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Background briefing for the EU Energy Council, 11 June 2021

Jun 7, 2021 , , ,

07/06/2021 09:48

Source: Background brief – Transport, Telecommunications and Energy Council (Energy), 11/06/2021

Luxembourg, 11 June 2021

Chair: João Pedro Matos Fernandes, Minister of Environment and Climate Action of Portugal. European Commission representative: Kadri Simson, European Commissioner for Energy

Starting time: 09:30

This Energy Council will be a physical meeting held in Luxembourg. This will be the first physical meeting of energy ministers since December 2019. Discussions will be held in a public session throughout the meeting, except for AOB items.

European Energy Ministers will start their discussions with the revision of the TEN-E regulation with the aim of reaching a general approach on the proposal. The objective of the revised TEN-E regulation for trans-European energy networks is to modernise, decarbonise and interconnect the EU’s cross-border energy infrastructure. The purpose of the revision is to help the EU achieve its 2050 climate neutrality objectives, while ensuring market integration, competitiveness and security of supply.

Ministers will then have an exchange of views on the evolution of the Hydrogen Strategy in Europe. The objective of the strategy is to create an enabling environment to scale up hydrogen supply and demand for a climate-neutral economy.

After a lunch discussion on the state of play of the forthcoming Fit for 55 package with Commissioner Kadri Simson, Energy Ministers will turn towards the approval of Council conclusions in response to the renovation wave strategy. The strategy aims to intensify renovation efforts throughout Europe, in order to make the necessary contribution by the buildings sector to the 2050 climate neutrality goal and to deliver a fair and just green transition.

Under other issues, the Commission will inform ministers on recent developments in the field of external energy relations. The Lithuanian delegation will draw the attention of ministers on urgent action concerning safety recommendations at the nuclear power plant Ostrovets in Belarus. The Czech delegation will invite ministers to reflect on the EU taxonomy for sustainable economic activities and further possible steps regarding it. The Belgian delegation will inform ministers on a joint political declaration by the members of the Pentalateral Energy Forum on their cooperation on hydrogen. The Slovenian delegation will share with ministers the work programme of the incoming Presidency.

Press conference: at the end of the meeting, +/- 17:15

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TEN-E Regulation

The proposal for a Regulation on guidelines for trans-European energy infrastructure aims at interconnecting, modernising and greening energy infrastructures in EU countries. It identifies 11 priority corridors and 3 priority thematic areas to develop and interconnect. This will be facilitated mostly through projects of common interest (PCIs), financed by the Connecting Europe Facility for 2021-2027.

The revision of the TEN-E Regulation updates the infrastructure categories eligible for support with an emphasis on decarbonisation. It ends support for natural gas and oil projects, introduces mandatory sustainability criteria for all projects and adds a new focus on offshore electricity grids, hydrogen infrastructure and smart grids. It also promotes the integration of renewables and new clean energy technologies into the energy system and aims to simplify and accelerate permitting and authorisation procedures. The revision thereby aims to align the TEN-E policy with the European Green Deal and the EU’s objective of becoming climate neutral by 2050.

The revised Regulation will continue to ensure that new projects respond to market integration, competitiveness and security of supply objectives. The Regulation will also continue to support projects that connect regions currently isolated from European energy markets, strengthen existing cross-border interconnections and promote cooperation with countries outside of the EU.

The European Commission presented its proposal on a revised TEN-E on 15 December 2020. The Council has discussed the proposal since January 2021 and aims at reaching a general approach in the June Energy Council. This will be the basis for the Council’s position in the negotiations with the European Parliament to find a final agreement on the future legislation.

A hydrogen strategy for a climate-neutral Europe

Ministers will hold an exchange of views on the evolution of the Hydrogen Strategy in Europe, which aims to create an enabling environment to scale-up hydrogen supply and demand for a climate-neutral economy.

Following the publication of the ‘Hydrogen Strategy for a Climate-Neutral Europe” by the European Commission on 8 July 2020, the Council approved conclusions recognising the important role that hydrogen, especially from renewable sources, plays in reaching the EU’s decarbonisation objectives. The Council called on the Commission to further elaborate and operationalise the strategy and in particular to outline a pathway towards the roadmap’s objectives of installing at least 6 GW of renewable hydrogen electrolysers in the EU by 2024 and 40 GW by 2030. The Council emphasised this should utilise joint programmes, be cost-efficient and prioritise energy efficiency and electrification from renewable sources.

The Presidency will structure the debate around two questions:

  1. How can member states cooperate in order to create conditions that foster the market and speed up regulation on end-use technologies to increase hydrogen uptake, particularly in the hard-to-decarbonise sectors?
  2. What are the funding priorities for hydrogen and how to join support for exports, given its potential to strengthen European partnerships?

Renovation Wave

Ministers will seek agreement on Council conclusions on a renovation wave that repairs the economy now, and creates green buildings for the future. The buildings sector is one of the largest energy consumers in Europe and is responsible for more than one third of the EU’s greenhouse gas emissions. With millions of Europeans unable to afford keeping their home adequately heated, renovation is also an important response to energy poverty and quality of life of citizens.

The European Commission presented the renovation wave strategy on 14 October 2020 as part of the European Green Deal. The strategy aims to intensify renovation efforts throughout Europe, in order to make the necessary contribution by the buildings sector to the 2050 climate neutrality goal and to deliver a fair and just green transition. The strategy also recognises the pivotal role of buildings renovation in the process of economic recovery from the COVID-19 pandemic.

The strategy aims to double energy-related renovation rates by 2030 and to promote deep energy renovations that reduce energy use and greenhouse gas emissions and increase cost savings.
The strategy aims to tackle energy poverty and improve the quality of life of people living in the buildings, while creating new jobs in the construction sector.

  • Draft Council conclusions on a renovation wave that repairs the economy now, and creates green buildings for the future
  • Communication from the Commission on A Renovation Wave for Europe – greening our buildings, creating jobs, improving lives

Any other business

The Commission will inform ministers on recent developments in the field of external energy relations, including energy diplomacy, the IEA net zero initiative, IRENA, the Energy Charter Treaty and the next EU-US Energy Council.
Information from the Commission

The Lithuanian delegation will draw attention of ministers on urgent action concerning safety recommendations at the nuclear power plant Ostrovets in Belarus. The information concerns the implementation of nuclear safety recommendations outlined in the EU peer review report of the Belarus NPP ‘stress test’ and the European Council conclusions of December 2020.
Information from the Lithuanian delegation

The Czech delegation will invite ministers to reflect on the EU taxonomy for sustainable economic activities and further possible steps regarding it. The Taxonomy Regulation (EU) 2020/852 provides a framework for classifying economic activities that can qualify as environmentally sustainable. The Regulation was followed up by the first Climate Commission Delegated Act released on 21 April 2021, classifying economic activities with regard to their contribution to climate change mitigation and adaptation. The Economic and Financial Affairs Council is in the lead for this file.
Information from the Czech delegation

The Belgian delegation will inform ministers on a joint political declaration by the members of the Pentalateral Energy Forum on their cooperation on hydrogen.
Information from the Belgian delegation.

Finally, the Slovenian delegation will present the work programme for its upcoming presidency.

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1              This note has been drawn up under the responsibility of the press office.

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