What changed between the adopted text of 14 Sept 2022 and the adopted text of 11 Jul 2023

Removed:P9_TA(2022)0315

Added:P9_TA(2023)0263

Changed:Energy efficiency (recast) ***I

Committee on Industry, Research and Energy

PE703.281

Changed:Amendments adopted by the European Parliament onlegislative 14resolution Septemberof 202211 July 2023 on the proposal for a directive of the European Parliament and of the Council on energy efficiency (recast) (COM(2021)0558 – C9-0330/2021 – 2021/0203(COD))

(Ordinary legislative procedure - recast)

Removed:[Amendment 1, unless otherwise indicated]

Change 1

Added:The European Parliament,

Removed:AMENDMENTS BY THE EUROPEAN PARLIAMENT*

Added:– having regard to the Commission proposal to Parliament and the Council (COM(2021)0558),

Removed:to the Commission proposal

Added:– 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 (C90330/2021),

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

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

Removed:Proposal for a

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

Removed:DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

Added:– having regard to the opinion of the European Economic and Social Committee of 9 December 2021,

Removed:on energy efficiency (recast)

Added:– having regard to the opinion of the Committee of the Regions of 28 April 2022,

Removed:(Text with EEA relevance)

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

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

Added:– having regard to the letter of 6 September 2022 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,

Changed:Having– having regard to the Treatyprovisional onagreement approved by the Functioningcommittee responsible under Rule 74(4) of theits EuropeanRules Union,of Procedure and the undertaking given by the Council representative by letter of 29 March 2023 to approve Parliament’s position, in particularaccordance with Article 194(2)294(4) thereof,of the Treaty on the Functioning of the European Union,

Changed:Having– having regard to theRules proposal110 fromand the59 Europeanof Commission,its Rules of Procedure,

Change 2

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

Added:– having regard to the opinions of the Committee on the Environment, Public Health and Food Safety, the Committee on Transport and Tourism and the Committee on Women's Rights and Gender Equality,

Changed:Having– having regard to the opinionreport of the EuropeanCommittee Economicon Industry, Research and SocialEnergy Committee,(A9-0221/2022),

Change 3

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

Added: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;

Removed:Acting in accordance with the ordinary legislative procedure,

Added: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;

Removed:Whereas:

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

Removed:(1) Directive 2012/27/EU of the European Parliament and of the Council has been substantially amended several times. Since further amendments are to be made, that Directive should be recast in the interests of clarity.

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

Removed:(2) With the Climate Target Plan, the Commission proposed to raise the Union's ambition by increasing the greenhouse gas emissions (´GHG´) target to at least 55% below 1990 levels by 2030. That is a substantial increase compared to the existing 40% target. The proposal delivered on the commitment made in the Communication on the European Green Deal to put forward a comprehensive plan to increase the Union’s target for 2030 towards 55% in a responsible way. It is also in accordance with the objectives of the 21st Conference of the Parties to the United Nations Framework Convention on Climate Change (the ‘Paris Agreement’) to keep the global temperature increase to well below 2°C and pursue efforts to keep it to 1,5°C.

Added:P9_TC1-COD(2021)0203

Removed:(3) In December 2020, the European Council endorsed a binding Union target of a net domestic reduction of at least 55% in greenhouse gas emissions by 2030 compared to 1990. The European Council concluded that the climate ambition needed to be raised in a manner that would spur sustainable economic growth, create jobs, deliver health and environmental benefits for Union citizens, and contribute to the long-term global competitiveness of the Union´s economy by promoting innovation in green technologies.

Added:Position of the European Parliament adopted at first reading on 11 July 2023 with a view to the adoption of Directive (EU) 2023/… of the European Parliament and of the Council on energy efficiency and amending Regulation (EU) 2023/955 (recast)

Removed:(4) To implement those objectives, the European Commission 2021 Work Programme announced a ‘Fit for 55’ package to reduce GHG emissions by at least 55% by 2030, and to achieve a climate-neutral European Union by 2050. This package covers a range of policy areas including energy efficiency, renewable energy, land use, land change and forestry, energy taxation, effort sharing and emissions trading.

Added:(As an agreement was reached between Parliament and Council, Parliament's position corresponds to the final legislative act, Directive (EU) 2023/1791.)

Removed:(4a) The ‘Fit for 55’ package should safeguard and create jobs in the Union and enable the Union to become a world leader in the development and uptake of clean technologies in the global energy transition, with particular regard to energy efficiency solutions.

Removed:(5) Projections indicate that, with the full implementation of current policies, GHG emissions reductions by 2030 would be around 45% compared to 1990 levels, when excluding land use emissions and absorptions, and around 47%, when including these. The 2030 Climate Target Plan therefore foresees a set of actions required across all sectors of the economy and revisions of the key legislative instruments to reach that increased ambition.

