On July 13, the European Parliament’s Committee on Industry, Research, and Energy (ITRE) presented a proposal to update the EU’s Renewable Energy Directive, increasing their share of member states’ energy mixes by another 5% over the Fit for 55 climate package proposed just a year ago.
The RED II came into force in December 2018, along with the Energy Efficiency Directive (EED) and the Energy Union Governance Regulation. The documents formed the basis for the European Union’s energy strategy with a view to the end of 2030.
The original objectives of the directive established new conditions for the development of renewable energy in EU member states, all of which were explicitly obliged to implement. The regulations included in Article 3 increased the share of renewable energy sources in gross national final energy consumption to 32% by 2030, which was to translate directly into a 40% reduction in CO2 emissions from the EU economy compared to 1990 levels. Their implementation was to be made possible by rational national regulations on procedures, issuance of permits, certificates, and licenses. The directive also placed a strong emphasis on prosumers and their role in the energy transition, providing them with the right to produce their renewable energy.
Fit for 55 – an essential update
In July 2021, there was an update of the assumptions. With the new legislative proposals included in the Fit for 55, the EU’s ambitions in the area of renewable energy have increased. Fit for 55 is a set of 13 pieces of legislation (including eight revisions and five new ones) that includes a strengthened target to achieve a 55% reduction in greenhouse gas emissions by 2030. – an important step on the way for Europe to achieve climate neutrality in 2050. With the strengthening of the target, it became necessary to accelerate actions on the way to achieving it. One of them was the revision of the existing RED II targets. According to the amendments contained in the Fit for 55, the share of renewable sources in EU member states was to increase to 40% by 2030. The updated directive also promoted the use of renewable hydrogen by expanding the EU’s renewable fuel certification system.
EU Parliament in favor of renewable energy and fuels
After only a year of functioning in this form, the target has been raised again. During Wednesday’s vote, the European Parliament voted in favor of the need to increase the share of renewable energy sources in Europe’s energy mix to 45% by 2030. The second recasting of the directive in such a short period additionally ties in with targets for increasing renewable hydrogen consumption in the industry and transportation.
In the case of transport, the goal of reducing the greenhouse gas intensity of transport fuels by 16% compared to current levels has been reinforced. In this regard, the need to increase the share of renewable fuels of non-biological origin (RFNBO), including hydrogen, to at least 2.6% in 2028 and at least 5.7% in 2030 was indicated. Moreover, in the marine sector, a sub-target has been approved for RFNBO to reach 1.2% in 2030. Ambitions in the industry have also been increased to 50% of RFNBO by 2030 and 75% by 2035. Renewable fuels are to be prioritized in sectors where electrification is too costly or impossible.
The new goals respond to the current geopolitical situation in Europe, related to the conflict in Ukraine. According to the REPower EU plan, increasing the share of energy and renewable fuels is expected to enable independence from imports of Russian oil and gas and ensure the energy security of member states, while implementing climate provisions. However, their success depends directly on implementation in individual national economies, and this remains strictly dependent on the creation and implementation within them of the right conditions – simple and fast permitting, as proposed by the European Commission.
From the perspective of further development of the hydrogen market, the content of the delegated act, which sets rules for the use of electricity for its production, will be important. According to some experts, a real increase in the use of hydrogen and a reduction in emissions will be achieved only if it is produced from additional renewable energy sources and does not absorb the energy used for direct electrification. This is because they point to the risk of increased emissions in the first years of the transition, caused by the increased demand for electricity for hydrogen production, which will come from electricity grids based on generation from conventional sources. Such a direction, however, would significantly affect the scaling of hydrogen technologies. As a result, the industry expressed its concern and noted the need to adjust the document in a way that responds to the current situation and enables an appropriate response to the energy crisis. The plenary vote is expected to take place this September.
