EUROPEAN COMMISSION

Brussels, 23.2.2017

COM(2016) 759 final/2

2016/0375(COD)

CORRIGENDUM
This document corrects document COM (2016) 759 final of 30.11.2016
Concerns all language versions.
The text shall read as follows:

Proposal for a

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

on the Governance of the Energy Union,

amending Directive 94/22/EC, Directive 98/70/EC, Directive 2009/31/EC, Regulation (EC) No 663/2009, Regulation (EC) No 715/2009, Directive 2009/73/EC, Council Directive 2009/119/EC, Directive 2010/31/EU,
Directive 2012/27/EU, Directive 2013/30/EU and Council Directive (EU) 2015/652 and repealing Regulation (EU) No 525/2013

(Text with EEA relevance)

{SWD(2016) 394 final}
{SWD(2016) 395 final}
{SWD(2016) 396 final}
{SWD(2016) 397 final}

EXPLANATORY MEMORANDUM

1.CONTEXT OF THE PROPOSAL

•Reasons for and objectives of the proposal

•Consistency with existing policy provisions in the policy area

•Consistency with other Union policies

2.LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY

•Legal basis

•Subsidiarity (for non-exclusive competence)

•Proportionality

•Choice of the instrument

3.RESULTS OF EX-POST EVALUATIONS, STAKEHOLDER CONSULTATIONS AND IMPACT ASSESSMENTS

•Regulatory fitness and simplification

•Impact assessment

•Ex-post evaluations/fitness checks of existing legislation

•Stakeholder consultations

•Collection and use of expertise

•Fundamental rights

4. BUDGETARY IMPLICATIONS

The main objectives of this proposal are to streamline the planning, reporting and monitoring obligations and to establish a Governance mechanism. Member States would have to submit integrated plans and reports to the Commission at regular intervals. On the basis of the information provided by the Member States, the Commission should produce the necessary monitoring reports. Officials, temporary agents or external personnel working in the Energy and Climate action policy areas will be allocated for the performance of the tasks of the Commission, within the Commission's existing overall human resources outlook. Regarding the EEA, a phasing in of additional contract agents (up to 3 in 2020) is requested on top of the existing human resources programming for the EEA.

The costs resulting from the implementation of the proposed Regulation by DG ENER and DG CLIMA – which are further set out in the attached legislative financial statement – will be fully accommodated under the current programmed financial envelope of the budget items in question until 2020. In so far as the financial resources needed for the EEA are concerned, those will be additional in comparison to the current financial programming.

5.OTHER ELEMENTS

•Implementation plans and monitoring, evaluation and reporting arrangements

•Explanatory documents (for directives)

•Detailed explanation of the specific provisions of the proposal

Chapter Six of the proposed Regulation sets out the requirements for national and Union inventory systems for GHG emissions, policies, measures and projections. The establishment of such systems is required internationally. They will also support the implementation of National Plans with regard to the decarbonisation dimension.

This Chapter also provides the legal basis for the establishment of Union and national registries in order to take account for the nationally determined contributions and allows for the use of internationally transferred mitigation outcomes under Articles 4(13) and 6 of the Paris Agreement.

Chapter Seven of the proposed Regulation sets out the mechanisms and principles for cooperation and support between Member States and the Union. It also sets out the role of the EEA to support the Commission as appropriate with monitoring and reporting work under this Regulation.

Chapter Eight of the proposed Regulation sets out the necessary provisions for conferral of certain powers to the Commission to adopt delegated acts in precisely defined situations.

Chapter Nine of the proposed Regulation establishes an Energy Union Committee (an examination committee under Regulation (EU) No 182/2011) and sets out provisions on the review of the Regulation in 2026, repeals and amendments of other pieces of EU legislation to ensure coherence, as well as provisions on transitional measures and entry into force.

2016/0375 (COD)

Proposal for a

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

on the Governance of the Energy Union,

amending Directive 94/22/EC, Directive 98/70/EC, Directive 2009/31/EC, Regulation (EC) No 663/2009, Regulation (EC) No 715/2009, Directive 2009/73/EC, Council Directive 2009/119/EC, Directive 2010/31/EU,
Directive 2012/27/EU, Directive 2013/30/EU and Council Directive (EU) 2015/652 and repealing Regulation (EU) No 525/2013

(Text with EEA relevance)

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union, and in particular Article 192(1) and Article 194(2) thereof,

Having regard to the proposal from the European Commission,

After transmission of the draft legislative act to the national parliaments,

[Having regard to the opinion of the European Economic and Social Committee 11 ,]

[Having regard to the opinion of the Committee of the Regions 12 ,]

Acting in accordance with the ordinary legislative procedure,

Whereas:

(1)This Regulation sets out the necessary legislative foundation for a reliable and transparent Governance that ensures the achievement of the objectives and targets of the Energy Union through complementary, coherent and ambitious efforts by the Union and its Member States, while promoting the Union's Better Regulation principles.

(2)The European Energy Union should cover five key dimensions: energy security; the internal energy market; energy efficiency; decarbonisation; and research, innovation and competitiveness.

(3)The goal of a resilient Energy Union with an ambitious climate policy at its core is to give Union consumers, both households and businesses, secure, sustainable, competitive and affordable energy, which requires a fundamental transformation of Europe's energy system. That objective can only be achieved through coordinated action, combining both legislative and non-legislative acts at Union and national level.

(4)The Commission's proposal was developed in parallel to and is adopted together with a series of initiatives in sectorial energy policy, notably with regard to renewable energy, energy efficiency and market design. Those initiatives form a package under the overarching theme of energy efficiency first, the Union’s global leadership in renewables, and a fair deal for energy consumers.

(5)The European Council agreed on 24 October 2014 on the 2030 Framework for Energy and Climate for the Union based on four key targets: at least 40% cut in economy wide greenhouse gas ("GHG") emissions, at least 27% improvement in energy efficiency with a view to a level of 30%, at least 27% for the share of renewable energy consumed in the Union, and at least 15% for electricity interconnection. It specified that the target for renewable energy is binding at Union level and that it will be fulfilled through Member States’ contributions guided by the need to deliver collectively the Union target.

(6)The binding target of at least a 40% domestic reduction in economy-wide greenhouse gas emissions by 2030 compared to 1990 was formally approved as the Intended Nationally Determined Contribution of the Union and its Member States to the Paris Agreement at the Environment Council meeting on 6 March 2015. The Paris Agreement was ratified by the Union on 5 October 2016 13 and entered into force on 4 November 2016. It replaces the approach taken under the 1997 Kyoto Protocol which will not be continued beyond 2020. Therefore the Union’s system for monitoring and reporting emissions and removals should be updated in the light of this.

(7)The European Council also concluded on 24 October 2014 14 that a reliable and transparent governance system, without any unnecessary administrative burden, should be developed to help ensure that the Union meets its energy policy goals, with the necessary flexibility for Member States and fully respecting their freedom to determine their energy mix. It emphasized that such governance system should build on existing building blocks, such as national climate programmes, national plans for renewable energy and energy efficiency as well as the need to streamline and bring together separate planning and reporting strands. It also agreed to step up the role and rights of consumers, transparency and predictability for investors, inter alia by systematic monitoring of key indicators for an affordable, safe, competitive, secure and sustainable energy system and to facilitate coordination of national energy policies and foster regional cooperation between Member States.

(8)The Commission's Energy Union Strategy of 25 February 2015 states the need for an integrated Governance to make sure that energy-related actions at Union, regional, national and local level all contribute to the Energy Union's objectives, thereby broadening the scope of Governance – beyond the 2030 Framework for Climate and Energy – to all five key dimensions of the Energy Union.

(9)In its Communication on the State of the Energy Union of 18 November 2015 15 the Commission further specified that integrated national energy and climate plans, addressing all five key dimensions of the Energy Union, are necessary tools for a more strategic energy and climate policy planning. As part of the State of the Energy Union, the Commission Guidance to Member States on integrated national energy and climate plans provided the basis for Member States to start developing national plans for the period 2021 to 2030 and set out the main pillars of the governance process. The State of the Energy Union also specified that the Governance should be anchored in legislation.

(10)The Conclusions of the Council of 26 November 2015 16 recognised that the Governance of the Energy Union will be an essential tool for the efficient and effective construction of the Energy Union and the achievement of its objectives. They underlined that the governance system should be based on the principles of integration of strategic planning and reporting on the implementation of climate and energy policies and coordination between actors responsible for energy and climate policy, at Union, regional and national level. They also underlined that the Governance should ensure that the agreed energy and climate targets for 2030 are met; and that the Governance would monitor the Union’s collective progress towards the achievement of the policy objectives across the five dimensions of the Energy Union.

(11)The European Parliament's resolution "Towards a European Energy Union" of 15 December 2015 17 called for the Governance framework for the Energy Union to be ambitious, reliable, transparent, democratic and fully inclusive of the European Parliament and to ensure that the 2030 climate and energy targets are achieved.

(12)Therefore, the main objective of the Energy Union Governance should be to enable the achievement of the objectives of the Energy Union and in particular the targets of the 2030 Framework for Climate and Energy. This Regulation is therefore linked to sectorial legislation implementing the 2030 targets for energy and climate. While Member States need flexibility to choose policies that are best-matched to their national energy mix and preferences, that flexibility should be compatible with further market integration, increased competition, the attainment of climate and energy objectives and the gradual shift towards a low-carbon economy.

(13)The transition to a low-carbon economy requires changes in investment behaviour and incentives across the entire policy spectrum. Achieving greenhouse gas emission reductions requires a boost to efficiency and innovation in the European economy and in particular should also lead to improvements of air quality.

(14)As greenhouse gases and air pollutants largely derive from common sources, policy designed to reduce GHGs can have co-benefits for air quality that could offset some or all of the near-term costs of GHG mitigation. As data reported under Directive 2001/81/EC of the European Parliament and the Council 18 represent an important input for the compilation of the GHG inventory and the national plans, the importance of compilation and reporting of consistent data between Directive 2001/81/EC and the GHG inventory should be recognised.

(15)The experience gained in implementing Regulation (EU) No 525/2013 of the European Parliament and the Council 19 indicated the need for synergies and coherence with reporting under other legal instruments, in particular with Directive 2003/87/EC of the European Parliament and the Council 20 , Regulation (EC) No 166/2006 of the European Parliament and the Council 21 , Regulation (EC) No 1099/2008 of the European Parliament and the Council 22 and Regulation (EC) No 517/2014 of the European Parliament and the Council 23 . The use of consistent data to report greenhouse gas emissions is essential to ensuring the quality of emissions reporting.

(16)In line with the Commission's strong commitment to Better Regulation, the Energy Union Governance should result in a significant reduction of administrative burden for the Member States, the Commission and other Union Institutions and it should help to ensure coherence and adequacy of policies and measures at Union and national level with regard to the transformation of the energy system towards a low-carbon economy.

(17)The achievement of the Energy Union objectives should be ensured through a combination of Union initiatives and coherent national policies set out in integrated national energy and climate plans. Sectorial Union legislation in the energy and climate fields sets out planning requirements, which have been useful tools to drive change at the national level. Their introduction at different moments in time has led to overlaps and insufficient consideration of synergies and interactions between policy areas. Current separate planning, reporting and monitoring in the climate and energy fields should therefore as far as possible be streamlined and integrated.

(18)The integrated national energy and climate plans should cover ten-year periods and provide an overview of the current energy system and policy situation. They should set out national objectives for each of the five key dimensions of the Energy Union and corresponding policies and measures to meet those objectives and have an analytical basis. The national plans covering the first period from 2021 to 2030 should pay particular attention to the 2030 targets for greenhouse gas emission reductions, renewable energy, energy efficiency and electricity interconnection. Member States should aim to ensure that the national plans are consistent with and contribute to achieving the Sustainable Development Goals.

(19)A mandatory template for the national plans should be established to ensure that all national plans are sufficiently comprehensive and to facilitate comparison and aggregation of national plans, while at the same time ensuring sufficient flexibility to Member States to set out the details of national plans reflecting national preferences and specificities.

(20)The implementation of policies and measures in the areas of the energy and climate has an impact on the environment. Member States should therefore ensure that the public is given early and effective opportunities to participate in and to be consulted on the preparation of the integrated national energy and climate plans in accordance, where applicable, with the provisions of Directive 2001/42/EC of the European Parliament and of the Council 24 and the United Nations Economic Commission for Europe ("UNECE") Convention on Access to Information, Public Participation in Decision-making and Access to Justice in Environmental Matters of 25 June 1998 (the "Aarhus convention"). Member States should also ensure involvement of social partners in the preparation of the integrated national energy and climate plans.

(21)Regional cooperation is key to ensure an effective achievement of the objectives of the Energy Union. Member States should get the opportunity to comment on other Member States' plans before they are finalised to avoid inconsistencies and potential negative impacts on other Member States and ensure that common objectives are met collectively. Regional cooperation in elaborating and finalising national plans as well as in the subsequent implementation of national plans should be essential to improve effectiveness and efficiency of measures and foster market integration and energy security.

(22)National plans should be stable to ensure transparency and predictability of national policies and measures in order to ensure investor certainty. Updates of national plans should however be foreseen once during the ten-year period covered to give Member States the opportunity to adapt to significant changing circumstances. For the plans covering the period from 2021 to 2030, Member States should be able to update their plans by 1 January 2024. Targets, objectives and contributions should only be modified to reflect an increased overall ambition in particular as regards the 2030 targets for energy and climate. As part of the updates, Member States should make efforts to mitigate any adverse environmental impacts that become apparent as part of the integrated reporting.

(23)Stable long-term low emission strategies are crucial to contribute towards economic transformation, jobs, growth and the achievement of broader sustainable development goals, as well as to move in a fair and cost-effective manner towards the long-term goal set by the Paris Agreement. Furthermore, Parties to the Paris Agreement are invited to communicate, by 2020, their mid-century, long-term low greenhouse gas emission development strategies.

(24)As is the case for planning, sectorial Union legislation in the energy and climate fields sets out reporting requirements, many of which have been useful tools to drive change at the national level, but those requirements have been introduced at different moments in time which has led to overlaps and insufficient consideration of synergies and interactions between policy areas such as GHG mitigation, renewable energy, energy efficiency and market integration. To strike the right balance between the need to ensure a proper follow-up of the implementation of national plans and the need to reduce administrative burden, Member States should establish biennial progress reports on the implementation of the plans and other developments in the energy system. Some reporting however, particularly with regard to reporting requirements in the climate field stemming from the United Nations Framework Convention on Climate Change ("UNFCCC") and Union Regulations, would still be necessary on a yearly basis.

