02018R1999 — EN — 29.07.2021 — 004.001

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►B REGULATION (EU) 2018/1999 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 11 December 2018 on the Governance of the Energy Union and Climate Action, amending Regulations (EC) No 663/2009 and (EC) No 715/2009 of the European Parliament and of the Council, Directives 94/22/EC, 98/70/EC, 2009/31/EC, 2009/73/EC, 2010/31/EU, 2012/27/EU and 2013/30/EU of the European Parliament and of the Council, Council Directives 2009/119/EC and (EU) 2015/652 and repealing Regulation (EU) No 525/2013 of the European Parliament and of the Council (Text with EEA relevance) (OJ L 328 21.12.2018, p. 1)

Amended by:









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REGULATION (EU) 2018/1999 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

of 11 December 2018

on the Governance of the Energy Union and Climate Action, amending Regulations (EC) No 663/2009 and (EC) No 715/2009 of the European Parliament and of the Council, Directives 94/22/EC, 98/70/EC, 2009/31/EC, 2009/73/EC, 2010/31/EU, 2012/27/EU and 2013/30/EU of the European Parliament and of the Council, Council Directives 2009/119/EC and (EU) 2015/652 and repealing Regulation (EU) No 525/2013 of the European Parliament and of the Council

(Text with EEA relevance)







CHAPTER 1

General provisions

Article 1

Subject matter and scope

1. This Regulation establishes a governance mechanism to: ▼M2 (a) implement strategies and measures designed to meet the objectives and targets of the Energy Union and the long-term Union greenhouse gas emissions commitments consistent with the Paris Agreement, in particular the Union’s climate-neutrality objective set out in Article 2(1) of Regulation (EU) 2021/1119 of the European Parliament and of the Council ( 1 ), and, for the first ten-year period, from 2021 to 2030, in particular the Union’s 2030 targets for energy and climate; ▼B (b) stimulate cooperation between Member States, including, where appropriate, at regional level, designed to achieve the objectives and targets of the Energy Union; (c) ensure the timeliness, transparency, accuracy, consistency, comparability and completeness of reporting by the Union and its Member States to the UNFCCC and Paris Agreement secretariat; (d) contribute to greater regulatory certainty as well as contribute to greater investor certainty and help take full advantage of opportunities for economic development, investment stimulation, job creation and social cohesion.

The governance mechanism is based on long-term strategies, integrated national energy and climate plans covering ten-year periods starting from 2021 to 2030, corresponding integrated national energy and climate progress reports by the Member States and integrated monitoring arrangements by the Commission. The governance mechanism ensures effective opportunities for the public to participate in the preparation of those national plans and those long-term strategies. It comprises a structured, transparent, iterative process between the Commission and Member States for the purpose of the finalisation of the integrated national energy and climate plans and their subsequent implementation, including with regard to regional cooperation, and corresponding Commission action.

2. This Regulation applies to the five dimensions of the Energy Union, which are closely related and mutually reinforcing: (a) energy security; (b) internal energy market; (c) energy efficiency; (d) decarbonisation; and (e) research, innovation and competitiveness.

Article 2

Definitions

The following definitions apply:

(1) ‘policies and measures’ means all instruments which contribute to meeting the objectives of the integrated national energy and climate plans and/or to implement commitments under points (a) and (b) of Article 4(2) of the UNFCCC, which may include those that do not have the limitation and reduction of greenhouse gas emissions or change in the energy system as a primary objective;

(2) ‘existing policies and measures’ means implemented policies and measures and adopted policies and measures;

(3) ‘implemented policies and measures’ means policies and measures for which one or more of the following applies at the date of submission of the integrated national energy and climate plan or of the integrated national energy and climate progress report: directly applicable Union or national law is in force, one or more voluntary agreements have been established, financial resources have been allocated, human resources have been mobilised;

(4) ‘adopted policies and measures’ means policies and measures for which an official government decision has been made by the date of submission of the integrated national energy and climate plan or of the integrated national energy and climate progress report and there is a clear commitment to proceed with implementation;

(5) ‘planned policies and measures’ means options that are under discussion and that have a realistic chance of being adopted and implemented after the date of submission of the integrated national energy and climate plan or of the integrated national energy and climate progress report;

(6) ‘system for policies and measures and projections’ means a system of institutional, legal and procedural arrangements established for reporting policies and measures and projections relating to anthropogenic emissions by sources and removals by sinks of greenhouse gases and to the energy system, inter alia as required by Article 39;

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(7) ‘projections’ means forecasts of anthropogenic greenhouse gas emissions by sources and removals by sinks or developments of the energy system, including at least quantitative estimates for a sequence of six future years ending with 0 or 5, immediately following the reporting year;

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(8) ‘projections without measures’ means projections of anthropogenic greenhouse gas emissions by sources and removals by sinks that exclude the effects of all policies and measures which are planned, adopted or implemented after the year chosen as the starting point for the relevant projection;

(9) ‘projections with measures’ means projections of anthropogenic greenhouse gas emissions by sources and removals by sinks that encompass the effects, in terms of greenhouse gas emission reductions or developments of the energy system, of policies and measures that have been adopted and implemented;

(10) ‘projections with additional measures’ means projections of anthropogenic greenhouse gas emissions by sources and removals by sinks or developments of the energy system that encompass the effects, in terms of greenhouse gas emission reductions, of policies and measures which have been adopted and implemented to mitigate climate change or meet energy objectives, as well as policies and measures which are planned for that purpose;

(11) ‘the Union's 2030 targets for energy and climate’ means the Union-wide binding target of at least 40 % domestic reduction in economy-wide greenhouse gas emissions as compared to 1990 to be achieved by 2030, the Union-level binding target of at least 32 % for the share of renewable energy consumed in the Union in 2030, the Union-level headline target of at least 32,5 % for improving energy efficiency in 2030, and the 15 % electricity interconnection target for 2030 or any subsequent targets in this regard agreed by the European Council or by the European Parliament and by the Council for 2030;

(12) ‘national inventory system’ means a system of institutional, legal and procedural arrangements established within a Member State for estimating anthropogenic emissions by sources and removals by sinks of greenhouse gases, and for reporting and archiving inventory information;

(13) ‘indicator’ means a quantitative or qualitative factor or variable that contributes to better understanding progress in implementing;

(14) ‘key indicators’ mean the indicators for the progress made with regard to the five dimensions of the Energy Union as proposed by the Commission;

(15) ‘technical corrections’ means adjustments to the national greenhouse gas inventory estimates made in the context of the review carried out pursuant to Article 38 when the submitted inventory data are incomplete or are prepared in a way that is not consistent with relevant international or Union rules or guidelines and that are intended to replace originally submitted estimates;

(16) ‘quality assurance’ means a planned system of review procedures to ensure that data quality objectives are met and that the best possible estimates and information are reported to support the effectiveness of the quality control programme and to assist Member States;

(17) ‘quality control’ means a system of routine technical activities to measure and control the quality of the information and estimates compiled with the purpose of ensuring data integrity, correctness and completeness, identifying and addressing errors and omissions, documenting and archiving data and other material used, and recording all quality assurance activities;

(18) ‘energy efficiency first’ means taking utmost account in energy planning, and in policy and investment decisions, of alternative cost-efficient energy efficiency measures to make energy demand and energy supply more efficient, in particular by means of cost-effective end-use energy savings, demand response initiatives and more efficient conversion, transmission and distribution of energy, whilst still achieving the objectives of those decisions;

(19) ‘SET-Plan’ means the Strategic Energy Technology Plan as set out in the Commission communication of 15 September 2015, entitled, ‘Towards an Integrated Strategic Energy Technology (SET) Plan: Accelerating the European Energy System Transformation’;

(20) ‘early efforts’ means: (a) in the context of the assessment of a potential gap between the Union's 2030 target for energy from renewable sources and the collective contributions of Member States, a Member State's achievement of a share of energy from renewable sources above its national binding target for 2020 as set out in Annex I to Directive (EU) 2018/2001 or a Member State's early progress towards its national binding target for 2020; (b) in the context of Commission recommendations based on the assessment pursuant to point (b) of Article 29(1) with regard to energy from renewable sources, a Member State's early implementation of its contribution to the Union's binding target of at least 32 % of renewable energy in 2030 as measured against its national reference points for renewable energy;

(21) ‘regional cooperation’ means cooperation between two or more Member States engaged in a partnership covering one or more of the five dimensions of the Energy Union;

(22) ‘energy from renewable sources’ or ‘renewable energy’ means energy from renewable sources or renewable energy as defined in point (1) of Article 2 of Directive (EU) 2018/2001;

(23) ‘gross final consumption of energy’ means gross final consumption of energy as defined in point (4) of Article 2 of Directive (EU) 2018/2001;

(24) ‘support scheme’ means support scheme as defined in point (5) of Article 2 of Directive (EU) 2018/2001;

(25) ‘repowering’ means repowering as defined in point (10) of Article 2 of Directive (EU) 2018/2001;

(26) ‘renewable energy community’ means renewable energy community as defined in point (16) of Article 2 of Directive (EU) 2018/2001;

(27) ‘district heating’ or ‘district cooling’ means district heating or district cooling as defined in point (19) of Article 2 of Directive (EU) 2018/2001;

(28) ‘waste’ means waste as defined in point (23) of Article 2 of Directive (EU) 2018/2001;

(29) ‘biomass’ means biomass as defined in point (24) of Article 2 of Directive (EU) 2018/2001;

(30) ‘agricultural biomass’ means agricultural biomass as defined in point (25) of Article 2 of Directive (EU) 2018/2001;

