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Institutions and Procedures

Institutions and Procedures

The new provisions consolidate existing EU governance rules and introduce the new reporting obligation for Member States concerning climate protection, in particular the submission of national energy and climate plans (“NECPs”).

Regulation on the Governance of the Energy Union

Key Takeaways

Integrated national energy and climate plans

  • New instrument to jointly meet the targets and objectives of the Energy Union: integrated national energy and climate plans (“NECP”) which each Member State needs to prepare and submit to the Commission.
  • Covering 10-year periods, NECPs shall contain:

national objectives and targets of the Member States regarding the five dimensions of the Energy Union (energy security, internal energy market, energy efficiency, decarbonising and research, innovation and competitiveness); and

corresponding policies and measures regarding the Member States’ contributions to green-house gas (“GHG”) reduction, energy efficiency, renewables deployment and stronger interconnection between bidding zones.

Reporting and update

  • Member States must regularly report on the status of implementation and the Commission may react to insufficient ambition as well as to insufficient progress, mostly by issuing recommendations.
  • Two years after the implementation date of their NECPs, Member States must report whether and how they intend to update the plans (the first report is due on 30 June 2023) and submit a final update one year later.

Long-term strategies

  • Member States are obliged to develop long-term strategies on climate objectives covering at least a 30-year period.
  • First strategy is due on 1 January 2020, subsequently by 1 January 2029 and every ten years thereafter. An update is due after five years.

Bi-annual assessment

  • Bi-annual assessment by the Commission on linear Union trajectory regarding renewable energy (first time due 31 October 2021).
  • If Union trajectory is not met, Member States that have fallen below their national reference points or their baseline shall cover the gap by introducing additional measures within one year, which may include:

making a voluntary financial payment to a renewable energy financing mechanism set up at Union level, or

contributing to renewable energy projects managed directly or indirectly by the Commission.

Renewable energy financing mechanism

  • Commission to establish the Union renewable energy financing mechanism to tender support for new renewable energy projects in the Union with the aim of covering a gap in the indicative Union trajectory by 1 January 2021.
  • Renewable energy from installations financed by the financing mechanism shall be attributed to the participating Member States every year, reflecting their relative payments.

ACER-Regulation (recast)

Institution and procedure

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