### 21. recalls that the union institutions agreed on a roadmap for the introduction of new own resources to ensure repayment of the recovery plan; considers that moving forward with this package is of the utmost importance; urges , therefore , the council to respect the agreed timing; ### 21. recalls that the union institutions agreed on a roadmap for the introduction of new own resources to ensure repayment of the recovery plan; welcomes the commission’s proposal of 22nd december 2022 for the next generation of eu own resources; stresses the need to aim for the highest possible ambition of the new own resources revenues flowing into the eu budget based on the carbon boarder adjustment mechanism , eu emission trading system as well as on the share of the residual profits of the largest and most profitable multinational enterprises that are allocated to eu member states following the oecd/g20 inclusive framework agreement; considers that moving forward with this package is of the utmost importance; urges , therefore , the council to respect the agreed timing; calls on commission to make a proposal for the second basket of the new own resource before december 2023 in order to ensure sufficient resources for the ngeu repayments;


### 23. looks forward to the application of the revised climate tracking methodology to the 2023 draft budget in accordance with the interinstitutional agreement on budgetary discipline; expects the commission to adopt an effective , transparent and comprehensive methodology for biodiversity tracking as soon as possible , bearing in mind the target set for 2024; ### 23. recalls that the eu’s long-term priority objective as set out in the 8th environmental action programme is to ensure that , by 2050 at the latest , people live well within the planetary boundaries , in a wellbeing economy where nothing is wasted , growth is regenerative , climate neutrality within the eu has been achieved , biodiversity has been conserved , ecosystems thrive and nature is protected and restored , and inequalities have been significantly reduced; recalls that the union and the member states committed under article 2.1(c) of the paris agreement to align both public and private financial flows to a pathway compatible with the objective of limiting global warming to 1.5°c; stresses that this requires a phase out of all direct and indirect fossil fuel subsidies as soon as possible and by 2025 at the very latest; highlights that the performance and estimates reports for 2023 will be of key importance , as it will be the first time estimates of shares will be made based on all agreed legislative texts and looks forward to the reporting on do no significant harm in the performance report of 2023 draft budget in accordance with the interinstitutional agreement on budgetary discipline; expects the commission to adopt an effective , transparent and comprehensive methodology for biodiversity tracking as soon as possible , bearing in mind the target set for 2024; as well as how the target of 10% will be reached by 2026 , expects to see the program-level targets published together with the draft budget 2023 as well as any legislative changes required in the programs effected to ensure the targets will be met; calls for the full involvement of the european parliament in the development of the methodologies as laid down in the iia; expects the commission to consult the parliament on biodiversity methodology before the publication of the draft budget 2023;


### 25. recalls the essential work carried out by decentralised agencies; considers that agencies must be properly staffed and adequately resourced so that they can perform their tasks; ### 25. recalls the essential work carried out by decentralised agencies; considers that agencies must be properly staffed and adequately resourced so that they can perform their tasks , also in light of any relevant legislative or administrative changes increasing the tasks performed by the relevant agency;


### 4. underlines the role of emsa in successful implementation of transition to renewable and low-carbon fuels in maritime transport; ### 4. commends the contribution emsa has done in giving technical support and data for initiatives related to the european green deal including the fueleu maritime initiative , the zero pollution action plan initiative and work at imo on energy efficiency and carbon intensity;


### (11) this directive takes a step forward towards climate neutrality by 2050 , under which energy efficiency is to be treated as an energy source in its own right. the energy efficiency first principle is an overarching principle that should be taken into account across all sectors , going beyond the energy system , at all levels , including in the financial sector. energy efficiency solutions should be considered as the first option in policy , planning and investment decisions , when setting new rules for the supply side and other policy areas. while the energy efficiency first principle should be applied without prejudice to other legal obligations , objectives and principles , they should also not hamper its application or exempt from applying the principle. the commission should ensure that energy efficiency and demand-side response can compete on equal terms with generation capacity. energy efficiency improvements need to be made whenever they are more cost-effective than equivalent supply-side solutions. that should help exploit the multiple benefits of energy efficiency for the union , in particular for citizens and businesses. implementing energy efficiency improvement measures should also be a priority in alleviating energy poverty. ### (11) this directive takes a step forward towards climate neutrality by 2050 , under which energy efficiency is to be treated as an energy source in its own right. the energy efficiency first principle is an overarching principle that should be taken into account across all sectors , going beyond the energy system , at all levels , including in the financial sector. energy efficiency solutions should be considered as the first option in policy , planning and investment decisions , when setting new rules for the supply side and other policy areas. while the energy efficiency first principle should be applied without prejudice to other legal obligations , objectives and principles , they should also not hamper its application or exempt from applying the principle. to make the energy efficiency first principle fully operational and a strategic priority , the commission should take adequate measures to make regulation more efficient and effective , avoiding allocating funds that are prone to not being exploited due to bureaucratic and administrative barriers; the commission should eliminate conflicting instruments and prioritise narrowing the gap between the union ambition and the national objectives , which , as presented in the necps , were not ambitious enough. the commission should also focus on specific aspects of economic activities in order to meet the annual energy saving obligation , which the commission should increase from 1 ,5% to 2%. the energy efficiency first principle should be operational locally , regionally , nationally and at european level. the commission should ensure that energy efficiency and demand-side response can compete on equal terms with generation capacity. energy efficiency improvements need to be made whenever they are more cost-effective than equivalent supply-side solutions , hence the commission should support the deployment of different technologies and solutions that allow for system integration and optimisation , such as hybrids and micro-cogeneration using renewable gas and electricity , solar thermal heating technologies as well as decentralised renewable energy production and thermal storage. that should help exploit the multiple benefits of energy efficiency for the union , in particular for citizens and businesses. implementing energy efficiency improvement measures should also be a priority in alleviating energy poverty.


### (11) this directive takes a step forward towards climate neutrality by 2050 , under which energy efficiency is to be treated as an energy source in its own right. the energy efficiency first principle is an overarching principle that should be taken into account across all sectors , going beyond the energy system , at all levels , including in the financial sector. energy efficiency solutions should be considered as the first option in policy , planning and investment decisions , when setting new rules for the supply side and other policy areas. while the energy efficiency first principle should be applied without prejudice to other legal obligations , objectives and principles , they should also not hamper its application or exempt from applying the principle. the commission should ensure that energy efficiency and demand-side response can compete on equal terms with generation capacity. energy efficiency improvements need to be made whenever they are more cost-effective than equivalent supply-side solutions. that should help exploit the multiple benefits of energy efficiency for the union , in particular for citizens and businesses. implementing energy efficiency improvement measures should also be a priority in alleviating energy poverty. ### (11) this directive takes a step forward towards climate neutrality by 2050 , under which energy efficiency is to be treated as an energy source in its own right. the energy efficiency first principle is an overarching principle that should be taken into account across all sectors , going beyond the energy system , at all levels , including in the financial sector. energy efficiency solutions should be considered as the first option in policy , planning and investment decisions , when setting new rules for the supply side and other policy areas , providing that they lead to a reduction of ghg emissions per unit of final energy consumption. while the energy efficiency first principle should be applied without prejudice to other legal obligations , objectives and principles , they should also not hamper its application or exempt from applying the principle. the commission should ensure that energy efficiency and demand-side response can compete on equal terms with generation capacity. energy efficiency improvements need to be made whenever they are more cost-effective than equivalent supply-side solutions. that should help exploit the multiple benefits of energy efficiency for the union , in particular for citizens and businesses. implementing energy efficiency improvement measures should also be a priority in alleviating energy poverty.


### (11) this directive takes a step forward towards climate neutrality by 2050 , under which energy efficiency is to be treated as an energy source in its own right. the energy efficiency first principle is an overarching principle that should be taken into account across all sectors , going beyond the energy system , at all levels , including in the financial sector. energy efficiency solutions should be considered as the first option in policy , planning and investment decisions , when setting new rules for the supply side and other policy areas. while the energy efficiency first principle should be applied without prejudice to other legal obligations , objectives and principles , they should also not hamper its application or exempt from applying the principle. the commission should ensure that energy efficiency and demand-side response can compete on equal terms with generation capacity. energy efficiency improvements need to be made whenever they are more cost-effective than equivalent supply-side solutions. that should help exploit the multiple benefits of energy efficiency for the union , in particular for citizens and businesses. implementing energy efficiency improvement measures should also be a priority in alleviating energy poverty. ### (11) this directive takes a step forward towards climate neutrality by 2050 , under which energy efficiency is to be treated as an energy source in its own right. the energy efficiency first principle is an overarching principle that should be taken into account across all sectors , going beyond the energy system , at all levels , including in the financial sector. energy efficiency solutions should be considered as the first option in policy , planning and investment decisions , when setting new rules for the supply side and other policy areas. while the energy efficiency first principle should be applied without prejudice to other legal obligations , objectives and principles , they should also not hamper its application or exempt from applying the principle. the commission should ensure that energy efficiency and demand-side response can compete on equal terms with generation capacity. energy efficiency improvements need to be made whenever they are more cost-effective than equivalent supply-side solutions. demand-side flexibility including consumer load participation-based upon consumers' consent and reward-should be considered. that should help exploit the multiple benefits of energy efficiency for the union , in particular for citizens and businesses. implementing energy efficiency improvement measures should also be a priority in alleviating energy poverty.


