Changes from plenary report to adopted text

(42) ‘efficient district heating and cooling’ means a district heating or cooling system meeting the criteria laid down in Article 24;

(43) ‘efficient heating and cooling’ means a heating and cooling option that, compared to a baseline scenario reflecting a business-as-usual situation, measurably reduces the input of primary energy needed to supply one unit of delivered energy within a relevant system boundary in a cost-effective way, as assessed in the cost-benefit analysis referred to in this Directive, taking into account the energy required for extraction, conversion, transport and distribution;

(44) ‘efficient individual heating and cooling’ means an individual heating and cooling supply option that, compared to efficient district heating and cooling, measurably reduces the input of non-renewable primary energy needed to supply one unit of delivered energy within a relevant system boundary or requires the same input of non-renewable primary energy but at a lower cost, taking into account the energy required for extraction, conversion, transport and distribution;

(45) ‘data centre’ means a structure, or group of structures used to house, connect and operate computer system/servers and associated equipment for data storage, processing and/or distribution, as well as related activities as defined in Commission Regulation (EU) 2022/132;

(46) ‘substantial refurbishment’ means a refurbishment whose cost exceeds 50 % of the investment cost for a new comparable unit;

(47) ‘aggregator’ has the meaning attributed to ‘independent aggregator’ as defined by Article 2(19) of Directive (EU) 2019/944;

(48) ‘energy poverty’ means a household’s inability, linked to non-affordability, to meet its basic energy supply needs and a lack of access to essential energy services to guarantee basic levels of comfort and health, a decent standard of living and health, including adequate heating, hot water, cooling, lighting, and energy to power appliances, in the relevant national context, existing social policy and other relevant policies, caused by one or a combination of the following factors: insufficient disposable income, high energy expenditures and poor energy efficiency of homes;

(49) ´final user´ means natural or legal person purchasing heating, cooling or domestic hot water for their own end-use, or natural or legal person occupying an individual building or a unit in a multi-apartment or multi-purpose building supplied with heating, cooling or domestic hot water from a central source who has no direct or individual contract with the energy supplier;

(50) ‘split incentives’ means the lack of fair and reasonable distribution of financial obligations and rewards related to energy efficiency investments among the actors concerned, for example the owners and tenants or the different owners of building units, or owners and tenants or different owners of multi-apartment or multi-purpose buildings.

(50a) ‘engagement strategy’ means a strategy that sets objectives, develops techniques and establishes the process by which to involve all relevant stakeholders at national and local level, including civil society representatives such as consumer organisations,in the policy-making process, with the goal of increasing awareness, obtaining feedback on such policies and improving their public acceptance;

(50b) ‘one-stop shop’ means a single point for provision of advice, guidance and information.

Energy efficiency first principle

1. In conformity with the energy efficiency first principle, Member States shall ensure that energy efficiency solutions, including demand-side resources and system flexibilities, areassessed in the design and planning of policy decisions as well as major investment decisions related to the following sectors:

(a) energy systems, and

(b) non-energy sectors, where those sectors have an impact on energy consumption and energy efficiency, including buildings, transport, water, information and communications technology (ICT), agriculture and financial sectors.

2. Member States shall ensure that the application of the energy efficiency first principle, including, where appropriate, sector integration and cross-sectoral impacts, is verified by the relevant entities where policy, planning and investment decisions are subject to approval and monitoring requirements.

2a. In applying this Article, Member States shall take into account the Commission Recommendation (EU) 2021/1749.

3. In applying the energy efficiency first principle, Member States shall:

(a) develop, apply and make publicly available a cost-benefit methodology that allows the proper assessment of the wider benefits of energy efficiency solutions taking into account the entire life cycle and foreseeable developments, system and cost efficiency, security of supply and quantification from the societal, health, economic and climate neutrality perspective;

(aa) ensure that the application of the energy efficiency first principle will have a positive impact on addressing energy poverty;

(b) identify an entity responsible for monitoring the application of the energy efficiency first principle and the impacts of regulatory frameworks, including financial regulations, planning, policy and investment decisions on energy consumption and energy efficiency and energy systems;

(ba) secure that the investments made are environmentally sustainable at all stages of the energy value chain and apply circularity principles in transition to climate neutrality;

(c) report to the Commission, as part of the integrated national energy and climate progress reports in accordance with Article 17 of Regulation (EU) 2018/1999 on how the energy efficiency first principle was taken into account in the national, regional and local planning, policy and major investment decisions related to the national and regional energy systems and to non-energy sectors, where those sectors have an impact on energy consumption and energy efficiency, including, but not limited to, the following:

(i) an assessment of the systematic application and benefits of the energy efficiency first principle in energy systems, in particular in relation to energy consumption;

(ii) a list of actions taken to remove any unnecessary regulatory or non-regulatory barriers to the implementation of the energy efficiency first principle and of demand-side solutions, including through the identification of national legislation and measures that are contrary to the energy efficiency first principle;

3a. By ... [6 months after the date of entry in force of this Directive], the Commission shall adopt a delegated act supplementing this Directive by establishing a common general framework including supervision, the monitoring and reporting procedure that Member States may use to design the cost-benefit methodologies referred to in paragraph 3, point (a), in order to ensure comparability while leaving the possibility for Member States to adapt to national and local circumstances.

