COMMISSION STAFF WORKING DOCUMENT Subsidiarity Grid Accompanying the Proposal for a Directive of the European Parliament and of the Council on energy efficiency (recast)
Date: 2021-07-14
Institutions: Directorate-General for Energy, European Commission
Subjects: EU energy policy, adaptation to climate change, energy consumption, energy cooperation, energy efficiency, energy saving, energy use, reduction of gas emissions

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 14.7.2021  SWD(2021) 627 final  COMMISSION STAFF WORKING DOCUMENT Subsidiarity Grid Accompanying the Proposal for a Directive of the European Parliament and of the Council  on energy efficiency (recast) {COM(2021) 558 final} - {SEC(2021) 558 final} - {SWD(2021) 623 final} - {SWD(2021) 624 final} - {SWD(2021) 625 final} - {SWD(2021) 626 final}  
 
 
Subsidiarity Grid 

1.  Can the Union act? What is the legal basis and competence of the Unions’ intended action? 

1.1 Which article(s) of the Treaty are used to support the legislative proposal or policy initiative? 

Article 194(2) of the Treaty on the Functioning of the European Union (TFEU), which provides the 
legal basis for proposing measures on energy and in particular to promote energy efficiency and 
energy saving, one of the goals of the Union’s energy policy, set out in Article 194(1)(c) TFEU. 
Directive 2012/27/EU (EED), now subject to recast, was also adopted under Article 194(2) TFEU in 
2012. 

1.2 Is the Union competence represented by this Treaty article exclusive, shared or supporting in 
nature? 

In the case of energy policy, the Union’s competence is shared. 

Subsidiarity does not apply for policy areas where the Union has exclusive competence as defined in 
Article 3 TFEU1. It is the specific legal basis which determines whether the proposal falls under the 
subsidiarity control mechanism. Article 4 TFEU2 sets out the areas where competence is shared 
between the Union and the Member States. Article 6 TFEU3 sets out the areas for which the Unions 
has competence only to support the actions of the Member States. 

2.  Subsidiarity Principle: Why should the EU act? 

2.1 Does the proposal fulfil the procedural requirements of Protocol No. 24: 

-  Has there been a wide consultation before proposing the act? 
- 

Is there a detailed statement with qualitative and, where possible, quantitative indicators 
allowing an appraisal of whether the action can best be achieved at Union level? 

The evaluation roadmap/ inception impact assessment was published on 3 August 2020 and was 
available until 21 September 2020. 
The Commission received 189 replies, and 99 stakeholders submitted supplementary statements and 
information to their replies. The largest number of replies were received from business associations, 
followed by companies and NGOs. 

In addition, nine  dedicated stakeholder meetings were  organised in the period from September to 
October 2020 with targeted stakeholder groups on specific topics, and a dedicated Energy Efficiency 
Directive expert group meeting was held on 10 November 2020. The Commission also launched the 
internet  based  public  consultation  from  17  November  2020  until  9  February  2021,  in  line  with  the 
Commission  Better  Regulation  rules.  The  survey  contained  multiple  choice  and  open  questions 
covering a wide range of aspects concerning the ex-post evaluation and options for the revision of 
the  Energy  Efficiency  Directive.  In  total  344  replies  were  received  from  wide  range  of  stakeholder 
groups. The largest group of respondents covered was business associations (132 replies), individual 
businesses and companies (92 replies), followed by NGOs (34 submissions). 

1 https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:12008E003&from=EN  
2 https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:12008E004&from=EN  
3 https://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:12008E006:EN:HTML  
4 https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:12016E/PRO/02&from=EN  

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The explanatory memorandum and the impact assessment both contain a section on the principle of 
subsidiarity and address this issue in the context of the policy analysed, where appropriate.  

2.2 Does the explanatory memorandum (and any impact assessment) accompanying the 

Commission’s proposal contain an adequate justification regarding the conformity with the 
principle of subsidiarity? 