### 3. member states shall ensure that regional and local authorities , establish specific energy efficiency measures in their decarbonisation plans after consulting stakeholders and the public , including the particular groups at risk of energy poverty or more susceptible to its effects , such as women , persons with disabilities , older persons , children , and persons with a minority racial or ethnic background. ### 3. member states shall ensure that regional and local authorities , establish specific energy efficiency measures in their decarbonisation plans after consulting stakeholders and the public , including the particular groups at risk of energy poverty or more susceptible to its effects. the policy design , reach out and engagement strategies for the groups exposed to a higher risk of energy poverty shall be based on the income , gender , demographics , health conditions , or the belonging to a minority community relevant to the local conditions such as persons with a minority racial or ethnic background.


### 5. member states may require that contracting authorities and contracting entities take into account , where appropriate , wider sustainability , social , environmental and circular economy aspects in procurement practices with a view to achieving the union’s decarbonisation and zero pollution objectives. where appropriate , and in accordance with the requirements laid down in annex iv , member states shall require contracting authorities and contracting entities to take into account union green public procurement criteria. ### 5. member states shall require that contracting authorities and contracting entities take into account wider sustainability , social , environmental and circular economy aspects in procurement practices with a view to achieving the union’s decarbonisation and zero pollution objectives. members states shall require contracting authorities and contracting entities to procure only new buildings and building renovations with high circularity and resource efficiency standards , based on techniques allowing for easy dismantling and high levels of recovery and recycling of materials. member states shall establish targets aiming to double the current rate of use of secondary materials for public new and renovated buildings by 2030 for each material class , allowing the valorisation of locally sourced materials. in accordance with the requirements laid down in annex iv , member states shall require contracting authorities and contracting entities to apply union green public procurement criteria.


### 5. member states may require obligated parties to work with local authorities or municipalities to promote energy efficiency improvement measures among people affected by energy poverty , vulnerable customers and , where applicable , people living in social housing. this includes identifying and addressing the specific needs of particular groups at risk of energy poverty or more susceptible to its effects. to protect people affected by energy poverty vulnerable customers and , where applicable , people living in social housing , member states shall encourage obligated parties to carry out actions such as renovation of buildings , including social housing , replacement of appliances , financial support and incentives for energy efficiency improvement measures in conformity with national financing and support schemes , or energy audits. ### 5. member states may require obligated parties to work with local authorities or municipalities to promote energy efficiency improvement measures among people affected by energy poverty , vulnerable customers and , where applicable , people living in social housing , aiming at deep renovations. this includes identifying and addressing the specific needs of particular groups at risk of energy poverty or more susceptible to its effects. to protect people affected by energy poverty vulnerable customers and , where applicable , people living in social housing , member states shall encourage obligated parties to carry out actions such as one-step deep renovations of buildings , including social housing , replacement of appliances , financial support and incentives for energy efficiency improvement measures in conformity with national financing and support schemes , or energy audits.


### 1. member states shall take appropriate measures to empower and protect people affected by energy poverty , vulnerable customers and , where applicable , people living in social housing. ### 1. member states shall develop a robust long-term strategy that would grant appropriate technical and financial assistance to consumers , including solutions such as less emitting heating or cooling systems , and create regional task forces that would monitor , inform , empower and protect people affected by energy poverty , vulnerable customers and , where applicable , people living in social housing , to alleviate energy poverty.


### 3. member states shall adopt measures that ensure that energy efficiency lending products , such as green mortgages and green loans , secured and unsecured , are offered widely and in a non-discriminatory manner by financial institutions and , are visible and accessible to consumers. member states shall adopt measures to facilitate the implementation of on-bill and on-tax financing schemes. member states shall ensure that t banks and other financial institutions receive information on opportunities to participate in the financing of energy efficiency improvement measures , including through the creation of public/private partnerships. ### 3. member states shall adopt measures that ensure that energy efficiency lending products , such as green mortgages and green loans , secured and unsecured , are offered widely and in a non-discriminatory manner by financial institutions and , are visible and accessible to consumers. member states shall adopt measures to facilitate the implementation of on-bill and on-tax financing schemes. to do so , member states shall ensure that national legislation on energy and its taxation , and the financial regulatory frameworks governing energy utilities , enable the design and implementation of consumer-friendly on-bills and on-tax schemes. member states shall ensure that banks and other financial institutions receive information on opportunities to participate in the financing of energy efficiency improvement measures , including through the creation of public/private partnerships , prioritising the implementation of operational de-risking tools like loan-loss reserves and guarantee funds.


### be based on up-to-date , measured , traceable operational data on energy consumption and (for electricity) load profiles; ### be based on up-to-date , measured , traceable operational data on energy consumption and (for electricity) load profiles and water consumption;


### 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 principle was taken into account in the national and regional planning , policy and major investment decisions related to the national and regional energy systems. ### 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 principle was taken into account in the national and regional planning , policy and investment decisions related to the national and regional energy systems.


### 1. member states shall collectively ensure a reduction of energy consumption of at least 9 % in 2030 compared to the projections of the 2020 reference scenario so that the union’s final energy consumption amounts to no more than 787 mtoe and the union’s primary energy consumption amounts to no more than 1023 mtoe in 2030.91 ### 1. member states shall collectively ensure a reduction of energy consumption of at least 45 % in 2030 compared to the projections of the 2007 reference scenario.


### 2. each member state shall set 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 an indicative trajectory 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 doing so , member states shall use the formula defined in annex i of this directive and explain how , and on the basis of which data , the contributions have been calculated. ### 2. each member state shall set binding national energy efficiency targets for final and primary energy consumption to meet , collectively , the binding union target set in paragraph 1. when doing so , member states shall use the formula defined in annex i of this directive and use its result. member states shall notify those contributions together with an indicative trajectory 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. by 2027 , the indicative trajectory shall reach a reference point of at least 65 % of the total decrease in energy consumption between that member state's binding 2020 national target and its contribution to the 2030 target.


### other national circumstances affecting energy consumption , in particular: ### deleted


### 1. without prejudice to article 7 of directive 2010/31/eu of the european parliament and of the council92 , each member state shall ensure that at least 3 % of the total floor area of heated and/or cooled buildings owned by public bodies is renovated each year to at least be transformed into nearly zero-energy buildings in accordance with article 9 of directive 2010/31/eu. ### 1. without prejudice to article 7 of directive 2010/31/eu of the european parliament and of the council92 , each member state shall ensure that at least 3% of the total floor area of heated and/or cooled buildings owned by public bodies as well as at least 3% of the total floor area of heated and/or cooled privately owned buildings providing structures that support the quality of life are subject to deep renovations each year to at least be transformed into nearly zero-energy buildings in accordance with article 9 of directive 2010/31/eu.


### the rate of at least 3% shall be calculated on the total floor area of buildings having a total useful floor area over 250 m2 owned by public bodies of the member state concerned and which , on 1 january 2024 , are not nearly zero-energy buildings . ### the rate of at least 3% shall be calculated on the total floor area of buildings having a total useful floor area over 250 m2 owned by public bodies of the member state concerned and privately owned buildings providing structures that support the quality of life which , on 1 january 2024 , are not nearly zero-energy buildings.


### 2. in exceptional cases , member states may count towards the annual renovation rate of buildings new buildings owned as replacements for specific public bodies’ buildings demolished in any of the two previous years. such exceptions shall only apply where they would be more cost effective and sustainable in terms of the energy and lifecycle co2 emissions achieved compared to the renovations of such buildings. the general criteria , methodologies and procedures to identify such exceptional cases shall be clearly set out and published by each member state. ### 2. in exceptional cases , member states may count towards the annual renovation rate of buildings new buildings owned as replacements for specific public bodies’ buildings demolished in any of the two previous years. such exceptions shall only apply where they would be more cost effective and sustainable in terms of the energy and lifecycle co2 emissions achieved compared to the renovations of such buildings. the commission shall define general criteria , methodologies and procedures to identify such exceptional cases in a dedicated guidance document.


