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)

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union, and in particular Article 192(1) and Article 194(2) thereof,

Having regard to the proposal from the European Commission,

After transmission of the draft legislative act to the national parliaments,

Having regard to the opinion of the European Economic and Social Committee (1),

Having regard to the opinion of the Committee of the Regions (2),

Acting in accordance with the ordinary legislative procedure (3),

Whereas:

(1) This Regulation sets out the necessary legislative foundation for reliable, inclusive, cost-efficient, transparent and predictable governance of the Energy Union and Climate Action (governance mechanism), which ensures the achievement of the 2030 and long-term objectives and targets of the Energy Union in line with the 2015 Paris Agreement on climate change following the 21st Conference of the Parties to the United Nations Framework Convention on Climate Change (the ‘Paris Agreement’), through complementary, coherent and ambitious efforts by the Union and its Member States, while limiting administrative complexity.

(2) The Energy Union should cover five dimensions: energy security; the internal energy market; energy efficiency; decarbonisation; and research, innovation and competitiveness.

(3) The goal of a resilient Energy Union with an ambitious climate policy at its core is to give Union consumers, including households and businesses, secure, sustainable, competitive and affordable energy, and to foster research and innovation by means of attracting investment, which requires a fundamental transformation of Europe's energy system. Such a transformation is also closely linked to the need to preserve, protect and improve the quality of the environment and to promote the prudent and rational utilisation of natural resources, in particular through the promotion of energy efficiency and energy savings and the development of new and renewable forms of energy. That goal can be achieved only through coordinated action, combining both legislative and non-legislative acts at Union, regional, national and local level.

(4) A fully functional and resilient Energy Union would convert the Union into a leading region for innovation, investment, growth and social and economic development, in turn providing a good example of how pursuing high ambitions in terms of climate change mitigation is intertwined with measures to foster innovation, investment and growth.

(5) Parallel to this Regulation, the Commission has developed and adopted a series of initiatives in sectoral energy policy, in particular with regard to renewable energy, energy efficiency, including on the energy performance of buildings, and market design. Those initiatives form a package under the overarching theme of energy efficiency first, the Union's global leadership in renewables, and a fair deal for energy consumers, including by addressing energy poverty and promoting fair competition in the internal market.

(6) In its conclusions of 23 and 24 October 2014, the European Council endorsed a 2030 Framework for Energy and Climate for the Union based on four key Union-level targets: a reduction of at least 40 % in economy-wide greenhouse gas (GHG) emissions, an indicative target of improvement in energy efficiency of at least 27 %, to be reviewed by 2020 with a view to increasing the level to 30 %, a share of renewable energy consumed in the Union of at least 27 %, and electricity interconnection of at least 15 %. It specified that the target for renewable energy is binding at Union level and that it will be fulfilled through Member States' contributions guided by the need to deliver collectively the Union target. A recast of Directive 2009/28/EC of the European Parliament and of the Council (4) has introduced a new, binding, renewable energy target for the Union for 2030 of at least 32 %, including a provision for a review with a view to increasing the Union-level target by 2023. Amendments to Directive 2012/27/EU of the European Parliament and of the Council (5) have set the Union-level target for improvements in energy efficiency in 2030 to at least 32,5 %, including a provision for a review with a view to increasing the Union-level targets.

(7) The binding target of at least a 40 % domestic reduction in economy-wide GHG emissions by 2030 compared to 1990 was formally approved as the Intended Nationally Determined Contribution of the Union and its Member States to the Paris Agreement at the Environment Council meeting on 6 March 2015. The Paris Agreement was ratified by the Union on 5 October 2016 (6) and entered into force on 4 November 2016. It replaces the approach taken under the 1997 Kyoto Protocol, which was approved by the Union by Council Decision 2002/358/EC (7) and which will not be continued beyond 2020. The Union's system for monitoring and reporting emissions and removals should be updated accordingly.

(8) The Paris Agreement increased the level of global ambition on climate change mitigation and sets out a long-term goal in line with the objective to keep the global average temperature increase 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.

(9) In pursuit of the temperature goals in the Paris Agreement, the Union should aim to achieve a balance between anthropogenic GHG emissions by sources and removals by sinks as early as possible and, as appropriate, achieve negative emissions thereafter.

(10) For the climate system the cumulative total anthropogenic emissions over time are relevant for the total concentration of GHGs in the atmosphere. Various scenarios for the Union's contribution to long-term objectives, inter alia a scenario on achieving net zero GHG emissions in the Union by 2050 and negative emissions thereafter, and the implications of those scenarios on the remaining global and Union carbon budget should be analysed by the Commission. The Commission should prepare an analysis for the purposes of a long-term Union strategy for the Union's contribution to the commitments 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, including various scenarios, inter alia a scenario on achieving net zero GHG emissions within the Union by 2050 and negative emissions thereafter and their implications on the global and Union carbon budget.

