Deal reached for 2030 renewable target (32%) but energy efficiency target still unresolved

15 June 2018 11:15 Source:ICIS

This analysis has originally been published in an extended version for ICIS EU carbon subscribers on 14 June at 09:34 CET.

During the night, the EU Council and the Parliament finally agreed on a 32% headline target for renewable energy in the trilogues. Negotiators failed to reach an agreement on energy efficiency.

Main points

  • 2030 RES target: 32% deal reached
    • According to green MEP Claude Turmes, the deal includes “an upward review clause by 2023 at the latest” (see Euractiv article)
    • Original positions of institutions were as followed:
      • Commision proposal: binding 27%
      • Council position: binding 27%
      • Parliament position: binding 35%
  • 2030 Energy efficiency target: Disagreement prevails, negotiations continue
    • The EU Parliament was allegedly not willing to go below a 32.5% target
    • In paralell, the Bulgaria Council Presidency was unsure about its mandate as Italy and Spain, which recently had new governments, were now backing higher targets
    • Original positions of institutions were as followed:
      • Commission proposal: binding 30%
      • Council position: indicative 30%
      • Parliament position: binding 35%
    • Next step:
      • According to our sources, there is a trilogue on governance of the Energy Union next Tuesday 19 June
      • The Bulgarian Presidency could decide to include energy efficiency during that meeting but this is not yet confirmed
      • Although MEP Turmes mentionned this Friday 15 June as a likely meeting on energy efficiency, the COREPER 1 meeting in question does not have energy efficiency on its agenda

Analysis

  • The 32% RES target deal is in line with our expectations of 32%-33% stated earlier
  • The upward review clause by 2023 would allow for a potential increase of the target in the context of the global stocktaking for the Paris agreement
  • With the 32% target deal reached, the two EU co-legislators settled on a target between their initial positions
  • This probably suggests the Parliament had to give grounds on certain Council demands
  • On energy efficiency, we believe it is likely negotiators will reach a deal potentially next week if a discussion on energy efficiency is confirmed for next Tuesday 19 June – this is the same say as the governance proposal trilogue
    • In our opinion, the recent discussions suggest that a final compromise will include an EE target of either 32% or 33%, with uncertainty over whether the target will be binding or not

Yann Andreassen is Senior Analyst - EU Carbon & Power Markets at ICIS. He can be reached at Yann.Andreassen@icis.com

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By Staff Reporter