Content updated 16 May 2023
Renewable Energy Directive
The Renewable Energy Directive was revised in 2018 and is legally binding since June 2021. A provisional agreement on the Renewable Energy Directive (REDIII) was reached between the European Council, European Parliament, and the European Commission on 30 March 2023.
The scope of REDIII has expanded compared to previous versions. Demand sectors are now covered more comprehensively, and the proposed Directive includes several sub-targets for industry, transport, heating and cooling, and buildings.
The aim is to create an energy efficient and circular energy system based on renewable energy and promote the use of renewable and low-carbon fuels (including hydrogen) in sectors where electrification is not yet feasible.
View the press release here
Targets of renewable energy sources
Member states have committed to collectively reach a share of at least 42.5% of renewable energy sources (RES) in the EU’s gross final energy consumption by 2030. There is also an option for an additional 2.5% indicative top-up, increasing the overall target to 45%.
The 42.5% target roughly means doubling the share of renewables in the EU’s energy mix, compared to the current 22.1% level, according to EU statistics. The previous target set by the Renewable Energy Directive II was 32%.
The proposed directive includes an increased renewables ambition in key sectors, such as:
- Heating and cooling, including a mandatory annual increase of 1.1% share of Renewable Energy Sources (RES);
- transport, industry, buildings (indicative 49% RES share by 2030)
The proposal also includes
- Boosting the deployment of and the investment in renewable energy, including small-scale RES in buildings;
- Sustainable bioenergy reinforced criteria in line with the EU Biodiversity Strategy;
- Measures to foster Energy System Integration and consumer empowerment, including via Renewable Energy Communities, self-consumption, and prosumers
Biomass
Biomass currently contributes around 60% of EU renewable energy, across the electricity, heat and transport sectors. It will be needed to meet the increased renewable energy target of 42.5% in 2030.
A sticking point for REDIII negotiators was greeing on the sustainability criteria for forest biomass. Mandatory sustainability criteria for biomass used in heat and power were introduced to the previous version of the directive (REDII) from 2021.
Initially, the European Parliament initially sought to end subsidies for biomass and exclude primary wood burning from the EU’s renewable energy targets but the move was resisted by countries relying on biomass for a significant share of their energy. Some parties pushed to further strengthen those criteria to ensure sustainable biomass use.