(25)Member States' integrated progress reports should mirror the elements set out in the template for the national plans. A template for the integrated progress reports should be detailed in subsequent implementing act(s) given their technical nature and the fact that the first progress reports are due in 2021. The progress reports should be carried out in order to ensure transparency towards the Union, other Member States and market actors including consumers. They should be comprehensive across the five dimensions of the Energy Union and, for the first period, at the same time put emphasis on areas covered by the targets of the 2030 Climate and Energy Framework.

(26)Under the UNFCCC, the Union and its Member States are required to develop, regularly update, publish and report to the Conference of the Parties national inventories of anthropogenic emissions by sources and removals by sinks of all greenhouse gases using comparable methodologies agreed by the Conference of the Parties. The GHG inventories are key to enabling the tracking of progress with the implementation of the decarbonisation dimension and for assessing compliance with the legislation in the field of climate, in particular Regulation [OP: act number XXX on binding annual greenhouse gas emission reductions by Member States from 2021 to 2030 for a resilient Energy Union and to meet commitments under the Paris Agreement and amending Regulation (EU) No 525/2013 of the European Parliament and the Council on a mechanism for monitoring and reporting greenhouse gas emissions and other information relevant to climate change] 25  ("Regulation [ ] [ESR]") and Regulation [OP: act number XXX on the inclusion of greenhouse gas emissions and removals from land use, land use change and forestry into the 2030 climate and energy framework and amending Regulation (EU) No 525/2013 of the European Parliament and the Council on a mechanism for monitoring and reporting greenhouse gas emissions and other information relevant to climate change] ("Regulation [ ] [LULUCF]") 26 .

(27)Decision 1/CP.16 of the Conference of the Parties to the UNFCCC requires the establishment of national arrangements to estimate anthropogenic emissions by sources and removals by sinks of all greenhouse gases. This Regulation should enable the establishment of those national arrangements.

(28)The experience in the implementation of Regulation (EU) No 525/2013 demonstrated the importance of transparency, accuracy, consistency, completeness and comparability of information. Building on that experience, this Regulation should ensure that Member States report on their policies and measures and projections as a key component of the progress reports. The information in those reports should be essential for demonstrating the timely implementation of commitments under Regulation [ ] [ESR]. Operating and continuously improving systems at Union and Member State level coupled with better guidance on reporting should significantly contribute towards an on-going strengthening of the information necessary in order to track progress in the decarbonisation dimension.

(29)This Regulation should ensure reporting by Member States on adaptation to climate change and the provision of financial, technological and capacity-building support to developing countries, thereby facilitating the implementation of the Union's commitments under the UNFCCC and Paris Agreement. Furthermore, information on national adaptation actions and support is also important in the context of the integrated national energy and climate plans, especially as regards adaptation to those adverse effects of climate change related to the security of the Union's energy supply such as the availability of cooling water for power plants and biomass availability for energy, and information on support relevant to the external dimension of the Energy Union.

(30)In order to limit administrative burden on Member States and the Commission, the latter should establish an online reporting platform to facilitate communication and promote cooperation. That should ensure timely submission of reports and facilitate improved transparency on national reporting. The e-reporting platform should complement, build on and benefit from existing reporting processes, databases and e-tools, such as those of the European Environment Agency, Eurostat, the Joint Research Centre and the lessons learned from the Union's Eco-Management and Audit Scheme.

(31)As concerns data to be provided to the Commission by means of national planning and reporting, information from Member States should not duplicate data and statistics which have already been made available via Eurostat in the context of Regulation (EC) No 223/2009 of the European Parliament and of the Council 27 in the same form as under the planning and reporting obligations of this Regulation and are still available from Eurostat with the same values. Where available and appropriate in terms of timing, reported data and projections provided in the national energy and climate plans should build on and be consistent with Eurostat data and the methodology used for reporting European statistics in accordance with Regulation (EC) No 223/2009.

(32)In view of the collective achievement of the objectives of the Energy Union Strategy, it will be essential for the Commission to assess national plans and, based on progress reports, their implementation. For the first ten-year period, this concerns in particular the achievement of the Union-level 2030 targets for energy and climate and national contributions to those targets. Such assessment should be undertaken on a biennial basis, and on an annual basis only where necessary, and should be consolidated in the Commission's State of the Energy Union reports.

(33)Aviation has impacts on the global climate as a result of the release of CO2 as well as of other emissions, including nitrogen oxides emissions, and mechanisms, such as cirrus cloud enhancement. In the light of the rapidly developing scientific understanding of those impacts, an updated assessment of the non-CO2 impacts of aviation on the global climate is already foreseen in Regulation (EU) No 525/2013. The modelling used in this respect should be adapted to scientific progress. Based on its assessments of such impacts, the Commission could consider relevant policy options for addressing them.

(34)To help ensure coherence between national and Union policies and objectives of the Energy Union, there should be an on-going dialogue between the Commission and the Member States. As appropriate, the Commission should issue recommendations to Member States including on the level of ambition of the draft national plans, on the subsequent implementation of policies and measures of the notified national plans, and on other national policies and measures of relevance for the implementation of the Energy Union. Member States should take utmost account of such recommendations and explain in subsequent progress reports how they have been implemented.

(35)Should the ambition of integrated national energy and climate plans or their updates be insufficient for the collective achievement of the Energy Union objectives and, for the first period, in particular the 2030 targets for renewable energy and energy efficiency, the Commission should take measures at Union level in order to ensure the collective achievement of these objectives and targets (thereby closing any 'ambition gap'). Should progress made by the Union towards these objectives and targets be insufficient for their delivery, the Commission should, in addition to issuing recommendations, take measures at Union level or Member States should take additional measures in order to ensure achievement of these objectives and targets (thereby closing any 'delivery gap'). Such measures should take into account early ambitious contributions made by Member States to the 2030 targets for renewable energy and energy efficiency when sharing the effort for collective target achievement. In the area of renewable energy, such measures can also include financial contributions by Member States to a financing platform managed by the Commission, which would be used to contribute to renewable energy projects across the Union. Member States' national renewable energy targets for 2020 should serve as baseline shares of renewable energy from 2021 onwards. In the area of energy efficiency, additional measures can in particular aim at improving the energy efficiency of products, buildings and transport.

(36)The Union and the Member States should strive to provide the most up-to-date information on their greenhouse gas emissions and removals. This Regulation should enable such estimates to be prepared in the shortest timeframes possible by using statistical and other information, such as, where appropriate, space-based data provided by the Global Monitoring for Environment and Security programme and other satellite systems.

(37)Under Regulation [ ] [ESR], the approach of the annual commitment cycle taken in Decision No 406/2009/EC of the European Parliament and of the Council 28  should continue. That requires a comprehensive review of Member States’ greenhouse gas inventories to enable the assessment of compliance and the application of corrective action, where necessary. A review process at Union level of the greenhouse gas inventories submitted by Member States is necessary to ensure that compliance with Regulation [ ] [ESR] is assessed in a credible, consistent, transparent and timely manner.

(38)Member States and the Commission should ensure close cooperation on all matters relating to the implementation of the Energy Union and this Regulation, with close involvement of the European Parliament. The Commission should as appropriate assist Member States in implementing this Regulation, particularly with regard to the establishment of the national plans and associated capacity building.

(39)Member States should ensure that integrated national energy and climate plans take into consideration the latest country-specific recommendations issued in the context of the European Semester.

(40)The European Environment Agency should assist the Commission, as appropriate and in accordance with its annual work programme, with assessment, monitoring and reporting work.

(41)The power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union (TFEU) should be delegated to the Commission in order to amend the general framework for integrated national energy and climate plans (template), set up a financing platform to which Member States can contribute in case the Union trajectory towards the 2030 Union renewable energy target is not collectively met, take account of changes in the global warming potentials ("GWPs") and internationally agreed inventory guidelines, set substantive requirements for the Union inventory system and set up the registries pursuant to Article 33. It is of particular importance that the Commission carries out appropriate consultations during its preparatory work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Inter-institutional Agreement on Better Law-Making of 13 April 2016. In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council should receive all documents at the same time as Member States' experts, and their experts should systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts. It should also take into account, where necessary, decisions adopted under the UNFCCC and the Paris Agreement.

(42)In order to ensure uniform conditions for the implementation of Articles 15(3), Article 17(4), Article 23(6), Article 31(3) and (4) and Article 32(3) of this Regulation, implementing powers should be conferred on the Commission. Those powers should be exercised in accordance with Regulation (EU) No 182/2011 29 .

(43)The Commission should be assisted in its tasks under this Regulation by an Energy Union Committee to prepare implementing acts. It should replace and take on the assignments of the Climate Change Committee and other committees as appropriate.

(44)The Commission should review the implementation of this Regulation in 2026 and make amending proposals as appropriate to ensure the proper implementation of the Regulation and the achievement of its objectives. The review should take into account evolving circumstances and be informed by the results of the global stocktake of the Paris Agreement, where necessary.

(45)This Regulation should integrate, amend, replace and withdraw certain planning, reporting and monitoring obligations currently contained in sectorial energy and climate Union legislation to ensure a streamlined and integrated approach to the main planning, reporting and monitoring strands. The following acts should therefore be amended accordingly:

–Directive 94/22/EC of the European Parliament and of the Council of 30 May 1994 on the conditions for granting and using authorizations for the prospection, exploration and production of hydrocarbons 30 ;

–Directive 98/70/EC of the European Parliament and of the Council of 13 October 1998 relating to the quality of petrol and diesel fuels and amending Council Directive 93/12/EEC 31 ;

–Directive 2009/31/EC of the European Parliament and of the Council of 23 April 2009 on the geological storage of carbon dioxide and amending Council Directive 85/337/EEC, European Parliament and Council Directives 2000/60/EC, 2001/80/EC, 2004/35/EC, 2006/12/EC, 2008/1/EC and Regulation (EC) No 1013/2006 32 ;

–Regulation (EC) No 663/2009 of the European Parliament and of the Council of 13 July 2009 establishing a programme to aid economic recovery by granting Community financial assistance to projects in the field of energy 33 ;

–Regulation (EC) No 715/2009 of the European Parliament and of the Council of 13 July 2009 on conditions for access to the natural gas transmission networks and repealing Regulation (EC) No 1775/2005 34 ;

–Directive 2009/73/EC of the European Parliament and of the Council of 13 July 2009 concerning common rules for the internal market in natural gas and repealing Directive 2003/55/EC 35 ;

–Council Directive 2009/119/EC of 14 September 2009 imposing an obligation on Member States to maintain minimum stocks of crude oil and/or petroleum products 36 ;

–Directive 2010/31/EU of the European Parliament and of the Council of 19 May 2010 on the energy performance of buildings 37 ;

–Directive 2012/27/EU of the European Parliament and of the Council of 25 October 2012 on energy efficiency, amending Directives 2009/125/EC and 2010/30/EU and repealing Directives 2004/8/EC and 2006/32/EC 38 ;

–Directive 2013/30/EU of the European Parliament and of the Council of 12 June 2013 on safety of offshore oil and gas operations and amending Directive 2004/35/EC 39 ;

–Council Directive (EU) 2015/652 of 20 April 2015 laying down calculation methods and reporting requirements pursuant to Directive 98/70/EC of the European Parliament and of the Council relating to the quality of petrol and diesel fuels 40 .

(46)This Regulation should also integrate in full the provisions of Regulation (EU) No 525/2013. As a consequence, Regulation (EU) No 525/2013 should be repealed as of 1 January 2021. However, in order to ensure that the implementation of Decision No 406/2009/EC continues under Regulation (EU) No 525/2013 and that certain aspects linked to the implementation of the Kyoto Protocol remain covered by legislation, it is necessary that certain provisions remain applicable after this date.

(47)Since the objectives of this Regulation cannot be sufficiently achieved by the Member States alone and can therefore, by reason of the scale and effects of the proposed action, be better achieved at Union level, the Union may adopt measures in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on European Union. In accordance with the principle of proportionality, as set out in that Article, this Regulation does not go beyond what is necessary to achieve those objectives.

HAVE ADOPTED THIS REGULATION:

CHAPTER 1
GENERAL PROVISIONS

Article 1 
Subject matter and scope

1.    This Regulation establishes a Governance mechanism to: 

(a)implement strategies and measures designed to meet the objectives and targets of the Energy Union, and for the first ten-year period from 2021 to 2030 in particular the EU's 2030 targets for energy and climate;

(b)ensure the timeliness, transparency, accuracy, consistency, comparability and completeness of reporting by the Union and its Member States to the UNFCCC and Paris Agreement secretariat.

The governance mechanism shall be based on integrated national energy and climate plans covering ten-year periods starting from 2021 to 2030, corresponding integrated national energy and climate progress reports by the Member States and integrated monitoring arrangements by the European Commission. It shall define a structured, iterative process between the Commission and Member States in view of the finalisation of the national plans and their subsequent implementation, including with regard to regional cooperation, and corresponding Commission action.

2.    This Regulation shall apply to the following five dimensions of the Energy Union: 

(a)energy security,

(b)energy market,

(c)energy efficiency,

(d)decarbonisation and

(e)research, innovation and competitiveness.

Article 2
Definitions

For the purposes of this Regulation, the definitions in [recast of Directive 2009/28/EC as proposed by COM(2016) 767], Directive 2010/31/EU and Directive 2012/27/EU shall apply.

