Governance of the energy union

 

SUMMARY OF:

Regulation (EU) 2018/1999 on the governance of the energy union and climate action

WHAT IS THE AIM OF THE REGULATION?

• It aims to ensure that the European Union’s (EU) energy union strategy is implemented in a coordinated and coherent manner across its five dimensions.
• More broadly, it also aims to ensure that the EU achieves its objectives, in particular the targets of the 2030 policy framework for climate and energy and of the Paris Agreement on climate change.

KEY POINTS

The energy union strategy has five dimensions:

• decarbonisation,
• energy efficiency,
• energy security,
• the internal energy market,
• research, innovation and competitiveness.

The regulation has a number of key features.

• It requires EU Member States:
  • to produce national integrated energy and climate plans for 2021 to 2030 by 31 December 2019, and subsequently by 1 January 2029 and every 10 years thereafter;
  • to prepare long-term low-emission strategies with a 50-year perspective and report them to the European Commission, with a view to contributing to broader sustainable development goals and the long-term goals set by the Paris Agreement;
  • to produce biennial progress reports on the implementation of the plans, from 15 March 2023 onwards, to track progress across the five dimensions of the energy union.
• It establishes a repeated consultation process between the Commission and Member States and fosters regional cooperation between Member States, especially before the plans are finalised, and then every 10 years for the following 10-year periods. For 2021 to 2030, the plans need to be updated by 30 June 2024.
• It requires the Commission to monitor and assess Member States’ progress towards the targets, objectives and contributions set in their national plans.
• It sets out the requirements for national and EU inventory systems for greenhouse gas emissions, policies, measures and projections.

Amending legislation

• Regulation (EU) 2021/1119, known as the European climate law, amends Regulation (EU) 2018/1999. It sets a binding EU target of a net domestic reduction in greenhouse gas emissions by at least 55% (compared with 1990 levels) by 2030, and undertakes to set a climate target for 2040 within 6 months of the first global stocktaking under the Paris Agreement.
• Regulation (EU) 2023/839, whose primary purpose is to amend Regulation (EU) 2018/841 on the inclusion of greenhouse gas emissions and removals from land use, land use change and forestry in the 2030 climate and energy framework (known as the LULUCF Regulation), also amends Regulation (EU) 2018/1999 with a view to improving its monitoring, reporting, tracking of progress and review mechanisms. Regulation (EU) 2018/1999 is updated to mention not only Member States’ commitments but also their national targets under the LULUCF Regulation. The amending text also sets out the 2025 inventory review procedure, allowing the Commission to adopt implementing acts determining the binding national emissions and removals per Member State. Lastly, Annex V of Regulation (EU) 2018/1999 is updated to include measures increasing the accuracy of the monitoring and reporting of the greenhouse gas emissions and removals in the LULUCF sector.
• Regulation (EU) 2023/857, which amends Regulation (EU) 2018/842 on binding annual greenhouse gas emission reductions over the 2021–2030 period, also makes some minor changes to Regulation (EU) 2018/1999, making the process of reporting on transfers of annual emission allocations between Member States more transparent.

Delegated acts

• The Commission has the power to adopt delegated acts to adapt the national energy and climate plans template to amendments to the EU’s energy and climate policy framework that are directly and specifically related to the EU’s contributions under the United Nations Framework Convention on Climate Change and the Paris Agreement.
• It also has the power to adopt delegated acts to take account of changes in the global warming potentials and internationally agreed inventory guidelines, to set substantive requirements for the EU inventory system and to set up the registries.
• Delegated Regulation (EU) 2020/1044 supplements Regulation (EU) 2018/1999 with regard to values for global warming potentials and the greenhouse gas inventory guidelines, and with regard to the EU’s inventory system:
  • it repeals Delegated Regulation (EU) No 666/2014 from 1 January 2021;
  • it applies to reports submitted by Member States from 2021 onwards;
  • Member States and the Commission will use the global warming potentials listed in its Annex I for the purpose of determining and reporting greenhouse gas inventories data.

Implementing acts

The Commission has adopted three implementing acts:

• Implementing Regulation (EU) 2020/1208 on the structure, format, submission processes and review of information that Member States report in line with Regulation (EU) 2018/1999;
• Implementing Regulation (EU) 2020/1294 on the EU’s Renewable Energy Financing Mechanism; and
• Implementing Regulation (EU) 2022/2299 on the structure, format, technical details and process for the integrated national energy and climate progress reports.

