COMMISSION STAFF WORKING DOCUMENT EXECUTIVE SUMMARY OF THE IMPACT ASSESSMENT REPORT Accompanying the Proposal for a directive of the European Parliament and the Council amending Directive (EU) 2018/2001 of the European Parliament and of the Council, Regulation (EU) 2018/1999 of the European Parliament and of the Council and Directive 98/70/EC of the European Parliament and of the Council as regards the promotion of energy from renewable sources, and repealing Council Directive (EU) 2015/652
Date: 2021-07-14
Institutions: Directorate-General for Energy, European Commission
Subjects: EU energy policy, energy consumption, energy efficiency, energy production, energy saving, greenhouse gas, pollution control measures, reduction of gas emissions, renewable energy, renewable resources

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   EUROPEAN COMMISSION  Brussels, 14.7.2021  SWD(2021) 622 final  COMMISSION STAFF WORKING DOCUMENT  EXECUTIVE SUMMARY OF THE IMPACT ASSESSMENT REPORT  Accompanying the Proposal for a directive of the European Parliament and the Council amending Directive (EU) 2018/2001 of the European Parliament and of the Council,  Regulation (EU) 2018/1999 of the European Parliament and of the Council and Directive 98/70/EC of the European Parliament and of the Council  as regards the promotion of energy from renewable sources, and repealing Council Directive (EU) 2015/652 {COM(2021) 557 final} - {SEC(2021) 657 final} - {SWD(2021) 620 final} - {SWD(2021) 621 final}  
 
 
Executive Summary Sheet (Max 2 pages) 
Impact  assessment  on  amending  Directive  (EU)  2018/2001  on  the  promotion  of  the  use  of  energy  from 
renewable sources 
A. Need for action 
What is the problem and why is it a problem at EU level?  

The European Green Deal establishes the objective of becoming climate neutral in 2050 in a manner that 
contributes to European competitiveness, growth and jobs. This objective requires an emissions reduction 
target  of  55%  by  2030  as  confirmed  by  the  European  Council  in  December  2020.  This  in  turn  requires 
significantly higher shares  of  renewable energy  sources  in  an integrated  energy system. The current EU 
target of at least 32% renewable  energy by 2030, set in the Renewable Energy Directive (REDII) is not 
sufficient  and  needs  to  go  up  to  38-40%,  according  to  the  Climate  Target  Plan  (CTP),  along  with  new 
accompanying measures in different sectors in line with the Energy System Integration, the Hydrogen, the 
Offshore Renewable Energy and the Biodiversity Strategies.   
What should be achieved? 
Greater use of energy from  renewable sources by  2030, better energy system integration while ensuring 
protection of biodiversity and climate objectives. 
What is the value added of action at the EU level (subsidiarity)?  
The achievement of higher shares of renewable energy sources in final EU energy consumption depends 
on  national  contributions  from  each  Member  State.  These  will  be  more  ambitious  and  cost-effective  if 
driven by an agreed common legal and policy framework. 
B. Solutions 
What are the various options to achieve the objectives? Is there a preferred option or not? If not, 
why? 
The main options considered are: (1) increased EU-level renewable energy target for 2030 in the range of 
38-40%, with national contributions; (2) expanded menu of measures (covering also enabling measures for 
district  heating and cooling and buildings) together with  an obligation for an annual  1.1 p.p. increase at 
Member State level and an indicative Member State-specific top-up; (3) increased overall transport target, 
in line with the Climate Target Plan, including sub-targets for advanced biofuels and renewable fuels of 
non-biological origin; (4) EU benchmark for renewables in industry and sub-target for renewable fuels of 
non-biological origin; (5) promotion of renewables in electricity through: (a) promotion of power purchase 
agreements, (b) cross-border renewable energy pilot projects, (c) specific measures to foster deployment 
of offshore renewable energy; (6) Specific measures to mainstream renewable electricity in transport and 
heating  and  cooling;  (7)  EU  certification  system  and  promotion  of  renewable  and  low  carbon  fuels;  (8) 
targeted strengthening of the REDII sustainability criteria for biomass.  
What are different stakeholders' views? Who supports which option?  
The majority (80%) of replies to the open public consultation showed a preference for an increased RES 
target in line with the CTP (43%) or higher (37%). 61% favoured a binding target both at EU and national 
level. Transport and heating and cooling were the two most popular sectors where additional efforts were 
considered necessary, with a majority supporting increased targets for both sectors at least at the level of 
the CTP. Replies from business in particular supported EU-wide certification and promotion of renewable 
and  low  carbon  fuels.  A  coordinated  response  of  more  than  38,000  participants  requested  removing 
biomass from the list of renewable resources and limiting the use for bioenergy to locally available waste 
and  residues,  whereas  representatives  from  trade  unions,  business  and  a  majority  of  public  authorities 
preferred not changing the sustainability criteria for biomass. 
C. Impacts of the preferred option 
What are the benefits of the preferred option (if any, otherwise of main ones)?                                     
The  preferred  options  effectively  help  the  Member  States  increase  the  use  of  renewable  energy,  thus 
contributing to reducing GHG emissions in the EU by 55% by 2030, as well as to support other European 
Green Deal objectives. The increased use of energy from renewable sources is crucial to contribute to the 

