Brussels, 28 March 2023
Gas and hydrogen package
EU energy ministers agreed on the Council’s negotiating positions (‘general approaches’) on two proposals that set common internal market rules for renewable and natural gases and hydrogen.
The purpose of the legislation is to design the transition of the gas sector towards renewable and low-carbon gases, in particular biomethane and hydrogen, in view of reaching the EU’s goal of climate neutrality in 2050.
I’m glad we have found a balanced agreement on the gas package. Europe is on a journey to shift away from fossil natural gas to renewable and low-carbon gases and we have to create the right market conditions for that to happen, in a way that promotes competitiveness, protects consumers and advances our climate-neutrality objective for 2050.
Ebba Busch, Swedish Minister for energy, business and industry
- Gas package: member states set their position on future gas and hydrogen market (press release, 28 March 2023)
- Watch the public session
- Fit for 55 the EU’s plan for a green transition (background information)
Gas demand reduction
Member states reached a political agreement on a proposal to extend their voluntary 15% gas demand reduction target for one year.
The purpose of the gas demand reduction is to make savings, in order to prepare for possible disruptions of gas supplies.
The EU is not completely out of the energy crisis and Russia continues to use energy as a weapon. EU member states need to stand solidary and be prepared ahead of next winter. The overall EU consumption of natural gas has dropped by 19.3% between August 2022 and January 2023. Reducing our gas demand has allowed us to fill our storages, keep prices down and secure more energy supplies. It’s important that we keep up the work and stay resilient.
Ebba Busch, Swedish Minister for energy, business and industry
The new regulation will maintain the possibility for the Council to trigger a ‘Union alert’ on security of supply, in which case the gas demand reduction would become mandatory.
- Member states agree to extend voluntary 15% gas demand reduction target (press release, 28 March 2023)
- Energy prices and security of supply (background information)
Electricity market design
Ministers held their first policy debate on a proposal to revise the EU electricity market design.
The proposal aims to make the EU energy market more resilient and stable, to shield consumers and companies from short-term electricity price volatility, and to drive investments into renewable energies.
The purpose of the debate was to give guidance for further work on the proposal within the Council.
Ministers expressed their views on what changes to the existing market design would strike a balance between the need of improvements and keeping what works well, while protecting consumers and increasing investments in new production capacity.
Ministers were committed to advancing swiftly on the proposals and the presidency reiterated that the reform would be treated as a priority and that it will do its utmost to make quick progress on it.
Other business
Under any other business, the Commission updated ministers on winter preparedness. Denmark provided information on the nature restoration regulation. Greece gave ministers information on the EU electricity grid.
Energy situation in Ukraine
During lunch, ministers exchanged views on the energy situation in Ukraine with German Galuschchenko, Ukrainian Minister of Energy.
Other items adopted by the Council
The Council also adopted without discussion the legislative and non-legislative acts on the lists of A-items below.
In particular, the Council adopted four legislations stemming from the ‘Fit for 55’ package. These legislations concern CO2 emission performance standards for cars and vans, emission reductions in the land use, land-use change and forestry sector (LULUCF) and under the effort sharing regulation (ESR), as well as a decision amending the market stability reserve that supports the EU emission trading system.
Source – EU Council