European Council
Council of the European Union
Language selection

Energy union

Infographic - National energy and climate plans

The main 2030 priorities for national climate and energy plans include reduction of greenhouse gas emissions, a minimum share of renewable energy and more electricity interconnection. See full infographic

Energy moves the world. The EU's economy and the well-being of Europeans rely on stable and affordable energy supply. EU member states have agreed on common rules and targets to secure the supply of clean energy, under the energy union strategy. 

The energy union explained: rules and targets

The energy union strategy has the vision of ensuring affordable, secure and sustainable energy for Europe and its citizens. Presented by the European Commission in 2015, as a response to a request by EU heads of state and government, the strategy rests on five pillars:

  • energy security
  • an integrated internal energy market
  • energy efficiency
  • decarbonising the economy
  • research and innovation

In 2016, the Commission presented a package of legislative proposals called 'Clean energy for all Europeans' to translate the strategy into reality. The Commission's proposals were discussed within the Council, as well as at the European Parliament and negotiations started in 2017. By May 2019, all pieces of legislation comprised in the package were adopted, thereby completing the energy union.

The key milestones of this process were:

  • May 2019: regulation and directive on electricity, regulation on risk-preparedness and overhaul of Agency for the Cooperation of Energy Regulators
  • December 2018: revised directive on energy efficiency, revised directive on renewables, governance regulation
  • May 2018: revised directive on energy efficiency of buildings

As part of the package, the EU also revised the EU energy targets for 2030 as follows:

  • at least 32.5% more energy efficiency by cutting energy consumption
  • at least 32% share of renewables

National energy and climate plans

On the basis of the governance regulation, which entered into force in December 2018, EU member states are required to report on their contribution to the energy union. This is done via national energy and climate plans (NECPs), which cover a 10-year period and are to be updated on a regular basis. The first NECPs cover the period 2021-2030.  

Why do we need the energy union?

The energy union responds to key challenges the EU faces in the field of energy. These are:

  • climate change: the EU is committed to climate neutrality by 2050, and reducing energy-related emissions is one of the key actions
  • energy dependence: as the largest energy importer in the world, the EU needs to reduce its dependence on external markets
  • ageing infrastructure: the EU has to fully integrate its energy markets, modernise its energy infrastructure and ensure coordination on national energy prices 

Creating an entirely functional energy union helps boost the EU’s economy, its energy security and its commitment to fighting climate change, while delivering increased choice and lower prices for EU consumers and businesses.  

Image: Drought caused by climate change

Taking the lead on climate change

The EU is committed to spearheading the global fight against climate change. EU leaders aspire to the ambitious goal of making Europe climate-neutral by 2050, in line with the Paris Agreement. By working together in the coming decades, EU countries want to ensure that greenhouse gas emissions are reduced to a minimum and measures are taken to offset any remaining emissions.

Timeline
Filters

2019

Energy Union: Council adopts conclusions on future of energy systems

The Council adopted a set of conclusions on the future of energy systems in the Energy Union. They identify priorities and principles for future policy-making aimed at ensuring the energy transition towards an affordable, safe, competitive, secure and sustainable energy system. 

As part of preparations for the next legislative term, the conclusions call on the European Commission to take into account the principles highlighted in the text when presenting new legislative proposals. 

Clean energy for all: EU completes policy reform

Infographic - Clean energy for Europeans: Key for driving forward the Energy Union

Clean energy for Europeans See full infographic

The EU has completed the overhaul of its energy policy framework, which enables the transition to clean energy and sets the EU on the path towards achieving its Paris Agreement commitments.

The Council made this possible by adopting the four remaining files of the "Clean energy for all Europeans" package:

  • a regulation and a directive on electricity - which aim to make the EU's electricity market more interconnected, flexible and consumer-centred
  • the regulation on risk-preparedness in the electricity sector - which will ensure the security of electricity supply in crisis situations
  • an overhaul of the role and functioning of ACER - which is the the Agency for the Cooperation of Electricity Regulators

Gas directive: Council adopts amendment extending EU rules

The rules governing the EU's internal gas market will in future also apply to pipelines to and from third countries. The Council formally adopted an amendment to the so-called gas directive which aims at closing a legal gap in the EU's regulatory framework and boosting competition in the gas market. This is the final step in the legislative process.