The  proposal  builds  on  the  growing  importance  of  energy  efficiency  as  a  political  and  economic 
challenge and its close interrelation to the policy areas of security of energy supply, climate change, 
internal market and economic and social development.  

The need for EU action  
The underlying problems causing a shortfall in energy savings (compared to the  optimal level from 
the  perspective  of  society)  are  the  same  across  the  EU  and  cannot  be  sufficiently  achieved  by 
Member States alone. EU level action is needed to ensure that Member States contribute to the EU 
level binding energy efficiency target and that  it is collectively and cost-effectively reached –  while 
taking into account Member States national circumstances and context.  
Moreover, in view of the external costs of energy consumption (e.g. greenhouse  gas emissions, air 
pollutant emissions, energy security), actions to increase energy efficiency and reduce energy use are 
likely  to  lead  to  benefits  beyond  national  borders.  For  trans-boundary  problems,  Member  State 
action is unlikely to lead to optimal outcomes. In the presence of a higher climate target for 2030, 
which requires a higher energy efficiency target, EU action must supplement and reinforce national 
and local action.  

In  addition,  the  nature  of  the  instrument  and  the  fact  that  the  energy  efficiency  targets  are  not 
binding at national level respects the principle of subsidiarity. Member States retain the same level of 
flexibility  in  terms  of  selecting  their  policy  mix,  sectors  and  the  approach  to  achieve  the  required 
energy savings by 2030, by taking into account the national context and specificities.  

Energy is a policy field with high investment needs. A coordinated approach at EU level can create 
trust,  reliability  and  continuity,  increasing  the  likelihood  of  different  actors  investing  and  getting 
involved. Policies at EU level can also create a just and fair transition for countries and regions with 
economies that may be significantly impacted by changes in industrial structure or employment as a 
result of the energy transition towards decarbonisation. Coordinated action at EU level, furthermore, 
enables taking better account of the different capabilities to act among Member States.  

EU added value 
Energy  efficiency  policies  are  a  crucial  mechanism  to  reduce  greenhouse  gas  emissions  and  other 
environmental issues  like air pollution. The EU’s energy and climate  targets  for 2030 are collective 
targets.  In  this  regard,  coordinated  EU  policies  have  a  better  chance  of  transforming  Europe  to  a 
climate  neutral  continent  by  2050.  A  common  approach  is  the  most  effective  way  to  ensure  the 
fulfilment of international commitments. 
Concrete  actions  to  reduce  energy  consumption  need  to  be  carried  out  at  Member  States’  level. 
Nevertheless,  an  effective  framework  for  those  actions  is  needed  at  EU  level.  A  coordinated  and 
harmonised approach at the EU level will enable  and enhance Member States´ actions, and ensure 
the  four  freedoms.  A  common  EU  approach  will  help,  for  example,  to  create  larger  markets  for 
European suppliers, workers and goods, and ensure that the same obligations and rules apply. This 
will protect and boost competition. A common approach at EU level will allow consumers to enjoy 
the  same  basic  rights  and  to  receive  comparable  and  recognisable  information  across  the  EU.  A 
common EU approach to energy efficiency will enable addressing specific common challenges such as 

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the need to alleviate energy poverty. 

The  experience  from  the  implementation  of  the  Energy  Efficiency  Directive  has  shown  that  a 
common  EU  framework  is  socially  just,  reduces  costs,  increases  benefits  from  the  internal  market 
and  allows  national  policy-makers  to  learn  from  each  other.  The  Energy  Efficiency  Directive 
effectively complements and catalyses other national and EU measures. Policies adopted at EU level 
reflect the close interrelation of the policy areas of climate change, security of supply, sustainability, 
environment,  the  internal  market,  social  and  economic  development.  Effects  on  the  single  market 
concerning  growth,  investments  and  jobs  creation  can  thus  be  considered  when  policies  and 
measures are being decided and implemented. This was supported by the Task Force of mobilising 
Member  States  efforts  to reach  2020  energy efficiency  targets,  which  called  for  a  strong,  targeted 
and  common  energy  efficiency  policy  framework  to  attract  the  necessary  investments,  ensure  the 
energy savings are achieved in a just and fair way. 