The following definitions shall also apply:

(1)'existing policies and measures' mean implemented and adopted policies and measures;

(2)'implemented policies and measures' mean policies and measures for which one or more of the following applies at the date of submission of the national plan or progress report: directly applicable European legislation or national legislation is in force, one or more voluntary agreements have been established, financial resources have been allocated, human resources have been mobilized;

(3)'adopted policies and measures' mean policies and measures for which an official government decision has been made by the date of submission of the national plan or progress report and there is a clear commitment to proceed with implementation;

(4)'planned policies and measures' are options under discussion and having a realistic chance of being adopted and implemented after the date of submission of the national plan or progress report;

(5)'projections' means forecasts of anthropogenic greenhouse gas emissions by sources and removals by sinks or developments of the energy system including at least quantitative estimates for a sequence of four future years ending with 0 or 5 immediately following the reporting year;

(6)‘projections without measures’ means projections of anthropogenic greenhouse gas emissions by sources and removals by sinks that exclude the effects of all policies and measures which are planned, adopted or implemented after the year chosen as the starting point for the relevant projection;

(7)‘projections with measures’ means projections of anthropogenic greenhouse gas emissions by sources and removals by sinks that encompass the effects, in terms of greenhouse gas emission reductions or developments of the energy system, of policies and measures that have been adopted and implemented;

(8)‘projections with additional measures’ means projections of anthropogenic greenhouse gas emissions by sources and removals by sinks or developments of the energy system that encompass the effects, in terms of greenhouse gas emission reductions, of policies and measures which have been adopted and implemented to mitigate climate change or meet energy objectives, as well as policies and measures which are planned for that purpose;

(9)'the Union’s 2030 targets for energy and climate' means the Union-wide binding target of at least 40% domestic reduction in economy-wide greenhouse gas emissions as compared to 1990 to be achieved by 2030, the Union-level binding target of at least 27% for the share of renewable energy consumed in the Union in 2030, the Union-level target of at least 27% for improving energy efficiency in 2030, to be reviewed by 2020 having in mind an EU level of 30%, and the 15% electricity interconnection target for 2030 or any subsequent targets in this regard agreed by the European Council or Council and Parliament for the year 2030.

(10)'national inventory system’ means a system of institutional, legal and procedural arrangements established within a Member State for estimating anthropogenic emissions by sources and removals by sinks of greenhouse gases, and for reporting and archiving inventory information;

(11)'indicator' means a quantitative or qualitative factor or variable that contributes to better understanding progress in implementing;

(12)'policies and measures' means all instruments which contribute to meeting the objectives of the integrated national energy and climate plans and/or to implement commitments under Article 4(2)(a) and (b) of the UNFCCC, which may include those that do not have the limitation and reduction of greenhouse gas emissions or change in the energy system as a primary objective;

(13)'system for policies and measures and projections' means a system of institutional, legal and procedural arrangements established for reporting policies and measures and projections relating to anthropogenic emissions by sources and removals by sinks of greenhouse gases and to the energy system, inter alia as required by Article 32;

(14)'technical corrections' means adjustments to the national greenhouse gas inventory estimates made in the context of the review carried out pursuant to Article 31 when the submitted inventory data are incomplete or are prepared in a way that is not consistent with relevant international or Union rules or guidelines and that are intended to replace originally submitted estimates;

(15)‘quality assurance’ means a planned system of review procedures to ensure that data quality objectives are met and that the best possible estimates and information are reported to support the effectiveness of the quality control programme and to assist Member States;

(16)‘quality control’ means a system of routine technical activities to measure and control the quality of the information and estimates compiled with the purpose of ensuring data integrity, correctness and completeness, identifying and addressing errors and omissions, documenting and archiving data and other material used, and recording all quality assurance activities;

(17)'key indicators' mean the indicators for the progress made with regard to the five dimensions of the Energy Union as proposed by the Commission;

(18)'SET-Plan' means the Strategic Energy Technology Plan as set out in Commission Communication (2015) 6317.

CHAPTER 2
INTEGRATED NATIONAL ENERGY AND CLIMATE PLANS

Article 3
Integrated national energy and climate plans

1.    By 1 January 2019 and every ten years thereafter, each Member State shall notify to the Commission an integrated national energy and climate plan. The plans shall contain the elements set out in paragraph 2 and Annex I. The first plan shall cover the period from 2021 to 2030. The following plans shall cover the ten-year period immediately following the end of the period covered by the previous plan.

2.    The integrated national energy and climate plans shall consist of the following main sections:

(a)an overview of the process followed for establishing the integrated national energy and climate plan consisting of an executive summary, a description of the consultation and involvement of stakeholders and their results, and of regional cooperation with other Member States in preparing the plan;

(b)a description of the national objectives, targets and contributions for each of the five dimensions of the Energy Union;

(c)a description of the policies and measures foreseen to meet the corresponding objectives, targets and contributions set out under point (b);

(d)a description of the current situation of the five dimensions of the Energy Union including with regard to the energy system and greenhouse gas emissions and removals as well as projections with regard to the objectives referred to in point (b) with already existing (implemented and adopted) policies and measures;

(e)an assessment of the impacts of the planned policies and measures to meet the objectives referred to in point (b);

(f)an annex, drawn up in accordance with the requirements and structure laid down in Annex II to this Regulation, setting out the Member State's methodologies and policy measures for achieving the energy savings requirement in accordance with Article 7 to Directive 2012/27/EU [version as amended in accordance with proposal COM(2016)761] and Annex V thereto.

3.    When preparing the national plans referred to in paragraph 1, Member States shall take into account the interlinkages between the five dimensions of the Energy Union and they shall use consistent data and assumptions across the five dimensions where relevant.    

4.    The Commission is empowered to adopt delegated acts in accordance with Article 36 to amend Annex I in order to adapt it to amendments to the Union Energy and Climate policy framework, energy market developments and new UNFCCC and Paris Agreement requirements.

Article 4
National objectives, targets and contributions for each of the five dimensions of the Energy Union

Member States shall set out in their integrated national energy and climate plan the following main objectives, targets and contributions, as specified in Section A.2. of Annex I:

(a)as regards the dimension "Decarbonisation":

(1)with respect to greenhouse gas emissions and removals and with a view to contributing to the achievement of the economy wide EU greenhouse gas emissions reduction target:

i.the Member State's binding national target for greenhouse gas emissions and the annual binding national limits pursuant to Regulation [ ] [ESR];

ii.the Member State's commitments pursuant to Regulation [ ] [LULUCF];

iii.where applicable, other national objectives and targets consistent with existing long-term low emission strategies;

iv.where applicable, other objectives and targets, including sector targets and adaptation goals;

(2)with respect to renewable energy:

i.with a view to achieving the Union's binding target of at least 27% renewable energy in 2030 as referred to in Article 3 of [recast of Directive 2009/28/EC as proposed by COM(2016) 767], a contribution to this target in terms of the Member State's share of energy from renewable sources in gross final consumption of energy in 2030, with a linear trajectory for that contribution from 2021 onwards;

ii.trajectories for the sectorial share of renewable energy in final energy consumption from 2021 to 2030 in the heating and cooling, electricity, and transport sectors;

iii.trajectories by renewable energy technology that the Member State plans to use to achieve the overall and sectorial trajectories for renewable energy from 2021 to 2030 including total expected gross final energy consumption per technology and sector in Mtoe and total planned installed capacity per technology and sector in MW;

(b)as regards the dimension "Energy Efficiency":

(1)the indicative national energy efficiency contribution to achieving the Union's binding energy efficiency target of 30% in 2030 as referred to in Article 1(1) and Article 3(4) of Directive 2012/27/EU [version as amended in accordance with proposal COM(2016)761], based on either primary or final energy consumption, primary or final energy savings, or energy intensity.

Member States shall express their contribution in terms of absolute level of primary energy consumption and final energy consumption in 2020 and 2030, with a linear trajectory for that contribution from 2021 onwards. They shall explain their underlying methodology and the conversion factors used;

(2)the cumulative amount of energy savings to be achieved over the period 2021-2030 under Article 7 on energy saving obligations of Directive 2012/27/EU [version as amended in accordance with proposal COM(2016)761];

(3)the objectives for the long-term renovation of the national stock of residential and commercial buildings (both public and private);

(4)the total floor area to be renovated or equivalent annual energy savings to be achieved from 2020 to 2030 under Article 5 on the exemplary role of public bodies' buildings of Directive 2012/27/EU;

(5)other national energy efficiency objectives, including long term targets or strategies and sectorial targets in areas such as transport, heating and cooling;

(c)as regards the dimension "Energy Security":

(1)national objectives with regard to increasing the diversification of energy sources and supply from third countries;

(2)    national objectives with regard to reducing energy import dependency from third countries;

(3)national objectives with regard to the readiness to cope with constrained or interrupted supply of an energy source, in coherence with the plans to be established under Regulation [as proposed by COM(2016) 52 concerning measures to safeguard the security of gas supply and repealing Regulation (EU) No 994/2010] as well as under Regulation [as proposed by COM(2016) 862 on risk-preparedness in the electricity sector and repealing Directive 2005/89/EC] including a timeframe for when the objectives should be met;

(4)national objectives with regard to deployment of domestic energy sources (notably renewable energy);

(d)as regards the dimension "Internal Energy Market":

(1)the level of electricity interconnectivity that the Member State aims for in 2030 in consideration of the electricity interconnection target for 2030 of at least 15 %; Member States shall explain the underlying methodology used;

(2)key national objectives for electricity and gas transmission infrastructure that are necessary for the achievement of objectives and targets under any of the five dimensions of the Energy Union Strategy;

(3)national objectives related to other aspects of the internal energy market such as market integration and coupling, including a timeframe for when the objectives should be met;

(4)national objectives with regard to ensuring electricity system adequacy as well as flexibility of the energy system with regard to renewable energy production, including a timeframe for when the objectives should be met;

(e)as regards the dimension "Research, Innovation and Competitiveness":

(1)national objectives and funding targets for public and private research and innovation relating to the Energy Union; if applicable, including a timeframe for when the objectives should be met. Such targets and objectives should be coherent with those set out in the Energy Union Strategy and the SET-Plan;

(2)national 2050 objectives for the deployment of low carbon technologies;

(3)national objectives with regard to competitiveness.

Article 5
Member States' contribution setting process in the area of renewable energy

1.    When setting their contribution for their share of energy from renewable sources in gross final consumption of energy in 2030 and the last year of the period covered for the subsequent national plans, pursuant to Article 4(a)(2)(i), Member States shall take into account the following:

(a)the measures provided for in [recast of Directive 2009/28/EC as proposed by COM(2016) 767];

(b)the measures adopted to reach the energy efficiency target adopted pursuant to Directive 2012/27/EU [version as amended in accordance with proposal COM(2016)761];

(c)other measures to promote renewable energy within Member States and at Union level; and

(d)circumstances affecting renewable energy deployment, such as:

(i) equitable distribution of deployment across the European Union;

(ii)economic potential;

(iii)geographical and natural constraints, including those of non-interconnected areas and regions; and

(iv)the level of power interconnection between Member States.

2.    Member States shall collectively ensure that the sum of their contributions adds up to at least 27% of energy produced from renewable sources in gross final energy consumption at Union level by 2030.

Article 6
Member States' contribution setting process in the area of energy efficiency

1.    When setting their indicative national energy efficiency contribution for 2030 and the last year of the period covered for the subsequent national plans pursuant to Article 4(b)(1), Member States shall ensure that:

(a)the Union’s 2020 energy consumption is no more than 1 483 Mtoe of primary energy and no more than 1 086 Mtoe of final energy, the Union’s 2030 energy consumption is no more than 1 321 Mtoe of primary energy and no more than 987 Mtoe of final energy for the first ten-year period;

(b)the Union’s binding target for 2030 referred to in Articles 1 and 3 of Directive 2012/27/EU [version as amended in accordance with proposal COM(2016)761] is met.

In addition, Member States shall take into account:

(a)the measures provided for in Directive 2012/27/EU [version as amended in accordance with proposal COM(2016)761];

(b)other measures to promote energy efficiency within Member States and at Union level.

2.    When setting their contribution referred to in paragraph 1 Member States may take into account circumstances affecting primary and final energy consumption, such as:

(a)remaining cost-effective energy-saving potential;

(b)evolution and forecast of gross domestic product;

(c)changes of energy imports and exports;

(d)development of all sources of renewable energies, nuclear energy, carbon capture and storage; and

(e)early actions.

Article 7
National policies and measures for each of the five dimensions of the Energy Union

Member States shall describe, in accordance with Annex I, in their integrated national energy and climate plan, the main existing (implemented and adopted) and planned policies and measures to achieve in particular the objectives set out in the national plan, including measures to ensure regional cooperation and appropriate financing at national and regional level.

Article 8
Analytical basis of the integrated national energy and climate plans

1.    Member States shall describe, in accordance with the structure and format specified in Annex I, the current situation for each of the five dimensions of the Energy Union including of the energy system and greenhouse gas emissions and removals at the time of submission of the national plan or on the basis of the latest available information. Member States shall also set out and describe projections for each of the five dimensions of the Energy Union for the first ten-year period at least until 2040 (including for the year 2030) expected to result from existing (implemented and adopted) policies and measures.

2.    Member States shall describe in their integrated national energy and climate plan their assessment, at national and where applicable regional level, of:

(a)the impacts on the development of the energy system and greenhouse gas emissions and removals for the first ten-year period at least until 2040 (including for the year 2030) under the planned policies and measures including a comparison with the projections based on existing (implemented and adopted) policies and measures referred to in paragraph 1;

(b)the macroeconomic, environmental, skills and social impact of the planned policies and measures referred to in Article 7 and further specified in Annex I, for the first ten-year period at least until the year 2030 including a comparison with the projections based on existing (implemented and adopted) policies and measures referred to in paragraph 1;

(c)interactions between existing (implemented and adopted) and planned policies and measures within a policy dimension and between existing (implemented and adopted) and planned policies and measures of different dimensions for the first ten- year period at least until the year 2030. Projections concerning security of supply, infrastructure and market integration shall be linked to robust energy efficiency scenarios.

Article 9
Draft integrated national energy and climate plans

1.    By 1 January 2018 and every ten years thereafter Member States shall prepare and submit to the Commission a draft of the integrated national energy and climate plan referred to in Article 3(1).

2.    The Commission may issue recommendations on the draft plans to Member States in accordance with Article 28. Those recommendations shall in particular set out:

(a)the level of ambition of objectives, targets and contributions in view of collectively achieving the Energy Union objectives and notably the Union's 2030 targets for renewable energy and energy efficiency;

(b)policies and measures relating to Member States' and Union level objectives and other policies and measures of potential cross-border relevance;

(c)interactions between and consistency of existing (implemented and adopted) and planned policies and measures included in the integrated national energy and climate plan within one dimension and among different dimensions of the Energy Union.

3.    Member States shall take utmost account of any recommendations from the Commission when finalising their integrated national energy and climate plan.