(31) ‘forest biomass’ means forest biomass as defined in point (26) of Article 2 of Directive (EU) 2018/2001;

(32) ‘biomass fuels’ means biomass fuels as defined in point (27) of Article 2 of Directive (EU) 2018/2001;

(33) ‘biogas’ means biogas as defined in point (28) of Article 2 of Directive (EU) 2018/2001;

(34) ‘bioliquids’ means bioliquids as defined in point (32) of Article 2 of Directive (EU) 2018/2001;

(35) ‘biofuels’ means biofuels as defined in point (33) of Article 2 of Directive (EU) 2018/2001;

(36) ‘advanced biofuels’ means advanced biofuels as defined in point (34) of Article 2 of Directive (EU) 2018/2001;

(37) ‘recycled carbon fuels’ means recycled carbon fuels as defined in point (35) of Article 2 of Directive (EU) 2018/2001;

(38) ‘starch-rich crops’ means starch-rich crops as defined in point (39) of Article 2 of Directive (EU) 2018/2001;

(39) ‘food and feed crops’ means food and feed crops as defined in point (40) of Article 2 of Directive (EU) 2018/2001;

(40) ‘ligno-cellulosic material’ means ligno-cellulosic material as defined in point (41) of Article 2 of Directive (EU) 2018/2001;

(41) ‘residue’ means residue as defined in point (43) of Article 2 of Directive (EU) 2018/2001;

(42) ‘primary energy consumption’ means primary energy consumption as defined in point (2) of Article 2 of Directive 2012/27/EU;

(43) ‘final energy consumption’ means final energy consumption as defined in point (3) of Article 2 of Directive 2012/27/EU;

(44) ‘energy efficiency’ means energy efficiency as defined in point (4) of Article 2 of Directive 2012/27/EU;

(45) ‘energy savings’ means energy savings as defined in point (5) of Article 2 of Directive 2012/27/EU;

(46) ‘energy efficiency improvement’ means energy efficiency improvement as defined in point (6) of Article 2 of Directive 2012/27/EU;

(47) ‘energy service’ means energy service as defined in point (7) of Article 2 of Directive 2012/27/EU;

(48) ‘total useful floor area’ means total useful floor area as defined in point (10) of Article 2 of Directive 2012/27/EU;

(49) ‘energy management system’ means energy management system as defined in point (11) of Article 2 of Directive 2012/27/EU;

(50) ‘obligated party’ means obligated party as defined in point (14) of Article 2 of Directive 2012/27/EU;

(51) ‘implementing public authority’ means implementing public authority as defined in point (17) of Article 2 of Directive 2012/27/EU;

(52) ‘individual action’ means individual action as defined in point (19) of Article 2 of Directive 2012/27/EU;

(53) ‘energy distributor’ means energy distributor as defined in point (20) of Article 2 of Directive 2012/27/EU;

(54) ‘distribution system operator’ means ‘distribution system operator’ as defined in point (6) of Article 2 of Directive 2009/72/EC and in point (6) of Article 2 of Directive 2009/73/EC;

(55) ‘retail energy sales company’ means retail energy sales company as defined in point (22) of Article 2 of Directive 2012/27/EU;

(56) ‘energy service provider’ means energy service provider as defined in point (24) of Article 2 of Directive 2012/27/EU;

(57) ‘energy performance contracting’ means energy performance contracting as defined in point (27) of Article 2 of Directive 2012/27/EU;

(58) ‘cogeneration’ means cogeneration as defined in point (30) of Article 2 of Directive 2012/27/EU;

(59) ‘building’ means a building as defined in point (1) of Article 2 of Directive 2010/31/EU;

(60) ‘nearly zero-energy building’ means a nearly zero-energy building as defined in point (2) of Article 2 of Directive 2010/31/EU;

(61) ‘heat pump’ means heat pump as defined in point (18) of Article 2 of Directive 2010/31/EU;

(62) ‘fossil fuel’ means non-renewable carbon-based energy sources such as solid fuels, natural gas and oil.







CHAPTER 2

Integrated national energy and climate plans

Article 3

Integrated national energy and climate plans

1. By 31 December 2019, and subsequently by 1 January 2029 and every ten years thereafter, each Member State shall notify to the Commission an integrated national energy and climate plan. The plans shall contain the elements set out in paragraph 2 of this Article and in Annex I. The first plan shall cover the period from 2021 to 2030, taking into account the longer term perspective. The subsequent plans shall cover the ten-year period immediately following the end of the period covered by the previous plan.

2. The integrated national energy and climate plans shall consist of the following main sections: (a) an overview of the process followed for establishing the integrated national energy and climate plan consisting of an executive summary, a description of the public consultation and involvement of stakeholders and their results, and of regional cooperation with other Member States in preparing the plan, as established in Articles 10, 11 and 12 and in point 1 of Section A of Part I of Annex I; (b) a description of national objectives, targets and contributions relating to the dimensions of the Energy Union, as set out in Article 4 and Annex I; (c) a description of the planned policies and measures in relation to the corresponding objectives, targets and contributions set out under point (b) as well as a general overview of the investment needed to meet the corresponding objectives, targets and contributions; (d) a description of the current situation of the five dimensions of the Energy Union, including with regard to the energy system and greenhouse gas emissions and removals as well as projections with regard to the objectives referred to in point (b) with already existing policies and measures; (e) where applicable, a description of the regulatory and non-regulatory barriers and hurdles to delivering the objectives, targets or contributions related to renewable energy and energy efficiency; ▼M2 (f) an assessment of the impacts of the planned policies and measures to meet the objectives referred to in point (b) of this paragraph, including their consistency with the Union’s climate-neutrality objective set out in Article 2(1) of Regulation (EU) 2021/1119, the long-term greenhouse gas emission reduction objectives under the Paris Agreement and the long-term strategies as referred to in Article 15 of this Regulation; ▼B (g) a general assessment of the impacts of the planned policies and measures on competitiveness linked to the five dimensions of the Energy Union; (h) an annex, drawn up in accordance with the requirements and structure laid down in Annex III to this Regulation, setting out the Member State's methodologies and policy measures for achieving the energy savings requirement in accordance with Article 7 of Directive 2012/27/EU and Annex V thereto.

3. With regard to their integrated national energy and climate plans, Member States shall: (a) limit administrative complexity and costs for all relevant stakeholders; (b) take into account the interlinkages between the five dimensions of the Energy Union, in particular the energy efficiency first principle; (c) use robust and consistent data and assumptions across the five dimensions where relevant; (d) assess the number of households in energy poverty taking into account the necessary domestic energy services needed to guarantee basic standards of living in the relevant national context, existing social policy and other relevant policies, as well as indicative Commission guidance on relevant indicators for energy poverty. In the event that a Member State finds, pursuant to point (d) of the first subparagraph, that it has a significant number of households in energy poverty, on the basis of its assessment of verifiable data, it shall include in its plan a national indicative objective to reduce energy poverty. The Member States concerned shall outline in their integrated national energy and climate plans, the policies and measures, which address energy poverty, if any, including social policy measures and other relevant national programmes.

4. Each Member State shall make its integrated national energy and climate plan submitted to the Commission pursuant to this Article publicly available.

5. The Commission is empowered to adopt delegated acts in accordance with Article 43 in order to amend points 2.1.1 and 3.1.1 of Section A and points 4.1 and 4.2.1 of Section B of Part 1, and point 3 of Part 2 of Annex I, for the purpose of adapting them to amendments to the Union Energy and Climate policy framework that are directly and specifically related to the Union's contributions under the UNFCCC and the Paris Agreement.

Article 4

National objectives, targets and contributions for the five dimensions of the Energy Union

Each Member State shall set out in its integrated national energy and climate plan the following main objectives, targets and contributions, as specified in point 2 of section A of Annex I:

(a) as regards the dimension ‘Decarbonisation’: (1) with respect to greenhouse gas emissions and removals and with a view to contributing to the achievement of the economy wide Union greenhouse gas emission reduction target: (i) the Member State's binding national target for greenhouse gas emissions and the annual binding national limits pursuant to Regulation (EU) 2018/842; (ii) the Member State's commitments pursuant to Regulation (EU) 2018/841; (iii) where applicable to meet the objectives and targets of the Energy Union and the long-term Union greenhouse gas emissions commitments consistent with the Paris Agreement, other objectives and targets, including sector targets and adaptation goals. (2) with respect to renewable energy: With a view to achieving the Union's binding target of at least 32 % renewable energy in 2030 as referred to in Article 3 of Directive (EU) 2018/2001, a contribution to that target in terms of the Member State's share of energy from renewable sources in gross final consumption of energy in 2030, with an indicative trajectory for that contribution from 2021 onwards. By 2022, the indicative trajectory shall reach a reference point of at least 18 % of the total increase in the share of energy from renewable sources between that Member State's binding 2020 national target, and its contribution to the 2030 target. By 2025, the indicative trajectory shall reach a reference point of at least 43 % of the total increase in the share of energy from renewable sources between that Member State's binding 2020 national target and its contribution to the 2030 target. By 2027, the indicative trajectory shall reach a reference point of at least 65 % of the total increase in the share of energy from renewable sources between that Member State's binding 2020 national target and its contribution to the 2030 target. By 2030, the indicative trajectory shall reach at least the Member State's planned contribution. If a Member State expects to surpass its binding 2020 national target, its indicative trajectory may start at the level it is projected to achieve. The Member States' indicative trajectories, taken together, shall add up to the Union reference points in 2022, 2025 and 2027 and to the Union's binding target of at least 32 % renewable energy in 2030. Separately from its contribution to the Union target and its indicative trajectory for the purposes of this Regulation, a Member State shall be free to indicate higher ambitions for national policy purposes;

