

4.  Member States shall use indicative reference values to guide their assessment of adequacy of statutory minimum wages. To that end, they may use indicative reference values commonly used at international level such as 60 % of the gross median wage and 50 % of the gross average wage, and/or indicative reference values used at national level.

5.  Member States shall ▌ensure that regular and timely updates of statutory minimum wages take place at least every two years or, for Member States which use an automatic indexation mechanism as referred to in paragraph 3, at least every four years.

6.  Each Member State shall designate or establish one or more consultative bodies to advise the competent authorities on issues related to statutory minimum wages, and shall enable the operational functioning of those bodies.

Article 6

Variations and deductions

1.  Where Member States ▌allow for different rates of statutory minimum wage for specific groups of workers or for deductions that reduce the remuneration paid to a level below that of the relevant statutory minimum wage, they shall ensure that those variations and deductions respect the principles of non-discrimination and proportionality, the latter including the pursuit of a legitimate aim.

2.  Nothing in this Directive shall be construed as imposing an obligation on Member States to introduce variations of or deductions from statutory minimum wages.

Article 7

Involvement of the social partners in the setting and updating of statutory minimum wages

Member States shall take the necessary measures to involve the social partners in the setting and updating of statutory minimum wages in a timely and effective manner that provides for their voluntary participation in the discussions throughout the decision-making process, including through participation in the consultative bodies referred to in Article 5(6) and in particular as concerns:

(a)  the selection and application of criteria for the determination of the level of the statutory minimum wage, and the establishment of an automatic indexation formula and its modification where such formula exists, referred to in Article 5(1), (2) and (3);

(b)   the selection and application of indicative reference values referred to in Article 5(4) for the assessment of the adequacy of statutory minimum wages;

(c)  the updates of statutory minimum wages referred to in Article 5(5);

(d)  the establishment of variations and deductions in statutory minimum wages referred to in Article 6;

(e)  the decisions both on the collection of data and the carrying out of studies and analyses to provide information to authorities and other relevant parties involved in statutory minimum wage-setting ▌.

Article 8

Effective access of workers to statutory minimum wages

Member States shall, with the involvement of the social partners, take the following measures to enhance the effective access of workers to statutory minimum wage protection as appropriate, including, where appropriate, strengthening its enforcement:

(a)  provide for effective, proportionate and non-discriminatory controls and field inspections conducted by labour inspectorates or the bodies responsible for the enforcement of statutory minimum wages ▌;

(b)  develop the capability of enforcement authorities, in particular through training and guidance, to proactively target and pursue non-compliant employers.

CHAPTER III

HORIZONTAL PROVISIONS

Article 9

Public procurement

In accordance with Directives 2014/23/EU, 2014/24/EU and 2014/25/EU, Member States shall take appropriate measures to ensure that, in the awarding and performance of public procurement or concession contracts, economic operators and their subcontractors comply with the applicable obligations regarding wages, the right to organise and collective bargaining on wage-setting, in the field of social and labour law established by Union law, national law, collective agreements or international social and labour law provisions, including ILO Freedom of Association and the Protection of the Right to Organise Convention No 87 (1948) and the ILO Right to Organise and Collective Bargaining Convention No 98 (1949).

Article 10

Monitoring and data collection

1.  Member States shall take the appropriate measures to ensure that effective data collection tools are in place to monitor minimum wage protection.

2.  Member States shall report the following data and information to the Commission every second year, before 1 October of the reporting year:

(a)   the rate and development of collective bargaining coverage;

(b)  for statutory minimum wages:

(i)  the level of the statutory minimum wage and the share of workers covered by it;

(ii)  a description of the existing variations and deductions and the reasons for their introduction and the share of workers covered by variations, as far as data is available;

(c)  for minimum wage protection provided for only in collective agreements:

(i)  the lowest pay rates provided for in collective agreements covering low-wage earners or an estimate thereof, if accurate data is not available to the responsible national authorities, and the share of workers covered by them or an estimate thereof, if accurate data is not available to the responsible national authorities;

(ii)  the level of wages paid to workers not covered by collective agreements and its relation to the level of wages paid to workers covered by collective agreements.

The Member States that are subject to the reporting obligations referred to in first subparagraph, point (c) shall be required to report the data referred to in point (i) thereof at least with regard to sectoral, geographical and other multi-employer collective agreements, including collective agreements that have been declared universally applicable.

Member States shall provide the statistics and information referred to in this paragraph disaggregated by gender, age, disability, company size and sector as far as available.

The first report shall cover ... , ... and ... [X, Y, Z: the three years preceding the year referred to in Article 17(1)] and shall be delivered by 1 October ... [three years after the year of entry into force of this Directive]. The Member States may omit statistics and information which are not available before ... [two years after the date of entry into force of this Directive].

3.  The Commission shall analyse the data and information transmitted by the Member States in the reports referred to in paragraph 2 and in the action plans referred to in Article 4(2). It shall report in this regard every second year to the European Parliament and to the Council and shall simultaneously publish the data and information transmitted by Member States.

Article 11

Information on minimum wage protection

Member States shall ensure that information regarding statutory minimum wages as well as minimum wage protection provided for in universally applicable collective agreements, including information on redress mechanisms, is publicly available, where necessary in the most relevant language, as determined by the Member State, in a comprehensive and easily accessible way, including to persons with disabilities.

Article 12

Right to redress and protection against adverse treatment or consequences

1.  Member States shall ensure that, without prejudice to specific forms of redress and dispute resolution provided for, where applicable, in collective agreements, workers, including those whose employment relationship has ended, have access to effective, timely and impartial dispute resolution and a right to redress, ▌in the case of infringements of ▌rights relating to statutory minimum wages or relating to minimum wage protection, where such rights are provided for in national law or collective agreements.

2.  Member States shall take the measures necessary to protect workers and workers' representatives, including those who are trade union members or representatives, from any adverse treatment by the employer and from any adverse consequences resulting from a complaint lodged with the employer or resulting from any proceedings initiated with the aim of enforcing compliance in the case of infringements of rights relating to ▌minimum wage protection, where such rights are provided for in national law or collective agreements.

Article 13

Penalties

Member States shall lay down the rules on penalties applicable to infringements of rights and obligations falling within the scope of this Directive, where those rights and obligations are provided for in national law or collective agreements. In Member States without statutory minimum wages, those rules may contain or be limited to a reference to compensation and/or contractual penalties provided for, where applicable, in rules on enforcement of collective agreements. The penalties provided for shall be effective, proportionate and dissuasive.

CHAPTER IV

FINAL PROVISIONS

Article 14

Dissemination of information

Member States shall ensure that the national measures transposing this Directive, together with the relevant provisions already in force relating to the subject matter as set out in Article 1, are brought to the attention of workers and employers, including SMEs.

Article 15

Evaluation and review

By ... [insert seven years after the date of entry into force of this Directive], the Commission shall, after consulting the Member States and the social partners at Union level, conduct an evaluation of this Directive. The Commission shall submit thereafter a report to the European Parliament and the Council reviewing the implementation of this Directive and propose, where appropriate, legislative amendments.

Article 16

Non-regression and more favourable provisions

1.  This Directive shall not constitute valid grounds for reducing the general level of protection already provided to workers within Member States, in particular with regard to the lowering or abolition of minimum wages.

2.  This Directive shall not affect Member States’ prerogative to apply or to introduce laws, regulations or administrative provisions which are more favourable to workers or to encourage or permit the application of collective agreements which are more favourable to workers. It shall not be construed as preventing Member States from increasing statutory minimum wages.

3.  This Directive is without prejudice to any ▌rights conferred on workers by other legal acts of the Union.

Article 17

Transposition and implementation

1.  Member States shall adopt the measures necessary to comply with this Directive by ... [two years after the date of entry into force of this Directive]. They shall immediately inform the Commission thereof.

When Member States adopt those measures, they shall contain a reference to this Directive or be accompanied by such reference on the occasion of their official publication. The methods of making such reference shall be laid down by Member States.

2.  Member States shall communicate to the Commission the text of the main measures of national law which they adopt in the field covered by this Directive.

3.   Member States shall take, in accordance with their national law and practice, adequate measures to ensure the effective involvement of the social partners with a view to the implementation of this Directive. To that end, they may entrust the social partners with that implementation, in all or in part, including with regard to the establishment of an action plan in accordance with Article 4(2), where the social partners jointly request to do so. In so doing, the Member States shall take all necessary steps to ensure that the obligations laid down in this Directive are complied with at all times.

4.   The communication referred to in paragraph 2 shall include a description of the involvement of the social partners in the implementation of this Directive.

Article 18

Entry into force

This Directive shall enter into force on the twentieth day following its publication in the Official Journal of the European Union.

Article 19

Addressees

This Directive is addressed to the Member States.

Done at ...,

For the European Parliament For the Council

The President The President

(1) OJ C 220, 9.6.2021, p. 106.
(2) OJ C 175, 7.5.2021, p. 89.
(3) Opinion of 25 March 2021 (not yet published in the OJ).
(4) Opinion of 19 March 2021 (not yet published in the OJ).
(5) Position of the European Parliament of 14 September 2022.
(6) OJ C 326, 26.10.2012, p. 391.
(7) Council Decision (EU) 2020/1512 of 13 October 2020 on guidelines for the employment policies of the Member States (OJ L 344, 19.10.2020, p. 22).
(8) Council Decision 2007/431/EC of 7 of June 2007 authorising Member States to ratify, in the interests of the European Community, the Maritime Labour Convention, 2006, of the International Labour Organisation (OJ L 161, 22.6.2007, p. 63).
(9) Regulation (EC) No 593/2008 of the European Parliament and of the Council of 17 June 2008 on the law applicable to contractual obligations (Rome I) (OJ L 177, 4.7.2008, p. 6).
(10) Directive 2014/23/EU of the European Parliament and of the Council of 26 February 2014 on the award of concession contract (OJ L 94, 28.3.2014, p. 1).
(11) Directive 2014/24/EU of the European Parliament and of the Council of 26 February 2014 on public procurement and repealing Directive 2004/18/EC (OJ L 94, 28.3.2014, p. 65).
(12) Directive 2014/25/EU of the European Parliament and of the Council of 26 February 2014 on procurement by entities operating in the water, energy, transport and postal services sectors and repealing Directive 2004/17/EC (OJ L 94, 28.3.2014, p. 243).
(13) Regulation (EU) 2021/1060 of the European Parliament and of the Council of 24 June 2021 laying down common provisions on the European Regional Development Fund, the European Social Fund Plus, the Cohesion Fund, the Just Transition Fund and the European Maritime, Fisheries and Aquaculture Fund and financial rules for those and for the Asylum, Migration and Integration Fund, the Internal Security Fund and the Instrument for Financial Support for Border Management and Visa Policy (OJ L 231, 30.6.2021, p. 159).
(14) Directive (EU) 2016/2102 of the European Parliament and of the Council of 26 October 2016 on the accessibility of the websites and mobile applications of public sector bodies (OJ L 327, 2.12.2016, p. 1).
(15) Regulation (EU) 2021/240 of the European Parliament and of the Council of 10 February 2021 establishing a Technical Support Instrument (OJ L 57, 18.2.2021, p. 1).
(16) Regulation (EU) 2021/1057 of the European Parliament and of the Council of 24 June 2021 establishing the European Social Fund Plus (ESF+) and repealing Regulation (EU) No 1296/2013 (OJ L 231, 30.6.2021, p. 21).


Renewable Energy Directive ***I
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Amendments adopted by the European Parliament on 14 September 2022 on the proposal for a directive of the European Parliament and of the Council amending Directive (EU) 2018/2001 of the European Parliament and of the Council, Regulation (EU) 2018/1999 of the European Parliament and of the Council and Directive 98/70/EC of the European Parliament and of the Council as regards the promotion of energy from renewable sources, and repealing Council Directive (EU) 2015/652 (COM(2021)0557 – C9-0329/2021 – 2021/0218(COD))(1)
P9_TA(2022)0317A9-0208/2022

(Ordinary legislative procedure: first reading)

[Amendment 1, unless otherwise indicated]

AMENDMENTS BY THE EUROPEAN PARLIAMENT(2)
P9_TA(2022)0317A9-0208/2022
to the Commission proposal
P9_TA(2022)0317A9-0208/2022
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P9_TA(2022)0317A9-0208/2022
2021/0218 (COD)
P9_TA(2022)0317A9-0208/2022
Proposal for a
P9_TA(2022)0317A9-0208/2022

DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL
amending Directive (EU) 2018/2001 of the European Parliament and of the Council,  Regulation (EU) 2018/1999 of the European Parliament and of the Council and Directive 98/70/EC of the European Parliament and of the Council  as regards the promotion of energy from renewable sources, and repealing Council Directive (EU) 2015/652

Having regard to the Treaty on the Functioning of the European Union, and in particular Article 114 and 194(2) thereof,

Having regard to the proposal from the European Commission,

After transmission of the draft legislative act to the national parliaments,

Having regard to the opinion of the European Economic and Social Committee(3),

Having regard to the opinion of the Committee of the Regions(4),

Acting in accordance with the ordinary legislative procedure,

Whereas:

(1)  The European Green Deal(5) establishes the objective of the Union becoming climate neutral in 2050 in a manner that contributes to the European economy, growth and job creation. That objective, and the objective of a ▌reduction of at least 55% greenhouse gas emissions by 2030 as set out in Regulation (EU) 2021/119 (the European Climate Law),, requires an energy transition and significantly higher shares of renewable energy sources in an integrated energy system.

(1a)  The energy transition affects Member States, regions, economic sectors and citizens differently and depending on their particular situation. It is therefore essential to ensure that the Green Deal is implemented in a way that promotes economic, social and territorial cohesion in the Union and that the energy transition is just and inclusive. In particular, it must be ensured that disruptions are avoided in critical sectors that meet basic needs of the economy and society, such as mobility.

(1b)  Energy is an essential production factor that is in constant demand and vitally important in economic, social and environmental terms. All human activities, including transport, depend on sufficient and affordable energy being available when needed.

(1c)   The General Union Environment Action Programme to 2030 (8th EAP) sets out thematic priority objectives for 2030 in the areas of climate change mitigation, adaptation to climate change, protecting and restoring biodiversity, a non-toxic circular economy, a zero pollution environment and minimising environmental pressures from production and consumption across all sectors of the economy and recognises that these objectives, which address both drivers and impacts of environmental damage, are inherently interlinked. The 8th EAP also has a long-term priority objective that by 2050 at the latest, people live well, within the planetary boundaries in a well-being economy where nothing is wasted, growth is regenerative, climate neutrality in the Union has been achieved and inequalities have been significantly reduced. A healthy environment underpins the well-being of all people and is an environment in which biodiversity is conserved, ecosystems thrive, and nature is protected and restored, leading to increased resilience to climate change, weather and climate-related disasters and other environmental risks.

(1d)   The General Union Environment Action Programme to 2030 (‘8th EAP’), the framework for Union action in the field of the environment and climate, aims to accelerate the green transition to a climate-neutral, sustainable, non-toxic, resource-efficient, renewable energy-based, resilient and competitive circular economy in a just, equitable and inclusive way, and to protect, restore and improve the state of the environment by, inter alia, halting and reversing biodiversity loss. It supports and strengthens an integrated policy and implementation approach, building upon the European Green Deal. The 8th EAP recognises that achieving this transition will require systemic change which, according to the EEA, entails a fundamental, transformative and cross-cutting change that implies major shifts and reorientation in system goals, incentives, technologies, social practices and norms, as well as in knowledge systems and governance approaches.

(1e)   Ensuring that legislative initiatives, programmes, investments, projects and their implementation are consistent with, contribute where relevant, and do no harm to any of the 8th EAP objectives is necessary for the objectives’ achievement. Furthermore, ensuring that social inequalities resulting from climate- and environmental-related impacts and policies are minimised and that measures taken to protect the environment and climate are carried out in a socially fair and inclusive way, as well as gender mainstreaming throughout climate and environmental policies, including by incorporating a gender perspective at all stages of the policy-making process, will be required to meet the objectives of the 8th EAP and, as such, are also laid down as enabling conditions in the 8th EAP.

(1f)   The 2030 climate mitigation objective of the 8th EAP is swift and predictable reduction of greenhouse gas emissions and, at the same time, enhancement of removals by natural sinks in the Union to attain the 2030 greenhouse gas emission reduction target as laid down in Regulation (EU) 2021/1119, in line with the Union’s climate and environment objectives, whilst ensuring a just transition that leaves no one behind. To help achieve its objectives, the 8th EAP also lays down the enabling condition of phasing out of environmentally harmful subsidies, including through setting a deadline for the phasing out of fossil fuel subsidies consistent with the ambition of limiting global warming to 1,5°C as well as a binding Union framework to monitor and report on Member States’ progress towards phasing out fossil fuel subsidies, based on an agreed methodology.

(1g)  This Directive aims to ensure that, as part of the EU´s energy policy, investments in renewable energy production are encouraged while upholding the energy sovereignty of each Member State.

(1h)  The renewable energy directive is part of the ‘Fit for 55 package’, which will also have multiple effects on the Union, including on competitiveness, job creation, household purchasing power, the achievement of climate targets and on the magnitude of carbon leakage. As such, a comprehensive evaluation of the aggregated macroeconomic impact of the Regulations that make up the ‘Fit for 55 package’ should be carried out on a regular basis.

(2)  Renewable energy plays a fundamental role in delivering the European Green Deal and for achieving climate neutrality by 2050, given that the energy sector contributes over 75% of total greenhouse gas emissions in the Union. By reducing those greenhouse gas emissions, renewable energy also contributes to tackling environmental-related challenges such as biodiversity loss, land, water and air pollution, as long as the use of the renewable energy sources themselves does not exacerbate those challenges. The low operating costs of renewable energy and the reduced exposure to price shocks compared to fossil fuels gives renewable energy a key role in tackling energy poverty.

(2a)  With ever more countries committing to climate-neutrality by mid-century, both domestic and global demand for renewable technologies are projected to rise and offer significant opportunities for job creation, the expansion of a European renewables industrial base and continued European leadership in research and development of innovative renewable technologies, which in turn enhance the competitive advantage of European companies and the EU's energy independence from fossil fuel imports.

(2b)  The share of gross final energy consumption from renewable sources in EU reached 22 % in 2020(6), 2 percentage points (pp) above the target for the share of renewable energy in gross final energy consumption for 2020, as set out in Directive 2009/28/EC on the promotion of the use of energy from renewable sources.

(2c)   Renewable energy is a key enabler of sustainable development, contributing directly and indirectly to many Sustainable Development Goals (SDGs), including poverty alleviation, education, water and sanitation. Renewables also bring broad socio-economic benefits, creating new jobs and fostering local industries.

(2d)  At international level, at the 2021 United Nations Climate Change Conference (COP 26) the Commission, together with global partners, committed to end direct support for the international unabated fossil fuel energy and to use these funds for the deployment of renewable energy.

(2e)  At COP26, the Commission together with global leaders elevated the global ambition level for the preservation and recovery of global forests, and for an accelerated transition to zero emissions transportation.

(2f)   Renewable energy production often takes place at local level and depends on regional SMEs; Member States should therefore fully involve local and regional authorities when setting targets and supporting policy measures.

(2g)  Since around 35 million Europeans are affected by energy poverty(7), renewable energy policies have an important role to play in any strategy to tackle energy poverty and consumer vulnerability.

(3)  Directive (EU) 2018/2001 of the European Parliament and of the Council(8) sets a binding Union target to reach a share of at least 32 % of energy from renewable sources in the Union's gross final consumption of energy by 2030. Under the Climate Target Plan, the share of renewable energy in gross final energy consumption would need to increase to 45 % by 2030 in order to achieve the Union’s greenhouse gas emissions reduction target(9). Therefore, the target set out in Article 3 of that Directive needs to be increased.

(3a)  In line with the Commission recommendation of 28 September 2021 entitled "On Energy Efficiency First: from principles to practice. Guidelines and examples for its implementation in decision-making in the energy sector and beyond", this Directive should take an integrated approach by promoting the most energy efficient renewable source for any given sector and application, as well as by promoting system efficiency, so that the least energy is required for different economic activities.

(3b)  In line with the Commission Communication of 18 May 2022 entitled “REPowerEU Plan”, boosting the production of sustainable biomethane to at least 35 bcm by 2030 is a cost-efficient path to increase the share of renewable energy and diversify EU gas supply, thereby supporting security of supply and EU climate ambitions. The Commission should develop an EU strategy to address the regulatory barriers to scale biomethane production and integration in the EU internal gas market.

(3c)  To support the cost-effective achievement of the renewable energy target and the electrification of end-use sectors, while empowering households and industries to play an active part in securing and decarbonising the EU energy system and rewarding them for that, Member States should ensure that the national regulatory framework enables the reduction of peak electricity demand through the activation of demand-side flexibility in all end-use sectors. To that end, Member States could introduce in their integrated energy and climate plans a minimum target for the reduction of peak electricity demand of at least 5 % by 2030, to increase system flexibility, in accordance with Article 4(d)(3) of Regulation (EU) 2018/1999.

(3d)   One of the five cohesion policy objectives for the period 2021-2027 is that of a greener Europe by promoting investment in clean energy, the circular economy, climate change mitigation and sustainable transport. Cohesion policy funds should therefore target preventing any increase in disparities, helping those regions bearing the heaviest transition burden, encouraging investment in infrastructure, and training workers in new technologies to ensure no one is left behind.

(3e)   The ERDF will have to support promoting energy efficiency and a reduction in greenhouse gas emissions; promote renewable energy; the development of smart energy systems and networks, and promote sustainable, multimodal, urban mobility, in the context of the transition towards a net zero carbon economy; the ESF+ has to contribute to improvements in education and training systems necessary for the adaptation of skills and qualifications, the upskilling of all, including the labour force, the creation of new jobs in sectors related to the environment, climate, energy, the circular economy and the bioeconomy (Article 4 of the ESF+ Regulation).

(3f)  Renewable energy production has a strong local dimension. It is therefore important that the Member States fully involve local and regional authorities in the planning and implementation of national climate measures, provide direct access to funds and monitor the progress of the measures adopted. Where applicable, the Member States should incorporate local and regional contributions into national energy and climate plans.

(3g)   Recognises the important role cohesion policy plays in contributing to helping island regions achieve climate neutrality goals, bearing in mind the additional costs connected to sectors such as energy and transport, as well as the impact of mobile technology on their energy systems, which require a level of investment for management of intermittent renewable energy sources that is, proportionately speaking, very high.

(3h)   Points out that owing to their small size and isolated energy systems, the most remote island regions, just like the outermost regions, face a major challenge when it comes to energy supply as they generally rely on fossil fuel imports for electricity generation, transport and heating.

(3i)   Considers that use of renewable energy, including tidal power, should be a priority and believes it could benefit islands substantially, bearing in mind the local communities' requirements, including preservation of the islands' traditional architecture and local habitat; calls, therefore, for support for the development of a wide range of renewable energy sources based on their geographical features; welcomes the green hydrogen programmes which islands have launched.

(4)  There is a growing recognition of the need for alignment of bioenergy policies with the cascading principle of biomass use(10), with a view to ensuring fair access to the biomass raw material market for the development of innovative, high value-added bio-based solutions and a sustainable circular bioeconomy. When developing support schemes for bioenergy, Member States should therefore take into consideration the available sustainable supply of biomass for energy and non-energy uses and the maintenance of the national forest carbon sinks and ecosystems, the protection of biodiversity as well as the principles of the circular economy and the biomass cascading use, and the waste hierarchy established in Directive 2008/98/EC of the European Parliament and of the Council(11). However, they should be able to grant support for the production of energy from stumps or roots in the case of waste or residues derived from the implementation of works carried out with the primary objective of nature conservation and landscape management, such as from roadsides. In any event, Member States should avoid promoting the use of quality roundwood for energy except in well-defined circumstances, for example wildfire prevention and salvage logging. In line with the cascading principle, woody biomass should be used according to its highest economic and environmental added value in the following order of priorities: 1) wood-based products, 2) extending their service life, 3) re-use, 4) recycling, 5) bio-energy and 6) disposal. Where no other use for woody biomass is economically viable or environmentally appropriate, energy recovery helps to reduce energy generation from non-renewable sources. Member States’ support schemes for bioenergy should therefore be directed to such feedstocks for which little market competition exists with the material sectors, and whose sourcing is considered positive for both climate and biodiversity, in order to avoid negative incentives for unsustainable bioenergy pathways, as identified in the JRC report ‘The use of woody biomass for energy production in the EU’13(12) . On the other hand, in defining the further implications of the cascading principle, it is necessary to recognise the national specificities, which guide Member States in the design of their support schemes. Waste prevention, reuse and recycling of waste should be the priority option. Member States should avoid creating support schemes which would be counter to targets on treatment of waste and which would lead to the inefficient use of recyclable waste. Moreover, in order to ensure a more efficient use of bioenergy, from 2026 on Member States should not give support anymore to electricity-only plants, unless the installations are in regions with a specific use status as regards their transition away from fossil fuels, if they use carbon capture and storage or if the installations cannot be modified in a direction to cogeneration in exceptional justified cases upon approval by the Commission.

(5)  The rapid growth and increasing cost-competitiveness of renewable electricity production can be used to satisfy a growing share of energy demand, for instance using heat pumps for space heating or low-temperature industrial processes, electric vehicles for transport, or electric furnaces in certain industries. Renewable electricity can also be used to produce synthetic fuels for consumption in hard-to-decarbonise transport sectors such as aviation and maritime transport. Innovative technologies in connections with a dedicated target should be developed, as they could contribute towards the 2030 climate goals as well as the 2050 climate targets. A framework for electrification needs to enable robust and efficient coordination and expand market mechanisms to match both supply and demand in space and time, stimulate investments in flexibility, energy storage, demand response and other flexibility mechanisms and help integrate large shares of variable renewable generation. Member States should therefore, in accordance with the energy efficiency first principle, ensure that the deployment of renewable electricity continues to increase at an adequate pace to meet growing demand, including by coordinating import strategies at Union level, while also ensuring that demand flexibly adapts to renewable energy generation. For this, Member States should establish a framework that includes market-compatible mechanisms to tackle remaining barriers to have secure and adequate electricity systems fit for a high level of flexible renewable energy, as well as storage facilities, fully integrated into the electricity system. In particular, this framework shall tackle remaining barriers, including non-financial ones such as insufficient digital and human resources of authorities to process a growing number of permitting applications.

(5a)  Innovative technologies, such as hybrid heat pumps, need to be developed and used within the criteria of Directive (EU) 2018/2001, as they can be used as a transition technology towards the 2030 climate goals as well as contributing to the achievement of the 2050 climate targets.

(5b)   The future EU's economic governance framework should encourage Member States to implement the reforms necessary to accelerate the green transition, and enable investments in needed technologies.

(6)  When calculating the share of renewables in a Member State, renewable fuels of non-biological origin should be counted in the sector where they are consumed (electricity, heating and cooling, or transport). Where renewable fuels of non-biological origin are consumed in a Member State different from the one where they have been produced, energy generated by the use of renewable fuels of non-biological origin should be accounted for 80 % of their volume in the country and sector where it is consumed and for 20 % of their volume in the country where it produced, unless agreed otherwise between the Member States concerned. Agreements between Member States can be in the form of a specific cooperation agreement made via the Union Renewable Development Platform (URDP). The Commission should be notified of any such agreements and make available information on them, including the exact volumes of supply and demand, the times of the transfer and the date by which the arrangement will become operational. For the subtargets, the renewable fuels of non-biological origin shall be accounted for 100 % of their volume in the country where they are consumed. To avoid double-counting, the renewable electricity used to produce these fuels should not be counted. This would result in a harmonisation of the accounting rules for these fuels throughout the Directive, regardless of whether they are counted for the overall renewable energy target or for any sub-target. It would also allow to count the real energy consumed, taking account of energy losses in the process to produce those fuels. Moreover, it would allow for the accounting of renewable fuels of non-biological origin imported into and consumed in the Union.

(6a)  Since the charging current is sustainable only if it is produced from clean energy, life cycle analyses of electrified heat, transport and industrial products should always take into account the remaining fossil shares of the preceding electricity generation.

(7)  Member States’ cooperation to promote renewable energy can take the form of statistical transfers, support schemes or joint projects. It allows for a cost-efficient deployment of renewable energy across Europe and contributes to market integration. Despite its potential, cooperation has been very limited, thus leading to suboptimal results in terms of efficiency in increasing renewable energy. Member States should therefore be obliged to test cooperation through implementing ▌pilot projects by December 2025 and by 2030 a third project, for Member States with an annual electricity consumption of more than 100 TWh. Projects financed by national contributions under the Union renewable energy financing mechanism established by Commission Implementing Regulation (EU) 2020/1294(13) would meet this obligation for the Member States involved.

(7a)   All fields of EU policies must orient its actions towards the newly established climate targets and achieve climate neutrality. This is the case for Cohesion Policy, which has, for over twenty years, contributed to decarbonising the economy, while providing examples and best practices that can be mirrored in other policy dimensions, such as the amending of this Directive. Cohesion policy not only offers investment opportunities to respond to local and regional needs through the European Structural and Investment (ESI) Funds, but also provides an integrated policy framework to reduce developmental disparities between the European regions and helps them address the multiple challenges to their development, including through environmental protection, high-quality employment and fair, inclusive and sustainable development.

(7b)  Local and regional authorities play a crucial role in integrated and decentralised energy systems. The Commission should therefore help regional and local authorities to work across borders by helping them to set up cooperation mechanisms, including the European grouping of territorial cooperation (EGTC).

(7c)   Cohesion policy ensures greater coherence and coordination between the cohesion policy and other EU legislative fields, improving the policy integration of climate aspects, designing more effective source-based policies, providing targeted EU funding and, consequently, improving the implementation of climate policies on the ground.

(7d)   It is paramount to fully uphold multi-level governance and partnership principles in the transition to a climate-neutral economy, as local and regional authorities have direct competencies on the environment and climate change, implementing 90% of climate adaptation and 70% of climate mitigation actions. Furthermore, these authorities also develop actions that aim to promote climate-friendly behaviour among citizens, including those linked to waste management, smart mobility, sustainable housing and energy consumption.

(8)  The Offshore Renewable Energy Strategy introduces an ambitious objective of 300 GW of offshore wind and 40 GW of ocean energy across all the Union’s sea basins by 2050. To ensure this step change, Member States will need to work together across borders at sea-basin level. Member States should therefore jointly define, and allocate adequate space in their maritime spatial plan for, the amount of offshore renewable generation to be deployed within each sea basin by 2050, with intermediate steps in 2030 and 2040. Should there be a possible gap between the potential amount of offshore renewable energy resources of the Member States and the planned amount of offshore renewable energy, the Commission should take additional measures to reduce that gap. These objectives should be reflected in the updated national energy and climate plans that will be submitted in 2023 and 2024 pursuant to Regulation (EU) 2018/1999. In defining the amount, Member States should take into account the offshore renewable energy potential of each sea basin, the technical and economic feasibility of the transmission grid infrastructure, environmental protection, biodiversity, climate adaptation and other uses of the sea, especially the activities that already take place in the affected areas and the possible harm to the environment, as well as the Union’s decarbonisation targets. In addition, Member States should increasingly consider the possibility of combining offshore renewable energy generation with transmission lines interconnecting several Member States, in the form of hybrid projects or, at a later stage, a more meshed grid. This would allow electricity to flow in different directions, thus maximising socio-economic welfare, optimising infrastructure expenditure and enabling a more sustainable usage of the sea. Member States bordering a sea basin should use the maritime spatial planning process to ensure a strong public participation approach so that the views of all stakeholders and coastal communities are taken into account.

(8a)  The conditions considered necessary for harnessing the potential of renewable energy in European seas and oceans, including those around the islands and outermost regions are varying. Therefore, the Union undertakes to establish alternative technologies capable of not impacting the marine environment adversely for these areas of particular interest.

(8b)   The geographical diversity and alternative uses of the marine environment have to be taken into account in order for the renewable energy potential of all Europe's seas and oceans to be harnessed, and this calls for a far broader set of technological solutions. These solutions include floating offshore wind and solar farms, energy from waves, currents and tides, the differential in thermal or saline gradients, marine cooling, heating and geothermal energy and marine biomass (algae).

(8c)  The installation of renewable energy projects on rural land and on agricultural land in general should be governed by the principles of proportionality, complementarity and compensation. Member States should ensure the orderly deployment of renewable projects in order to avoid the loss of agricultural land, and encourage the development and use of appropriate technologies that render renewable energy production compatible with agricultural and livestock production.