Article 10
Public consultation 

Without prejudice to any other Union law requirements, Member States shall ensure that the public is given early and effective opportunities to participate in the preparation of draft plans referred to in Article 9 and attach to the submission of their draft integrated national energy and climate plan to the Commission a summary of the public’s views. In so far as the provisions of Directive 2001/42/EC are applicable, consultations undertaken in accordance with that Directive shall be deemed to satisfy also the obligations to consult the public under this Regulation.

Article 11
Regional cooperation

1.    Member States shall cooperate with each other at regional level to effectively meet the targets, objectives and contributions set out in their integrated national energy and climate plan.

2.    Member States shall, well before submitting their draft integrated national energy and climate plan to the Commission pursuant to Article 9(1), identify opportunities for regional cooperation and consult neighbouring Member States and the other Member States expressing an interest. Member States shall set out in their draft integrated national energy and climate plans the results of such regional consultation, including where applicable how comments have been taken into account.

3.    The Commission shall facilitate cooperation and consultation among the Member States on the draft plans submitted to it under Article 9 in view of their finalisation.

4.    Member States shall take into consideration the comments received from other Member States pursuant to paragraphs 2 and 3 in their final integrated national energy and climate plan and explain how such comments have been taken into account.

5.    For the purposes specified in paragraph 1, Member States shall continue to cooperate at regional level when implementing the policies and measures of their plans.

Article 12
Assessment of the integrated national energy and climate plans

The Commission shall assess the integrated national energy and climate plans and their updates as notified pursuant to Articles 3 and 13. It shall assess in particular whether:

(a)the targets, objectives and contributions are sufficient for the collective achievement of the Energy Union objectives and for the first ten-years period in particular the targets of the Union's 2030 Climate and Energy Framework;

(b)the plans comply with requirements of Articles 3 to 11 and the Commission recommendations issued pursuant to Article 28.

Article 13
Update of the integrated national energy and climate plan

1.    By 1 January 2023, and every 10 years thereafter, Member States shall submit to the Commission a draft update of the latest notified integrated national energy and climate plan referred to in Article 3 or confirm to the Commission that the plan remains valid.

2.    By 1 January 2024, and every 10 years thereafter, Member States shall notify to the Commission an update of the latest notified integrated national energy and climate plan referred to in Article 3, unless they have confirmed that the plan remains valid pursuant to paragraph 1 of this Article.

3.    Member States shall only modify the targets, objectives and contributions set out in the update referred to in paragraph 2 to reflect an increased ambition as compared to the ones set in the latest notified integrated national energy and climate plan.

4.    Member States shall make efforts to mitigate in the updated plan any adverse environmental impacts that become apparent as part of the integrated reporting pursuant to Articles 15 to 22.

5.    Member States shall take into consideration the latest country-specific recommendations issued in the context of the European Semester when preparing the update referred to in paragraph 2.

6.    The procedures laid down in Article 9(2) and Article 11 shall apply to the preparation and assessment of the updated integrated national energy and climate plans.

CHAPTER 3
LONG-TERM LOW EMISSION STRATEGIES

Article 14
Long-term low emission strategies

1.    Member States shall prepare and report to the Commission by 1 January 2020 and every 10 years thereafter their long-term low emission strategies with a 50 years perspective, to contribute to:

(a)fulfilling the Union’s and the Member States’ commitments under the UNFCCC and the Paris Agreement to reduce anthropogenic greenhouse gas emissions and enhance removals by sinks;

(b)fulfilling the objective of holding the increase in the global average temperature to well below 2°C above pre-industrial levels and to pursue efforts to limit the temperature increase to 1.5°C above pre-industrial levels;

(c)achieving long-term greenhouse gas emission reductions and enhancements of removals by sinks in all sectors in line with the Union’s objective, in the context of necessary reductions according to the IPCC by developed countries as a group, to reduce emissions by 80 to 95 % by 2050 compared to 1990 levels in a cost-effective manner.

2.    The long-term low emission strategies shall cover:

(a)total greenhouse gas emissions reductions and enhancements of removals by sinks;

(b)emissions reductions and enhancement of removals in individual sectors including electricity, industry, transport, the buildings sector (residential and tertiary), agriculture and land use, land-use change and forestry (LULUCF);

(c)expected progress on transition to a low greenhouse gas emission economy including greenhouse gas intensity, CO2 intensity of gross domestic product and strategies for related research, development and innovation;

(d)links to other national long-term planning.

3.    The long-term low emission strategies and the integrated national energy and climate plans referred to in Article 3 should be consistent with each other.

4.    The Member States shall make available to the public forthwith their respective long-term low emission strategies and any updates thereof.

CHAPTER 4
REPORTING

Section 1
Biennial progress reports and their follow up

Article 15
Integrated National Energy and Climate Progress Reports

1.    Without prejudice to Article 23, by 15 March 2021, and every two years thereafter, each Member State shall report to the Commission on the status of implementation of the integrated national energy and climate plan by means of integrated national energy and climate progress reports covering all five key dimensions of the Energy Union.

2.    The report referred to in paragraph 1 shall cover the following elements:

(a)information on the progress accomplished towards reaching the targets, objectives and contributions set out in the integrated national energy and climate plan, and towards implementing the policies and measures necessary to meet them;

(b)the information referred to in Articles 18 to 22 and, where appropriate, updates on policies and measures, in accordance with those articles;

(c)policies and measures and projections of anthropogenic greenhouse gas emissions by sources and removals by sinks in accordance with Article 16;

(d)information on national climate change adaptation planning and strategies in accordance with Article 17(1);

(e)copies of biennial reports and, in the applicable years, national communications submitted to the UNFCCC Secretariat;

(f)estimates as appropriate of improved air quality and emission reductions of air pollutants, and other benefits of specific energy efficiency measures;

(g)the annual reports referred to in Article 17(2) and Article 23.

The Union and the Member States shall submit biennial reports in accordance with Decision 2/CP.17 of the Conference of the Parties to the UNFCCC, and national communications in accordance with Article 12 of the UNFCCC to the UNFCCC Secretariat.

3.    The Commission shall adopt implementing acts to set out the structure, format, technical details and process for the information referred to in paragraphs 1 and 2. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 37(3).

4.    The frequency and scale of the information and updates referred to in paragraph 2(b) shall be balanced against the need to ensure sufficient certainty for investors.

5.    Where the Commission has issued recommendations pursuant to Article 27(2) or (3), the Member State concerned shall include in its report referred to in paragraph 1 of this Article information on the policies and measures adopted, or intended to be adopted and implemented, to address those recommendations. Such information shall include a detailed timetable for implementation.

Article 16
Integrated reporting on GHG policies and measures and on projections

1.    By 15 March 2021, and every two years thereafter, Member States shall report to the Commission information on:

(a)their national policies and measures as set out in Annex IV, and

(b)their national projections of anthropogenic greenhouse gas emissions by sources and removals by sinks, organised by gas or group of gases (Hydrofluorocarbons and Perfluorocarbons) listed in Part 2 of Annex III. National projections shall take into consideration any policies and measures adopted at Union level and shall include the information set out in Annex V.

2.    Member States shall report the most up-to-date projections available. Where a Member State does not submit complete projection estimates by 15 March every second year, and the Commission has established that gaps in the estimates cannot be filled by that Member State once identified through the Commission’s quality assurance or quality control procedures, the Commission may prepare estimates as required to compile Union projections, in consultation with the Member State concerned.

3.    A Member State shall communicate to the Commission any substantial changes to the information reported pursuant to paragraph 1 during the first year of the reporting period, by 15 March of the year following the previous report.

4.    Member States shall make available to the public, in electronic form, their national projections pursuant to paragraph 1 and any relevant assessment of the costs and effects of national policies and measures on the implementation of Union policies relevant for limiting GHG emissions along with any relevant underpinning technical reports. Those projections and assessments should include descriptions of the models and methodological approaches used, definitions and underlying assumptions.

Article 17
Integrated reporting on national adaptation actions, financial and technology support provided to developing countries, auctioning revenue

1.    By 15 March 2021, and every two years thereafter, Member States shall report to the Commission information on their national climate change adaptation planning and strategies, outlining their implemented or planned actions to facilitate adaptation to climate change, including the information specified in Part 1 of Annex VI.

2.    By 15 March 2021 and every year thereafter (year X), Member States shall report to the Commission information on:

(a)support to developing countries, including the information specified in Part 2 of Annex VI;

(b)the use of revenues generated by the Member State by auctioning allowances pursuant to Article 10(1) and Article 3d(1) or (2) of Directive 2003/87/EC including the information specified in Part 3 of Annex VI.

3.    Member States shall make available to the public the reports submitted to the Commission pursuant to this Article.

4.    The Commission shall adopt implementing acts to set out the structure, format and submission processes for Member States’ reporting of information pursuant to this Article. Those implementing acts shall be adopted in accordance with the procedure referred to in Article 37(3). 

Article 18
Integrated reporting on renewable energy

Member States shall include in the integrated national energy and climate progress reports the information:

(a)on the implementation of the following trajectories and objectives:

(1)national trajectory for the overall share of renewable energy in gross final energy consumption from 2021 to 2030;

(2)national trajectories for the sectorial share of renewable energy in final energy consumption from 2021 to 2030 in the electricity, heating and cooling and transport sector;

(3)trajectories by renewable energy technology to use to achieve the overall and sectorial trajectories for renewable energy from 2021 to 2030 including total expected gross final energy consumption per technology and sector in Mtoe and total planned installed capacity per technology and sector in MW;

(4)trajectories on bioenergy demand, disaggregated between heat, electricity and transport, and on biomass supply, by feedstock and origin (distinguishing between domestic production and imports). For forest biomass, an assessment of its source and impact on the LULUCF sink;

(5)if applicable, other national trajectories and objectives including long-term and sectorial ones (such as share of biofuels, share of advanced biofuels, share of biofuel produced from main crops produced on agricultural land, share of electricity produced from biomass without the utilisation of heat, share of renewable energy in district heating, renewable energy use in buildings, renewable energy produced by cities, energy communities and self-consumers);

(b)on the implementation of the following policies and measures:

(1)implemented, adopted and planned policies and measures to achieve the national contribution to the binding Union-level 2030 target for renewable energy as indicated in Article 4(a)(2)(i), including sector- and technology-specific measures, with a specific review of the implementation of measures laid down in Articles 23, 24 and 25 of [recast of Directive 2009/28/EC as proposed by COM(2016) 767];

(2)specific measures for regional cooperation;

(3)without prejudice to Articles 107 and 108 TFEU, specific measures on financial support, including Union support and the use of Union funds, for the promotion of the use of energy from renewable sources in electricity, heating and cooling, and transport;

(4)specific measures to fulfil the requirements of Articles 15, 16, 17, 18, 21 and 22 of [recast of Directive 2009/28/EC as proposed by COM(2016) 767];

(5)measures promoting the use of energy from biomass, especially for new biomass mobilisation taking into account biomass availability (both the domestic potential and the imports from third countries) and other biomass uses (agriculture and forest-based sectors), as well as measures for the sustainability of biomass produced and used;

(c)as set out in Part 1 of Annex VII.

Article 19
Integrated reporting on energy efficiency

Member States shall include in the integrated national energy and climate progress reports the information:

(a)on the implementation of the following national trajectories, objectives and targets:

(1)the trajectory for primary and final energy consumption from 2020 to 2030 as the national energy savings contribution to achieving the Union-level 2030 target including underlying methodology;

(2)objectives for the long-term renovation of the national stock of both public and private residential and commercial buildings;

(3)if applicable, an update of other national objectives set out in the national plan;

(b)on the implementation of the following policies and measures:

(1)implemented, adopted and planned policies, measures and programmes to achieve the indicative national energy efficiency contribution for 2030 as well as other objectives presented in Article 6, including planned measures and instruments (also of financial nature) to promote the energy performance of buildings, measures to utilise energy efficiency potentials of gas and electricity infrastructure and other measures to promote energy efficiency;

(2)if applicable, market-based instruments that incentivise energy efficiency improvements, including but not limited to energy taxes, levies and allowances;

(3)national energy efficiency obligation scheme and alternative measures pursuant to Article 7a and 7b of Directive 2012/27/EU [version as amended in accordance with proposal COM(2016) 761] in accordance with Annex II to this Regulation;

(4)long-term strategy for the renovation of the national stock of both public and private residential and commercial buildings, including policies and measures to stimulate cost-effective deep and staged deep renovation;

(5)policy and measures to promote energy services in the public sector and measures to remove regulatory and non-regulatory barriers that impede the uptake of energy performance contracting and other energy efficiency service models;

(6)regional cooperation in the area of energy efficiency, if applicable;

(7)without prejudice to Articles 107 and 108 TFEU, financing measures, including Union support and the use of Union funds, in the area of energy efficiency at national level, if applicable;

(c)as set out in Part 2 of Annex VII.

Article 20
Integrated reporting on energy security

Member States shall include in the integrated national energy and climate progress reports the information on the implementation of:

(a)national objectives for the diversification of energy sources and supply countries, storage, demand response;

(b)national objectives with regard to reducing energy import dependency from third countries;

(c)national objectives for the development of the ability to cope with constrained or interrupted supply of an energy source, including gas and electricity;

(d)national objectives for the deployment of domestic energy sources, notably renewable energy;

(e)implemented, adopted and planned policies and measures to achieve the objectives referred to in points (a) to (d);

(f)regional cooperation in implementing the objectives and policies referred to in points (a) to (d);

(g)without prejudice to Articles 107 and 108 TFEU, financing measures, including Union support and the use of Union funds, in this area at national level, if applicable;

Article 21
Integrated reporting on the internal energy market

1.    Member States shall include in the integrated national energy and climate progress reports information on the implementation of the following objectives and measures:

(a)the level of electricity interconnectivity that the Member State aims for in 2030 in relation to the 15% target on electricity interconnection;

(b)key national objectives for electricity and gas transmission infrastructure that are necessary for the achievement of objectives and targets under any of the five key dimensions of the Energy Union;

(c)if applicable, main infrastructure projects envisaged other than Projects of Common Interest;

(d)national objectives related to other aspects of the internal energy market such as market integration and coupling, if applicable;

(e)national objectives with regards to energy poverty, including the number of households in energy poverty;

(f)national objectives with regard to ensuring electricity system adequacy, if applicable;

(g)implemented, adopted and planned policies and measures to achieve the objectives referred to in points (a) to (f);

(h)regional cooperation in implementing the objectives and policies referred to in points (a) to (g);

(i)without prejudice to Articles 107 and 108 TFEU, financing measures, including Union support and the use of Union funds, in the area of the internal energy market at national level, if applicable;

(j)measures to increase the flexibility of the energy system with regard to renewable energy production, including the roll-out of intraday market coupling and cross-border balancing markets.