(b) as regards the dimension ‘Energy Efficiency’: (1) the indicative national energy efficiency contribution to achieving the Union's energy efficiency targets of at least 32,5 % in 2030 as referred to in Article 1(1) and Article 3(5) of Directive 2012/27/EU, based on either primary or final energy consumption, primary or final energy savings, or energy intensity. Member States shall express their contribution in terms of absolute level of primary energy consumption and final energy consumption in 2020, and in terms of absolute level of primary energy consumption and final energy consumption in 2030, with an indicative trajectory for that contribution from 2021 onwards. They shall explain their underlying methodology and the conversion factors used; (2) the cumulative amount of end-use energy savings to be achieved over the period 2021-2030 under point (b) of Article 7(1) on the energy saving obligations pursuant to Directive 2012/27/EU; (3) the indicative milestones of the long-term strategy for the renovation of the national stock of residential and non-residential buildings, both public and private, the roadmap with domestically established measurable progress indicators, an evidence-based estimate of expected energy savings and wider benefits, and the contributions to the Union's energy efficiency targets pursuant to Directive 2012/27/EU in accordance with Article 2a of Directive 2010/31/EU; (4) the total floor area to be renovated or equivalent annual energy savings to be achieved from 2021 to 2030 under Article 5 of Directive 2012/27/EU on the exemplary role of public bodies' buildings;

(c) as regards the dimension ‘Energy Security’: (1) national objectives with regard to: — increasing the diversification of energy sources and supply from third countries, the purpose of which may be to reduce energy import dependency, — increasing the flexibility of the national energy system, and — addressing constrained or interrupted supply of an energy source, for the purpose of improving the resilience of regional and national energy systems, including a timeframe for when the objectives should be met;

(d) as regards the dimension ‘Internal Energy Market’: (1) the level of electricity interconnectivity that the Member State aims for in 2030 in consideration of the electricity interconnection target for 2030 of at least 15 %, with a strategy with the level from 2021 onwards defined in close cooperation with the Member States affected, taking into account the 2020 interconnection target of 10 % and the indicators of the urgency of action based on price differential in the wholesale market, nominal transmission capacity of interconnectors in relation to peak load and to installed renewable generation capacity as set out in point 2.4.1 of Section A of Part I of Annex I. Each new interconnector shall be subject to a socioeconomic and environmental cost-benefit analysis and implemented only if the potential benefits outweigh the costs; (2) key electricity and gas transmission infrastructure projects, and, where relevant, modernisation projects, that are necessary for the achievement of objectives and targets under the five dimensions of the Energy Union; (3) national objectives related to other aspects of the internal energy market such as: increasing system flexibility, in particular through policies and measures related to market-based price formation in compliance with applicable law; market integration and coupling, aiming to increase the tradeable capacity of existing interconnectors, smart grids, aggregation, demand response, storage, distributed generation, mechanisms for dispatching, re-dispatching and curtailment and real-time price signals, including a timeframe for when the objectives should be met, and other national objectives related to the internal energy market as set out in point 2.4.3 of Section A of Part 1 of Annex I;

(e) as regards the dimension ‘Research, Innovation and Competitiveness’: (1) national objectives and funding targets for public and, where available, private research and innovation relating to the Energy Union, including, where appropriate, a timeframe for when the objectives should be met; reflecting the priorities of the Energy Union Strategy and, where relevant, of the SET-Plan. In setting out its objectives, targets and contributions, the Member State may build upon existing national strategies or plans that are compatible with Union law; (2) where available, national 2050 objectives related to the promotion of clean energy technologies.

Article 5

Member States' contribution setting process in the area of renewable energy

1. In its contribution for its share of energy from renewable sources in gross final consumption of energy in 2030 and the last year of the period covered for the subsequent national plans, pursuant to point (a)(2) of Article 4, each Member State shall take into account all of the following: (a) the measures provided for in Directive (EU) 2018/2001; (b) the measures adopted to reach the energy efficiency target adopted pursuant to Directive 2012/27/EU; (c) any other existing measures to promote renewable energy within the Member State and, where relevant, at Union level; (d) the binding 2020 national target of energy from renewable sources in its gross final consumption of energy set out in Annex I to Directive (EU) 2018/2001; (e) any relevant circumstances affecting renewable energy deployment, such as: (i) equitable distribution of deployment across the Union; (ii) economic conditions and potential, including GDP per capita; (iii) potential for cost-effective renewable energy deployment; (iv) geographical, environmental and natural constraints, including those of non-interconnected areas and regions; (v) the level of power interconnection between Member States; (vi) other relevant circumstances, in particular early efforts.

With regard to point (e) of the first subparagraph, each Member State shall indicate in its integrated national energy and climate plan which relevant circumstances affecting renewable energy deployment it has taken into account.

2. Member States shall collectively ensure that the sum of their contributions amounts to at least 32 % of energy from renewable sources in gross final energy consumption at Union level by 2030.

Article 6

Member States' contribution setting process in the area of energy efficiency

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1. In its indicative national energy efficiency contribution for 2030 and for the last year of the period covered for the subsequent national plans pursuant to point (b)(1) of Article 4 of this Regulation, each Member State shall take into account that, in accordance with Article 3 of Directive 2012/27/EU, the Union's 2020 energy consumption is to be no more than 1 483 Mtoe of primary energy or no more than 1 086 Mtoe of final energy and the Union's 2030 energy consumption is to be no more than 1 128 Mtoe of primary energy and/or no more than 846 Mtoe of final energy.

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In addition, each Member State shall take into account:

(a) the measures provided for in Directive 2012/27/EU;

(b) other measures to promote energy efficiency within the Member State and at Union level.

2. In its contribution referred to in paragraph 1, each Member State may take into account national circumstances affecting primary and final energy consumption, such as: (a) remaining cost-effective energy-saving potential; (b) evolution and forecast of gross domestic product; (c) changes of energy imports and exports; (d) changes in the energy mix and the development of carbon capture and storage; and (e) early actions.

With regard to the first subparagraph, each Member State shall indicate in its integrated national energy and climate plan which relevant circumstances affecting primary and final energy consumption it has taken into account, if any.

Article 7

National policies and measures for each of the five dimensions of the Energy Union

Member States shall describe, in accordance with Annex I, in their integrated national energy and climate plan, the main existing and planned policies and measures to achieve in particular the objectives set out in the national plan, including, where applicable, measures providing for regional cooperation and appropriate financing at national and regional level, including mobilisation of Union programmes and instruments.

Member States shall provide a general overview of the investment needed to achieve the objectives, targets and contributions set out in the national plan, as well as a general assessment on the sources of that investment.

Article 8

Analytical basis of the integrated national energy and climate plans

1. Member States shall describe, in accordance with the structure and format specified in Annex I, the current situation for each of the five dimensions of the Energy Union, including of the energy system and greenhouse gas emissions and removals at the time of submission of the integrated national energy and climate plan or on the basis of the latest available information. Member States shall also set out and describe projections for each of the five dimensions of the Energy Union, for at least the duration of that plan, expected to result from existing policies and measures. Member States shall endeavour to describe additional longer term perspectives for the five dimensions beyond the duration of the integrated national energy and climate plan, where relevant and possible.

2. Member States shall describe in their integrated national energy and climate plan their assessment, at national and, where applicable, regional level, of: (a) the impacts on the development of the energy system and greenhouse gas emissions and removals for the duration of the plan and for a period of ten years following the latest year covered by the plan, under the planned policies and measures or groups of measures, including a comparison with the projections based on existing policies and measures or groups of measures as referred to in paragraph 1; (b) the macroeconomic and, to the extent feasible, the health, environmental, skills and social impact of the planned policies and measures or groups of measures referred to in Article 7 and further specified in Annex I, for the first ten-year period at least until the year 2030, including a comparison with the projections based on existing policies and measures or groups of measures as referred to in paragraph 1 of this Article. The methodology used to assess those impacts shall be made public; (c) interactions between existing policies and measures or groups of measures and planned policies and measures or groups of measures within a policy dimension and between existing policies and measures or groups of measures and planned policies and measures or groups of measures of different dimensions for the first ten-year period at least until the year 2030. Projections concerning security of supply, infrastructure and market integration shall be linked to robust energy efficiency scenarios; (d) the manner in which existing policies and measures and planned policies and measures are to attract the investment necessary for their implementation; ▼M2 (e) the manner in which existing policies and measures and planned policies and measures contribute to the achievement of the Union’s climate-neutrality objective set out in Article 2(1) of Regulation (EU) 2021/1119. ▼B

3. Member States shall make available to the public comprehensive information concerning the assumptions, parameters and methodologies used for the final scenarios and projections, taking into account statistical restrictions, commercially sensitive data, and compliance with the data protection rules.

Article 9

Draft integrated national energy and climate plans

1. By 31 December 2018, and subsequently by 1 January 2028 and every ten years thereafter, each Member State shall prepare and submit to the Commission a draft of the integrated national energy and climate plan in accordance with Article 3(1) and Annex I.