The new directive will enter into force 20 days after its publication in the Official Journal of the European Union. Member states will have 9 months from entry into force to transpose the new rules into national law.

Gas directive: provisional deal on rules for gas pipelines to and from third countries

The rules governing the EU's internal gas market will in future also apply to gas pipelines to and from third countries.

This will make the EU's legal framework more consistent, enhance transparency and ensure legal certainty for both investors in gas infrastructure and users of the network.

The presidency of the Council reached a provisional agreement with the European Parliament on an amendment to the so-called gas directive. This deal is subject to endorsement from both the Parliament and the Council before it can become law.

This agreement fills a gap in the EU's legislative framework in the energy field and will ensure that the rules of the Energy Union are applied consistently across the EU.

Anton Anton, Energy minister of Romania

EU energy efficiency rules adapted in view of Brexit

The EU is updating the energy consumption figures in the newly revised energy efficiency directive to take account of the withdrawal of the UK from the EU.

This technical adjustment, which concerns projected EU energy consumption in 2030, was endorsed by EU ambassadors, paving the way for a speedy adoption.

Council endorses agreement on reform of Europe's electricity market

Europe's electricity market rules are being updated to improve their functioning, empower consumers and pave the way for the clean energy transition.

EU member states' ambassadors approved an agreement with the European Parliament on a directive and a regulation on electricity market design. This clears the way for the final adoption of the two files, which are cornerstones of the clean energy package.

The deal with the European Parliament was reached on 19 December 2018.

2018

Provisional deal on Europe's new electricity market rules

The EU is updating its electricity market rules for a stronger, greener and more connected European grid

The Presidency of the Council and the European Parliament reached a provisional agreement on a directive and a regulation on electricity.

They set out the future functioning of the EU's electricity market and are cornerstones of the clean energy package.

The aim of the directive on electricity is to ensure that the EU's electricity market is competitive, consumer-centred, flexible and non-discriminatory. The agreement gives more rights to consumers while protecting vulnerable customers. 

The deal still has to be endorsed by the Council and the European Parliament.

Provisional deal on EU agency for energy regulators

ACER aims to ensure easy cross-border flow of electricity and natural gas in the EU

The Presidency of the Council and the European Parliament reached a provisional agreement on the revised regulation regarding the Agency for the Cooperation of Energy Regulators (ACER).

The deal still needs to be endorsed by EU member states.

The regulation updates the role and functioning of the agency, including the tasks of its director and board of regulators.

ACER was created in 2011.

EU ambassadors support new rules for security of electricity supply

A new framework of rules on how to prevent, prepare for and manage electricity crisis situations will lead to better risk preparedness and strengthen the energy security pillar of the Energy Union.

EU ambassadors endorsed an agreement reached with the European Parliament on 22 November on a regulation setting out these new rules.

Energy efficiency, renewables, governance of the Energy Union: Council signs off on 3 major clean energy files

By 2030, 32% of the energy consumed in the EU will come from renewables


By 2030, the EU will have to get 32% of its energy from renewable sources and reach an energy efficiency headline target of 32.5%. These new goals are set out in a revised directive on energy efficiency and a revised directive on renewable energy adopted by the Council.

The Council also signed off on the so-called governance regulation, which sets out the framework for the governance of the Energy Union and climate action.

This completes the final stage in the legislative procedure for the three files, which are part of the Clean energy package.

Governance of the Energy Union: Council confirms deal

EU ambassadors confirmed the provisional agreement on the Energy Union governance regulation.

The Bulgarian presidency of the Council and the European Parliament had reached this agreement on 19-20 June. 

The governance regulation is a key part of the Clean energy package. It is the 'umbrella' piece of legislation intended to ensure that the EU's 2030 energy and climate targets are achieved.

