A wave of new EU legislation to decarbonise sectors across the economy and accelerate transformation of energy systems is coming into force. Our summaries of the initial proposals are here and here.

The following instruments have now been published in the OJEU and are in force. 

Effort Sharing Regulation

Regulation (EU) 2023/857 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 is in force.

The Regulation lays down obligations on Member States to fulfil the EU target of reducing emissions from sectors covered by the Regulation by 40% in 2030 below 2005 levels. Ireland is required to limit its emissions in 2030 by at least 42% in relation to its emissions in 2005. The Commission will adopt implementing acts setting out the annual emission allocations for Member States.

EU ETS and Social Climate Fund

The EU Emission Trading System has been revised to bring about a swifter reduction in emissions and to bring the aviation and maritime sectors within its scope.

Directive (EU) 2023/959 amending Directive 2003/87/EC establishing a system for greenhouse gas emission allowance trading within the Union and Decision (EU) 2015/1814 concerning the establishment and operation of a market stability reserve for the Union greenhouse gas emission trading system is in force.

Directive (EU) 2023/958 amending the Directive 2003/87/EC as regards aviation’s contribution to the Union’s economy-wide emission reduction target and the appropriate implementation of a global market-based measure is in force.

Regulation (EU) 2023/957 amending Regulation (EU) 2015/757 to provide for the inclusion of maritime transport activities in the EU Emissions Trading System and for the monitoring, reporting and verification of emissions of additional greenhouse gases and emissions from additional ship types is in force.

Regulation (EU) 2023/955 establishing a Social Climate Fund and amending Regulation (EU) 2021/1060 is in force.

Carbon Border Adjustment Mechanism

Regulation (EU) 2023/956 establishing a carbon border adjustment mechanism is in force.

The Commission is consulting until 11 July 2023 on a draft Implementing Regulation laying down the rules for reporting obligations during the transitional period. Further information is available here.

The transitional period will be followed by an obligation on companies importing certain goods from outside the EU to purchase CBAM certificates. The certificates will reflect the difference between the carbon price in the country of production and the price of carbon allowances in the EU ETS. In scope goods include cement, iron, steel, aluminium, fertilisers, hydrogen and electricity.

Land Use, Land Use Change and Forestry

Regulation (EU) 2023/839 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 is in force.

Vehicles

Regulation (EU) 2023/851 amending Regulation (EU) 2019/631 as regards strengthening the CO2 emission performance standards for new passenger cars and new light commercial vehicles in line with the Union’s increased climate ambition is in force.

The following proposals are nearing the final stages of the legislative process.

Renewable Energy Directive III

Trialogue negotiations have concluded and there is agreement on the final text (with corrigendum here).

Energy Efficiency Directive

Trialogue negotiations have concluded and there is agreement on the final text. Once approved and formally adopted by the Parliament in plenary and the Council, it will be published in the OJEU and then enter into force.

Energy Performance of Buildings Directive

The Council adopted its position. The Parliament has also now adopted amendments to the proposal at first reading and referred the proposal for trialogue.

Regulation on Alternative Fuels Infrastructure

Trialogue negotiations have concluded and there is agreement on the final text. Once approved and formally adopted by the Parliament in plenary and the Council, it will be published in the OJEU and then enter into force.

Internal Market in Renewable and Natural Gas and Hydrogen

Trialogue negotiations are underway. The institutions’ positions on the Regulation are available here and on the Directive, here. The Oireachtas Joint Committee on Environment and Climate Action made a submission here.

Regulation on Methane Emissions in the Energy Sector

Amendments to the proposal have been adopted by the Parliament at first reading and trialogue negotiations are expected to begin. The above submission from the Oireachtas Joint Committee on Environment and Climate Action also applies to this proposal.