2. The Commission shall assess the draft integrated national energy and climate plans and may issue country-specific recommendations to Member States in accordance with Article 34 no later than six months before the deadline for submitting those integrated national energy and climate plans. Those recommendations may, in particular, address: (a) the level of ambition of objectives, targets and contributions with a view to collectively achieving the Energy Union objectives and, in particular, the Union's 2030 targets for renewable energy and energy efficiency as well as the level of electricity interconnectivity that the Member State aims for in 2030 as referred to in point (d) of Article 4, taking due account of relevant circumstances affecting the deployment of renewable energy and energy consumption, as indicated by the Member State concerned in the draft integrated national energy and climate plan and the indicators of the urgency of action for interconnectivity established in point 2.4.1 of Section A of Part 1 of Annex I; (b) policies and measures relating to Member State- and Union-level objectives and other policies and measures of potential cross-border relevance; (c) any additional policies and measures that might be required in the integrated national energy and climate plans; (d) interactions between and consistency of existing and planned policies and measures included in the integrated national energy and climate plan within one dimension and among different dimensions of the Energy Union.

3. Each Member State shall take due account of any recommendations from the Commission in its integrated national energy and climate plan. If the Member State concerned does not address a recommendation or a substantial part thereof, that Member State shall provide and make public its reasons.

4. In the context of the public consultation as referred to in Article 10, each Member State shall make available to the public its draft integrated national energy and climate plan.

Article 10

Public consultation

Without prejudice to any other Union law requirements, each Member State shall ensure that the public is given early and effective opportunities to participate in the preparation of the draft integrated national energy and climate plan — as regards the plans for the 2021 to 2030 period, in the preparation of the final plan well before its adoption — as well as of the long-term strategies referred to in Article 15. Each Member State shall attach to the submission of such documents to the Commission a summary of the public's views or provisional views. In so far as Directive 2001/42/EC is applicable, consultations undertaken on the draft in accordance with that Directive shall be deemed to satisfy the obligations to consult the public under this Regulation.

Each Member State shall ensure that the public is informed. Each Member State shall set reasonable timeframes allowing sufficient time for the public to be informed, to participate and express its views.

Each Member State shall limit administrative complexity when implementing this Article.

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Article 11

Multilevel climate and energy dialogue

Each Member State shall establish a multilevel climate and energy dialogue pursuant to national rules, in which local authorities, civil society organisations, business community, investors and other relevant stakeholders and the general public are able actively to engage and discuss the achievement of the Union’s climate-neutrality objective set out in Article 2(1) of Regulation (EU) 2021/1119 and the different scenarios envisaged for energy and climate policies, including for the long term, and review progress, unless it already has a structure which serves the same purpose. Integrated national energy and climate plans may be discussed within the framework of such a dialogue.

▼B

Article 12

Regional cooperation

1. Member States shall cooperate with each other, taking account of all existing and potential forms of regional cooperation, to meet the objectives, targets and contributions set out in their integrated national energy and climate plan effectively.

2. Each Member State shall, well before submitting its draft integrated national energy and climate plan to the Commission pursuant to Article 9(1) — as regards the plans for the 2021 to 2030 period, in the preparation of the final plan well before its adoption — identify opportunities for regional cooperation and consult neighbouring Member States, including in regional cooperation fora. If deemed to be appropriate by the Member State authoring the plan, that Member State may consult other Member States or third countries that have expressed an interest. Insular Member States without energy interconnections to other Member States shall carry out such consultations with neighbouring Member States with maritime borders. The Member States consulted should be given a reasonable time within which to react. Each Member State shall set out in its draft integrated national energy and climate plan — as regards the plans for the 2021-2030 period, in its final national energy and climate plan — at least the provisional results of such regional consultations, including, where applicable, how the comments of the Member States or third countries consulted have been taken into account.

3. Member States may engage in voluntary joint drafting of parts of their integrated national energy and climate plans and progress reports, including in regional cooperation fora. If they do so, the result shall replace the equivalent parts of their integrated national energy and climate plan and progress reports. Upon a request by two or more Member States, the Commission shall facilitate that exercise.

4. In order to facilitate market integration and cost-efficient policies and measures, Member States shall, in the period between the deadline for submission of their draft integrated national energy and climate plans and the deadline for submission of their final plans, present the relevant parts of their draft integrated national energy and climate plan in relevant regional cooperation fora with a view to their finalisation. Where necessary, the Commission shall facilitate such cooperation and consultation among the Member States, and if it identifies opportunities for further regional cooperation, it may provide Member States with indicative guidance in order to facilitate the effective cooperation and consultation process.

5. Member States shall consider the comments received from other Member States pursuant to paragraphs 2 and 3 in their final integrated national energy and climate plan, and explain in those plans how such comments have been considered.

6. For the purposes referred to in paragraph 1, Member States shall continue to cooperate at regional level, and, as appropriate, in regional cooperation fora, when implementing the relevant policies and measures of their integrated national energy and climate plans.

7. Member States may also envisage cooperation with signatories to the Energy Community and with third-country members of the European Economic Area.

8. In so far as the provisions of Directive 2001/42/EC are applicable, transboundary consultation undertaken on the draft in accordance with Article 7 of that Directive shall be deemed to satisfy the obligations on regional cooperation pursuant to this Regulation, provided that the requirements of this Article are complied with.

Article 13

Assessment of the integrated national energy and climate plans

On the basis of the integrated national energy and climate plans and their updates as notified pursuant to Articles 3 and 14, the Commission shall assess, in particular, whether:

(a) the objectives, targets and contributions are sufficient for the collective achievement of the Energy Union objectives and, for the first ten-year period in particular, the targets of the Union's 2030 Climate and Energy Framework;

(b) the plans comply with requirements of Articles 3 to 12 and Member States have taken due account of the Commission recommendations issued pursuant to Article 34.

Article 14

Update of the integrated national energy and climate plan

1. By 30 June 2023, and subsequently by 1 January 2033 and every 10 years thereafter, each Member State shall submit to the Commission a draft update of the latest notified integrated national energy and climate plan or shall provide the Commission with reasons justifying why the plan does not require updating.

2. By 30 June 2024, and subsequently by 1 January 2034 and every 10 years thereafter, each Member State shall submit to the Commission an update of its latest notified integrated national energy and climate plan, unless they have provided reasons why the plan does not require updating pursuant to paragraph 1.

3. In the update referred to in paragraph 2, each Member State shall modify its national objective, target or contribution with regard to any of the quantified Union objectives, targets or contributions set out in point (a)(1) of Article 4 in order to reflect an increased ambition as compared to that set out in its latest notified integrated national energy and climate plan. In the update referred to in paragraph 2, each Member State shall modify its national objective, target, or contribution with regard to any of the quantified Union objectives, targets or contributions set out in points (a)(2) and (b) of Article 4 only in order to reflect an equal or increased ambition as compared to that set out in its latest notified integrated national energy and climate plan.

4. Member States shall make efforts to mitigate in their updated integrated national energy and climate plan any adverse environmental impacts that become apparent as part of the integrated reporting pursuant to Articles 17 to 25.

5. In its updates referred to in paragraph 2, Member States shall take into consideration the latest country-specific recommendations issued in the context of the European Semester as well as obligations deriving from the Paris Agreement.

6. The procedures laid down in Article 9(2) and Articles 10 and 12 shall apply to the preparation and assessment of the updated integrated national energy and climate plans.

7. This Article is without prejudice to the right of Member States to make changes and adaptations in national policies set out or referred to in their integrated national energy and climate plans at any time, provided such changes and adaptations are included in the integrated national energy and climate progress report.







CHAPTER 3

Long-term strategies

Article 15

Long-term strategies

▼M2

1. By 1 January 2020, and subsequently by 1 January 2029 and every 10 years thereafter, each Member State shall prepare and submit to the Commission its long-term strategy with a 30-year perspective and consistent with the Union’s climate-neutrality objective set out in Article 2(1) of Regulation (EU) 2021/1119. Member States should, where necessary, update those strategies every five years.

▼B

2. In aiming to achieve the overall climate objectives referred to in paragraph 3, the Commission shall, by 1 April 2019, adopt a proposal for a Union long-term strategy for greenhouse gas emissions reduction in accordance with the Paris Agreement, taking into account the Member States' draft integrated national energy and climate plans. The long-term strategy referred to in this paragraph shall include an analysis covering at least: (a) various scenarios for the Union's contribution towards the objectives set out in paragraph 3 inter alia a scenario on achieving net zero greenhouse gas emissions within the Union by 2050 and negative emissions thereafter; (b) the implications of the scenarios referred to in point (a) on the remaining global and Union carbon budget in order to inform a discussion about cost efficiency, effectiveness and fairness of greenhouse gas emission reduction.

3. The Member States' and the Union's long-term strategies shall contribute to: (a) fulfilling the Union's and the Member States' commitments under the UNFCCC and the Paris Agreement to reduce anthropogenic greenhouse gas emissions and enhance removals by sinks and to promote increased carbon sequestration; (b) fulfilling the objective of the Paris Agreement of holding the increase in the global average temperature to well below 2 °C above pre-industrial levels and to pursue efforts to limit the temperature increase to 1,5 °C above pre-industrial levels; ▼M2 (c) achieving long-term greenhouse gas emission reductions and enhancements of removals by sinks in all sectors in accordance with the Union’s climate-neutrality objective set out in Article 2(1) of Regulation (EU) 2021/1119, in the context of necessary greenhouse gas emission reductions and enhancements of removals by sinks according to the Intergovernmental Panel on Climate Change (IPCC) to reduce the Union’s greenhouse gas emissions in a cost-effective manner and enhance removals by sinks in pursuit of the long-term temperature goal in the Paris Agreement so as to achieve a balance between anthropogenic emissions by sources and removals by sinks of greenhouse gases within the Union and, as appropriate, achieve negative emissions thereafter; ▼B (d) a highly energy efficient and highly renewables-based energy system within the Union.