(9)  The market for renewable power purchase agreements is rapidly growing and provides a complementary route to the market of renewable power generation in addition to support schemes by Member States or to selling directly on the wholesale electricity market. At the same time, these agreements provide the producer with the security of a certain income, whilst the user can benefit from a stable electricity price. The market for renewable power purchase agreements is still limited to a small number of Member States and large companies, with significant administrative, technical and financial barriers remaining in large parts of the Union’s market. Besides renewable power purchase agreements, the Commission shall assess barriers to the roll-out of renewable heating and cooling purchase agreements, which will play an increasing role in reaching the EU's climate and renewables targets. The existing measures in Article 15 to encourage the uptake of renewable power purchase agreements should therefore be strengthened further, by exploring the use of credit guarantees to reduce these agreements’ financial risks, taking into account that these guarantees, where public, should not crowd out private financing.

(10)  Overly complex and excessively long administrative procedures constitute a major barrier for the deployment of renewable energy. Further streamlining of administrative and permitting procedures is needed to ease the administrative burden for both renewable energy projects and the related grid infrastructure projects. Within one year after the entry into force of this Directive, the Commission should revise guidelines on permit granting to shorten and simplify processes for new, repowering and the upgrade of renewable projects. Key performance indicators should be developed in the context of these guidelines.

(10a)   Local and regional authorities are key actors when it comes to bringing Europe closer to achieving its energy and climate objectives. Energy production at the local level is crucial to foster renewable energy production, reduce external energy dependence and decrease energy poverty rates.

(11)  Buildings have a large untapped potential to contribute effectively to the reduction in greenhouse gas emissions in the Union. The decarbonisation of heating and cooling in this sector through an increased share in production and use of renewable energy, particularly in the local context, will be needed to meet the ambition set in the European Climate Law to achieve the Union objective of climate neutrality. However, progress on the use of renewables for heating and cooling has been stagnant in the last decade, largely relying on increased use of biomass. Without the establishment of indicative targets to increase the production and use of renewable energy in buildings, there will be no ability to track progress and identify bottlenecks in the uptake of renewables. It should be possible for Member States to count waste heat and cold towards the indicative target for renewable energy in buildings, up to a limit of 20 %, with an upper limit of 54 %. Furthermore, the creation of targets will provide a long-term signal to investors, including for the period immediately after 2030. This will complement obligations related to energy efficiency and the energy performance of buildings and comply with the energy efficiency first principle. Therefore, indicative targets for the use of renewable energy in buildings should be set to guide and incentivise Member States’ efforts to exploit the potential of using and producing renewable energy on-site or nearby in buildings and encourage the development of ▌technologies which produce renewable energy and help their efficient integration in the energy system, while providing certainty for investors and local level engagement, as well as contributing to system efficiency. Emission trading schemes are designed to increase fossil energy costs and lead to market-driven energy saving investments or switching to renewable energy. Double burdens for consumers through emissions trading schemes and other targets required under Union law should be avoided.

(11a)  Following the invasion of Ukraine by Russia, the case for a rapid energy transition has never been stronger and clearer. Russia provides more than 40% of the EU's total gas consumption, which is mostly used in the building sector, which is responsible for 40% of the EU’s total energy consumption. By accelerating the roll out of solar rooftops and heat pumps the EU could save significant amounts of fossil fuel imports. Frontloading such investments will further accelerate the reduction of EU dependence from external suppliers. According to REPowerEU, for 2022 alone an additional 2,5 bcm of gas could be saved by installing up to 15 TWh of rooftop solar PV systems, and an additional 12bcm by every 10 million heat pumps installed. At the same time this would be a major booster to local job markets, alone such an installation wave for solar roof tops could create up to 225.000 local jobs in the installation business(14).

(12)  Insufficient numbers of skilled workers, in particular installers and designers of renewable heating and cooling systems, slow down the replacement of fossil fuel heating systems by renewable energy based systems and is a major barrier to integrating renewables in buildings, industry and agriculture. Member States should cooperate with social partners and renewable energy communities to anticipate the skills that will be needed. A sufficient number of high-quality and effective upskilling and reskilling strategies and training programmes and certification possibilities ensuring proper installation and reliable operation of a wide range of renewable heating and cooling systems and storage technologies, as well as electric vehicles charging points, should be made available and designed in a way to attract participation in such training programmes and certification systems. Member States should consider what actions should be taken to attract groups currently under-represented in the occupational areas in question. The list of trained and certified installers should be made public to ensure consumer trust and easy access to tailored designer and installer skills guaranteeing proper installation and operation of renewable heating and cooling.

(12a)  Agricultural and horticultural businesses have space and roof area and they produce biomass. These are assets that allow them to play a key role in the energy transition of rural areas and within rural communities, especially given the decentralised production. The sector is a relatively small user of energy and can produce significantly more renewable energy than it needs. This is why the roll-out of energy sharing and energy communities should be further encouraged and supported.

(13)  Guarantees of origin are a key tool for consumer information as well as for the further uptake of renewable power purchase agreements. In order to establish a coherent Union base for the use of guarantees of origin and to provide access to appropriate supporting evidence for persons concluding renewable power purchase agreements, all renewable energy producers should be able to receive a guarantee of origin without prejudice to Member States’ obligation to take into account the market value of the guarantees of origin if the energy producers receive financial support. The system of guarantees of origin provided for by Member States should be a harmonised system applicable throughout the Union. A more flexible energy system and growing consumer demands call for a more innovative, digital, technologically advanced and reliable tool to support and document the increasing production of renewable energy. In particular, innovative technologies can ensure a higher spatial and temporal granularity of guarantees of origin. To facilitate digital innovation in this field, Member States should introduce additional size granularity in their schemes for guarantees of origin.

(13a)  In line with the Joint European Action for more affordable, secure and sustainable energy set out in the Commission communication of 8 March 2022, where relevant, Member States should assess the need to extend existing gas network infrastructure to facilitate the integration of gas from renewable sources and to reduce reliance on fossil fuels, in particular if that infrastructure contributes significantly to the interconnection between at least two Member States or between a Member State and a third country.

(14)  Infrastructure development for district heating and cooling networks should be stepped up and steered towards harnessing a wider range of renewable heat and cold sources in an efficient and flexible way in order to increase the deployment of renewable energy and deepen energy system integration. It is therefore appropriate to update the list of renewable energy sources that district heating and cooling networks should increasingly accommodate and require the integration of thermal energy storage as a source of flexibility, greater energy efficiency and more cost-effective operation.

(14a)  Member States’ actions to integrate intermittent renewable electricity in the grid, while ensuring grid stability and security of supply, can relate to the development of solutions such as storage facilities, demand-side management and grid-balancing power plants and high-efficient cogeneration plants that participate in grid-balancing in support of intermittent renewable electricity.

(15)  With more than 30 million electric vehicles expected in the Union by 2030 it is necessary to ensure that they can fully contribute to the system integration of renewable electricity, and thus allow reaching higher shares of renewable electricity in a cost-optimal manner. The potential of electric vehicles to absorb renewable electricity at times when it is abundant and feed it back into a grid when there is scarcity has to be fully utilised, contributing to the system integration of variable renewable electricity while ensuring a secure and reliable supply of electricity. It is therefore necessary to introduce specific measures on electric vehicles and information about renewable energy and how and when to access it which complement those in Directive (EU) 2014/94 of the European Parliament and of the Council(15) and the [proposed Regulation concerning batteries and waste batteries, repealing Directive 2006/66/EC and amending Regulation (EU) No 2019/1020]. Furthermore, solar-electric vehicles can make a crucial contribution to the decarbonisation of the European transport sector. They are significantly more energy efficient compared to traditional battery electric vehicles, do not extensively rely on the electricity grid for charging, and can generate additional clean energy that may be fed into the grid through bidirectional charging, contributing to Europe’s energy independence and generation of renewable energy [Am. 26].

(15a)  The potential of grid-balancing power plants and cogeneration plants that participate in grid-balancing in support of intermittent renewable electricity, thus allowing the expansion of such renewable electricity, should be fully utilised.

(16)  In order for flexibility and balancing services from the aggregation of distributed storage assets to be developed in a competitive manner, real-time access to basic battery information such as state of health, state of charge, capacity and power set point should be provided under non-discriminatory terms, in full compliance with the relevant provisions of Regulation (EU) 2016/679 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data (General Data Protection Regulation)(16), and free of charge to the owners or users of the batteries and the entities acting on their behalf through explicit consent, such as building energy system managers, mobility service providers and other electricity market participants, such as electric vehicle users. It is therefore appropriate to introduce measures addressing the need of access to such data for facilitating the integration-related operations of domestic batteries and electric vehicles, smart heating and cooling systems, and other smart devices, complementing the provisions on access to battery data related to facilitating the repurposing of batteries in [the proposed Commission regulation concerning batteries and waste batteries, repealing Directive 2006/66/EC and amending Regulation (EU) No 2019/1020]. The provisions on access to battery data of electric vehicles should apply in addition to any laid down in Union law on type approval of vehicles.

(17)  The increasing number of electric vehicles in road, rail, maritime and other transport modes will require that recharging operations are optimised and managed in a way that does not cause congestion and takes full advantage of the availability of renewable electricity and low electricity prices in the system. In situations where smart and bidirectional charging would assist further penetration of renewable electricity by electric vehicle fleets in transport and the electricity system in general, such functionality should also be made available. In view of the long life span of recharging points, requirements for charging infrastructure should be kept updated in a way that would cater for future needs and would not result in negative lock-in effects to the development of technology and services.

(18)  Electric vehicle users entering into contractual agreements with electromobility service providers and electricity market participants should have the right to receive information and explanations on how the terms of the agreement will affect the use of their vehicle and the state of health of its battery. Electromobility service providers and electricity market participants should explain clearly to electric vehicle users how they will be remunerated for the flexibility, balancing and storage services provided to the electricity system and market by the use of their electric vehicle. Electric vehicle users also need to have their consumer rights secured when entering into such agreements, in particular regarding the protection of their personal data such as location and driving habits, in connection to the use of their vehicle. Electric vehicle users’ preference regarding the type of electricity purchased for use in their electric vehicle, as well as other preferences, can also be part of such agreements. For the above reasons, it is important to ensure that the charging infrastructure that is to be deployed is used most effectively. In order to improve consumer confidence in e-mobility, it is essential that electric vehicle users can use their subscription at multiple recharging points. This will also allow the electric vehicle user’s service provider of choice to optimally integrate the electric vehicle in the electricity system, through predictable planning and incentives based on the electric vehicle user preferences. This is also in line with the principles of a consumer-centric and prosumer-based energy system, and the right of supplier choice of electric vehicle users as final customers as per the provisions of Directive (EU) 2019/944.

(18a)  Beyond domestic and electric vehicle batteries, a variety of other appliances such as smart heating and cooling devices, hot water tanks, thermal energy storage units and other smart devices have a significant demand response potential which should urgently be tapped to allow consumers to provide their flexibility to the energy system. It is therefore necessary to introduce measures enabling real-time access to data relevant for demand response to users, as well as to third parties acting on the owners’ and users’ behalf, such as electricity market participants, under non-discriminatory terms and free of charge, in full compliance with the relevant provisions of Regulation (EU) 2016/679.

(19)  Accordingly, distributed and decentralised generation, demand response and storage assets, such as domestic batteries and batteries of electric vehicles, smart heating and cooling systems and other smart devices and thermal energy storage have the potential to offer considerable flexibility and balancing services to the grid through aggregation. In order to facilitate the development of such devices and related services, the regulatory provisions concerning connection and operation of the decentralised generation and storage assets, such as tariffs, commitment times and connection specifications, should be designed in a way that does not hamper the potential of all storage assets, including small and mobile ones, to offer flexibility and balancing services to the system and to contribute to the further penetration renewable electricity, in comparison with larger, stationary storage assets. Member States should also provide a level playing-field for smaller market actors, in particular renewable energy communities, so that they are able to participate in the market without facing a disproportionate administrative or regulatory burden.

(20)  Recharging points where electric vehicles typically park for extended periods of time, such as where people park for reasons of residence or employment, are highly relevant to energy system integration, therefore smart and bidirectional charging functionalities need to be ensured. Specific initiatives should be taken to increase the number of recharging points in rural and sparsely populated areas and to ensure adequate distribution in the most remote and mountainous areas. In this regard, the operation of non-publicly accessible normal charging infrastructure, for example through smart metering systems, is particularly important for the integration of electric vehicles in the electricity system as it is located where electric vehicles are parked repeatedly for long periods of time, such as in buildings with restricted access, employee parking or parking facilities rented out to natural or legal persons.

(21)  Industry accounts for 25 % of the Union’s energy consumption, and is a major consumer of heating and cooling, which is currently supplied 91 % by fossil fuels. However, 50 % of heating and cooling demand is low-temperature (<200 °C) for which there are cost-effective renewable energy options, including through direct renewable electrification, industrial heat-pumps and geothermal solutions. In addition, industry uses non-renewable sources as raw materials to produce products such as steel or chemicals. Industrial investment decisions today will determine the future industrial processes and energy options that can be considered by industry, so it is important that those investments decisions are future-proof and avoid the creation of stranded assets. Therefore, benchmarks should be put in place to incentivise industry to switch to a renewables-based production processes that not only are fuelled by renewable energy, but also use renewable-based raw materials such as renewable hydrogen. ▌

(21a)  Member States should promote the necessary spatial planning instruments that classify agricultural soils and identify soils of high agricultural value on the basis of their edaphological characteristics. In their policies for the development and promotion of renewable energies, Member States should ensure the purpose of these soils is preserved for agricultural and livestock use.

(22)  In application of the energy efficiency first principle, renewable fuels of non-biological origin can be used for energy purposes, but also for non-energy purposes as feedstock or raw material in industries such as steel or chemicals. The use of renewable fuels of non-biological origin for both purposes exploits their full potential to replace fossil fuels used as feedstock and to reduce greenhouse gas emissions in industrial processes which are difficult to electrify and should therefore be included in a target for the use of renewable fuels of non-biological origin. National measures to support the uptake of renewable fuels of non-biological origin in those industrial sectors should not result in net pollution increases due to an increased demand for electricity generation that is satisfied by the most polluting fossil fuels, such as coal, diesel, lignite, oil peat and oil shale.

(22a)  As referred to in the EU Hydrogen Strategy, low-carbon fuels and low carbon hydrogen can play a role in the energy transition to reduce emissions of existing fuels. As low-carbon fuels and low-carbon hydrogen are not renewable fuels, the revision of Directive (EU) .../... [Directive gas and hydrogen] should define the complementary provisions on the role of low-carbon fuels and low-carbon hydrogen to achieve carbon neutrality by 2050.

(23)  Increasing ambition in the heating and cooling sector is key to delivering the overall renewable energy target given that heating and cooling constitutes around half of the Union's energy consumption, covering a wide range of end uses and technologies in buildings, industry and district heating and cooling. To accelerate the increase of renewables in heating and cooling, an annual 1.1 ▌should be made binding as a minimum for all Member States, with an indicative target going up to 2.3, according to the REPowerEU level. For those Member States, which already have renewable shares above 50% in the heating and cooling sector, it should remain possible to only apply half of the binding annual increase rate and Member States with 60% or above may count any such share as fulfilling the average annual increase rate in accordance with points b) and c) of paragraph 2 of Article 23. Member States should carry out, with the involvement of local and regional authorities and in accordance with the energy efficiency first principle, an assessment of their potential of energy from renewable sources in the heating and cooling sector and of the use of waste heat and cold. In addition, Member State-specific top-ups should be set, redistributing the additional efforts to the desired level of renewables in 2030 among Member States based on GDP and cost-effectiveness. A longer list of different measures should also be included in Directive (EU) 2018/2001 to facilitate increasing the share of renewables in heating and cooling. Member States should implement three measures from the list of measures. When adopting and implementing those measures, Member States should ensure their accessibility to all consumers, in particular those in low-income or vulnerable households, and should require a significant share of measures to be implemented as a priority in low-income households at risk of energy poverty and in social housing [Am. 38].

(24)  To ensure that a greater role of district heating and cooling is accompanied by better information for consumers, it is appropriate to clarify and strengthen the disclosure of the renewables share and the associated greenhouse gas emissions, as well as the energy efficiency of these systems.

(24a)  The agricultural sector has the potential to produce additional renewable electricity. This renewable electricity is produced in a decentralised way, which is an opportunity in the energy transition. In order to put this electricity on the grid, this grid needs to have sufficient capacity. However, in rural areas the grid often ends and therefore has insufficient capacity to accommodate additional electricity. Grid reinforcement in rural areas should be strongly encouraged so that farms can actually fulfil their potential contribution to the energy transition through decentralised electricity production.

(24b)  Small-scale on-farm energy production installations have an enormous potential to increase the on-farm circularity by transforming the waste and residual streams of the farm, amongst others manure, into heat and electricity. Therefore, all barriers should be removed to encourage farmers to invest in these technologies towards a circular farm, such as pocket digesters. One of these barriers is the valorisation of residues of the process, for instance RENURE, as well as ammonium sulphate, which should be able to be categorised and used as fertilizers.

(25)  Modern renewable-based efficient district heating and cooling systems have demonstrated their potential to provide cost-effective solutions for integrating renewable energy, increased energy efficiency and energy system integration, facilitating the overall decarbonisation of the heating and cooling sector. To ensure this potential is harnessed, the annual increase of renewable energy and/or waste heat in district heating and cooling should be raised from 1 percentage point to 2.3without changing the indicative nature of this increase, reflecting the uneven development of this type of network across the Union.

(26)  To reflect the increased importance of district heating and cooling and the need to steer the development of these networks towards the integration of more renewable energy, it is appropriate to set requirements to ensure the connection of third party suppliers of renewable energy and waste heat and cold with district heating or cooling networks systems above 25MW.

(27)  Waste heat and cold are underused despite their wide availability, leading to a waste of resources, lower energy efficiency in national energy systems and higher than necessary energy consumption in the Union. Requirements for closer coordination between district heating and cooling operators, industrial and tertiary sectors, and local authorities could facilitate the dialogue and cooperation necessary to harness cost-effective waste heat and cold potentials via district heating and cooling systems.

(28)  To ensure district heating and cooling participate fully in energy sector integration, it is necessary to extend the cooperation with electricity distribution system operators to electricity transmission system operators and widen the scope of cooperation to grid investment planning and markets to better utilise the potential of district heating and cooling for providing flexibility services in electricity markets. Further cooperation with gas network operators, including hydrogen and other energy networks, should also be made possible to ensure a wider integration across energy carriers and their most cost-effective use.

(29)  The use of renewable fuels and renewable electricity in transport can contribute to the decarbonisation of the Union transport sector in a cost-effective manner, and improve, amongst other, energy diversification in that sector while promoting innovation, growth and jobs in the Union economy and reducing reliance on energy imports. With a view to achieving the increased target for greenhouse gas emission savings defined by the Union, the level of renewable energy supplied to all transport modes in the Union should be increased. Expressing the transport target as a greenhouse gas intensity reduction target would stimulate an increasing use of the most cost-effective and performing fuels, in terms of greenhouse gas savings, in transport. In addition, a greenhouse gas intensity reduction target would stimulate innovation and set out a clear benchmark to compare across fuel types and renewable electricity depending on their greenhouse gas intensity. Complementary to this, increasing the level of the energy-based target on advanced biofuels and biogas and introducing a target for renewable fuels of non-biological origin would ensure an increased use of the renewable fuels with smallest environmental impact in transport modes that are difficult to electrify. The achievement of those targets should be ensured by obligations on fuel suppliers as well as by other measures included in [Regulation (EU) 2021/XXX on the use of renewable and low-carbon fuels in maritime transport - FuelEU Maritime and Regulation (EU) 2021/XXX on ensuring a level playing field for sustainable air transport]. Dedicated obligations on aviation fuel suppliers should be set only pursuant to [Regulation (EU) 2021/XXX on ensuring a level playing field for sustainable air transport].

(29a)  The COVID-19 pandemic has demonstrated the strategic importance of the transport sector. The implementation of green lanes, which provided secure supply chains for health care and emergency services, essential food supply and pharmaceutical products was a good practice, which in the future should take precedence over emissions reduction in times of crisis.

(29b)  The implementation or installation of wind-assisted propulsion and wind propulsion systems is considered as a renewable energy source and one of the decarbonisation solutions for maritime transport.

(30)  Electromobility will play an essential role in decarbonising the transport sector. To foster the further development of electromobility, Member States should establish a credit mechanism enabling operators of charging points accessible to the public to contribute, by supplying renewable electricity or renewable energy, towards the fulfilment of the obligation set up by Member States on fuel suppliers. Member States can include private recharging stations in this mechanism, if it can be demonstrated that the renewable electricity supplied to those recharging stations is provided solely to electric vehicles. While supporting electricity in transport through such a mechanism, it is important that Member States continue setting a high level of ambition for the decarbonisation of their liquid fuel mix, particularly in hard-to-decarbonise transport sectors, such as maritime and aviation, where direct electrification is much more difficult.

(30a)  Hydrogen can be used as feedstock or a source of energy in industrial and chemical processes and in air and maritime transport, decarbonising sectors in which direct electrification is not technologically possible or competitive, as well as for energy storage to balance, where necessary, the energy system, thereby playing a significant role in energy system integration.

(30b)  The Union regulatory framework and initiatives aimed at achieving the greenhouse gas emission reduction targets should support the industry to shift towards a more sustainable European energy system, especially when establishing new targets and production thresholds.

(31)  The Union’s renewable energy policy aims to contribute to achieving the climate change mitigation objectives of the European Union in terms of the reduction of greenhouse gas emissions. In the pursuit of this goal, it is essential to also contribute to wider environmental objectives, and in particular the prevention of biodiversity loss, which is negatively impacted by the indirect land use change associated to the production of certain biofuels, bioliquids and biomass fuels. Likewise, inadequate planning of the installations of large wind or photovoltaic projects can have undesired effects on biodiversity, on landscapes, and on local communities. The indirect effects of deforestation and soil compaction, the effects of wind turbines and the conflicts of land use with regard to solar parks should also be taken into account. Contributing to these climate and environmental objectives constitutes a deep and longstanding intergenerational concern for Union citizens and the Union legislator. The Union should thus promote fuels in quantities which balance the necessary ambition with the need to avoid contributing to direct and indirect land-use change. As a consequence, the changes in the way the transport target is calculated should not affect the limits established on how to account toward that target certain fuels produced from food and feed crops on the one hand and high indirect land-use change-risk fuels on the other hand. In addition, in order not to create an incentive to use biofuels and biogas produced from food and feed crops in transport and to take into consideration the war against Ukraine, Member States should continue to be able to choose whether count them or not towards the transport target. If they do not count them, they may reduce the greenhouse gas intensity reduction target accordingly, assuming that food and feed crop-based biofuels save 50 % greenhouse gas emissions, which corresponds to the typical values set out in an annex to this Directive for the greenhouse gas emission savings of the most relevant production pathways of food and feed crop-based biofuels as well as the minimum savings threshold applying to most installations producing such biofuels. In addition, Member States should also consider securing additional food supply to stabilise global food commodity markets..

(31a)  Account should be taken of Article 349 of the Treaty on the Functioning of the European Union (TFEU), which acknowledges the particular vulnerability of the outermost regions arising from their remoteness from mainland regions, insularity, small size, difficult topography and climate and economic dependence on a few products, a combination that severely restrains their development and generates substantial extra costs in many areas, particularly for transport. Efforts being made and targets set at European level for greenhouse gas reduction must be adapted to this difficult situation, balancing environmental objectives against the high social costs for these regions.

(32)  Expressing the transport target as a greenhouse gas intensity reduction target makes it unnecessary to use multipliers to promote certain renewable energy sources. This is because different renewable energy sources save different amounts of greenhouse gas emissions and, therefore, contribute differently to a target. Renewable electricity should be considered to have zero emissions, meaning it saves 100% emissions compared to electricity produced from fossil fuels. This will create an incentive for the use of renewable electricity since renewable fuels and recycled carbon fuels are unlikely to achieve such a high percentage of savings. Electrification relying on renewable energy sources would therefore become the most efficient way to decarbonise road transport. In addition, in order to promote the use of advanced biofuels and biogas and renewable fuels of non-biological origin in the aviation and maritime modes, which are difficult to electrify, it is appropriate to keep the multiplier for those fuels supplied in those modes when counted towards the specific targets set for those fuels.

(33)  Direct electrification of end-use sectors, including the transport sector, contributes to the system efficiency and facilitates the transition to an energy system based on renewable energy. It is therefore in itself an effective means to reduce greenhouse gas emissions. The creation of a framework on additionality applying specifically to renewable electricity supplied to electric vehicles in the transport is therefore not required [Am. 10].

(34)  Since renewable fuels of non-biological origin are to be counted as renewable energy regardless of the sector in which they are consumed, the rules to determine their renewable nature when produced from electricity, which were applicable only to those fuels when consumed in the transport sector, should be extended to all renewable fuels of non-biological origin, regardless of the sector where they are consumed.

(34 a)   Electricity obtained from direct connection to one or several installations generating renewable electricity may be fully counted as renewable electricity where it is used for the production of renewable fuels of non- biological origin. Installations demonstrate that the electricity concerned has been supplied without taking electricity from the grid. Electricity taken from the grid may be counted as fully renewable provided that it is produced exclusively from renewable sources and the renewable properties and other appropriate criteria have been demonstrated by the conclusion of a power purchasing agreement. In order to be fully qualified as renewable fuel of non-biological origin, the geographical correlation should be on bidding zone level and should also take into consideration offshore situations. Renewable properties of that electricity are to be claimed only once and only in one end-use sector. The same should apply to renewable fuels of non-biological origin imported in the Union [Am. 11].

(35)  To ensure higher environmental effectiveness of the Union sustainability and greenhouse emissions saving criteria for solid biomass fuels in installations producing heating, electricity and cooling, the minimum threshold for the applicability of such criteria should be lowered from the current 20 MW to 7.5 MW.

(36)  Directive (EU) 2018/2001 strengthened the bioenergy sustainability and greenhouse gas savings framework by setting criteria for all end-use sectors. It set out specific rules for biofuels, bioliquids and biomass fuels produced from forest biomass, requiring the sustainability of harvesting operations and the accounting of land-use change emissions. To achieve an enhanced protection of especially biodiverse and carbon-rich habitats, such as primary and old-growth forests, highly biodiverse forests, grasslands, peat lands and heathlands, exclusions and limitations to source forest biomass from those areas should be introduced, in line with the approach for biofuels, bioliquids and biomass fuels produced from agricultural biomass. In addition, the greenhouse gas emission saving criteria should also apply to existing biomass-based installations to ensure that bioenergy production in all such installations leads to greenhouse gas emission reductions compared to energy produced from fossil fuels. Semi-natural forests as forests or other wooded land that are neither primary forest nor plantation forest and composed predominantly of native trees and shrub species which have not been planted have a high biodiversity and climate value and should not be transformed into plantation forests or otherwise degraded. Special attention should be given towards forest science to address open questions and provide data, as they are key for understanding better the role of our trees for climate, environment, economy and society. Biofuels, bioliquids and biomass fuels produced from agricultural and forest biomass and Renewable Fuels of Non-Biological Origin should be obtained from lands or forests for which third parties’ rights concerning use and tenure of the land or forest are respected by obtaining free, prior and informed consent of these third parties, with the participation by representative institutions and organisations, while human and labour rights of third parties are respected and the availability of food and feed for third parties is not at risk.

(37)  In order to reduce the administrative burden for producers of renewable fuels and recycled carbon fuels and for Member States, where voluntary or national schemes have been recognised by the Commission through an implementing act as giving evidence or providing accurate data regarding the compliance with sustainability and greenhouse gas emissions saving criteria as well as other requirements set in this Directive, Member States should accept the results of the certification issued by such schemes within the scope of the Commission’s recognition. In order to reduce the burden on small installations, Member States should establish a simplified verification mechanism for installations of between 5 and 20 MW.

(38)  The Union database to be set up by the Commission aims at enabling the tracing of liquid and gaseous renewable fuels and recycled carbon fuels. Its scope should be extended from transport to all other end-use sectors in which such fuels are consumed. This should make a vital contribution to the comprehensive monitoring of the production and consumption of those fuels, mitigating risks of double-counting or irregularities along the supply chains covered by the Union database. In addition, to avoid any risk of double claims on the same renewable gas, a guarantee of origin issued for any consignment of renewable gas registered in the database should be cancelled. This database should be made publicly available in an open, transparent and user friendly manner. The Commission should publish annual reports for the general public about the information reported in the Union database, including the quantities, the geographic origin and feedstock type of biofuels, bioliquids and biomass fuels.

(38a)  In order to offset of the regulatory burdens for citizens, administrations and businesses introduced by this Directive, the Commission should, in the framework of its annual burden survey conducted pursuant to paragraph 48 of the Interinstitutional Agreement of 13 April 2016 on Better Law-Making, review the regulatory framework in the concerned sectors in line with the “one in, one out” principle, as set out in the Commission communication of 29 April 2021 entitled “Better Regulation: Joining forces to make better laws”, and, where appropriate, present legislative proposals for the amendment or deletion of provisions in other Union legislative acts that generate compliance costs in those sectors.

(38b)  Adequate anti-fraud provisions must be laid down, in particular in relation to used cooking oil (UCO) given the widespread mixing of palm oil. As the detection and prevention of fraud is essential to prevent unfair competition and rampant deforestation in third countries, full and certified traceability of these raw materials should be implemented.

(39)  The Governance Regulation (EU) 2018/1999 makes several references in a number of places to the Union-level binding target of at least 32 % for the share of renewable energy consumed in the Union in 2030. As that target needs to be increased in order to contribute effectively to the ambition to decrease greenhouse gas emissions by at least 55 % by 2030, those references should be amended. Any additional planning and reporting requirements set will not create a new planning and reporting system, but should be subject to the existing planning and reporting framework under Regulation (EU) 2018/1999.

(40)  The scope of Directive 98/70/EC of the European Parliament and of the Council(17) should be amended in order to avoid a duplication of regulatory requirements with regard to transport fuel decarbonisation objectives and align with Directive (EU) 2018/2001.

(40a)  It is also important to encourage research and innovation in the field of clean energies, such as hydrogen, in order to meet the growing demand for alternative fuels and, above all, to make available on the market energy that is cheaper than fossil fuels like diesel, fuel oil and petrol, for which prices are now hitting record highs.

(41)  The definitions of Directive 98/70/EC should be amended in order to align them with Directive (EU) 2018/2001 and thereby avoid different definitions being applied in those two acts.

(42)  The obligations regarding the greenhouse gas emissions reduction and the use of biofuels in Directive 98/70/EC should be deleted in order to streamline and avoid double regulation with regards to the strengthened transport fuel decarbonisation obligations which are provided for in Directive (EU) 2018/2001.

(43)  The obligations regarding the monitoring of and reporting on the greenhouse gas emission reductions set out in Directive 98/70/EC should be deleted to avoid regulating reporting obligations twice.

(44)  Council Directive (EU) 2015/652, which provides the detailed rules for the uniform implementation of Article 7a of Directive 98/70/EC, should be repealed as it becomes obsolete with the repeal of Article 7a of Directive 98/70/EC by this Directive.

(45)  As regards bio-based components in diesel fuel, the reference in Directive 98/70/EC to diesel fuel B7, that is diesel fuel containing up to 7 % fatty acid methyl esters (FAME), limits available options to attain higher biofuel incorporation targets as set out in Directive (EU) 2018/2001. That is due to the fact that almost the entire Union supply of diesel fuel is already B7. For that reason the maximum share of bio-based components should be increased from 7% to 10%. Sustaining the market uptake of B10, that is diesel fuel containing up to 10 % fatty acid methyl esters (FAME), requires a Union-wide B7 protection grade for 7% FAME in diesel fuel due to the sizeable proportion of vehicles not compatible with B10 expected to be present in the fleet by 2030. This should be reflected in Article 4, paragraph 1, second subparagraph of Directive 98/70/EC as amended by this act.

(45a)   A greater use of renewable energy can also increase energy security and self-sufficiency by, amongst other things, reducing dependence on fossil fuels. However, further reinforcement and interconnection of the transmission system is essential for the fair and efficient use of this transition, so that the resulting benefits are spread evenly across the population of the Union and do not lead to energy poverty.

(46)  The transitional provisions should allow for an ordered continuation of data collection and the fulfilment of reporting obligations with respect to the articles of Directive 98/70/EC deleted by this Directive.

(47)  In accordance with the Joint Political Declaration of 28 September 2011 of Member States and the Commission on explanatory documents(18), Member States have undertaken to accompany, in justified cases, the notification of their transposition measures with one or more documents explaining the relationship between the components of a directive and the corresponding parts of national transposition instruments. With regard to this Directive, the legislator considers the transmission of such documents to be justified, in particular following the judgment of the European Court of Justice in Case Commission vs Belgium(19) (case C-543/17).