2.    The information provided by Member States under paragraph 1 shall be coherent with and as appropriate be based on the report by the national regulators referred to in Article 59(1)(h) of the [recast of Directive 2009/72/EC as proposed by COM(2016) 864] and Article 41(1)(e) of Directive 2009/73/EC.

Article 22
Integrated reporting on research, innovation and competitiveness

Member States shall include in the integrated national energy and climate progress reports referred to in Article 15 the information on the implementation of the following objectives and measures:

(a)national objectives and policies translating to a national context the SET Plan objectives and policies;

(b)national objectives for total (public and private) spending in research and innovation relating to clean energy technologies as well as for technology cost and performance development;

(c)if appropriate, national objectives including long term targets for 2050 for the deployment of technologies for decarbonising energy- and carbon-intensive industrial sectors and, if applicable, for related carbon transport, use, and storage infrastructure;

(d)national objectives to phase out energy subsidies;

(e)implemented, adopted and planned policies and measures to achieve the objectives referred to in points (b) and (c);

(f)cooperation with other Member States in implementing the objectives and policies referred to in points (b) to (d), including coordination of policies and measures through the SET Plan, such as alignment of research programmes and common programmes;

(g)financing measures, including Union support and the use of Union funds, in this area at national level, if applicable.

Section 2
Annual Reporting

Article 23
Annual Reporting

1.    By 15 March 2021, and every year thereafter (year X), Member States shall report to the Commission:

(a)their approximated greenhouse gas inventories for the year X-1;

(b)the information referred to in Article 6(2) of Directive 2009/119/EC;

(c)the information referred to in Annex IX, point 3, to Directive 2013/30/EU, in accordance with Article 25 of that directive.

For the purposes of point (a), the Commission shall, on the basis of the Member States’ approximated greenhouse gas inventories or, if a Member State has not communicated its approximated inventories by that date, on the basis of its own estimates, annually compile a Union approximated greenhouse gas inventory. The Commission shall make that information available to the public by 30 September every year.

2.    As of 2023, Member States shall determine and report to the Commission final greenhouse gas inventory data by 15 March each year (X) and preliminary data by 15 January each year including the greenhouse gases and the inventory information listed in Annex III. The report on the final greenhouse gas inventory data shall also include a complete and up-to-date national inventory report.

3.    Member States shall submit to the UNFCCC Secretariat national inventories containing the information submitted to the Commission on the final greenhouse gas inventory data in accordance with paragraph 2 of this Article by 15 April each year. The Commission shall, in cooperation with the Member States, annually compile a Union greenhouse gas inventory and prepare a Union greenhouse gas inventory report and shall submit them to the UNFCCC Secretariat by 15 April each year.

4.    Member States shall report to the Commission the preliminary and the final national inventory data, by 15 January and 15 March respectively in the years 2027 and 2032, prepared for their LULUCF accounts for the purpose of the compliance reports in accordance with Article 12 of Regulation [ ] [LULUCF].

5.    The Commission is empowered to adopt delegated acts in accordance with Article 36 to:

(a)amend Part 2 of Annex III by adding or deleting substances in the list of greenhouse gases;

(b)supplement this Regulation by adopting values for global warming potentials and specifying the inventory guidelines applicable in accordance with relevant decisions adopted by the bodies of the UNFCCC or Paris Agreement.

6.    The Commission shall adopt implementing acts to set out the structure, technical details, format and processes for the Member States’ submission of approximated greenhouse gas inventories pursuant to paragraph 1, greenhouse gas inventories pursuant to paragraph 2 and accounted greenhouse gas emissions and removals in accordance with Articles 5 and 12 of Regulation [ ] [LULUCF]. When proposing such implementing acts the Commission shall take into account the UNFCCC or Paris Agreement timetables for the monitoring and reporting of that information and the relevant decisions adopted by the bodies of the UNFCCC or Paris Agreement in order to ensure compliance by the Union with its reporting obligations as a Party to the UNFCCC and the Paris Agreement. Those implementing acts shall also specify the timescales for cooperation and coordination between the Commission and the Member States in preparing the Union greenhouse gas inventory report. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 37(3).

SECTION 3
Reporting Platform

Article 24
E-reporting platform

1.    The Commission shall establish an online reporting platform to facilitate communication between the Commission and Member States and promote cooperation among Member States.

2.    Member States shall use the online platform for the purposes of submitting to the Commission the reports referred to in this Chapter once the platform becomes operational.

CHAPTER 5
AGGREGATE ASSESSMENT OF PROGRESS AND POLICY RESPONSE TO ENSURE UNION TARGETS ACHIEVEMENT –– COMMISSION MONITORING

Article 25
Assessment of progress

1.    By 31 October 2021 and every second year thereafter, the Commission shall assess, in particular on the basis of the integrated national energy and climate progress reports, of other information reported under this Regulation, of the indicators and of European statistics where available:

(a)the progress made at Union level towards meeting the objectives of the Energy Union, including for the first ten-year period the Union's 2030 targets for energy and climate, notably in view of avoiding any gaps to the Union's 2030 targets for renewable energy and energy efficiency;

(b)the progress made by each Member State towards meeting its targets, objectives and contributions and implementing the policies and measures set out in its integrated national energy and climate plan;

(c)the overall impact of aviation on the global climate including through non-CO2 emissions or effects, based on the emission data provided by Member States pursuant to Article 23, and improve that assessment by reference to scientific advancements and air traffic data, as appropriate.

2.    In the area of renewable energy, as part of its assessment referred to in paragraph 1, the Commission shall assess the progress made in the share of energy from renewable sources in the Union’s gross final consumption on the basis of a linear trajectory starting from 20% in 2020 and reaching at least 27% in 2030 as referred to in Article 4(a)(2)(i).

3.    In the area of energy efficiency, as part of its assessment referred to in paragraph 1, the Commission shall assess progress towards collectively achieving a maximum energy consumption at Union level of 1 321 Mtoe of primary energy consumption and 987 Mtoe of final energy consumption in 2030 as referred to in Article 6(1)(a).

In carrying out its assessment, the Commission shall take the following steps:

(a)consider whether the Union's milestone of no more than 1483 Mtoe of primary energy and no more than 1086 Mtoe of final energy in 2020 is achieved;

(b)assess whether Member States' progress indicates that the Union as a whole is on track towards the level of energy consumption in 2030 as referred to in the first subparagraph, taking into account the assessment of information provided by Member States in their integrated national energy and climate progress reports;

(c)use results from modelling exercises in relation to future trends in energy consumption at Union level and national level and use other complementary analysis.

4.    By 31 October 2021 and every year thereafter, the Commission shall assess, in particular on the basis of the information reported pursuant to this Regulation, whether the Union and its Member States have made sufficient progress towards meeting the following points:

(a)commitments under Article 4 of the UNFCCC and Article 3 of the Paris Agreement as set out in decisions adopted by the Conference of the Parties to the UNFCCC, or by the Conference of the Parties to the UNFCCC serving as the meeting of the Parties to the Paris Agreement;

(b)obligations set out in Article 4 of Regulation [ ] [ESR] and Article 4 of Regulation [ ] [LULUCF];

(c)the objectives set in the integrated national energy and climate plan in view of achieving the Energy Union objectives and for the first ten-year period in view of fulfilling the 2030 targets for energy and climate.

5.    By 31 October 2019 and every four years thereafter, the Commission shall assess the implementation of Directive 2009/31/EC.

6.    In its assessment the Commission should take into consideration the latest country-specific recommendations issued in the context of the European Semester.

7.    The Commission shall report on its assessment according to this Article as part of the State of the Energy Union report referred to in Article 29.

Article 26

Follow-up in case of inconsistencies with overarching Energy Union objectives and targets under the Effort Sharing Regulation

1.    Based on the assessment pursuant to Article 25, the Commission shall issue recommendations to a Member State pursuant to Article 28 if policy developments in that Member State show inconsistencies with the overarching objectives of the Energy Union.

2.    The Commission may issue opinions on the action plans submitted by Member States according to Article 8(1) of Regulation [ ] [ESR].

Article 27
Response to insufficient ambition of integrated national energy and climate plans and insufficient progress towards the Union's energy and climate targets and objectives 

1.    If, on the basis of its assessment of the integrated national energy and climate plans and their updates pursuant to Article 12, the Commission concludes that the targets, objectives and contributions of the national plans or their updates are insufficient for the collective achievement of the Energy Union objectives and, in particular, for the first ten-years period, for the Union's 2030 targets for renewable energy and energy efficiency, it shall take measures at Union level in order to ensure the collective achievement of those objectives and targets. With regard to renewable energy, such measures shall take into consideration the level of ambition of contributions to the Union's 2030 target by Member States set out in the national plans and their updates.

2.    If, on the basis of its assessment pursuant to Article 25(1)(b), the Commission concludes that insufficient progress is made by a Member State towards meeting the targets, objectives and contributions or implementing the policies and measures set out in its integrated national climate and energy plan, it shall issue recommendations to the Member State concerned pursuant to Article 28. In issuing such recommendations, the Commission shall take into consideration ambitious early efforts by Member States to contribute to the Union's 2030 target for renewable energy.

3.    If, on the basis of its aggregate assessment of Member States' integrated national energy and climate progress reports pursuant to Article 25(1)(a), and supported by other information sources, as appropriate, the Commission concludes that the Union is at risk of not meeting the objectives of the Energy Union and, in particular, for the first ten-years period, the targets of the Union's 2030 Framework for Climate and Energy, it may issue recommendations to all Member States pursuant to Article 28 to mitigate such risk. The Commission shall, as appropriate, take measures at Union level in addition to the recommendations in order to ensure, in particular, the achievement of the Union's 2030 targets for renewable energy and energy efficiency. With regard to renewable energy, such measures shall take into consideration ambitious early efforts by Member States to contribute to the Union's 2030 target.

4.    If, in the area of renewable energy, without prejudice to the measures at Union level set out in paragraph 3, the Commission concludes, based on its assessment pursuant to Article 25(1) and (2) in the year 2023, that the linear Union trajectory referred to in Article 25(2) is not collectively met, Member States shall ensure by the year 2024 that any emerging gap is covered by additional measures, such as:

(a)adjusting the share of renewable energy in the heating and cooling sector set out in Article 23(1) of [recast of Directive 2009/28/EC as proposed by COM(2016) 767];

(b)adjusting the share of renewable energy in the transport sector set out in Article 25(1) of [recast of Directive 2009/28/EC as proposed by COM(2016) 767];

(c)making a financial contribution to a financing platform set up at Union level, contributing to renewable energy projects and managed directly or indirectly by the Commission;

(d)other measures to increase deployment of renewable energy.

Such measures shall take into account the level of ambition of early contributions to the Union's 2030 target for renewable energy by the Member State concerned.

If a Member State does not maintain the baseline share of energy from renewable sources in its gross final consumption of energy set out in Article 3(3) of [recast of Directive 2009/28/EC as proposed by COM(2016) 767] from 2021 onwards, the Member State concerned shall ensure that any gap to the baseline share is covered by making a financial contribution to the financing platform referred to in point (c) of the first subparagraph. For the purposes of this subparagraph and point (c) of the first subparagraph, Member States may use their revenues from annual emission allowances under Directive 2003/87/EC.

The Commission is empowered to adopt delegated acts in accordance with Article 36 to set out any necessary provisions for the establishment and functioning of the financing platform referred to in point (c).

5.    If, in the area of energy efficiency, without prejudice to other measures at Union level pursuant to paragraph 3, the Commission concludes, based on its assessment pursuant to Article 25(1) and (3), in the year 2023 that progress towards collectively achieving the Union’s energy efficiency target mentioned in the first subparagraph of Article 25(3) is insufficient, it shall take measures by the year 2024 in addition to those set out in Directive 2010/31/EU [version as amended in accordance with proposal COM(2016) 765] and Directive 2012/27/EU [version as amended in accordance with proposal COM(2016) 761] to ensure that the Union's binding 2030 energy efficiency targets are met. Such additional measures may in particular improve the energy efficiency of:

(a)products, pursuant to Directive 2010/30/EU and Directive 2009/125/EC;

(b)buildings, pursuant to Directive 2010/31/EU [version as amended in accordance with COM(2016) 765] and Directive 2012/27/EU [version as amended in accordance with COM(2016) 761];

(c)transport.

Article 28
Commission recommendations to Member States

1.    The Commission shall as appropriate issue recommendations to Member States to ensure the achievement of the objectives of the Energy Union.

2.    Where reference in this Regulation is made to this Article the following principles shall apply:

(a)the Member State concerned shall take utmost account of the recommendation in a spirit of solidarity between Member States and the Union and between Member States;

(b)the Member State shall set out, in its integrated national energy and climate progress report made in the year following the year the recommendation was issued, how it has taken utmost account of the recommendation and how it has implemented or intends to implement it. It shall provide justifications where it deviates from it;

(c)the recommendations should be complementary to the latest country-specific recommendations issued in the context of the European Semester.

Article 29
State of the Energy Union report

1.    By 31 October every year, the Commission shall submit to the European Parliament and to the Council a State of the Energy Union report.

2.    The State of the Energy Union report shall include, inter alia, the following elements:

(a)the assessment carried out pursuant to Article 25;

(b)where appropriate, recommendations pursuant to Article 28;

(c)functioning of the carbon market referred to in Article 10(5) of Directive 2003/87/EC, including information on the application of Directive 2003/87/EC referred to in Article 21(2) of the same Directive;

(d)biennially, a report on Union bioenergy sustainability, containing the information specified in Annex VIII;

(e)biennially, a report on voluntary schemes in respect of which the Commission has adopted a decision according to Article 27(4) of [recast of Directive 2009/28/EC as proposed by COM(2016) 767], containing the information specified in Annex IX to this Regulation;

(f)an overall progress report on the application of [recast of Directive 2009/72/EC as proposed by COM(2016) 864] pursuant to Article 69 of that Directive;

(g)an overall progress report on the application of Directive 2009/73/EC pursuant to Article 52 of that Directive;

(h)an overall progress report on energy efficiency obligation schemes as referred to in Article 7a of Directive 2012/27/EU [version as amended in accordance with COM(2016) 761];

(i)an overall progress report on Member States' progress in creating a complete and operational energy market;

(j)actual fuel quality in the different Member States and geographical coverage of fuels with a maximum sulphur content of 10 mg/kg, aiming to provide an overview of the fuels quality data in the different Member States as reported pursuant to Directive 98/70/EC;

(k)other issues of relevance to the implementation of the Energy Union, including public and private support.