4. Member States' long-term strategies should contain the elements set out in Annex IV. Furthermore, the Member States' and the Union's long-term strategies shall cover: (a) total greenhouse gas emission reductions and enhancements of removals by sinks; (b) emission reductions and enhancements of removals in individual sectors, including electricity, industry, transport, the heating and cooling and buildings sector (residential and tertiary), agriculture, waste and land use, land-use change and forestry (LULUCF); (c) expected progress on transition to a low greenhouse gas emission economy, including greenhouse gas intensity, CO2 intensity of gross domestic product, related estimates of long-term investment, and strategies for related research, development and innovation; (d) to the extent feasible, expected socio-economic effect of the decarbonisation measures, including, inter alia, aspects related to macro-economic and social development, health risks and benefits and environmental protection; (e) links to other national long-term objectives, planning and other policies and measures, and investment.

5. The Commission is empowered to adopt delegated acts in accordance with Article 43 in order to amend Annex IV for the purpose of adapting it to the developments in the Union long-term strategy or in the Union Energy and Climate policy framework that are directly and specifically related to the relevant decisions adopted under the UNFCCC and, in particular, under the Paris Agreement.

6. The integrated national energy and climate plans shall be consistent with the long-term strategies referred to in this Article.

7. Member States and the Commission shall inform and make available to the public forthwith their respective long-term strategies and any updates thereof, including by means of the e-platform referred in Article 28. Member States and the Commission shall make relevant data of the final results available to the public, taking into account commercially sensitive data and compliance with the data protection rules.

8. The Commission shall support Member States in the preparation of their long-term strategies by providing information on the state of the underlying scientific knowledge and opportunities for sharing knowledge and best practices, including, where relevant, guidance for Member States during the development and implementation phase of their strategies.

9. The Commission shall assess whether the national long-term strategies are adequate for the collective achievement of the objectives and targets of the Energy Union set out in Article 1 and shall provide information on any remaining collective gap.

Article 16

Strategic plan for methane

Given the high global warming potential and relatively short atmospheric lifetime of methane, the Commission shall analyse the implications for implementing policies and measures for the purpose of reducing the short- and middle-term impact of methane emissions on Union greenhouse gas emissions. Taking into account the circular economy objectives as appropriate, the Commission shall consider policy options for rapidly addressing methane emissions and shall put forward a Union strategic plan for methane as an integral part of the Union's long-term strategy referred to in Article 15.







CHAPTER 4

Reporting







Section 1

Biennial progress reports and their follow up

Article 17

Integrated national energy and climate progress reports

1. Without prejudice to Article 26, by 15 March 2023, and every two years thereafter, each Member State shall report to the Commission on the status of implementation of its integrated national energy and climate plan by means of an integrated national energy and climate progress report covering all five dimensions of the Energy Union.

2. The integrated national energy and climate progress report shall cover the following elements: ▼M2 (a) information on the progress accomplished towards reaching the objectives, including progress towards the Union’s climate-neutrality objective set out in Article 2(1) of Regulation (EU) 2021/1119, targets and contributions set out in the integrated national energy and climate plan, and towards financing and implementing the policies and measures necessary to meet them, including a review of actual investment against initial investment assumptions; ▼B (b) where applicable, information on the progress in establishing the dialogue referred to in Article 11; (c) the information referred to in Articles 20 to 25 and, where appropriate, updates on policies and measures, in accordance with those articles; (d) information on adaptation in accordance with point (a)(1) of Article 4; (e) as far as possible quantification of the impact of the policies and measures in the integrated national energy and climate plan on air quality and on emissions of air pollutants.

The Union and the Member States shall submit biennial reports in accordance with Decision 2/CP.17 of the Conference of the Parties to the UNFCCC, and national communications in accordance with Article 12 of the UNFCCC to the UNFCCC Secretariat.

3. The integrated national energy and climate progress report shall cover the information contained in the annual reports referred to in Article 26(3) and the information on policies and measures and projections of anthropogenic greenhouse gas emissions by sources and removals by sinks contained in the reports referred to in Article 18.

4. ►M2 ◄ The Commission, assisted by the Energy Union Committee referred to in point (b) of Article 44(1), shall adopt implementing acts to set out the structure, format, technical details and process for the information referred to in paragraphs 1 and 2 of this Article, including a methodology for the reporting on the phasing out of energy subsidies, in particular for fossil fuels, pursuant to point (d) of Article 25.

Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 44(6).

5. The frequency and scale of the information and updates referred to in point (c) of paragraph 2 shall be balanced against the need to ensure sufficient certainty for investors.

6. Where the Commission has issued recommendations pursuant to Article 32(1) or (2), the Member State concerned shall include in its integrated national energy and climate progress report information on the policies and measures adopted, or intended to be adopted and implemented, to address those recommendations. Where applicable, such information shall include a detailed timetable for implementation.

Where the Member State concerned decides not to address a recommendation or a substantial part thereof, it shall provide its reasoning.

7. Member States shall make available to the public the reports submitted to the Commission pursuant to this Article.

Article 18

Integrated reporting on greenhouse gas policies and measures and on projections

1. By 15 March 2021, and every two years thereafter, Member States shall report to the Commission information on: (a) their national policies and measures or group of measures as set out in Annex VI; and (b) their national projections of anthropogenic greenhouse gas emissions by sources and removals by sinks, organised by gas or group of gases (Hydrofluorocarbons and Perfluorocarbons) listed in Part 2 of Annex V. National projections shall take into consideration any policies and measures adopted at Union level and shall include the information set out in Annex VII.

2. Member States shall report the most up-to-date projections available. Where a Member State does not submit complete projection estimates by 15 March every second year, and the Commission has established that gaps in the estimates cannot be filled by that Member State once identified through the Commission's quality assurance or quality control procedures, the Commission may prepare estimates as required to compile Union projections, in consultation with the Member State concerned.

3. A Member State shall communicate to the Commission any substantial changes to the information reported pursuant to paragraph 1 during the first year of the reporting period, by 15 March of the year following the previous report.

4. Member States shall make available to the public, in electronic form, their national projections pursuant to paragraph 1 and any relevant assessment of the costs and effects of national policies and measures on the implementation of Union policies relevant for limiting greenhouse gas emissions along with any relevant underpinning technical reports. Those projections and assessments should include descriptions of the models and methodological approaches used, definitions and underlying assumptions.

Article 19

Integrated reporting on national adaptation actions, financial and technology support provided to developing countries and auctioning revenues

1. By 15 March 2021, and every two years thereafter, Member States shall report to the Commission information on their national climate change adaptation planning and strategies, outlining their implemented and planned actions to facilitate adaptation to climate change, including the information specified in Part 1 of Annex VIII and in accordance with the reporting requirements agreed upon under the UNFCCC and the Paris Agreement.

2. By 31 July 2021 and every year thereafter (year X), Member States shall report to the Commission information on the use of revenues generated by the Member State by auctioning allowances pursuant to Article 10(1) and Article 3d(1) or (2) of Directive 2003/87/EC, including the information specified in Part 3 of Annex VIII.

3. By 30 September 2021 and every year thereafter (year X), Member States shall report to the Commission information on support to developing countries, including the information specified in Part 2 of Annex VIII and in accordance with the relevant reporting requirements agreed upon under the UNFCCC and the Paris Agreement.

4. Member States shall make available to the public the reports submitted to the Commission pursuant to this Article, with the exception of the information specified in point (b) of Part 2 of Annex VIII.

5. The Commission, assisted by the Climate Change Committee referred to in point (a) of Article 44(1), shall adopt implementing acts to set out the structure, format and submission processes for Member States' reporting of information pursuant to this Article.

Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 44(6).

Article 20

Integrated reporting on renewable energy

Member States shall include in the integrated national energy and climate progress reports information:

(a) on the implementation of the following trajectories and objectives: (1) indicative national trajectory for the overall share of renewable energy in gross final energy consumption from 2021 to 2030; (2) estimated trajectories for the sectoral share of renewable energy in final energy consumption from 2021 to 2030 in the electricity, heating and cooling and transport sector; (3) estimated trajectories per renewable energy technology to achieve the overall and sectoral trajectories for renewable energy from 2021 to 2030, including total expected gross final energy consumption per technology and sector in Mtoe and total planned installed capacity per technology and sector in MW; (4) trajectories on bioenergy demand, disaggregated between heat, electricity and transport, and on biomass supply, by feedstock and origin (distinguishing between domestic production and imports). For forest biomass, an assessment of its source and impact on the LULUCF sink; (5) where applicable, other national trajectories and objectives, including those that are long-term and sectoral (such as share of electricity produced from biomass without the utilisation of heat, share of renewable energy in district heating, renewable energy use in buildings, renewable energy produced by cities, renewable energy communities and renewables self-consumers), energy recovered from the sludge acquired through the treatment of wastewater;

(b) on the implementation of the following policies and measures: (1) implemented, adopted and planned policies and measures to achieve the national contribution to the 2030 binding Union target for renewable energy as indicated in point (a)(2) of Article 4 of this Regulation, including sector- and technology-specific measures, with a specific review of the implementation of measures laid down in Articles 23 to 28 of Directive (EU) 2018/2001; (2) where available, specific measures for regional cooperation; (3) without prejudice to Articles 107 and 108 TFEU, specific measures on financial support, including Union support and the use of Union funds, for the promotion of the use of energy from renewable sources in electricity, heating and cooling, and transport; (4) when applicable, the assessment of the support for electricity from renewable sources that Member States are to carry out pursuant to Article 6(4) of Directive (EU) 2018/2001; (5) specific measures to fulfil the requirements of Articles 15 to 18 of Directive (EU) 2018/2001; (6) where applicable, specific measures to assess, make transparent and reduce the need for must-run capacity that can lead to curtailment of energy from renewable sources; (7) a summary of the policies and measures under the enabling framework Member States are to put in place pursuant to Article 21(6) and Article 22(5) of Directive (EU) 2018/2001 to promote and facilitate the development of renewables self-consumption and renewable energy communities; (8) measures promoting the use of energy from biomass, especially for new biomass mobilisation taking into account biomass, including sustainable biomass availability as well as measures for the sustainability of biomass produced and used; (9) measures in place to increase the share of renewable energy in the heating and cooling and transport sector; (10) policies and measures facilitating the uptake of power purchase agreements;

(c) as set out in Part 1 of Annex IX.