(11) Although the Union pledged to deliver ambitious cuts in GHG emissions by 2030, the threat of climate change is a global issue. The Union and its Member States should therefore work with their international partners in order to ensure a high level of ambition by all Parties in line with the long-term goals of the Paris Agreement.

(12) In its conclusions of 23 and 24 October 2014, the European Council also agreed that a reliable and transparent governance mechanism without any unnecessary administrative burden and with sufficient flexibility for Member States should be developed to help ensure that the Union meets its energy policy goals, while fully respecting Member States' freedom to determine their energy mix. It emphasised that such a governance mechanism should build on existing building blocks, such as national climate programmes, national plans for renewable energy and energy efficiency as well as the need to streamline and bring together separate planning and reporting strands. It also agreed to step up the role and rights of consumers, transparency and predictability for investors, inter alia by systematic monitoring of key indicators for an affordable, safe, competitive, secure and sustainable energy system and to facilitate coordination of national climate and energy policies and foster regional cooperation between Member States.

(13) In its communication of 25 February 2015 on A Framework Strategy for a Resilient Energy Union with a Forward-Looking Climate Change Policy, the Commission refers to the need for an integrated governance mechanism to ensure that energy-related actions at Union, regional, national and local level all contribute to the Energy Union's objectives, thereby broadening the scope of governance — beyond the 2030 Framework for Climate and Energy — to all five dimensions of the Energy Union.

(14) In its communication of 18 November 2015 on the State of the Energy Union, the Commission further specified that integrated national energy and climate plans, addressing all five dimensions of the Energy Union, are necessary tools for a more strategic energy and climate policy planning. As part of that communication, the Commission Guidance to Member States on integrated national energy and climate plans provided the basis for Member States to start developing national plans for the period 2021 to 2030 and set out the main pillars of the governance mechanism. The communication also specified that such governance should be anchored in law.

(15) In its conclusions of 26 November 2015 on the governance system of the Energy Union, the Council recognised that governance of the Energy Union will be an essential tool for the efficient and effective construction of the Energy Union and the achievement of its objectives. The Council underlined that the governance mechanism should be based on the principles of integration of strategic planning and reporting on the implementation of climate and energy policies and coordination between actors responsible for energy and climate policy, at Union, regional and national level. It also underlined that the governance mechanism should ensure that the agreed energy and climate targets for 2030 are met and should monitor the Union's collective progress towards the achievement of the policy objectives across the five dimensions of the Energy Union.

(16) The European Parliament's resolution of 15 December 2015 entitled ‘Towards a European Energy Union’ called for the governance mechanism of the Energy Union to be ambitious, reliable, transparent, democratic and fully inclusive of the European Parliament and to ensure that the 2030 climate and energy targets are achieved.

(17) The European Council has repeatedly stressed the need to take urgent measures in order to ensure the achievement of a minimum target of 10 % of electricity interconnections. In its conclusions of 23 and 24 October 2014, the European Council decided that the Commission supported by the Member States will take urgent measures in order to ensure the achievement of a minimum target of 10 % of electricity interconnections, as a matter of urgency, and no later than 2020 at least for Member States which have not yet attained a minimum level of integration in the internal energy market. The communication of the Commission of 23 November 2017 on strengthening Europe's energy networks assesses progress towards achieving the 10 % interconnection target and suggests ways in which to operationalise the 15 % interconnection target for 2030.

(18) The main objective of the governance mechanism should therefore be to enable the achievement of the objectives of the Energy Union and in particular the targets of the 2030 Framework for Climate and Energy, in the field of GHG emission reduction, energy from renewable sources and energy efficiency. Those objectives and targets stem from the Union policy on energy and from the need to preserve, protect and improve the quality of the environment and to promote the prudent and rational utilisation of natural resources, as provided for in the EU Treaties. None of those objectives, which are indissociably linked, can be regarded as secondary to the other. This Regulation is therefore linked to sectoral law implementing the 2030 targets for energy and climate. While Member States need flexibility to choose policies that are best-matched to their national energy mix and preferences, that flexibility should be compatible with further market integration, increased competition, the attainment of climate and energy objectives and the gradual shift towards a sustainable low-carbon economy.

(19) A socially acceptable and just transition to a sustainable low-carbon economy requires changes in investment behaviour, as regards both public and private investment, and incentives across the entire policy spectrum, taking into consideration citizens on whom and regions on which the transition to a low-carbon economy could have adverse impacts. Achieving GHG emission reductions requires a boost to efficiency and innovation in the European economy and in particular should also create sustainable jobs, including in high-tech sectors, and lead to improvements of air quality and public health.

