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European Council adopts new rules for 11.7% cut in energy consumption

28 Jul '23

2 min read

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The European Council adopted new regulations to collectively decrease final energy consumption by at least 11.7 per cent by 2030 across member states.
Individual contributions will be evaluated and adjusted as necessary to reach the collective goal.
The annual energy savings target will gradually increase from 1.49 per cent in 2024 to 1.9 per cent in 2030.

The European Council has adopted new regulations to collectively decrease final energy consumption by at least 11.7 per cent by 2030 across member states, based on the energy consumption forecasts made in 2020. These new rules equate to an upper limit of 763 million tonnes of oil equivalent for final energy consumption and 993 million tonnes for primary energy consumption across the European Union (EU).

Final energy consumption refers to energy used by end-users, whereas primary energy consumption encompasses energy used for production and supply. The new limit for final consumption will be legally binding for member states collectively, whereas the primary energy consumption target will serve as a guide.

Each member state will contribute to reaching the overall EU goal by setting indicative national contributions and trajectories in their integrated national energy and climate plans (NECPs). The draft updated NECPs were due in June 2023, with the final versions expected in 2024, the European Council said in a press release.

The formula for calculating national contributions to the target will be indicative, allowing a deviation of up to 2.5 per cent. The formula's parameters include energy intensity, GDP per capita, development of renewables, and energy savings potential.

The European Commission will assess if the cumulative national contributions meet the 11.7 per cent target. If they fall short, the commission will issue corrections to underperforming national contributions via a gap-filling mechanism.

The annual energy savings target for final energy consumption will progressively increase from 2024 to 2030. Member states will be required to achieve an average of 1.49 per cent of new annual savings of final energy consumption during this period, culminating at 1.9 per cent by December 31, 2030.

Member states will be allowed to count energy savings realised through policy measures under the current and revised energy performance of buildings directive, EU emissions trading system measures, and emergency energy measures towards the target.

In addition, the public sector has a specific mandate to achieve an annual energy consumption reduction of 1.9 per cent, excluding public transport and armed forces. Furthermore, each year, member states must renovate at least 3 per cent of the total floor area of buildings owned by public bodies.

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