### 3. for the purposes of this article , member states shall make publicly available an inventory of heated and/or cooled public bodies’ buildings with a total useful floor area of more than 250 m2. this inventory shall be updated at least once a year. the inventory shall contain at least the following data: ### 3. for the purposes of this article , member states shall make publicly available an inventory of heated and/or cooled owned by public bodies and privately owned buildings providing structures that support the quality of life with a total useful floor area of more than 250 m2. this inventory shall be updated at least once a year and the information on measured energy savings resulting from the renovation of public buildings shall also be included and made publicly available in the inventory , which shall be linked to the national energy performance certificate (epc) databases.


### new savings each year from 1 january 2024 to 31 december 2030 of 1 ,5 % of annual final energy consumption , averaged over the three-year period prior to 1 january 2020. ### new savings each year from 1 january 2024 to 31 december 2030 of 2 % of annual final energy consumption , averaged over the three-year period prior to 1 january 2020.


### 2. member states shall ensure that enterprises with an average annual consumption higher than 10tj of energy over the previous three years and taking all energy carriers together that do not implement an energy management system are subject to an energy audit. energy audits shall be carried out in an independent and cost-effective manner by qualified or accredited experts in accordance with requirements provided in article 26 or implemented and supervised by independent authorities under national legislation. energy audits shall be carried out at least every four years from the date of the previous energy audit. ### 2. member states shall ensure that enterprises with an average annual consumption higher than 10tj of energy over the previous three years and taking all energy carriers together that do not implement an energy management system are subject to an energy audit. following the implementation of the recommendations from the energy audit , a post-work diagnosis shall be carried out at the earliest one year and at the latest two years after the completion of the work. energy audits shall be carried out in an independent and cost-effective manner by qualified or accredited experts in accordance with requirements provided in article 26 and implemented and supervised by independent authorities under national legislation. accreditation of energy auditors shall be sector specific , including for buildings , industrial process , and transport. energy audits shall be carried out at least every four years from the date of the previous energy audit.


### the energy audits referred to in the first subparagraph may be carried out by in-house experts or energy auditors provided that the member state concerned has put in place a scheme to assure and check their quality , including , if appropriate , an annual random selection of at least a statistically significant percentage of all the energy audits they carry out. ### the energy audits referred to in the first subparagraph may be carried out by in-house experts or energy auditors provided that they are not directly engaged in the activity audited and that the member state concerned has put in place a scheme to assure and check their quality , including , if appropriate , an annual random selection of at least a statistically significant percentage of all the energy audits they carry out.


### 10. without prejudice to paragraphs 1 to 9 , member states shall require , by 15 march 2024 and every year thereafter , owners and operators of every data centre in their territory with a significant energy consumption to make publicly available the information set out in annex vi (`minimum requirements for monitoring and publishing the energy performance of data centres´) , which member states shall subsequently report to the commission. ### 10. without prejudice to paragraphs 1 to 9 of this article , member states shall require , by 15 march 2024 and every year thereafter , owners and operators of each data centre in their territory with a significant energy consumption to make publicly available the information set out in point 2 of annex vi , which member states shall subsequently report to the commission. the commission shall adopt guidelines on monitoring and publishing the energy performance of data centres in accordance with point 2 of annex vi by no later than 15 march 2024. the commission shall provide harmonised definitions for each reporting indicator , a uniform measurement methodology for each , and provide guidance on uniform reporting and publishing requirements.


### (7) to achieve the increased climate ambition , the impact assessment accompanying the climate target plan has shown that energy efficiency improvements will need to be significantly raised from the current level of ambition of 32 ,5%. ### (7) to achieve the increased climate ambition , the impact assessment accompanying the climate target plan has shown that energy efficiency improvements will need to be significantly raised from the current level of ambition of 32 ,5%. as there were no binding targets at member states level in 2020 and member states established their contributions only by using the formula provided in this directive , it is necessary to underline that the targets set in their national plans might have been met only because of the decreasing demand imposed by the covid-19 pandemic. as a scientifical study1a shows , the impact of the covid-pandemic will continue to contribute to the reduction of energy demand through to 2050 by 8% , resulting in energy demand in 2050 at almost exactly the level in was in 2018; yet , an 8% drop in energy use is not enough to progress towards the paris agreement ambitions nor the european green deal objectives and to reach the 1.5-degree target would mean to repeat the decline experienced in 2020 every year from now on.


### (7) to achieve the increased climate ambition , the impact assessment accompanying the climate target plan has shown that energy efficiency improvements will need to be significantly raised from the current level of ambition of 32 ,5%. ### (7) to achieve the increased climate ambition , the impact assessment accompanying the climate target plan has shown that energy efficiency improvements will need to be significantly raised from the current level of ambition of 32 ,5%. furthermore , given the ongoing security crisis in europe and surging energy prices , it is imperative to consider boosting the fit for 55 proposals with higher or earlier targets for energy efficiency.


### (8) the sum of national contributions communicated by member states in their national energy and climate plans (necps) falls short of the union’s level of ambition of 32 ,5%. the contributions collectively would lead to a reduction of 29 ,4% for final energy consumption and 29 ,7% for primary energy consumption compared to the projections from the 2007 reference scenario for 2030. that would translate in a collective gap of 2 ,8 percentage points for primary energy consumption and 3 ,1 percentage points for final energy consumption for the eu 27. ### (8) the sum of national contributions communicated by member states in their national energy and climate plans (necps) falls short of the union’s level of ambition of 32 ,5%. the contributions collectively would lead to a reduction of 29 ,4% for final energy consumption and 29 ,7% for primary energy consumption compared to the projections from the 2007 reference scenario for 2030. that would translate in a collective gap of 2 ,8 percentage points for primary energy consumption and 3 ,1 percentage points for final energy consumption for the eu 27. moreover , it is notable that member states collectively met the 2020 energy efficiency targets only due to the substantial drop in energy consumption in 2020 , as a result of the covid-19 pandemic. calculations show that , in 2019 , member states were not on track to meeting the 2020 energy efficiency targets.


### (14) in order to have an impact , the energy efficiency first principle needs to be consistently applied by decision makers in all relevant policy , planning and major investment decisions – that is to say large-scale investments with a value of more than 50 euro million each or 75 euro million for transport infrastructure projects – affecting energy consumption or supply. the proper application of the principle requires using the right cost-benefit analysis methodology , setting enabling conditions for energy efficient solutions and proper monitoring. demand side flexibility can bring significant benefits to consumers and to society at large , and can increase the efficiency of the energy system and decrease the energy costs , for example by reducing system operation costs resulting in lower tariffs for all consumers. member states should take into account potential benefits from demand side flexibility in applying the energy efficiency first principle and where relevant consider demand response , energy storage and smart solutions as part of their efforts to increase efficiency of the integrated energy system. ### (14) in order to have an impact , the energy efficiency first principle needs to be consistently applied by decision makers in all relevant policy , planning and investment decisions affecting energy consumption or supply. the proper application of the principle requires using the right cost-benefit analysis methodology , setting enabling conditions for energy efficient solutions and proper monitoring. demand side flexibility can bring significant benefits to consumers and to society at large , and can increase the efficiency of the energy system and decrease the energy costs , for example by reducing system operation costs resulting in lower tariffs for all consumers. member states should take into account potential benefits from demand side flexibility in applying the energy efficiency first principle and where relevant consider demand response , energy storage and smart solutions as part of their efforts to increase efficiency of the integrated energy system.


### (21) it is projected that the 32 ,5% union´s energy efficiency target for 2030 and the other policy instruments of the existing framework would lead to a reduction in ghg emission of about 45% by 2030.59 for an increased climate ambition of a 55% decrease of ghg emissions by 2030 , the impact assessment of the 2030 climate target plan assessed what level of efforts would be needed in the different policy areas. it concluded that , in relation to the baseline , achieving the ghg emissions target in a cost-optimal way meant that final and primary energy consumption are to decreased by at least 36-37% and 39-41% respectively. ### (21) it is projected that the 32 ,5% union´s energy efficiency target for 2030 and the other policy instruments of the existing framework would lead to a reduction in ghg emission of about 45% by 2030.59 for an increased climate ambition of a 55% decrease of ghg emissions by 2030 , the impact assessment of the 2030 climate target plan assessed what level of efforts would be needed in the different policy areas. it concluded that , in relation to the baseline , achieving the ghg emissions target in a cost-optimal way meant that final and primary energy consumption are to decrease by at least 36-37% and 39-41% respectively. to address those efforts more effectively and realistically cutting the energy consumption levels , the need for innovative energy solutions to reduce ghg , such as the development of digital technologies and the recognition of the central role of power feeding and data centres , is vital; fast-tracking progress in this sector should also be encouraged through the creation of a monitoring plan , as high innovative capabilities are a key driver to reducing ghg globally.