Removed:(6) Energy efficiency is a key area of action, without which the full decarbonisation of the Union´s economy cannot be achieved. The need to capture the cost-effective energy saving opportunities has led to the Union´s current energy efficiency policy. In December 2018, a new 2030 Union headline energy efficiency target of at least 32,5% (compared to projected energy use in 2030) was included as part of the 'Clean Energy for All Europeans package’.

Removed:(7) To achieve the increased climate ambition, the impact assessment accompanying the Climate Target Plan has shown that energy efficiency improvements will need to be significantly raised from the current level of ambition of 32,5%. An increased ambition of the Union’s 2030 energy efficiency target can reduce the energy prices and be crucial in reducing greenhouse gas emissions, accompanied by an increase and uptake of electrification, hydrogen, e-fuels and other relevant technologies necessary for the green transition, including in the transport sector. Even with rapid growth of green electricity generation, energy efficiency can reduce the need of new power generation capacity. Increased energy efficiency is also highly important for the security of energy supply of the Union through lowering its dependence on import of fuels from third countries. Energy efficiency is one of the cleanest and most cost-efficient measures by which to address that dependency.

Removed:(8) The sum of national contributions communicated by Member States in their National Energy and Climate Plans (NECPs) falls short of the Union’s level of ambition of 32,5%. The contributions collectively would lead to a reduction of 29,4% for final energy consumption and 29,7% for primary energy consumption compared to the projections from the 2007 reference scenario for 2030. That would translate in a collective gap of 2,8 percentage points for primary energy consumption and 3,1 percentage points for final energy consumption for the EU 27. As regards the primary and final energy consumption figures for 2020 and the achievement of the Union target, they should be seen in the context of the temporary effects of the COVID-19 pandemic measures taken in 2020 that considerably slowed down economic activity and transport in particular. The reported levels of primary and final energy consumption for 2020 require careful analysis.

Removed:(9) While the energy savings potential remains large in all sectors, there is a particular challenge related to transport, as it is responsible for more than 30% of final energy consumption, and to buildings, since 75% of the Union´s building stock has a poor energy performance. Another increasingly important sector is the information and communications technology (ICT) sector, which is responsible for 5-9% of the world's total electricity use and more than 2% of all emissions. In 2018, data centres accounted for 2,7% of the electricity demand in the EU28. In that context, the Union’s Digital Strategy highlighted the need for highly energy-efficient and sustainable data centres and transparency measures for telecoms operators as regards their environmental footprint. Furthermore, the possible increase in industry’s energy demand that may result from its decarbonisation, particularly for energy intensive processes, should also be taken into account.

Removed:(10) The higher level of ambition requires a stronger promotion of cost-effective energy efficiency measures in all areas of the energy system and in all relevant sectors where activity affects energy demand, such as the transport, water and agriculture sectors. Improving energy efficiency throughout the full energy chain, including energy generation, transmission, distribution and end-use, will benefit the environment, improve air quality and public health, reduce GHG emissions, improve energy security by decreasing the need for energy imports, in particular of fossil fuels, cut energy costs for households and companies, help alleviate energy poverty, and lead to increased competitiveness, more jobs and increased economic activity throughout the economy, thus improving citizens' quality of life. That complies with the Union commitments made in the framework of the Energy Union and global climate agenda established by the 2015 Paris Agreement.

Removed:(10a) Improving the energy performance of various sectors, including transport and housing, has the potential to foster urban regeneration, employment, improvement of buildings and changes in mobility and accessibility patterns. It is therefore essential to promote more efficient, sustainable and affordable options.

Removed:(11) This Directive takes a step forward towards climate neutrality by 2050, under which energy efficiency is to be treated as an energy source in its own right. The energy efficiency first principle is an overarching principle that should be taken into account across all sectors, going beyond the energy system, at all levels, including in the financial sector. Energy efficiency solutions should be considered as the first option in policy, planning and investment decisions, unless that would lead to an increase of greenhouse gas emissions, when setting new rules for the supply side and other policy areas. While the energy efficiency first principle should be applied without prejudice to other legal obligations, objectives and principles, they should also not hamper its application or exempt from applying the principle. The Commission should ensure that energy efficiency and demand-side response can compete on equal terms with generation capacity. Energy efficiency improvements need to be made whenever they are more cost-effective than equivalent supply-side solutions. That should help exploit the multiple benefits of energy efficiency for the Union, in particular for citizens and businesses. Implementing energy efficiency improvement measures should also be a priority in alleviating energy poverty.

