IRISH LEGISLATION PASSED SINCE THE AUTUMN HORIZON TRACKER
Oil Emergency Contingency and Transfer of Renewable Transport Fuels Functions Act 2023
Signed into law: 24 February 2023
The purpose of this act is to provide for the making of an oil emergency plan, amending the National Oil Reserves Agency Act 2007, and to strengthen statutory provisions in the event of an oil emergency to ensure that there are sufficient supplies for critical services. Additionally under the legislation renewable transport fuel functions are transferred from the Minister for the Environment, Climate and Communications to the Minister for Transport, allowing the Minister for Transport to make regulations increasing the use of renewable transport fuels.
Latest stage: The act came into operation on 28 February.
IRISH PROPOSED LEGISLATION
Energy (Windfall Gains in Energy Sector) Bill 2023
The purpose of this proposed legislation is to implement Council Regulation (EU) 2022/1854 on emergency intervention to address high energy prices (see below).
Latest stage: Heads of Bill approved and awaiting publication.
Gas (Amendment) Bill
This bill amends the Gas Acts, to facilitate the integration of Ervia into Gas Networks Ireland.
Latest stage: Heads of Bill approved.
EU REGULATIONS
Council Regulation on an emergency Intervention to address high energy prices
Date published: 6 October 2022
In response to rising energy prices, EU energy ministers reached agreement on 30 September 2022 at an extraordinary Council meeting on a regulation to introduce common measures across Europe to reduce electricity demand and to collect and redistribute the energy sector’s surplus revenues to final customers.
As of 6 October 2022, the EU Member States have formally adopted the regulation. 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. The Council agreed to cap the market revenues at 180 euros / MWh for electricity generators, including intermediaries, that use so-called inframarginal technologies to produce electricity, such as renewables, nuclear and lignite.
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
The government has introduced the Energy (Windfall Gains in Energy Sector) Bill 2023 in the Spring Legislative Programme for the purpose of implementing this regulation.
EU DRAFT LEGISLATION
Proposal for a Directive amending Directive (EU) 2018/2001 on the promotion of the use of energy from renewable sources, Directive 2010/31/EU on the energy performance of buildings and Directive 2012/27/EU on energy efficiency
Procedure reference: 2022/0160(COD)
Date published: 18 May 2022
The purpose of this proposed legislation is to reflect the EU's plan to accelerate the green transition towards renewable energy and energy efficiency by amending the existing Directive (EU) 2018/2001 on the promotion of the use of energy from renewable sources. In accordance with the REPower EU Communication this proposal aims to streamline the permit-granting processes applicable to renewable energy, including environmental impact assessments.
This proposal would also raise the renewable energy targets under Article 1(2)(a) of the proposal to amend Directive (EU) 2018/2001 to 45% in light of market changes on fossil fuels. The proposal further amends Directive 2010/31/EU on the energy performance of buildings by introducing obligations on Member States to promote solar energy installations for buildings.
Latest stage: Awaiting Parliament's position in first reading.
Proposal for a Regulation Establishing a Carbon Border Adjustment Mechanism (“CBAM”)
Procedure reference: 2021/0214 (COD)
Date published: 14 July 2021
As part of the ‘Fit for 55’ Package, CBAM aims 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, it is proposed that the CBAM will be fully effective.
Latest stage: First reading in the European Parliament and Council.
Proposal for a Regulation amending the Effort Sharing Regulation
Procedure reference: 2021/0200 (COD)
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, the Commission is proposing strengthening emissions reduction targets.
Latest stage: First reading in the European Parliament and Council.
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.
Proposal for a Regulation on the Deployment of Alternative Fuels Infrastructure
Procedure reference: 2021/0223 (COD)
Date published: 14 July 2021
As part of the EU’s ‘Fit for 55’ package which aims to reduce the continent’s carbon emissions by 55% by 2030, transport emissions must be cut significantly. Switching to low carbon fuels is seen as a central pillar of this decarbonisation. The revised Alternative Fuels Infrastructure Regulation will require Member States to expand charging capacity and install electric car charging and hydrogen refuelling points at specific distances on major highways.
Latest stage: Awaiting Parliament's position in first reading.
Proposal for a Regulation Establishing a Social Climate Fund
Procedure reference: 2021/0206 (COD)
Date published: 14 July 2021
This proposal forms part of the EU’s ‘Fit for 55’ legislative package aimed at reducing greenhouse gas emissions by 55% by the year 2030. The proposal will establish a fund to support the people and enterprises most impacted by the policy.
Latest stage: First reading in the European Parliament and Council.
Proposal for a Directive on reducing CO2 Emissions from Shipping by Encouraging the Use of Low-Carbon Fuels
Procedure reference: 2021/0210 (COD)
Date published: 14 July 2021
This initiative, known as FuelEU Maritime, which is part of the European Green Deal, aims to facilitate increased use of sustainable alternative fuels in European shipping and ports in order to reduce CO2 emissions from shipping. It will do this by addressing:
- market barriers that hamper their use; and
- uncertainty about which technical options are market ready.
Latest stage: Awaiting Parliament's position in first reading.
Proposal for a Regulation Modernising EU Rules on Batteries
Procedure reference: 2020/0353 (COD)
Date published: 10 December 2020
In line with the European Green Deal and the move to a circular economy, EU law aims to minimise batteries’ harmful effects on the environment. The EU Rules on Batteries cover their full life cycle, from design and production to reuse and recycling. This proposed regulation would update EU rules to ensure that:
- all batteries are produced sustainably (i.e., with low resource consumption and little waste generated) and can be easily recycled; and
- any batteries used in the growing market for electric vehicles are sustainable.
Latest stage: A draft overall compromise text was agreed at first reading interinstitutional negotiations by the relevant committee.