Article 21

Integrated reporting on energy efficiency

Member States shall include in the integrated national energy and climate progress reports information:

(a) on the implementation of the following national trajectories, objectives and targets: (1) the indicative trajectory for primary and final annual energy consumption from 2021 to 2030 as the national energy savings contribution to achieving the Union-level 2030 target, including the underlying methodology; (2) the indicative milestones of the long-term strategy for the renovation of the national stock of residential and non-residential buildings, both public and private, and the contributions to the Union's energy efficiency targets pursuant to Directive 2012/27/EU in accordance with Article 2a of Directive 2010/31/EU; (3) where applicable, an update of other national objectives set out in the national plan;

(b) on the implementation of the following policies and measures: (1) implemented, adopted and planned policies, measures and programmes to achieve the indicative national energy efficiency contribution for 2030 as well as other objectives referred to in Article 6, including planned measures and instruments (also of a financial nature) to promote the energy performance of buildings, measures to utilise energy efficiency potentials of gas and electricity infrastructure and other measures to promote energy efficiency; (2) where applicable, market-based instruments that incentivise energy efficiency improvements, including but not limited to energy taxes, levies and allowances; (3) national energy efficiency obligation scheme and alternative measures pursuant to Article 7a and 7b of Directive 2012/27/EU and in accordance with Annex III to this Regulation; (4) long-term renovation strategies in accordance with Article 2a of Directive 2010/31/EU; (5) policy and measures to promote energy services in the public sector and measures to remove regulatory and non-regulatory barriers that impede the uptake of energy performance contracting and other energy efficiency service models; (6) regional cooperation in the area of energy efficiency, where applicable; (7) without prejudice to Articles 107 and 108 TFEU, financing measures, including Union support and the use of Union funds, in the area of energy efficiency at national level, where applicable;

(c) as set out in Part 2 of Annex IX.

Article 22

Integrated reporting on energy security

Member States shall include in the integrated national energy and climate progress reports information on the implementation of:

(a) national objectives for the diversification of energy sources and supply;

(b) where applicable, national objectives with regard to reducing energy import dependency from third countries;

(c) national objectives for the development of the ability to cope with constrained or interrupted supply of an energy source, including gas and electricity;

(d) national objectives with regard to increasing the flexibility of the national energy system, in particular by means of deploying domestic energy sources, demand response and energy storage;

(e) implemented, adopted and planned policies and measures to achieve the objectives referred to in points (a) to (d);

(f) regional cooperation in implementing the objectives and policies referred to in points (a) to (d);

(g) without prejudice to Articles 107 and 108 TFEU, financing measures, including Union support and the use of Union funds, in this area at national level, where applicable.

Article 23

Integrated reporting on the internal energy market

1. Member States shall include in their integrated national energy and climate progress reports information on the implementation of the following objectives and measures: (a) the level of electricity interconnectivity that the Member State aims for in 2030 in consideration of the electricity interconnection target for 2030 of at least 15 % and the indicators set out in point 2.4.1 of Section A of Part I of Annex I, as well as measures for the implementation of the strategy for the achievement of this level, including those relating to the granting of authorisations; (b) key electricity and gas transmission infrastructure projects that are necessary for the achievement of objectives and targets under the five dimensions of the Energy Union; (c) where applicable, main infrastructure projects envisaged other than Projects of Common Interest, including infrastructure projects involving third countries, and, to the extent feasible, a general assessment of their compatibility with, and contribution to, the aims and targets of the Energy Union; (d) national objectives related to other aspects of the internal energy market such as increasing system flexibility, market integration and coupling, aiming to increase the tradeable capacity of existing interconnectors, smart grids, aggregation, demand response, storage, distributed generation, mechanisms for dispatching, re-dispatching and curtailment, real-time price signals; (e) where applicable, national objectives and measures related to the non-discriminatory participation of renewable energy, demand response and storage, including via aggregation, in all energy markets; (f) where applicable, national objectives and measures with regard to ensuring that consumers participate in the energy system and benefits from self-generation and new technologies, including smart meters; (g) measures with regard to ensuring electricity system adequacy; (h) implemented, adopted and planned policies and measures to achieve the objectives referred to in points (a) to (g); (i) regional cooperation in implementing the objectives and policies referred to in points (a) to (h); (j) without prejudice to Articles 107 and 108 TFEU, financing measures at national level, including Union support and the use of Union funds, in the area of the internal energy market, including for the electricity interconnection target, where applicable; (k) measures to increase the flexibility of the energy system with regard to renewable energy production, including the roll-out of intraday market coupling and cross-border balancing markets.

2. The information provided by Member States under paragraph 1 shall be consistent with and as appropriate be based on the report by the national regulators referred to in point (e) of Article 37(1) of Directive 2009/72/EC and point (e) of Article 41(1) of Directive 2009/73/EC.

Article 24

Integrated Reporting on Energy Poverty

Where the second subparagraph of point (d) of Article 3(3) applies, the Member State concerned shall include in its integrated national energy and climate progress report:

(a) information on progress towards the national indicative objective to reduce the number of households in energy poverty; and

(b) quantitative information on the number of households in energy poverty, and, where available, information on policies and measures addressing energy poverty.

The Commission shall share data communicated by Member States pursuant to this Article with the European Energy Poverty Observatory.

Article 25

Integrated reporting on research, innovation and competitiveness

Member States shall include in their integrated national energy and climate progress reports information on the implementation of the following objectives and measures:

(a) where applicable, national objectives and policies translating to a national context the SET Plan objectives and policies;

(b) national objectives for total public and, where available, private spending in research and innovation relating to clean energy technologies as well as for technology cost and performance development;

(c) where appropriate, national objectives, including long-term targets for 2050 for the deployment of technologies for decarbonising energy- and carbon-intensive industrial sectors and, where applicable, for related carbon transport, use, and storage infrastructure;

(d) national objectives to phase out energy subsidies, in particular for fossil fuels;

(e) implemented, adopted and planned policies and measures to achieve the objectives referred to in points (b) and (c);

(f) cooperation with other Member States in implementing the objectives and policies referred to in points (b) to (d), including coordination of policies and measures in the context of the SET Plan, such as alignment of research programmes and common programmes;

(g) financing measures, including Union support and the use of Union funds, in this area at national level, where applicable.







Section 2

Annual reporting

Article 26

Annual Reporting

1. By 15 March 2021, and every year thereafter (year X), Member States shall report to the Commission: (a) the information referred to in Article 6(2) of Directive 2009/119/EC; (b) the information referred to in point 3 of Annex IX of Directive 2013/30/EU, in accordance with Article 25 of that Directive.

2. By 31 July 2021, and every year thereafter (year X), Member States shall report to the Commission their approximated greenhouse gas inventories for the year X-1.

For the purposes of this paragraph, the Commission shall, on the basis of the Member States' approximated greenhouse gas inventories or, if a Member State has not communicated its approximated inventories by that date, on the basis of its own estimates, annually compile a Union approximated greenhouse gas inventory. The Commission shall make that information available to the public by 30 September every year.

3. From 2023, Member States shall determine and report to the Commission final greenhouse gas inventory data by 15 March each year (year X) and preliminary data by 15 January each year, including the greenhouse gases and the inventory information listed in Annex V. The report on the final greenhouse gas inventory data shall also include a complete and up-to-date national inventory report. Within three months of receiving the reports, the Commission shall make the information referred to in point (n) of Part I of Annex V available to the Climate Change Committee referred to in point (a) of Article 44(1).

4. Member States shall submit to the UNFCCC Secretariat national inventories containing the information submitted to the Commission on the final greenhouse gas inventory data in accordance with paragraph 3 by 15 April each year. The Commission shall, in cooperation with the Member States, annually compile a Union greenhouse gas inventory and prepare a Union greenhouse gas inventory report and shall submit them to the UNFCCC Secretariat by 15 April each year.

5. Member States shall report to the Commission the preliminary and the final national inventory data, by 15 January and 15 March respectively in the years 2027 and 2032, prepared for their LULUCF accounts for the purpose of the compliance reports in accordance with Article 14 of Regulation (EU) 2018/841.

6. The Commission is empowered to adopt delegated acts in accordance with Article 43in order to: (a) amend Part 2 of Annex V by adding or deleting substances in the list of greenhouse gases, in accordance with relevant decisions adopted by the bodies of the UNFCCC or of the Paris Agreement; (b) supplement this Regulation by adopting values for global warming potentials and specifying the inventory guidelines applicable in accordance with relevant decisions adopted by the bodies of the UNFCCC or of the Paris Agreement.