### (22) the union’s energy efficiency target was initially set and calculated using the 2007 reference scenario projections for 2030 as a baseline. the change in the eurostat energy balance calculation methodology and improvements in subsequent modelling projections call for a change of the baseline. thus , using the same approach to define the target , that is to say comparing it to the future baseline projections , the ambition of the union’s 2030 energy efficiency target is set compared to the 2020 reference scenario projections for 2030 reflecting national contributions from the necps. with that updated baseline , the union will need to further increase its energy efficiency ambition by at least 9% in 2030 compared to the level of efforts under the 2020 reference scenario. the new way of expressing the level of ambition for the union’s targets does not affect the actual level of efforts needed and corresponds to a reduction of 36% for final and 39% for primary energy consumption respectively when compared to the 2007 reference scenario projections for 2030. ### (22) this directive sets the increased union’s energy efficiency ambition at least 45% in 2030 compared to the 2007 reference scenario.


### (24) the need for the union to improve its energy efficiency should be expressed in primary and final energy consumption , to be achieved in 2030 , indicating additional level of efforts required when compared to the measures in place or planned measures in the national energy and climate plans. the 2020 reference scenario projects 864 mtoe of final energy consumption and 1124 mtoe of primary energy consumption to be reached in 2030 (excluding ambient heat and including international aviation). an additional reduction of 9% results in 787 mtoe and 1023 mtoe in 2030 respectively. compared to 2005 levels , it means that final energy consumption in the union should be reduced by some 23% and primary energy consumption should be reduced by some 32%. there are no binding targets at member state level in the 2020 and 2030 perspective , and member states should establish their contributions to the achievement of the union’s energy efficiency target taking into account the formula provided in this directive. member states should be free to set their national objectives based either on primary or final energy consumption or primary or final energy savings , or on energy intensity. this directive amends the way how member states should express their national contributions to the union´s target. member states’ contributions to the union’s target should be expressed in final and primary energy consumption to ensure consistency and monitoring of progress. a regular evaluation of progress towards the achievement of the union's 2030 targets is necessary and is provided for in regulation (eu) 2018/1999. ### (24) the need for the union to improve its energy efficiency should be expressed in primary and final energy consumption , to be achieved in 2030 , indicating additional level of efforts required when compared to the measures in place or planned measures in the national energy and climate plans. the 2020 reference scenario projects 864 mtoe of final energy consumption and 1124 mtoe of primary energy consumption to be reached in 2030 (excluding ambient heat and including international aviation). an additional reduction of 9% results in 787 mtoe and 1023 mtoe in 2030 respectively. member states should establish their binding targets to the achievement of the union’s energy efficiency target according to the formula provided in this directive. this directive amends the way how member states should express their targets to the achievement of the union´s target. member states’ targets to the union’s target should be expressed in final and primary energy consumption to ensure consistency and monitoring of progress. a regular evaluation of progress towards the achievement of the union's 2030 targets is necessary and is provided for in regulation (eu) 2018/1999.


### (25) it would be preferable for the energy efficiency target to be achieved as a result of the cumulative implementation of specific national and european measures promoting energy efficiency in different fields. member states should be required to set national energy efficiency policies and measures . those policies and measures and the individual efforts of each member state should be evaluated by the commission , alongside data on the progress made , to assess the likelihood of achieving the overall union target and the extent to which the individual efforts are sufficient to meet the common goal. ### (25) the energy efficiency target should be achieved as a result of the cumulative implementation of specific national and european measures , applied following careful calculations and scientifically proven assessments to avoid disrupting smes’ and industries’ activity. member states should be able to report precisely statistical data related to the current levels of energy efficiency and the national policies and measures they will implement to reach the established target. the commission should evaluate the policies and measures of each member state , alongside the data on the progress made , to assess the likelihood of achieving the overall union target and the extent to which the individual efforts are sufficient to meet the common goal.


### (26) the public sector is responsible for around 5 to 10% of total union’s final energy consumption. public authorities spend approximately 1.8 trillion euro annually. this represents around 14% of the union’s gross domestic product. for that reason the public sector constitutes an important driver to stimulate market transformation towards more efficient products , buildings and services , as well as to trigger behavioural changes in energy consumption by citizens and enterprises. furthermore , decreasing energy consumption through energy efficiency improvement measures can free up public resources for other purposes. public bodies at national , regional and local level should fulfil an exemplary role as regards energy efficiency. ### (26) the public sector is responsible for around 5 to 10% of the total union’s final energy consumption. public authorities spend approximately 1.8 trillion euro annually. this represents around 14% of the union’s gross domestic product. for this reason , the public sector should take the lead in the implementation of energy efficiency directives. doing so can actively incentivise market transformations towards more efficient products , buildings , and services , as well as trigger behavioural changes in energy consumption by citizens and enterprises. furthermore , by generating savings in energy consumption through energy efficiency improvement mechanisms , local , regional and national authorities can make use of an increased budget to accelerate the deployment and rapidly commercialise innovative technologies in different sectors , including via the eu catalyst partnership.1a


### (29) member states should exercise an exemplary role by ensuring that all energy performance contracts and energy management systems are carried out in the public sector in line with european or international standards , or that energy audits are used to a large extent in the intense energy consuming parts of the public sector. ### (29) member states should exercise an exemplary role by ensuring that all energy performance contracts and energy management systems are carried out in the public sector in line with european or international standards , or that energy audits are used in the all energy consuming parts of the public sector.


### (32) buildings and transport , alongside industry , are the main energy users and main source of emissions.61 buildings are responsible for about 40% of the union’s total energy consumption and for 36% of its ghg from energy.62 the commission communication entitled renovation wave63 addresses the twin challenge of energy and resource efficiency and affordability in the building sector and aims at doubling the renovation rate. it focusses on the worst performing buildings , energy poverty and on public buildings. moreover , buildings are crucial to achieving the union objective of reaching climate neutrality by 2050. buildings owned by public bodies account for a considerable share of the building stock and have high visibility in public life. it is therefore appropriate to set an annual rate of renovation of buildings owned by public bodies on the territory of a member state to upgrade their energy performance. member states are invited to set a higher renovation rate , where that is cost-effective in the framework of the renovation of their buildings stock in conformity with their long term renovation strategies or national renovation programmes. that renovation rate should be without prejudice to the obligations with regard to nearly-zero energy buildings (nzebs) set in directive 2010/31/eu of the european parliament and of the council.64 during the next review of directive 2010/31/eu , the commission should assess the progress member states achieved regarding the renovation of public bodies’ buildings. the commission should consider submitting a legislative proposal to revise the renovation rate , while taking into account the progress achieved by the member states , substantial economic or technical developments , or where needed , the union´s commitments for decarbonisation and zero pollution. the obligation to renovate public bodies’ buildings in this directive complements that directive , which requires member states to ensure that when existing buildings undergo major renovation their energy performance is upgraded so that they meet the requirements on nzebs. ### (32) buildings and transport , alongside industry , are the main energy users and main source of emissions.61 buildings are responsible for about 40% of the union’s total energy consumption and for 36% of its ghg from energy.62 the commission communication entitled renovation wave63 addresses the twin challenge of energy and resource efficiency and affordability in the building sector and aims at doubling the renovation rate. it focusses on the worst performing buildings , energy poverty and on public buildings. moreover , buildings are crucial to achieving the union objective of reaching climate neutrality by 2050. buildings owned by public bodies and buildings providing educational , cultural , social assistance , health , judicial and administrative services account for a considerable share of the building stock and have high visibility in public life. it is therefore appropriate to set an annual rate of renovation of buildings owned by public bodies on the territory of a member state to upgrade their energy performance. member states are invited to set a higher renovation rate , where that is cost-effective in the framework of the renovation of their buildings stock in conformity with their long term renovation strategies or national renovation programmes. that renovation rate should be without prejudice to the obligations with regard to nearly-zero energy buildings (nzebs) set in directive 2010/31/eu of the european parliament and of the council.64 during the next review of directive 2010/31/eu , the commission should assess the progress member states achieved regarding the renovation of public bodies’ buildings. the commission should consider submitting a legislative proposal to revise the renovation rate , while taking into account the progress achieved by the member states , substantial economic or technical developments , or where needed , the union´s commitments for decarbonisation and zero pollution. the obligation to renovate buildings owned by public bodies in this directive complements that directive , which requires member states to ensure that when existing buildings undergo major renovation their energy performance is upgraded so that they meet the requirements on nzebs.