(47a)   There is enormous potential for the Union and its developing partner countries in terms of technology cooperation, renewable energy projects and clean energy exports and development of greater interconnectivity of clean energy grids. Despite their steady growth overall, renewable energy investments remain concentrated in a handful of regions and countries. Regions dominated by developing and emerging countries remain consistently underrepresented, attracting only about 15 % of global investments in renewables(20). Union energy partnerships should target renewable energy generation projects, as well as supporting the development of renewable energy projects and setting legal and financial frameworks, and should include the provision of necessary technical assistance and knowledge transfer in close cooperation with the private sector. Commitments on good governance and the perspective of stable, long-term collaboration should be conditional for Union cooperation. Sustainable energy cooperation should be key priority for suitable countries under the Global Gateway Initiative [Am. 12].

HAVE ADOPTED THIS DIRECTIVE:

Article 1

Amendments to Directive (EU) 2018/2001

Directive (EU) 2018/2001 is amended as follows:

(1)  in Article 2, the second paragraph is amended as follows:

(-a)  point (1) is replaced by the following:"

‘(1)‘energy from renewable sources’ or ‘renewable energy’ means energy from renewable non-fossil sources, namely wind, solar (solar thermal and solar photovoltaic) and geothermal energy, osmotic energy, ambient energy, tide, wave and other ocean energy, hydropower, biomass, landfill gas, sewage treatment plant gas, and biogas;’;

"

(-aa)  in point (16), point (c) is replaced by the following:"

‘(c) the primary purpose of which is to provide environmental, economic or social community benefits, in accordance with the energy efficiency first principle, for its shareholders or members or for the local areas where it operates, rather than financial profits;’;

"

(a)  point (36) is replaced by the following:"

‘(36) ‘renewable fuels of non-biological origin’ means liquid and gaseous fuels the energy content of which is derived from renewable sources other than biomass;’;

"

(b)  point (47) is replaced by the following:"

‘(47) ‘default value’ means a value derived from a typical value by the application of pre-determined factors and that may, in circumstances specified in this Directive, be used in place of an actual value;’;

"

(c)  the following points are added:"

‘(47a) ‘quality roundwood’ means roundwood felled or otherwise harvested and removed, whose characteristics, such as species, dimensions, rectitude, and node density, make it suitable for industrial use, as defined and duly justified by Member States according to the relevant forest conditions. This does not include pre-commercial thinning operations or trees extracted from forests affected by fires, pests, diseases or damage due to abiotic factors;

   (47b) ‘innovative renewable energy technology’ means a renewable energy generation technology that improves in at least one way comparable state-of-the-art renewable energy technologies or makes exploitable a largely untapped renewable energy resource and involves a clear degree of risk, in technological, market or financial terms, which is higher than the risk generally associated with comparable non-innovative technologies or activities;
   (47c) ‘bidding zone’ means a bidding zone as defined in Article 2, point (65) of Regulation (EU) 2019/943 of the European Parliament and of the Council(21);
   (47d) ‘smart metering system’ means a smart metering system as defined in Article 2, point (23) of Directive (EU) 2019/944 of the European Parliament and of the Council(22);
   (47e) ‘recharging point’ means a recharging point as defined in ▌ Article 2, point (33) of Directive (EU) No 2019/944;
   (47f) ‘market participant’ means a market participant as defined in ▌ Article 2, point (25) of Regulation (EU) 2019/943;
   (47g) ‘electricity market’ means an electricity market as defined in Article 2, point (9) of Directive 2019/944;
   (47h) ‘domestic battery’ means a stand-alone rechargeable battery of rated capacity greater than 2 kwh, which is suitable for installation and use in a domestic environment;
   (47i) ‘electric vehicle battery’ means an electric vehicle battery as defined in Article 2, point (12) of [the proposed Regulation concerning batteries and waste batteries, repealing Directive 2006/66/EC and amending Regulation (EU) No 2019/1020(23)];
   (47j) ‘industrial battery’ means an industrial battery as defined in Article 2. point (11) of [the proposed Regulation concerning batteries and waste batteries, repealing Directive 2006/66/EC and amending Regulation (EU) No 2019/1020];
   (47k) ‘state of health’ means state of health as defined in ▌Article 2, point (25) of [the proposal for a Regulation concerning batteries and waste batteries, repealing Directive 2006/66/EC and amending Regulation (EU) No 2019/1020 (24)];
   (47l) ‘state of charge’ means state of charge as defined in Article 2, point (24) of [the proposal for a Regulation concerning batteries and waste batteries, repealing Directive 2006/66/EC and amending Regulation (EU) 2019/1020];
   (47m) ‘power set point’ means the information held in a battery’s management system prescribing the electric power settings at which the battery operates during a recharging or a discharging operation, so that its state of health and operational use are optimised;
   (47n) ‘smart charging’ means a recharging operation in which the intensity of electricity delivered to the battery is adjusted in real-time, based on information received through electronic communication and which can be realised at normal charging speeds as well as during fast charging through a response to dynamic price signals or an optimisation of power flow;
   (47o) ‘regulatory authority’ means a regulatory authority defined in Article 2, point (2) of Regulation (EU) 2019/943;
   (47p) ‘bidirectional charging’ means a smart charging operation where the direction of the flow may be reversed, allowing electricity to flow from the battery to the recharging point it is connected to;
   (47q) ‘normal power recharging point’ means a normal power recharging point ▌ as defined in Article 2, point (31) of [the proposal for a Regulation concerning the deployment of alternative fuel infrastructure, repealing Directive 2014/94/EU];
   (47r) ‘community battery’ means a stand-alone rechargeable battery with a rated capacity greater than 50 kWh, which is suitable for installation and use in a residential, commercial or industrial environment and which is owned by jointly acting renewable self-consumers or a renewable energy community;
   (47s) ‘renewables energy purchase agreement’ means a contract under which a natural or legal person agrees to purchase renewable energy directly from a producer, which encompasses, but it is not limited to, renewables power purchase agreements, renewables hydrogen purchase agreements and renewables heating and cooling purchase agreements;
   (47t) ‘renewables heating and cooling purchase agreement’ means a contract under which a natural or legal person agrees to purchase renewable heating and cooling directly from a producer;
   (47u) ‘renewables hydrogen purchase agreement’ means a contract under which a natural or legal person agrees to purchase renewable fuels of non-biological origin directly from a producer;
   (47v) ‘industry’ means companies and products that fall sections B, C, F and J, division (63) of the statistical classification of economic activities (NACE REV.2)(25);
   (47w) ‘non-energy purpose’ means the use of fuels as raw materials in an industrial process, instead of being used to produce energy;
   (47x) ‘renewable fuels’ means biofuels, bioliquids, biomass fuels and renewable fuels of non-biological origin;
   (47y) ‘energy efficiency first’ means energy efficiency first as defined in Article 2, point (18) of Regulation (EU) 2018/1999;
   (47z) ‘offshore renewable hybrid asset’ means a transmission asset serving the dual purpose of connecting offshore renewable energy generation and connecting two or more bidding zones;
   (47aa) ‘renewable based district heating and cooling’ means highly energy efficient district heating and cooling systems operating exclusively by renewable energy sources;
   (47ab) ‘primary woody biomass’ means all roundwood felled or otherwise harvested and removed. It comprises all wood obtained from removals, i.e., the quantities removed from forests, including wood recovered due to natural mortality and from felling and logging. It includes all wood removed with or without bark, including wood removed in its round form, or split, roughly squared or in other form, e.g., branches, roots, stumps and burls (where these are harvested) and wood that is roughly shaped or pointed. This does not include woody biomass obtained from sustainable wildfire prevention measures in high-risk fire prone areas, woody biomass obtained from road safety measures, and woody biomass extracted from forests affected by natural disasters, active pests or diseases to prevent their spread, whilst minimising wood extraction and protecting biodiversity, resulting in more diverse and resilient forests, and shall be based on guidelines from the Commission [Am. 42];
   (47ac) ‘renewable hydrogen’ means hydrogen produced through the electrolysis of water (in an electrolyser, powered by electricity stemming from renewable sources, or through the reforming of biogas or biochemical conversion of biomass, if in compliance with sustainability criteria set out in Article 29 of Directive (EU) 2018/2001 of the European Parliament and of the Council;
   (47ad) ‘plantation forest’ means a planted forest that is intensively managed and meets, at planting and stand maturity, all the following criteria: one or two species, even age class, and regular spacing. It includes short rotation plantations for wood, fibre and energy, and excludes forests planted for protection or ecosystem restoration, as well as forests established through planting or seeding which at stand maturity resemble or will resemble naturally regenerating forests;
   (47ae) ‘planted forest’ means forest predominantly composed of trees established through planting and/or deliberate seeding provided that the planted or seeded trees are expected to constitute more than fifty percent of the growing stock at maturity; it includes coppice from trees that were originally planted or seeded; ▌
   (47af) ‘osmotic energy’ means energy naturally created from the difference in salt concentration between two fluids, commonly fresh and salt water;
   (4ag) 'system efficiency' means an energy system which integrates variable renewables cost-effectively and maximises the value of demand-side flexibility to optimise the transition to climate neutrality, measured in reductions of system investment and operational costs, greenhouse gas emissions and fossil fuel uses in each national energy mix;
   (47ah) ‘renewable hybrid power plant’ means a combination of two or more renewable generation technologies which share the same grid connection, and can also integrate storage capacity;
   (47ai) ‘co-located energy storage project’ means a project encompassing an energy storage facility and a facility producing renewable energy connected behind the same grid access point;
   (47aj) 'solar-electric vehicle' means a highly energy efficient motor vehicle equipped with a powertrain containing only non-peripheral electric machines as energy converter with an electric rechargeable energy storage system, which can be recharged externally, also equipped with vehicle-integrated photovoltaic panels [Am. 29]’;

"

(2)  Article 3 is amended as follows:

(a)  paragraph 1 is replaced by the following:"

‘1. Member States shall collectively ensure that the share of energy from renewable sources in the Union’s gross final consumption of energy in 2030 is at least 45 %.

In order to promote the production and use of renewable energy from innovative renewable energy technologies and to safeguard the Union’s industrial competitiveness, each Member State shall set an indicative target of at least 5 % of new installed renewable energy capacity between … [entry into force of the directive] and 2030 as innovative renewable energy technology.

In order to facilitate further penetration of renewable electricity and to increase the flexibility and balancing services, Member States shall set an indicative target for storage technologies.

To support the cost-effective achievement of the target referred to in the first subparagraph and the achievement of system efficiency, Member States shall set a minimum indicative national target for demand-side flexibility corresponding to a reduction of 5 % of peak electricity demand by 2030. That target shall be achieved through the activation of demand-side flexibility in all end-use sectors, including through buildings renovation and energy efficiency in accordance with Directive (EU) .../... [revised directive (EU) 2018/844] and Directive (EU) .../... [revised directive (EU) 2018/2002].

Member States shall specify their national demand-side flexibility target, including intermediate milestones, in the national objectives set out in their integrated energy and climate plans to increase system flexibility, in accordance with Article 4, point (d), point (3) of Regulation (EU) 2018/1999. When needed, the Commission may take complementary measures to support the Members States to fulfil their target.

Each Member State shall identify in its integrated energy and climate plan, in accordance with Article 4, point (d), point (3), of Regulation (EU) 2018/1999, the measures needed to meet the targets referred to in the second and third subparagraphs of paragraph 1 of this Article.’;

"

(b)  paragraph 3 is replaced by the following:"

‘3. Member States shall take measures to ensure that energy from biomass is produced in a way that minimises undue distortive effects on the biomass raw material market and harmful impacts on biodiversity, the environment and the climate. To that end, they shall take into account the waste hierarchy as set out in Article 4 of Directive 2008/98/EC and the cascading principle referred to in the third subparagraph.

As part of the measures referred to in the first subparagraph:

   (a) Member States shall grant no support for:
   (i) the use of saw logs, veneer logs, stumps and roots to produce energy;
   (ii) the production of renewable energy produced from the incineration of waste if the separate collection and waste hierarchy obligations laid down in Directive 2008/98/EC have not been complied with;
   (iii) practices which are not in line with the implementing act referred to in the third subparagraph.
   (b) From 31 December 2026, and without prejudice to the provisions set out in Article 6 and to the obligations in the first sub-paragraph, Member States shall grant no support to the production of electricity from forest biomass in electricity-only-installations, unless such electricity meets at least one of the following conditions:
   (i) it is produced in a region identified in a territorial just transition plan approved by the ▌Commission, in accordance with Regulation (EU) 2021/… of the European Parliament and the Council establishing the Just Transition Fund due to its reliance on solid fossil fuels, and meets the relevant requirements set in Article 29, point (11);
   (ii) it is produced applying Biomass CO2 Capture and Storage and meets the requirements set in Article 29, point (11), second subparagraph.
   (ii a) it is produced by plants that are already in operation on … [the date of entry into force of this amending Directive], for which modifications in the direction of cogeneration are not possible due to the absence of the infrastructure and demand conditions and meet the requirements set out in Article 29, point (11), provided that Member States notify the Commission of the usage of such exemption and justify it by means of verified and up-to-date scientific and technical information and that the Commission approves the exemption.

No later than one year after [the entry into force of this amending Directive], the Commission shall adopt an implementing act ▌on how to apply the cascading principle for forest biomass, in particular on how to minimise the use of quality roundwood for energy production, with a focus on support schemes and with due regard to the highest economic and environmental added-value and national specificities including wildfire prevention and salvage logging.

By 2026 the Commission shall present a report on the impact of the Member States’ support schemes for biomass, including on biodiversity, climate, environment and possible market distortions, and will assess ▌support schemes to forest biomass.’;

"

(c)  the following paragraph 4a is inserted:"

‘4a. Member States shall establish a framework, which may include support schemes and facilitating the uptake of renewable and co-located energy storage projects as well as renewables energy purchase agreements and renewables heating and cooling purchase agreements, enabling the deployment of renewable energy to a level that is consistent with the Member State’s national contribution referred to in paragraph 2 and at a pace that is consistent with the indicative trajectories referred to in Article 4(a)(2) of Regulation (EU) 2018/1999. In particular, that framework shall tackle remaining barriers, including those related to permitting procedures, the establishment of energy community initiatives and the development of the necessary energy transport networks, to support a high level of renewable energy supply. When designing that framework, Member States shall take into account the additional renewable electricity and storage infrastructures required to meet demand in the transport, industry, building and heating and cooling sectors and for the production of renewable fuels of non-biological origin.’;

In accordance with the energy efficiency first principle, Member States shall ensure the flexible consumption, trade and storage of renewable electricity in these end-use sectors to help its penetration in a cost-effective way.

Member States may include a summary of the policies and measures under the enabling framework and an assessment of their implementation respectively in their integrated national energy and climate plans and progress reports, pursuant to Regulation (EU) 2018/1999.’;

"

(3)  Article 7 is amended as follows:

(-a)  in the first subparagraph of paragraph 1, point (c) is replaced by the following:"

‘(c) final consumption of energy from renewable sources and fuels in the transport sector. ’;

"

(a)  in paragraph 1, the second subparagraph is replaced by the following:"

‘With regard to the first subparagraph, point (a), (b), or (c), gas and electricity from renewable sources shall be considered only once for the purposes of calculating the share of gross final consumption of energy from renewable sources. Energy produced from renewable fuels of non-biological origin shall be accounted in the sector - electricity, heating and cooling or transport - where it is consumed. Where renewable fuels of non-biological origin are consumed in a Member State different from the one where they have been produced, energy generated by the use of renewable fuels of non-biological origin shall be accounted for 80 % of their volume in the country and sector where it is consumed and for 20 % of their volume in the country where it is produced, unless agreed otherwise between Member States concerned. In order to monitor such agreements and to avoid any double counting, the Commission shall be notified of any such agreement, including the exact volumes of the supply and demand, the times of the transfer and the date by which the arrangement will become operational. The Commission shall make available information on the concluded agreements, including their timing, volume, price and any additional conditions.;

"

(aa)  in paragraph 1, the following subparagraph is inserted after the second subparagraph:"

“For the purposes of the targets referred to in Articles 15a, 22a, 23(1), 24(4) and 25(1), renewable fuels of non-biological origin shall be accounted for 100% of their volume in the country where they are consumed.”;

"

(b)  in paragraph 2, the first subparagraph is replaced by the following:"

‘For the purposes of paragraph 1, first subparagraph, point (a), gross final consumption of electricity from renewable sources shall be calculated as the quantity of electricity produced in a Member State from renewable sources, including the production of electricity from renewables self-consumers and renewable energy communities and electricity from renewable fuels of non-biological origin and excluding the production of electricity in pumped storage units from water that has previously been pumped uphill as well as the electricity used to produce renewable fuels of non-biological origin.’;

"

(c)  in paragraph 4, point (a) is replaced by the following:"

‘(a) Final consumption of energy from renewable sources in the transport sector shall be calculated as the sum of all biofuels, biogas and renewable fuels of non-biological origin consumed in the transport sector.’;

"

(4)  Article 9 is amended as follows:

(a)  the following paragraph 1a is inserted:"

‘1a. Each Member State shall enter into cooperation agreements to establish joint projects with one or more other Member States for the production of renewable energy, including offshore renewable hybrid assets, as follows:

   (a) by 31 December 2025, Member States with an annual electricity consumption of 100 TWh or less shall establish at least two joint projects;
   (b) by 2030, Member States with an annual electricity consumption of more than 100 TWh shall establish a third joint project.. ▌;

Such joint projects shall not correspond to the projects of common interest already adopted under Regulation (EU) 2022/8691a. The identification of joint projects shall be based on the needs identified in the high-level strategic integrated offshore network development plans for each sea-basin and the Ten Years Network Development Plan but may go beyond those needs and may involve local and regional authorities and private operators.

Projects financed by national contributions under the Union renewable energy financing mechanism established by Commission Implementing Regulation (EU) 2020/1294(26) shall be taken into account for the purposes of fulfilling the requirements of the first subparagraph for the Member States involved in those projects.

Member States shall work towards a fair distribution of costs and benefits of joint projects. To that end, all the relevant costs and benefits of the joint project shall be taken into account in the relevant cooperation agreement.

Member States shall notify the Commission of the cooperation agreements referred to in the first subparagraph, including the date on which the project is expected to become operational.

________

1a Regulation (EU) 2022/869 of the European Parliament and of the Council of 30 May 2022 on guidelines for trans-European energy infrastructure, amending Regulations (EC) No 715/2009, (EU) 2019/942 and (EU) 2019/943 and Directives 2009/73/EC and (EU) 2019/944, and repealing Regulation (EU) No 347/2013 (OJ L 152, 3.6.2022, p. 45).’;

"

(b)  the following paragraph is inserted:"

‘7a. Member States bordering a sea basin shall cooperate in order to establish jointly, after consulting stakeholders, the amount of offshore renewable energy they plan to produce in that sea basin by 2050, with intermediate steps and trajectories per sea basin in 2030 and 2040 in accordance with Regulation (EU) 2022/869. Each Member State shall indicate the volumes it plans to achieve through governmental tenders, with a focus on technical and economic feasibility for the grid infrastructure.

In their cooperation agreements, the Member States shall collectively ensure that those plans are in line with the fulfilment of the objectives laid down in Commission communication of 19 November 2020 entitled ‘An EU Strategy to harness the potential of offshore renewable energy for a climate neutral future’, while respecting Union environmental law and the protection of biodiversity, the specificities and development in each region, especially the activities that already take place in the affected areas, the possible harm to the environment, the offshore renewable potential of the sea basin and the importance of ensuring associated integrated grid planning. Member States shall notify that amount and the planned grid in their updated integrated national energy and climate plans submitted pursuant to Article 14 of Regulation (EU) 2018/1999. The Commission may take complementary measures to support Member States in their efforts to align with the trajectories per sea basin.

Following the communication of the updated integrated national energy and climate plans, the Commission shall assess any possible gap between the potential amount of offshore renewable energy resources of the Member States and the amount of offshore renewable energy planned for 2030, 2040 and 2050. Where appropriate, the Commission shall take additional measures to reduce that gap.

Member States bordering a sea basin shall jointly define the adequate space for offshore renewable energy projects and allocate that space in their maritime spatial plans while ensuring a strong public participation approach so that the views of all stakeholders and affected coastal communities, as well as the impacts on the activities already taking place in the affected areas, are taken into account.

In order to facilitate permit granting for joint offshore renewable energy projects, Member States shall reduce the complexity and increase the efficiency and transparency of the permit granting process and enhance cooperation among themselves, including, where appropriate, by establishing a single point of contact (‘one-stop shop’) per priority offshore grid corridor.

In order to enhance broad public acceptance, Member States shall ensure the possibility of including renewable energy communities in joint cooperation projects on offshore renewable energy.;

"

(5)  Article 15 is amended as follows:

(-a)  paragraph 1 is amended as follows:

(a)  the first subparagraph is replaced by the following:"

‘Member States shall ensure that any national rules concerning the authorisation, certification and licensing procedures that are applied to plants, including renewable hybrid power plants and associated transmission and distribution networks for the production of electricity, heating or cooling from renewable sources, to the process of transformation of biomass into biofuels, bioliquids, biomass fuels or other energy products, and to renewable fuels of non-biological origin are proportionate and necessary and contribute to the implementation of the energy efficiency first principle.’;

"

(-aa)  the second subparagraph is amended as follows:

(i)  point (a) is replaced by the following:"

‘(a) all administrative procedures are streamlined, including regional and municipal processes, and expedited at the appropriate administrative level and predictable timeframes are established for the procedures referred to in the first subparagraph;’;

"

(ii)  points (c) and (d) are replaced by the following:"

‘(c) all administrative charges paid by consumers, planners, architects, builders and equipment and system installers and suppliers are transparent and cost-related; and

   (d) simplified and less burdensome authorisation procedures, including a simple-notification procedure and single contact points are established for decentralised devices, and for producing and storing energy from renewable sources.’;

"

(a)  paragraph 2 is replaced by the following:"

‘2. Member States shall clearly define any technical specifications which are to be met by renewable energy equipment and systems in order to benefit from support schemes and to be eligible under public procurement. Where regulatory or harmonised standards or European standards exist, including technical reference systems established by the European standardisation organisations, such technical specifications shall be expressed in terms of those standards. Precedence shall be given to regulatory and harmonised standards, the references of which have been published in the Official Journal of the European Union in support of European legislation, including for instance Regulation (EU) 2017/1369 or (EU) 2009/125. In their absence, other harmonised standards and European standards shall be used, in that order. Such technical specifications shall not prescribe where the equipment and systems are to be certified and shall not impede the proper functioning of the internal market’;

"

(aa)  paragraph 3 is replaced by the following:"

‘3. Member States shall ensure that their competent authorities at national, regional and local level include provisions for the integration and deployment of renewable energy, including for renewables self-consumption and renewable energy communities, and the use of unavoidable waste heat and cold when planning, including early spatial planning, designing, building and renovating urban infrastructure, industrial, commercial or residential areas and energy and transport infrastructure, including electricity, district heating and cooling, natural gas and alternative fuel networks. Member States shall, in particular, encourage local and regional administrative bodies to include heating and cooling from renewable sources in the planning of city infrastructure where appropriate, and to consult the network operators to reflect the impact of energy efficiency and demand response programs as well as specific provisions on renewables self- consumption and renewable energy communities, on the infrastructure development plans of the operators.’;

"

(b)  paragraphs 4, 5, 6 and 7 are deleted:

(c)  paragraph 8 is replaced by the following:"

‘8. Member States shall assess the regulatory and administrative barriers to long-term renewables energy purchase agreements, including renewables power purchase agreements, renewables heating and cooling purchase agreements and renewables hydrogen purchase agreements, co-located energy storage projects as well as cross-border ones.

They shall remove ▌barriers at national and cross border level to their development, such as barriers to permitting, for example for energy intensive industries and SMEs, as well as other smaller actors and municipalities, and promote the uptake of, such agreements, including by exploring how to reduce the financial risks associated with them, in particular by using credit guarantees. Member States shall ensure that those agreements are not subject to disproportionate or discriminatory procedures or any charges or fees, and that any associated guarantees of origin can be transferred to the buyer of ▌energy under a renewables energy purchase agreement.

Member States shall describe their policies and measures promoting the uptake of renewables energy purchase agreements in their integrated national energy and climate plans referred to in Articles 3 and 14 of Regulation (EU) 2018/1999 and progress reports submitted pursuant to Article 17 of that Regulation. They shall also provide, in those reports, an indication of the volume of renewable power generation supported by the different types of renewables energy purchase agreements.

Member States shall ensure that applicants are allowed to submit all relevant documents in digital form. If an applicant makes use of the digital application option, the entire permitting process including the administrative internal processes needs to be carried out digitally. Member States shall further ensure the digitalisation of the public hearings and the participation procedures.;

"

(d)  the following paragraph 9 is added:"

‘9. By ... [one year after the entry into force of this amending Directive], the Commission shall revise guidelines to Member States on permitting practices to accelerate and simplify the process for new and repowered projects. Those guidelines shall include recommendations on how to implement and apply the rules on administrative procedures set out in Articles 15 and 17 together with their application to renewable heating, cooling and power and renewable cogeneration and a set of key performance indicators (KPIs) to enable a transparent assessment and monitoring of both progress and effectiveness.

To that end, the Commission shall carry out appropriate consultations, including with relevant stakeholders. Such guidance shall also include information on digital and human resources of permitting authorities, effective single contact points, spatial planning, military and civil aviation constraints, court proceedings and civil resolution and mediation cases as well as adjustment and retrofitting of laws on mining, geological works as well as ensuring adequate technical capacity to perform those tasks.

Member States shall present an assessment of their permitting process and the measures for improvement to be taken in line with the guidelines in the updated integrated national energy and climate plan referred to in Article 14(2) of Regulation (EU) 2018/199 in accordance with the procedure and timeline laid down in that Article.

The Commission shall assess the corrective measures in the plans and scoring of each Member state in the key performance indicators. The assessment shall be made publicly available.

In the case of a lack of progress, the Commission may take additional measures to support Member States in their implementation assisting them in reforming and streamlining their permitting procedures.’;

"

(6)  the following Article is inserted:"

‘Article 15a

Mainstreaming renewable energy in buildings

1.  In order to promote the production and use of renewable energy and waste heat and cold in the building sector, Member States shall set an indicative target for the share of renewables produced on site or nearby including from the grid in final energy consumption in their buildings sector in 2030 that is consistent with an indicative target of at least a 49 % share of energy from renewable sources and unavoidable waste heat and cold in the buildings sector in the Union’s final consumption of energy in 2030. Member States that do not explicitly price carbon in the building sector through a tax or emissions trading scheme or Member States that temporarily opt out of the new European emissions trading scheme for buildings and transport shall set a higher indicative share of renewable energy sources. The national indicative target shall be expressed in terms of share of national final energy consumption and calculated in accordance with the methodology set out in Article 7, which may include in the calculation of the share of final consumption the electricity from renewable sources comprising self-consumption, energy communities, the share of renewable energy in the electricity mix and the unavoidable waste heat and cold. Member States shall include their target in the updated integrated national energy and climate plans submitted pursuant to Article 14 of Regulation (EU) 2018/1999 as well as information on how they plan to achieve it.

Member States may count waste heat and cold towards the target referred to in the first subparagraph, up to a limit of 20 %. If they decide to do so, the target shall increase by half of the waste heat and cold percentage used to an upper limit of 54 %.

2.  Member States shall introduce measures in their building regulations and codes and, where applicable, in their support schemes, to increase the share of electricity and heating and cooling from renewable sources both produced on site or nearby including from the grid in the building stock, including national measures relating to substantial increases in renewables self-consumption, renewable energy communities, local renewable energy sharing and local energy storage, smart and bidirectional charging, other flexibility services such as demand response, and in combination with energy efficiency improvements relating to high-efficiency cogeneration and passive, nearly zero-energy and zero-energy buildings, taking into account innovative technologies.

To achieve the indicative share of renewable energy sources set out in paragraph 1, Member States shall, in their building regulations and codes and, where applicable, in their support schemes or by other means with equivalent effect, require the use of minimum levels of energy from renewable sources both produced on-site or nearby, including from the grid, in new buildings and in those subject to major renovation, in line with the provisions of Directive 2010/31/EU and where that is economically, technically and functionally feasible. Member States shall allow those minimum levels to be fulfilled, among others, through efficient district heating and cooling.

For existing buildings, the first subparagraph shall apply to the armed forces only to the extent that its application does not cause any conflict with the nature and primary aim of the activities of the armed forces and with the exception of material used exclusively for military purposes.

3.  Member States shall ensure that public buildings at national, regional and local level, fulfil an exemplary role as regards the share of renewable energy used, in accordance with the provisions of Article 9 of Directive 2010/31/EU and Article 5 of Directive 2012/27/EU. Member States may, among others, allow that obligation to be fulfilled by providing for the roofs or other compatible surfaces and sub-surfaces of public or mixed private-public buildings to be used by third parties for installations that produce energy from renewable sources.

Member States shall promote cooperation between local authorities and renewable energy communities in the building sector, particularly through the use of public procurement. Such support shall be indicated in Member States' National Building Renovation Plans under Article 3 of Directive … [EPBD].

4.  In order to achieve the indicative share of renewable energy set out in paragraph 1, Member States shall promote the use of renewable heating and cooling systems and equipment including innovative technologies for the given local context, such as smart and renewable-based electrified heating and cooling systems and equipment, complemented, where applicable, with smart management of all decentralised energy resources in buildings, through Building Energy Management Systems capable of interacting with the energy grid. To that end, Member States shall use all appropriate measures, tools and incentives, including, among others, energy labels developed under Regulation (EU) 2017/1369 of the European Parliament and of the Council(27), energy performance certificates pursuant to Directive 2010/31/EU, or other appropriate certificates or standards developed at national or Union level, and shall ensure the provision of adequate information and advice, including through one-stop shops, on renewable, highly energy efficient alternatives as well as on financial instruments and incentives available to promote an increased replacement rate of old heating and cooling systems and an increased switch to solutions based on renewable energy.’;

"

(7)  ▌ Article 18 is amended as follows:

(a)   paragraphs 3 and 4 are replaced by the following:"

‘3. Member States shall ensure that certification schemes or equivalent national qualification schemes are available for installers and designers of all forms of renewable heating and cooling systems in buildings, industry and agriculture, and for installers of other renewable energy technologies, storage and demand-response technologies, including charging stations. Those schemes may take into account existing schemes and structures as appropriate and shall be based on the criteria laid down in Annex IV. Each Member State shall verify the recognition of the certification awarded by other Member States in accordance with those criteria.

By 31 December 2023 and every three years thereafter, Member States shall assess the gap between available and needed trained and qualified installations professionals, and, where appropriate, provide recommendations to remove any gaps. Those assessments and any recommendations shall be made publicly available.

Member States shall establish conditions, including through upskilling and reskilling strategies, to ensure that a sufficient number of trained and qualified installers referred to in paragraph 3 is available ▌to service the growth of renewable heating and cooling required to contribute to the annual increase in the share of renewable energy in the heating and cooling sector as set out in Article 23 and to the targets for renewable energy in buildings set out in Article 15a, in the industry sector set out in Article 22a and in the transport sector set out in Article 25, and to contribute to reaching the overall target set out in Article 3.

To achieve a sufficient number of installers and designers, Member States shall, provided that they are compatible with national qualification and certification schemes, ensure that sufficient training programmes leading to qualification or certification covering renewable heating and cooling technologies, and their latest innovative solutions, are made available. Member States shall put in place measures to promote participation in such programmes, in particular by small and medium-sized enterprises and the self-employed, as well as ensuring gender balance and targeting in particular underrepresented minorities. If compatible with already existing training and qualification schemes, Member States may put in place voluntary agreements with the relevant technology providers and vendors to train sufficient numbers of installers, which may be based on estimates of sales, in the latest innovative solutions and technologies available on the market.

Member States shall describe their policies and measures promoting effective, high quality and inclusive training, re-skilling and upskilling of workers in the field of renewable energies in their integrated national energy and climate plans referred to in Articles 3 and 14 of Regulation (EU) 2018/1999 and progress reports submitted pursuant to Article 17 of that Regulation.

4.  Member States shall make information on the certification schemes or equivalent national qualification schemes referred to in paragraph 3 available to the public. Member States shall also make available to the public, in a transparent and easily accessible manner, a regularly updated list of installers who are qualified or certified in accordance with paragraph 3 ▌.’;

"

(b)  the following paragraph is added:"

‘6a. Any measures taken under this Article shall be without prejudice to measures taken under Directives (EU) .../... [Energy Efficiency Directive] and (EU) .../... [EPBD].’;

"

(8)  Article 19 is amended as follows:

(-a)  paragraph 1 is replaced by the following:"

‘1. For the purposes of demonstrating to final customers the origin of energy from renewable sources in an energy supplier's energy mix and in the energy supplied to consumers under contracts marketed with reference to the consumption of energy from renewable sources, Member States shall ensure that the origin of energy from renewable sources can be guaranteed as such within the meaning of this Directive, in accordance with objective, transparent and non-discriminatory criteria.’;

"

(a)  paragraph 2 is amended as follows:

(i)  the first subparagraph is replaced by the following:"

To that end, Member States shall ensure that a guarantee of origin is issued in response to a request from a producer of energy from renewable sources. Member States shall provide for a uniform system of guarantees of origin to be issued for renewable hydrogen.