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EU’s  technological  and  industrial  leadership  and  the  creation  of  jobs  and  growth.  The  increase  in 
renewable energy would also result in a more secure and integrated EU energy system less dependent on 
imports.  Renewable  solutions  for  heating  and  cooling  and  transport  are  a  main  factor  to  improve  air 
quality  in  cities.  Strengthened  sustainability  criteria  for  bioenergy  will  have  positive  impacts  on 
biodiversity, the carbon sink and air quality.  
What are the costs of the preferred option (if any, otherwise of main ones)?                                    
An increased climate target for 2030 will require considerable additional investments. All scenarios tend 
to  converge on similar total  figures. Energy  expenses as  a share of households’ consumption grow only 
slightly  in  the  core  scenarios  compared  to  the  baseline.  Growing  expenditure  (due  to  investments 
necessary  for  clean  energy  transition  and  the  carbon  price  mark-up)  is  moderated  by  increased 
consumption linked to economic growth. As an annual average (2021-2030) and if assessed detached from 
other “Fit for 55” policies, investment expenditures, excluding transport, will be higher by €13 billion and 
energy system costs, excluding carbon pricing and disutilities, will be higher by €4 billion. 
What are the impacts on SMEs and competitiveness?  
Increasing  renewable  energy  use  in  heating  and  cooling  and  in  buildings  will  require  building 
works/renovation,  leading  to  an  increase  in  employment  in  the  sector.  Up  to  95%  of  construction, 
architecture and civil engineering firms are SMEs, so there is a likely positive economic effect on SMEs. 
Guidance  and  financial  support  on  power  purchase  agreements  will  help  SMEs  who  do  not  have  the 
resources  to  deal  with  complex  contracts.  More  stringent  forest  biomass  criteria  may  create  increased 
administrative costs and burden for small forest owners. 
Will there be significant impacts on national budgets and administrations?  
In  terms  of  administrative  costs,  increases  in  targets  are  not  likely  to  create  significant  impacts,  as 
monitoring/compliance  systems  are  already  in  place.  On  bioenergy,  in  some  Member  States,  national 
authorities are likely to face increased monitoring costs associated with fuelwood limitations and a larger 
number of installations covered by sustainability criteria. 
Will there be other significant impacts?  
The increase of RES in the EU will contribute to increased security of supply by replacing imported fossil 
fuels from third countries and to reduced volatility to externalities. Strengthened sustainability criteria for 
forest biomass should have positive impacts on biodiversity, contribute to the carbon sink and reduce air 
pollution. 
Proportionality?  
The preferred package of options is considered proportionate and builds to the extent possible on current 
policy  design.  The  balance  between  obligations  and  the  flexibility  left  to  the  Member  States  on  how  to 
achieve the objectives is considered appropriate given the imperative of achieving climate neutrality. 
D. Follow up 
When will the policy be reviewed?  
Under the Governance Regulation, Member States submitted their integrated national energy and climate 
plans,  including  shares  of  renewable  energy  in  final  energy  consumption,  in  heating  and  cooling  and 
transport  sectors,  as  well  as  information  on  their  policies  and  measures  to  achieve  the  targets.  Updated 
NECPs are due in 2024.  

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