3. The Renewable Energy Directives (RED I, II, III)
Section outline
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- Set a binding EU-wide target of 20% of final energy consumption from renewable sources by 2020.
- Introduced sustainability criteria for biofuels and required Member States to submit National Renewable Energy Action Plans (NREAPs).
- Established a system for Guarantees of Origin (GOs) for tracking electricity generated from renewables.
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The Renewable Energy Directive (2018/2001/EU) entered into force in December 2018, as part of the Clean energy for all Europeans package, aimed at maintaining the EU’s status as a global leader in renewables and, more broadly, helping it to meet its emissions reduction commitments under the Paris Agreement.
It established a new binding renewable energy target for the EU for 2030 of at least 32%, with a clause for a possible upwards revision by 2023. This target is a continuation of the 20% target for 2020. In order to help EU countries deliver on this target, the directive introduced new measures for various sectors of the economy, particularly on heating and cooling and transport, where progress has been slower (for example, an increased 14% target for the share of renewable fuels in transport by 2030). It also includes new provisions to allow citizens to play an active role in the development of renewables by enabling renewable energy communities and self-consumption of renewable energy and established better criteria to ensure bioenergy's sustainability.
- Increased the 2030 target to 32% renewable energy in gross final consumption.
- Included binding sustainability criteria for solid and gaseous biomass fuels used in electricity and heating.
- Strengthened provisions for consumer rights, energy self-consumption, and storage.
- Obligated Member States to develop integrated National Energy and Climate Plans (NECPs).
Given the need to speed up the EU’s clean energy transition, the Renewable Energy Directive EU/2018/2001 was revised in 2023.
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The amending Directive EU/2023/2413 entered into force on 20 November 2023, whith an 18-month period to transpose most of the directive's provisions into national law, with a shorter deadline of July 2024 for some provisions related to permitting for renewables.
- Raised the EU-wide renewable target to 42.5% by 2030, with an additional 2.5% indicative top-up.
- Introduced faster permitting procedures: Renewable energy projects in “go-to” areas must be approved within 12 months.
- Mandated sector-specific targets such as:
- 49% RES share in buildings.
- 29% RES share in industry.
- A 5.5% share of advanced biofuels and RFNBOs in transport.
- Promoted cross-border cooperation and joint renewable projects among Member States.
The main differences between RED II and RED III focus on setting significantly more ambitious and binding targets compared to RED II. With regard to permitting, RED III introduces simplified processes to address the obstacles identified during the implementation of RED II. This development marks a stronger commitment by the European Union to align energy systems with the objectives of climate neutrality by 2050. The main differences can be summarized in the table below.
RED II (2018)
RED III (2023)
Global Objective
32% of renewable energy in gross final energy consumption by 2030.
42,5% (mandatory) with na aspirational goal of 45%
Sectoral Goals
Incentivized, but not binding for specific sectors
Binding targets for the transport, industry and heating/cooling sectors.
Transports
14% renewable energy in transport by 2030.
29% reduction in the intensity of GHG emissions or 14.5% of renewables in transport.
Bioenergy
Sustainability rules introduced for bioenergy
Sustainability criteria strengthened with stricter measures.
Licensing
General framework for approval of renewable projects.
Simplified and faster licensing processes.
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