What changed between the plenary report and the adopted text

Removed:DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION

Added:P9_TA(2024)0282

Changed:on the proposal for a regulation of the European Parliament and of the Council on the internalInternal markets for renewable andgas, natural gasesgas and for hydrogen (recast)

Removed:(COM(2021)0804 – C90470/2021 – 2021/0424(COD))

Added:Committee on Industry, Research and Energy

Added:PE734.108

Added:European Parliament legislative resolution of 11 April 2024 on the proposal for a regulation of the European Parliament and of the Council on the internal markets for renewable and natural gases and for hydrogen (recast) (COM(2021)0804 – C9-0470/2021 – 2021/0424(COD))

7 unchanged paragraphs

(Ordinary legislative procedure – recast)

The European Parliament,

– having regard to the Commission proposal to Parliament and the Council (COM(2021)0804),

– having regard to Article 294(2) and Article 194(2) of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C90470/2021),

– having regard to Article 294(3) of the Treaty on the Functioning of the European Union,

– having regard to the reasoned opinions submitted, within the framework of Protocol No 2 on the application of the principles of subsidiarity and proportionality, by the Czech Chamber of Deputies and the Czech Senate, asserting that the draft legislative act does not comply with the principle of subsidiarity,

– having regard to the opinion of the European Economic and Social Committee of 19 May 2022,

Changed:– having regard to the opinion of the Committee of the Regions of 1012 October 2022,

– having regard to the Interinstitutional Agreement of 28 November 2001 on a more structured use of the recasting technique for legal acts,

– having regard to the letter of 2 February 2023 sent by the Committee on Legal Affairs to the Committee on Industry, Research and Energy in accordance with Rule 110(3) of its Rules of Procedure,

Added:– having regard to the provisional agreement approved by the committee responsible under Rule 74(4) of its Rules of Procedure and the undertaking given by the Council representative by letter of 20 December 2023 to approve Parliament’s position, in accordance with Article 294(4) of the Treaty on the Functioning of the European Union,

7 unchanged paragraphs

– having regard to Rules 110 and 59 of its Rules of Procedure,

– having regard to the opinion of the Committee on Agriculture and Rural Development,

– having regard to the report of the Committee on Industry, Research and Energy (A9-0032/2023),

A. whereas, according to the Consultative Working Party of the legal services of the European Parliament, the Council and the Commission, the Commission proposal does not include any substantive amendments other than those identified as such in the proposal and whereas, as regards the codification of the unchanged provisions of the earlier acts together with those amendments, the proposal contains a straightforward codification of the existing texts, without any change in their substance;

1. Adopts its position at first reading hereinafter set out, taking into account the recommendations of the Consultative Working Party of the legal services of the European Parliament, the Council and the Commission;

2. Calls on the Commission to refer the matter to Parliament again if it replaces, substantially amends or intends to substantially amend its proposal;

3. Instructs its President to forward its position to the Council, the Commission and the national parliaments.

Change 1

Removed:AMENDMENTS BY THE EUROPEAN PARLIAMENT*

Added:P9_TC1-COD(2021)0424

Removed:to the Commission proposal

Added:Position of the European Parliament adopted at first reading on 11 April 2024 with a view to the adoption of Regulation (EU) 2024/… of the European Parliament and of the Council on the internal markets for renewable gas, natural gas and hydrogen, amending Regulations (EU) No 1227/2011, (EU) 2017/1938, (EU) 2019/942 and (EU) 2022/869 and Decision (EU) 2017/684 and repealing Regulation (EC) No 715/2009 (recast)

Removed:---------------------------------------------------------

Added:(As an agreement was reached between Parliament and Council, Parliament's position corresponds to the final legislative act, Regulation (EU) 2024/1789.)

Removed:2021/0424 (COD)

Removed:Proposal for a

Removed:REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

Removed:on the internal markets for renewable gas and natural gas and for hydrogen (recast)

Removed:THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

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

Removed:Having regard to the proposal from the European Commission,

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

Removed:Having regard to the opinion of the European Economic and Social Committee,

Removed:Having regard to the opinion of the Committee of the Regions,

Removed:Acting in accordance with the ordinary legislative procedure,

Removed:Whereas:

Removed:(1) Regulation (EU) No 715/2009 of the European Parliament and of the Council has been substantially amended several times. Since further amendments are to be made, that Regulation should be recast in the interests of clarity.

Removed:(2) The internal market in natural gas, which has been progressively implemented since 1999, aims to deliver real choice for all consumers in the Union, be they citizens or businesses, new business opportunities and more cross-border trade, so as to achieve efficiency gains, competitive prices and higher standards of service, and to contribute to security of supply and sustainability.

