EU Sets 11.7 Percent Cut in Energy Consumption by 2030

The European Union has formally published an energy efficiency directive mandating member countries to curb energy consumption by 11.7 percent by 2030 relative to projections for 2020. 

The directive published in the EU Official Journal on Wednesday aims for a final energy consumption of at most 763 million metric tons of oil equivalent (MMtoe) by 2030, compared to the EU 2020 projection of 868.8 MMtoe. Final energy consumption by the definition of the directive means "all energy supplied to industry, to transport, including energy consumption in international aviation, to households, to public and private services, to agriculture, to forestry, to fishing and to other end-use sectors, excluding energy consumption in international maritime bunkers, ambient energy and deliveries to the transformation sector and to the energy sector, and losses due to transmission and distribution". 

Energy Efficiency Directive (EU) 2023/1791 sets a primary energy consumption target of no more than 992.5 MMtoe by 2030, compared to the EU 2020 projection of 1,176.1 MMtoe. Primary energy consumption by the definition of the directive means "gross available energy, excluding international maritime bunkers, final non-energy consumption and ambient energy". 

The publication of the directive in the journal sets it for effectivity in 20 days. Governments in the 27-member bloc have two years to adopt most of the measures contained in the directive into national policy. 

"Today’s publication marks the final step in the legislative process that started with the [European] Commission proposal in July 2021, as part of the ‘Fit for 55’ package, which was supplemented by an additional proposal as part of the REPowerEU plan in May 2022", the EU Directorate-General for Energy said in a press release. 

Fit for 55 is the set of EU laws toward achieving a regional reduction in greenhouse gas emissions of at least 55 percent by 2030 relative to 1990. Proposals under the package that have already come into force include a carbon pricing mechanism, a financial support scheme for households and microenterprises vulnerable to energy poverty and a requirement for the deployment of alternative fuels infrastructure. 

REPowerEU, launched May 18, 2022, outlines measures for the phaseout of Russian fossil fuels by 2027. 

The directive orders member states to adopt the energy efficiency-first principle. This means they must "ensure that energy efficiency solutions, including demand-side resources and system flexibilities, are assessed in planning, policy and major investment decisions of a value of more than EUR 100 000 000 [$106.46 million] each or EUR 175 000 000 [$186.3 million] for transport infrastructure projects", as stated in the official text. This provision is adopted with a view to passing relevant legislation after the conduct of an assessment due 2027, "with the aim of downward revision, taking into account possible developments in the economy and in the energy market", the text says. 

The directive also sets energy savings obligations, measured using the average final energy consumption during 2016-18. From the current obligation of 0.8 percent, energy savings are set at 1.3 percent for 2024-25, 1.5 percent for 2026-27 and 1.9 percent for 2028-30. 

"Member States shall implement energy efficiency obligation schemes, alternative policy measures, or a combination of both, or programs or measures financed under a national energy efficiency fund, as a priority among, but not limited to, people affected by energy poverty, vulnerable customers, people in low-income households and, where applicable, people living in social housing", the directive states.  

The directive also mandates member states to migrate their district heating and cooling systems to 100 percent renewable energy, waste heat or a combination of the two by 2050. In the nearer term, by 2028, district heating and cooling systems should use "at least 50 percent renewable energy, 50 percent waste heat, 50 percent renewable energy and waste heat, 80 percent 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 percent and the total share of renewable energy, waste heat or high-efficiency cogenerated heat is at least 50 percent". 

District heating and cooling systems that are built or substantially refurbished for a lifespan till 2030 should not use fossil fuels except gas, according to the directive. 

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