Repeal

The regulation repeals Regulation (EU) No 525/2013 on the monitoring and reporting mechanism for greenhouse gas emissions.

FROM WHEN DOES THE REGULATION APPLY?

It has applied since 24 December 2018.

BACKGROUND

For further information, see:

• Energy union (European Commission).

MAIN DOCUMENT

Regulation (EU) 2018/1999 of the European Parliament and of the Council of 11 December 2018 on the Governance of the Energy Union and Climate Action, amending Regulations (EC) No 663/2009 and (EC) No 715/2009 of the European Parliament and of the Council, Directives 94/22/EC, 98/70/EC, 2009/31/EC, 2009/73/EC, 2010/31/EU, 2012/27/EU and 2013/30/EU of the European Parliament and of the Council, Council Directives 2009/119/EC and (EU) 2015/652 and repealing Regulation (EU) No 525/2013 of the European Parliament and of the Council (OJ L 328, 21.12.2018, pp. 1–77).

Successive amendments to Regulation (EU) 2018/1999 have been incorporated into the original text. This consolidated version is of documentary value only.

RELATED DOCUMENTS

Regulation (EU) 2023/857 of the European Parliament and of the Council of 19 April 2023 amending Regulation (EU) 2018/842 on binding annual greenhouse gas emission reductions by Member States from 2021 to 2030 contributing to climate action to meet commitments under the Paris Agreement, and Regulation (EU) 2018/1999 (OJ L 111, 26.4.2023, pp. 1–14).

Regulation (EU) 2023/839 of the European Parliament and of the Council of 19 April 2023 amending Regulation (EU) 2018/841 as regards the scope, simplifying the reporting and compliance rules, and setting out the targets of the Member States for 2030, and Regulation (EU) 2018/1999 as regards improvement in monitoring, reporting, tracking of progress and review (OJ L 107, 21.4.2023, pp. 1–28).

Commission Implementing Regulation (EU) 2022/2299 of 15 November 2022 laying down rules for the application of Regulation (EU) 2018/1999 of the European Parliament and of the Council as regards the structure, format, technical details and process for the integrated national energy and climate progress reports (OJ L 306, 25.11.2022, pp. 1–98).

Regulation (EU) 2021/1119 of the European Parliament and of the Council of 30 June 2021 establishing the framework for achieving climate neutrality and amending Regulations (EC) No 401/2009 and (EU) 2018/1999 (‘European Climate Law’) (OJ L 243, 9.7.2021, pp. 1–17).

Commission Implementing Regulation (EU) 2020/1294 of 15 September 2020 on the Union renewable energy financing mechanism (OJ L 303, 17.9.2020, pp. 1–17).

Commission Implementing Regulation (EU) 2020/1208 of 7 August 2020 on structure, format, submission processes and review of information reported by Member States pursuant to Regulation (EU) 2018/1999 of the European Parliament and of the Council and repealing Commission Implementing Regulation (EU) No 749/2014 (OJ L 278, 26.8.2020, pp. 1–132).

Commission Delegated Regulation (EU) 2020/1044 of 8 May 2020 supplementing Regulation (EU) 2018/1999 of the European Parliament and of the Council with regard to values for global warming potentials and the inventory guidelines and with regard to the Union inventory system and repealing Commission Delegated Regulation (EU) No 666/2014 (OJ L 230, 17.7.2020, pp. 1–6).

Regulation (EU) 2018/841 of the European Parliament and of the Council of 30 May 2018 on the inclusion of greenhouse gas emissions and removals from land use, land use change and forestry in the 2030 climate and energy framework, and amending Regulation (EU) No 525/2013 and Decision No 529/2013/EU (OJ L 156, 19.6.2018, pp. 1–25).

See consolidated version.

Regulation (EU) 2018/842 of the European Parliament and of the Council of 30 May 2018 on binding annual greenhouse gas emission reductions by Member States from 2021 to 2030 contributing to climate action to meet commitments under the Paris Agreement and amending Regulation (EU) No 525/2013 (OJ L 156, 19.6.2018, pp. 26–42).

See consolidated version.

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, pp. 1–3).

Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions: A policy framework for climate and energy in the period from 2020 to 2030 (COM(2014) 15 final/2, 28.1.2014).

last update 22.02.2023