CHAPTER 6
NATIONAL AND UNION SYSTEMS ON GREENHOUSE GAS EMISSIONS AND REMOVALS BY SINKS

Article 30
National and Union inventory systems

1.    By 1 January 2021, Member States shall establish, operate and seek to continuously improve national inventory systems to estimate anthropogenic emissions by sources and removals by sinks of greenhouse gases listed in Part 2 of Annex III to this Regulation and to ensure the timeliness, transparency, accuracy, consistency, comparability and completeness of their greenhouse gas inventories.

2.    Member States shall ensure that their competent inventory authorities have access to the information specified in Annex X to this Regulation, make use of reporting systems established pursuant to Article 20 of Regulation (EU) No 517/2014 to improve the estimate of fluorinated gases in the national greenhouse gas inventories and are able to undertake the annual consistency checks referred to in points (i) and (j) of Part 1 of Annex III to this Regulation.

3.    A Union inventory system to ensure the timeliness, transparency, accuracy, consistency, comparability and completeness of national inventories with regard to the Union greenhouse gas inventory is hereby established. The Commission shall manage, maintain and seek to continuously improve that system which shall include the setting of a quality assurance and quality control programme, setting quality objectives and drafting an inventory quality assurance and quality control plan, procedures for completing emission estimates to compile the Union inventory pursuant to paragraph 5 of this Article and the reviews referred to in Article 31.

4.    The Commission shall perform an initial check of the accuracy of the preliminary greenhouse gas inventory data to be submitted by Member States pursuant to Article 23(2). It shall send the results of that check to Member States within six weeks of the submission deadline. Member States shall respond to any relevant questions raised by the initial check by 15 March, together with the final inventory submission for the year X-2.

5.    Where a Member State does not submit the inventory data required to compile the Union inventory by 15 March, the Commission may prepare estimates to complete the data submitted by the Member State, in consultation and close cooperation with the Member State concerned. The Commission shall use, for that purpose, the guidelines applicable for preparing the national greenhouse gas inventories.

6.    The Commission is empowered to adopt delegated acts in accordance with Article 36 in order to set out rules on the content, structure, format and submission process of the information relating to national inventory systems and requirements on the establishment, operation and functioning of national and Union inventory systems. In the preparation of such acts, the Commission shall take into account any relevant decisions adopted by the bodies of the UNFCCC or of the Paris Agreement.

Article 31
Inventory review

1.    In 2027 and 2032, the Commission shall carry out a comprehensive review of the national inventory data submitted by Member States pursuant to Article 23(3) of this Regulation with a view to monitoring Member States’ greenhouse gas emission reductions or limitations pursuant to Articles 4, 9 and 10 of Regulation [ ] [ESR] and their reduction of emissions and enhancement of removals by sinks pursuant to Articles 4 and 12 of Regulation [ ] [LULUCF] and any other greenhouse gas emission reduction or limitation targets set out in Union legislation. Member States shall participate fully in that process.

2.    The comprehensive review referred to in paragraph 1 shall include:

(a)checks to verify the transparency, accuracy, consistency, comparability and completeness of information submitted;

(b)checks to identify cases where inventory data is prepared in a manner which is inconsistent with UNFCCC guidance documentation or Union rules;

(c)checks to identify cases where LULUCF accounting is carried out in a manner which is inconsistent with UNFCCC guidance documentation or Union rules, and

(d)where appropriate, calculating the resulting technical corrections necessary, in consultation with the Member States.

3.    The Commission shall adopt implementing acts to determine the timing and the procedure for carrying out the comprehensive review including the tasks set out in paragraph 2 of this Article and ensuring due consultation of the Member States with regard to the conclusions of the reviews. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 37(3).

4.    The Commission shall, by means of an implementing act, determine the total sum of emissions for the relevant years arising from the corrected inventory data for each Member State upon completion of the review split between emissions data relevant for Article 9 of Regulation [ ] [ESR] and emission data referred to in Annex III part 1 (c) to this Regulation and also determine the total sum of emissions and removals relevant for Article 4 of Regulation [ ] [LULUCF].

5.    The data for each Member State as recorded in the registries set up pursuant to Article 13 of Regulation [ ] [LULUCF] one month following the date of publication of an implementing act adopted pursuant to paragraph 4 of this Article, shall be used for the compliance check with Article 4 of Regulation [ ] [LULUCF] including changes to such data arising as a result of that Member State making use of the flexibilities pursuant to Article 11 of Regulation [ ] [ LULUCF].

6.    The data for each Member State as recorded in the registries set up pursuant to Article 11 of Regulation [ ] [ESR] one month following the compliance check date with Regulation [ ] [LULUCF] referred to in paragraph 5 of this Article, shall be used for the compliance check pursuant to Article 9 of Regulation [ ] [ESR] for the years 2021 and 2026. The compliance check pursuant to Article 9 of Regulation [ ] [ESR] for each of the years 2022 to 2025 and 2027 to 2030 shall be performed at a date falling one month following the date of the compliance check for the previous year. This check shall include changes to such data arising as a result of that Member State making use of the flexibilities pursuant to Articles 5, 6 and 7 of Regulation [ ] [ESR].

Article 32
National and Union systems for policies and measures and projections

1.    By 1 January 2021, Member States and the Commission shall operate and seek to continuously improve national and Union systems respectively, for reporting on policies and measures and for reporting on projections of anthropogenic greenhouse gas emissions by sources and removals by sinks. Those systems shall include the relevant institutional, legal and procedural arrangements established within a Member State and the Union for evaluating policy and making projections of anthropogenic greenhouse gas emissions by sources and removals by sinks.

2.    Member States and the Commission respectively shall aim to ensure the timeliness, transparency, accuracy, consistency, comparability and completeness of the information reported on policies and measures and projections of anthropogenic greenhouse gas emissions by sources and removals by sinks, as referred to in Article 16, including the use and application of data, methods and models, and the implementation of quality assurance and quality control activities and sensitivity analysis.

3.    The Commission shall adopt implementing acts to set out the structure, format and submission process of information on national and Union systems for policies and measures and projections pursuant to paragraphs 1 and 2 of this Article and Article 16. When proposing such acts, the Commission shall take into account the relevant decisions adopted by the bodies of the UNFCCC or the Paris Agreement, including internationally agreed reporting requirements as well as timetables for monitoring and reporting of that information. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 37(3).

Article 33
Establishment and operation of registries

1.    The Union and the Member States shall set up and maintain registries to accurately account for nationally determined contribution pursuant to Article 4(13) of the Paris Agreement and for internationally transferred mitigation outcomes pursuant to Article 6 of that agreement.

2.    The Union and the Member States may maintain their registries in a consolidated system, together with one or more other Member States.

3.    The data in the registries referred to in paragraph 1 of this Article shall be made available to the central administrator designated pursuant to Article 20 of Directive 2003/87/EC.

4.    The Commission is empowered to adopt delegated acts in accordance with Article 36 in order to set up the registries referred to in paragraph 1 of this Article and in order to give effect, by means of the registries of the Union and of the Member States, to the necessary technical implementation of relevant decisions of the UNFCCC or Paris Agreement bodies, in accordance with paragraph 1 of this Article. 

CHAPTER 7
COOPERATION AND SUPPORT

Article 34
Cooperation between the Member States and the Union

1.    The Member States shall cooperate and coordinate fully with each other and with the Union in relation to obligations under this Regulation, in particular concerning:

(a)the process for preparing, adopting, notifying and assessing the integrated national energy and climate plans pursuant to Articles 9 to 12;

(b)the process for preparing, adopting, notifying and assessing the integrated national energy and climate progress report pursuant to Article 15 and annual reporting pursuant to Article 23;

(c)the process related to the Commission recommendations and addressing those recommendations pursuant to Article 9(2) and (3), Article 15(5), Article 26(1) and Article 27(2) and (3);

(d)compiling the Union greenhouse gas inventory and preparing the Union greenhouse gas inventory report, pursuant to Article 23(3);

(e)preparing the Union national communication pursuant to Article 12 of the UNFCCC and the Union biennial report pursuant to Decision 2/CP.17 or subsequent relevant decisions adopted by the bodies of the UNFCCC;

(f)review and compliance procedures under the UNFCCC and the Paris Agreement in accordance with any applicable decision under the UNFCCC as well as the Union’s procedure to review Member States greenhouse gas inventories referred to in Article 31;

(g)any adjustments following the review process referred to in Article 31 or other changes to inventories and inventory reports submitted, or to be submitted, to the UNFCCC Secretariat;

(h)compiling the Union approximated greenhouse gas inventory, pursuant to Article 23(1)(a) and the last subparagraph of Article 23(1).

2.    The Commission may provide technical support to the Member States in relation to obligations under this Regulation upon request from a Member State.

Article 35
Role of the European Environment Agency

The European Environment Agency shall assist the Commission in its work as regards the decarbonisation and energy efficiency dimensions to comply with Articles 14, 15, 16, 17, 18, 19, 23, 24, 25, 29, 30, 31, 32 and 34 in accordance with its annual work programme. That shall include assistance, as required, with:

(a)compiling the information reported by Member States on policies and measures and projections;

(b)performing quality assurance and quality control procedures on the information reported by Member States on projections and policies and measures;

(c)preparing estimates or complementing the ones available to the European Commission for data on projections not reported by the Member States;

(d)compiling data, wherever available taken from European statistics and appropriate in terms of timing, as required for the State of the Energy Union report to the European Parliament and the Council prepared by the Commission;

(e)disseminating information collected under this Regulation, including maintaining and updating a database on Member States’ mitigation policies and measures and the European Climate Adaptation Platform relating to impacts, vulnerabilities and adaptation to climate change;

(f)performing quality assurance and quality control procedures in the preparation of the Union greenhouse gas inventory;

(g)compiling the Union greenhouse gas inventory and preparing the Union greenhouse gas inventory report;

(h)preparing estimates for data not reported in the national greenhouse gas inventories;

(i)conducting the review referred to in Article 31;

(j)compiling the Union approximated greenhouse gas inventory.

CHAPTER 8
DELEGATION

Article 36
Exercise of the delegation

1.    The power to adopt delegated acts is conferred on the Commission subject to the conditions laid down in this Article.

2.    The power to adopt delegated acts referred to in Articles 3(4), 23(5), 27(4), 30(6) and 33(4) shall be conferred on the Commission for a period of five years from [the date of entry into force of this Regulation]. The Commission shall draw up a report in respect of the delegation of power not later than nine months before the end of the five-year period. The delegation of power shall be tacitly extended for periods of an identical duration, unless the European Parliament or the Council opposes such extension not later than three months before the end of each period.

3.    The delegation of power referred to in Articles 3(4), 23(5), 27(4), 30(6) and 33(4) may be revoked at any time by the European Parliament or by the Council. A decision to revoke shall put an end to the delegation of the power specified in that decision. It shall take effect the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force.

4.    Before adopting a delegated act, the Commission shall consult experts designated by each Member State in accordance with the principles laid down in the Interinstitutional Agreement on Better Law-Making of 13 April 2016.

5.    As soon as it adopts a delegated act, the Commission shall notify it simultaneously to the European Parliament and to the Council.

6.    A delegated act adopted pursuant to Articles 3(4), 23(5), 27(4), 30(6) and 33(4) shall enter into force only if no objection has been expressed either by the European Parliament or the Council within a period of two months of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by two months at the initiative of the European Parliament or of the Council.

CHAPTER 9
FINAL PROVISIONS

Article 37
Energy Union Committee

1.    The Commission shall be assisted by an Energy Union Committee. That committee shall be a committee within the meaning of Regulation (EU) No 182/2011 and work in the respective sectorial formations relevant for this Regulation.

2.    This Committee replaces the committee established by Article 8 of Decision 93/389/EEC, Article 9 of Decision 280/2004/EC and Article 26 of Regulation (EU) No 525/2013. References to the committee set up pursuant to those legal acts shall be construed as references to the committee established by this Regulation.

3.    Where reference is made to this article, Article 5 of Regulation (EU) No 182/2011 shall apply.

Article 38
Review

The Commission shall report to the European Parliament and to the Council by 28 February 2026 and every five years thereafter on the operation of this Regulation, its contribution to the Governance of the Energy Union and the conformity of the planning, reporting and monitoring provisions of this Regulation with other Union legislation or future decisions relating to the UNFCCC and the Paris Agreement. The Commission may make proposals if appropriate.

Article 39
Amendments to Directive 94/22/EC

Directive 94/22/EC is amended as follows:

(1)in Article 8, paragraph 2 is deleted;

(2)Article 9 is deleted.

Article 40
Amendments to Directive 98/70/EC

Directive 98/70/EC is amended as follows:

(1)in Article 8(4), the second sentence is deleted;

(2)in the third subparagraph of Article 7a(1), point (a) is replaced by the following:

"the total volume of each type of fuel or energy supplied; and";

(3)in Article 7a(2), the first sentence is replaced by the following:

"Member States shall require suppliers to reduce as gradually as possible life cycle greenhouse gas emissions per unit of energy from fuel and energy supplied by up to 10 % by 31 December 2020, compared with the fuel baseline standard set out in Annex II to Council Directive (EU) 2015/652.".

Article 41
Amendment to Directive 2009/31/EC

In Article 38 of Directive 2009/31/EC, paragraph 1 is deleted.

Article 42
Amendments to Regulation (EC) No 663/2009

Regulation (EC) No 663/2009 is amended as follows:

(1)in Article 27, paragraphs 1 and 3 are deleted;

(2)Article 28 is deleted.

Article 43
Amendment to Regulation (EC) No 715/2009

Article 29 of Regulation (EC) No 715/2009 is deleted.

Article 44
Amendments to Directive 2009/73/EC

Directive 2009/73/EC is amended as follows:

(1)Article 5 is deleted;

(2)Article 52 is replaced by the following:

"Article 52

Reporting

The Commission shall monitor and review the application of this Directive and submit an overall progress report to the European Parliament and the Council as an annex to the State of the Energy Union Report referred to in Article 29 of Regulation [XX/20XX] [this regulation].".