Removed:(3) The Commission communication of 11 December 2019 entitled ‘The European Green Deal’ and Regulation (EU) 2021/1119 of the European Parliament and of the Council set the target for the Union to reduce its emissions by at least 55% compared to 1990 levels by 2030 and become climate neutral by 2050 in a manner that contributes to Union competitiveness, growth and jobs. This Regulation should contribute to achieving those targets. For a decarbonised gas markets to be set up and contribute to the energy transition, significantly higher shares of renewable energy sources in an integrated energy system with an active participation of consumers in competitive markets are needed.

Removed:(3a) Recognising the volatilities created by the Union's overdependence on natural gas imports, in particular with regard to a monopolist supplier, and its wider geopolitical, security and economic impact, an effective policy and regulatory framework for internal market penetration of renewable gas and low-carbon gas, and in particular hydrogen, must ensure that the risk of sustained or new volatilities and dependencies on external suppliers are effectively addressed. To that end, the modernisation of existing and commissioning of new import infrastructure linking Member States and the internal market with third countries and external suppliers must take due account of the need for security of supply in terms of diversification of routes and suppliers, including by avoiding overdependence of any Member State on a single export country.

Removed:(3b) In light of the Russian Federation's unprovoked and unjustified military aggression against Ukraine and in order to prevent putting at risk the Union's energy security, the natural gas, renewable gas and low-carbon gas originating from the Russian Federation or other bodies controlled by Russian natural or legal persons or undertakings established in the Russian Federation, should be excluded from the Member States' and Union's imports.

Removed:(4) This Regulation aims to facilitate decarbonised, efficient and integrated energy systems consistent with the Commission communications of 8 July 2020 entitled ‘Powering a climate-neutral economy: An EU Strategy for Energy System Integration’ and ‘A hydrogen strategy for a climate-neutral Europe’, and the Commission Recommendation (EU) 2021/1749. Those initiatives call for transitioning to a more circular energy system with energy efficiency at its core, a greater direct electrification of end-use sectors, prioritising demand-side solutions whenever they are more cost-effective than investments in energy infrastructure, and using renewable fuels, including hydrogen, for end-use applications where electrification is not feasible, not efficient or has higher costs. Therefore, this Regulation should facilitate the penetration of renewable gas and low-carbon gas into the energy system enabling a shift from fossil gas, ▌ to allow such new gas to play an important role towards achieving the EU’s 2030 climate objectives and climate neutrality in 2050. Member States should eliminate any undue barriers in that regard. This Regulation aims also to set up a regulatory framework that enables and incentivises all market participants to take the transitional role of fossil gas into account while planning their activities to avoid lock-in effects and ensure gradual and timely phase-out of fossil gas notably in all relevant industrial sectors and for individual heating purposes, while mitigating increasing energy poverty.

Removed:(5) The EU hydrogen strategy recognises that, as EU Member States have different potential for the production of renewable hydrogen, an open and competitive EU market with unhindered cross-border trade has important benefits for competition, affordability, and security of supply. Moreover, it stresses that moving towards a liquid market with commodity-based hydrogen trading would facilitate entry of new producers and be beneficial for deeper integration with other energy carriers. It would create viable price signals for investments and operational decisions. The rules laid down in this Regulation should thus be conducive for hydrogen markets and commodity-based hydrogen trading and liquid trading hubs to emerge and any undue barriers in this regard should be eliminated by Member States. Whilst recognising the inherent differences, existing rules that enabled efficient commercial operations developed for the electricity and gas markets and trading should be considered for a hydrogen market.

Removed:(6) [Recast Gas Directive as proposed in COM(2021) xxx] provides for the possibility of a combined transmission and distribution system operator. The rules set out in this Regulation do not therefore require modification of the organisation of national transmission and distribution systems that are consistent with the relevant provisions of that Directive.

Removed:(7) It is necessary to specify the criteria according to which tariffs for access to the network are determined, in order to ensure that they fully comply with the principle of non-discrimination and the needs of a well-functioning internal market and take fully into account the need for system integrity and reflect the actual costs incurred, insofar as such costs correspond to those of an efficient and structurally comparable network operator and are transparent, whilst including appropriate return on investments, and enabling the integration of renewable gas and low-carbon gas. The rules on network access tariffs in this Regulation are complemented by further rules on network access tariffs, notably in the network codes and guidelines adopted on the basis of this Regulation, in [ TEN-E Regulation as proposed in COM(2020) 824 final], [Methane Regulation as proposed in COM(2021) xxx], Directive (EU) 2018/2001 and [Energy Efficiency Directive as proposed in COM(2021) 558 final].