Renewable energy: Council confirms deal

EU ambassadors endorsed the provisional agreement on the revision of the renewable energy directive. 

The Bulgarian presidency of the Council had reached a deal on this dossier with the European Parliament on 14 June. 

This new regulatory framework will pave the way for Europe's transition towards clean energy sources such as wind, solar, hydro, tidal, geothermal, and biomass energy.

The agreement sets a target of 32% energy from renewable sources at EU level for 2030. 

Council agrees to update role of EU agency for energy regulators

The EU agency for cooperation of energy regulators (ACER) ensures smooth flow of electricity and natural gas across borders

The Council today reached a general approach on a regulation updating the role of ACER, the EU Agency for the Cooperation of Energy Regulators. 

The objective of the regulation is to improve collaboration between national electricity and gas regulators. 

With this agreement in place, the Presidency of the Council of the European Union can start negotiations with the European Parliament. 

The proposal to revise the ACER regulation is part of the Clean energy package. 

Energy efficient buildings: Council adopts revised directive

The Council today completed the final stage in the legislative procedure regarding the energy efficiency of buildings by adopting a revised directive.

This improves energy efficiency of buildings and encourages renovation. The long-term goal is to decarbonise the existing, highly inefficient European building stock. It is part of the Clean energy package. 

Energy efficient buildings: EU ambassadors endorse deal

EU ambassadors confirmed the political agreement regarding the revised directive on the energy performance of buildings. This deal was reached between the Estonian presidency and the European Parliament in December 2017.

The directive will improve energy efficiency in buildings and encourage building renovation.

One of its long-term goals is decarbonising the existing, highly inefficient European building stock. 

This directive supports cost-effective renovation works, introduces a smartness indicator for buildings, simplifies the inspections of heating and air conditioning systems and also promotes electro-mobility by creating parking spaces for electric vehicles.

2017

Energy efficient buildings: Provisional deal

The Estonian presidency reached a provisional agreement with the European Parliament on a revised directive on the energy performance of buildings. The final analysis and approval of the agreement is expected to take place at the beginning of 2018.

This directive encourages energy efficiency and will increase energy savings in the building sector. It also updates existing rules by taking into account recent technological developments.

Once implemented, this directive is expected to help decrease the energy consumption of buildings, which currently accounts for 40% of total energy consumption in the EU. This will also contribute significantly to reaching the EU's 2020 and 2030 energy efficiency targets.

Clean energy package: Council agrees its position on key initiatives

The Council agreed its negotiating positions on four legislative proposals of the Clean energy package:

  • governance
  • renewable energy
  • internal electricity market (two initiatives)

This package is an important component of the Energy Union strategy which aims to ensure affordable, secure and sustainable energy for European citizens and businesses.

Clean energy is also key to reaching the European Union's 2030 energy and climate goals. 

Council adopted regulation on security of gas supply

Following the adoption by the Council, the revised regulation on measures to safeguard the security of gas supply will enter into force four days after being published in the Official Journal of the European Union.

The general purpose of the regulation is to reinforce the European Union energy security, reducing its dependency on others for energy supplies and enabling it to deal more quickly and efficiently with any gas supply crises.

It will also contribute to a better functioning internal energy market.

In addition, it will help build greater trust and solidarity both within the EU and with its partners from the Energy Community.

Council adopted regulation on energy efficiency labelling

The new regulation on energy labelling will make customers more aware of the energy efficiency and energy consumption of household appliances. This will help them to reduce energy costs and contribute to the moderation of energy demand.

The ultimate goal of the regulation is to ensure that the European Union's 2020 headline targets and 2030 climate and energy goals are met.

Ministers generally agreed that increasing energy efficiency will have great benefits from the environmental and energetic point of view. 

However, several member states drew attention to specific national circumstances and to the importance of taking into account - after 2020 - long-term measures already launched.