(20) In view of the international commitments in the Paris Agreement, Member States should report on actions that they undertake to phase out energy subsidies, in particular for fossil fuels. When reporting, Member States may choose to base themselves on existing definitions for fossil fuel subsidies used internationally.

(21) As GHGs and air pollutants largely derive from common sources, policy designed to reduce GHGs can have co-benefits for public health and air quality, in particular in urban areas, that could offset the near-term costs of GHG mitigation. As data reported under Directive (EU) 2016/2284 of the European Parliament and of the Council (8) represent an important input for the compilation of the GHG inventory and the national plans, the importance of compilation and reporting of consistent data between Directive (EU) 2016/2284 and the GHG inventory should be recognised.

(22) The experience gained in implementing Regulation (EU) No 525/2013 of the European Parliament and the Council (9) indicated the need for synergies and coherence with reporting under other legal instruments, in particular with Directive 2003/87/EC of the European Parliament and of the Council (10), Regulation (EC) No 166/2006 of the European Parliament and of the Council (11), Regulation (EC) No 1099/2008 of the European Parliament and of the Council (12) and Regulation (EC) No 517/2014 of the European Parliament and of the Council (13). The use of consistent data to report GHG emissions is essential to ensuring the quality of emissions reporting.

(23) In line with the Commission's strong commitment to better regulation and consistent with a policy that promotes research, innovation and investment, the governance mechanism should result in a significant reduction of administrative burden and complexity for the Member States and relevant stakeholders, the Commission and other Union institutions. It should also help to ensure coherence and adequacy of policies and measures at Union and national level with regard to the transformation of the energy system towards a sustainable low-carbon economy.

(24) The achievement of the Energy Union objectives and targets should be ensured through a combination of Union initiatives and coherent national policies set out in integrated national energy and climate plans. Sectoral Union law in the energy and climate fields sets out planning requirements, which have been useful tools to drive change at the national level. Their introduction at different times has led to overlaps and insufficient consideration of synergies and interactions between policy areas, to the detriment of cost-efficiency. Current separate planning, reporting and monitoring in the climate and energy fields should therefore as far as possible be streamlined and integrated.

(25) The integrated national energy and climate plans should cover ten-year periods and should provide an overview of the current energy system and policy situation. They should set out national objectives for each of the five dimensions of the Energy Union and corresponding policies and measures to meet those objectives and have an analytical basis. The integrated national energy and climate plans covering the first period from 2021 to 2030 should pay particular attention to the 2030 targets for GHG emission reductions, renewable energy, energy efficiency and electricity interconnection. Member States should aim to ensure that the integrated national energy and climate plans are consistent with, and contribute to, achieving the United Nations Sustainable Development Goals. In their integrated national energy and climate plans, Member States may build upon existing national strategies or plans. For the first draft and final integrated national energy and climate plan, a different deadline is provided as compared to subsequent plans, in order to provide Member States with adequate preparation time for their first plans after the adoption of this Regulation. Nevertheless, Member States are encouraged to provide their first draft integrated national energy and climate plans as early as possible in 2018, in order to allow proper preparation, in particular for the facilitative dialogue to be convened in 2018 in accordance with Decision 1/CP.21 of the Conference of the Parties to the United Nations Framework Convention on Climate Change (UNFCCC).

(26) In their integrated national energy and climate plans, Member States should 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 Commission indicative guidance on relevant indicators, including geographical dispersion, that are based on a common approach for energy poverty. In the event that a Member State finds that it has a significant number of households in energy poverty, it should include in its plan a national indicative objective to reduce energy poverty.

(27) A mandatory template for the integrated national energy and climate plans should be established to ensure that all national plans are sufficiently comprehensive and to facilitate comparison and aggregation of national plans, while at the same time ensuring sufficient flexibility for Member States to set out the details of national plans reflecting national preferences and specificities.

(28) The implementation of policies and measures in the areas of energy and climate has an impact on the environment. Member States should therefore ensure that the public is given early and effective opportunities to participate in and to be consulted on the preparation of the integrated national energy and climate plans in accordance, where applicable, with the provisions of Directive 2001/42/EC of the European Parliament and of the Council (14) and the United Nations Economic Commission for Europe (UNECE) Convention on Access to Information, Public Participation in Decision-making and Access to Justice in Environmental Matters of 25 June 1998 (the ‘Aarhus convention’). Member States should also ensure involvement of social partners in the preparation of the integrated national energy and climate plans, and aim to limit administrative complexity when fulfilling their obligations with regard to public consultation.