Removed:(8) It is, generally, most efficient to finance infrastructure by revenues obtained from the users of that infrastructure and to avoid cross-subsidies. Moreover, such cross-subsidies would, in the case of regulated assets, be incompatible with the general principle of cost-reflective tariffs. In exceptional cases, such cross-subsidies could nonetheless bring societal benefits, in particular during earlier phases of network development where booked capacity is low compared to technical capacity and uncertainty as to when future capacity demand will materialise is significant. Cross-subsidies could therefore contribute to reasonable and predictable tariffs for early network users and de-risk investments for network operators, which could thus contribute to an investment climate supportive to the ▌decarbonisation objectives of the Union. In order to avoid undue and excessive cross-subsidies among first and future users of hydrogen networks, it should be possible for hydrogen network operators to spread network development costs over time by allowing Member States to provide for the possibility that future users pay part of the initial costs, by way of an inter-temporal cost allocation mechanism. The methodology and features of that mechanism should be approved by the regulatory authority. The mechanism should be accompanied by a State guarantee to cover the financial risk of hydrogen network operators. As a last resort measure where no more cost-efficient options are available, the regulatory authority should be able to allow, on the basis of an impact assessment, financial transfers between separate regulated services from gas and hydrogen networks. Cross-subsidies should not be financed by network users in other Member States and it is thus appropriate to collect financing for cross-subsidies only from exit points to final customers within the same Member State. Moreover, as cross-subsidies are exceptional, it should be ensured that they are proportional, transparent, limited in time and set under regulatory supervision, subject to notification to the Commission and recommendation by ACER.

Removed:(9) The use of market-based arrangements, such as auctions, to determine tariffs has to be compatible with the provisions in recast Gas Directive as proposed in COM(2021) xxx and Commission Regulation (EU) 2017/459.

Removed:(10) A common minimum set of third-party access services is necessary to provide a common minimum standard of access in practice throughout the Union, to ensure that third-party access services are sufficiently compatible and to allow the benefits accruing from a well-functioning internal market in natural gas to be exploited.

Removed:(11) Arrangements on third party access should be based on the principles laid down in this Regulation. The organisation of entry-exit systems, which enable a free allocation of gas on the basis of firm capacity, was welcomed by the XXIV. Madrid Forum already in October 2013. Therefore a definition of entry-exit system should be introduced and the integration of the distribution system level in the balancing zone be ensured, which would help to achieve a level playing field for renewable gas and low-carbon gas connected to either the transmission or distribution level. Tariff setting for distribution system operators and the organisation of capacity allocation between the transmission and distribution system should be left to the regulatory authorities on the basis of the principles enshrined in [recast Gas Directive as proposed in COM(2021) xxx].

Removed:(12) Access to the entry-exit system should be generally based on firm capacity. Network operators should be required to cooperate in a way that maximises the offer of firm capacity, which in turn enables network users to freely allocate the gas entering or exiting on the basis of firm capacity to any entry or exit point in the same entry-exit system.

Removed:(13) Conditional capacity should only be offered when network operators are not able to offer firm capacity. Network operators should define the conditions for conditional capacity on the basis of operational constraints in a transparent and clear manner. The regulatory authority should ensure that the number and type of conditional capacity products is limited to avoid a fragmentation of the market and to ensure compliance with the principle of providing efficient third-party access.

Removed:(14) A sufficient level of cross-border gas interconnection capacity should be achieved and market integration fostered in order to complete the internal market in natural gas.

Removed:(14a) The Commission communication of 8 March 2022 entitled ‘RePowerEU: Joint European Action for more affordable, secure and sustainable energy’ (RePowerEU) calls for urgent action to mitigate the impact of rising energy prices, diversify the Union gas supply and accelerate the clean energy transition. In order to allow renewable gas, such as biomethane and biogas, to play their important role towards achieving those goals, it is of the utmost importance to achieve by 2030 the production of 35 billion cubic meters (bcm) of biomethane per year within the Union. Achieving that should enable the replacement of 20 % of Russian natural gas imports with a sustainable, cheaper and locally produced alternative, as well as provide the Union with a more resilient and sustainable energy system. The 2030 goal for biomethane is based on the initial projections for production potential for biogas and biomethane, and it takes into account major changes in the energy area such as the high current prices of natural gas and a broad set of additional measures presented in the Commission Staff Working Document of 15 May 2022 entitled ‘Implementing the RepowerEU action plan: investment needs, hydrogen accelerator and achieving the bio-methane targets’ that target the expansion of production of sustainable biomethane and its use. For this scale-up to 35 bcm to happen not only the market integration of renewable gas should be fostered but also the necessary infrastructure should be developed in due time. Specifically, this means developing a strategic approach, based on regional maps identifying the areas that have the highest potential for production of sustainable biogas and biomethane from biomass, to overcome existing technical barriers to boost sustainable biomethane within the Union and to fully integrate biomethane into the current gas system.