Article 45
Amendment to Council Directive 2009/119/EC

In Article 6 of Council Directive 2009/119/EC, paragraph 2 is replaced by the following:

"2. By 15 March each year, each Member State shall send the Commission a summary copy of the stock register referred to in paragraph 1 showing at least the quantities and nature of the emergency stocks included in the register on the last day of the preceding calendar year.".

Article 46
Amendments to Directive 2010/31/EU

Directive 2010/31/EU is amended as follows:

(1)In Article 2a of Directive 2010/31/EU [version as amended in accordance with proposal COM(2016) 765], the following paragraph 4 is inserted:

"4. The long-term strategy under paragraph 1 shall be submitted to the Commission, as part of the Integrated National Energy and Climate Plan, pursuant to Article 3 of Regulation [XX/20XX] [ this regulation].";

(2)in Article 5(2), second subparagraph, the sentence "The report may be included in the Energy Efficiency Action Plans referred to in Article 14(2) of Directive 2006/32/EC" is deleted;

(3)in Article 9, paragraph 5 is replaced by the following:

"As part of its State of the Energy Union report referred to in Article 29 of Regulation [XX/20XX] [this regulation], the Commission shall report every two years to the European Parliament and to the Council on the progress of Member States in increasing the number of nearly zero-energy buildings. On the basis of this reported information the Commission shall develop an action plan and, if necessary, propose recommendations and measures pursuant to Articles 27 and 28 of Regulation [XX/20XX] [this regulation] to increase the number of those buildings and encourage best practices as regards the cost-effective transformation of existing buildings into nearly zero-energy buildings.";

(4)in Article 10, paragraphs 2 and 3 are deleted.

Article 47
Amendments to Directive 2012/27/EU

Directive 2012/27/EU is amended as follows:

(1)in Article 4, the last paragraph is deleted;

(2)in Article 18(1), point (e) is deleted;

(3)in Article 24, paragraphs 1 to 4 and 11, are deleted;

(4)Annex XIV is deleted.

Article 48
Amendment to Directive 2013/30/EU

In Article 25 of Directive 2013/30/EU, paragraph 1 is replaced by the following:

"1. Member States shall report annually to the Commission, as part of the annual reporting pursuant to Article 23 of Regulation [XX/20XX] [this regulation], the information specified in Annex IX, point 3.".

Article 49
Amendments to Council Directive (EU) 2015/652

Council Directive (EU) 2015/652 is amended as follows:

(1)in Annex I, Part 2, points 2, 3, 4 and 7 are deleted.

(2)Annex III is amended as follows:

(a)point 1 is replaced by the following:

"1. Member States are to report the data listed in point 3. These data must be reported for all fuel and energy placed on the market in each Member State. Where multiple biofuels are blended with fossil fuels, the data for each biofuel must be provided."

(b)in point 3, points (e) and (f) are deleted;

(3)Annex IV is amended as follows:

(a)the following templates for reporting information for consistency of the reported data are deleted:

- Origin — Single Suppliers

- Origin — Joint Suppliers

- Place of Purchase

(b)in the format notes, points 8 and 9 are deleted.

Article 50
Repeal

Regulation (EU) No 525/2013 shall be repealed with effect as from 1 January 2021, subject to transitional provisions laid down in Article 51. References to the repealed Regulation shall be construed as references to this Regulation and shall be read in accordance with the correlation table in Annex XI.

Article 51
Transitional provisions

By way of derogation from Article 50 of this Regulation, Articles 7 and 17(1)(a) and (d) of Regulation (EU) No 525/2013 shall continue to apply to the reports containing the data required under those Articles for the years 2018, 2019 and 2020.

Article 19 of Regulation (EU) No 525/2013 shall continue to apply to the reviews of the GHG inventory data for the years 2018, 2019 and 2020.

Article 22 of Regulation (EU) No 525/2013 shall continue to apply to the submission of the report required under that Article.

Article 52
Entry into force

This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.

Articles 33, 46(2) to (4) and 47(3) and (4) shall apply from 1 January 2021.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels,

LEGISLATIVE FINANCIAL STATEMENTS

Commission Services

1.FRAMEWORK OF THE PROPOSAL/INITIATIVE

1.1.Title of the proposal/initiative

1.2.Policy area(s) concerned in the ABM/ABB structure

1.3.Nature of the proposal/initiative

1.4.Objective(s)

1.5.Grounds for the proposal/initiative

1.6.Duration and financial impact

1.7.Management mode(s) planned

2.MANAGEMENT MEASURES

2.1.Monitoring and reporting rules

2.2.Management and control system

2.3.Measures to prevent fraud and irregularities

3.ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE

3.1.Heading(s) of the multiannual financial framework and expenditure budget line(s) affected

3.2.Estimated impact on expenditure 

3.2.1.Summary of estimated impact on expenditure

3.2.2.Estimated impact on operational appropriations

3.2.3.Estimated impact on appropriations of an administrative nature

3.2.4.Compatibility with the current multiannual financial framework

3.2.5.Third-party contributions

3.3.Estimated impact on revenue

LEGISLATIVE FINANCIAL STATEMENT

1.FRAMEWORK OF THE PROPOSAL/INITIATIVE

1.1.Title of the proposal/initiative

1.2.Policy area(s) concerned in the ABM/ABB structure 41  

1.3.Nature of the proposal/initiative

☑ The proposal/initiative relates to a new action 

◻ The proposal/initiative relates to a new action following a pilot project/preparatory action 42  

◻ The proposal/initiative relates to the extension of an existing action 

◻ The proposal/initiative relates to an action redirected towards a new action 

1.4.Objective(s)

1.4.1.The Commission's multiannual strategic objective(s) targeted by the proposal/initiative

1.4.2.Specific objective(s) and ABM/ABB activity(ies) concerned

1.4.3.Expected result(s) and impact

Specify the effects which the proposal/initiative should have on the beneficiaries/groups targeted.

1.4.4.Indicators of results and impact

Specify the indicators for monitoring implementation of the proposal/initiative.

1.5.Grounds for the proposal/initiative

1.5.1.Requirement(s) to be met in the short or long term

1.5.2.Added value of EU involvement

1.5.3.Lessons learned from similar experiences in the past

1.5.4.Compatibility and possible synergy with other appropriate instruments

1.6.Duration and financial impact

◻ Proposal/initiative of limited duration

–◻    Proposal/initiative in effect from [DD/MM]YYYY to [DD/MM]YYYY

–◻    Financial impact from YYYY to YYYY

☑ Proposal/initiative of unlimited duration

–Implementation with a start-up period from 2018 for unlimited duration,

–followed by full-scale operation.

1.7.Management mode(s) planned 43  

☑ Direct management by the Commission

–☑ by its departments, including by its staff in the Union delegations;

–◻    by the executive agencies

◻ Shared management with the Member States

x Indirect management by entrusting budget implementation tasks to:

–◻ third countries or the bodies they have designated;

–◻ international organisations and their agencies (to be specified);

–◻the EIB and the European Investment Fund;

–x bodies referred to in Articles 208 and 209 of the Financial Regulation;

–◻ public law bodies;

–◻ bodies governed by private law with a public service mission to the extent that they provide adequate financial guarantees;

–◻ bodies governed by the private law of a Member State that are entrusted with the implementation of a public-private partnership and that provide adequate financial guarantees;

–◻ persons entrusted with the implementation of specific actions in the CFSP pursuant to Title V of the TEU, and identified in the relevant basic act.

–If more than one management mode is indicated, please provide details in the ‘Comments’ section.

Comments

2.MANAGEMENT MEASURES

2.1.Monitoring and reporting rules

Specify frequency and conditions.

2.2.Management and control system

2.2.1.Risk(s) identified

2.2.2.Information concerning the internal control system set up

2.2.3.Estimate of the costs and benefits of the controls and assessment of the expected level of risk of error

2.3.Measures to prevent fraud and irregularities

Specify existing or envisaged prevention and protection measures.

3.ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE

3.1.Heading(s) of the multiannual financial framework and expenditure budget line(s) affected

Existing budget lines

In order of multiannual financial framework headings and budget lines.

New budget lines requested

In order of multiannual financial framework headings and budget lines.

3.2.Estimated impact on expenditure

3.2.1.Summary of estimated impact on expenditure

The estimated expenditure mentioned in this section will be fully accommodated under the current programmed financial envelope of the budget lines in question until 2020.

EUR million (to three decimal places)

DG: <ENER>				Year 2018	Year 2019	Year 2020		Enter as many years as necessary to show the duration of the impact (see point 1.6)			TOTAL 2018+2019+2020
• Operational appropriations
Number of budget line	Commitments	(1)		0	0.500	0.500					1.000
	Payments	(2)		0	0.150	0.350					0.500
Appropriations of an administrative nature financed from the envelope of specific programmes 47
Number of budget line		(3)
TOTAL appropriations for DG <ENER>	Commitments	=1+1a +3		0	0.500	0.500					1.000
	Payments	=2+2a +3		0	0.150	0.350					0.500

EUR million (to three decimal places)

DG: < CLIMA>				Year 2018	Year 2019	Year 2020					TOTAL 2018+2019+2020
• Operational appropriations
budget line 34 02 01	Commitments	(1a)		0	0.500	0.500					1.000
	Payments	(2a)		0	0.150	0.350					0.500
Appropriations of an administrative nature financed from the envelope of specific programmes 48
TOTAL appropriations for DG < CLIMA >	Commitments	=1a +1b		0	0.500	0.500					1.000
	Payments	=2a+ 2b		0	0.150	0.350					0.500

If more than one heading is affected by the proposal / initiative:

Heading of multiannual financial framework

5

‘Administrative expenditure’

EUR million (to three decimal places)

TOTAL appropriations under HEADING 5 of the multiannual financial framework

(Total commitments = Total payments)

2.636

2.636

2.636

7.908

EUR million (to three decimal places)

3.2.2.Estimated impact on operational appropriations

–◻    The proposal/initiative does not require the use of operational appropriations

–☑    The proposal/initiative requires the use of operational appropriations, as explained below:

Commitment appropriations in EUR million (to three decimal places)

3.2.3.Estimated impact on appropriations of an administrative nature

3.2.3.1.Summary

–◻    The proposal/initiative does not require the use of appropriations of an administrative nature

–☑    The proposal/initiative requires the use of appropriations of an administrative nature, as explained below:

EUR million (to three decimal places)

HEADING 5 of the multiannual financial framework
Human resources	1.686+ 0.670	1.686+ 0.670	1.686+ 0.670					7.068
Other administrative expenditure	0.280	0.280	0.280					0.840
Subtotal HEADING 5 of the multiannual financial framework	2.636	2.636	2.636					7.908

Outside HEADING 5 52 of the multiannual financial framework
Other expenditure of an administrative nature
Subtotal outside HEADING 5 of the multiannual financial framework

TOTAL GENERAL

2.636

2.636

2.636

7.908

The appropriations required for human resources and other expenditure of an administrative nature will be met by appropriations from the DG that are already assigned to management of the action and/or have been redeployed within the DG, together if necessary with any additional allocation which may be granted to the managing DG under the annual allocation procedure and in the light of budgetary constraints.

3.2.3.2.Estimated requirements of human resources

–◻    The proposal/initiative does not require the use of human resources.

–☑    The proposal/initiative requires the use of human resources, as explained below:

Estimate to be expressed in full time equivalent units

32 is the policy area or budget title concerned (DG ENER)

34 is the policy area concerned (DG CLIMA)

The human resources required will be met by staff from the DG who are already assigned to management of the action and/or have been redeployed within the DG, together if necessary with any additional allocation which may be granted to the managing DG under the annual allocation procedure and in the light of budgetary constraints.

Description of tasks to be carried out:

3.2.4.Compatibility with the current multiannual financial framework

–☑    The proposal/initiative is compatible the current multiannual financial framework.

–◻    The proposal/initiative will entail reprogramming of the relevant heading in the multiannual financial framework.

–◻    The proposal/initiative requires application of the flexibility instrument or revision of the multiannual financial framework.

3.2.5.Third-party contributions

–The proposal/initiative does not provide for co-financing by third parties.

–The proposal/initiative provides for the co-financing estimated below:

Appropriations in EUR million (to three decimal places)

3.3.Estimated impact on revenue

–☑    The proposal/initiative has no financial impact on revenue.

–◻    The proposal/initiative has the following financial impact:

–◻    on own resources

–◻    on miscellaneous revenue

EUR million (to three decimal places)

For miscellaneous ‘assigned’ revenue, specify the budget expenditure line(s) affected.

Specify the method for calculating the impact on revenue.

Legislative financial statement ‘Agencies’

The European Environment Agency

1.FRAMEWORK OF THE PROPOSAL/INITIATIVE

1.1.Title of the proposal/initiative

1.2.Policy area(s) concerned in the ABM/ABB structure

1.3.Nature of the proposal/initiative

1.4.Objective(s)

1.5.Grounds for the proposal/initiative

1.6.Duration and financial impact

1.7.Management mode(s) planned

2.MANAGEMENT MEASURES

2.1.Monitoring and reporting rules

2.2.Management and control system

2.3.Measures to prevent fraud and irregularities

3.ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE

3.1.Heading(s) of the multiannual financial framework and expenditure budget line(s) affected

3.2.Estimated impact on expenditure 

3.2.1.Summary of estimated impact on expenditure

3.2.2.Estimated impact on [body]'s appropriations

3.2.3.Estimated impact on [body]'s human resources

3.2.4.Compatibility with the current multiannual financial framework

3.2.5.Third-party contributions

3.3.Estimated impact on revenue

LEGISLATIVE FINANCIAL STATEMENT

1.FRAMEWORK OF THE PROPOSAL/INITIATIVE

1.1.Title of the proposal/initiative

1.2.Policy area(s) concerned in the ABM/ABB structure 56  

1.3.Nature of the proposal/initiative

☑ The proposal/initiative relates to a new action 

◻ The proposal/initiative relates to a new action following a pilot project/preparatory action 57  

◻ The proposal/initiative relates to the extension of an existing action 

◻ The proposal/initiative relates to an action redirected towards a new action 

1.4.Objective(s)

1.4.1.The Commission's multiannual strategic objective(s) targeted by the proposal/initiative

1.4.2.Specific objective(s) and ABM/ABB activity(ies) concerned

1.4.3.Expected result(s) and impact

Specify the effects which the proposal/initiative should have on the beneficiaries/groups targeted.

