Directive (EU) 2023/1791 on energy efficiency (recast)

What it is

to recast the energy efficiency Directive in order to set a more ambitious binding annual target for reducing energy use at EU level. PROPOSED ACT: Directive of the European Parliament and of the Council. ROLE OF THE EUROPEAN PARLIAMENT: the European Parliament decides in accordance with the ordinary legislative procedure and on an equal footing with the Council. BACKGROUND: the energy efficiency Directive is an important element to progress towards climate neutrality by 2050, under which energy efficiency is to be treated as an energy source in its own right. Energy efficiency solutions should be considered as a guiding principle of the Union's energy policy and as the first option in planning and investment decisions, when setting new rules for the supply side and other policy areas. The Committee on Industry, Research and Energy adopted the report by Niels FUGLSANG (S&D, DK) on the proposal for a directive of the European Parliament and of the Council on energy efficiency (recast). The committee recommended that the European Parliament's position adopted at first reading under the ordinary legislative procedure should amend the proposal as follows: 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. The Directive also provides for the establishment of binding national energy efficiency contributions for 2030. Energy efficiency solutions should be assessed in the design and planning of policy decisions as well as major investment decisions concerning the following sectors: (a) energy systems; and (b) non-energy sectors, where they have an impact on energy consumption and energy efficiency, including the building, transport, water, information and communication technology (ICT) and agriculture sectors as well as the financial sector. When applying the principle of primacy of energy efficiency, Member States should: - define a cost-benefit analysis methodology that assesses the wider benefits of energy efficiency solutions; - ensure that the application of the energy efficiency first principle will have a positive impact on addressing energy poverty ; - 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. Member States should 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. Member States should set binding national energy efficiency contributions for final and primary energy consumption to meet, collectively, the binding Union target. They…

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