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: General scheme of the bill published 21 March 2023.
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
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
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 (see section above).
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.
Proposal for a Directive amending the Renewable Energy Directive ("REDII")
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 REDII (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: First reading in the European Parliament and Council.