Removed:(12) Energy efficiency should be recognised as a crucial element and a priority consideration in future investment decisions on the Union's energy infrastructure. The energy efficiency first principle should be applied taking primarily the system efficiency approach and societal and health perspective into consideration, paying attention to security of supply, energy system integration and the transition to climate neutrality. Consequently, it should help increase the efficiency of individual end-use sectors and of the whole energy system. Application of the principle should also support investments in energy-efficient solutions contributing to environmental objectives listed in Regulation (EU) 2020/852 of the European Parliament and of the Council.

Removed:(13) The energy efficiency first principle was defined in the Regulation (EU) 2018/1999 of the European Parliament and of the Council and is at the core of the Energy System Integration Strategy. While the principle is based on cost-effectiveness, its application has wider implications from the societal perspective, which should be carefully evaluated through robust cost-benefit assessment methodologies that take into account the multiple benefits of energy efficiency. The Commission prepared dedicated guidelines for the operation and application of the principle, by proposing specific tools and examples of application in various sectors. The Commission has also issued a recommendation to Member States that builds on the requirements of this Directive and calls for specific actions in relation to the application of the principle. Member States should take the utmost account of that recommendation and be guided by it in implementing the energy efficiency principle in practice.

Removed:(13a) The energy efficiency first principle implies adopting a holistic approach, which takes into account the overall efficiency of the integrated energy system, security of supply and cost effectiveness and promotes the most efficient solutions for climate neutrality across the whole value chain, from energy production, network transport to final energy consumption, so that efficiencies are achieved in both primary and final energy consumption. That approach should look at the system performance and dynamic use of energy, where demand-side resources and system flexibility are considered to be efficiency solutions. At the same time, the principle can also be applied at a lower asset level when energy efficiency performance of specific solutions is to be identified and solutions are adapted to favour those with a higher efficiency where they also represent a cost-effective decarbonisation pathway.

Removed:(14) In order to have an impact, the energy efficiency first principle needs to be consistently applied by national, regional, local and sectoral decision makers in all relevant scenarios and policy, planning and major investment decisions – that is to say large-scale investments with a value of more than 50 euro million each or 75 euro million for transport infrastructure projects – affecting energy consumption, transmission, distribution, storage or supply. The proper application of the principle requires using the right cost-benefit analysis methodology, setting enabling conditions for energy efficient solutions and proper monitoring. Cost-benefit analyses should always be based on the most up-to-date information on energy prices and include scenarios for rising prices, such as due to decreasing ETS allowances, in order to provide an incentive to apply energy efficiency measures, and should be systematically developed, carried out and made publicly available. Priority should be given to demand-side solutions where they are more cost-effective than investments in energy supply infrastructure in meeting policy objectives. Demand side flexibility can bring wider economic, environmental and societal benefits to consumers and local communities, and can increase the efficiency of the energy system and decrease the energy costs, for example by reducing system operation costs resulting in lower tariffs for all consumers. Member States should take into account potential benefits from demand side flexibility in applying the energy efficiency first principle and where relevant consider demand response at both centralised and decentralised level, energy storage, and smart solutions as part of their efforts to increase efficiency of the integrated energy system.

Removed:(15) The energy efficiency first principle should always be applied in a proportional way and the requirements of this Directive should not entail overlapping or conflicting obligations on Member States, where the application of the principle is ensured directly by other legislation. This might be the case for the projects of common interest included in the Union list pursuant to Article 3 of Regulation (EU) 2022/869 of the European Parliament and of the Council, which introduces the requirements to consider the energy efficiency first principle in the development and assessment for those projects.

Removed:(16) A fair transition towards a climate-neutral Union by 2050 is central to the European Green Deal. Energy poverty is a key concept consolidated in the legislative package entitled ‘Clean Energy for All Europeans’ and designed to facilitate a just energy transition. Pursuant to Regulation (EU) 2018/1999 and Directive (EU) 2019/944 of the European Parliament and of the Council, the Commission provided indicative guidance on appropriate indicators for measuring energy poverty and defining what a ‘significant number of households in energy poverty’ is. Directive (EU) 2019/944 and Directive 2009/73/EC of the European Parliament and of the Council requires Member States to take appropriate measures to address energy poverty wherever it is identified, including measures addressing the broader context of poverty. This is particularly relevant in a context of rising energy prices and inflationary pressure, where both short and long-term measures should be implemented to address systemic challenges to the Union's energy system.

Removed:(17) Low and medium income households, vulnerable customers, including final users, people facing or risking energy poverty and people living in social housing, as well as SMEs and micro-enterprises, should benefit from the application of the energy efficiency first principle. Energy efficiency measures should be implemented as a priority to improve the situations of those individuals and households and to alleviate energy poverty and should not encourage any disproportionate increase in housing, mobility or energy costs. A holistic approach in policy making and in implementing policies and measures requires Member States to ensure that other policies and measures have no adverse effect on these individuals and households.