RED Agreement Reached by EU Legislators

Bioenergy Europe welcomes the outcome of the trilogue negotiations on the Renewable Energy Directive (RED) in reaching the EU’s climate goals. However, we regret the overcomplication of certain provisions which risks hindering the EU decarbonisation process and destabilising market actors.

Yesterday, EU legislators agreed on the revision of the Renewable Energy Directive, including provisions specific to the bioenergy sector. We applaud EU negotiators who avoided controversial approaches that would have jeopardised a large part of the sustainable biomass supply. The new overall binding target of 42,5% renewables by 2030 with an additional 2,5% indicative top up shows a strong ambition to reach 45% of renewables in the EU energy mix.

“The outcome of the negotiations shows that an emotionally driven debate, which was not based on facts, had no chance against the common sense, holistic and evidence-based approach which policymakers have decided to trust” says Bioenergy Europe’s Secretary General Jean-Marc Jossart.

However, we regret to see that local conditions were not duly considered when determining if support can be provided for biopower installations and certain feedstocks, as well as the fact that the threshold for the sustainability criteria has been lowered to 7,5MW. The overcomplication of certain provisions will result in an additional burden especially for smaller operators. The agreement rejected the conceptually flawed definition of primary woody biomass and introduced new provisions to ensure an economically and environmentally sound use of high-quality wood. The risk remains that it will still be business as usual by using fossil fuels. Bioenergy is by far the most important renewable solution that substitutes fossil fuels in the heating and transport sectors.

“We can only achieve our collective climate goals by agreeing that fossil fuels have no future and need to be phased out” added Christoph Pfemeter, President of Bioenergy Europe. “In their place, all renewable and sustainable solutions need to receive the required support to be further deployed across the EU as fast as possible.”

The outcome of the negotiations is welcomed by bioenergy stakeholders, as it reaffirms trust in bioenergy and guarantees stability for the sector overall. We need all available renewable solutions to ensure that the EU net-zero target can be achieved by 2050 – the recognition that bioenergy remains 100% renewable is a key step forward in that direction.

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Sustainable Carbon Cycles

The report on Sustainable Carbon Cycles was adopted by the European Parliament’s ENVI Committee with 64 votes against 6 and 8 abstentions. MEPs recognise the potential of this initiative to contribute to the EU net carbon removal target of at least net 310 megatons (Mt) by 2030 while stressing that carbon removals should complement and never replace legally binding emissions reductions. For more information, please contact Ennio Prizzi.

Updates on RED Revision

The latest REDIII political trilogue took place on 6 March. The co-legislators decided not to exclude bioenergy and hydroelectricity from the “go-to areas” (now called “acceleration areas”) for the deployment of renewables. Member States have the option to exclude or request an environmental assessment on a specific bioenergy project. Co-legislators reiterated their commitment to close the RED negotiations by the end of March. For more information, please contact Daniel Reinemann.

Ecodesign and Energy Labelling Forum

On 7 March the EU Commission presented the latest updates on the Ecodesign and Energy Labelling revision to Member States and stakeholders. The proposal of ENER Lot10 and Lot20 is still on the table but raises the concerns of some national experts. Bioenergy Europe circulated a joint letter pushing against the merger. For more information, please contact Irene di Padua.

EU Bioeconomy Assessment

An assessment of the progress and the trends in the EU bioeconomy, carried out by the JRC, confirms the findings of the EU Bioeconomy Progress Report that a better policy coordination is needed to tackle the multiple pressures on land from biomass demand. For more information, please contact Jérémie Geelen.

IEA Bioenergy’s Report 2023

In their report How bioenergy contributes to a sustainable future, IEA Bioenergy thoroughly assesses bioenergy and its role for a sustainable future in 12 chapters grouped under a strategic view. This evidence-based report highlights bioenergy’s essential role in the bioeconomy and how it can support a just transition while achieving the Sustainable Development Goals (SDGs).

EU ETS

The consolidated text of the agreement reached in December on the EU ETS, CBAM and the Social Climate Fund is due to be presented to the Council in February, before being put to a vote in the European Parliament at the plenary session in March. For more information, contact Ennio Prizzi.

EED Trilogues

The negotiations on the revision of the Energy Efficiency Directive (EED) are coming to an end. The next technical meeting will be held on 17 February and the last political trilogue is expected on 9 March when a deal is likely to be reached. For more information, please contact Irene di Padua.

ETD Revision

In view of the meeting of the WP on Tax Questions on 10 November, the Czech Presidency published a compromise text covering the Energy Taxation Directive. The document specifies that Member States will be able to grant tax exemptions or reductions to nuclear electricity (in addition to wind, solar, etc.). It shows that there are still questions about how to tax hydrogen used in fuel cells – several options are being considered. The levels of taxation are left in square brackets at this stage, since the Presidency believes that they should be decided at the ministerial level. For more information, please contact Ennio Prizzi.