Member States may decide, for the purposes of accounting for the market value of the guarantee of origin, not to issue such a guarantee of origin to a producer that receives financial support from a support scheme.

The Commission shall introduce supplemental information for guarantees of origin, while avoiding double counting.

Issuance of guarantees of origin may be made subject to a minimum capacity limit. A guarantee of origin shall be ▌ 1 MWh with the possibility to issue fractions of it. They shall be duly standardized through the European standard CEN-EN16325 and issued upon a request from a producer of energy, provided that this does not lead to double counting. Simplified registration processes and reduced registration fees shall be introduced for small installations of less than 50 kW and for energy communities. Guarantees of origin may be issued for several small installations pooled together.

No more than one guarantee of origin shall be issued in respect of each unit of energy produced and the same unit of energy is taken into account only once.’;

"

(ia)  the second subparagraph is deleted;

(ib)  in the fourth subparagraph, point (c) is replaced by the following:"

‘(c) where the guarantees of origin are not issued directly to the producer but to a supplier or consumer who buys the energy either in a competitive setting or in a long-term renewables power purchase agreement.’;

"

(ii)  the fifth subparagraph is deleted;

(aa)  paragraph 3 is replaced by the following:"

‘3. For the purposes of paragraph 1, guarantees of origin shall be valid for transactions for 12 months after the production of the relevant energy unit. Member States shall ensure that all guarantees of origin that have not been cancelled expire at the latest 18 months after the production of the energy unit. Member States shall include expired guarantees of origin in the calculation of their residual energy mix.’;

"

(ab)  paragraph 4 is replaced by the following:"

‘4. For the purposes of disclosure referred to in paragraphs 8 and 13, Member States shall ensure that energy companies cancel guarantees of origin at the latest six months after the end of the validity of the guarantee of origin. Furthermore, by ... [one year after the entry into force of this amending Directive], Member States shall ensure that the data on their residual mix is published on an annual basis.’;

"

(ac)  the first subparagraph of paragraph 7 is amended as follows:

(i)  point (a) is replaced by the following:"

‘(a) the energy source from which the energy was produced and the start and end dates as close to real time as possible, with the objective to arrive at intervals of no more than one hour of production;’;

"

(ii)  point (c) is replaced by the following:"

‘(c) the identity, location, bidding zone for electricity, type and capacity of the installation where the energy was produced;’;

"

(iii)  the following points are added:"

‘(g) greenhouse gas emissions over the life cycle of the guaranteed energy in accordance with the standard ISO 14067:2018;

   (h) refined time granularity;
   (i) locational matching.’;

"

(b)  ▌paragraph 8 ▌ is replaced by the following:"

‘Where an electricity supplier is required to demonstrate the origin of energy from renewable sources in its energy mix for the purposes of Article 3(9), point (a) of Directive 2009/72/EC, it shall do so by using guarantees of origin except as regards the share of its energy mix corresponding to non-tracked commercial offers, if any, for which the supplier may use the residual mix.

Where a gas supplier is required to demonstrate the origin of energy from renewable sources in its energy mix for the purposes of Annex I, section 5 of Directive (EU) .../... [on common rules for the internal markets in renewable and natural gases and in hydrogen as proposed by COM(2021)0803], it shall do so by using guarantees of origin except as regards the share of its energy mix corresponding to non- tracked commercial offers, if any, for which the supplier may use the residual mix.

Where Member States have arranged to have guarantees of origin for other types of energy, suppliers shall use for disclosure the same type of guarantees of origin as the energy supplied. Furthermore, when the customer consumes gas from a hydrogen or natural gas network, Member States may ensure that the guarantees of origin cancelled correspond to the relevant network characteristics. Likewise, guarantees of origin created pursuant to Article 14(10) of Directive 2012/27/EU may be used to substantiate any requirement to demonstrate the quantity of electricity produced from high-efficiency cogeneration. For the purposes of paragraph 2 of this Article, where electricity is generated from high-efficiency cogeneration using renewable sources, only one guarantee of origin specifying both characteristics may be issued.’;

"

(ba)  paragraph 9 is replaced by the following:"

‘9. Member States shall recognise guarantees of origin issued by other Member States in accordance with this Directive exclusively as evidence of the elements referred to in paragraph 1 and points (a) to (i) of the first subparagraph of paragraph 7. A Member State may refuse to recognise a guarantee of origin only where it has well-founded doubts about its accuracy, reliability or veracity. The Member State shall notify the Commission of such a refusal and its justification.’;

"

(bb)  paragraph 11 is replaced by the following:"

‘11. Member States shall not recognise guarantees of origin issued by a third country except where the Union has concluded an agreement with that third country on mutual recognition of guarantees of origin issued in the Union and compatible guarantees of origin systems established in that third country, and only where there is direct import or export of energy. The Commission shall issue guidelines clarifying the Union requirements for recognizing guarantees of origin issued by a third country, including the underlying governance arrangements associated, to the purpose of streamlining and accelerating the achievement of such agreements with third countries.

By ... [one year after the entry into force of this amending Directive], the Commission shall issue guidance on relevant safeguards for cross-border transfers.’;

"

(bc)  paragraph 13 is replaced by the following:"

‘13. The Commission shall adopt a report by 30 June 2025 assessing options to establish a Union-wide green label with a view to promoting the use of renewable energy coming from new installations. Suppliers shall use the information contained in guarantees of origin to demonstrate compliance with the requirements of such a label.’;

"

(bd)  the folllowing paragraph is added:"

‘13a. The Commission shall monitor the functioning of the guarantees of origin system and assess by 30 June 2025 the balance of supply-demand of guarantees of origin in the market and in the case of imbalances identify relevant factors affecting supply and demand and propose measures rectifying any potential structural imbalances with a view to support markets in focusing on new renewable installations.’;

"

(9)  in Article 20, paragraph 3 is replaced by the following:"

‘3. Subject to their assessment included in the integrated national energy and climate plans in accordance with Annex I to Regulation (EU) 2018/1999 on the necessity to build new or modernize existing infrastructure for district heating and cooling from renewable sources in order to achieve the Union target set in Article 3(1) of this Directive, Member States shall, in accordance with the energy efficiency first principle, where relevant, take the necessary steps with a view to developing efficient district heating and cooling infrastructure to promote heating and cooling from renewable energy sources, ▌ in combination with thermal energy storage, demand response systems and power to heat installations.

3a.  In accordance with relevant electricity market law, Member States shall, where relevant, take the necessary actions to integrate intermittent renewable electricity in the grid while ensuring grid stability and security of supply.’;

"

(10)  the following Article 20a is inserted:"

‘Article 20a

Facilitating system integration of renewable electricity

‘1. Member States shall require transmission system operators, and, if technically available, distribution system operators in their territory to make available information on the share of renewable electricity and the greenhouse gas emissions content of the electricity supplied in each bidding zone, as accurately as possible and as close to real time as possible but in time intervals of no more than one hour, with forecasting where available. Member States shall ensure that distribution system operators have access to the needed data. If they do not have access, according to national legislation, to all information needed, they shall apply existing data reporting system under ENTSO-E, in accordance with the provisions of Directive 2019/944. However, transmission system operators and distribution system operators shall not be liable for forecasting, estimation or calculation errors due to external circumstances. Member States shall incentivise upgrades of smart grids to better monitor grid balance and make available real time information.

If technically available, distribution system operators should also make available anonymized and aggregated data on the demand response potential and the renewable electricity generated by self-consumers and renewable energy communities and injected to the grid.

1 a.  The information and data referred to in paragraph 1 shall be made available digitally in a manner that ensures interoperability based on harmonized data formats and standardized data sets so that it can be used in a non-discriminatory manner by electricity market participants, aggregators, consumers and end-users, and that it can be read by electronic communication devices ▌.

2.  In addition to the requirements in [the proposal for a Regulation concerning batteries and waste batteries, repealing Directive 2006/66/EC and amending Regulation (EU) No 2019/1020], Member States shall adopt measures requiring manufacturers of domestic and industrial batteries to enable real-time access to basic battery management system information, including battery capacity, state of health, state of charge and power set point, to battery owners and users as well as to third parties acting on their behalf with explicit consent and in compliance with the relevant provisions set out in Regulation (EU) 2016/679, such as building energy management companies and electricity market participants, under non-discriminatory terms and free of charge.

By ... [6 months from the entry into force of this amending Directive], Member States shall adopt measures requiring vehicle manufacturers to make available, in real-time, in-vehicle data related to the battery state of health, battery state of charge, battery power setpoint and battery capacity ▌to electric vehicle owners and users, as well as to third parties acting on the owners’ and users’ behalf with explicit consent, such as electricity market participants and electromobility service providers, under non-discriminatory terms and free of charge to the owners or users of the batteries and the entities acting on their behalf, in addition to further requirements in the type approval and market surveillance regulation and in full compliance with the relevant provisions in regulation (EU) 2016/679. In accordance with the Battery Regulation, data shall be shared as ‘read-only’, thus preventing third parties from modifying the parameters of the data.

Member States shall ensure thatmanufacturers of smart heating and cooling systems, thermal energy storage units and other smart devices facilitating consumers to provide demand response to the energy system enable real-time access to data relevant for demand response under non-discriminatory terms and free of charge to users, as well as to third parties acting on the owners’ and users’ behalf through explicit consent and in compliance with the relevant provisions set out in Regulation (EU) 2016/679.

3.  In addition to the requirements in [the proposal for a Regulation concerning the deployment of alternative fuel infrastructure, repealing Directive 2014/94/EU], Member States shall ensure that non–publicly accessible normal power recharging points installed in their territory from [the transposition deadline of this amending Directive] can support smart charging functionalities and interface with smart metering systems, when deployed by Member States and, where appropriate based on assessment by the regulatory authority, bidirectional charging functionalities as laid down in Article 14(4) of Regulation ... [the Alternative Fuel Infrastructure Regulation] and assessed by regulatory authorities regarding its potential contribution.

4.  Member States shall ensure that all means of electricity generation, including renewable electricity production units, are involved in providing system and balancing services. Member States shall also ensure that the national regulatory framework does not discriminate against participation in the electricity markets, including congestion management and the provision of flexibility and balancing services for the electricity networks and the district heating and cooling networks, energy storage and flexibility providers as well as balancing services, of small or mobile systems such as domestic and community batteries and electric vehicles, as well as decentralised energy resources with a capacity under 1MW participating to the system, thermal energy storage units, power-to-gas, heat pumps and other technologies able to provide flexibility, both directly and through aggregation. Member States shall provide a level playing field for smaller market actors, in particular renewable energy communities, so that they are able to participate in the market without facing disproportionate administrative or regulatory burden.’;

4 a.  Member States shall ensure that the national regulatory framework allows final customers to enter into contractual agreements with electricity market participants and electromobility service providers to receive information on the terms of the agreement, including their personal data protection, and its implications for the consumers, including the remuneration for the flexibility.’;

"

(11)  the following Article 22a is inserted:"

‘Article 22a

Mainstreaming renewable energy in industry

1.  Member States shall endeavour to increase the share of renewable sources in the amount of energy sources used for final energy and non-energy purposes in the industry sector by an indicative average minimum annual increase of 1,9 percentage points by 2030. That increase shall be calculated as an average for the three-year periods, i.e. 2024 to 2027 and 2027 to 2030.

Member States shall include the policies and measures planned and taken to achieve such indicative increase in their integrated national energy and climate plans and progress reports submitted pursuant to Articles 3, 14 and 17 of Regulation (EU) 2018/1999. Such measures shall include the renewable-based electrification of industrial processes when considered as a cost-effective option. When adopting measures to increase the share of renewable energy in industry, Member States shall comply with the energy efficiency first principle.

Member States shall establish a regulatory framework which may include support measures for industry in accordance with in Article 3(4a) and promote the uptake of renewable sources and renewable hydrogen consumed by industry, taking effectiveness and international competitiveness fully into account, as necessary pre-conditions for the uptake of renewable energy consumption in industry. In particular, that framework should tackle regulatory, administrative and economic barriers in line with Article 3(4a) and Article 15(8).

Member States shall ensure that the contribution of renewable fuels of non-biological origin used for final energy and non-energy purposes is 50 % of the hydrogen used for final energy and non-energy purposes in industry by 2030. Member States shall ensure that by 2035, the contribution of renewable fuels of non-biological origin used for final energy and non-energy purposes is at least 70 % of the hydrogen used for final energy and non-energy purposes in industry. The Commission shall analyse the availability of fuels of non-biological origin in 2026 and every year thereafter. For the calculation of the percentage, the following rules shall apply [Am. 34]:

   (a) For the calculation of the denominator, the energy content of hydrogen for final energy and non-energy purposes shall be taken into account, excluding hydrogen used as intermediate products for the production of conventional transport fuels and hydrogen produced as a by-product or derived from by-products in industrial installations;
   (b) For the calculation of the numerator, the energy content of the renewable fuels of non-biological origin consumed in the industry sector for final energy and non-energy purposes shall be taken into account, excluding renewable fuels of non-biological origin used as intermediate products for the production of ▌ transport fuels.
   (c) For the calculation of the numerator and the denominator, the values regarding the energy content of fuels set out in Annex III shall be used.

By 31 January 2026, following the establishment of the rules referred to in paragraph 1, the Commission shall assess whether, in view of regulatory, technical and scientific development, it is appropriate and justified to adapt the RFNBOs sub-target of 2030, and, where appropriate, shall amend this article for that purpose, accompanied by an impact assessment.

To promote the use of renewable energy solutions for low and medium-temperature industrial heat, Member States shall endeavour to increase the availability of economically viable and technically feasible renewable alternatives to fossil-fuel based energy use for industrial heat applications with the aim of ending the use of fossil-fuel based for applications requiring maximum heating temperatures up to 200 degrees Celsius by 2027 at the latest.

1a.  By ... [one year after the entry into force of this amending Directive], the Commission shall develop a global hydrogen import strategy to promote a European hydrogen market. This strategy shall complement initiatives to promote domestic hydrogen production within the Union, supporting the implementation of this Directive and the achievement of the targets set out therein, while having due regard to security of supply and the Union’s strategic autonomy in energy. The measures included in the strategy shall aim to promote a level playing-field, based on equivalent rules or standards in third countries in terms of environmental protection, sustainability and mitigating climate change. The strategy shall include indicative milestones and measures for imports. Member States shall take appropriate measures to implement the strategy in their integrated national energy and climate plans and progress reports submitted pursuant to Articles 3, 14 and 17 of Regulation (EU) 2018/1999. Furthermore, the strategy shall also take into account the need to develop access to energy for local people.’;

"

(12)  Article 23 is amended as follows:

(a)  paragraph 1 is replaced by the following:"

‘1. In order to promote the use of renewable energy in the heating and cooling sector, each Member State shall, increase the share of renewable energy in that sector by an indicative 2.3 percentage points as an annual average calculated for the periods 2021 to 2025 and 2026 to 2030, starting from the share of renewable energy in the heating and cooling sector in 2020, expressed in terms of national share of gross final energy consumption and calculated in accordance with the methodology set out in Article 7.

That increase shall be of 2.8 percentage points for Member States where waste heat and cold is used. In that case Member States may count waste heat and cold up to 40 % of the average annual increase.’;

"

(b)  the following paragraph 1a is inserted:"

‘1a. In order to give the Commission a full account of the considerable differences in the level of industrial heat demand across the Union, Member States shall carry out an assessment of their potential of energy from renewable sources and of the use of waste heat and cold in the heating and cooling sector including a cost- benefit analysis covering all the positive externalities, where appropriate, an analysis of areas suitable for their deployment at low ecological risk and of the potential for small-scale household projects. SMEs, industrial symbioses and of commercial buildings and outline any infrastructure requirements with the participation of local and regional authorities. The assessment shall consider the available and economically feasible technologies for industrial and domestic uses in order to set out milestones and measures to ▌increase the use of renewable energy sources in heating and cooling and, where appropriate, the use of waste heat and cold through district heating and cooling and small-scale households and SMEs with a view to establishing a long-term national strategy to reduce greenhouse gas emissions and air pollution originating from heating and cooling. Such strategy shall take into account the different level of heat quality (high, medium, low temperature) specific to various processes and uses. The assessment shall be in accordance with the energy efficiency first principle and part of the integrated national energy and climate plans referred to in Articles 3 and 14 of Regulation (EU) 2018/1999, and shall accompany the comprehensive heating and cooling assessment required by Article 14(1) of Directive 2012/27/EU.’;

"

(c)  in paragraph 2, first subparagraph, point (a) is deleted.

(ca)  in paragraph 2, the following subparagraph is added:"

‘Member States shall in particular provide information to the owners or tenants of buildings and SMEs on cost-effective measures, and financial instruments, to improve the use of renewable energy in the heating and cooling systems. Member States shall provide the information through accessible and transparent advisory tools based in one-stop shops.’;

"

(d)  paragraph 4 is replaced by the following:"

‘4. To achieve the average annual increase referred to in paragraph 1, first subparagraph, Member States shall implement at least three of the following measures::

   (a) physical incorporation of renewable energy or waste heat and cold in the energy sources and fuels supplied for heating and cooling;
   (b) installation of highly efficient renewable heating and cooling systems in buildings, connection of buildings to high efficiency district heating and cooling systems or use of renewable energy or waste heat and cold in industrial heating and cooling processes;
   (c) measures covered by tradable certificates proving compliance with the obligation laid down in paragraph 1, first subparagraph, through support to installation measures under point (b) of this paragraph, carried out by another economic operator such as an independent renewable technology installer or an energy service company providing renewable installation services;
   (d) capacity building for national, regional and local authorities to map local renewable heating and cooling potential and plan, ▌ implement and advise on renewable projects and infrastructures;
   (e) creation of risk mitigation frameworks to reduce the cost of capital for renewable heat and cooling and waste heat and cold projects, inter alia allowing for the bundling of smaller projects as well as linking such projects more holistically with other energy efficiency and building renovation measures;
   (f) promotion of renewables heating and cooling purchase agreements for corporate and collective small consumers;
   (g) planned replacement schemes of fossil heating sources, heating systems not compatible with renewable sources or fossil phase-out schemes with milestones;
   (h) renewable heat planning, encompassing cooling, requirements at local and regional level;
   (i) other policy measures, with an equivalent effect, including fiscal measures, support schemes or other financial incentives contributing to the installation of renewable heating and cooling equipment and the development of energy networks supplying renewable energy for heating and cooling in buildings and industry;
   (j) promotion of the production of biogas and its injection into the gas grid, instead of its use for electricity production;
   (k) measures promoting the integration of thermal energy storage technologies in heating and cooling systems;
   (l) promotion of consumer-owned renewable based district heating and cooling networks, in particular by renewable energy communities, including through regulatory measures, financing arrangements and support.

When adopting and implementing those measures, Member States shall ensure their accessibility to all consumers including those who are tenants, in particular those in low-income or vulnerable households, and shall require a significant share of measures to be implemented as a priority in households living in a condition of energy poverty as defined in Directive ...[the Energy efficiency Directive recast] and in social housing, who would not otherwise possess sufficient up-front capital to benefit.’;

"

(13)  Article 24 is amended as follows:

(a)  paragraph 1 is replaced by the following:"

‘1. Member States shall support the renovation of existing and the development of highly efficient 4th and 5th generation renewable district heating and cooling networks fuelled exclusively by renewable energy sources and unavoidable waste heat or cold, following a positive economic and environmental cost-benefit analysis undertaken in partnership with local authorities involved. Member States shall ensure that information on the energy performance, the greenhouse gas emissions and the share of renewable energy in their district heating and cooling systems is provided to final consumers in an easily accessible manner, such as on bills or on the suppliers' websites and on request. The information on the renewable energy share shall be expressed at least as a percentage of gross final consumption of heating and cooling assigned to the customers of a given district heating and cooling system, including information on how much energy was used to deliver one unit of heating to the customer or end-user .’;

"

(b)  paragraph 4 is replaced by the following:"

‘4. Member States shall endeavour to increase the share of energy from renewable sources, including heat generated from electricity from renewable energy sources, and from waste heat and cold in district heating and cooling by at least 2.3 percentage points as an annual average calculated for the period 2021 to 2025 and for the period 2026 to 2030, starting from the share of energy from renewable sources, including heat generated from electricity from renewable energy sources, and from waste heat and cold in district heating and cooling in 2020, and shall lay down the measures necessary to that end. The share of renewable energy shall be expressed in terms of share of gross final energy consumption in district heating and cooling adjusted to normal average climatic conditions.

Member States with a share of energy from renewable sources and from waste heat and cold in district heating and cooling above 60 % may count any such share as fulfilling the average annual increase referred to in the first subparagraph.

Member States shall lay down the necessary measures to implement the average annual increase referred to in the first subparagraph in their integrated national energy and climate plans pursuant to Annex I to Regulation (EU) 2018/1999.’;

"

(c)  the following paragraph 4a is inserted:"

‘4a. Member States shall ensure that operators of district heating or cooling systems above 25 MWth capacity are encouraged to connect third party suppliers of energy from renewable sources and from waste heat and cold or are encouraged to offer to connect and purchase heat or cold from renewable sources and from waste heat and cold from third-party suppliers based on non-discriminatory criteria to be set by the concerned Member State if such a connection is technically and economically feasible and, where such operators need to do one or more of the following:

   (a) meet demand from new customers;
   (b) replace existing heat or cold generation capacity;
   (c) expand existing heat or cold generation capacity.’;

Member States may decide to count renewable electricity used for district heating and cooling in the annual average increase set out in paragraph 4 of this Article. Renewable electricity counted towards Article 7(1), point (b) shall not be taken into account for the purpose of achieving the goals set out in Article 7(1), point (a).

Where Member States decide to count renewable electricity used in district heating and cooling they shall notify it to the Commission before the introduction of such mechanism. Member States shall include the amount of renewable electricity used in district heating and cooling in their integrated national energy and climate progress reports pursuant to Article 17 of Regulation (EU) 2018/1999.’;

"

(d)  paragraphs 5 and 6 are replaced by the following:"

‘5. Member States may allow an operator of a district heating or cooling system to refuse to connect and to purchase heat or cold from a third-party supplier in any of the following situations:

   (a) the system lacks the necessary capacity due to other supplies of heat or cold from renewable sources or of waste heat and cold;
   (b) the heat or cold from the third-party supplier does not meet the technical parameters necessary to connect and ensure the reliable and safe operation of the district heating and cooling system;
   (c) the operator can demonstrate that providing access would lead to an excessive heat or cold cost increase for final customers compared to the cost of using the main local heat or cold supply with which the renewable source or waste heat and cold would compete;
   (d) the operator’s system meets the definition of efficient district heating and cooling set out in [Article x of the proposed recast of the Energy Efficiency Directive].

Member States shall ensure that, when an operator of a district heating or cooling system refuses to connect a supplier of heating or cooling pursuant to the first subparagraph, information on the reasons for the refusal, as well as the conditions to be met and measures to be taken in the system in order to enable the connection, is provided by that operator to the competent authority. Member States shall ensure that an appropriate process is in place to remedy unjustified refusals.

6.  Member States shall put in place, where needed, a coordination framework between district heating and cooling system operators and the potential sources of waste heat and cold in the industrial and tertiary sectors to facilitate the use of waste heat and cold. That coordination framework shall ensure the application of the energy efficiency first principle and facilitate dialogue as regards the use of waste heat and cold involving at least:

   (a) district heating and cooling system operators;
   (b) industrial and tertiary sector enterprises generating waste heat and cold that can be economically recovered via district heating and cooling systems, such as data centres, industrial plants, large commercial buildings, energy storage facilities, and public transport; ▌
   (c) local authorities responsible for planning and approving energy infrastructures;
   (d) scientific experts working on the latest state of the art highly energy efficient fully renewables based district heating and cooling systems;
   (e) renewable energy communities involved in heating and cooling.’;

"

(e)  paragraphs 8, 9 and 10 are replaced by the following:"

‘8. Member States shall establish a framework under which electricity distribution system operators will assess, at least every four years, in cooperation with the operators of district heating and cooling systems in their respective areas, the potential for district heating and cooling systems to provide balancing and other system services, including demand response and thermal storage of excess electricity from centralised and decentralised renewable sources, and whether the use of the identified potential would be more resource- and cost-efficient than alternative solutions, in accordance with the energy efficiency first principle.

Member States shall ensure that electricity transmission and distribution system operators take due account of the results of the assessment required under the first subparagraph in grid planning, grid investment and infrastructure development in their respective territories.

Member States shall facilitate coordination between operators of district heating and cooling systems and electricity transmission and distribution system operators to ensure that balancing, storage and other flexibility services, such as demand response, provided by district heating and district cooling system operators, can participate in their electricity markets on a non-discriminatory basis.

Member States may extend the assessment and coordination requirements under the first and third subparagraphs to gas transmission and distribution system operators, including hydrogen networks and other energy networks.

9.  Member States shall ensure that the rights of consumers and the rules for operating district heating and cooling systems in accordance with this Article are clearly defined, publicly available and enforced by the competent authority.

10.  A Member State shall not be required to apply paragraph 2 where at least one of the following conditions is met:

   (a) its share of district heating and cooling was less than or equal to 2 % of the gross final energy consumption in heating and cooling on 24 December 2018;
   (b) its share of district heating and cooling is increased above 2 % of the gross final energy consumption in heating and cooling on 24 December 2018 by developing new efficient district heating and cooling based on its integrated national energy and climate plan pursuant to Annex I to Regulation (EU) 2018/1999 and the assessment referred to in Article 23(1a) of this Directive;
   (c) 90 % of the gross final energy consumption in district heating and cooling systems takes place in district heating and cooling systems meeting the definition laid down in [Article x of the proposed recast of the Energy Efficiency Directive].’;

"

(14)  Article 25 is replaced by the following:"

‘Article 25

Greenhouse gas intensity reduction in the transport sector from the use of renewable energy

1.  Each Member State shall set an obligation on fuel suppliers to ensure that:

   (a) the amount of renewable fuels and renewable electricity supplied to the transport sector leads to a greenhouse gas intensity reduction of at least 16 % by 2030, compared to the baseline set out in Article 27(1), point (b), in accordance with a trajectory set by the Member State;
   (b) the share of advanced biofuels and biogas produced from the feedstock listed in Part A of Annex IX in the energy supplied to the transport sector is at least ▌0,5 % in 2025 and at least 2,2 % in 2030, and the share of renewable fuels of non-biological origin is at least 2,6 % in 2028 and at least 5,7 %in 2030;
   (ba) from 2030, fuel suppliers shall deliver at least 1,2 % renewable fuels of non-biological origin and renewable hydrogen, to the hard to abate maritime mode. A Member State which has no maritime ports in its territory may choose not to apply this provision. Any Member State that intends to avail itself of that derogation shall notify the Commission no later than one year after ... [the entry into force of this amending Directive]. Any subsequent change shall also be communicated to the Commission.

If the list of feedstock set out in Part A and of Annex IX is amended in accordance with Article 28(6), the minimum share of advanced biofuels and biogas produced from the feedstock in the energy supplied to the transport sector referred to in point (b) of this paragraph shall be increased accordingly and shall be based on an impact assessment by the Commission.

The Commission shall assess the obligation laid down in paragraph 1 with a view to submitting a legislative proposal by 2025 to increase it where there are further substantial costs reductions in the production of renewable energy, where needed to meet the Union's international commitments for decarbonisation, or where a significant decrease in energy consumption in the Union justifies such an increase.

For the calculation of the reduction referred to in point (a) and the share referred to in point (b), Member States shall take into account renewable fuels of non-biological origin also when they are used as intermediate products for the production of conventional transport fuels. For the calculation of the reduction referred to in point (a), Member States may take into account recycled carbon fuels.

When setting the obligation on fuel suppliers, Member States may exempt fuel suppliers supplying electricity or renewable liquid and gaseous transport fuels of non-biological origin from the requirement to comply with the minimum share of advanced biofuels and biogas produced from the feedstock listed in Part A of Annex IX with respect to those fuels.

2.  Member States shall establish a mechanism allowing fuel suppliers in their territory to exchange credits for supplying renewable energy to the transport sector. Economic operators that supply renewable electricity to light and heavy duty electric vehicles through public recharging stations or renewable energy shall receive credits, irrespectively of whether the economic operators are subject to the obligation set by the Member State on fuel suppliers, and may sell those credits to fuel suppliers, which shall be allowed to use the credits to fulfil the obligation set out in paragraph 1, first subparagraph. Member States may decide to include private recharging stations in the mechanism referred to in the first subparagraph provided it can be demonstrated that renewable electricity supplied to those private recharging stations is provided solely to electric vehicles.’;

"

(15)  Article 26 is amended as follows:

(a)  paragraph 1 is amended as follows:

(i)  the first subparagraph is replaced by the following:"

‘For the calculation of a Member State's gross final consumption of energy from renewable sources referred to in Article 7 and of the greenhouse gas intensity reduction target referred to in Article 25(1), first subparagraph, point (a), the share of biofuels and bioliquids, as well as of biomass fuels consumed in transport, where produced from food and feed crops, shall be no more than one percentage point higher than the share of such fuels in the final consumption of energy in the transport sector in 2020 in that Member State, with a maximum of 7 % of final consumption of energy in the transport sector in that Member State.

At the request of a Member State, the Commission may allow a derogation from the first subparagraph allowing Member States to exclude bioliquids used for electricity production in outermost regions within the meaning of Article 349 TFEU from the calculation of the ceiling of 7% of final consumption of energy in the road and rail transport sector referred to in the first subparagraph, provided that such derogation is justified by local specificities. Member States shall make the request for the derogation to the Commission by ... [date of transposition of this amending Directive] and provide up-to-date scientific and technical justifications for such derogation. The Commission shall decide on the request of the Member State within three months of its receipt.’;

"

(i a)  the second subparagraph is replaced by the following:"

‘Where the share of biofuels and bioliquids referred to in the first subparagraph is below 1 % in a Member State, it may be increased to a maximum of 2 % of the final consumption of energy in the road and rail transport sectors.’;

"

(ii)  the fourth subparagraph is replaced by the following:"

‘Where the share of biofuels and bioliquids, as well as of biomass fuels consumed in transport, produced from food and feed crops in a Member State is limited to a share lower than 7 % or a Member State decides to limit the share further, that Member State may reduce the greenhouse gas intensity reduction target referred to in Article 25(1), first subparagraph, point (a), accordingly, in view of the contribution these fuels would have made in terms of greenhouse gas emissions saving. For that purpose, Member States shall consider those fuels save 50 % greenhouse gas emissions.’;

"

(b)  ▌paragraph 2 is amended as follows:

(i)  in the first and fifth subparagraphs, ‘the minimum share referred to in the first subparagraph of Article 25(1)’ is replaced by ‘the greenhouse gas emission reduction target referred to in Article 25(1), first subparagraph, point (a)’;

(ii)  the second subparagraph is replaced by the following:"

‘By ... [date of entry into force of this amending Directive], that limit shall decrease to 0 %.’

"

(iii)  the following subparagraph is inserted after the fourth subparagraph:"

‘By 30 June 2023, the Commission shall submit to the European Parliament and to the Council an update of the report on the status of worldwide production expansion of the relevant food and feed crops. That update shall include the most recent data from the last two years with regard to deforestation and high indirect land use change risk feedstocks, and shall address other high risk commodities in the category of high indirect land use change risk feedstocks. For the purposes of the delegated acts referred to in the sixth subparagraph, the maximum share of the average annual expansion of the global production area in high carbon stocks shall be 7,9%.’;

"

(16)  Article 27 is amended as follows:

(a)  the title is replaced by the following:"

‘Calculation rules in the transport sector and with regard to renewable fuels of non-biological origin regardless of their end use’;

"

(b)  paragraph 1 is replaced by the following:"

‘1. For the calculation of the greenhouse gas intensity reduction referred to in Article 25(1), first subparagraph, point (a), the following rules shall apply:

   (a) the greenhouse gas emissions savings shall be calculated as follows:
   (i) for biofuel and biogas, by multiplying the amount of these fuels supplied to all transport modes by their emissions savings determined in accordance with Article 31;
   (ii) for renewable fuels of non-biological origin and recycled carbon fuels, by multiplying the amount of these fuels that is supplied to all transport modes by their emissions savings determined in accordance with delegated acts adopted pursuant to Article 29a(3);
   (iii) for renewable electricity, by multiplying the amount of renewable electricity that is supplied to all transport modes by a fossil fuel comparator.

The comparator ECF(e) set out in in Annex V shall be used until 31 December 2029. From 1 January 2030 onwards, the comparator EF(t) set out in in Annex V shall be used.