Moreover, the EU single market acts as a strong driver for cost-efficiency in achieving GHG emission 
reductions. A common EU action will ensure that the objectives of the policy are achieved collectively 
at  the  lowest  possible  cost.  Therefore,  to  reach  the  overall  targets  collectively,  the  coordinated 
action at EU level can enable and enhance efforts at national level by ensuring a more harmonised 
approach,  helping  to  create  markets  of  scale  for  European  suppliers,  and  ensuring  that  they  are 
under  the  same  obligations  and  rules.  An  EU-level  framework  will  also  provide  more  investor 
certainty. It will provide a general impetus across the whole single market to invest in more energy 
efficient products of all types. The definition of EU and national objectives gives a clear indication on 
how much efforts are expected in energy efficiency, and it helps defining the size of the market for 
energy efficient products and services. This will send a signal to suppliers and manufacturers to put 
more effort into product development in this regard.  

Delivering  on  energy  efficiency  while  empowering  consumers  requires  meaningful,  accurate  and 
understandable information on energy use, related costs, and easy access to a competitive market of 
building construction materials (windows, insulation, etc.), heating and cooling solutions, and other 
products  that  help  improve  energy  efficiency.  Sector-specific  measures,  for  example  aimed  at  the 
heating and cooling sector, to ensure appropriate attention to sectors, where the largest reduction of 
GHG  emissions  need  to  be  achieved.  Harmonised  planning  ensures  comparable  quality  of  the 
national policies and measures. It also ensures availability of structured information on the sectoral 
objectives and plans in Member States, thus helping Member States and market participants to plan 
their activities. In the case of heating and cooling it helps ensuring a sufficient market with common 
standards  for  the  suppliers  of  high  efficiency  equipment  for  district  heating  and  cogeneration  to 
lower costs and to motivate them to innovate and improve their offer. 

By  acting at EU  level, several barriers to public and private investments can be  tackled, addressing 
the  lack  of  coordination  between  various  authorising  bodies  at  national  level  and  stimulating  the 
administrative capacity to implement cross-border projects and support schemes.  

The Energy Efficiency Directive essentially sets the overall energy efficiency objective but leaves the 
majority of actions to be taken to achieve this objective to the Member States.  

‒  The  application  of  the  `Energy  Efficiency  First´  principle  leaves  flexibility  to  the  Member 

‒ 

States.  
-The Energy Efficiency Directive sets binding energy efficiency targets at EU level, but will not 
establish  binding  targets  at  national  level  for  2030.  Member  States  should  establish  their 
contribution to the collective achievement of the Union’s energy efficiency target taking into 
account the formula provided in the Energy Efficiency Directive.  

‒  The  Directive  requires  that  Member  States  achieve  an  increased  annual  energy  savings 

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-  

-  

obligation  in  end  use  sectors  while  leaving  freedom  to  Member  States  how  this  obligation 
should  be  achieved  either  via  an  energy  efficiency  obligation  scheme  or  alternative  policy 
measures,  or  a  combination  of  both.    Since  the  energy  savings  obligation  is  an  effective 
measure to improve energy efficiency in various sectors, it is also an effective tool to support 
Member States in the alleviation of energy poverty. Thus, the energy savings obligation will 
require  Member  States  to  achieve  an  individually  calculated  share  of  the  total  amount  of 
energy  savings  required  towards  vulnerable  consumers,  people  affected  by energy  poverty 
and, where applicable, people living in social housing. A harmonised approach will contribute 
to a just energy transition for all European citizens. The energy savings obligation retains full 
flexibility  for Member  States  with  regard  to  the  types  of  policy measures,  their  size,  scope 
and content.  

