Discussion Paper on the preparation of the Energy Union Governance
Meeting of Directors General for Energy and Climate
15 July 2015
In its Communication on a Framework Strategy for the Energy Union adopted on 25 February
2015, the Commission stated the need for an integrated governance and monitoring process of
the Energy Union, to make sure that energy-related actions at European, regional, national and
local level all contribute to the Energy Union's objectives.
In its Conclusions on the Energy Union, the March 2015 European Council called for
developing a reliable and transparent governance system. This call was reiterated in the June
2015 Energy Council Conclusions and is in line with the Conclusions of the October 2014
European Council on the 2030 Framework, which also stressed that the governance system will
ensure that the EU meets its energy policy goals as well as the necessary flexibility for Member
States and build on existing building blocks for planning and reporting.
In May 2015, Vice-President Šefčovič launched an Energy Union Tour to engage in an
intensive dialogue with governments, Members of national parliaments and the European
Parliament as well as relevant stakeholders and citizens in order to present and discuss the
Energy Union and its opportunities for Member States. As a basis for this dialogue, which will
feed into the State of the Energy Union Report, draft country fiches addressing the Energy
Union's five dimensions for each Member State were circulated to Member States.
This paper presents (i) the Commissions objectives for a future governance system for the
Energy Union (ii) illustrates the kind of instruments that could support a future governance
system and (iii) the proposed next steps and key questions for the debate. Based on the
discussions, the Commission will take further initiatives to develop the governance of the
Energy Union.
1. Main objectives for the governance system
The overarching purpose of the governance system is to help Member States deliver on the
objectives of the five closely interrelated dimensions of the Energy Union: energy security,
solidarity and trust; a fully integrated European energy market; energy efficiency contributing to
moderation of demand; decarbonising the economy; and research, innovation and
competitiveness.
In particular, this is needed:
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to ensure the delivery of the 2030 climate and energy targets as agreed at the European
Council in October 2014,
to enhance transparency and streamline current planning and reporting requirements
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through Better Regulation,
to strengthen regional cooperation within a common EU framework.
to give predictability to investors;
2. Setting up a governance system
Governance of the Energy Union should start with building and sharing knowledge of energy
policy and its development across all Member States.
2.1 Streamlined and coherent monitoring system
The current reporting under the existing energy and climate legislation needs streamlining and
simplification. A transparent monitoring system should be therefore put in place, based on (i)
streamlining of reporting and planning requirements in order to reduce administrative burden
and bring more coherence, as well as on (ii) assessing performance according to key energy and
climate indicators based on e.g. on energy prices and cost, competition, diversification of energy
imports, and infrastructure targets). This exercise should be based also on the recent
streamlining process in the climate field.
The core elements of this streamlined system would be (1) single integrated national plans for
the post-2020 period (see below) and (2) biennial reports on the implementation of national
plans. These implementation reports will be an important instrument to assess progress in
implementating the Energy Union objectives.
As a result of this streamlining exercise, Member States would have to submit fewer reports
and plans. It will also bring more coherence, simplification and consistency between the various
planning and reporting streams.
2.2. Integrated national energy and climate plans, to deliver on the Energy Union's objectives
National plans would be the key instruments for Member States to set out their energy and
climate policy approaches for the period up to 2030 in an integrated way.
The integrated plans should cover all five dimensions of the Energy Union, including notably
the agreed targets of the 2030 Framework (greenhouse gas emission reductions, renewable
energy, energy efficiency, and electricity interconnections) and the indicators based on the 2030
Framework Communication.
The plans should present the Member State's policy choices as well as policies and measures
planned to meet the future binding 2030 national targets in the non-ETS sectors (transport,
buildings, agriculture), taking into account national and EU energy and climate policy objectives
until 2050.
As regards the agreed EU-level binding target for renewable energy of at least 27% and the
energy efficiency target of at least 27% (to be reviewed by 2020 with a view to 30%), the plans
should set out national policies and measures planned to achieve them, taking into account the
implementation of existing EU legislation (without fixing national binding targets). The
Commission would aggregate these national plans and compare with the EU-level target.
Furthermore, policies affecting the internal energy market, security of supply and energy
dependence as well as research, innovation and competitiveness should be part of national plans
in particular with cross-border impact. Some of the latter policies may be complemented by
sector specific EU initiatives.
2.3. Indicators and projections
National plans should include projections for the energy system and greenhouse gas emissions
based on existing policies, notably a reference projection that does not include the effects of the
planned policies described, and a policy projection with the planned measures.
The Commission stands ready to support Member States by providing data and analysis. An
important input will be the modelling work of the EU's new Reference Scenario, prepared in
close cooperation with Member States. Without aiming to replace national projections developed
by Member States, it can be a useful reference point for Member States in defining their own
targets and objectives.
Building on the indicators already included in the draft country fiches, the Commission will also
present in the annual State of the Energy Union Reports a cross-country view of key energy and
climate indicators, for example on energy prices and costs, competitiveness, the diversification
of energy imports or energy market functioning. This will inform Member States on the
challenges on national, regional as well as EU level in a comprehensive and comparable way,
and help in the elaboration of the general aspects of the national plans and the monitoring of
their implementation, as well as in tracking EU-wide progress.
Political and technical dialogues between the Commission and Member States on the basis of
the draft plans can be useful. They would provide an opportunity to take into account the
upcoming energy and climate policy initiatives of the Commission and to ensure consistency
between EU-level and national measures.
2.4 Regional cooperation
The Energy Union strategy encourages closer regional cooperation on all five dimensions. This
has been supported by Member States in a recent discussion at the Energy Council.
National plans should reflect the outcome of regional cooperation in areas that would benefit
from joint or coordinated planning with neighbouring Member States. Therefore regional
consultations on enhanced coordination of national policies with other Member States and
consideration of potential impacts of national approaches on neighbouring countries will be of
key importance. Regional cooperation can be built on existing fora or new ones, with the
support of the Commission.
2.5 The Commission's State of the Energy Union Report
The Commission will report annually on the State of the Energy Union. The Report will assess
progress made in the Energy Union's five dimensions. It will bring together a number of
reporting obligations falling on the Commission and present country-specific analysis showing
individual and collective progress of Member States towards the Energy Union objectives. The
first report will be published in the fourth quarter of 2015 and will be presented to the European
Parliament and the Council.
3. Next steps
The Commission welcomes that the Luxemburg Presidency has put the Energy Union and its
related governance elements high on the political agenda. In the coming months, it intends to
continue the consultation and dialogue with Member States and the European Parliament on the
differents elements of governance.
Further meetings with Directors-General, notably on regional cooperation, will be needed to
discuss key policy issues of the future governance system with Member States the Commission
also plans to consult stakeholders.
4. Questions for debate
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What could be the key elements for the National Energy and Climate Plans which would
be needed for the delivery of Energy Union objectives? How can this be done while
preserving Member States' flexibility across policy areas?
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Based on Member States' experiences, what areas offer the highest potential for
streamlining existing reporting and planning obligations?
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How should the Commission assess Member States efforts in as indicated in their
national plans in terms of the need to meet EU-level renewables and energy efficiency
targets? In order to facilitate the achievement of these targets, how could the result of
this assessment be used for EU and national policy making (e.g. through an iterative
planning process)?
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Following the current validation exercise on the draft country fiches, how can data,
assessment and intelligence on the Energy Union be further improved?