### (38) the european green deal recognises the role of circular economy in contributing to overall union decarbonisation objectives. the public sector can contribute to those objectives by using their purchasing power to , where appropriate , choose environmentally friendly products , buildings , services and works via available tools for green public procurement , and thus making an important contribution to reduce energy consumption and environmental impacts. ### (38) the european green deal recognises the role of circular economy in contributing to overall union decarbonisation objectives. the public sector can contribute to those objectives by using their purchasing power to , where appropriate , choose environmentally friendly products , buildings , services , and works via available tools for green public procurement , and thus making an important contribution to reduce energy consumption and environmental impacts. any public auction in the union should include in its contractual precedence clauses task execution under strict environmentally friendly conditions established by the individual member state in line with union law. furthermore , the public sector should comply with regulation (eu) 2021/17671a and transparently offer access to environmental information , including policies and measures taken and allow everyone to exercise their right to public participation in environmental decision-making.


### (55) long-term energy efficiency measures will continue to deliver energy savings after 2020 but , in order to contribute to the union's 2030 energy efficiency target , those measures should deliver new savings after 2020. on the other hand , energy savings achieved after 31 december 2020 should not count towards the cumulative end-use energy savings required for the period from 1 january 2014 to 31 december 2020. ### (55) long-term energy efficiency measures will continue to deliver energy savings after 2020 but , to contribute to the union's 2030 energy efficiency target , those measures should deliver new savings after 2020. all new savings regarded as significant and generated after 2020 should be recorded and analysed to assess the total benefits and possible future ripple effects or innovations towards the union's 2030 energy efficiency target. at the same time , energy savings achieved after 31 december 2020 should not count towards the cumulative end-use energy savings required from 1 january 2014 to 31 december 2020.


### (65) where energy audits are carried out by in-house experts , the necessary independence would require these experts not to be directly engaged in the activity audited. ### (65) to guarantee the high quality and impartiality of audits , auditors should be independent experts , who , when working in-house , are not directly engaged in the activity audited. to guarantee transparency , both the audit recommendations and the measures implemented following the audit recommendations should be easily available on the enterprise’s website.


### (66) the information and communications technology (ict) sector another important sector which receives increasing attention. in 2018 the energy consumption of data centres in the eu was 76 ,8 twh. this is expected to rise to 98.5 twh by 2030 , a 28% increase. this increase in absolute terms can as well be seen in relative terms: within the eu , data centres accounted for 2 ,7% of electricity demand in 2018 and will reach 3 ,21% by 2030 if development continues on the current trajectory75 . europe’s digital strategy already highlighted the need for highly energy-efficient and sustainable data centres and calls for transparency measures for telecommunication operators on their environmental footprint. to promote sustainable development in the ict sector , particularly of data centres , member states should collect and publish data , which is relevant for the energy performance and water footprint of data centres. member states should collect and publish data only about data centres with a significant footprint , for which appropriate design or efficiency interventions , for new or existing installations respectively , can result in a considerable reduction of the energy and water consumption or in the reuse of waste heat in nearby facilities and heat networks. a data centre sustainability indicator can be established on the basis of that data collected ### (66) the information and communications technology (ict) sector another important sector which receives increasing attention. in 2018 the energy consumption of data centres in the eu was 76 ,8 twh. this is expected to rise to 98.5 twh by 2030 , a 28% increase. this increase in absolute terms can as well be seen in relative terms: within the eu , data centres accounted for 2 ,7% of electricity demand in 2018 and will reach 3 ,21% by 2030 if development continues on the current trajectory75 . europe’s digital strategy already highlighted the need for highly energy-efficient and sustainable data centres and calls for transparency measures for telecommunication operators on their environmental footprint. to promote sustainable development in the ict sector , particularly of data centres , member states should collect and publish data , which is relevant for the energy performance and water footprint of data centres. member states should collect and publish data only about data centres with a significant footprint , for which appropriate design or efficiency interventions , for new or existing installations respectively , can result in a considerable reduction of the energy and water consumption or in the reuse of waste heat in nearby facilities and heat networks. a data centre sustainability indicator can be established on the basis of that data collected. to facilitate the disclosure , the commission should prepare guidelines and recommendations , sector-specific manuals and case studies on key energy and water performance indicators. the commission should carry out appropriate consultations , including with relevant industry stakeholders.


### (69) it is crucial to raise the awareness of all union citizens about the benefits of increased energy efficiency and to provide them with accurate information on the ways in which it can be achieved. citizens of all ages should also be involved in the energy transition via the european climate pact and the conference on the future of europe. increased energy efficiency is also highly important for the security of energy supply of the union through lowering its dependence on import of fuels from third countries. ### (69) it is crucial to raise the awareness of all union citizens about the benefits of increased energy efficiency and to provide them with accurate information on the ways in which it can be achieved. citizens of all ages should also be involved in the energy transition via the european climate pact and the conference on the future of europe , especially in the context that 2022 has been established as the european year of youth by the european parliament. increased energy efficiency is also highly important for the security of energy supply of the union through lowering its dependence on import of fuels from third countries.


### (80) high-efficiency cogeneration and efficient district heating and cooling have significant potential for saving primary energy in the union. member states should carry out a comprehensive assessment of the potential for high-efficiency cogeneration and efficient district heating and cooling. those assessments should be coherent with the integrated national energy and climate plans and long term renovation strategies . new electricity generation installations and existing installations which are substantially refurbished or whose permit or licence is updated should , subject to a cost-benefit analysis showing a cost-benefit surplus , be equipped with high-efficiency cogeneration units to recover waste heat stemming from the production of electricity. similarly , other facilities with substantial annual average energy input should be equipped with technical solutions to deploy waste heat from the facility where the cost-benefit analysis shows a cost-benefit surplus. this waste heat could be transported where it is needed through district heating networks. the events that trigger a requirement for authorisation criteria to be applied will generally be events that also trigger requirements for permits under directive 2010/75/eu of the european parliament and of the council76 and for authorisation under directive (eu) 2019/944. ### (80) high-efficiency cogeneration and efficient district heating and cooling have significant potential for saving primary energy in the union. this directive should include an ambitious yearly target for the replacement of old and inefficient heating equipment , as modern heating systems cut energy use , co2 emissions from buildings and push progressively towards a 100% renewable energy-based national heating and cooling strategy. member states should carry out a comprehensive assessment of the potential for high-efficiency cogeneration and efficient district heating and cooling. those assessments should be coherent with the integrated national energy and climate plans and long term renovation strategies. new electricity generation installations and existing installations which are substantially refurbished or whose permit or licence is updated should , subject to a cost-benefit analysis showing a cost-benefit surplus , be equipped with high-efficiency cogeneration units to recover waste heat stemming from the production of electricity. similarly , other facilities with substantial annual average energy input should be equipped with technical solutions to deploy waste heat from the facility where the cost-benefit analysis shows a cost-benefit surplus. this waste heat could be transported where it is needed through district heating networks. the events that trigger a requirement for authorisation criteria to be applied will generally be events that also trigger requirements for permits under directive 2010/75/eu of the european parliament and of the council76 and for authorisation under directive (eu) 2019/944.


### (102) it is necessary to continue developing the market for energy services to ensure the availability of both the demand for and the supply of energy services. transparency , for example by means of lists of certified energy services providers and available model contracts , exchange of best practice and guidelines greatly contribute to the uptake of energy services and energy performance contracting and can also help stimulate demand and increase the trust in energy services providers . in an energy performance contract the beneficiary of the energy service avoids investment costs by using part of the financial value of energy savings to repay the investment fully or partially carried out by a third party. that can help attracting private capital which is key for increasing building renovation rates in the union , bring expertise into the market and create innovative business models. therefore , non-residential buildings with the useful floor area above 1000 m2 should be required to assess the feasibility of using energy performance contracting for renovation. that is a step ahead to increase the trust in energy services companies and pave the way for increasing such projects in the future. ### (102) it is necessary to continue developing the market for energy services to ensure the availability of both the demand for and the supply of energy services. transparency , for example by means of lists of certified energy services providers and available model contracts , exchange of best practice and guidelines greatly contribute to the uptake of energy services and energy performance contracting and can also help stimulate demand and increase the trust in energy services providers. in an energy performance contract , the beneficiary of the energy service avoids investment costs by using part of the financial value of energy savings to repay the investment fully or partially carried out by a third party. that can help attracting private capital which is key for increasing building renovation rates in the union , bring expertise into the market and create innovative business models. therefore , non-residential buildings with the useful floor area above 750 m2 should be required to use energy performance contracting for renovation , unless not technically or economically feasible. that is a step ahead to increase the trust in energy services companies and pave the way for increasing such projects in the future.


