EU Settles For 42.5% RE Target For 2030

• European Parliament and Council have announced an agreement to raise EU's 2030 renewable energy target to 42.5%
• The bloc would still aim to reach 45% share while aiming to reduce its GHG emissions by 55% from 1990 levels
• Industry has also been given a binding target to achieve 42% renewable hydrogen target by 2030; it is a 1^st time for industry to be included in the RED
• SPE has welcomed the agreement and said the industry will work towards adding as much renewable energy as possible since 45% is a floor, not a ceiling

The European Parliament and the Council have reached an agreement to increase the European Union's (EU) binding renewable energy target for 2030 to a minimum of 42.5%, up from the current legislated 32% while agreeing that the bloc would aim to reach 45% share under Fit for 55 package.

It still needs to be formally adopted by both the parliament and the council, post which it will be published in the Official Journal of the Union and become a law.

However, what this increased legislation means is there will be a larger share of renewables in the EU as permitting processes will become easier and faster and renewable energy recognized as an overriding public interest.

There will also be an increased share of renewables in the heating and cooling sector as well as in district heating systems as the agreement introduces a specific renewable energy benchmark of 49% for energy consumption in buildings by 2030 to complement EU buildings legislation (see EU Advances Energy Performance Of Buildings Directive).

Another feature of the raised target is that for the 1^st time industry is included in the Renewable Energy Directive (RED) establishing an indicative as well as binding target to reach 42% of renewable hydrogen in total hydrogen consumption in industry by 2030. Transport sector has been allocated target of 29% in its final energy consumption.

The 42.5% target is higher than the European Commission's (EC) proposal of 40% which would have increased total solar power capacity installed by 2030 to 660 GW, according to the European solar PV lobby association SolarPower Europe (SPE). The association has been advocating for the EU to adopt 45% renewable energy target by the target year (see European Commission Proposes 40% RE In Energy Mix by 2030).

SPE said the agreement means scaling investment, electricity grids and workforce. The association's CEO Walburga Hemetsberger stated, "We're celebrating that the EU has set a path to 45% renewables this decade. As for the indicative 2.5% target, the task now is to use the EU tools at hand to secure the top up. And of course, 45% is a floor, not a ceiling. We'll be working to deliver as much renewable energy by 2030 as possible."

Fit for 55 proposal is part of the European Green Deal that has an overarching aim of making Europe climate neutral by 2050 and reduce the bloc's GHG emissions by at least 55% by 2030, compared to 1990 levels. At the same time, accelerating and expanding renewable energy capacity is targeted to get over the reliance over Russian fuel for the bloc.

"Renewables are key to Europe's climate neutrality goal and will enable us to secure our long-term energy sovereignty. With this deal we are giving investors certainty and affirm the EU's role as the global leader in renewables deployment, and frontrunner of the clean energy transition," said Commissioner for Energy, Kadri Simson.