Energy efficiency targets

1. Member States shall collectively ensure a reduction of energy consumption of at least 40 % in 2030 in final energy consumption and 42,5 % in primary energy consumption compared to the projections of the 2007 Reference Scenario so that the Union’s final energy consumption amounts to no more than 740 Mtoe and the Union’s primary energy consumption amounts to no more than 960 Mtoe in 2030.

2. Each Member State shall set binding national energy efficiency contributions for final and primary energy consumption to meet, collectively, the binding Union target set in paragraph 1. Member States shall notify those contributions together with a trajectory with two reference points (milestones) in 2025 and 2027 for those contributions, to the Commission as part of the updates of their integrated national energy and climate plans in accordance with Article 14 of Regulation (EU) 2018/1999, and as part of their integrated national energy and climate plans as referred to in, and in accordance with, the procedure set out in Article 3 and Articles 7 to 12 of Regulation (EU) 2018/1999. When setting their binding national contributions, Member States shall apply the formula defined in Annex I of this Directive and explain how, and on the basis of which data, the contributions have been calculated.

Member States shall also provide the shares of energy consumption of energy end-use sectors, as defined in Regulation (EC) No 1099/2008 on energy statistics, including industry, residential, services and transport, in their national energy efficiency contributions. Projections for energy consumption in ▌ICT ▌shall also be indicated.

In setting those contributions, Member States shall take into account:

(a) that the Union’s 2030 energy consumption has to be no more than 740 Mtoe of final energy or no more than 960 Mtoe of primary energy consumption ;

(b) the measures provided for in this Directive;

(c) other measures to promote energy efficiency within Member States and at Union level;

(d) the following relevant factors affecting efficiency efforts included in the formula established in Annex I:

i. the collective level of ambition necessary to reach climate objectives;

ii. the equitable distribution of efforts across the Union;

iii. the energy intensity of the economy;

(iv) the remaining cost-effective energy-saving potential;

(e) other national factors affecting energy consumption, in particular:

(i) GDP evolution and forecast;

(ii) changes of energy imports and exports, developments in energy mix and deployment of new sustainable fuels ;

(iii) development of all sources of renewable energies, nuclear energy, carbon capture and storage;

(iv) decarbonisation of energy intensive industries.

(iv a) the level of ambition in the national decarbonisation/climate neutrality plans.

Where Member States take into account the national factors referred to in point (e) of the third subparagraph, this shall not lead to a failure to achieve the Union’s energy efficiency target. The Commission shall assess whether the collective contribution of Member States is sufficient to achieve the Union’s energy efficiency target and assess if the contributions are in line with achieving the milestones. Where it concludes that it is not sufficient, it shall, within two months of the Member States’ notification of their national energy efficiency contributions, propose to each Member State a corrected national energy efficiency contribution ensuring that the collective contribution of Member States reaches the Union’s energy efficiency target. When applying that mechanism, the Commission shall ensure that there is no difference in the primary and final energy consumption between the sum of the Member States’ national contributions and the Union’s energy efficiency target.

3. The Commission shall, on the basis of its assessment pursuant to Article 29(1) and (3) of Regulation (EU) 2018/1999, assess the progress of Member States towards the achievement of their binding national contributions and milestones referred to in paragraph 2 of this Article. Where the Commission concludes, on the basis of its assessment, that insufficient progress has been made towards meeting the energy efficiency contributions, Member States that are above their ▌trajectories and milestones referred to in paragraph 2 of this Article shall ensure that additional measures are implemented within one year following the date of reception of the Commission's assessment in order to ensure getting back on track to reach their energy efficiency contributions. Those additional measures shall include, but shall not be limited to, the following measures:

a. national measures delivering additional energy savings, including stronger project development assistance for the implementation of energy efficiency investment measures;

b. increasing the energy savings obligation set out in Article 8;

c. adjusting the obligation for public sector;

d. making a voluntary financial contribution to the National Energy Efficiency Fund referred to in Article 28 or another financing instrument dedicated to energy efficiency, where the annual financial contributions shall be equal to the investments required to reach the ▌trajectory.

Where a Member State is above its ▌trajectory referred to in paragraph 2 of this Article, it shall include in its integrated national energy and climate progress report pursuant to Article 17 of Regulation (EU) 2018/1999, an explanation of the measures it will take to cover the gap to ensure reaching its national energy efficiency contributions and the amount of energy savings each measure is expected to deliver.

The Commission shall assess whether the national measures referred to in this paragraph are sufficient to achieve the Union's energy efficiency targets. Where national measures are deemed to be insufficient, the Commission shall, as appropriate, propose measures and exercise its power at Union level in order to ensure, in particular, the achievement of the Union's 2030 targets for energy efficiency.

4. The Commission shall assess by 31 December 2026 any methodological changes in the data reported pursuant to Regulation (EC) No 1099/2008 on energy statistics, in the methodology for calculating energy balance and in energy models for European energy use and, if necessary, propose technical calculation adjustments to the Union’s 2030 targets with a view to maintaining the level of ambition set out in paragraph 1 of this Article.