### (102) it is necessary to continue developing the market for energy services to ensure the availability of both the demand for and the supply of energy services. transparency , for example by means of lists of certified energy services providers and available model contracts , exchange of best practice and guidelines greatly contribute to the uptake of energy services and energy performance contracting and can also help stimulate demand and increase the trust in energy services providers . in an energy performance contract the beneficiary of the energy service avoids investment costs by using part of the financial value of energy savings to repay the investment fully or partially carried out by a third party. that can help attracting private capital which is key for increasing building renovation rates in the union , bring expertise into the market and create innovative business models. therefore , non-residential buildings with the useful floor area above 1000 m2 should be required to assess the feasibility of using energy performance contracting for renovation. that is a step ahead to increase the trust in energy services companies and pave the way for increasing such projects in the future. ### (102) it is necessary to continue developing the market for energy services to ensure the availability of both the demand for and the supply of energy services. transparency , for example by means of lists of certified energy services providers and available model contracts , exchange of best practice and guidelines greatly contribute to the uptake of energy services and energy performance contracting and can also help stimulate demand and increase the trust in energy services providers . in an energy performance contract the beneficiary of the energy service avoids investment costs by using part of the financial value of energy savings to repay the investment fully or partially carried out by a third party. that can help attracting private capital which is key for increasing building renovation rates in the union , bring expertise into the market and create innovative business models. therefore , non-residential buildings with the useful floor area above 500 m2 should be required to assess the feasibility of using energy performance contracting for renovation. that is a step ahead to increase the trust in energy services companies and pave the way for increasing such projects in the future.


### (124) some of the changes introduced by this directive might require a subsequent amendment to regulation (eu) 2018/1999 in order to ensure coherence between the two legal acts. new provisions , mainly related to setting national contributions , gap filling mechanisms and reporting obligations , should be streamlined and transferred to that regulation , once it is amended. some provisions of regulation (eu) 2018/1999 might also need to be reassessed in view of the changes proposed in this directive. the additional reporting and monitoring requirements should not create any new parallel reporting systems but would be subject to the existing monitoring and reporting framework under regulation (eu) 2018/1999. ### (124) some of the changes introduced by this directive might require a subsequent amendment to regulation (eu) 2018/1999 in order to ensure coherence between the two legal acts. new provisions , mainly related to setting binding national targets , trajectories and their binding milestones , gap filling mechanisms and reporting obligations , should be streamlined and transferred to that regulation , once it is amended. some provisions of regulation (eu) 2018/1999 might also need to be reassessed in view of the changes proposed in this directive. the additional reporting and monitoring requirements should not create any new parallel reporting systems but would be subject to the existing monitoring and reporting framework under regulation (eu) 2018/1999.


### 1. this directive establishes a common framework of measures to promote energy efficiency within the union in order to ensure that the union's target on energy efficiency is met and enables further energy efficiency improvements . ### 1. this directive establishes a common framework of measures to prioritise and promote energy efficiency within the union in order to ensure that the binding union's target on energy efficiency is met and enables further energy efficiency improvements , enhancing the union's contribution to the implementation of the paris agreement as well as the eu's energy independence.


### this directive lays down rules designed to implement energy efficiency as a priority across all sectors , remove barriers in the energy market and overcome market failures that impede efficiency in the supply and use of energy. it also provides for the establishment of indicative national energy efficiency contributions for 2030. ### this directive lays down rules designed to implement energy efficiency as a priority across all sectors , remove barriers in the energy market and overcome market failures that impede efficiency in the supply and use of energy. it also provides for the establishment of binding national energy efficiency targets for 2030.


### this directive lays down rules designed to implement energy efficiency as a priority across all sectors , remove barriers in the energy market and overcome market failures that impede efficiency in the supply and use of energy. it also provides for the establishment of indicative national energy efficiency contributions for 2030. ### this directive lays down rules designed to implement energy efficiency as a priority across all sectors , remove barriers in the energy market and overcome market failures that impede efficiency in the supply , transmission , storage and use of energy. it also provides for the establishment of binding national energy efficiency targets for 2030.


### (vii) digital tools. . ### (vii) digital tools , such as smart meters for electricity.


### creation of one-stop shops or similar mechanisms for the provision of technical , administrative and financial advice and assistance on energy efficiency , including energy renovations of buildings and the take-up of renewable energy for buildings to final customers and final users , especially household and small non-household ones. ### creation of one-stop shops or similar mechanisms for the provision of technical , administrative and financial advice and assistance on energy efficiency , including energy renovations of buildings , energy efficiency services and energy performance solutions such as energy performance contracts , and the take-up of renewable energy for buildings to final customers and final users , especially household and small non-household ones.


### measures to remove such barriers may include providing incentives , repealing or amending legal or regulatory provisions , or adopting guidelines and interpretative communications , or simplifying administrative procedures , including national rules and measures regulating decision-making processes in multi-owner properties . the measures may be combined with the provision of education , training and specific information and technical assistance on energy efficiency to market actors such as those referred in paragraph 1 . ### measures to remove such barriers may include providing incentives , repealing or amending legal or regulatory provisions , or adopting guidelines and interpretative communications , or simplifying administrative procedures , including national rules and measures regulating decision-making processes in multi-owner properties. the measures may be combined with the provision of education , training and specific information and technical assistance on energy efficiency to market actors such as those referred in paragraph 1. those arrangements shall be a specific service or department of the local one-stop shop.


### 4. where the assessment referred to in paragraph 1 and the analysis referred to in paragraph 3 identify a potential for the application of high-efficiency cogeneration and/or efficient district heating and cooling whose benefits exceed the costs , member states shall take adequate measures for efficient district heating and cooling infrastructure to be developed and/or to accommodate the development of high-efficiency cogeneration and the use of heating and cooling from waste heat and renewable energy sources in accordance with paragraph 1 , and article 24(4) and (6). ### 4. where the assessment referred to in paragraph 1 and the analysis referred to in paragraph 3 identify a potential for the application of high-efficiency cogeneration and/or efficient district heating and cooling whose benefits exceed the costs , member states shall take adequate measures for efficient district heating and cooling infrastructure to be developed and to accommodate the development of high-efficiency cogeneration and the use of heating and cooling from waste heat and renewable energy sources in accordance with paragraph 1 , and article 24(4) and (6) , except from forestry biomass.


### 5. member states shall adopt policies and measures which ensure that the potential identified in the comprehensive assessments carried out pursuant to paragraph 1 is realised. these policies and measures shall include at least the elements set out in annex ix. each member state shall notify those policies and measures as part of the update of its integrated national energy and climate plans , its subsequent integrated national energy and climate plan , and respective progress reports notified in accordance with regulation (eu) 2018/1999. ### 5. member states shall adopt policies and measures which ensure that the potential identified in the comprehensive assessments carried out pursuant to paragraph 1 is realised. these policies and measures shall include at least the elements set out in annex ix. member states shall collect information on cogeneration plants and units in existing district heating and cooling networks and carry out an assessment of the potential for energy savings. that information shall contain at least the data on system efficiency , system losses , connection density , network losses and temperature spread , primary energy and final energy consumption , emission factors and upstream chains of the energy sources. that data shall be published and member states shall make that data publicly available. each member state shall notify those policies and measures as part of the update of its integrated national energy and climate plans , its subsequent integrated national energy and climate plan , and respective progress reports notified in accordance with regulation (eu) 2018/1999.


### 6. member states shall encourage regional and local authorities to prepare local heating and cooling plans at least in municipalities having a total population higher than 50.000. those plans should at least: ### 6. member states shall ensure that regional and local authorities prepare local heating and cooling plans at least in municipalities and communities having a total population higher than 25.000. those plans should at least:


### be based on the information and data provided in the comprehensive assessments carried out pursuant to paragraph 1 and provide an estimate and mapping of the potential for increasing energy efficiency , including via waste heat recovery , and renewable energy in heating and cooling in that particular area; ### be based on the information and data provided in the comprehensive assessments carried out pursuant to paragraph 1 , provide an estimate and mapping of the potential for increasing energy efficiency , including via waste heat recovery , and renewable energy in heating and cooling in that particular area , and develop a strategy to replace fossil fuel based heating and cooling appliances with high efficient , renewable energy based alternatives , based on the scenario of the assessments carried out pursuant to paragraph 1 leading to a fully renewable energy based national energy system within a timeframe compatible with the achievement of the climate neutrality objective by 2050 at the latest;


### b. from 1 january 2026 , a system using at least 50% renewable energy , 50% waste heat , 80% of high-efficiency cogenerated heat or at least a combination of such thermal energy going into the network where the share of renewable energy is at least 5% and the total share of renewable energy , waste heat or high-efficiency cogenerated heat is at least 50%; ### b. from 1 january 2026 , a system using always 60 percentage more renewable than fossil fuels fuelled individual generation energy technologies or alternatively , from 1 january 2026 , a system emitting no more than 50 g co2eq/kwh;