7. The Commission, assisted by the Climate Change Committee referred to in point (a) of Article 44(1), shall adopt implementing acts to set out the structure, technical details, format and processes for the Member States' submission of approximated greenhouse gas inventories pursuant to paragraph 2 of this Article, greenhouse gas inventories pursuant to paragraph 3 of this Article and accounted greenhouse gas emissions and removals in accordance with Articles 5 and 14 of Regulation (EU) 2018/841.

In proposing such implementing acts the Commission shall take into account the UNFCCC or Paris Agreement timetables for the monitoring and reporting of that information and the relevant decisions adopted by the bodies of the UNFCCC or of the Paris Agreement in order to ensure compliance by the Union with its reporting obligations as a Party to the UNFCCC and the Paris Agreement. Those implementing acts shall also specify the timescales for cooperation and coordination between the Commission and the Member States in preparing the Union greenhouse gas inventory report.

Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 44(6).

Article 27

Reporting on the 2020 targets

By 30 April 2022, each Member State shall report to the Commission on the achievement of its 2020 energy efficiency national target established pursuant to Article 3(1) of Directive 2012/27/EU by providing the information set out in Part 2 of Annex IX to this Regulation, and of the national overall targets for the share of energy from renewable sources in 2020 as set out in Annex I to Directive 2009/28/EC in the version in force on 31 December 2020 by providing the following information:

(a) the sectoral (electricity, heating and cooling, and transport) and overall shares of energy from renewable sources in 2020;

(b) the measures taken to achieve the 2020 national renewable energy targets, including measures related to support schemes, guarantees of origin and simplification of administrative procedures;

(c) the share of energy from biofuels and bioliquids produced from cereal and other starch-rich crops, sugars and oil crops in energy consumption in transport;

(d) the share of energy from biofuels and biogas for transport produced from feedstocks and of other fuels listed in Part A of Annex IX to Directive 2009/28/EC in the version in force on 31 December 2020 in energy consumption in transport.







Section 3

Reporting platform

Article 28

E-platform

1. The Commission shall establish an online platform (e-platform) to facilitate communication between the Commission and Member States, to promote cooperation among Member States and to facilitate public access to information.

2. Member States shall use the e-platform for the purposes of submitting to the Commission the reports referred to in this Chapter once it becomes operational.

3. The e-platform shall become operational by 1 January 2020. The Commission shall use the e-platform to facilitate public online access to the reports referred to in this Chapter, the final integrated national energy and climate plans, the updates thereof, and the long-term strategies referred to in Article 15, taking into account commercially sensitive data and compliance with the data protection rules.







CHAPTER 5

Aggregate assessment of progress and policy response to ensure Union targets achievement — Commission monitoring

Article 29

Assessment of progress

1. By 31 October 2021 and every two years thereafter, the Commission shall assess, in particular on the basis of the integrated national energy and climate progress reports, of other information reported under this Regulation, of the indicators and of European statistics and data where available: (a) the progress made at Union level towards meeting the objectives of the Energy Union, including for the first ten-year period the Union's 2030 targets for energy and climate, in particular for the purpose of avoiding any gaps to the Union's 2030 targets for renewable energy and energy efficiency; ▼M2 (b) the progress made by each Member State towards meeting its objectives, including progress towards the Union’s climate-neutrality objective set out in Article 2(1) of Regulation (EU) 2021/1119, targets and contributions and implementing the policies and measures set out in its integrated national energy and climate plan; ▼B (c) the overall impact of aviation on the global climate, including through non-CO2 emissions or effects, based on the emission data provided by Member States pursuant to Article 26, and improve that assessment by reference to scientific advancements and air traffic data, as appropriate; (d) the overall impact of the policies and measures of the integrated national energy and climate plans on the operation of the Union climate and energy policy measures; (e) the overall impact of the policies and measures included in the integrated national energy and climate plans on the operation of the European Union's emission trading system (EU ETS) and on the supply-demand balance of allowances in the European carbon market.

2. In the area of renewable energy, as part of its assessment referred to in paragraph 1, the Commission shall assess the progress made in the share of energy from renewable sources in the Union's gross final consumption on the basis of an indicative Union trajectory that starts from 20 % in 2020, reaches reference points of at least 18 % in 2022, 43 % in 2025 and 65 % in 2027 of the total increase in the share of energy from renewable sources between the Union's 2020 renewable energy target and the Union's 2030 renewable energy target, and reaches the Union's 2030 renewable energy target of at least 32 % in 2030.

▼M1

3. In the area of energy efficiency, as part of its assessment referred to in paragraph 1, the Commission shall assess progress towards collectively achieving a maximum energy consumption at Union level of 1 128 Mtoe of primary energy and 846 Mtoe of final energy in 2030 in accordance with Article 3(5) of Directive 2012/27/EU.

▼B

In carrying out its assessment, the Commission shall take the following steps:

(a) consider whether the Union's milestone of no more than 1 483 Mtoe of primary energy and no more than 1 086 Mtoe of final energy in 2020 is achieved;

(b) assess whether Member States' progress indicates that the Union as a whole is on track towards the level of energy consumption in 2030 as referred to in the first subparagraph, taking into account the assessment of information provided by Member States in their integrated national energy and climate progress reports;

(c) use results from modelling exercises in relation to future trends in energy consumption at Union level and national level and use other complementary analysis;

(d) take due account of relevant circumstances affecting primary and final energy consumption indicated by the Member States in their integrated national energy and climate plans, in accordance with Article 6(2).

4. In the area of the internal energy market, as part of its assessment referred to in paragraph 1, the Commission shall assess the progress made towards the level of electricity interconnectivity that the Member State aims for in 2030.

5. By 31 October 2021 and every year thereafter, the Commission shall assess, in particular on the basis of the information reported pursuant to this Regulation, whether the Union and its Member States have made sufficient progress towards meeting the following requirements: (a) commitments under Article 4 of the UNFCCC and under Article 3 of the Paris Agreement as set out in decisions adopted by the Conference of the Parties to the UNFCCC, or by the Conference of the Parties to the UNFCCC serving as the meeting of the Parties to the Paris Agreement; (b) obligations set out in Article 4 of Regulation (EU) 2018/842 and in Article 4 of Regulation (EU) 2018/841; (c) the objectives set out in the integrated national energy and climate plan with a view to achieving the Energy Union objectives and for the first ten-year period with a view to fulfilling the 2030 targets for energy and climate.

6. In its assessment the Commission should take into consideration the latest country-specific recommendations issued in the context of the European Semester.

7. The Commission shall report on its assessment in accordance with this Article as part of the State of the Energy Union report referred to in Article 35.

Article 30

Inconsistencies with overarching Energy Union objectives and targets under Regulation (EU) 2018/842

1. Based on the assessment pursuant to Article 29, the Commission shall issue recommendations to a Member State pursuant to Article 34 if policy developments in that Member State show inconsistencies with the overarching objectives of the Energy Union.

2. A Member State that intends to use the flexibility pursuant to Article 7 of Regulation (EU) 2018/842 shall, as that information becomes available, include in the integrated national energy and climate plan the level of intended use and the planned policies and measures to fulfil the requirements laid down in Article 4 of Regulation (EU) 2018/841 for the period from 2021 to 2030.

Article 31

Response to insufficient ambition of integrated national energy and climate plans

1. Where, on the basis of its assessment of the draft integrated national energy and climate plans pursuant to Article 9 or its assessment of the draft updates of the final plans pursuant to Article 14, and as part of the iterative process, the Commission concludes that the objectives, targets and contributions of the Member States are insufficient for the collective achievement of the Energy Union objectives and in particular, for the first ten-year period, for the Union's binding 2030 target for renewable energy and the Union's 2030 target for energy efficiency, it shall — as regards the Union's target for renewable energy — and may — as regards the other Energy Union objectives — issue recommendations to Member States whose contributions it deems insufficient to increase their ambition in order to ensure a sufficient level of collective ambition.

2. Where a gap between the Union's 2030 target and the collective contributions of Member States occurs in the area of renewable energy, the Commission shall base its assessment on the formula set out in Annex II which is based on the objective criteria listed in point (e)(i) to (v) of the first subparagraph of Article 5(1), whilst having due regard to relevant circumstances affecting renewable energy deployment as indicated by the Member State in accordance with the second subparagraph of Article 5(1).

Where a gap between the Union's 2030 target and the sum of the national contributions occurs in the area of energy efficiency, the Commission shall, in particular, evaluate the relevant circumstances listed in Article 6(2), information provided by Member States in their integrated national energy and climate plans, results from modelling exercises in relation to future trends in energy consumption and other complementary analysis as appropriate.

Without prejudice to the other provisions of this Article, and for the sole purpose of assessing whether a gap between the Union's 2030 target and the collective contributions of Member States occurs, the Commission shall, in its assessment, assume a national contribution of the Member States which did not submit their draft integrated national energy and climate plans in accordance with Article 9(1).

In its assumption, in the area of renewable energy, the Commission shall take into account the Member State's national binding target for 2020 as set out in Annex I to Directive (EU) 2018/2001, results from modelling exercises on renewable energy development and the results from the formula set out in Annex II to this Regulation. In the area of energy efficiency, it shall take into account modelling exercises in relation to future trends in energy consumption and other complementary analysis as appropriate.

In its assessment of the renewable energy contributions, based on the formula set out in Annex II, the Commission shall take into consideration any potential negative impacts on the security of supply and grid stability in small or isolated energy systems or in Member States' systems where there may be significant implications due to the change of synchronous area.

In its assessment of the energy efficiency contributions, the Commission shall take into consideration the potential impact on electricity system operation and grid stability in Member States where there may be significant implications due to the change of synchronous area.