However, the greenhouse gas emissions savings achieved in 2030 by the use of renewable electricity in transport, calculated in application of the EF(t) comparator, shall constitute an additional contribution of renewable electricity of what was already achieved up until 31 December 2029 with the ECF(e) comparator for the calculation of emission savings from 2030 onwards.

   (b) the baseline referred to in Article 25(1) shall be calculated by multiplying the amount of energy supplied to the transport sector by the fossil fuel comparator EF(t) set out in Annex V;
   (c) for the calculation of the relevant amounts of energy, the following rules shall apply:
   (i) in order to determine the amount of energy supplied to the transport sector, the values regarding the energy content of transport fuels set out in Annex III shall be used;
   (ii) in order to determine the energy content of transport fuels not included in Annex III, the Member States shall use the relevant European standards for the determination of the calorific values of fuels. Where no European standard has been adopted for that purpose, the relevant ISO standards shall be used;
   (iii) the amount of renewable electricity supplied to the transport sector is determined by multiplying the amount of electricity supplied to that sector by the average share of renewable electricity supplied in the territory of the Member State in the two previous years. By way of exception, where electricity is obtained from a direct connection to an installation generating renewable electricity and supplied to the transport sector, that electricity shall be fully counted as renewable;
   (iv) the share of biofuels and biogas produced from the feedstock listed in Part B of Annex IX in the energy content of fuels and electricity supplied to the transport sector shall, except in Cyprus and Malta, be limited to 1,7 %;

If the list of feedstock set out in Part B of Annex IX is amended in accordance with Article 28(6), the cap of such biofuels and biogas shall be increased accordingly and shall be based on an impact assessment by the Commission.

   (d) the greenhouse gas intensity reduction from the use of renewable energy is determined by dividing the greenhouse gas emissions saving from the use of biofuels, biogas and renewable electricity supplied to all transport modes by the baseline.

The Commission is empowered to adopt delegated acts in accordance with Article 35 to supplement this Directive by adapting the energy content of transport fuels, as set out in Annex III, in accordance with scientific and technical progress;’;

"

(c)  the following paragraph 1a is inserted:"

‘1a. For the calculation of the targets referred to in Article 25(1), first subparagraph, point (b), the following rules shall apply:

   (a) for the calculation of the denominator, that is the amount of energy consumed in the transport sector, all fuels and electricity supplied to the transport sector shall be taken into account;
   (b) for the calculation of the numerator, the energy content of advanced biofuels and biogas produced from the feedstock listed in Part A of Annex IX and renewable fuels of non-biological origin supplied to all transport modes in the territory of the Union shall be taken into account;
   (c) the shares of advanced biofuels and biogas produced from the feedstock listed in Part A of Annex IX and of renewable fuels of non-biological origin supplied in the aviation and maritime modes shall be considered to be 1,2 times their energy content.’;

"

(d)  paragraph 2 is deleted;

(e)  paragraph 3 is replaced by the following:"

‘3. Where electricity is used for the production of renewable fuels of non- biological origin, either directly or for the production of intermediate products, the average share of electricity from renewable sources in the country of production, as measured two years before the year in question, shall be used to determine the share of renewable energy.

Electricity obtained from direct connection to one or several installations generating renewable electricity may be fully counted as renewable electricity where it is used for the production of renewable fuels of non- biological origin, provided that the installation demonstrates that the electricity concerned has been supplied without taking electricity from the grid.

Electricity that has been taken from the grid may be counted as fully renewable provided that it is produced exclusively from renewable sources and the renewable properties and other appropriate criteria have been demonstrated, ensuring that the renewable properties of that electricity are claimed only once and only in one end-use sector.

This can be fulfilled by complying with the following requirements:

   (a) to demonstrate the renewable properties, fuel producers should be required to conclude one or more renewable power purchase agreements with installations generating electricity for an amount that is at least equivalent to the amount of electricity that is claimed as fully renewable.
   (b) the balance between the renewable electricity purchased through one or several power purchase agreements and the amount of electricity taken from the grid to produce the fuel shall be achieved on a quarterly basis in order for the production to be fully qualified as renewable fuel of non-biological origin.

From 1 January 2030, the balance between the renewable electricity purchased through one or several power purchase agreements and the amount of electricity taken from the grid to produce the fuel shall be achieved either on a monthly, quarterly or yearly basis in order for the production to be fully qualified as renewable fuel of non-biological origin. The temporal correlation shall depend on an assessment carried out by the Commission. This requirement shall apply to all existing plants, including the ones commissioned before 2030.

With regard to the location of the electrolyser, at least one of the following conditions shall be fulfilled:

   (a) the installation generating renewable electricity under the renewables power purchase agreement is located in the same country as the electrolyser or in a neighbouring country; or
   (b) the installation generating renewable electricity under the renewables power purchase agreement is located in an offshore bidding zone adjacent to the country where the electrolyser is located or in a neighbouring country.

Electricity that has been taken or reinjected from an energy storage facility from the grid may be counted as fully renewable provided that it is produced exclusively from renewable sources and the renewable properties and other appropriate criteria have been demonstrated, ensuring that the renewable properties of that electricity are claimed only once and only in one end-use sector [Am. 13].

Electricity generated by a solar-electric vehicle and used for the movement of the vehicle itself may be counted as fully renewable.’ [Am. 32];

"

(17)  Article 28 is amended as follows:

(a)  paragraphs 2, 3 and 4 are deleted.

(b)  paragraph 5 is replaced by the following:"

‘By 31 December 2024, the Commission shall adopt delegated acts in accordance with Article 35 to supplement this Directive by specifying the methodology to determine the share of biofuel, and biogas for transport, resulting from biomass being processed with fossil fuels in a common process.’;

"

(ba)  in paragraph 6, points (c) and (d) are replaced by the following:"

‘(c) the need to avoid significant distortive effects on markets for (by-)products, wastes or residues, taking into account the future availability of raw materials and the need to avoid market distortion leading to massive imports of raw materials;

   (d) the potential for delivering substantial greenhouse gas emissions savings compared to fossil fuels based on a life- cycle assessment of emissions, taking into account available volumes of feedstock and share of pre-existing competing industrial uses with due regard to national specificities;’;

"

(c)  in paragraph 7, ‘laid down in the fourth subparagraph of Article 25(1)’ is replaced by ‘laid down in Article 25(1), first subparagraph, point (b)’;

(18)  Article 29 is amended as follows:

(a)  paragraph 1 is amended as follows:

(-i)   in the first subparagraph, the introductory wording is replaced by the following:"

‘Energy from biofuels, bioliquids and biomass fuels shall be taken into account for the purposes referred to in points (a), (b) and (c) of this subparagraph only if they fulfil the sustainability and the greenhouse gas emissions saving criteria laid down in paragraphs 2 to 7 and 10 of this Article, and if they take into account the waste hierarchy as set out in Article 4 of Directive 2008/98/EC and the cascading principle referred to in Article 3;’ [Am. 43];

"

(i)  in the first subparagraph, point (a) is replaced by the following:"

‘(a) contributing towards the renewable energy shares of Member States and the targets referred to in Articles 3(1),15a(1), 22a(1), 23(1), 24(4), and 25(1) of this Directive;’;

"

(ia)   the following subparagraph is inserted after the first subparagraph:"

‘Energy from solid biomass fuels shall not be taken into account for the purposes referred to in points (b) and (c) of the first subparagraph if these are derived from primary woody biomass as defined in Article 2 of this Directive. For the purpose of contributing towards the renewables target referred to in Article 3(1), the energy share from solid biomass fuels derived from primary woody biomass as defined in Article 2 of this Directive shall be no more than the share of the overall energy consumption of the average of such fuel in 2017 - 2022 based on the latest available data.' [Am. 44];

"

(ib)   the second subparagraph is replaced by the following:"

‘However, biofuels, bioliquids and biomass fuels produced from waste and residues, other than agricultural, aquaculture, fisheries and forestry residues, are required to fulfil only the greenhouse gas emissions saving criteria laid down in paragraph 10 in order to be taken into account for the purposes referred to in points (a), (b) and (c) of the first subparagraph. In the case of the use of mixed wastes, however, the operators are required to apply mixed waste sorting systems of defined quality aimed at removing fossil materials. This subparagraph shall also apply to waste and residues that are first processed into a product before being further processed into biofuels, bioliquids and biomass fuels.’;

"

(ii)  the fourth subparagraph is replaced by the following:"

‘Biomass fuels shall fulfil the sustainability and greenhouse gas emissions saving criteria laid down in paragraphs 2 to 7 and 10 if used,

   (a) in the case of solid biomass fuels, in installations producing electricity, heating and cooling with a total rated thermal input equal to or exceeding 7,5 MW,
   (b) in the case of gaseous biomass fuels, in installations producing electricity, heating and cooling with a total rated thermal input equal to or exceeding 2 MW,
   (c) in the case of installations producing gaseous biomass fuels with the following average biomethane flow rate:
   (i) above 500 m3 methane equivalent/h measured at standard conditions of temperature and pressure (i.e. 0ºC and 1 bar atmospheric pressure);
   (ii) if biogas is composed of a mixture of methane and non-combustible other gases, for the methane flow rate, the threshold set out in point (i), recalculated proportionally to the volumetric share of methane in the mixture.’;

"

(iii)  the following subparagraph is inserted after the fourth subparagraph:"

‘Member States may apply the sustainability and greenhouse gas emissions saving criteria to installations with lower total rated thermal input or biomethane flow rate.’;

"

(aa)  in paragraph 3, the first subparagraph is replaced by the following:"

‘Biofuels, bioliquids and biomass fuels produced from agricultural biomass taken into account for the purposes referred to in points (a), (b) and (c) of the first subparagraph of paragraph 1 shall not be made from raw material obtained from land with a high biodiversity value, namely land that had one of the following statuses in or after January 2008, whether or not the land continues to have that status:

   (a) primary and old-growth forest and other wooded land, namely forest and other wooded land of native species, where there is no clearly visible indication of human activity and the ecological processes are not significantly disturbed;
   (b) highly biodiverse forest and other wooded land which is species­ rich and not degraded, and has been identified as being highly biodiverse by the relevant competent authority, unless evidence is provided that the production of that raw material did not interfere with those nature protection purposes;
   (c) areas designated:
   (i) by law or by the relevant competent authority for nature protection purposes; or
   (ii) for the protection of rare, threatened or endangered ecosystems or species recognised by international agreements or included in lists drawn up by intergovernmental organisations or the International Union for the Conservation of Nature, subject to their recognition in accordance with the first subparagraph of Article 30(4), unless evidence is provided that the production of that raw material did not interfere with those nature protection purposes;
   (d) highly biodiverse grassland spanning more than one hectare that is:
   (i) natural, namely grassland that would remain grassland in the absence of human intervention and that maintains the natural species composition and ecological characteristics and processes; or
   (ii) non ­natural, namely grassland that would cease to be grassland in the absence of human intervention and that is species­rich and not degraded and has been identified as being highly biodiverse by the relevant competent authority, unless evidence is provided that the harvesting of the raw material is necessary to preserve its status as highly biodiverse grassland.
   (iii) heathland that maintains the natural species composition and ecological characteristics and processes.;

"

(b)  in paragraph 3, the following subparagraph is inserted after the first subparagraph:"

‘This paragraph, with the exception of the first subparagraph, point (c), also applies to biofuels, bioliquids and biomass fuels produced from forest biomass.’;

"

(c)  ▌paragraph 4 is replaced by the following:"

4. Biofuels, bioliquids and biomass fuels produced from agricultural biomass taken into account for the purposes referred to in points (a), (b) and (c) of the first subparagraph of paragraph 1 shall not be made from raw material obtained from land with high­ carbon stock, namely land that had one of the following statuses in January 2008 and no longer has that status:

   (a) wetlands, namely land that is covered with or saturated by water permanently or for a significant part of the year;
   (b) continuously forested areas, namely land spanning more than one hectare with trees higher than five metres and a canopy cover of more than 30 %, or trees able to reach those thresholds in situ;
   (c) land spanning more than one hectare with trees higher than five metres and a canopy cover of between 10 % and 30 %, or trees able to reach those thresholds in situ, unless evidence is provided that the carbon stock of the area before and after conversion is such that, when the methodology laid down in Part C of Annex V is applied, the conditions laid down in paragraph 10 of this Article would be fulfilled;
   (ca) heathland that maintains the natural species composition and ecological characteristics and processes.

This paragraph shall not apply if, at the time the raw material was obtained, the land had the same status as it had in January 2008.

The first subparagraph, with the exception of points (b) and (c), and the second subparagraph also apply to biofuels, bioliquids and biomass fuels produced from forest biomass.’;

"

(d)  paragraph 5 is replaced by the following:"

‘5. Biofuels, bioliquids and biomass fuels produced from agricultural or forest biomass taken into account for the purposes referred to in paragraph 1, first subparagraph, points (a), (b) and (c), shall not be made from raw material obtained from land that was peatland in January 2008, unless evidence is provided that the cultivation and harvesting of that raw material does not involve drainage of previously undrained soil and compliance on national or subnational level, in line with the criteria to minimise the risk of using forest biomass derived from unsustainable production referred to in paragraph 6, can be reported by competent national authority.’;

"

(da)   the following paragraph is inserted: "

‘5a. Biofuels, bioliquids and biomass fuels produced from agricultural biomass taken into account for the purposes referred to in points (a), (b) and (c) of the first subparagraph of paragraph 1 shall not be made from raw material obtained in a country that is not Party to the Paris Agreement’;

"

(e)  in paragraph 6, the first subparagraph is amended as follows:

(i)  the introductory wording is replaced by the following:"

‘Biofuels, bioliquids and biomass fuels produced from forest biomass, taken into account for the purposes referred to in points (b) and (c) of the first subparagraph of paragraph 1 shall not be derived from primary woody biomass, take into account the waste hierarchy as set out in Article 4 of Directive 2008/98/EC and the cascading principle referred to in Article 3, and shall meet the following criteria to minimise the risk of using woody biomass derived from unsustainable production. For the purpose of contributing towards the renewable targets referred to in Article 3(1) the energy share from biofuels, bioliquids and biomass fuels derived from primary woody biomass as defined in Article 2 of this Directive shall be no more than the share of the overall energy consumption of the average of such fuels in 2017 - 2022 based on the latest available data.’ [Am. 45];

"

(ii)   in point (a), point (iii) is replaced by the following:"

‘(iii) that areas designated by international or national law or by the relevant competent authority for nature protection purposes, including in wetlands, grassland, heathland and peatlands, are protected with the aim of preserving biodiversity and to prevent habitat destruction as set out in Directives 2009/147/EC and 92/43/EEC, the environmental status of oceans as set out in Directive 2008/56/EC as well as the ecological status of rivers as set out in Directive 2000/60/EC;’;

"

(iii)  in point (a), point (iv) is replaced by the following:"

(iv) that harvesting is carried out ensuring maintenance of soil quality and biodiversity with the aim of preventing negative impacts, in a way that prevents harvesting of stumps and roots not suitable for material use e.g. through the use of sustainable forest management practices, degradation of primary and old-growth forests or their conversion into plantation forests, and harvesting on vulnerable soils; prevents clear-cuts, unless this leads to favourable and appropriate ecosystem conditions, ensures locally and ecologically appropriate thresholds for deadwood extraction, and ensures requirements to use logging systems that minimise impacts on soil quality, including soil compaction, and on biodiversity features and habitats: ’;

"

(v)   in ▌point (b), point (iv) is replaced by the following:"

‘(iv) that harvesting is carried out ensuring maintenance of soil quality and biodiversity with the aim of preventing negative impacts, in a way that prevents harvesting of stumps and roots not suitable for material use e.g. through the use of sustainable forest management practices, degradation of primary and old-growth forests or their conversion into plantation forests, and harvesting on vulnerable soils; prevents clear-cuts, unless this leads to favourable and appropriate ecosystem conditions, ensures locally and ecologically appropriate thresholds for deadwood extraction, and ensures requirements to use logging systems that minimise impacts on soil quality, including soil compaction, and on biodiversity features and habitats:’;

"

(fa)   the following paragraph is inserted:"

7a. Biofuels, bioliquids and biomass fuels produced from forest biomass shall not exceed the cap defined at national level for the use of forest biomass that is consistent with the Member State’s targets on carbon sink growth as defined in Regulation ... [the revised Regulation 2018/841].;

"

(g)  in paragraph 10, first subparagraph, point (d) is replaced by the following:"

‘(d) at least 70 % for electricity, heating and cooling production from biomass fuels used in installations starting operations from 1 January 2021 until 31 December 2025, and at least 85 % for installations starting operations from 1 January 2026.’ [Am. 46];

"

(ga)  in paragraph 11, the introductory wording is replaced by the following:"

’11. Electricity from biomass fuels shall be taken into account for the purposes referred to in points (b) and (c) of the first subparagraph of paragraph 1 only if the fuels in use do not include primary woody biomass and it meets one or more of the following requirements. For the purpose of contributing towards the renewable targets referred to in Article 3(1) the electricity share from biomass fuels derived from primary woody biomass as defined in Article 2 of this Directive shall be no more than the share of the overall electricity consumption of the average of such fuels in 2017 - 2022 based on the latest available data. [Am. 47];

"

(gb)   paragraph 13 is replaced by the following:"

‘13. For the purposes referred in ▌the first subparagraph of paragraph 1 of this Article, Member States may derogate, for a limited period of time, from the criteria laid down in paragraphs 2 to 7 and 10 and 11 of this Article by adopting different criteria for:

   (a) installations located in an outermost region as referred to in Article 349 TFEU to the extent that such facilities produce electricity or heating or cooling from biomass fuels and bioliquids, and for biofuels especially for the space sector and related astrophysics activities; and
   (b) biomass fuels and bioliquids used in the installations and biofuels especially used in the space sector and related astrophysics activities referred to in point (a) of this subparagraph, irrespective of the place of origin of that biomass, provided that such criteria are objectively justified on the grounds that their aim is to ensure, for that outermost region, access to safe and secured energy and incentivise the transition from fossil fuels to sustainable biomass fuels and bioliquids.

Bioliquids, biofuels and biomass fuels produced from primary woody biomass extracted in a sustainable manner and resulting from land use planning in an outermost region where forests cover at least 90% of the territory of that outermost region shall be taken into account for the purposes referred to in point (a), (b) and (c) of the first subparagraph of Article 29.

In order to ensure energy security in the outermost regions, Member States may continue to grant support to the production of electricity from forest biomass in electricity-only-installations located in outermost regions as referred to in Article 349 TFEU. [Am. 33]

"

(gc)  paragraph 14 is replaced by the following:"

‘14. For the purposes referred to in points (a), (b) and (c) of the first subparagraph of paragraph 1, Member States may establish additional sustainability criteria for biofuels, bioliquids and biomass fuels.’;

"

(19)  the following Article 29a is inserted:"

‘Article 29a

Greenhouse gas emissions saving criteria for renewable fuels of non-biological origin and recycled carbon fuels

1.  Energy from renewable fuels of non-biological origin shall be counted towards Member States’ shares of renewable energy and the targets referred to in Articles 3(1), 15a(1), 22a(1), 23(1), 24(4) and 25(1) only if the greenhouse gas emissions savings from the use of those fuels are at least 70 %.

2.  Energy from recycled carbon fuels may be counted towards the greenhouse gas emissions reduction target referred to in Article 25(1), first subparagraph, point (a), only if the greenhouse gas emissions savings from the use of those fuels are at least 70%.

3.  The Commission is empowered to adopt delegated acts in accordance with Article 35 to supplement this Directive by specifying the methodology for assessing greenhouse gas emissions savings from renewable fuels of non-biological origin and from recycled carbon fuels. The methodology shall ensure that credit for avoided emissions is not given for CO2 the capture of which has already received an emission credit under other provisions of law. The carbon content of the wastes and their release to the atmosphere shall be included in the methodology.

In any event, the methodology for assessing greenhouse gas emissions savings from recycled carbon fuels shall consider, in a life-cycle approach, the embedded carbon.’;

"

(19a)  the following Article 29b is inserted:"

‘Article 29b

Sustainability criteria for hydropower plants

Energy generated by hydropower shall be produced at a plant which in accordance with Directive 2000/60/EC and in particular Articles 4 and 11 of that Directive has implemented all technically feasible and ecologically relevant mitigation measures to reduce adverse impacts on water as well measures to enhance protected habitats and species directly dependent on water.’;

"

(20)  Article 30 is amended as follows:

(a)  in paragraph 1, first subparagraph, the introductory phrase is replaced by the following:"

‘Where renewable fuels and recycled carbon fuels are to be counted towards the targets referred to in Articles 3(1), 15a(1), 22a(1), 23(1), 24(4) and 25(1), Member States shall require economic operators to show via mandatory independent and publicly available audits that the sustainability and greenhouse gas emissions saving criteria laid down in Articles 29(2) to (7) and (10) and 29a(1) and (2) for renewable fuels and recycled-carbon fuels have been fulfilled. For that purpose, they shall require economic operators to use a mass balance system which:’;

"

(b)  in paragraph 3, the first and second subparagraphs are replaced by the following:"

‘Member States shall take measures to ensure that economic operators submit reliable information regarding the compliance with the sustainability and greenhouse gas emissions saving criteria laid down in Articles 29(2) to (7) and (10) and 29a(1) and (2), take into account EU biodiversity targets, and that economic operators make available to the relevant Member State, upon request, and to the public the data used to develop that information. Member States shall accredit independent assurance service providers in accordance with Regulation (EC) No 765/2008 to provide an opinion on the information submitted, and to provide evidence that this has been done. In order to comply with Article 29(3), points (a), (b) and (d), Article 29(4), point (a), Article29(5), Article 29(6), point (a) and Article 29(7), point (a), the first or second party auditing may be used up to the first gathering point of the forest biomass. The auditing shall verify that the systems used by economic operators are accurate, reliable and protected against fraud, including verification ensuring that materials are not intentionally modified or discarded so that the consignment or part thereof could become waste or residue. It shall evaluate the frequency and methodology of sampling and the robustness of the data.

The obligations laid down in this paragraph shall apply regardless of whether renewable fuels and recycled carbon fuels are produced within the Union or are imported. Information about the geographic origin and feedstock type of biofuels, bioliquids and biomass fuels per fuel supplier shall be made available to consumers in an up to date, easily accessible, and user-friendly manner on the websites of operators, suppliers and the relevant competent authorities as well as at refuelling stations and shall be updated on an annual basis.’;

"

(c)  in paragraph 4, the first subparagraph is replaced by the following:"

‘The Commission may decide that voluntary national or international schemes setting standards for the production of renewable fuels and recycled carbon fuels, provide accurate data on greenhouse gas emission savings for the purposes of Articles 29(10) and 29a (1) and (2), demonstrate compliance with Articles 27(3) and 31a(5), or demonstrate that consignments of biofuels, bioliquids and biomass fuels comply with the sustainability criteria laid down in Article 29(2) to (7). When demonstrating that the criteria laid down in Article 29(6) and (7) are met, the operators may provide the required evidence directly at sourcing area level. The Commission may recognise areas for the protection of rare, threatened or endangered ecosystems or species recognised by international agreements or included in lists drawn up by intergovernmental organisations or the International Union for the Conservation of Nature for the purposes of Article 29(3), first subparagraph, point (c)(ii).’;

"

(ca)   in paragraph 4, the second subparagraph is replaced by the following:"

‘The Commission may decide that those schemes contain accurate information on measures taken for soil, water and air protection, for the restoration of degraded land and for the avoidance of excessive water consumption in areas where water is scarce ▌.’;

"

(d)  paragraph 6 is replaced by the following:"

‘6. Member States may set up national schemes where compliance with the sustainability and greenhouse gas emissions saving criteria laid down in Articles 29(2) to (7) and (10) and 29a(1) and (2), in accordance with the methodology developed under Article 29a(3), is verified throughout the entire chain of custody involving competent national authorities. Those schemes may also be used to verify the accuracy and completeness of the information included by economic operators in the Union database, to demonstrate compliance with Article 27(3) and for the certification of biofuels, bioliquids and biomass fuels with low indirect land-use change-risk.

A Member State may notify such a national scheme to the Commission. The Commission shall give priority to the assessment of such a scheme in order to facilitate mutual bilateral and multilateral recognition of those schemes. The Commission may decide, by means of implementing acts, whether such a notified national scheme complies with the conditions laid down in this Directive. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 34(3).

Where the decision is positive, other schemes recognised by the Commission in accordance with this Article shall not refuse mutual recognition with that Member State’s national scheme as regards verification of compliance with the criteria for which it has been recognised by the Commission.

For installations producing electricity heating and cooling with a total rated thermal input between 5 and 20 MW, Member States shall establish simplified national verification schemes to ensure the fulfillment of the sustainability and greenhouse gas emissions criteria set out in paragraphs (2) to (7) and (10) of Article 29.’;

"

(e)  in paragraph 9, the first subparagraph is replaced by the following:"

9. Where an economic operator provides evidence or data obtained in accordance with a scheme that has been the subject of a decision pursuant to paragraph 4 or 6, a Member State shall not require the economic operator to provide further evidence of compliance with the elements covered by the scheme for which the scheme has been recognised by the Commission.’;

"

(f)  paragraph 10 is replaced by the following:"

10. At the request of a Member State, which may be based on the request of an economic operator, the Commission shall, on the basis of all available evidence, examine whether the sustainability and greenhouse gas emissions saving criteria laid down in Article 29(2) to (7) and (10) and Article 29a(1) and (2) in relation to a source of renewable fuels and recycled carbon fuels have been met.

Within six months of receipt of such a request and in accordance with the examination procedure referred to in Article 34(3), the Commission shall, by means of implementing acts, decide whether the Member State concerned may either:

   (a) take into account the renewable fuels and recycled carbon fuels from that source for the purposes referred to in points (a), (b) and (c) of the first subparagraph of Article 29(1); or
   (b) by way of derogation from paragraph 9 of this Article, require suppliers of the source of renewable fuels and recycled carbon fuels to provide further evidence of compliance with those sustainability and greenhouse gas emissions saving criteria and those greenhouse gas emissions savings thresholds.’;

"

(22)  the following Article is inserted:"

‘Article 31a

Union database

1.  By ... [three months after entry into force of this amending Directive], the Commission shall ensure that a Union database is set up to enable the tracing of biomass fuels, liquid and gaseous renewable fuels and recycled carbon fuels (the “Union Database”).

2.  Member States shall require the relevant economic operators to enter in a timely manner accurate information into that database on the transactions made and on the sustainability criteria of the fuels subject to those transactions, including their life-cycle greenhouse gas emissions, starting from their point of production to the moment it is consumed in the Union. The interconnected gas system shall be considered to be a single mass balance system. Information about injection and withdrawal shall be provided in the Union Database for gaseous fuels. Information on whether support has been provided for the production of a specific consignment of fuel, and if so, on the type of support scheme, shall also be included in the database.

Where appropriate to improve traceability of data along the entire supply chain, the Commission is empowered to adopt delegated acts in accordance with Article 35 to further extend the scope of the information to be included in the Union database to cover relevant data from the point of production or collection of the raw material used for the fuel production.

Member States shall require fuel suppliers to enter the information necessary to verify compliance with the requirements laid down in Article 25(1), first subparagraph, into the Union database.

Notwithstanding subparagraphs 1 to 3, for gaseous renewable fuels and for gaseous fuels injected into the European gas system, economic operators should enter information on the transactions made and the sustainability criteria and other relevant information such as GHG emissions of the fuels up to the injection point to the interconnected gas system, where the mass balancing traceability system is complemented by guarantees of origin.

3.  Member States shall have access to the Union database for the purposes of monitoring and data verification.

4.  Where guarantees of origin have been issued for the production of a consignment of renewable gases, Member States shall ensure that those guarantees of origin are cancelled after the consignment of renewable gases is withdrawn from the European interconnected system for gas.

5.  Member States shall ensure that the accuracy and completeness of the information included by economic operators in the database is verified, for instance by using voluntary or national schemes, which may be complemented by a system of guarantees of origin.

5a.  The database shall be made publicly available in an open, transparent and user-friendly manner and kept up-to-date.

The Commission shall publish annual reports for the general public about the information reported in the Union database including the quantities, the geographic origin and feedstock type of renewable and low carbon fuels.’;

"

(22a)  Article 33 is amended as follows:

(a)  in paragraph 3, the first subparagraph is replaced by the following:"

‘3. In 2025, the Commission shall submit, if appropriate, a legislative proposal on the regulatory framework for the promotion of energy from renewable sources for the period after 2030.’;

"

(b)  in paragraph 3, the following subparagraph is added:"

‘When preparing the legislative proposal referred to in the first subparagraph the Commission shall take into account:

   (a) the advice of the European Scientific Advisory Board on Climate Change established under Article 10a of Regulation (EC) No 401/2009;
   (b) the projected indicative Union greenhouse gas budget as set out in Article 4(4) of Regulation (EU) 2021/1119;
   (c) the integrated national energy and climate plans submitted by Member States by 30 June 2024 pursuant to Article 14 (2) of Regulation (EU) 2018/1999;
   (d) the experience gained by the implementation of this Directive, including its sustainability and greenhouse gas emissions saving criteria; and
   (e) technological developments in energy from renewable sources.’;

"

(c)  the following paragraph is added:"

‘4a. By ... [two years after entry into force of this amending Directive], the Commission shall review the implementation of this Directive and publish a report setting out the conclusions of its review. The review shall, in particular, examine the following:

   (a) the external effects of the deployment of renewable energy and its impact on the environment;
   (b) the socio-economic benefits of the implementation of this Directive;
   (c) the status of the implementation of related renewables energy initiatives under the RepowerEU;
   (d) whether the increase in demand for electricity in the transport, industry, building and heating and cooling sectors and RFNBOs is met with equivalent amounts of renewable generation capacities;
   (e) a phase down, by 2030, of the share of fuels derived from primary woody biomass as defined in Article 2 of this Directive, for the purpose of counting towards the renewable targets referred to in Article 3(1), based on an impact assessment by the Commission. This review for a phase down shall be presented at the latest by ... [3 years after the transposition of this amending Directive] [Am. 48].

The Commission and the competent authorities in the Member States shall continuously adapt to best administrative practices administrative procedures and take all other measures to simplify the implementation of this Directive, and reduce compliance costs for involved actors and affected sectors to a minimum.’;

"

(23)  Article 35 is amended as follows:

(a)  paragraph 2 is replaced by the following:"

‘The power to adopt delegated acts referred to in Article 8(3), second subparagraph, Article 29a(3), Article 26(2), fourth subparagraph, Article 26(2) fifth subparagraph, Article 27(1), second subparagraph, Article 27(3), fourth subparagraph, Article 28(5), Article 28(6), second subparagraph, Article 31(5), second subparagraph, and Article 31a(2), second subparagraph, shall be conferred on the Commission for a period of five years from [the entry into force of this amending Directive]. The Commission shall draw up a report in respect of the delegation of power not later than nine months before the end of the five-year period. The delegation of power shall be tacitly extended for periods of an identical duration, unless the European Parliament or the Council opposes such extension not later than three months before the end of each period.’;

"

(b)  paragraph 4 is replaced by the following:"

‘The delegation of power referred to in Article 7(3), fifth subparagraph, Article 8(3), second subparagraph, Article 29a(3), Article 26(2), fourth subparagraph, Article 26(2) fifth subparagraph, Article 27(1), second subparagraph, Article 27(3), fourth subparagraph, Article 28(5), Article 28(6), second subparagraph, Article 31(5), and Article 31a(2), second subparagraph, may be revoked at any time by the European Parliament or by the Council. A decision to revoke shall put an end to the delegation of the power specified in that decision. It shall take effect the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force.’;

"

(c)  paragraph 7 is replaced by the following:"

‘A delegated act adopted pursuant to Article 7(3), fifth subparagraph, Article 8(3), second subparagraph, Article 29a(3), Article 26(2), fourth subparagraph, Article 26(2) fifth subparagraph, Article 27(1), second subparagraph, Article 27(3), fourth subparagraph, Article 28(5), Article 28(6), second subparagraph, Article 31(5), and Article 31a(2), second subparagraph, shall enter into force only if no objection has been expressed either by the European Parliament or the Council within a period of two months of notification of that act to the European Parliament and to the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by two months at the initiative of the European Parliament or of the Council.’;

"

(24)  the Annexes are amended in accordance with the Annexes to this Directive.