### c. from 1 january 2035 , a system using at least 50% renewable energy and waste heat , where the share of renewable energy is at least 20%; ### c. from 1 january 2035 , a system using exclusively a combination of renewable fuelled (either individual or combined generation) heat , including ambient heat , and unavoidable waste heat and cold sources or alternatively , from 1 january 2035 , a system emitting 0 g co2eq/kwh;


### 2. member states shall ensure that where a district heating and cooling system is built or substantially refurbished it meets the criteria set out in paragraph 1 applicable at such time when it starts or continues its operation after the refurbishment. in addition , member states shall ensure that when a district heating and cooling system is built or substantially refurbished , there is no increase in the use of fossil fuels other than natural gas in existing heat sources compared to the annual consumption averaged over the previous three calendar years of full operation before refurbishment , and that any new heat sources in that system do not use fossil fuels other than natural gas. ### 2. member states shall ensure that where a district heating and cooling system is substantially refurbished it meets the criteria set out in paragraph 1 applicable at such time when it starts or continues its operation after the refurbishment. in addition , member states shall ensure that when a district heating and cooling system is substantially refurbished , there is no increase in the use of fossil fuels in existing heat sources compared to the annual consumption averaged over the previous three calendar years of full operation before refurbishment , and that any new heat sources in that system do not use fossil fuels. furthermore , member states shall ensure that the geographic routing of existing district heating and cooling systems are mapped and published.


### 3. member states shall ensure that as from 1 january 2025 , and every five years thereafter , operators of all existing district heating and cooling systems with a total energy output exceeding 5 mw and which do not meet the criteria set out in paragraph 1(b) to (e) , prepare a plan to increase primary energy efficiency and renewable energy. the plan shall include measures to meet the criteria set out in paragraph 1(b) to (e) and shall be approved by the competent authority. ### 3. member states shall ensure that as from 1 january 2025 , and every five years thereafter , operators of all existing district heating and cooling systems with a total energy output exceeding 5 mw and which do not meet the criteria set out in paragraph 1(b) to (e) , prepare a plan to increase primary energy efficiency and renewable energy and to reduce distribution losses. the plan shall include measures to meet the criteria set out in paragraph 1(b) to (e) and shall be approved by the competent authority.


### 2. member states shall ensure that gas and electricity transmission and distribution system operators apply the energy efficiency first principle in accordance with article 3 of this directive in their network planning , network development and investment decisions. while taking security of supply and market integration into account , member states shall ensure that transmission system operators and distribution system operators do not invest in stranded assets to contribute to climate change mitigation. national regulatory authorities shall provide methodologies and guidance on how to assess alternatives in the cost-benefit analysis , taking into account wider benefits , and verify the implementation of the energy efficiency first principle by the transmission system operators or distribution system operators when approving , verifying or monitoring the projects submitted by the transmission system operators or distribution system operators. ### 2. member states shall ensure that gas and electricity transmission and distribution network operators apply the energy efficiency first principle in accordance with article 3 of this directive in their network planning , network development and investment decisions. while taking security of supply and market integration into account , member states shall ensure that transmission system operators and distribution system operators only invest in stranded assets to contribute to climate change mitigation. entities such as the european network transmission system operators (entso-e) and the european entity for distribution system operators (the eu dso entity) shall support their members in the uptake of energy efficiency measures. transmission system operators , after consulting stakeholders including distribution system operators , should provide methodologies and guidance on how to assess alternatives in the cost-benefit analysis , taking into account wider benefits. national regulatory authorities should verify the implementation of the energy efficiency first principle by the transmission system operators or distribution system operators when approving , verifying or monitoring the projects submitted by the transmission system operators or distribution system operators.


### 4. member states shall encourage public bodies to use energy performance contracting for renovations of large buildings. for renovations of large non-residential buildings with a useful floor area above 1000 m2 , member states shall ensure that public bodies assess the feasibility of using energy performance contracting. ### 4. member states shall encourage public bodies to use energy performance contracting , including in combination with other performance-based services , for renovations of large buildings and for public infrastructure. for renovations of buildings with a useful floor area above 500 m2 , member states shall ensure that public bodies use energy performance contracting , unless not technically or economically feasible. member states shall ensure that the parameters used for feasibility assessment are clearly defined and justified at central government level. when the use of energy performance contracting is assessed not to be feasible , the reasoning shall be made publicly available.


### 3. the commission is empowered to adopt delegated acts in accordance with article 32 to amend or supplement this directive by establishing , after having consulted the relevant stakeholders , a common union scheme for rating the sustainability of data centres located in its territory. the scheme shall establish the definition of data centre sustainability indicators , and , pursuant to paragraph 10 of article 11 of this directive , define the minimum thresholds for significant energy consumption and set out the key indicators and the methodology to measure them. ### 3. the commission is empowered to adopt delegated acts in accordance with article 32 to amend or supplement this directive by establishing , after having consulted the relevant stakeholders , a common union scheme for rating the sustainability of data centres located in its territory. the scheme shall establish the definition of data centre sustainability indicators , including how efficiently data centres use energy , how much of that energy comes from renewable energy sources , the reuse of any waste heat that is produced and the efficient use of water. pursuant to paragraph 10 of article 11 of this directive , the scheme shall define the minimum thresholds for significant energy and water consumption and set out the key indicators and the methodology to measure them.


### minimum requirements for monitoring and publishing the energy performance of data centres ### minimum requirements for monitoring and publishing the energy and water performance of data centres


### the following minimum information shall be monitored and published as regards the energy performance of data centres referred to in article 11(10): ### the following minimum information shall be monitored and published as regards the energy and water performance of data centres referred to in article 11(10):


### information about the fuel mix used and the related annual greenhouse gas emissions , including for final users supplied by district heating or district cooling , and a description of the different taxes , levies and tariffs applied. member states may limit the scope of the requirement to provide information about greenhouse gas emissions to include only supplies from district heating systems with a total rated thermal input exceeding 20 mw; ### information about the fuel mix used and the related annual greenhouse gas emissions and on the energy performance of the system used , including for final users supplied by district heating or district cooling , and a description of the different taxes , levies and tariffs applied;


### (118) in order to be able to evaluate the effectiveness of this directive , a requirement to conduct a general review of this directive and to submit a report to the european parliament and to the council by 28 february 2027 should be laid down . that review should allow necessary alignments , also taking into account economic and innovation developments. ### (118) in order to be able to evaluate the effectiveness of this directive , a requirement to conduct a general review of this directive and to submit a report to the european parliament and to the council by 28 february 2026 should be laid down . that review should allow necessary alignments , also taking into account economic and innovation developments.


### 1. welcomes the findings of the european court of auditors (‘the court’) that the consolidated accounts of the european union for 2021 present fairly , in all material respects , the union’s financial position; regrets that the estimated level of error in expenditure has increased up to 3%; ### 1. welcomes the findings of the european court of auditors (‘the court’) that the consolidated accounts of the european union for 2021 present fairly , in all material respects , the union’s financial position; regrets that the estimated level of error in expenditure has increased up to 3% , up from 2 ,7% last year , which was already noted and described as material and pervasive;


### 1. notes that 2021 was the first implementation year of the 2021-2027 mff and that the legal bases of the new erasmus+ , creative europe and european solidarity corps programmes were formally adopted in may 2021; ### 1. notes that 2021 was the first implementation year of the 2021-2027 mff and that the legal bases of the new erasmus+ , creative europe and european solidarity corps programmes were formally adopted in may 2021; recalls parliament’s insistence during the negotiations on a stronger focus on inclusion and diversity , notably gender balance , greening measures and sustainable digitalisation;


### 1. notes that the court of auditors , in its annual report for 20211 , estimated a level of error for the eu budget spending on ‘cohesion , resilience and values’ of 3.6 % in 2021 , up from 3.5 % in 2020; underlines that , for subheading ‘economic , social and territorial cohesion’ alone , the estimated level of error is 4.1 %; regrets that the downward trend of the previous years could not be maintained; ### 1. notes that the court of auditors , in its annual report for 20211 , estimated a level of error for the eu budget spending on ‘cohesion , resilience and values’ of 3.6 % in 2021 , up from 3.5 % in 2020; underlines that , for subheading ‘economic , social and territorial cohesion’ alone , the estimated level of error is 4.1 %; regrets that the downward trend of the previous years could not be maintained; stresses that most of the irregularities identified by audit authorities and the commission concern the same main categories: ineligible expenditure , public procurement , audit trail and state aid;