3. Where, on the basis of its assessment of the integrated national energy and climate plans and their updates pursuant to Article 14, the Commission concludes that the objectives, targets and contributions of the integrated national energy and climate plans or their updates are insufficient for the collective achievement of the Energy Union objectives and, in particular, for the first ten-year period, for the Union's 2030 targets for renewable energy and energy efficiency, it shall propose measures and exercise its powers at Union level in order to ensure the collective achievement of those objectives and targets. With regard to renewable energy, such measures shall take into consideration the level of ambition of contributions to the Union's 2030 target by Member States set out in the integrated national energy and climate plans and their updates.

Article 32

Response to insufficient progress towards the Union's energy and climate objectives and targets

1. Where, on the basis of its assessment pursuant to point (b) of Article 29(1), the Commission concludes that insufficient progress is made by a Member State towards meeting its objectives, targets and contributions, its reference points for renewable energy, or in implementing the policies and measures set out in its integrated national climate and energy plan, it shall issue recommendations to the Member State concerned pursuant to Article 34.

In its recommendations in the area of renewable energy, the Commission shall take into consideration the relevant circumstances indicated by the Member State in accordance with the second subparagraph of Article 5(1). The Commission shall also take into consideration renewable energy projects for which a final investment decision has been taken, provided that those projects become operational in the period 2021 to 2030 and have a significant impact on a Member State's national contribution.

In its recommendations in the area of energy efficiency, the Commission shall take due account of the objective criteria listed in points (a) and (b) of Article 6(1) and the relevant national circumstances indicated by the Member State in accordance with Article 6(2).

2. Where, on the basis of its aggregate assessment of Member States' integrated national energy and climate progress reports pursuant to point (a) of Article 29(1), and supported by other information sources, as appropriate, the Commission concludes that the Union is at risk of not meeting the objectives of the Energy Union and, in particular, for the first ten-year period, the targets of the Union's 2030 Framework for Climate and Energy, it may issue recommendations to all Member States pursuant to Article 34 to mitigate such a risk.

In the area of renewable energy, the Commission shall assess if the national measures provided for in paragraph 3 are sufficient to achieve the Union's renewable energy targets. In the case of insufficient national measures, the Commission shall, as appropriate, propose measures and exercise its power at Union level in addition to those recommendations in order to ensure, in particular, the achievement of the Union's 2030 target for renewable energy.

In the area of energy efficiency, the Commission shall as appropriate, propose measures and exercise its powers at Union level in addition to those recommendations in order to ensure, in particular, the achievement of the Union's 2030 target for energy efficiency.

In the area of energy efficiency, such additional measures may in particular improve the energy efficiency of:

(a) products, pursuant to Directive 2009/125/EC of the European Parliament and of the Council ( 2 ) and Regulation (EU) 2017/1369 of the European Parliament and of the Council ( 3 );

(b) buildings, pursuant to Directives 2010/31/EU and 2012/27/EU; and

(c) transport.

3. Where, in the area of renewable energy the Commission concludes, based on its assessment pursuant to Article 29(1) and (2), that one or more of the reference points of the indicative Union trajectory in 2022, 2025 and 2027 referred to in Article 29(2) were not met, Member States that have fallen below one or more of their national reference points in 2022, 2025 and 2027 as referred to in point (a)(2) of Article 4 shall ensure that additional measures are implemented within one year following the date of reception of the Commission's assessment in order to cover the gap compared to their national reference point, such as: (a) national measures to increase deployment of renewable energy; (b) adjusting the share of renewable energy in the heating and cooling sector set out in Article 23(1) of Directive (EU) 2018/2001; (c) adjusting the share of renewable energy in the transport sector set out in Article 25(1) of Directive (EU) 2018/2001; (d) making a voluntary financial payment to the Union renewable energy financing mechanism set up at Union level, contributing to renewable energy projects and managed directly or indirectly by the Commission as set out in Article 33; (e) using cooperation mechanisms set out in Directive (EU) 2018/2001.

Such measures shall take into account the Commission's considerations as set out in the second subparagraph of paragraph 1 of this Article. The Member States concerned shall include those measures as part of their integrated national energy and climate progress report.

4. From 1 January 2021 onwards, the share of energy from renewable sources in each Member State's gross final consumption of energy shall not be lower than a baseline share that is equal to its mandatory national overall target for the share of energy from renewable sources in 2020 set out in Article 3(4) of Directive (EU) 2018/2001. If a Member State does not maintain its baseline share as measured over a one-year period, the Member State concerned shall take, within one year, additional measures such as those as set out in points (a) to (e) of the first subparagraph of paragraph 3 of this Article sufficient to cover the gap within one year.

Member States fulfilling the obligation to cover the gap to the baseline shall be deemed to be in compliance with the obligations set out in the first sentence of the first subparagraph of this paragraph and in Article 3(4) of Directive (EU) 2018/2001 throughout the period where the gap occurred.

For the purposes of point (d) of the first subparagraph of paragraph 3 of this Article, Member States may use their revenues from annual emission allowances under Directive 2003/87/EC.

5. Where a Member State's share of energy from renewable sources falls below one or more of its national reference points in 2022, 2025 and 2027 as referred to in point (a)(2) of Article 4, it shall include in the next integrated report submitted to the Commission pursuant to Article 17 an explanation of how it will cover the gap compared to its national reference points.

6. Where, in the area of energy efficiency, without prejudice to other measures at Union level pursuant to the third subparagraph of paragraph 2 of this Article, the Commission concludes, based on its assessment pursuant to Article 29(1) and (3), carried out by the years 2022, 2025 and 2027 that progress towards collectively achieving the Union's energy efficiency targets referred to in the first subparagraph of Article 29(3) is insufficient, it shall propose measures and exercise its power at Union level in addition to those set out in Directive 2010/31/EU and Directive 2012/27/EU to ensure that the Union's 2030 energy efficiency targets are met.

7. Each Member State concerned referred to in paragraph 3 of this Article shall detail the additional implemented, adopted and planned measures as part of its following progress report referred to in Article 17.

8. Where, in the area of interconnections, the Commission concludes, based on its assessment pursuant to Article 29(1) and (4), in the year 2025 that progress is insufficient, the Commission shall cooperate with the Member States concerned by the year 2026 with the aim of addressing the circumstances encountered.

Article 33

Union renewable energy financing mechanism

1. By 1 January 2021, the Commission shall establish the Union renewable energy financing mechanism referred to in point (d) of Article 32(3) to tender support for new renewable energy projects in the Union with the aim of covering a gap in the indicative Union trajectory. Support may be provided, inter alia, in the form of a premium additional to market prices, and shall be allocated to projects bidding at the lowest cost or premium.

2. Without prejudice to paragraph 1 of this Article, the financing mechanism shall contribute to the enabling framework pursuant to Article 3(4) of Directive (EU) 2018/2001 with the aim of supporting renewable energy deployment across the Union irrespectively of a gap to the indicative Union trajectory. To that end: (a) payments from Member States referred to in Article 32 may be complemented by additional sources, such as Union funds, private sector contributions or additional payments by Member States in order to contribute to the achievement of the Union target; (b) the financing mechanism may, inter alia, provide support in the form of low-interest loans, grants, or a mix of both and may support, inter alia, joint projects between Member States in accordance with Article 9 of Directive (EU) 2018/2001 and Member States' participation in joint projects with third countries referred to in Article 11 of that Directive.

3. Member States shall retain the right to decide whether, and if so, under which conditions, they allow installations located on their territory to receive support from the financing mechanism.

4. The Commission, assisted by the Energy Union Committee referred to in point (b) of Article 44(1), may adopt implementing acts to set out the necessary provisions for the establishment and functioning of the financing mechanism, in particular: (a) the methodology for the calculation of the maximum level of the premium for each tender; (b) the tender design to be applied, including conditions for delivery and associated penalties; (c) the methodology for the calculation of the payments of Member States and the resulting statistical benefits for the contributing Member States; (d) minimum requirements for Member States' participation, having regard to the need to ensure both continuity of the mechanism by means of a sufficient duration of the Member State payment, as well as the maximum amount of flexibility for Member States' participation; (e) provisions ensuring the participation and/or approval of hosting Member States, and where necessary provisions relating to additional system cost charges.

Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 44(6).

5. Every year, renewable energy generated by installations financed by the financing mechanism shall be statistically attributed to the participating Member States, reflecting their relative payments. Projects supported by this financing mechanism that are financed by other sources than Member States payments shall not count towards Member States' national contributions but towards the Union binding target pursuant to Article 3(1) of Directive (EU) 2018/2001.

Article 34

Commission recommendations to Member States

1. The Commission shall as appropriate issue recommendations to Member States to ensure the achievement of the objectives of the Energy Union. The Commission shall make such recommendations publicly available forthwith.

2. Where reference in this Regulation is made to this Article the following principles shall apply: (a) the Member State concerned shall take due account of the recommendation in a spirit of solidarity between Member States and the Union and between Member States; (b) the Member State shall set out, in its integrated national energy and climate progress report made in the year following the year the recommendation was issued, how it has taken due account of the recommendation. If the Member State concerned decides not to address a recommendation or a substantial part thereof, that Member State shall provide its reasoning; (c) the recommendations should be complementary to the latest country-specific recommendations issued in the context of the European Semester.

Article 35

State of the Energy Union report

1. By 31 October of every year, the Commission shall submit to the European Parliament and to the Council a State of the Energy Union report.

2. The State of the Energy Union report shall include the following elements: (a) the assessment carried out pursuant to Article 29; (b) where appropriate, recommendations pursuant to Article 34; (