1.4.4.Indicators of results and impact

Specify the indicators for monitoring implementation of the proposal/initiative.

1.5.Grounds for the proposal/initiative

1.5.1.Requirement(s) to be met in the short or long term

1.5.2.Added value of EU involvement

1.5.3.Lessons learned from similar experiences in the past

1.5.4.Compatibility and possible synergy with other appropriate instruments

1.6.Duration and financial impact

◻ Proposal/initiative of limited duration

–◻    Proposal/initiative in effect from [DD/MM]YYYY to [DD/MM]YYYY

–◻    Financial impact from YYYY to YYYY

☑ Proposal/initiative of unlimited duration

–Implementation with a start-up period from 2018 for unlimited duration,

–followed by full-scale operation.

1.7.Management mode(s) planned 58  

☑ Direct management by the Commission

–☑ by its departments, including by its staff in the Union delegations;

–    by the executive agencies

◻ Shared management with the Member States

x Indirect management by entrusting budget implementation tasks to:

–◻ third countries or the bodies they have designated;

–◻ international organisations and their agencies (to be specified);

–◻the EIB and the European Investment Fund;

–x bodies referred to in Articles 208 and 209 of the Financial Regulation;

–◻ public law bodies;

–◻ bodies governed by private law with a public service mission to the extent that they provide adequate financial guarantees;

–◻ bodies governed by the private law of a Member State that are entrusted with the implementation of a public-private partnership and that provide adequate financial guarantees;

–◻ persons entrusted with the implementation of specific actions in the CFSP pursuant to Title V of the TEU, and identified in the relevant basic act.

–If more than one management mode is indicated, please provide details in the ‘Comments’ section.

Comments

2.MANAGEMENT MEASURES

2.1.Monitoring and reporting rules

Specify frequency and conditions.

2.2.Management and control system

2.2.1.Risk(s) identified

2.2.2.Information concerning the internal control system set up

2.2.3.Estimate of the costs and benefits of the controls and assessment of the expected level of risk of error

2.3.Measures to prevent fraud and irregularities

Specify existing or envisaged prevention and protection measures.

3.ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE

3.1.Heading(s) of the multiannual financial framework and expenditure budget line(s) affected

Existing budget lines

In order of multiannual financial framework headings and budget lines.

New budget lines requested

In order of multiannual financial framework headings and budget lines.

3.2.Estimated impact on expenditure

3.2.1.Summary of estimated impact on expenditure

EUR million (to three decimal places)

[Body]: <EEA – European Environment Agency…….>			Year 2017 62	Year 2018	Year 2019	Year 2020	Enter as many years as necessary to show the duration of the impact (see point 1.6)			TOTAL 2018-2020
Title 1: Staff expenditure	Commitments	(1)		0.035	0.140	0.210				0.385
	Payments	(2)		0.035	0.140	0.210				0.385
Title 2: Infrastructure and operating expenditure	Commitments	(1a)
	Payments	(2a)
Title 3: Operational expenditure	Commitments	(3a)		0.250	0.500	0.500				1.250
	Payments	(3b)		0.250	0.500	0.500				1.250
TOTAL appropriations for [body] <EEA…….>	Commitments	=1+1a +3a		0.285	0.640	0.710				1.635
	Payments	=2+2a +3b		0.285	0.640	0.710				1.635

3.2.2.Estimated impact on [body]'s appropriations

–◻    The proposal/initiative does not require the use of operational appropriations

–◻    The proposal/initiative requires the use of operational appropriations, as explained below:

Commitment appropriations in EUR million (to three decimal places)

3.2.3.Estimated impact on EEA's human resources

3.2.3.1.Summary

–◻    The proposal/initiative does not require the use of appropriations of an administrative nature

–x    The proposal/initiative requires the use of appropriations of an administrative nature, as explained below:

EUR million (to three decimal places)

Estimated impact on the staff (additional) – external personnel

Over and above the 9 temporary agents (4 AD + 5 AST) currently working in the EEA on tasks related to this Regulation, the EEA needs 3 additional contract agents to cover:

Climate mitigation and renewables, which includes assessment of information on national projections/trajectories, policies and measures and biomass,

Climate mitigation and energy efficiency, which includes assessment of information on national projections/trajectories, policies and measures, and

Integrated climate and energy reporting;

Establishment, management and maintaining new reporting streams and e-reporting infrastructure, in relation with the data flows under its responsibility.

Description of the calculation of cost for FTE units should be included in the Annex V, section 3.

3.2.4.Compatibility with the current multiannual financial framework

–x    The proposal/initiative is compatible the current multiannual financial framework.

–◻    The proposal/initiative will entail reprogramming of the relevant heading in the multiannual financial framework.

–◻    The proposal/initiative requires application of the flexibility instrument or revision of the multiannual financial framework 65 .

3.2.5.Third-party contributions

–The proposal/initiative does not provide for co-financing by third parties.

–The proposal/initiative provides for the co-financing estimated below:

EUR million (to three decimal places)

3.3.Estimated impact on revenue

–◻    The proposal/initiative has no financial impact on revenue.

–◻    The proposal/initiative has the following financial impact:

–◻    on own resources

–◻    on miscellaneous revenue

EUR million (to three decimal places)

For miscellaneous ‘assigned’ revenue, specify the budget expenditure line(s) affected.

Specify the method for calculating the impact on revenue.

(1) Adopted at the 21st Conference of the Parties of the United Nations Framework Convention on Climate Change (UNFCCC) in December 2015.

(2) Based around a climate target of at least 40% domestic reduction in economy-wide greenhouse gas emissions by 2030 compared to 1990, an EU-level binding target of at least 27% for the share of renewable energy consumed in the EU by 2030, an indicative target at the EU level of at least 27% for improving energy efficiency in 2030 and a target of 15% for interconnections. The Conclusions also stated that the energy efficiency targets will be reviewed by 2020, having in mind an EU level of 30%.

(3) Commission Communication of 22 January 2014 entitled "A policy framework for climate and energy in the period from 2020 to 2030" (COM/2014/015 final).

(4) Executive Summary of the Impact Assessment Accompanying the document Proposal for a Regulation of the European Parliament and the Council on the Governance of the Energy Union, amending Directive 94/22/EC, Directive 98/70/EC, Directive 2009/31/EC, Regulation (EC) No 663/2009, Regulation (EC) No 715/2009, Directive 2009/73/EC, Council Directive 2009/119/EC, Directive 2010/31/EU, Directive 2012/27/EU, Directive 2013/30/EU and Council Directive (EU) 2015/652 and repealing Regulation (EU) No 525/2013 (Commission Staff working document).

(5) RSB Opinion accompanying the document Proposal for a Regulation of the European Parliament and the Council on the Governance of the Energy Union, amending Directive 94/22/EC, Directive 98/70/EC, Directive 2009/31/EC, Regulation (EC) No 663/2009, Regulation (EC) No 715/2009, Directive 2009/73/EC, Council Directive 2009/119/EC, Directive 2010/31/EU, Directive 2012/27/EU, Directive 2013/30/EU and Council Directive (EU) 2015/652 and repealing Regulation (EU) No 525/2013.

(6) The consultation focused on: i) how current planning and reporting obligations in the energy and climate field could be streamlined to better serve the objectives of the Energy Union; ii) how to best proceed to develop integrated planning, reporting and monitoring tools and; iii) how to set up a Governance process conducive to the attainment of the objectives of the Energy Union.

(7) Belgium, Cyprus, Czech Republic, Denmark, Estonia, Finland, Germany, Hungary, Latvia, Lithuania, Malta, The Netherlands, Poland, Slovakia and Sweden.

(8) I.e. the National Renewable Energy Action Plans (NREAPs), the National Energy Efficiency Action Plans (NEEAPs), and climate planning requirements.

(9) COM/2016/0482 final - 2016/0231 (COD). 

(10) COM/2016/0479 final - 2016/0230 (COD).

(11) OJ C , , p. .

(12) OJ C , , p. .

(13) Council Decision (EU) 2016/1841 of 5 October 2016 on the conclusion, on behalf of the European Union, of the Paris Agreement adopted under the United Nations Framework Convention on Climate Change (OJ L 282, 19.10.2016, p. 1).

(14) Conclusions of the European Council 23 - 24 October 2014 (EUCO 169/14).

(15) Communication State of the Energy Union 2015 of 18.11.2015, COM(2015)572 final.

(16) Conclusions of the Council of 26 November 2015 (14632/15).

(17) European Parliament resolution of 15 December 2015 on "Towards a European Energy Union" (2015/2113(INI)).

(18) Directive 2001/81/EC of the European Parliament and the Council on National Emission Ceilings for certain pollutants (OJ L 309, 27.11.2001, p. 22).

(19) Regulation (EU) No 525/2013 of the European Parliament and of the Council of 21 May 2013 on a mechanism for monitoring and reporting greenhouse gas emissions and for reporting other information at national and Union level relevant to climate change and repealing Decision No 280/2004/EC (OJ L 165, 18.6.2013, p. 13).

(20) Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003 establishing a scheme for greenhouse gas emission allowance trading within the Community (OJ L 275, 25.10.2003, p. 32).

(21) Regulation (EC) No 166/2006 of the European Parliament and of the Council of 18 January 2006 concerning the establishment of a European Pollutant Release and Transfer Register (OJ L 33, 4.2.2006, p. 1).

(22) Regulation (EC) No 1099/2008 of the European Parliament and of the Council of 22 October 2008 on energy statistics (OJ L 304, 14.11.2008, p. 1).

(23) Regulation (EC) No 517/2014 of the European Parliament and of the Council of 16 April 2014 on fluorinated greenhouse gases and repealing Regulation (EC) No 842/2006 (OJ L 150, 20.5.2014, p. 195).

(24) Directive 2001/42/EC of the European Parliament and of the Council of 27 June 2001 on the assessment of the effects of certain plans and programmes on the environment (OJ L 197, 21.7.2001, p.30).

(25) OJ L […], […], p. […].

(26) OJ L […], […], p. […].

(27) Regulation (EC) No 223/2009 of the European Parliament and of the Council of 11 March 2009 on European statistics and repealing Regulation (EC, Euratom) No 1101/2008 of the European Parliament and of the Council on the transmission of data subject to statistical confidentiality to the Statistical Office of the European Communities, Council Regulation (EC) No 322/97 on Community Statistics, and Council Decision 89/382/EEC, Euratom establishing a Committee on the Statistical Programmes of the European Communities (OJ L 87, 31.3.2009, p. 164). 

(28)

   Decision No 406/2009/EC of the European Parliament and of the Council of 23 April 2009 on the effort of Member States to reduce their greenhouse gas emissions to meet the Community’s greenhouse gas emission reduction commitments up to 2020 (OJ L 140, 5.6.2009, p. 136).

(29) Regulation (EU) No 182/2011 of the European Parliament and of the Council of 16 February 2011 laying down the rules and general principles concerning mechanisms for control by Member States of the Commission’s exercise of implementing powers (OJ L 55, 28.2.2011, p. 13).

(30) OJ L 164, 30.6.1994, p. 3.

(31) OJ L 350, 28.12.1998, p. 58.

(32) OJ L 140, 5.6.2009, p. 114.

(33) OJ L 200, 31.7.2009, p. 31.

(34) OJ L 211, 14.8.2009, p. 36.

(35) OJ L 211, 14.8.2009, p. 94

(36) OJ L 265, 9.10.2009, p. 9.

(37) OJ L 153, 18.6.2010, p. 13.

(38) OJ L 315, 14.11.2012, p. 1.

(39) OJ L 178, 28.6.2013, p. 66.

(40) OJ L 107, 25.4.2015, p. 26.

(41) ABM: activity-based management; ABB: activity-based budgeting.

(42) As referred to in Article 54(2)(a) or (b) of the Financial Regulation.

(43) Details of management modes and references to the Financial Regulation may be found on the BudgWeb site: http://www.cc.cec/budg/man/budgmanag/budgmanag_en.html

(44) Diff. = Differentiated appropriations / Non-diff. = Non-differentiated appropriations.

(45) EFTA: European Free Trade Association.

(46) Candidate countries and, where applicable, potential candidate countries from the Western Balkans.

(47) Technical and/or administrative assistance and expenditure in support of the implementation of EU programmes and/or actions (former ‘BA’ lines), indirect research, direct research.

(48) Technical and/or administrative assistance and expenditure in support of the implementation of EU programmes and/or actions (former ‘BA’ lines), indirect research, direct research.

(49) Outputs are products and services to be supplied (e.g.: number of student exchanges financed, number of km of roads built, etc.).

(50) As described in point 1.4.2. ‘Specific objective(s)…’

(51) Such assistance could cover reports assessment, interviews with stakeholders, organisation of workshops and conferences etc.

(52) Technical and/or administrative assistance and expenditure in support of the implementation of EU programmes and/or actions (former ‘BA’ lines), indirect research, direct research.

(53) AC= Contract Staff; AL = Local Staff; END= Seconded National Expert; INT = agency staff; JED= Junior Experts in Delegations.

(54) Sub-ceiling for external staff covered by operational appropriations (former ‘BA’ lines).

(55) As regards traditional own resources (customs duties, sugar levies), the amounts indicated must be net amounts, i.e. gross amounts after deduction of 25 % for collection costs.

(56) ABM: activity-based management; ABB: activity-based budgeting.

(57) As referred to in Article 54(2)(a) or (b) of the Financial Regulation.

(58) Details of management modes and references to the Financial Regulation may be found on the BudgWeb site: http://www.cc.cec/budg/man/budgmanag/budgmanag_en.html

(59) Diff. = Differentiated appropriations / Non-diff. = Non-differentiated appropriations.

(60) EFTA: European Free Trade Association.

(61) Candidate countries and, where applicable, potential candidates from the Western Balkans.

(62) Year N is the year in which implementation of the proposal/initiative starts.

(63) Outputs are products and services to be supplied (e.g.: number of student exchanges financed, number of km of roads built, etc.).

(64) As described in point 1.4.2. ‘Specific objective(s)…’

(65) See Articles 11 and 17 of Council Regulation (EU, Euratom) No 1311/2013 laying down the multiannual financial framework for the years 2014-2020.

(66) As regards traditional own resources (customs duties, sugar levies), the amounts indicated must be net amounts, i.e. gross amounts after deduction of 25 % for collection costs.