### 3. acknowledges the mitigating measures taken by the commission and eacea to safeguard programme implementation , in particular eacea’s efforts to deliver calls for proposals and tailored support for applicants at a high pace in the second half of the year; ### 3. acknowledges the mitigating measures taken by the commission and eacea to safeguard programme implementation , in particular eacea’s efforts to deliver calls for proposals and tailored support for applicants at a high pace in the second half of the year; regrets the unavailability of consolidated implementation data for 2021 as a result of these delays at the time of finalising the commission’s annual activity report; expects implementation and reporting to resume their normal path from 2022 onwards;


### 3. encourages the court of auditors to resume its preparation of special reports relating to development cooperation expenditure and to regularly cover development cooperation aspects in its special reports on horizontal issues; ### 3. encourages the court of auditors to resume its preparation of special reports relating to development cooperation expenditure and to regularly cover development cooperation aspects in its special reports on horizontal issues in accordance with the policy coherence for development principle set in article 208 of the treaty on the functioning of the eu; calls on the european court of auditors to carry out regular reports on the implementation of the recently initiated global gateway and european financial architecture for development (efad) which will be made public and lead to policy recommendations including on actions to betaken for improvements;


### 4. welcomes new research and innovation projects launched in 2021 from both horizon 2020 and horizon europe , including landmark projects on green airports and ports , new partnerships/joint undertakings , as well as the launch of climate-relevant missions , which accounted for 0.5 million dg move spending in horizon 2020 alone; ### 4. welcomes new research and innovation projects launched in 2021 from both horizon 2020 and horizon europe , including landmark projects on rail and ports , new partnerships/joint undertakings , as well as the launch of climate-relevant missions , which accounted for 0.5 million dg move spending in horizon 2020 alone;


### 4. expresses satisfaction that the biggest part of the union budget went to the policy objective ‘cohesion , resilience and values’. ### 4. expresses satisfaction that the biggest part of the union budget went to the policy objective ‘cohesion , resilience and values’; welcomes that the second biggest budget was ‘natural resources and environment’;


### 4. underlines that the covid-19 pandemic continued to have a heavy impact on learners , teachers , young people , cultural professionals and athletes in 2021; ### 4. underlines that the covid-19 pandemic continued to have a heavy impact on learners , teachers , young people , cultural professionals and athletes in 2021; acknowledges the commission’s adoption in june 2021 of a communication on eu guidelines on the safe resumption of activities in the cultural and creative sectors , which aimed to support the coordinated reopening of the cultural sector in europe;


### 4. notes that in 2021 , dg environment's budget reached eur 534 million in commitment appropriations and eur 440 million in payment appropriations and that it had 492 members of staff; points out that the appropriations administered directly by dg environment had implementation rates above 99 % at year-end; ### 4. notes that in 2021 , dg environment's budget reached eur 534 million in commitment appropriations and eur 440 million in payment appropriations and regrets that despite the repeated calls of the parliament , according to the establishment plans of the commission only 397 permanent and temporary posts were foreseen as of 01/04/20211a; points out that the appropriations administered directly by dg environment had implementation rates above 99 % at year-end;


### 4. emphasises the value of service delivery through local ngos in developing countries; encourages the commission to prioritise that when possible and to provide capacity-building for local ngos with potential to become important service deliverers; ### 4. calls for an increase in the support to civil society organizations , given the shrinking space for and criminalisation of civil society in many developing countries; emphasises the value of service and support to local communities provided through local ngos in developing countries; encourages the commission to prioritise local ngos whenever possible in order to provide better capacity-building for local ngos on the ground;


### 5. welcomes the court’s review no 05/2021 on the union framework for large transport infrastructure projects and regrets their findings related to major cost-overruns and time delays of the projects; requests the commission , together with the court , olaf and eppo , to further closely monitor the union transport projects , improve the process and to submit an annual implementation report to the parliament and national parliaments specifying the measures taken to guarantee the completion of the ten-t network; ### 5. welcomes the court’s review no 05/2021 on the union framework for large transport infrastructure projects and regrets their findings related to major cost-overruns and time delays of the projects; requests the commission , together with the court , olaf and eppo , to further closely monitor the union transport projects , improve the process and to submit an annual implementation report to the parliament and national parliaments specifying the measures taken to guarantee the completion of the ten-t network; highlights that the conclusions of the european court of auditors review 05/2021 on “the eu framework for large transport infrastructure projects: an international comparison” align with its previous concerns; recalls that the special report10/2020 on “eu transport infrastructures: more speed needed in megaproject implementation to deliver network effects on time” already raised diverse serious socioeconomic and environmental concerns over different transport flagship mega-infrastructure projects across the union , such as inaccurate estimations regarding traffic forecasts or the cumulative delays , remarkably impacting the related cost-benefit analysis as well as the life-cycle emissions calculations within the 2030 and 2050 horizons; considers that eu transport funding would be more effectively spent , also in terms of climate neutrality contribution , by considerably supporting smaller-scale regional cross-border rail missing links;


### 5. notes with concern that the estimated overall level of error in subheading 2a ‘economic , social and territorial cohesion’ stood at 4.1% in 2021; this figure is still largely above the 2 % materiality threshold; ### 5. is worried that the overall level of errors in spending from the eu budget increased to 3.0 % in 2021 , compared to 2.7% in 2020; in particular , notes with concern that the estimated overall level of error in subheading 2a ‘economic , social and territorial cohesion’ stood at 4.1% in 2021; this figure is still largely above the 2 % materiality threshold; calls for urgent action to decrease the error rate in the future , and especially for the new funding period;


### 5. notes that the first year of the new mff saw the launch or further development of several major policy initiatives; ### 5. notes that the first year of the new mff saw the launch or further development of several major policy initiatives , such as the european education area and the new digital education action plan 2021-2027;


### 5. warns however that certain member states present very low absorption rates for the esi funds and will be under significant pressure to absorb all the available funds before the closure of the programmes; regrets that the rrf may have led to delays in the implementation of esi funds; ### 5. warns however that certain member states present very low absorption rates for the esi funds and will be under significant pressure to absorb all the available funds before the closure of the programmes; regrets that the prioritization of the rrf by member states may have led to delays in the implementation of esi funds;


### 5. notes with concern the findings of the court of auditors (the “court”) regarding the protection of the union budget; takes note of the court’s special report 11/2022 “protecting the eu budget” where the court found that although the commission’s exclusion system has some strengths , shortcomings limit its effectiveness; notes with concern that the implementation of the early detection and exclusion system (edes) has taken longer than planned; is worried that differences in the approaches undermine the overall effectiveness of exclusion; ### 5. notes with concern the findings of the court of auditors (the “court”) regarding the protection of the union budget; takes note of the court’s special report 11/2022 “protecting the eu budget” where the court found that although the commission’s exclusion system has some strengths , shortcomings limit its effectiveness; notes with concern that the implementation of the early detection and exclusion system (edes) has taken longer than planned; is worried that differences in the approaches undermine the overall effectiveness of exclusion; calls on the commission to work hand in hand with the parliament on recast of the eu financial regulation to further improve the edes to make it an efficient and effective tool;


### 5. regrets the continued great difficulties faced by small local ngos in accessing union funding because of the highly demanding procedures involved; invites the commission to fully use existing flexibilities , without taking unreasonable fiduciary risks , and to propose necessary changes to rules. ### 5. regrets the continued great difficulties faced by small local ngos in accessing union funding because of the highly demanding and cumbersome procedures involved; invites the commission to improve these procedures in order to make them more accessible for small local ngos and to propose necessary changes to rules to this aim.


### 6. stresses the need to enlarge the areas where the edes is used beyond direct management and requests the commission to use it for all union funds including funds under shared management: notes that , the edes has to be used systematically to ensure that companies and beneficial owners who have been convicted in relation to fraud , corruption or other serious economic criminal activities cannot benefit from union funds; stresses the need to harmonise the indicators in arachne with the exclusion grounds of edes to ensure that excluded economic operators are also visible in arachne; calls for maximum interoperability between arachne , edes and other software to reduce the need to insert information items into various it systems multiple times and keep the administrative burden as low as possible; believes that not more but better targeted control systems are needed , including the use of new technologies; ### 6. stresses the need to enlarge the areas where the edes is used beyond direct management and requests the commission to use it for all union funds including funds under shared management: notes that , the edes has to be used systematically to ensure that companies and beneficial owners who have been convicted in relation to fraud , corruption or other serious economic criminal activities cannot benefit from union funds , including a permanent and irreversible exclusion from participating in eu projects or in any way receiving the funds from the eu budget; stresses the need to harmonise the indicators in arachne with the exclusion grounds of edes to ensure that excluded economic operators are also visible in arachne; calls for maximum interoperability between arachne , edes and other software to reduce the need to insert information items into various it systems multiple times and keep the administrative burden as low as possible; believes that not more but better targeted control systems are needed , including the use of new technologies;