‒  The Energy Efficiency Directive will continue providing an annual rate of renovation required 
related  to  the  floor  area of  buildings.  The  scope  of  this  obligation  is  extended  to  buildings 
owned  or  occupied  by  all  public  bodies  on  the  territory  of  a  Member  State.  This  measure 
shall ensure that Member States continue to lead by example through upgrading the energy 
performance of buildings, while retaining the flexibility regarding the choice of measures. 
[An obligation to achieve an annual reduction of the energy consumption in the public sector 
will ensure that the public sector fulfils its exemplary role, whereas Member States retain full 
flexibility  regarding  the  choice  of  energy  efficiency  improvement  measures  to  achieve  the 
required reduction of the final energy consumption.]  

‒ 

‒  Furthermore,  the  Energy  Efficiency  Directive  will  provide  the  necessary  framework  to 
ensure high energy efficiency performance of products, services and buildings purchased 
by  public  bodies,  and  to  consider,  where  appropriate,  wider  sustainability,  social, 
environmental  and  circular  economy  aspects.  A  harmonised  approach,  including 
considering energy efficiency aspects in tendering processes, will preserve competition, 
ensure long-term and cost-effective energy savings and allow for continuing markets of 
scale.  

‒  The Energy Efficiency Directive will ensure the same level of basic contractual rights for 
all  European  citizens  regarding  heating,  cooling  and  domestic  hot  water.  Whereas  the 
Energy  Efficiency  Directive  will  require  the  implementation  of  certain  basic  contractual 
rights of customers, the national competences would not be restricted. One level playing 
field across the EU is also required with regard to consumer information and awareness 
raising activities. Member States are required to take appropriate measures, whereas the 
concrete  design  of  such  actions  remain  at  their  discretion.  The  EU-wide  impacts  of 
economic  and  health  crisis  show  that  a  harmonised  approach  is  also  required  to 
empower  and  protect  vulnerable  consumers  and  those  affected  by  energy  poverty.  To 
ensure the same level of protection and empowerment, the Energy Efficiency Directive 
requires to implement and finance energy efficiency improvement measures as a priority 
among those people, which will also support Member States in mitigating distributional 
effects.  Network  of  experts  will  facilitate  Member  States´  actions  in  this  regard  and 
should be established in all Member States. 

‒ 

‒  While requiring mandatory energy audits for large enterprises, as energy savings can be 
significant,  Member  States  will  retain  flexibility  to  develop  programmes  to  encourage 
SMEs to undergo energy audits.  
-Regarding the  heating and cooling sector, Member States  retain their competences  to 
carry out a comprehensive assessment of the potential for high-efficiency cogeneration 
and efficient district heating and cooling, and may grant exemptions in the area of waste 
heat recovery through high-efficiency cogeneration or by supplying a district heating or 
cooling network. The Energy Efficiency Directive will allow Member States to introduce 

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measures and procedures to promote high efficiency cogeneration installations.  

‒  To contribute to the creation of a single market, all Member States, National Regulatory 
Authorities,  transmission  and  distribution  system  operators  should  apply  the  `Energy 
Efficiency  First´  principle  and  remove  all  regulatory,  technical  and  non-regulatory 
measures for energy efficiency improvements in the operation of energy networks.  
‒  The  development of a market  for energy services to ensure the  availability of both the 
demand for and the supply of energy services would remain subject to Member States´ 
discretion.  

‒  The  Energy  Efficiency  Directive  would  retain  the  flexibility  for  Member  States  to  take 
action  in  identifying  and  addressing  regulatory  and  non-regulatory  barriers  for  energy 
efficiency improvements. 

‒  Member States and regions would be encouraged to make full use of the Structural and 
Investments  Funds  and  other  financing  facilities  to  trigger  investments  in  energy 
efficiency  improvement  measures,  to  alleviate  energy  poverty,  and  to  mitigate  any 
distributional effects on vulnerable consumers, households affected by energy poverty, 
and those living in social housing.  

