ACTS AWAITING COMMENCEMENT
Energy (Windfall Gains in the Energy Sector) (Cap on Market Revenues) Bill
The purpose of this Bill is to give full effect to Articles 6, 7, 8 and 10 of Council Regulation (EU) 2022/1854 of 6 October 2022 on an emergency intervention to address high energy prices ("Emergency EU Regulation") and for that purpose to implement a cap on market revenues received by generators from the sale of electricity produced from certain sources (including wind and solar energy) for the period beginning on 1 December 2022 and ending on 30 June 2023, and other related matters.
This Bill follows the Energy (Windfall Gains in the Energy Sector) (Temporary Solidarity Contribution) Act 2023 (commenced on 28 July 2023) which was enacted give effect to Articles 14, 15, 16 and 18 of the Emergency EU Regulation, providing for the payment of a 'temporary solidarity contribution' by companies active in the fossil fuel sector in respect of taxable profits in the years 2022 – 2023.
The measures required to be introduced in Ireland pursuant to the Emergency EU Regulation were originally intended to be implemented under one piece of legislation, as set out in the General Scheme of the Energy (Windfall Gains in the Energy Sector) Bill 2023 published 21 March 2023. However, these measures have been introduced separately (under this Bill and the Energy (Windfall Gains in the Energy Sector) (Temporary Solidarity Contribution) Act 2023 respectively) due to the complexity of the subject matter.
Latest Stage: This Act was signed by the President on 17 November 2023.
BILLS
Gas (Amendment) Bill
This bill amends the Gas Acts, to facilitate the integration of Ervia into Gas Networks Ireland.
Latest stage: Committee stage, Dáil Éireann.
EU REGULATIONS
Regulation Establishing a Carbon Border Adjustment Mechanism (“CBAM”)
Date published: 16 May 2023
As part of the ‘Fit for 55’ Package, the purpose of the CBAM is to prevent carbon leakage by ensuring equivalent carbon pricing for imports and domestic products. The CBAM will be phased in over time, and will initially apply to importers of iron, steel, cement, fertiliser, aluminium and electricity only. The regulation provides for a transitional phase which imposes reporting obligations without financial adjustments. From 2026 onwards, the CBAM will be fully effective.
Latest stage: Applies from 1 October 2023 with some exceptions:
- Articles 5, 10, 14, 16 and 17 shall apply from 31 December 2024;
- Article 2(2) and Articles 4, 6-9, 15 and 19, Article 20(1), (3), (4) and (5), Articles 21 to 27 and 31 shall apply from 1 January 2026
Regulation amending the Effort Sharing Regulation
Date published: 14 July 2021
The Effort Sharing Regulation (Regulation (EU) 2018/842) sets greenhouse gas emissions reduction targets based on GDP per capita for Member States, and also some industry specific targets such as for transport, agriculture, buildings and waste. As part of the EU’s ‘Fit for 55’ package, this Regulation strengthens emissions reduction targets.
Latest stage: Entered into effect on 16 May 2023
Council Regulation on an emergency intervention to address high energy prices
Date published: 6 October 2022
On 30 September 2022, EU energy ministers reached agreement at an extraordinary Council meeting on a regulation to introduce a number of exceptional measures to reduce the impact of high energy prices on consumers across Europe , including, for example, reducing electricity demand and collecting and redistributing the energy sector’s surplus revenues to final customers.
As of 6 October 2022, the EU Member States have formally adopted the regulation. However, due to the discretion afforded to EU Member States regarding how to apply certain measures, some national implementing legislation is required to give full effect to the regulation (eg, the Energy (Windfall Gains in the Energy Sector) (Cap on Market Revenues) Bill introduced to give effect to the electricity market revenue cap).
The measures are temporary and extraordinary in nature and will apply from 1 December 2022 to 31 December 2023, and it is estimated that during this time that they will raise €140 billion. The Council regulation sets a voluntary overall reduction target of 10% of gross electricity consumption and a mandatory reduction target of 5% of the electricity consumption in peak hours. Member States will identify 10% of their peak hours between 1 December 2022 and 31 March 2023 during which they will reduce the demand.
Member States will be free to choose the appropriate measures to reduce consumption for both targets in this period.
Latest stage: Applies until 31 December 2023 with the following exceptions:
- Article 4 apply from 1 December 2022 to 31 March 2023;
- Articles 5 and 10 applied from 1 December 2022
- Articles 6, 7, and 8 apply from 1 December 2022 to 30 June 2023
- Article 20(2) shall apply until 15 October 2024
EU DIRECTIVES
Third Renewable Energy Directive ("RED III")
Date published: 31 October 2023
RED III amends and updates the second Renewable Energy Directive (EU/2018/2001) on the promotion of the use of energy from renewable sources. RED III introduces a number of changes which will have a significant impact on Irish energy sector in the coming years. RED III increases renewable energy targets for Member States which must now ensure that at least 45% of gross final consumption of energy in 2030 comes from renewable sources. In accordance with REPower EU, RED III also implements new rules to streamline the permit-granting processes applicable to renewable energy, including environmental impact assessments.
We have summarised the key elements of RED III here.
Latest stage: Entered into effect on 20 November 2023.
EU DRAFT LEGISLATION
Proposal for a Regulation on Substances that Deplete the Ozone Layer
Procedure reference: 2022/0100/COD
Date published: 5 April 2022
Ozone depleting substances are human-made chemicals which damage the ozone layer and also have high global warming potentials. Following the adoption of the Montreal Protocol on Substances that Deplete the Ozone Layer in 1987, positive benefits have been achieved both in relation to reducing the ozone hole and global warming.
Regulation (EC) No 1005/2009 (the "ODS Regulation"), is the primary legislation dealing with ozone depleting substances in the EU. The regulation was submitted for a 'REFIT' evaluation, which suggested a number of improvements, including better alignment with the European Green Deal. This proposal would replace the ODS regulation setting out additional emission reductions to further align with the Green Deal, provide enhanced monitoring of ODS including uncontrolled substance, and improve the efficiency of existing rules to reduce administrative costs and generally improve the coherence with other rules.
Latest stage: Text adopted by Parliament on 30 March 2023. Awaiting Council's position.
Proposal for a Revised Gas Regulation
Procedure reference: 2021/0424 (COD)
Date published: 15 December 2021
Complementary to the EU’s ‘Fit for 55’ package, the Commission has proposed a new regulatory framework which aims to decarbonise gas markets, establish a competitive hydrogen market and reduce methane emissions. As part of this framework, the Commission is proposing to recast Regulation (EU) No 715/2009 (the “Gas Regulation”). The recast Gas Regulation prescribes rules for access to natural gas and hydrogen systems with a view to ensuring the functioning of internal EU gas markets.
Latest stage: First reading in the Council.