(29) When carrying out public consultations, and in line with the Aarhus Convention, Member States should aim to ensure equal participation, that the public is informed by public notices or other appropriate means such as electronic media, that the public is able to access all relevant documents, and that practical arrangements related to the public's participation are put in place.

(30) Each Member State should establish a permanent multi-level energy dialogue, bringing together local authorities, civil society organisations, the business community, investors and other relevant stakeholders to discuss the different options envisaged for energy and climate policies. It should be possible for the Member State's integrated national energy and climate plan as well as its long-term strategy to be discussed within the framework of that dialogue. The dialogue may take place by means of any national structure, such as a website, public consultation platform or another interactive communication tool.

(31) Regional cooperation is key to ensuring the effective achievement of the objectives of the Energy Union in a cost-optimal manner. The Commission should facilitate such cooperation between the Member States. Member States should get the opportunity to comment on other Member States' integrated national energy and climate plans before they are finalised to avoid inconsistencies and potential negative impacts on other Member States and ensure that common objectives are met collectively. Regional cooperation in elaborating and finalising integrated national energy and climate plans as well as in their subsequent implementation should be essential to improving the effectiveness and efficiency of measures and fostering market integration and energy security.

(32) Where they cooperate in the framework of this Regulation, Member States should take into consideration existing regional cooperation fora, such as the Baltic Energy Market Interconnection Plan (BEMIP), Central and South-Eastern Europe Connectivity (CESEC), Central-West Regional Energy Market (CWREM), the North Seas Countries' Offshore Grid Initiative (NSCOGI), the Pentalateral Energy Forum, Interconnections for South-West Europe and the Euro-Mediterranean Partnership. Member States are encouraged to envisage cooperation with signatories to the Energy Community, third-country members of the European Economic Area and, where appropriate, with other relevant third countries. Moreover, the Commission may, with a view to promoting market integration, cost-efficient policies, effective cooperation, partnerships and consultations, identify further opportunities for regional cooperation covering one or more of the five dimensions of the Energy Union in accordance with this Regulation, with a long-term vision and based on existing market conditions.

(33) The Commission may undertake discussions with relevant third countries in order to explore the possibility to extend towards them the application of provisions established under this Regulation, in particular those related to regional cooperation.

(34) Integrated national energy and climate plans should be stable to ensure the transparency and predictability of national policies and measures in order to ensure investment certainty. National plans should however be updated once during the ten-year period covered to give Member States the opportunity to adapt to significant changing circumstances. For the plans covering the period 2021 to 2030, Member States should update their plans by 30 June 2024. Objectives, targets and contributions should only be modified to reflect an increased overall ambition in particular as regards the 2030 targets for energy and climate. As part of the updates, Member States should make efforts to mitigate any adverse environmental impacts that become apparent as part of the integrated reporting.

(35) Stable long-term strategies are crucial to contribute towards economic transformation, jobs, growth and the achievement of broader sustainable development goals, as well as to move in a fair and cost-effective manner towards the long-term goal set by the Paris Agreement. Furthermore, Parties to the Paris Agreement are invited to communicate, by 2020, their mid-century, long-term low GHG emission development strategies. In that context, the European Council invited the Commission on 22 March 2018 to present, by the first quarter of 2019, a proposal for a strategy for long-term Union GHG emission reductions in accordance with the Paris Agreement, taking into account the integrated national energy and climate plans.

(36) Member States should develop long-term strategies with a perspective of at least 30 years contributing to the fulfilments of the Member States' commitments under the UNFCCC and the Paris Agreement, in the context of 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 and achievement of long-term GHG emission reductions and enhancements of removals by sinks in all sectors in line with the Union's objective. Member States should develop their strategies in an open and transparent manner and should ensure effective opportunities for the public to participate in their preparation. Their integrated national energy and climate plans and the long-term strategies should be consistent with each other.

(37) The land use, land use change and forestry (LULUCF) sector is highly exposed and very vulnerable to climate change. At the same time, the sector has huge potential to provide for long-term climate benefits and to contribute significantly to the achievement of Union and international long-term climate goals. It can contribute to climate change mitigation in several ways, in particular by reducing emissions, maintaining and enhancing sinks and carbon stocks, and providing bio-materials that can substitute fossil or carbon-intensive materials. Long-term strategies underpinning sustainable investment aiming to increase effective carbon sequestration, sustainable resource management, and long-term stability and adaptability of carbon pools, are essential.

(38) When developing further interconnections, it is important to make a complete assessment of the costs and benefits, including the full technical, socio-economic and environmental impacts thereof as required by Regulation (EU) No 347/2013 of the European Parliament and of the Council (15) and take into account the positive externalities of interconnections, such as the integration of renewables, security of supply and increased competition in the internal market.