Article 2

Amendments to Regulation (EU) 2018/1999

(1)  Article 2 is amended as follows:

(a)  point 11 is replaced by the following:"

‘(11) ‘the Union's 2030 targets for energy and climate’ means the Union-wide binding target of at least 40 % domestic reduction in economy-wide greenhouse gas emissions as compared to 1990 to be achieved by 2030, the Union's binding target for renewable energy in 2030 as referred to in Article 3 of Directive (EU) 2018/2001, the Union-level headline target of at least 32,5 % for improving energy efficiency in 2030, and the 15 % electricity interconnection target for 2030 or any subsequent targets in this regard agreed by the European Council or by the European Parliament and by the Council for 2030.’;

"

(b)  in point 20, point (b) is replaced by the following:"

‘(b) in the context of Commission recommendations based on the assessment pursuant to point (b) of Article 29(1) with regard to energy from renewable sources, a Member State's early implementation of its contribution to the Union's binding target for renewable energy in 2030 as referred to in Article 3 of Directive (EU) 2018/2001 as measured against its national reference points for renewable energy;’;

"

(2)  In Article 4, point (a)(2) is replaced by the following:"

‘(2) with respect to renewable energy:

With a view to achieving the Union's binding target for renewable energy in 2030 as referred to in Article 3 of Directive (EU) 2018/2001, a contribution to that target in terms of the Member State's share of energy from renewable sources in gross final consumption of energy in 2030, with an indicative trajectory for that contribution from 2021 onwards. By 2022, the indicative trajectory shall reach a reference point of at least 18 % of the total increase in the share of energy from renewable sources between that Member State's binding 2020 national target, and its contribution to the 2030 target. By 2025, the indicative trajectory shall reach a reference point of at least 43 % of the total increase in the share of energy from renewable sources between that Member State's binding 2020 national target and its contribution to the 2030 target. By 2027, the indicative trajectory shall reach a reference point of at least 65 % of the total increase in the share of energy from renewable sources between that Member State's binding 2020 national target and its contribution to the 2030 target.

By 2030, the indicative trajectory shall reach at least the Member State's planned contribution. If a Member State expects to surpass its binding 2020 national target, its indicative trajectory may start at the level it is projected to achieve. The Member States' indicative trajectories, taken together, shall add up to the Union reference points in 2022, 2025 and 2027 and to the Union's binding target for renewable energy in 2030 as referred to in Article 3 of Directive (EU) 2018/2001. Separately from its contribution to the Union target and its indicative trajectory for the purposes of this Regulation, a Member State shall be free to indicate higher ambitions for national policy purposes.’;

"

(3)  In Article 5, paragraph 2 is replaced by the following:"

‘2. Member States shall collectively ensure that the sum of their contributions amounts to at least the level of the Union's binding target for renewable energy in 2030 as referred to in Article 3 of Directive (EU) 2018/2001.’;

"

(4)  In Article 29, paragraph 2 is replaced by the following:"

‘2. In the area of renewable energy, as part of its assessment referred to in paragraph 1, the Commission shall assess the progress made in the share of energy from renewable sources in the Union's gross final consumption on the basis of an indicative Union trajectory that starts from 20 % in 2020, reaches reference points of at least 18 % in 2022, 43 % in 2025 and 65 % in 2027 of the total increase in the share of energy from renewable sources between the Union's 2020 renewable energy target and the Union's 2030 renewable energy target, and reaches the Union’s binding target for renewable energy in 2030 as referred to in Article 3 of Directive (EU) 2018/2001.’;

"

Article 3

Amendments to Directive 98/70/EC

Directive 98/70/EC is amended as follows:

(1)  Article 1 is replaced by the following:"

‘Article 1

Scope

This Directive sets, in respect of road vehicles, and non-road mobile machinery (including inland waterway vessels when not at sea), agricultural and forestry tractors, and recreational craft when not at sea, technical specifications on health and environmental grounds for fuels to be used with positive ignition and compression-ignition engines, taking account of the technical requirements of those engines.’;

"

(2)  Article 2 is amended as follows:

(a)  points 1, 2 and 3 are replaced by the following:"

‘1. ‘petrol’ means any volatile mineral oil intended for the operation of internal combustion positive-ignition engines for the propulsion of vehicles and falling within CN codes 2710 12 41, 2710 12 45 and 2710 12 49;

2.  ‘diesel fuels’ means gas oils falling within CN code 2710 19 43(28) as referred to in Regulation (EC) No 715/2007 of the European Parliament and the Council(29) and Regulation (EC) 595/2009 of the European Parliament and of the Council(30) and used for self-propelling vehicles;

3.  ‘gas oils intended for use by non-road mobile machinery (including inland waterway vessels), agricultural and forestry tractors, and recreational craft’ means any petroleum-derived liquid, falling within CN codes 27101943(31), referred to in Directive 2013/53/EU of the European Parliament and of the Council(32), Regulation (EU) 167/2013 of the European Parliament and of the Council(33) and Regulation (EU) 2016/1628 of the European Parliament and of the Council(34) and intended for use in compression ignition engines.’;

"

(b)  points 8 and 9 are replaced by the following:"

‘8. ‘supplier’ means ‘fuel supplier’ as defined in Article 2, first paragraph, point (38) of Directive (EU) 2018/2001of the European Parliament and of the Council(35);

9.  ‘biofuels’ means ‘biofuels’ as defined in Article 2, first paragraph, point (33) of Directive 2018/2001;’;

"

(3)  Article 4 is amended as follows:

(a)  In paragraph 1, the second subparagraph is replaced by the following:"

‘Member States shall require suppliers to ensure the placing on the market of diesel with a fatty acid methyl ester (FAME) content of up to 7%.’

"

(b)  Paragraph 2 is replaced by the following:"

‘2. Member States shall ensure that the maximum permissible sulphur content of gas oils intended for use by non-road mobile machinery (including inland waterway vessels), agricultural and forestry tractors and recreational craft is 10 mg/kg. Member States shall ensure that liquid fuels other than those gas oils may be used in inland waterway vessels and recreational craft only if the sulphur content of those liquid fuels does not exceed the maximum permissible content of those gas oils.’;

"

(4)  Articles 7a to 7e are deleted.

(5)  Article 9 is amended as follows:

(a)  in paragraph 1, points (g), (h), (i) and (k) are deleted;

(b)  paragraph 2 is deleted;

(6)  Annexes I, II, IV and V are amended in accordance with Annex I to this Directive.

Article 4

Transitional provisions

(1)  Member States shall ensure that the data collected and reported to the authority designated by the Member State with respect to the year [OJ: replace by calendar year during which the repeal takes effect] or a part thereof in accordance with Article 7a(1), third subparagraph, and Article 7a(7) of Directive 98/70/EC, which are deleted by Article 3(4) of this Directive, are submitted to the Commission.

(2)  The Commission shall include the data referred to in paragraph 1 of this Article in any report it is obliged to submit under Directive 98/70/EC.

Article 5

Transposition

1.  Member States shall bring into force the laws, regulations and administrative provisions necessary to comply with this Directive by 31 December 2023 at the latest. They shall forthwith communicate to the Commission the text of those provisions.

When Member States adopt those provisions, they shall contain a reference to this Directive or be accompanied by such a reference on the occasion of their official publication. Member States shall determine how such reference is to be made.

2.  Member States shall communicate to the Commission the text of the main provisions of national law which they adopt in the field covered by this Directive.

Article 6

Repeal

Council Directive (EU) 2015/652(36) is repealed with effect from [OJ: replace by calendar year during which the repeal takes effect].

Article 7

Entry into force

By December 2024, the Commission shall present a comprehensive impact assessment on the combined and cumulative effects of the "fit for 55" package, including this Directive.

This Directive shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.

This Directive is addressed to the Member States.

Done at Brussels,

For the European Parliament For the Council

The President The President

ANNEX I

The Annexes to Directive (EU) 2018/2001 are amended as follows:

(1)  in Annex I, the final row in the table is deleted;

(3)  Annex III is replaced by the following:

ENERGY CONTENT OF FUELS

Fuel

Energy content by weight (lower calorific value, MJ/kg)

Energy content by volume (lower calorific value, MJ/l)

FUELS FROM BIOMASS AND/OR BIOMASS PROCESSING OPERATIONS

 

 

Bio-Propane

46

24

Pure vegetable oil (oil produced from oil plants through pressing, extraction or comparable procedures, crude or refined but chemically unmodified)

37

34

Biodiesel - fatty acid methyl ester (methyl-ester produced from oil of biomass origin)

37

33

Biodiesel - fatty acid ethyl ester (ethyl-ester produced from oil of biomass origin)

38

34

Biogas that can be purified to natural gas quality

50

Hydrotreated (thermochemically treated with hydrogen) oil of biomass origin, to be used for replacement of diesel

44

34

Hydrotreated (thermochemically treated with hydrogen) oil of biomass origin, to be used for replacement of petrol

45

30

Hydrotreated (thermochemically treated with hydrogen) oil of biomass origin, to be used for replacement of jet fuel

44

34

Hydrotreated oil (thermochemically treated with hydrogen) of biomass origin, to be used for replacement of liquefied petroleum gas

46

24

Co-processed oil (processed in a refinery simultaneously with fossil fuel) of biomass or pyrolysed biomass origin to be used for replacement of diesel

43

36

Co-processed oil (processed in a refinery simultaneously with fossil fuel) of biomass or pyrolysed biomass origin, to be used to replace petrol

44

32

Co-processed oil (processed in a refinery simultaneously with fossil fuel) of biomass or pyrolysed biomass origin, to be used to replace jet fuel

43

33

Co-processed oil (processed in a refinery simultaneously with fossil fuel) of biomass or pyrolysed biomass origin, to be used to replace liquefied petroleum gas

46

23

RENEWABLE FUELS THAT CAN BE PRODUCED FROM VARIOUS RENEWABLE SOURCES, INCLUDING BIOMASS

 

 

Methanol from renewable sources

20

16

Ethanol from renewable sources

27

21

Propanol from renewable sources

31

25

Butanol from renewable sources

33

27

Fischer-Tropsch diesel (a synthetic hydrocarbon or mixture of synthetic hydrocarbons to be used for replacement of diesel)

44

34

Fischer-Tropsch petrol (a synthetic hydrocarbon or mixture of synthetic hydrocarbons produced from biomass, to be used for replacement of petrol)

44

33

Fischer-Tropsch jet fuel (a synthetic hydrocarbon or mixture of synthetic hydrocarbons produced from biomass, to be used for replacement of jet fuel)

44

33

Fischer-Tropsch liquefied petroleum gas (a synthetic hydrocarbon or mixture of synthetic hydrocarbons, to be used for replacement of liquefied petroleum gas

46

24

DME (dimethylether)

28

19

Hydrogen from renewable sources

120

ETBE (ethyl-tertio-butyl-ether produced on the basis of ethanol)

36 (of which 37 % from renewable sources)

27 (of which 37 % from renewable sources)

MTBE (methyl-tertio-butyl-ether produced on the basis of methanol)

35 (of which 22 % from renewable sources)

26 (of which 22 % from renewable sources)

TAEE (tertiary-amyl-ethyl-ether produced on the basis of ethanol)

38 (of which 29 % from renewable sources)

29 (of which 29 % from renewable sources)

TAME (tertiary-amyl-methyl-ether produced on the basis of methanol)

36 (of which 18 % from renewable sources)

28 (of which 18 % from renewable sources)

THxEE (tertiary-hexyl-ethyl-ether produced on the basis of ethanol)

38 (of which 25 % from renewable sources)

30 (of which 25 % from renewable sources)

THxME (tertiary-hexyl-methyl-ether produced on the basis of methanol)

38 of which 14 % from renewable sources)

30 (of which 14 % from renewable sources)

NON-RENEWABLE FUELS

 

 

Petrol

43

32

Diesel

43

36

Hydrogen from non-renewable sources

120

(4)  Annex IV is amended as follows:

a)  the title is replaced by the following:

TRAINING AND CERTIFICATION OF INSTALLERS AND DESIGNERS OF RENEWABLE INSTALLATIONS’

b)  the introductory sentence and the first point are replaced by the following:

‘The certification schemes and training programmes referred to in Article 18(3) shall be based on the following criteria:

1.  The certification process shall be transparent and clearly defined by the Member States or by the administrative body that they appoint.’;

c)  The following points 1a and 1b are inserted:

‘1a. The certificates issued by certification bodies shall be clearly defined and easy to identify for workers and professionals seeking certification.

1b.  The certification process shall enable installers to put in place high quality installations that operate reliably.’;

d)  Points 2 and 3 are replaced by the following:

‘2. Installers of biomass, heat pump, shallow geothermal, solar ▌thermal energy and storage and demand-response technologies, including charging stations, shall be certified by an accredited training programme or training provider or formal qualification schemes according to national law.’

3.  The accreditation of the training programme or provider shall be effected by Member States or by the administrative body that they appoint. The accrediting body shall ensure that the training, upskilling and reskilling programmes offered by the training provider are inclusive and have continuity and regional or national coverage.

The training provider shall have adequate technical facilities to provide practical training, including sufficient laboratory equipment or corresponding facilities to provide practical training.

The training provider shall offer, in addition to the basic training, shorter refresher and upskilling courses organised in training modules allowing installers and designers to add new competences, widen and diversify their skills across several technologies and their combinations. The training provider shall ensure adaptation of training to new renewable technologies in the context of buildings, industry and agriculture. Training providers shall recognise acquired relevant skills.

The training programmes and modules shall be designed to enable life-long learning in renewable installations and be compatible with vocational training for first time job seekers and adults seeking reskilling or new employment.

The training programmes shall be designed in order to facilitate acquiring qualification in different technologies and solutions and avoid limited specialisation in a specific brand or technology. The training provider may be the manufacturer of the equipment or system, institutes or associations.’;

da)  Point 5 is replaced by the following:

‘5. The training course shall end with an examination leading to a certificate or qualification. The examination shall include a practical assessment of successfully installing biomass boilers or stoves, heat pumps, shallow geothermal installations, solar thermal installations or storage and demand-response technologies, including charging stations.’;

e)  In point 6(c) the following points (iv) and (v) are added :

‘(iv) an understanding of feasibility and design studies;

(v)  an understanding of drilling, in the case of geothermal heat pumps.’;

(5)  In Annex V, part C is amended as follows:

a)  points 5 and 6 are replaced by the following:

‘5. Emissions from the extraction or cultivation of raw materials, eec, shall, include emissions from the extraction or cultivation process itself; from the collection, drying and storage of raw materials; from waste and leakages; and from the production of chemicals or products used in extraction or cultivation. Capture of CO2 in the cultivation of raw materials shall be excluded. If available, the disaggregated default values for soil N2O emissions set out in Part D shall be applied in the calculation. It is allowed to calculate averages based on local farming practices based on data of a group of farms, as an alternative to using actual values.’;

6.  For the purposes of the calculation referred to in point 1(a), greenhouse gas emissions savings from improved agriculture management, esca, such as shifting to reduced or zero-tillage, improved crop/rotation, the use of cover crops, including crop residue management, and the use of organic soil improver (e.g. compost, manure fermentation digestate), shall be taken into account only if they do not risk to negatively affect biodiversity. Further, solid and verifiable evidence shall be provided that the soil carbon has increased or that it is reasonable to expect to have increased over the period in which the raw materials concerned were cultivated while taking into account the emissions where such practices lead to increased fertiliser and herbicide use(37).’;

b)  point 15 is deleted:

c)  point 18 is replaced by the following:

‘18. For the purposes of the calculation referred to in point 17, the emissions to be divided shall be eec + el + esca + those fractions of ep, etd, eccs, and eccr that take place up to and including the process step at which a co-product is produced. If any allocation to co-products has taken place at an earlier process step in the life-cycle, the fraction of those emissions assigned in the last such process step to the intermediate fuel product shall be used for those purposes instead of the total of those emissions. In the case of biogas and biomethane, all co-products that do not fall under the scope of point 7 shall be taken into account for the purposes of that calculation. No emissions shall be allocated to wastes and residues. Co-products that have a negative energy content shall be considered to have an energy content of zero for the purposes of the calculation. Wastes and residues including all wastes and residues included in Annex IX shall be considered to have zero life-cycle greenhouse gas emissions up to the process of collection of those materials irrespectively of whether they are processed to interim products before being transformed into the final product. ▌In the case of biomass fuels produced in refineries, other than the combination of processing plants with boilers or cogeneration units providing heat and/or electricity to the processing plant, the unit of analysis for the purposes of the calculation referred to in point 17 shall be the refinery’;

(6)  In Annex VI, part B is amended as follows:

a)  points 5 and 6 are replaced by the following:

‘5. Emissions from the extraction or cultivation of raw materials, eec, shall, include emissions from the extraction or cultivation process itself; from the collection, drying and storage of raw materials; from waste and leakages; and from the production of chemicals or products used in extraction or cultivation. Capture of CO2 in the cultivation of raw materials shall be excluded. If available, the disaggregated default values for soil N2O emissions set out in Part D shall be applied in the calculation. It is allowed to calculate averages based on local farming practises based on data of a group of farms, as an alternative to using actual values.’

6.  For the purposes of the calculation referred to in point 1(a), greenhouse gas emissions savings from improved agriculture management, esca, such as shifting to reduced or zero-tillage, improved crop/rotation, the use of cover crops, including crop residue management, and the use of organic soil improver (e.g. compost, manure fermentation digestate), shall be taken into account only if they do not risk to negatively affect biodiversity. Further, solid and verifiable evidence shall be provided that the soil carbon has increased or that it is reasonable to expect to have increased over the period in which the raw materials concerned were cultivated while taking into account the emissions where such practices lead to increased fertiliser and herbicide use(38).’;

b)  point 15 is deleted:

c)  point 18 is replaced by the following:

‘18. For the purposes of the calculations referred to in point 17, the emissions to be divided shall be eec + el + esca + those fractions of ep, etd, eccs and eccr that take place up to and including the process step at which a co-product is produced. If any allocation to co-products has taken place at an earlier process step in the life-cycle, the fraction of those emissions assigned in the last such process step to the intermediate fuel product shall be used for those purposes instead of the total of those emissions.

In the case of biogas and biomethane, all co-products that do not fall under the scope of point 7 shall be taken into account for the purposes of that calculation. No emissions shall be allocated to wastes and residues. Co-products that have a negative energy content shall be considered to have an energy content of zero for the purposes of the calculation.

Wastes and residues including all wastes and residues included in Annex IX shall be considered to have zero life-cycle greenhouse gas emissions up to the process of collection of those materials irrespectively of whether they are processed to interim products before being transformed into the final product. ▌

In the case of biomass fuels produced in refineries, other than the combination of processing plants with boilers or cogeneration units providing heat and/or electricity to the processing plant, the unit of analysis for the purposes of the calculation referred to in point 17 shall be the refinery’

(6a)   In Annex VI, the following part Ba is inserted:

‘Ba.

Biomass fuel feedstocks for use in stationary installations outside the transport sector, including the following points: 

1.  Biomass fraction of residues and waste in the primary food processing industry:

(a)  beet pulp (only self-use internal to sector)

(b)  herbs & leaves from beet washing

(c)  cereal husks and fruit shells

(d)  biomass fraction of industrial waste not fit for use in the food and feed chain

(e)  the fibrous fraction of sugar beet after extraction of the diffusion juice, leaves and tails and other liquors obtained after sugar extraction

2.  Biomass fraction of sludge from waste water treatment in the primary food processing industry;’;

(7)  in Annex VII, in the definition of ‘Qusable’, the reference to Article 7(4) is replaced by a reference to Article 7(3).

(8)  Annex IX is amended as follows:

(a)  in Part A, the introductory phrase is replaced by the following:

‘Feedstocks for the production of biogas for transport and advanced biofuels:’

(b)  In Part B, the introductory phrase is replaced by the following:

‘Feedstocks for the production of biofuels and biogas for transport, the contribution of which towards the greenhouse gas emissions reduction target established in Article 25(1), first subparagraph, point (a), shall be limited:’;

ANNEX II

Annexes I, II, IV and V to Directive 98/70/EC are amended as follows:

(1)  Annex I is amended as follows:

(a)  the text of footnote 1 is replaced by the following:

‘(1) Test methods shall be those specified in EN 228:2012+A1:2017. Member States may adopt the analytical method specified in replacement EN 228:2012+A1:2017 standard if it can be shown to give at least the same accuracy and at least the same level of precision as the analytical method it replaces.’ ;

(b)  the text of footnote 2 is replaced by the following:

‘(2) the values quoted in the specification are ‘true values’. In the establishment of their limit values, the terms of EN ISO 4259-1:2017/A1:2021 ‘Petroleum and related products — Precision of measurement methods and results – Part 1: Determination of precision data in relation to methods of test’ have been applied and in fixing a minimum value, a minimum difference of 2R above zero has been taken into account (R = reproducibility). The results of individual measurements shall be interpreted on the basis of the criteria described in EN ISO 4259-2:2017/A1:2019.’;

(c)  the text of footnote 6 is replaced by the following:

‘(6) Other mono-alcohols and ethers with a final boiling point no higher than that stated in EN 228:2012 +A1:2017.’

(2)  Annex II is amended as follows:

(a)  in the last line of the table, ‘FAME content – EN 14078, the entry in the last column ‘Limits’ ‘Maximum’, ‘7,0’ is replaced by ’10.0’;

(b)  the text of footnote 1 is replaced by the following:

‘(1) Test methods shall be those specified in EN 590:2013+A1:2017. Member States may adopt the analytical method specified in replacement EN 590:2013+A1:2017 standard if it can be shown to give at least the same accuracy and at least the same level of precision as the analytical method it replaces.’;

(c)  the text of footnote 2 is replaced by the following:

‘(2) The values quoted in the specification are ‘true values’. In the establishment of their limit values, the terms of EN ISO 4259-1:2017/A1:2021 ‘Petroleum and related products — Precision or measurement methods and results – Part 1: Determination of precision data in relation to methods of test’ have been applied and in fixing a minimum value, a minimum difference of 2R above zero has been taken into account (R = reproducibility). The results of individual measurements shall be interpreted on the basis of the criteria described in EN ISO 4259-2:2017/A1:2019.’;

(3)  Annexes IV and V are deleted.

(1) The matter was referred back for interinstitutional negotiations to the committee responsible, pursuant to Rule 59(4), fourth subparagraph (A9-0208/2022).
(2)* Amendments: new or amended text is highlighted in bold italics; deletions are indicated by the symbol ▌.
(3) OJ C , , p. .
(4) OJ C , , p. .
(5) Communication from the Commission COM(2019) 640 final of 11.12.2019, The European Green Deal.
(6) https://ec.europa.eu/eurostat/web/products-eurostat-news/-/ddn-20220119-1
(7) Commission Recommendation (EU) 2020/1563 of 14 October 2020 on energy poverty.
(8) Directive (EU) 2018/2001 of the European Parliament and of the Council of 11 December 2018 on the promotion of the use of energy from renewable sources, OJ L 328, 21.12.2018, p. 82–209
(9) Point 3 of the Communication from the Commission COM(2020) 562 final of 17.9.2020, Stepping up Europe’s 2030 climate ambition Investing in a climate-neutral future for the benefit of our people
(10) The cascading principle aims to achieve resource efficiency of biomass use through prioritising biomass material use to energy use wherever possible, increasing thus the amount of biomass available within the system. In line with the cascading principle, woody biomass should be used according to its highest economic and environmental added value in the following order of priorities: 1) wood-based products, 2) extending their service life, 3) re-use, 4) recycling, 5) bio-energy and 6) disposal.
(11) Directive 2008/98/EC of the European Parliament and of the Council of 19 November 2008 on waste and repealing certain Directives (OJ L 312, 22.11.2008, p. 3).
(12) https://publications.jrc.ec.europa.eu/repository/handle/JRC122719
(13) Commission Implementing Regulation (EU) 2020/1294 of 15 September 2020 on the Union renewable energy financing mechanism (OJ L 303, 17.9.2020, p. 1).
(14) European Commission, Joint Research Centre (2020), Arnulf Jäger-Waldau: "The Untapped Area Potential for Photovoltaic Power in the European Union".
(15) Directive 2014/94/EU of the European Parliament and of the Council of 22 October 2014 on the deployment of alternative fuels infrastructure (OJ L 307, 28.10.2014, p. 1)
(16) Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data, and repealing Directive 95/46/EC (General Data Protection Regulation (OJ L 119, 4.5.2016, p. 1.).
(17) Directive 98/70/EC of the European Parliament and of the Council of 13 October 1998 relating to the quality of petrol and diesel fuels and amending Council Directive 93/12/EEC (OJ L 350, 28.12.1998, p. 58).
(18) OJ C 369, 17.12.2011, p. 14.
(19) Judgment of the Court of Justice of 8 July 2019, Commission v Belgium, C-543/17, ECLI: EU: C:2019:573.
(20) International Renewable Energy Agency (Irena)- report on global landscape of renewable energy finance 2020, page 9.
(21) Regulation (EU) 2019/943 of the European Parliament and of the Council of 5 June 2019 on the internal market for electricity (OJ L 158, 14.6.2019, p. 54).
(22) Directive Regulation (EU) 2019/944 of the European Parliament and of the Council of 5 June 2019 on common rules for the internal market for electricity and amending Directive 2012/27/EU (OJ L 158, 14.6.2019, p. 125).
(23) COM(2020) 798 final
(24) the proposal for a Commission Regulation ‘concerning batteries and waste batteries, repealing Directive 2006/66/EC and amending Regulation (EU) 2019/1020 (xxxx).
(25) Regulation (EC) No 1893/2006 of the European Parliament and of the Council of 20 December 2006 establishing the statistical classification of economic activities NACE Revision 2 and amending Council Regulation (EEC) No 3037/90 as well as certain EC Regulations on specific statistical domains (OJ L 393, 30.12.2006, p. 1).’;
(26) Commission Implementing Regulation (EU) 2020/1294 of 15 September 2020 on the Union renewable energy financing mechanism (OJ L 303, 17.9.2020, p. 1).
(27) Regulation (EU) 2017/1369 of the European Parliament and of the Council of 4 July 2017 setting a framework for energy labelling and repealing Directive 2010/30/EU (OJ L 198, 28.7.2017, p. 1).
(28) The numbering of these CN codes as specified in the Common Customs Tariff, Council Regulation (EEC) No 2658/87 of 23 July 1987 on the tariff and statistical nomenclature and on the Common Customs Tariff (OJ L 256 7.9.1987, p. 1).
(29) Regulation (EC) No 715/2007 of the European Parliament and of the Council of 20 June 2007 on type approval of motor vehicles with respect to emissions from light passenger and commercial vehicles (Euro 5 and Euro 6) and on access to vehicle repair and maintenance information (OJ L 171, 29.6.2007, p. 1).
(30) Regulation (EC) No 595/2009 of the European Parliament and of the Council of 18 June 2009 on type-approval of motor vehicles and engines with respect to emissions from heavy duty vehicles (Euro VI) and on access to vehicle repair and maintenance information and amending Regulation (EC) No 715/2007 and Directive 2007/46/EC and repealing Directives 80/1269/EEC, 2005/55/EC and 2005/78/EC (OJ L 188, 18.7.2009, p. 1);
(31) The numbering of these CN codes as specified in the Common Customs Tariff, Council Regulation (EEC) No 2658/87 of 23 July 1987 on the tariff and statistical nomenclature and on the Common Customs Tariff (OJ L 256 7.9.1987, p. 1).
(32) Directive 2013/53/EU of the European Parliament and of the Council of 20 November 2013 on recreational craft and personal watercraft and repealing Directive 94/25/EC (OJ L 354, 28.12.2013, p.90).
(33) Regulation (EU) No 167/2013 of the European Parliament and of the Council of 5.02.2013 on the approval and market surveillance of agricultural and forestry vehicles, (OJ L 060 of 2.3.2013, p. 1).
(34) Regulation (EU) 2016/1628 of the European Parliament and of the Council of 14 September 2016 on requirements relating to gaseous and particulate pollutant emission limits and type-approval for internal combustion engines for non-road mobile machinery, amending Regulations (EU) No 1024/2012 and (EU) No 167/2013, and amending and repealing Directive 97/68/EC,( OJ L 354 of 28.12.2013, p.53).
(35) Directive (EU) 2018/2001 of the European Parliament and of the Council on the promotion of the use of energy from renewable sources, (OJ L 328 of 21.12.2018, p. 82.)
(36) Council Directive (EU) 2015/652 of 20 April 2015 laying down calculation methods and reporting requirements pursuant to Directive 98/70/EC of the European Parliament and of the Council relating to the quality of petrol and diesel fuels, OJ L 107, 25.4.2015, p. 26–67
(37) Measurements of soil carbon can constitute such evidence, e.g. by a first measurement in advance of the cultivation and subsequent ones at regular intervals several years apart. In such a case, before the second measurement is available, increase in soil carbon would be estimated on the basis of representative experiments or soil models. From the second measurement onwards, the measurements would constitute the basis for determining the existence of an increase in soil carbon and its magnitude.
(38) Measurements of soil carbon can constitute such evidence, e.g. by a first measurement in advance of the cultivation and subsequent ones at regular intervals several years apart. In such a case, before the second measurement is available, increase in soil carbon would be estimated on the basis of representative experiments or soil models. From the second measurement onwards, the measurements would constitute the basis for determining the existence of an increase in soil carbon and its magnitude.


