Energy Union Governance: state of play and next steps · CLEAN ENERGY FOR ALL EUROPEANS National Energy and Climate Plan (NECP) - Structure and content - Binding template and 10 year

CLEAN ENERGY FOR ALL EUROPEANS

Energy Union Governance:

state of play and next

steps

Paula Pinho

DG Energy, Unit A1


PURPOSE AND SCOPE OF THE PROPOSAL

A ROBUST GOVERNANCE TO MEET 4 OBJECTIVES

Meet Energy Union objectives (notably the 2030 targets)

Allow for investor certainty and predictability

Ensure Better Regulation and reduce administrative burden

Synchronise planning and reporting cycles with Paris Agreement


Governance negotiations - Key results -

Co-legislators confirmed the proposed architecture of the

Governance allowing its objectives to be met through:

1) Governance process (dialogue Member States- COM,

Member States- stakeholders and among Member States )

based on the:

2) National energy and climate plans (NECPs) covering

national targets and objectives as well as planned policies

and measures to achieve these, across al 5 dimensions of

the Energy Union


Governance negotiations results- Main novelties -

Formula for calculation RES contributions in case of an ambition gap

Gap filler for interconnection target

Strengthened Long Term Strategy

Strenghtened role of the Council and European Parliament in the political monitoring

Multilevel climate- and energy dialogue

Strategic plan for methane as part of EU LTS

•


National Integrated Energy and Climate Plans (2021 to 2030)

(preparation well before 2020)

National progress reports(from 2023, every two years)

European Commission monitoring(State of the Energy Union)

1 Plan1 Report1 Monitoring

Streamlining:

GOVERNANCE PROCESS – reporting & monitoring

MAIN ELEMENTS OF THE ENERGY UNION GOVERNANCE


Integrating planning, reporting and monitoring obligations for Member States

Security of energy supplydirective

Security of gas supplyregulation

LULUCF regulation

Energy Efficiency Directive

Renewable Energy Directive

Electricity regulation

Gas / Electricity directive

EU Monitoring MechanismRegulation

Paris Agreement

SET plans

Governance regulation

ACER regulation

Gas Regulation

Decarbonisation Internal market

Energy efficiency

Security of supply

Research, innovation and competitiveness

Energy Performance of Buildings Directive


INTEGRATION OF THE MONITORING MECHANISM REGULATION

The Governance proposal fully integrates the provisions of the existing MMR which will

allow the EU to comply with its reporting obligations under the UNFCCC and the Paris

Agreement

Robust transparency framework for GHG laid down in the MMR is continued

Modifications to the MMR text have been performed in order to:

• Bring it in line with the provisions of the Paris Agreement

• Delete references to the Kyoto Protocol and Articles deriving from its implementation

• Adapt the text to the specific needs arising from the ESR and LULUCF Regulations

• Streamline the text with the energy acquis

• Drafting changes deriving from the integration in a bigger framework

MMR is repealed from 1 January 2021 onwards


National Energy and Climate Plan (NECP) - Structure and content -

Binding template and 10 year planning cycle

Section A

NATIONAL PLAN

Section B

ANALYTICAL BASIS

1. Overview and Process for Establishing the Plan

2. NationalObjectives

and Targets

3. Policies and Measures

4. Current Situation

and Reference Projections

5. Impact Assessment of Policies and Measures

Decarbonisation

Energy efficiency

Internal market

R&I and Competitiveness

Energy security

ENERGY UNION DIMENSIONS


National Energy and Climate Plan - Content -

• Annex I – Mandatory template for draft and final plans

• Five dimensions of the Energy Union allow theCommission to assess both the level of nationalambition and contributions to the EU leveltargets.

• Analytical basis


National Energy and Climate Plan - Assessment -

• Deadline for MS submission of draft plans for evaluation by COM: 31 December 2018

• COM early assessment (RES) by mid- April 2019

• COM issues recommendations 6 months beforedeadline for submission of final plans


A RELIABLE GOVERNANCE PROCESS FOR ACHIEVEMENT OF ENERGY UNION OBJECTIVES AND 2030 TARGETS

GOVERNANCE PROCESS - target achievement

Draft National Plans

(and their updates)

Implementation

of National Plans

(Progress Reports)

Final National Plans

(and their updates)

Recommendations

(2019 and 2023)

MS

COM

Recommendations (2021-2030)

Union measures

(2019 and 2024)Union measures

(checks in 2022; 2025 and 2027)

National measures

for RES

Closing "Delivery gap"Closing "Ambition gap"

Cooperation with MS on

interconenctions (2025)


National Energy and Climate Plan- Finalisation -

• Member States take utmost account of COMrecommendations and consider comments from otherMember States

• Deadline for the submission of the final plans: 31.December 2019

• If insufficient ambition of national contributions to reachEU 2030 RES and EE targets, the Commission can takemeasures at EU level to close ambition gaps


National Energy and Climate Plan – Assessment- Gap fillers (“What if…?”)