(39) As is the case for planning, sectoral Union law in the energy and climate fields sets out reporting requirements, many of which have been useful tools to drive change at the national level, complementary to market reforms, but those requirements have been introduced at different times, leading to overlaps and cost-inefficiency, as well as insufficient consideration of synergies and interactions between policy areas such as GHG mitigation, renewable energy, energy efficiency and market integration. To strike the right balance between the need to ensure a proper follow-up of the implementation of the integrated national energy and climate plans and the need to reduce administrative complexity, Member States should establish biennial progress reports on the implementation of the plans and other developments in the energy system. Some reporting however, particularly with regard to reporting requirements in the climate field stemming from the UNFCCC and Union law, would still be necessary on an annual basis.

(40) Member States' integrated national energy and climate progress reports should mirror the elements set out in the template for the integrated national energy and climate plans. A template for the integrated national energy and climate progress reports should be detailed in subsequent implementing acts given their technical nature and the fact that the first progress reports are due in 2023. The progress reports should be carried out in order to ensure transparency towards the Union, other Member States, regional and local authorities, market actors including consumers, any other relevant stakeholders and the general public. They should be comprehensive across the five dimensions of the Energy Union and, for the first period, at the same time put emphasis on areas covered by the targets of the 2030 Climate and Energy Framework.

(41) Under the UNFCCC, the Union and its Member States are required to develop, regularly update, publish and report to the Conference of the Parties national inventories of anthropogenic emissions by sources and removals by sinks of all GHGs using comparable methodologies agreed by the Conference of the Parties. The GHG inventories are key to enabling the tracking of progress with the implementation of the decarbonisation dimension and for assessing compliance with the legislative acts in the field of climate, in particular Regulation (EU) 2018/842 of the European Parliament and of the Council (16) and Regulation (EU) 2018/841 of the European Parliament and of the Council (17).

(42) Decision 1/CP.16 of the Conference of the Parties to the UNFCCC requires the establishment of national arrangements to estimate anthropogenic emissions by sources and removals by sinks of all GHGs. This Regulation should enable the establishment of those national arrangements.

(43) Experience in the implementation of Regulation (EU) No 525/2013 has demonstrated the importance of transparency, accuracy, consistency, completeness and comparability of information. Building on that experience, this Regulation should ensure that Member States use robust and consistent data and assumptions across the five dimensions and make publicly available 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, and report on their policies and measures, and projections as a key component of the progress reports. The information in those reports should be essential for demonstrating the timely implementation of commitments under Regulation (EU) 2018/842. Operating and continuously improving systems at Union and Member State level coupled with better guidance on reporting should significantly contribute towards an ongoing strengthening of the information necessary in order to track progress in the decarbonisation dimension.

(44) This Regulation should ensure reporting by Member States on adaptation to climate change and the provision of financial, technological and capacity-building support to developing countries, thereby facilitating the implementation of the Union's commitments under the UNFCCC and Paris Agreement. Furthermore, information on national adaptation actions and support is also important in the context of the integrated national energy and climate plans, especially as regards adaptation to those adverse effects of climate change related to the security of the Union's energy supply such as the availability of cooling water for power plants and biomass availability for energy, and information on support relevant to the external dimension of the Energy Union.

(45) The Paris Agreement reaffirms that the Parties should, when taking action to address climate change, respect, promote and consider their respective obligations on human rights and gender equality. Member States should therefore adequately integrate the dimensions of human rights and gender equality in their integrated national energy and climate plans and long-term strategies. Through their biennial progress reports they should report information on how the implementation of their integrated national energy and climate plans contributes to the promotion of both human rights and gender equality.

(46) In order to limit administrative burden on Member States and the Commission, the latter should establish an online platform (e-platform) to facilitate communication, promote cooperation and facilitate public access to information. That should facilitate timely submission of reports as well as improved transparency on national reporting. The e-platform should complement, build on and benefit from existing reporting processes, databases and e-tools, such as those of the European Environment Agency, Eurostat, the Joint Research Centre and the experience gained from the Union's Eco-Management and Audit Scheme.

(47) The Commission should ensure that the final integrated national energy and climate plans are publicly available online. The e-platform, once operational, should be used by the Commission to host and make publicly available the final integrated national energy and climate plans, the updates thereof, the long-term strategies and other relevant reporting information provided by Member States. Before the e-platform becomes operational, the Commission will use its own websites to facilitate public online access to the final integrated national energy and climate plans.

(48) As concerns data to be provided to the Commission by means of national planning and reporting, information from Member States should not duplicate data and statistics which have already been made available via Eurostat in the context of Regulation (EC) No 223/2009 of the European Parliament and of the Council (18) in the same form as under the planning and reporting obligations laid down in this Regulation and are still available from the Commission (Eurostat) with the same values. Where available and appropriate in terms of timing, reported data and projections provided in the integrated national energy and climate plans should build on and be consistent with Eurostat data and the methodology used for reporting European statistics in accordance with Regulation (EC) No 223/2009.