Renewed partnership with the Southern Neighbourhood – a new agenda for the Mediterranean
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European Parliament recommendation of 14 September 2022 to the Commission and the Commission Vice-President / High Representative of the Union for Foreign Affairs and Security Policy on the renewed partnership with the Southern Neighbourhood – a new agenda for the Mediterranean (2022/2007(INI))
P9_TA(2022)0318A9-0220/2022

The European Parliament,

–  having regard to the joint communication from the Commission and the High Representative of the Union for Foreign Affairs and Security Policy of 9 February 2021 entitled ‘Renewed Partnership with the Southern Neighbourhood – a new Agenda for the Mediterranean’ (JOIN(2021)0002),

–  having regard to the Barcelona Declaration adopted at the Euro-Mediterranean Conference of 27-28 November 1995, establishing a Euro-Mediterranean Partnership and accompanied by a detailed work programme,

–  having regard to Article 8 of the Treaty on European Union,

–  having regard to UN Resolution 70/1 entitled ‘Transforming our World – the 2030 Agenda for Sustainable Development’(2030 Agenda), adopted at the UN Sustainable Development Summit in New York on 25 September 2015 and establishing the Sustainable Development Goals (SDGs),

–  having regard to SDG 14: ‘Conserve and sustainably use the oceans, seas and marine resources for sustainable development’,

–  having regard to the Paris Agreement, adopted by means of Decision 1/CP.21 at the 21st Conference of the Parties (COP21) to the UN Framework Convention on Climate Change (UNFCCC), and to the 11th Conference of the Parties (COP11),

–  having regard to the 26th Conference of the Parties (COP26) to the UNFCCC, held in Glasgow, UK, from 31 October to 13 November 2021,

–  having regard to the Commission communication of 11 December 2019 on the European Green Deal (COM(2019)0640),

–  having regard to the Convention on the Elimination of All Forms of Discrimination Against Women (CEDAW),

–  having regard to the Council of Europe Convention on Preventing and Combating Violence against Women and Domestic Violence (Istanbul Convention),

–  having regard to the eight fundamental conventions of the International Labor Organisation (ILO), namely: Freedom of Association and Protection of the Right to Organise Convention, 1948; Right to Organise and Collective Bargaining Convention, 1949; Forced Labour Convention, 1930 (and its 2014 Protocol); Abolition of Forced Labour Convention, 1957; Minimum Age Convention, 1973; Worst Forms of Child Labour Convention, 1999; Equal Remuneration Convention, 1951; Discrimination (Employment and Occupation) Convention, 1958,

–  having regard to the Convention for the Protection of the Marine Environment and the Coastal Region of the Mediterranean (Barcelona Convention) and the related EU protocols and decisions,

–  having regard to the Ministerial Declaration of the Mediterranean coastal states, (MedFish4Ever Declaration), adopted in Valletta, Malta, on 30 March 2017,

–  having regard to the joint staff working document of 9 February 2021 entitled ‘Renewed Partnership with the Southern Neighbourhood Economic and Investment Plan for the Southern Neighbours’ (SWD(2021)0023),

–  having regard to the Council conclusions of 16 April 2021 entitled ‘A renewed Partnership with the Southern Neighbourhood – A new agenda for the Mediterranean’,

–  having regard to the European Council conclusions of 10 and 11 December 2020,

–  having regard to the statement of the members of the European Council of 26 February 2021,

–  having regard to the Committee of the Regions opinion entitled ‘Renewed partnership with the Southern Neighbourhood – A new Agenda for the Mediterranean’ adopted at its 145th plenary session of 30 June and 1 July 2021,

–  having regard to its resolution of 27 March 2019 entitled ‘The post-Arab Spring: way forward for the MENA region’(1),

–  having regard to the opinion by the Committee on International Trade in the form of a letter,

–  having regard to Rule 118 of its Rules of Procedure,

–  having regard to the report of the Committee on Foreign Affairs (A9-0220/2022),

A.  whereas in November 1995 the then European Community signed the Barcelona Declaration, with 12 Southern Mediterranean countries promoting the emergence of a common area with the ultimate objective of peace, stability and prosperity;

B.  whereas in 2004, as a result of the EU enlargement which saw the accession of new Member States from the East and South, the EU decided to launch its European Neighbourhood Policy, covering the EU’s eastern and southern dimensions and seeking to advance dialogue and cooperation with its neighbouring countries; whereas the European Neighbourhood Policy was subsequently updated in 2015; whereas the policy was for many years complemented by a dedicated financial instrument for the EU’s external action, providing resources and overall objectives, as well as a mandate for the Commission to propose multiannual and annual programming for EU assistance; whereas the EU’s financial instrument for the European Neighbourhood Policy has now been replaced by the Neighbourhood, Development and International Cooperation Instrument – Global Europe (NDICI);

C.  whereas 2008 marked the beginning of the Union for the Mediterranean (UfM), an intergovernmental organisation created as a continuation of the Barcelona Process and providing an important venue for dialogue and cooperation at political level and at the level of civil society organisations and relevant policy stakeholders; whereas the UfM is complemented by a Parliamentary Assembly (UfM-PA), which provides an essential opportunity for political dialogue and convergence, as well as multilateral cooperation among elected representatives of the EU and its Southern Mediterranean partner countries;

D.  whereas on 9 February 2021, the Commission and the Vice-President of the Commission / High Representative of the Union for Foreign Affairs and Security Policy (VP/HR) endorsed a joint communication for an ambitious and renewed partnership with the Southern Neighbourhood on a new agenda for the Mediterranean and an accompanying joint staff working document establishing an economic and investment plan focusing on, inter alia, five priorities, namely: human development, good governance and the rule of law; resilience, prosperity and the digital transition; peace and security; migration and mobility; and the green transition: climate resilience, energy and the environment; whereas this new agenda for the Mediterranean is a positive step in the right direction towards further economic and policy integration with the countries of the Southern Neighbourhood; whereas the Abraham Accords Declaration reaffirms the Abraham Accords signed in August 2020 and refers to the agreements that followed, seeking to normalise relations between Israel and other Arab states;

E.  whereas the Mediterranean region is an area of vital and complementary strategic importance to the EU; whereas the so-called Barcelona Process launched in 1995 included the objectives of creating a common area of peace, stability and shared prosperity, launching a Euro-Mediterranean free trade area, working to strengthen democracy and respect for human rights, and developing a Euro-Mediterranean partnership for greater understanding and proximity among people; whereas more than 25 years after the Barcelona Declaration, most of the objectives have not been fully achieved; whereas relations between the EU and its Mediterranean partners need to be reinvigorated in order to address common challenges, take advantage of shared opportunities and unlock the potential of our shared region; whereas the Southern Neighbourhood countries are facing common challenges, and yet each has a specific political and economic situation and particular problems that must be acknowledged in EU policies on respective regions;

F.  whereas the new agenda for the Mediterranean is supposed to lay out an overarching policy framework as a way to facilitate the preparation of bilateral political frameworks, which can be joint documents, partnership priorities or equivalents, establishing jointly agreed political and economic reform agendas and related implementing tools; whereas it is essential for Member States’ policies to be coherent with the Southern Neighbourhood policy in order for the EU to achieve its foreign policy objectives in the region;

G.  whereas the EU and its Southern Neighbourhood partners share a common interest in supporting a revitalised and fit-for-purpose multilateral system, with the UN at its core, to address common challenges such as conflict resolution and prevention, peacebuilding, climate change, corruption, organised crime and terrorism, and violence against women;

H.  whereas the EU must invest in its Southern Neighbourhood as a matter of priority; whereas the security, stability, prosperity and climate resilience of the EU’s Southern Neighbourhood will reinforce the security, stability, prosperity and climate resilience of the EU; whereas renewed investment in the Southern Neighbourhood and intensified political and policy dialogue between the EU and Southern Neighbourhood countries will provide a valuable opportunity for close cooperation and policy synergies for the benefit of both the EU and its Member States, on the one hand, and the countries of the Southern Neighbourhood, on the other; whereas the Southern Neighbourhood should not be seen in a vacuum, but in close correlation with the Eastern Neighbourhood and broader European Neighbourhood Policy (ENP) as defined in the 2015 ENP Review, and an overall strategic reflection on how to pursue closer mutually beneficial and balanced relations between the EU and its neighbours; whereas both the EU’s Southern and Eastern Neighbourhoods are strategic for the EU in various fields, such as stability and security, energy security, managing conflicts and the risk of terrorism, combating climate change, trade, the security of supply chains and diversified access to markets, and managing migration, among others, and in that they can promote human rights and democratic reforms and, therefore, ensure a more secure and effective space for economic relations and investments, e.g. shorter supply lines; whereas the EU should pursue a common regulatory space that includes its Southern and Eastern Neighbourhoods, and therefore ensures access for its neighbouring countries to the highest policy, anti-corruption and human rights standards, which are not only multipliers of economic investment and fair and sustainable economic growth, but also crucial for the improved security and political stability of Southern and Eastern Neighbourhood countries and the EU, and for environmental protection;

I.  whereas the COVID-19 crisis and the food security implications of the war in Ukraine have increased the risk of further destabilisation, as its socio-economic consequences are severe for Southern Neighbourhood countries; whereas the EU should recognise the diversity and heterogeneity of the region and adapt its relationship to the individual contexts of each state;

J.  whereas the Southern Neighbourhood policy should provide Southern Neighbourhood countries with an effective policy framework and access to resources and investments, with the aim of fostering real socio-economic integration at large, economic development, employment and a capacity-building process, including in terms of democracy, for the relevant institutions; whereas Southern Neighbourhood policy should contribute in the short and medium term to de-escalating conflicts in the European Neighbourhood and preventing them in the future; whereas women and children are hit particularly hard by the conflicts in Mediterranean countries;

K.  whereas in 2021, 1 924 people died or went missing on the Central and Western Mediterranean migration routes, while an additional 1 153 perished or went missing on the Northwest African maritime route to the Canary Islands, according to the UN High Commissioner for Refugees; whereas 1 776 people died or went missing on the three routes in 2020; whereas 23 000 people have died or gone missing in the Mediterranean since 2014, according to the Missing Migrants Project, the initiative implemented in 2014 by the International Organization for Migration;

L.  whereas the EU has sought a comprehensive approach to migration and asylum, based on the EU values of solidarity and the protection of human rights and the rule of law;

M.  whereas the war in Ukraine has had dramatic consequences in many vulnerable countries on the price, production and supply of and access to cereals, particularly wheat; whereas Southern Neighbourhood partners are structurally dependent on imports of cereals and the war in Ukraine is having a substantial impact on wheat and cooking oil commodity supply chains, with implications for food security; whereas the International Food and Agriculture Resilience Mission (FARM) was launched on 24 March 2022, in conjunction with the EU, the G7 and the African Union, to prevent the disastrous effects on world food security of the war waged by Russia in Ukraine;

N.  whereas the Russian war of aggression against Ukraine is having, and will continue to have, devastating effects for the region in terms of food security; whereas the war in Ukraine has underlined and is the latest illustration of the threat posed by third countries seeking political and economic control of the Mediterranean region and the EU’s neighbourhood, to the detriment of the democratic aspirations and territorial integrity of target countries; whereas the EU’s Southern Neighbourhood has been a playground for major powers, including Russia, China and Iran, among others, which are all seeking to increase their ability and capacity to exercise political and/or economic hegemony in certain Southern Neighbourhood countries, which therefore poses a serious challenge to the EU, its Member States and the Southern Neighbourhood countries in their capacity-building for fighting disinformation and promoting democratic values such as freedom of the press, freedoms of association and assembly and the pluralism of the media, which are all crucial and key components of the rule of law and need to be scaled up; whereas a free, strong and independent civil society is fundamental to the development of any country in the region;

O.  whereas the EU’s efforts to counter third party attempts to destabilise the region are ongoing; whereas the EU must reaffirm its role as a privileged partner and the primary political, economic and democratic anchor for the countries of the Southern Neighbourhood in matters such as human rights, democracy and the rule of law, security, migration, the fight against climate change, and research and development; whereas this fundamental role of the EU is, and should continue to be, reflected in the level of commitment and the policy stance at EU level related to the Southern Neighbourhood;

P.  whereas the fight against organised crime and all forms of terrorism, including Islamist terrorism, remains a priority; whereas the fight against the Islamic State has been ongoing in the region since 2015; whereas some of the root causes of radical movements, including social and political marginalisation, remain unaddressed to this day;

Q.  whereas the war in Ukraine and the resulting need to further diversify and decarbonise the EU’s energy supply have shown the essential role of the Southern Neighbourhood in becoming a crucial partner of the EU in achieving the European Green Deal, but also in securing sufficient gas and oil supplies to the EU in the short term, with mutual benefits for both the EU and the countries of the Southern Neighbourhood; whereas the discovery of significant natural gas reserves and the abundance of renewable energy sources in the countries of the Southern and Eastern Mediterranean, especially the Sahara with its considerable potential for renewable electricity production, provide an opportunity for economic development in the countries concerned and for clean energy cooperation with the EU, including hydrogen from renewable sources of energy; whereas the revenues from natural resources should be fairly distributed and used to benefit local populations; whereas these gas reserves and supplies require partnerships, investments and the sharing of know-how between the countries of the Southern Mediterranean and the EU and its Member States; whereas, in turn, this partnership is already proving to be an opportunity for dialogue and cooperation among all the Southern Mediterranean countries concerned, leading to more stability in the region; whereas the Southern Neighbourhood is therefore not only essential for reasons of regional security and stability, but also as a primary partner for access to reliable energy sources, including renewables; whereas true partnership with mutual benefits, notably for people in the countries of the Southern Neighbourhood, is key to guaranteeing access to renewable, affordable and local energy in an inclusive way;

R.  whereas the effects of climate change are set to provoke the further displacement of populations living in the Middle East and North Africa; whereas Egypt will host the 27th UN Climate Conference, COP27, in November 2022; whereas, according to the UN Environment Programme, the Mediterranean is warming 20 % faster than the world average; whereas spring and summer rainfall is expected to decrease by 30 % by 2080;

S.  whereas the Mediterranean region is home to 510 million people and is the most polluted major sea in the world, with 1,25 million plastic fragments per km2; whereas marine litter is a major factor in the biodiversity crisis and is costing the tourism, fisheries and maritime sectors around EUR 641 million a year; whereas according to the 2019 World Wildlife Fund report, 0,57 million tonnes of plastic enter the Mediterranean every year, a figure which will quadruple by 2050; whereas, according to the UN Food and Agriculture Organization, 75 % of Mediterranean stocks for which validated assessments are available are fished at biologically unsustainable levels;

T.  whereas development, security, stability and democracy in the Southern Neighbourhood are closely correlated with the real socioeconomic integration of women, young people and discriminated groups such as LGBTQI+ persons, fundamental rights for religious, cultural and ethnic minorities, and open spaces for citizens and independent civil society in which to express themselves, act, and share ideas and opinions freely; whereas studies have shown that their capacity to access education, vocational training, employment and adequate longer-term professional development is crucial; whereas women’s civil, political, social and economic rights and their promotion in the Southern Neighbourhood should be a priority on the new agenda for the Mediterranean; whereas women’s integration into the labour market remains significantly lower than in other parts of the world, standing at 19 % on average according to the 2020 UN Women report, which provides a situational analysis of women in the Middle East/North Africa (MENA) region;

1.  Recommends that, in the implementation of the renewed partnership with the Southern Neighbourhood, a new agenda for the Mediterranean, the Commission and the VP/HR:

   (a) secure adequate resources for timely and effective implementation of the new agenda for the Mediterranean based on the objectives and priorities jointly determined with Southern Neighbourhood partner countries, building on valuable synergies through transparent cooperation and the programming of the external action for the region under the NDICI and pursuing close coordination with Member State programming as well as facilitating as much as possible opportunities for blending through partnerships between the European Investment Bank, the European Bank for Reconstruction and Development and other relevant international financial institutions; takes the view that the new agenda for the Mediterranean can introduce a positive conditionality under which active EU support for a closer and effective policy interface with Southern Neighbourhood countries can lead to further partnerships and convergence on other policy priorities for the benefit of both the EU and Southern Neighbourhood countries and their citizens; present annual updates on the implementation of the new agenda for the Mediterranean and ensure EU visibility in all EU financial resources allocated to the region directly or indirectly through partnerships with the UN, other international organisations, and other traditional and non-traditional partners, taking a Team Europe approach, while ensuring financial accountability, based on the existing methodology for performance management and the reporting system for EU programmes, including an incentive-based approach; include a general regime of conditionality for the protection of the Union budget; stress that the civil societies of Southern Neighbourhood countries have strong expectations of the EU and its Member States as important political, economic and cultural anchors for political and economic reforms and for longer-term prosperity; warn that, given the strategic importance and economic potential of the region, the capacity of the EU to be the main partner is not without its challenges and, therefore, adequate visibility for the EU’s commitment to the region at large is essential, both directly and through funds allocated to other organisations such as the UN;
   (b) strengthen EU dialogue and cooperation with Southern Neighbourhood countries in relevant policy areas and promote conflict prevention and peacebuilding, counter-piracy, maritime security, and the countering of terrorism, radicalisation and extremism;
   (c) develop and conclude joint documents or partnership priorities as a matter of priority to replace the previous documents, building on the five key priorities of the agenda of the Mediterranean, in particular those on human development, human security, good governance and the rule of law;
   (d) re-establish the position of the EU Special Representative for the Southern Neighbourhood, who should report to both the VP/HR and the Commissioner for Neighbourhood and Enlargement (NEAR), in order to increase the EU’s unity and action in the region, and promote and defend our common values and interests;
   (e) intensify diplomatic outreach and dialogue with the states of the Southern Neighbourhood, including in the framework of the UN General Assembly, and address, as a matter of priority, the impact of the Russian aggression against Ukraine on Southern Neighbourhood countries in terms of food security, with particular reference to countries most vulnerable because of dependence on food imports, a lack of social security or their economic model; engage with Parliament on ways to ensure food security for countries in the Southern Mediterranean that face difficulties in this regard and draw up a robust, resilient and sustainable policy and assistance response for this purpose without further delay, also building on the Food and Resilience Facility in order to address food security in the region, including to promote sustainable local agricultural systems, and less output-intensive and more climate-relevant agricultural practices; recall that food insecurity in the region is exacerbated by the consequences of the climate emergency, especially droughts and the increase in extreme temperatures; recall the importance of adequate visibility for EU efforts and resources when channelling assistance through other organisations such as the World Food Programme and of continuous monitoring of actions and resources in order to review the progress made;
   (f) recognise the multiple challenges such as climate change, the economic crisis and terrorist attacks facing the region; highlight that the water stress resulting from increased freshwater needs, coupled with strategic control of rivers, can lead to the most serious of conflicts; establish a political strategy to facilitate solutions in the areas with high destabilising potential;
   (g) implement, as a matter of priority, strategies to alleviate poverty, strategies dedicated to programming for broader youth and women’s access to education and higher education together with adequate funding for access to education for the population at large, and strategies to support the establishment and development of efficient higher or vocational education structures in the Southern Neighbourhood countries; work with partner countries so that their school curricula uphold the UNESCO standards of peace, tolerance and non-violence; work to eliminate and deter hate speech that incites discrimination and violence, and support policies and initiatives aimed at protecting minorities and combating manifestations of intolerance, racism, homophobia, xenophobia and forms of religious intolerance; stress that curricula development is critical to fostering tolerant societies; recall that youth migration and professional brain drain are a matter of serious concern for our partners in the region, as well as a serious threat to the longer-term capacity for economic growth and the economic viability of Southern Neighbourhood countries; underline, therefore, the importance of promoting investment and advancing economic growth in the region in parallel with broader access to education, professional training and employment opportunities, so that young people in Southern Neighbourhood countries can have real prospects of access to employment and real socio-economic integration; stress the importance of expanding access to the Erasmus and Erasmus+ programmes for participants from Southern Neighbourhood countries, including those who have fled Ukraine, and increase the funding for such exchanges; prevent these policies from negatively impacting Southern Neighbourhood countries through the phenomenon of brain drain; recall the importance of circular mobility, including South-South exchanges and mobility partnerships, so that professionals from Southern Neighbourhood countries can have concrete opportunities to further enrich and expand their professional training and skills in the EU and return to their country of origin to share and build knowledge;
   (h) pay attention to the existing methodology for performance management and the reporting system for EU programmes, including the incentive-based approach, in the mainstreaming of the socioeconomic integration of women in the region and of gender equality in all EU policy areas wherever possible; target EU support for women, with the objective of improving and ensuring their access to education, training and employment and, more generally, promoting equal professional and socioeconomic opportunities, thus advocating their financial independence and promoting equal rights; incentivise bilateral and trilateral partnerships between Southern Neighbourhood universities and EU universities, including through wider distance-learning opportunities for Southern Neighbourhood students and wider exchange opportunities for academic staff; secure broader access to EU-based online media, including through public digital hubs, and EU cultural content for interested audiences in Southern Neighbourhood countries;
   (i) support the implementation and ratification of international conventions to combat violence against women; work to ensure that all the Member States and the Southern Neighbourhood countries sign, ratify and implement the Istanbul Convention and CEDAW; taking note of the joint communication from the Commission and the High Representative of the Union for Foreign Affairs and Security Policy of 25 November 2020 on the third Gender Action Plan (GAP III) (JOIN(2020)0017) and the EU Action Plan for Women, Peace and Security, encourage all Southern Neighbourhood partners to eradicate, investigate and prevent gender-based violence and discrimination, and ensure the meaningful and equal active participation of women in all spheres of public life and decision-making, and the promotion of women’s rights; advocate the full implementation in all Southern Neighbourhood partner countries of UN Security Council Resolution 1325 (2000) on women, peace and security, which takes stock of the disproportionate impact of conflicts on women and girls and guides work and actions to promote gender equality and strengthen women’s participation, protection and rights throughout the conflict cycle, from conflict prevention to post-conflict reconstruction;
   (j) recognise the importance of orderly migration between the countries of the Southern Neighbourhood and Europe which is managed on the basis of the principles of solidarity, balance and shared responsibility, while also fighting smuggling and human trafficking;
   (k) make sure that the EU, its Member States and its Southern Neighbourhood partners pursue migration policies that fully respect the human rights of migrants and refugees as enshrined in international, regional and national law; step up EU engagement in countries where human rights defenders and civil society and community-based organisations, including those that are protecting the lives of migrants and asylum-seekers, are under threat; recognise and adequately fund the important and indispensable work of humanitarian agencies, making sure that EU funding to this effect has ample visibility;
   (l) guarantee that NDICI funding dedicated to migration in the Southern Neighbourhood is allocated as a matter of priority to programmes aiming to address the root causes of forced displacement, including by enhancing living standards in the region;
   (m) call for the EU and its partners in the Southern Neighbourhood to take a more coordinated, holistic and structured approach to migration, taking into account the importance of addressing the root causes of forced displacement; seek to decrease irregular entry into Member State territory; prioritise the readmission of migrants without the right to remain in the EU in relations with third countries, with due respect for the obligations of non-refoulement and international law; recall that progress is only possible through a combination of local human capital and external development support, that migration should not lead to brain drain and that migration is a challenge that affects stability in Southern Mediterranean countries; stress that ‘refugee’ is not equivalent to ‘economic migrant’ and that the EU should therefore adopt different approaches to the two categories; stress that the EU should facilitate safe routes for asylum-seekers and refugees into the EU; call for continued engagement with Southern Neighbourhood partners to ensure sustainable solutions for refugees; recall that the Southern Mediterranean and its young democratic systems are subject to tensions such as economic underdevelopment, conflict, a lack of opportunities for young people, structural unemployment and, in addition, the challenge of intra-Africa migration and the impact of climate change; take all these factors into account in the EU’s permanent dialogue with local actors;
   (n) urgently step up and pursue partnerships and cooperation with relevant Southern Neighbourhood countries in order to tackle and fight the immediate and long-term adverse impacts of climate change, promote environmental protection and devise solutions to address water scarcity, focusing on resilience-building efforts, and work toward the advancement and acceleration of the green transition, in line with the Paris Agreement, the European Green Deal and the 2030 Agenda, by mainstreaming adequate climate conditionality in all EU assistance to third countries in line with the climate commitments made by the EU; recall that the EU strategy on climate action and climate mitigation will not be as effective without sizeable investment and considerable improvements in the EU’s neighbourhood; support the flagship initiatives on climate preservation in the economic and investment plan for the Southern Neighbourhood; warn of the impact of climate change on the Maghreb region, particularly in Sub-Saharan Africa, and the issue of decreasing access to water in the Maghreb and Mashreq regions; recall that access to water, reforestation, decarbonisation, the circular economy, the adoption of a business model based on renewable energy sources and access to such sources will be essential for the climate neutrality of the Southern Neighbourhood and in protecting it against the effects of climate change; recall, further, that this, in turn, will increase the EU’s capacity to achieve its objectives of climate neutrality; support regional dialogue and cooperation on sustainable water management, technology and access to water, such as water saving, reclaimed water and desalination plans, through renewable energy, and support further investment in renewable energy sources, such as wind, solar and green hydrogen in the region; stress the importance of partnerships with relevant Southern Neighbourhood countries on reforestation and sustainable agricultural practices resulting in reduced water consumption; stress that best practices in the field of agriculture exist not only in the EU, but also in the Southern Neighbourhood, and takes the view, therefore, that the EU could play an important role in promoting and advancing dialogue, cooperation and South-South partnerships on the exchange of such practices;
   (o) actively support common measures to conserve, protect, restore and sustainably use the rich biodiversity of the Mediterranean basin, a unique centre of diversification for species of fauna and flora, ensure sustainable resource management, including water, and strengthen sustainable food systems; help improve the monitoring and control of and effective regional cooperation on the management of marine biological resources;
   (p) prepare an analysis of the positive role that the EU and deeper EU relations with Southern Neighbourhood countries can play in reducing their carbon emissions and the joint efforts they can make to diversify their energy resources and increase their energy supply from renewable and sustainable energy sources; present in due time a strategy for further enhancing the role of the Southern Neighbourhood in advancing the implementation of the European Green Deal in a manner consistent with the commitments of the Paris Agreement; support the countries of the Southern Neighbourhood technically and financially in their efforts to diversify their energy supplies by intensifying the production of renewable energy, with a particular focus on solar and wind energy; highlight that the development of the green energy market has the potential to contribute to the creation of new jobs and therefore increase the employment rate in the countries embracing the energy transition;
   (q) pursue an active EU role in facilitating dialogue and cooperation among all the countries of the Southern and Eastern Mediterranean in the field of energy, promoting, where necessary, the capacity for understanding, dialogue and final settlements on maritime border demarcation in accordance with international law, including the UN Convention on the Law of the Sea (UNCLOS); pursue an active EU role in facilitating dialogue and cooperation in this regard to safeguard the territorial integrity and exclusive economic zone of the countries concerned, promoting respect for international law and negotiated final agreements on maritime border demarcation;
   (r) further promote and urgently take measures to strengthen the interconnection capacity between the EU and countries in the Southern and Eastern Mediterranean that produce natural gas and other types of energy, through relevant EU hubs; consider, in particular, adequate pipeline, harbour and other infrastructure and technology that are green hydrogen-ready to avoid a lock-in effect both in the EU and in Southern Neighbourhood countries, for the benefit of all producer countries and all Member States; reaffirm that the dependencies on oil and natural gas should be reduced in due time through an all-encompassing green transition in line with the European Green Deal, and also support green transitions in the countries in the Southern Neighbourhood; note that the East Mediterranean Gas Forum (EMGF) serves as a platform for positive regional cooperation;
   (s) also promote electrical interconnection within the scope of diversifying the EU’s energy resources and increasing its energy supply from renewable energy sources;
   (t) take into account the potential of the blue economy to promote sustainable growth and economic opportunities on both sides of the Mediterranean, duly integrating it into economic development planning;
   (u) build on the very positive experience of some Member States in supporting start-up companies and further advancing their work through dedicated incubators or accelerators, especially in key sectors such as health, renewable energy, artificial intelligence, new technologies and education; set up and support incubators or accelerators in relevant Southern Neighbourhood countries, support the creation of local start-up companies, and increase their digital and green capacities; concur on the importance of further improving the digital infrastructure of relevant Southern Neighbourhood countries and including these countries in the EU’s digital agenda; point out that this is a prerequisite for economic development, socioeconomic integration and wider access to education; lead in promoting investment and partnerships between EU telecom companies and telecom companies in relevant Southern Neighbourhood countries for providing access to modern digital infrastructure, in particular 5G mobile networks, based on EU technology, and warn that failure to do so will give third countries seeking to build leverage and an economic and political presence in the region a competitive advantage, including in political terms; recall the importance of close policy dialogue and cooperation between the EU and Southern Neighbourhood countries in developing adequate cybersecurity policies that protect the fundamental rights and freedoms of all users in line with EU values, and partnership in international forums on cybersecurity standards, in order to achieve an open, secure and reliable cyberspace; build on the StratCom Task Force South with the aim of further developing a concrete strategy for combating disinformation, as well as countering fake news and propaganda from Russia, China and other regional powers in our Southern Neighbourhood countries, as well as in the EU; express deep concern over the domestic impact, in the EU Member States, of disinformation campaigns aggressively led by Russia and China on social media platforms and in conventional media; urge the governments of Southern neighbours to allow unfettered access to the internet and uphold the freedom of expression of dissenting voices without fear of reprisals; call on the governments of Southern neighbours to respect and protect freedom of expression and information and press freedom both online and offline; finance programmes in support of freedom of expression and privacy, internet access and online ethics;
   (v) secure adequate resources for the timely and effective implementation of the new agenda for the Mediterranean, also as a way to support longer-term investment and partnerships by EU-based companies in the Southern Neighbourhood; point to the fact that, as a consequence of the pandemic and the war in Ukraine, many EU-based companies are either reshoring or nearshoring their supply and production lines; acknowledge that this provides a unique opportunity for both the EU and the Southern Neighbourhood, through the timely and full implementation of the new agenda for the Mediterranean and the economic and investment plan, to secure an environment able to support those EU-based companies that want to nearshore and to promote longer-term investment in the Southern Neighbourhood, thereby establishing closer political links and stronger cooperation with the countries of the Southern Neighbourhood;
   (w) include economic and labour rights in the new agenda, innovate and encourage strategies based on in-depth analysis of what is occurring on the southern border, and focus on decent work, sustainable development and international labour standards; effectively include the trade union movement in national consultations and encourage social dialogue; work towards ending child labour and guaranteeing the right to a salary and compensation and the freedom to unionise, and put an end to situations of slavery and discrimination, looking also at the need to provide adequate protection for refugees in the region; encourage social dialogue and collective bargaining, and promote the inclusion of women and young people in trade union structures and political spaces;
   (x) promote regional, sub-regional and bilateral integration in the Southern Mediterranean, in particular with a view to the removal of any border, transport or trade barriers between the countries of the region and actively promoting closer links and partnerships; establish as a strategic priority the improvement of the trade relationship between the EU and the countries of the Southern Neighbourhood by working towards a Euro-Mediterranean free trade area for goods and services; maintain a focus on the facilitation of investments, services and sustainable development;
   (y) reiterate the EU’s longstanding commitment to the relevant UN resolutions, more specifically the UN Security Council resolution of January 2022, and recall Parliament’s resolution of 17 February 2022 on the implementation of the common foreign and security policy, in the context of the Middle East Peace Process, based on the two-state solution, with a secure State of Israel and an independent, democratic, contiguous, sovereign and viable State of Palestine, living side by side in peace and security on the basis of 1967 lines, with mutually agreed equivalent land swaps and Jerusalem as the capital of both states; recall that Israeli settlements in the occupied Palestinian territories are illegal under international law; call for an end to actions that could undermine the viability of the two-state solution on the ground, and not proceed with settlements and terrorism, as they constitute a violation of international law and do not contribute to lasting and comprehensive peace; warn that in the current geopolitical context the Middle East Peace Process can only advance with strong political commitment and investment by the EU and the US; promote direct negotiations between Israel and the Palestinians;
   (z) continue to support, both politically and financially, the work of relevant UN bodies, such as the UN Relief and Works Agency for Palestine Refugees, with adequate visibility for EU funding and support to this effect and in synergy with the EU’s objectives;
   (aa) recognise the importance of EU financial assistance to the Palestinian National Authority and Palestinian civil society on the ground, particularly in providing support for people in times of severe food crises and energy shortages, and promote the right conditions to alleviate the consequences of the Russian aggression against Ukraine, as underlined by President Ursula von der Leyen during her last visit to Ramallah on 14 June 2022; underline that funding must not be suspended for civil society organisations without evidence of misuse;
   (ab) continue to support cooperation throughout the region; note the Abraham Accords, which have resulted in the mutual recognition of Israel, Bahrain, the United Arab Emirates, Morocco and Sudan, and that they provide an opportunity to strengthen cooperation between those states;
   (ac) encourage regional cooperation and support the normalisation of relations between Israel and the Arab states, and promote the full inclusion of the Palestinian National Authority, in line with EU and US efforts to achieve peace, security and stability in the region and in accordance with the UN framework, the Arab Peace Initiative and the Oslo Accords; use this momentum to advance dialogue and cooperation in the region to support the Middle East Peace process and the two-state solution as well as respect for international law;
   (ad) actively support, within the framework of its Global Gateway strategy and in synergy with the economic and investment plan for the Southern Neighbourhood, initial plans to develop a seamless trade link, via rail and sea interconnectors, between South East Asia and the countries of the Gulf Cooperation Council, Jordan, Israel, Palestine and Greece as entry points for traded goods and energy resources into the EU and as an alternative to the Belt and Road initiative; recall that this alternative route would further diversify the EU’s supply lines and add to the EU’s energy security, and would reinforce the Southern Neighbourhood’s potential for economic growth, as well as further enhance the process of regional integration and regional dialogue and promote long-standing partnership, cooperation and peace among all the countries in the region;
   (ae) implement the new agenda for the Mediterranean by reinforcing EU support for free, strong and independent civil society across the Mediterranean, and through dedicated dialogue and consultation with local and regional authorities and communities; reinforce the links between EU delegations and the Euro-Mediterranean Regional and Local Assembly (ARLEM); recall that these are important and essential drivers for sustainable and fair economic and human development and are closer to the people, so that implementation strategies can reach all communities, including those most disadvantaged geographically or in socioeconomic terms, as well as human rights defenders; insist that EU support to civil society organisations should not be conditional on the approval of national authorities and is essential in all countries of the region without exception; mandate delegations in the Southern Neighbourhood to increase contact with local and regional authorities and a cross-section of society, as drivers for territorial development, especially in consultations on EU priorities for partnership and investment in Southern Neighbourhood countries; further mandate EU delegations in Southern Neighbourhood countries to set up high-level advisory councils reflecting the social, economic and political diversity of the countries concerned and comprising economic, media, cultural, academic, civil society and prominent youth leaders, as well as social partners and leading human rights defenders from the countries concerned, and providing more reflective input from key stakeholders as regards EU policy priorities and the policy architecture devised by the EU;
   (af) address the human rights situation and challenges faced by civil society and support concrete initiatives that reinforce civil society organisations, human rights defenders and independent media; ensure that partner countries effectively implement labour standards and address violations of ILO standards;
   (ag) incentivise and assist reform through the Southern Neighbourhood policy in the fields of democracy, the rule of law, human rights, good governance and anti-corruption for the benefit of people and stability in the region;
   (ah) call on all Southern Mediterranean countries to allow for a free, secure and transnational space for science and civil society organisations ahead of Egypt’s hosting of the COP27;
   (ai) present an ambitious EU action plan to tackle impunity for crimes against humanity, as requested by Parliament in March 2021, giving immediate priority to Syria which has seen the region’s deadliest conflict in decades, and stress the need to work to achieve a stable, secure, united and prosperous Libya, which is in everyone’s interests;
   (aj) present annual updates on the implementation of the new agenda for the Mediterranean, with particular regard to the disbursement of financial resources made available for the economic and investment plan; regularly consult Parliament on the annual and multi-annual programming related to the implementation of the new agenda for the Mediterranean and the economic and investment plan; regularly brief Parliament on the state of play of the new agenda for the Mediterranean, especially the implementation of its five priorities and the conclusion and fulfilment of joint documents and partnership priorities, and keep it informed about said implementation and the response to its recommendations in all EU policy areas, as well as on additional projects and programmes that will boost the EU’s partnership capacity with Southern Neighbourhood countries;
   (ak) invest relevant efforts in advancing intercultural and interreligious dialogue as a valuable opportunity to promote human rights and freedoms, jointly address religious fundamentalism, discrimination, anti-Muslim hatred and antisemitism, and jointly fight against radicalisation, incitement to hatred and violence, and terrorism; recall the intention of the President of Parliament to appoint an envoy for interreligious dialogue and closely involve the existing Commission and Parliament envoys for interreligious dialogue in joint efforts for interreligious dialogue with the Southern Neighbourhood countries;
   (al) seize the opportunity of the new agenda for the Mediterranean to create a strong framework for dialogue and cooperation across the Mediterranean for the preservation and promotion of cultural heritage, and for raising awareness of its value, including with a view to further promoting tourism and economic opportunities; enhance the preservation and promotion of the Cultural Routes of the Council of Europe in which the countries of the Southern Neighbourhood also participate, including the Andalusian Legacy Routes, the Aeneas Route, the Routes of the Olive Tree, the Iter Vitis Route and the Phoenician Route;
   (am) seize the opportunity to further expand the EU’s capacity for outreach and dialogue with the governments and parliaments of Southern Neighbourhood countries through Parliament’s long-standing and effective capacity for inter-parliamentary dialogue, democratic support and parliamentary diplomacy, with particular reference to Parliament’s inter-parliamentary delegations and their capacity to promote, in close coordination with relevant Parliament committees, democratic and policy dialogue in closer cooperation with Southern Neighbourhood countries;
   (an) ensure a positive link between the new agenda for the Mediterranean and the capacity of the EU and its Member States to build a coalition of like-minded countries to support a rules-based, effective multilateral system capable of boosting the capacity of the international community to address global challenges; include in the new agenda for the Mediterranean a strengthened dialogue on the value for Southern Neighbourhood countries of converging with the EU not only on policy dialogue, stability and economic growth, but also on the capacity to promote peace and stability, uphold the principles of and respect for international law, as in the case of the war of aggression against Ukraine, combat extremism, and uphold democratic values, fundamental freedoms and human rights in the UN system and relevant multilateral forums;
   (ao) engage with all Southern Neighbourhood partners to develop policies based on the 2030 Agenda and its SDGs, and aimed at strengthening the rule of law, good governance and respect for human rights and international law;
   (ap) encourage the Council to make full use of the EU Global Human Rights Sanctions Regime in the event of serious human rights violations in the region; work to extend the scope of this important instrument to include acts of corruption;
   (aq) condemn once again the use of the death penalty; call on the Southern Neighbourhood partners concerned to introduce an immediate moratorium on the use of the death penalty as a step towards abolishing it and to commute all death sentences;

2.  Instructs its President to forward this recommendation to the Council, the Vice-President of the Commission / High Representative of the Union for Foreign Affairs and Security Policy, the Commission, the Committee of the Regions, the Secretariat of the Union for the Mediterranean and its Parliamentary Assembly, as well as the governments and parliaments of the Member States of the European Union and the States that are members of the Union for the Mediterranean and its parliamentary dimension.