RES ambition

gap

EE ambition

gap

EE Delivery

gap

RES Delivery

gap

• 3 reference points: 18% in 2022; 43% in 2025 and 65% in 2027

• National additional measures only in case of collective gap

• MS should illustrate additional measures to cover their gap

• 2020 baseline confirmed: 2 Years to cover gap

• RES financing mechanisms by 2021

• 3 reference points in 2022; 2025 and 2027.

• No role for national measures.

• If progress towards EU target are insufficient COM shall propose measures

• COM shall assume national contributions for those MS not submitting their draft NECP in time

• If an ambition gap exists, COM shall propose EU measures

• Indicative formula (new Annex) is introduced to inform COM assessment if there is an EU level ambition gap

• COM shall assume national contributions for those MS not submitting their draft

NECP in time taking into account modelling exercises and other complementary analysis.• If an ambition gap exists,

COM shall propose EU measures


National Energy and Climate Plans – Implementation and reporting -

• Member State implement plans and submit an integrated progress report every two years, starting2023 (2021)

• The Commission assesses the reports and issuesrecommendations to Member States

• Biennial integrated Commission monitoring to be reported to Council and Parliament

• Updates every 5 years in line with Paris Agreement review cycle


Integrated reporting across all 5 Energy Union dimensions

Biennial reporting as main rule

Annual reporting continued when needed due to EU's international climate commitments (and for certain energy-related reporting)

Establishment of e-reporting Platform

INTEGRATED REPORTING (1)

Key considerations


By 15 March 2023 and every two years thereafter: Integrated Reporting on the status of implementation of the National Plans across all 5 Energy Union dimensions: Decarbonisation including renewables; Energy efficiency; Internal energy market, Security of supply; Research, innovation and competitiveness

Reporting on progress

Policies and measures and Projections

Information on how the recommendations of the Commission have been addressed

On decarbonisation (GHG) specifically:

Information on adaptation planning and strategies

Copies of biennial UNFCCC reports or National Communications

Estimates on improved air quality and emissions reductions of air pollutants

INTEGRATED REPORTING (2)

Biennial reporting


By 15 March 2021 and every year thereafter, reporting on:

Greenhouse gas inventories

Approximated greenhouse gas inventories (31 July)

Reporting on support to developing countries

Reporting on EU ETS auctioning revenues

Summary copy of a register of emergency crude oil stocks; information on offshore oil and gas installations

E-reporting platform

EC to establish a reporting platform for biennial progress reports and annual reporting

Facilitates communication between COM and MS

INTEGRATED REPORTING (3)Annual reporting

E-reporting


THANK YOU!

Paula Pinho

DG Energy, Unit A1


NEXT STEPS TO FOLLOW

June

September

August

JulyJanuary

October December

November

4th Trilogue

(conclusive)Legal linguist revision and translation

(check of consistency & cross reference

EP plenary debate &

vote

Signature

19/20

CRP (debrief &

endorsement; letter to EP)

29 10

EP Joint Committee

(confirmation of agreement)

CRP approval of EP position

(I point)

Council formal

adoption (A point)

OJ publication

& entry into force

2018 2019

DDL draft NECPs


2018 202120202019 203020292022 20242023 20262025 2027 2028

Draft Plans

(Dec '18)

Final Plans(Dec'19)

Assessment 2020 RES and

EE targets

Draft update of 2030 Plan

(June '23)

Final updateof 2030 Plan

(June '24)

Draft Plans(Jan '28)

Final Plansof 2031-2040

(Jan '29)

Biannual Commission assessment and recommendations Regional cooperation

TIMELINE

Member States

LTS(Jan '20)

Member States LTS

(Jan '30)

2031 2032 2033 2034

Draft Final Plans

(Jan '34)

Draft update(Jan '33)

Progress report

Progress report

Progress report

Progress report

Progress report

Progress report

COM recommendations 6 months before DDL final NECPs

Documents

Energy Union Governance: state of play and next steps · CLEAN ENERGY FOR ALL EUROPEANS National Energy and Climate Plan (NECP) - Structure and content - Binding template and 10 year