(49) In view of the collective achievement of the objectives of the Energy Union Strategy, in particular the creation of a fully functional and resilient Energy Union, it will be essential for the Commission to assess the draft integrated national energy and climate plans, the integrated national energy and climate plans and, based on progress reports, their implementation. For the first ten-year period, this concerns in particular the achievement of the Union's 2030 targets for energy and climate and national contributions to those targets. Such assessment should be undertaken on a biennial basis, and on an annual basis only where necessary, and should be consolidated in the Commission's State of the Energy Union reports.

(50) With due respect to the Commission's right of initiative, the ordinary legislative procedure, and the institutional balance of power, the European Parliament and the Council should address, on an annual basis, the progress achieved by the Energy Union on all dimensions of Energy and Climate policies.

(51) The Commission should assess 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, in particular with regard to the need for additional Union policies and measures in view of the necessary increase in GHG emission reduction and removals in the Union in line with the Paris Agreement commitments.

(52) Aviation has impacts on the global climate as a result of the release of CO2 as well as of other emissions, including nitrogen oxides emissions, and mechanisms, such as cirrus cloud enhancement. In the light of the rapidly developing scientific understanding of those impacts, an updated assessment of the non-CO2 impacts of aviation on the global climate is already provided for in Regulation (EU) No 525/2013. The modelling used in this respect should be adapted to scientific progress. Based on its assessments of such impacts, the Commission should, by 1 January 2020, present an updated analysis of the non-CO2 effects of aviation, accompanied, where appropriate, by a proposal on how best to address those effects.

(53) In accordance with the current UNFCCC GHG reporting guidelines, the calculation and reporting of methane emissions is based on global warming potentials (GWP) relating to a 100-year time horizon. Given the high GWP and relatively short atmospheric lifetime of methane, leading to a significant impact on the climate in the short and middle term, the Commission should analyse the implications for implementing policies and measures for the purpose of reducing the short- and middle-term impact of methane emissions on Union GHG emissions. The Commission should consider policy options for rapidly addressing methane emissions and should put forward a Union strategic plan for methane as an integral part of the Union's long-term strategy.

(54) To help ensure coherence between national and Union policies and objectives of the Energy Union, there should be an ongoing dialogue between the Commission and the Member States and, where appropriate, between the Member States. As appropriate, the Commission should issue recommendations to Member States, including on the level of ambition of the draft integrated national energy and climate plans, on the subsequent implementation of policies and measures of the notified integrated national energy and climate plans, and on other national policies and measures of relevance for the implementation of the Energy Union. Whereas recommendations have no binding force, as set out in Article 288 of the Treaty on the Functioning of the European Union (TFEU), Member States should nevertheless take due account of such recommendations and explain in subsequent progress reports how they have done so. With regard to renewable energy, the Commission assessment is to be based on the objective criteria. If the Commission issues a recommendation with regard to a Member State's draft national plan, it should do so as quickly as possible, having regard, on the one hand, to the need for the Commission to add up certain quantified planned contributions of all Member States in order to assess the ambition at Union level, and, on the other, the need to provide adequate time for the Member State concerned to take due consideration of the Commission's recommendations before finalising its national plan, and the need to avoid the risk of delay of the Member State's national plan.

(55) Cost-effective deployment of renewable energy is one of the key objective criteria for assessing Member States' contributions. The cost structure of deploying renewable energy is complex and varies significantly between Member States. It includes not only the costs of support schemes, but, inter alia, the connection costs of installations, system backup, providing system security and costs that need to be borne when complying with environmental restrictions. Thus, when comparing Member States based on that criterion, all costs related to deployment, whether they are borne by the Member State, final consumers or project developers, should be accounted for. The Commission's recommendations with regard to the Member States' renewable ambitions should be based on a formula set out in this Regulation which is based on objective criteria. Thus, the assessment of the renewable energy ambition of the Member States should indicate the relative effort made by the Member States, while also taking into consideration relevant circumstances affecting the renewable energy development. The assessment should also include data originating from independent quantitative or qualitative data sources.