(1) OJ C 108, 26.3.2021, p. 90.


The new European Bauhaus
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European Parliament resolution of 14 September 2022 on the new European Bauhaus (2021/2255(INI))
P9_TA(2022)0319A9-0213/2022

The European Parliament,

–  having regard to the UN 2030 Agenda for Sustainable Development and the UN Sustainable Development Goals, in particular Goal 4 on quality education, Goal 11 on sustainable cities and communities, and Goal 13 on climate action,

–  having regard to the UN Intergovernmental Panel on Climate Change report of 4 April 2022 entitled ‘Climate Change 2022: Mitigation of Climate Change’,

–  having regard to the agreement adopted at the 21st Conference of the Parties to the UN Framework Convention on Climate Change (COP21) in Paris on 12 December 2015 (the Paris Agreement),

–  having regard to the Commission communication of 15 September 2021 entitled ‘New European Bauhaus: Beautiful, Sustainable, Together’ (COM(2021)0573),

–  having regard to the Commission communication of 10 June 2016 entitled ‘A New Skills Agenda for Europe – Working together to strengthen human capital, employability and competitiveness’ (COM(2016)0381),

–  having regard to the Commission communication of 22 May 2018 entitled ‘A New European Agenda for Culture’ (COM(2018)0267),

–  having regard to the Commission communication of 14 October 2020 entitled ‘A Renovation Wave for Europe – greening our buildings, creating jobs, improving lives’ (COM(2020)0662),

–  having regard to the Commission communication of 30 June 2021 entitled ‘A long-term Vision for the EU’s Rural Areas – Towards stronger, connected, resilient and prosperous rural areas by 2040’ (COM(2021)0345),

–  having regard to the Commission communication of 14 July 2021 entitled ‘Fit for 55: delivering the EU’s 2030 Climate Target on the way to climate neutrality’ (COM(2021)0550),

–  having regard to the Commission communication of 8 March 2022 entitled ‘REPowerEU: Joint European Action for more affordable, secure and sustainable energy’ (COM(2022)0108),

–  having regard to the Council conclusions of 30 November 2021 on culture, high-quality architecture and built environment as key elements of the New European Bauhaus initiative(1),

–  having regard to the Council conclusions of 15 November 2018 on the Work Plan for Culture (2019-2022)(2),

–  having regard to its resolution of 20 October 2021 on the situation of artists and the cultural recovery in the EU(3),

–   having regard to its resolution of 8 March 2022 on the role of culture, education, media and sport in the fight against racism(4),

–  having regard to its resolution of 17 September 2020 on the cultural recovery of Europe(5),

–  having regard to its resolution of 17 September 2020 on maximising the energy efficiency potential of the EU building stock(6),

–  having regard to its resolution of 17 December 2020 on the EU strategy on adaptation to climate change(7),

–  having regard to its resolution of 20 January 2021 on achieving an effective policy legacy for the European Year of Cultural Heritage(8),

–  having regard to its resolution of 11 November 2021 on the European Education Area: a shared holistic approach(9),

–  having regard to its resolution of 25 March 2021 on cohesion policy and regional environment strategies in the fight against climate change(10),

–  having regard to Regulation (EU) 2021/695 of the European Parliament and of the Council of 28 April 2021 establishing Horizon Europe – the Framework Programme for Research and Innovation, and laying down its rules for participation and dissemination(11) (the Horizon Europe Regulation),

–  having regard to Regulation (EU) 2021/783 of the European Parliament and of the Council of 29 April 2021 establishing a Programme for the Environment and Climate Action (LIFE)(12),

–  having regard to Regulation (EU) 2021/1058 of the European Parliament and of the Council of 24 June 2021 on the European Regional Development Fund and on the Cohesion Fund(13),

–  having regard to Regulation (EU) 2021/690 of the European Parliament and of the Council of 28 April 2021 establishing a programme for the internal market, competitiveness of enterprises, including small and medium-sized enterprises, the area of plants, animals, food and feed, and European statistics (Single Market Programme)(14),

–  having regard to Regulation (EU) 2021/694 of the European Parliament and of the Council of 29 April 2021 establishing the Digital Europe Programme(15),

–  having regard to Regulation (EU) 2021/817 of the European Parliament and of the Council of 20 May 2021 establishing Erasmus+: the Union Programme for education and training, youth and sport(16),

–  having regard to Regulation (EU) 2021/818 of the European Parliament and of the Council of 20 May 2021 establishing the Creative Europe Programme (2021 to 2027)(17),

–  having regard to Regulation (EU) 2021/888 of the European Parliament and of the Council of 20 May 2021 establishing the European Solidarity Corps Programme(18),

–  having regard to the ‘New Leipzig Charter – The transformative power of cities for the common good’ adopted at the informal ministerial meeting on urban matters on 30 November 2020,

–  having regard to the report by the Open Method of Coordination Working Group of Member States’ Experts of 6 October 2021 entitled ‘Towards a Shared Culture of Architecture: investing in a high-quality living environment for everyone’,

–  having regard to the Davos Declaration adopted by the Conference of Ministers of Culture on 22 January 2018 entitled ‘Towards a high-quality Baukultur for Europe’, and to the Davos Baukultur Quality System ‘Eight criteria for a high-quality Baukultur’ developed thereafter,

–   having regard to the ‘Building Better, Building Beautiful Commission of the Government of the United Kingdom’s final report of 30 January 2020 entitled ‘Living with Beauty’,

–  having regard to Article 167 of the Treaty on the Functioning of the European Union,

–  having regard to the EU Charter of Fundamental Rights, in particular Article 17 on the right to property, Article 18 on the right to asylum, Article 19 on protection in the event of removal, expulsion or extradition, Article 26 on the integration of persons with disabilities, Article 34 on social security and social assistance, Article 36 on access to services of general economic interest and Article 37 on environmental protection,

–  having regard to the European Pillar of Social Rights, in particular Chapter III on social protection and inclusion, Principle 19 on housing and assistance for the homeless and Principle 20 on access to essential services,

–  having regard to the work carried out on the New European Bauhaus (NEB) by the Commission’s Joint Research Centre,

–  having regard to Rule 54 of its Rules of Procedure,

–  having regard to the opinions of the Committee on Regional Development, the Committee on Budgets and the Committee on Employment and Social Affairs,

–  having regard to the joint report of the Committee on Industry, Research and Energy and the Committee on Culture and Education (A9-0213/2022),

A.  whereas Europe finds itself in a moment of ecological, digital and social transition, which is being accelerated by the economic and social impact of COVID-19; whereas Europe’s geopolitical situation is changing as a result of the Russian aggression against Ukraine; whereas populism, extremism and anti-European sentiment are on the rise;

B.  whereas the EU has been responding to the challenges of environmental degradation, climate change and the increasing scarcity of natural resources, which require far-reaching and ambitious political action to implement the European Green Deal, which is driving the quest for renewal and innovation within planetary boundaries; whereas, as the ‘soul’ of the European Green Deal, the NEB aims to address Europe’s spatial and environmental needs in a transdisciplinary, sustainable, inclusive and aesthetic way;

C.  whereas the transition to a climate-neutral economy by 2050 represents a great opportunity as well as a challenge for the Union, its Member States and businesses from every sector; whereas the NEB needs to reinterpret the original Bauhaus in the light of the climate crisis, war, the pandemic and natural disasters, which are increasing social inequalities;

D.  whereas culture and the freedom of the arts contribute significantly to the vibrancy of a society, enabling us to live better together, to build democratic, inclusive and free societies and to regain a sense of shared identity and belonging; whereas everyone should have the right to access and participate in culture; whereas culture is also essential to the exploration of the complex challenges of society and cultural venues are essential places for freedom of expression and debate;

E.  whereas culture is a strategic sector for the EU which helps to bolster its economy through its significant contribution to GDP and employment, and its indirect contribution to other sectors and industries; whereas the cultural and creative sectors and industries (CCSI) have been one of the areas hardest hit by the pandemic, are recovering more slowly than the rest of the EU economy and therefore should be further promoted and supported; whereas the NEB can enable further investment in the sector and engage different actors in its implementation on the ground;

F.  whereas architecture, urban and territorial planning, mobility, design, the arts, sociology and engineering are complementary and instrumental for building an inclusive, sustainable and beautiful society; whereas these sectors, which play a key role in promoting research and innovation for sustainable development, a sustainable building culture and innovative, space-efficient solutions in line with our green and digital transition, have been disrupted by the COVID-19 crisis;

G.  whereas there is an urgent need to develop more sustainable economic models in the construction and energy sectors, which both enable the circular economy and will help combat energy poverty and achieve the Union’s climate goals;

H.   whereas buildings are responsible for 40 % of the EU’s energy consumption and 36 % of its greenhouse gas emissions from energy(19);

I.  whereas the Renovation Wave strategy aims to double the rate of building renovation in Europe, aiming at the renovation of more than 35 million buildings and the creation of up to 160 000 jobs in the construction sector;

J.  whereas access to housing is a fundamental right; whereas homelessness and the lack of access to quality, affordable housing constitute a crisis in parts of the EU;

K.  whereas cities are places of pluralism, creativity and solidarity; whereas poor planning and design in the public realm and the growth of urban sprawl have resulted in the loss of building quality across Europe; whereas the NEB has the potential to explore opportunities to utilise the limited space in cities in a sustainable, aesthetic and inclusive way, to better connect urban and rural areas, and to ensure the participation of inhabitants in spatial planning and help them reclaim the city as a space created for interaction and cultural activities;

L.  whereas building a better future starts with quality education and training, including environmental education, vocational training and lifelong learning, inter alia through online learning opportunities that should be accessible to everyone, as well as upskilling and reskilling; whereas access to quality education is a fundamental right; whereas education and culture are vital for personal development and play a crucial role in the democratic and civic participation of citizens; whereas a high-quality built environment requires training skilled professionals, craftspeople and cultural workers; whereas achieving the Union’s strategic autonomy depends on its ability to excel in education, research and innovation;

M.  whereas cultural heritage, which reflects the values of a community, is increasingly impacted by climate change and environmental degradation and faced with other challenges such as underinvestment, bad planning and poorly managed tourist flows; whereas the NEB can contribute to preserving, restoring, adapting and protecting it for the future; whereas professionals in the building sector must contribute to the common good by respecting cultural heritage;

N.  whereas NEB projects require both a supportive regulatory framework, complying with sectoral EU legislation and sustainable public procurement practices;

O.  whereas Russia’s war actions are deliberately targeting public infrastructure, housing stock, cultural heritage and other civilian infrastructure in Ukraine;

Main objectives

1.  Recalls that the historic Bauhaus movement created a paradigm shift in design, architecture and the arts, with important legacies such as the optimisation of the form-function relationship, with the goal of democratising culture, which delivered radical rethinking and innovation and reflected true cultural and social changes in a progressive artistic and educational context in the aftermath of the First World War, while delivering real life benefits to people; notes that, in the same way, the New European Bauhaus can positively impact our daily lives by creating real changes on the ground and contributing to a just transition;

2.  Welcomes the NEB initiative, which aspires to create a pan-European cultural movement that will contribute to a smarter, more sustainable, inclusive and enjoyable living environment and foster local and global knowledge; emphasises that it must primarily focus on improving the quality of people’s lives by creating healthy and affordable living spaces, rethinking the status quo and transforming the spaces, buildings, cities and territories in which they live, including in less developed, suburban, rural, remote or cross-border areas and regions, in line with the Urban Agenda for the EU and building on the successful work carried out by URBACT, while improving coexistence and public space for social and territorial cohesion and democratic life, addressing the spatial segregation and historical exclusion of social groups and protecting the environment during the planning and construction of buildings and surrounding spaces;

3.  Recognises the NEB as a creative and inter- and transdisciplinary initiative which brings together architecture, design, the arts and science at the forefront of EU policies for the first time, while aiming to contribute to other Union programmes and initiatives, including its digital and green transitions, making the European Green Deal a tangible, positive and inclusive experience for all and giving it a creative and cultural dimension, thereby launching the next wave of innovation; underlines that the NEB also needs to protect citizens against natural and climate-related disasters by including a safety component in its objectives; notes that this will stimulate new ways of building and the use of innovative, high-quality, sustainable and resilient building materials, including post-disaster restoration;

4.  Reaffirms that the NEB has the potential to reshape the way policies are conceived, including by engaging with communities, to nurture policies and legislative developments which have an impact on the built environment and the well-being of the workforce, and to define the environment of the future by meeting the need for spaces that are accessible and adapted to new and changing ways of life, such as spaces for non-traditional household configurations, multigenerational housing, flexible co-working spaces, child-friendly urban environments and safer spaces for women and vulnerable people; insists that the NEB must display a level of ambition in line with the Union’s climate commitments and create guidelines for the Member States, including local and regional authorities, for its implementation;

5.  Emphasises that, in order to be successful, the NEB must be accessible, transparent, affordable, socially and geographically fair and inclusive and must actively involve EU citizens, community-based organisations and local residents, ensuring social and territorial diversity and supporting all scales of projects, in a bottom-up way – from project design to roll-out and evaluation – while taking active steps to prevent any elitist approaches or adverse effects of gentrification and enhancing citizens’ consultations and participation; highlights the need to engage young people in the initiative, especially young architects, artists and workers in the CCSI;

6.  Highlights the importance of ensuring accessibility for people with disabilities or reduced mobility, special needs and disadvantaged groups, by making public services, cultural, social and economic life accessible to all; highlights in this regard the importance of good design; insists that resources must also target excluded, marginalised and disadvantaged communities;

7.  Considers that this innovative cultural movement has the potential to position Europe as a global frontrunner in the area of sustainable architecture, territorial and spatial planning, design, culture, sustainable mobility and logistics, technology, the circular economy, energy efficiency and renewable energies by promoting ways of living, working and engaging in recreational activities better together, which can also be applied beyond the EU; believes that social and technological innovation must be adequately supported, including through public and private investment in research and development;

8.  Calls on the Commission to further broaden the reach of the NEB by involving associated and partner countries outside the EU to take part in the initiative, including by means of a permanent dialogue on the NEB; acknowledges that the NEB has the potential to contribute to the post-war restoration of cities, societies and the economy, in particular in the context of the ongoing war in Ukraine and with the involvement of the Ukrainian CCSI and its professionals;

Funding and governance

9.  Stresses that during the first years of its existence, the NEB has not been able to reach all EU countries and interested parties within them; urges the Commission and the Member States to raise awareness about this initiative and to improve the coordination between all levels of governance, which should have timely and equitable access to information, opportunities and funding; encourages the Commission to hold regular meetings with the Member States and partner countries, and to set up focal points in the Member States to facilitate the implementation of the NEB and access to funding; highlights the importance of adequate resources at EU and national level to support NEB implementation on the ground and tailored funding models and procedures, and to minimise the administrative burden;

10.  Encourages the Member States to implement the NEB in their national policies; underlines that the NEB can help address the significant disparities between Member States in terms of their ability to achieve NEB objectives, thereby contributing to a level playing field; encourages all public authorities, including Union institutions, to incorporate NEB principles into the management of their own built environment and public procurement procedures;

11.  Calls on the Commission to create an integrated, non-discriminatory, transparent, accountable and territorially structured model of governance for the NEB, including public involvement and ownership, through appropriate territorial planning and based on an overarching governance framework;

12.  Requests that the Commission provide timely information on how to participate in the NEB, including through technical assistance for interested stakeholders and best practices and that it clarify the general criteria for the selection and evaluation of NEB projects and initiatives and for the allocation of funds, in particular:

   supporting the implementation of key policies (e.g. the Green Deal, environmental, industrial, social and cultural policies),
   following the NEB guiding principles of sustainability, inclusiveness and aesthetics, and taking inspiration from the Davos Baukultur Quality System,
   creating new jobs with quality working conditions and business opportunities, which add economic value and improve European competitiveness, in line with sustainable finance principles, with a particular focus on streamlining procedures to apply for the NEB label and EU funding, and on enhancing the viability of small and medium-sized enterprises (SMEs), and contributing to the circularity and sustainability of the European economy,
   promoting accessibility by applying specific project criteria, as well as affordability, inclusiveness, gender mainstreaming, diversity, pluralism, safety and the development of civil social capital,
   promoting the participation and connection of all stakeholders, including local and regional governments, civil society and community-led organisations, interested individuals, professionals and their representative organisations,
   involving the CCSI, including cultural creators,
   ensuring alignment of the NEB with the UN Sustainable Development Goals, following the indicators of the 2030 Agenda, the Union’s commitment under the Paris Agreement, the EU’s climate, environmental, biodiversity and energy policies, the European Pillar of Social Rights and core European values;

13.  Calls on the Commission to make the principles of the NEB an integral part of all relevant future legislation, while at the same time highlighting the need to synchronise the NEB with existing Union legislation, programmes and initiatives, and ensuring that the existing regulatory framework, such as the Energy Performance of Buildings Directive and the Energy Efficiency Directive, supports NEB ambitions and implementation;

14.  Calls, in addition, for specific criteria to be developed for the relevant sectors, in particular construction and architecture, energy, mobility, design, technology, tourism, education and skills, crafts, culture and the arts, and cultural heritage, in close cooperation with stakeholders in these sectors, taking into account sector-specific certifications and standards, and for actions to promote synergies between these sectors; recalls that it is crucial to take into account geographical balance in order to allow the NEB to spread equally around the EU and beyond; emphasises, furthermore, that projects do not have to be cross-national to be awarded the NEB label;

15.  Regrets the lack of clarity on funding for the NEB from 2023 onwards; calls for the Horizon Europe Regulation to be amended during the mid-term revision of the current multiannual financial framework (MFF) in order to create an NEB mission funded with EUR 500 million; underlines that the programme should also be supported by other relevant programmes in order to generate additional impact and that existing Union programmes can help achieve NEB objectives; calls on the Commission to ensure that the NEB complements other EU policies, including cohesion policy, and to include support for the NEB in partnership agreements and programmes, supported by the EU’s structural and cohesion policies;

16.  Calls on the Commission to table a proposal as soon as possible to make the NEB a new stand-alone EU programme by the next MFF, whereby concrete ideas and objectives should be accompanied by adequate funding; acknowledges the efforts made by the Commission to launch the first calls for projects by taking money from existing programmes, but considers that their impact is not proportionate to the level of ambition of the project; insists that this will require fresh resources with a dedicated and stable budget line; underlines that this new programme must neither reduce funding for other underfunded programmes, in particular Creative Europe, Erasmus+ and the European Solidarity Corps, notwithstanding the links and synergies it may create with them, nor divert focus from their agreed political priorities; underlines that NEB resources should notably be dedicated to research and innovation;

17.  Calls on the Commission to develop a clear plan for attracting public and ethical private investment, including crowdfunding, with a focus on promoting female leadership in venture capital and start-ups; encourages the Member States, subject to their fiscal scope, to allocate adequate funding in line with NEB principles through their recovery and resilience plans and the European structural and investment funds to projects in line with NEB principles and objectives, in order to stimulate sustainable development and covering partnerships involving public and private entities; notes that this will create tangible results on the ground; underlines that the NEB should also contribute to the creation of spaces and buildings that facilitate entrepreneurship;

18.  Expresses the need to go beyond the phases of co-design, delivery and dissemination, ensuring that creative thinking continues throughout all phases; calls on the Commission to set up a transparent and evidence-based monitoring and evaluation mechanism that includes all relevant stakeholders, which should continuously review all NEB activities at EU and national level, including their societal and climate impact, their impact on the development of regions and their actual value creation over time, and report regularly to Parliament and the Council; expects to receive the first monitoring report in 2022;

Development and focus areas

19.  Believes that the NEB movement should promote more sustainable, socially inclusive and innovative ways of living based on new, holistic models of planning, constructing and inhabiting our built environment, with the meaningful involvement of residents in decision-making processes, in order to suit emerging needs and shifting consumption and mobility patterns, and to help to ensure decent, quality and affordable housing for all, in particular for vulnerable groups, including by combating housing exclusion and homelessness;

20.  Considers the NEB an opportunity to envision a well-designed green regeneration of public spaces with the aim of achieving decarbonisation objectives, to retrofit and repurpose obsolete buildings, to transform old industrial areas into new green urban and public spaces, and to build the relevant infrastructure to facilitate physical activity, knowledge and cultural exchanges;

21.   Calls for the NEB to promote 15-minute cities in order to make all essential services and amenities accessible to citizens within walking distance and to provide innovative solutions for the development of sustainable urban areas, including sustainable mobility solutions; highlights that the NEB needs to showcase affordable, socially inclusive and energy efficient buildings, and contribute to a modal shift towards public and collective transport and less polluting means of transport;

22.  Stresses the importance of transforming, upgrading and retrofitting the existing building stock, including poorly planned and constructed buildings erected by totalitarian regimes, of applying nature-based solutions such as wood and of reducing waste and increasing durability, re-usability and circularity in the built environment; insists that this should include favouring renovation and adaptive re-use over demolition and new builds, as appropriate, removing barriers related to the handling and transport of waste as well as raising people’s awareness about embodied and stored carbon in materials to enable them to make informed choices;

23.  Underlines that the NEB should also support initiatives for the construction and renovation of affordable, high-quality and energy-efficient social housing;

24.  Calls on the Member States to draw up innovative educational curricula in line with NEB principles and objectives for cultural education and the development of spatial, creative, orientation and drawing skills, and to integrate key NEB principles and green and digital skills within informal, non-formal and higher education, vocational training and lifelong learning, including by up- and reskilling relevant professionals, which will also help to deliver the European Skills Agenda; stresses the importance of raising awareness through education about respecting the environment and cultural heritage, in consultation with the Education for Climate Coalition; calls for the EU to promote such endeavours; calls on the Commission to make mobility opportunities an integral part of the NEB, especially for vocational education and training and university students from related disciplines and skilled professionals within the CCSI;

25.  Urges the Member States and the Commission to integrate all aspects of the knowledge triangle – innovation, research and education – by promoting partnerships between higher education institutes, including through the European University Alliances, research organisations, including architectural and cultural research centres, and industry, including relevant micro enterprises and SMEs, social enterprises and start-ups, in close cooperation with the European Institute of Innovation and Technology (EIT) and the Joint Research Centre; believes that the EIT’s Knowledge and Innovation Community on the CCSI should put its expertise at the disposal of NEB objectives, especially in Member States and regions where innovation capacity is moderate;

26.  Highlights that the NEB could support energy security and efficiency by encouraging investment and incentivising low-energy, zero-emission and low-carbon materials and solutions, including through cooperative and community-owned models for renewable energy production and projects utilising waste heat and integrated energy systems;

27.  Points to the pressing issue of rising energy prices and the resulting increase in energy poverty among EU households; underlines that NEB projects have a pivotal role in fighting energy poverty and protecting vulnerable households through innovative solutions for the building, construction, industrial and materials sectors, considering this a precondition for achieving a just and fair energy transition;

28.  Underlines that the NEB could facilitate the digital transition by improving connectivity to mitigate the digital divide, achieve more efficient, inclusive, accessible and eco-sustainable solutions, and enhance the use of local resources and skills;

29.  Recognises the NEB as a catalyst for bringing about transformative changes in the creative, construction and business ecosystems and a new understanding and quality in planning, designing and building, including by applying digital technologies throughout the whole building life cycle, building capacity for creating innovative models and digital technologies for urban planning by, among other things, fostering cross-border cooperation in data exchange and encompassing the principles of circularity and resource efficiency in moving towards carbon neutrality;

30.  Calls for the NEB to create incentives to encourage the use of sustainable and durable technologies and materials, promoting smart energy and environmental solutions and innovation in materials, processes, automation and techniques in a renewable, recyclable and cost-efficient manner that lowers greenhouse emissions, such as prefabricated elements with sustainable materials, photovoltaic or charging infrastructure, bio- and geo-sourced materials, and locally tested building techniques; in this context, stresses the importance of facilitating the supplies necessary for the production of such construction materials, including raw materials, while guaranteeing a level playing field by avoiding market distortion;

31.  Acknowledges that the cultural aspect of the NEB is critical to its social and democratic dimension; at the same time, calls on the Commission to define and develop a NEB evidence-based design methodology to ensure that the processes of transforming spaces, buildings, cities and territories are based on scientific research to achieve the best possible outcomes;

32.  Welcomes the innovative, integrated approach advocated by the NEB through the efficient use of space, the preservation, restoration, valorisation, promotion and re-use of historical, cultural and natural heritage; calls on the Commission and the Member States to use the NEB as an opportunity to better protect Europe’s rich cultural heritage from the impact of environmental degradation, poorly managed tourism and other challenges; underlines that through smart renovation, including energy efficiency improvements, transformation and adaptive re-use, cultural and heritage sites can find new and extended uses; acknowledges digitalisation as a means of valorising cultural heritage;

Implementation

33.  Calls on the Commission and the Member States to connect the NEB to the Renovation Wave, taking advantage of the innovative solutions that the project offers in the comprehensive, holistic, quality and cost-optimal renovation of our building stock; underlines that this should be based on a careful building life cycle analysis and mindful of the site-specific context, including local aesthetic and architectural characteristics, going beyond energy efficiency to include improvements of quality of the indoor environment, renewable energy, durability, accessibility, safety and the eradication of harmful substances; urges the Commission and the Member States to take action to rapidly upscale the rate of renovation, inter alia by avoiding additional barriers that hamper renovation;

34.  Believes that the environmental and social impacts of all NEB projects should be assessed throughout their life cycle;

35.  Calls on the Commission to further integrate Level(s), the newly established framework for sustainable buildings, to improve sustainability within the sector; underlines the need to optimise the framework to make it more accessible for professionals in the building sector; insists that the framework be updated continuously to include new findings and conclusions from NEB projects;

36.  Supports the creation of an NEB label, in partnership with relevant stakeholders, based on clear criteria applied in a comprehensive, holistic and inclusive way, assessing the sustainability-related, economic, environmental and social value of a project and promoting synergies with existing labels and tools, in order to recognise projects and products for achieving key NEB goals and help them get access to funding; calls on the Commission to ensure that EU funding schemes create incentives to apply for the label, including for citizen and community-led projects; calls for market uptake of the label to be explored; underlines that NEB projects in the building sector should be based on a careful building life cycle analysis and life cycle cost analysis;

37.  Invites the Commission and the Member States to encourage the direct involvement of local and regional authorities in the design and implementation of projects, including by developing detailed application guidelines and building their capacity to implement the NEB; urges regional and local authorities to investigate how local cultural institutions can benefit from implementing NEB principles, in particular for mitigating their climate footprint;

38.  Emphasises, in this regard, that the preparatory action on the ‘New European Bauhaus Knowledge Management Platform’ in the 2022 budget can help streamline guidance and share information on funding opportunities for prospective applicants and can be further expanded from 2023;

39.  Emphasises the importance of more flexibility for local and regional authorities to experiment with NEB projects and underlines the potential of allowing regulatory ‘sandboxing’ to boost innovation within the circular economy and the NEB;

40.  Believes that the NEB should be part of a broader Cultural Deal for Europe; highlights that the NEB should embrace and promote the untapped potential of the CCSI, including cultural creators, as drivers of sustainable economic growth and a source for innovative, high-quality services and products, by guaranteeing the involvement of the CCSI, supported by targeted guidelines and opening up new opportunities for collaboration, mutual learning, capacity building and cultural exchange, while ensuring fair working conditions and the fair remuneration of those involved; emphasises that the environmental sustainability of cultural events linked to the NEB should be promoted;

41.  Calls on the Commission to allow Parliament to be more closely involved in the relevant NEB bodies such as the high-level roundtable;

42.  Calls for the future NEB Lab to contribute to research and innovation within the focus areas of the NEB; highlights the need for the NEB Lab to make innovative recommendations, to collaborate with other institutions, national, regional and local governments, and stakeholders, including civil society and community groups, and to establish clear and transparent operating and reporting rules in line with the initiative; urges the Commission to speed up the roll-out of the Lab and provide it with adequate resources;

43.  Welcomes the creation of the NEB Festival and the annual NEB Awards, which should reflect the rich cultural diversity of the Union and seek synergies with other relevant European awards and events; highlights the importance of organising NEB events across Europe in order to reach more people and raise awareness about the initiative, including through specific events, festivals and the creation of a European Year of the NEB;

44.  Calls on the Commission to plan the destinations of the yearly NEB festivals taking into account the European cities chosen by UNESCO as ‘World Capitals of Architecture’; suggests that the NEB festival be held in these EU cities selected as World Capitals of Architecture in order to improve the promotion of European architecture and innovation;

45.  Calls on the Commission to create and regularly update a public, digital and easily accessible database of NEB projects and actions so as to make the results of the initiative more visible, to further develop the NEB based on best practices, including within the cultural sector, and to strengthen knowledge sharing, research and development;

46.  Calls for the communication, outreach and visibility efforts of the NEB to be enhanced, while respecting multilingualism, in order to boost people’s knowledge of, support for and participation in the initiative, in particular through participatory public outreach activities, including through social media and digital publications, such as awareness-raising campaigns, a platform providing information, best practices of NEB projects from all Member States and educational content, including a module on the NEB, the creation of tools and spaces that facilitate peer learning, the exchange of ideas and knowledge, and surveys to assess the impact of NEB projects;

o
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47.  Instructs its President to forward this resolution to the Council and the Commission.

(1) OJ C 501 I, 13.12.2021, p. 13.
(2) OJ C 460, 21.12.2018, p. 12.
(3) OJ C 184, 5.5.2022, p. 88.
(4) Texts adopted: P9_TA(2022)0057.
(5) OJ C 385, 22.9.2021, p. 152.
(6) OJ C 385, 22.9.2021, p. 68.
(7) OJ C 445, 29.10.2021, p. 156.
(8) OJ C 456, 10.11.2021, p. 24.
(9) OJ C 205, 20.5.2022, p. 17.
(10) OJ C 494, 8.12.2021, p. 26.
(11) OJ L 170, 12.5.2021, p. 1.
(12) OJ L 172, 17.5.2021, p. 53.
(13) OJ L 231, 30.6.2021, p. 60.
(14) OJ L 153, 3.5.2021, p. 1.
(15) OJ L 166, 11.5.2021, p. 1.
(16) OJ L 189, 28.5.2021, p. 1.
(17) OJ L 189, 28.5.2021, p. 34.
(18) OJ L 202, 8.6.2021, p. 32.
(19) European Commission, ‘In focus: Energy efficiency in buildings’, 17 February 2020.

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