Council agreed position on two energy efficiency directives

EU ministers reached and agreement regarding two revised directives:

  • on increased energy efficiency - for progress towards EU's climate and energy goals
  • on energy performance of buildings - for increased energy savings and better living conditions

This agreed position will allow the Council to enter into negotiations with the European Parliament as part of the co-decision legislative procedure. 

Provisional agreement on the security of gas supply

The Council and the European Parliament reached a temporary agreement on a revised regulation on measures to safeguard the security of gas supply.

The main new elements of the regulation are:

  • enhanced regional cooperation and coordination set on risk-based groups of member states
  • regional preventive action plans and emergency plans, as well as regional risk assessments, to be prepared member states
  • a solidarity mechanism for extreme crisis scenarios
  • increased monitoring of provisions in the gas supply contracts
  • specific obligations of EU member states towards the Energy Community, as well as Commission powers to coordinate the application of the legal framework between the EU and the Energy Community

Clean Energy for all Europeans

Ministers gave their first reactions to the Commission's legislative package on Clean Energy for all Europeans. This initiative has three main goals:

  • putting energy efficiency first
  • achieving global leadership in renewable energies
  • providing a fair deal for consumers

The Clean energy package includes proposals on important areas such as electricity market design, energy efficiency, security of supply, renewables and governance rules.

The overall aim of the strategy is to transform the EU into a low carbon economy by 2030. Ministers acknowledged the importance of this legislation and underlined the need to make progress on all the proposals.

2016

Energy Council discussed the security of gas supply

The Council discussed a draft regulation on measures to safeguard the security of gas supply across the EU.

The regulation aims to establish a cost-effective EU regional framework capable of reducing the impact of a potential gas disruption. EU ministers reached a compromise on the main issues:

  • regional cooperation: based on groups of member states identified on the basis of the main risks to the EU's gas supply
  • exchange of information: long-term contracts which provide 40% or more of annual gas consumption in an EU country would be notified to the European Commission and to national authorities
  • solidarity: member states can take into account national differences when calculating compensations

European Council called for the completion of the Energy Union

The European Council called for the Energy Union to be completed and implemented by 2018.

Position on information exchange for energy deals

The Council agreed a general approach on a draft decision to establish a mechanism for information exchange about international energy agreements between member states and non-EU countries.

This initiative is one of the building blocks of the Energy Union strategy. It aims to:

  • improve the functioning of the internal energy market
  • enhance the transparency and consistency of the EU's external energy relationships
  • strengthen its negotiating stance with third countries

The Council also discussed the proposal for a revised regulation on safeguarding the security of gas supply by minimising the impact of potential disruptions. The related measures aim to improve cooperation between member states. They are based on the achievements of the internal energy market. The main changes proposed:

  • greater regional cooperation and coordination
  • regional preventive action and emergency plans, as well as regional risk assessments
  • a new solidarity principle for extreme crisis scenarios
  • stricter obligations to ensure availability of the necessary infrastructure

Commitment to reduce EU greenhouse gas emissions

The European Council underlined the EU's commitment to reduce greenhouse gas emissions domestically.

EU leaders also promised to increase the share of renewable energies and to improve energy efficiency, as agreed by the European Council in October 2014. 

2015

European Council assessed the Energy Union progress

The European Council assessed progress in building the Energy Union and called for:

  • swift submission of the relevant legislative proposals in line with its previous guidance
  • full implementation of the legislation on renewable energy, energy-efficiency and other measures, such as improved investment opportunities, in order to meet the 2020 target
  • preparation of an integrated strategy on research, innovation and competitiveness

Climate change: Paris Agreement reached

During the Paris climate conference, which took place from 30 November to 12 December, a new global agreement on climate change was reached.

The agreement includes an action plan to limit global warming to 'well below' 2°C and to pursue efforts to limit it - further - to 1.5°C.

Progress on governance and energy efficiency

The Council adopted conclusions on the governance structure of the Energy Union. It intends to guide the Commission in its work.