(56) Should the ambition of integrated national energy and climate plans or their updates be insufficient for the collective achievement of the Energy Union objectives and, for the first period, in particular the 2030 targets for renewable energy and energy efficiency, the Commission should take measures at Union level in order to ensure the collective achievement of those objectives and targets (thereby closing any ‘ambition gap’). Should progress made by the Union towards those objectives and targets be insufficient for their delivery, the Commission should, in addition to issuing recommendations, propose measures and exercise its powers at Union level or Member States should take additional measures in order to ensure achievement of these objectives and targets (thereby closing any ‘delivery gap’). Such measures should also take into account early efforts made by Member States towards the 2030 target for renewable energy by reaching in or before 2020 a share of energy from renewable sources above its national binding target, or by making early progress towards its national binding 2020 target or in the implementation of its contribution to the Union's binding target of at least 32 % of renewable energy in 2030. In the area of renewable energy, such measures can also include voluntary financial contributions by Member States to a Union renewable energy financing mechanism managed by the Commission, which would be used to contribute to the most cost-efficient renewable energy projects across the Union, thus providing the Member States with the option to contribute to the Union target achievement at the lowest possible cost. Member States' national renewable energy targets for 2020 should serve as baseline shares of renewable energy from 2021 onwards and should be maintained throughout the period. In the area of energy efficiency, additional measures can, in particular, aim to improve the energy efficiency of products, buildings and transport.

(57) Member States' national renewable energy targets for 2020 as set out in Annex I to Directive (EU) 2018/2001 of the European Parliament and of the Council (19) should serve as the starting point for their national indicative trajectory for the period 2021 to 2030, unless a Member State voluntarily decides to set a higher starting point. In addition, they should constitute for this period a mandatory baseline share that forms equally part of Directive (EU) 2018/2001. Consequently, in that period the share of energy from renewable sources in each Member State's gross final consumption of energy should not be lower than its baseline share.

(58) If a Member State does not maintain its baseline share as measured over a one-year period, it should, within one year, take additional measures to cover this gap to its baseline scenario. Where a Member State has effectively taken such necessary measures and fulfilled its obligation to cover the gap, it should be deemed to comply with the mandatory requirements of its base-line scenario as from the moment in time when the gap in question occurred and both under this Regulation and under Directive (EU) 2018/2001.

(59) In order to enable adequate monitoring and early corrective action by Member States and the Commission, and in order to avoid the ‘free rider’ effect, the indicative trajectories of all Member States and, as a result, also the indicative trajectory of the Union should reach, in 2022, 2025 and 2027 at least certain minimum percentages of the total increase in renewable energy foreseen for 2030, as set out in this Regulation. The achievement of these ‘reference points’ in 2022, 2025 and 2027 will be assessed by the Commission on the basis, inter alia, of the Member States' integrated national energy and climate progress reports that Member States should present. Member States below their reference points should explain in their next progress report how they will cover the gap. If the indicative reference points of the Union are not met, Member States below their reference points should cover the gap by implementing additional measures.

(60) The Union and the Member States should strive to provide the most up-to-date information on their GHG emissions and removals. This Regulation should enable such estimates to be prepared in the shortest timeframes possible by using statistical and other information, such as, where appropriate, space-based data provided by the Copernicus Programme established by Regulation (EU) No 377/2014 of the European Parliament and of the Council (20) and by other satellite systems.

(61) Under Regulation (EU) 2018/842, the approach of the annual commitment cycle taken in Decision No 406/2009/EC of the European Parliament and of the Council (21) should continue. That approach requires a comprehensive review of Member States' GHG inventories to enable the assessment of compliance and the application of corrective action, where necessary. A review process at Union level of the GHG inventories submitted by Member States is necessary to ensure that compliance with Regulation (EU) 2018/842 is assessed in a credible, consistent, transparent and timely manner.

(62) Member States and the Commission should ensure close cooperation on all matters relating to the implementation of the Energy Union, with close involvement of the European Parliament on matters related to this Regulation. The Commission should as appropriate assist Member States in implementing this Regulation, particularly with regard to the establishment of the integrated national energy and climate plans and associated capacity building, including by mobilising internal resources from internal modelling capacity and, where appropriate, external expertise.

(63) Member States should ensure that their integrated national energy and climate plans take into consideration the latest country-specific recommendations issued in the context of the European Semester.

(64) Member States should use the energy efficiency first principle, which means to consider, before taking energy planning, policy and investment decisions, whether cost-efficient, technically, economically and environmentally sound alternative energy efficiency measures could replace in whole or in part the envisaged planning, policy and investment measures, whilst still achieving the objectives of the respective decisions. This includes, in particular, the treatment of energy efficiency as a crucial element and a key consideration in future investment decisions on energy infrastructure in the Union. Such cost-efficient alternatives include 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. Member States should also encourage the spread of that principle in regional and local government, as well as in the private sector.

(65) The European Environment Agency should assist the Commission, as appropriate and in accordance with its annual work programme, with assessment, monitoring and reporting work.

