EU Council agrees its position on the revision of the Renewable Energy Directive: a 40% target for 2030

On 27 June 2022 in Luxembourg, the energy ministers of the Member States agreed a general approach on the revision of the Renewable Energy Directive (RED). The Council backed an EU renewables target of 40% in 2030, five percentage points lower than the position of the Commission (after the REPowerEU plan) and of the European Parliament, which are heading towards 45%. The agreement opens the way to trilogue negotiations, in which, among other things, the rules for biomethane, biomass and transport fuels will take shape.

What is changing

The RED revision is one of the pillars of the "Fit for 55" package. The Council's position includes, among other things, a higher overall target for renewables, sectoral targets for heating and cooling, transport and industry, simplified permitting procedures, and changes to the sustainability criteria for bioenergy. In the context of biogas, what matters is the retention of the certification system, which makes it possible to confirm the origin and sustainability of feedstocks and the greenhouse gas emissions balance.

Rules on gas grids were also proposed for renewable gases, including the cross-border flow of certificates. For the industry this means that guarantees of origin and sustainability certification will be even more important.

Significance for the industry in Poland

For Poland higher renewables targets are a challenge, but the development of renewable gases is in line with its interest in energy security. For domestic investors, what matters is how the rules on biomass, on support for agricultural biogas and on transport fuels are ultimately worded. Binding sectoral targets and feedstock definitions will influence which projects obtain support.

The obligation to transpose the directive will give Poland an opportunity to put the rules in order: guarantees of origin for biomethane, sustainability criteria and the support system. It is worth the industry submitting comments at the consultation stage.

Biomethane in the text of the directive

For the gas market, the provisions on guarantees of origin, mass balancing in gas grids and the status of biomethane in sectors where it is hard to replace fossil fuels, namely industry and heavy-duty transport, are particularly important. The provisions may affect which sectors will be the main buyers of biomethane and under which mechanisms. That is why European biogas associations are lobbying intensively on this matter.

How a general approach works

A general approach is the Council's official position, agreed by qualified majority. It is not yet a legal act, but it defines the Member States' negotiating position towards Parliament. The final text is produced in the trilogue, in which representatives of the Council, Parliament and the Commission seek a compromise. Investors should therefore not base decisions on individual targets from the preliminary stage, but on the final version.

What next

After the Council's position and the expected position of Parliament, trilogue negotiations will begin. The parties must agree the final level of the target, the sectoral pathways and the criteria for bioenergy. The conclusion of the work is expected in the following year, after which Member States will be given time to implement the rules into national law.