The governance system monitors the EU's collective progress towards the achievement of EU energy and climate targets. Five broad areas are covered:

  • energy security, solidarity and trust
  • the internal energy market
  • reduction of energy demand through energy efficiency
  • decarbonisation of the economy
  • research, innovation and competitiveness

EU ministers also adopted a general approach on a draft regulation setting a framework for energy efficiency labelling.

Energy labels help consumers choose energy-efficient products. They also contribute to an overall reduction of energy demand at EU level by allowing customers to make informed decisions.

The main objective of the proposal was to support innovation and the production of ever more energy-efficient products.

Conclusions on the Energy Union implementation

The Council adopted conclusions on the implementation of the Framework Strategy for the Energy Union.

It focused on how to provide consumers - both households and businesses - with secure, sustainable and affordable energy. It also encouraged the promotion of the necessary investments in the energy sector.

Ministers agreed on essential elements of the EU energy policy:

  • diverse supply routes and sources
  • regional cooperation
  • energy market
  • infrastructure development

The energy ministers also assessed the implementation of the energy security strategy and discussed its future developments, especially security of supply.

European Council discussed energy security and transparency

The European Council agreed the first steps to establish the Energy Union. The EU leaders' discussion focused on energy security and transparency. Accordingly, all gas contracts should:

  • be in line with EU law
  • be more transparent
  • not negatively impact Europe's energy security

The EU heads of state and government also agreed to develop innovative strategies for a new generation of renewable energies, increase energy efficiency and step up EU climate diplomacy for a successful Paris Agreement.

The Energy Union proposal on track

The EU ministers for the environment discussed the aspects of the Energy Union Package related to climate policy, especially the decarbonisation of the economy.

Ministers pointed out that decarbonisation should be part of the 2030 climate and energy policy framework, which had already been agreed by the European Council in October 2014.

Ministers agreed on the key role of the emissions trading system (ETS) for achieving the EU's 2030 emission reduction target.

The results of the environment ministers' debates provided a broad input for the 19-20 March European Council discussion on the Energy Union.

First discussion on the Energy Union package

The Transport, Telecommunications and Energy Council (TTE) exchanged views on a European Commission proposal for the Energy Union strategic framework. In particular, the ministers discussed issues such as:

  • energy security
  • completion of the internal energy market
  • energy efficiency
  • decarbonisation of the economy
  • competitiveness

Ministers were cautious about increasing the transparency of contracts related to intergovernmental agreements and commercial supply. They also stressed the need to respect member states' national powers over their energy related decisions.

In addition, the Council held a policy debate on the developments and priorities for energy infrastructure.

European Commission advanced the Energy Union proposal

The European Commission's Energy Union package aims to complete the single energy market while reforming the production, transport and consumption of energy in Europe.

The package includes three 'communications':

  • a framework strategy for the Energy Union, its goals and concrete steps 
  • the measures needed to achieve the target of 10% electricity cross-border interconnections by 2020
  • the EU's vision for the Paris Climate Conference scheduled between 30 November and 12 December 2015

2014

EU leaders asked for an Energy Union proposal

EU leaders asked the European Commission to issue a proposal for an European Energy Union to connect networks across borders, improve Europe's energy security and cut its emissions. 

Climate and energy policy framework for 2030

The European Council emphasised its call for the creation of an Energy Union that offered affordable, secure and sustainable energy.

At the same time, it recommended further measures to reduce the EU's energy dependence and increase the security of its electricity and gas supplies.

EU leaders agreed the climate and energy policy framework for 2030. They endorsed four targets:

  • a binding objective to reduce greenhouse gas emissions by 40% by 2030, compared to 1990 levels
  • a target of at least 27% for the share of renewable energy consumed in 2030
  • a 27% improvement in energy efficiency
  • the completion of the internal energy market

European Council: Energy Union is a strategic EU objective

The European Council set the creation of an Energy Union as one of the five main objectives of the European strategic agenda, which sets out EU's priorities for the years to come.

The Energy Union's objective is threefold:

  • provide affordable energy for businesses and consumers
  • secure energy for all EU countries by reducing EU's energy dependency
  • generate more green energy and continue the fight against climate change