(66) The power to adopt acts in accordance with Article 290 TFEU should be delegated to the Commission in order to amend the general framework for the integrated national energy and climate plans template for the purpose of adapting the template 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, take account of changes in the GWPs and internationally agreed inventory guidelines, and set substantive requirements for the Union inventory system and set up the registries. It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making (22). In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council should receive all documents at the same time as Member States' experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts. It should also take into account, where necessary, decisions adopted under the UNFCCC and the Paris Agreement.

(67) In order to ensure uniform conditions for the implementation of this Regulation, in particular with regard to; integrated national energy and climate progress reports; integrated reporting on national adaptation actions, financial and technology support provided to developing countries and auctioning revenues; annual reporting on approximated GHG inventories, GHG inventories and accounted GHG emissions and removals; the Union renewable energy financing mechanism, national inventory systems; the inventory review; the Union and national systems for policies and measures and projections; and reporting on GHG policies and measures and projections, implementing powers should be conferred on the Commission. Those powers should be exercised in accordance with Regulation (EU) No 182/2011 (23).

(68) In order to exercise the implementing powers laid down in this Regulation, the Commission should be assisted in its tasks under this Regulation by a Climate Change Committee which reinstates the existing Climate Change Committee established by Article 8 of Decision 93/389/EEC, Article 9 of Decision 280/2004/EC and Article 26 of Regulation (EU) No 525/2013 and by an Energy Union Committee. In order to ensure consistency of policies and aim at maximising synergies between sectors, both climate and energy experts should be invited to the meetings of both committees when implementing this Regulation.

(69) The Commission should review the implementation of this Regulation in 2024 and every five years thereafter and make amending proposals as appropriate to ensure the proper implementation thereof and the achievement of its objectives. Those reviews should take into account developments and should be informed by the results of the global stocktake of the Paris Agreement.

(70) This Regulation should integrate, amend, replace and withdraw certain planning, reporting and monitoring obligations currently contained in sectoral energy and climate Union legislative acts to ensure a streamlined and integrated approach to the main planning, reporting and monitoring strands. The following legislative acts should therefore be amended accordingly: — Directive 94/22/EC of the European Parliament and of the Council (24), — Directive 98/70/EC of the European Parliament and of the Council (25), — Directive 2009/31/EC of the European Parliament and of the Council (26), — Regulation (EC) No 663/2009 of the European Parliament and of the Council (27), — Regulation (EC) No 715/2009 of the European Parliament and of the Council (28), — Directive 2009/73/EC of the European Parliament and of the Council (29), — Council Directive 2009/119/EC (30), — Directive 2010/31/EU of the European Parliament and of the Council (31), — Directive 2012/27/EU, — Directive 2013/30/EU of the European Parliament and of the Council (32), — Council Directive (EU) 2015/652 (33).

(71) For reasons of coherence and legal certainty, nothing in this Regulation should prevent the application of the derogations pursuant to the relevant Union sectoral law in the area of electricity and electricity risk preparedness.

(72) This Regulation should also integrate in full the provisions of Regulation (EU) No 525/2013. As a consequence, Regulation (EU) No 525/2013 should be repealed from 1 January 2021. However, in order to ensure that the implementation of Decision No 406/2009/EC continues under Regulation (EU) No 525/2013 and that certain aspects linked to the implementation of the Kyoto Protocol remain enshrined in law, it is necessary that certain provisions remain applicable after that date.

(73) Since the objectives of this Regulation cannot be sufficiently achieved by the Member States alone and can therefore, by reason of the scale and effects of the proposed action, be better achieved at Union level, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on European Union. In accordance with the principle of proportionality, as set out in that article, this Regulation does not go beyond what is necessary to achieve those objectives,

HAVE ADOPTED THIS REGULATION:

CHAPTER 1

General provisions

Article 1 Subject matter and scope 1. This Regulation establishes a governance mechanism to: (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, and for the first ten-year period, from 2021 to 2030, in particular the Union's 2030 targets for energy and climate; (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; (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 four future years ending with 0 or 5 immediately following the reporting year; (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; (f) an assessment of the impacts of the planned policies and measures to meet the objectives referred to in point (b), including their consistency with the long-term greenhouse gas emission reduction objectives under the Paris Agreement and the long-term strategies as referred to in Article 15; (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 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, 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 1 273 Mtoe of primary energy and/or no more than 956 Mtoe of final energy. 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. 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.

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 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.

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 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 perspective of at least 30 years. Member States should, where necessary, update those strategies every five years. 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; (c) achieving long-term greenhouse gas emission reductions and enhancements of removals by sinks in all sectors in accordance with the Union's objective, in the context of necessary reductions 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 temperature goals 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 as early as possible and, as appropriate, achieve negative emissions thereafter; (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 th