The proposal therefore complies with the subsidiarity principle.  

2.3 Based on the answers to the questions below, can the objectives of the proposed action be 

achieved sufficiently by the Member States acting alone (necessity for EU action)? 

(a)  Are there significant/appreciable transnational/cross-border aspects to the problems being 

tackled? Have these been quantified? 

The  Energy  Efficiency  Directive  sets  binding  energy  efficiency  targets  at  EU  level,  but  will  not 
establish  binding  targets  at  national  level  for  2030.  Member  States  should  establish  their 
contribution to the collective achievement of the Union’s energy efficiency target taking into account 
the formula provided in the Energy Efficiency Directive.  
These aspects have been considered in detail in the impact assessment and the impacts have been 
quantified to the extent possible. 

(b)  Would national action or the absence of the EU level action conflict with core objectives of 

the Treaty5 or significantly damage the interests of other Member States? 

In accordance with Article 194(1) TFEU, one of the aims of Union energy policy shall be to promote 
energy  efficiency  and  energy  savings.  If  no  action  were  taken  at  EU  level  this  aim  would  be 
jeopardised.  

In its Conclusions of 10 and 11 December 2020, the European Council endorsed a binding EU target 
of a net domestic reduction of at least 55% in greenhouse gas emissions by 2030 compared to 1990. 
Energy efficiency is a key area of action, without which the full decarbonisation of the EU economy 
cannot  be  achieved  (see  Communication:  A  Clean  Planet  for  all  –  A  European  strategic  long-term 
vision  for  a  prosperous,  modern,  competitive  and  climate  neutral  economy  (COM/2018/773  final), 
where the role of energy efficiency as a condition sine qua non for all decarbonisation scenarios is 
assessed). 

(c)  To what extent do Member States have the ability or possibility to enact appropriate 

measures? 

5 https://europa.eu/european-union/about-eu/eu-in-brief_en  

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Member  States  have  shown,  in  their  transposition  and  implementation  of  the  Energy  Efficiency 
Directive,  that  they  can  enact  appropriate  measures  to  reach  the  goals  of  the  Directive.  The 
measures included in the proposal leave adequate margin for Member States’ specific circumstances 
to  be  taken  into  account,  and  flexibility  is  retained  to  give  Member  States  a  sufficient  range  of 
possibilities. 

(d)  How does the problem and its causes (e.g. negative externalities, spill-over effects) vary 

across the national, regional and local levels of the EU? 

The underlying problems causing a shortfall in energy savings (compared to the optimal level from 
the perspective of society) are the same across the EU. Furthermore, the need to reduce greenhouse 
gas emissions and other environmental issues like air pollution, for which energy efficiency policies 
are a crucial mechanism, are global issues. 

(e)  Is the problem widespread across the EU or limited to a few Member States? 

The problems addressed by this initiative are widespread across the EU. 

(f)  Are Member States overstretched in achieving the objectives of the planned measure? 

No, the qualitative and quantitative analysis of the impacts of the planned policies on the Member 
States, in particular the economic and social impacts, do not point to the conclusion that the 
Member States are overstretched (section 6 of the Impact Assessment). 

(g)  How do the views/preferred courses of action of national, regional and local authorities 

differ across the EU? 

Member  States  will  have  sufficient  room  of  manoeuvre  in  the  implementation  of  the  Directive 
considering also the specific climate conditions, social and economic structures at national, regional 
or local level. 

2.4 Based on the answer to the questions below, can the objectives of the proposed action be 

better achieved at Union level by reason of scale or effects of that action (EU added value)? 

(a)  Are there clear benefits from EU level action?  

Yes, it sets a clear and common framework for the Member States and increases the chances of 
reaching the Union’s climate ambition in effective manner together with the other initiatives 
proposed under the Fit for 55 package. 

(b)  Are there economies of scale? Can the objectives be met more efficiently at EU level (larger 

benefits per unit cost)? Will the functioning of the internal market be improved? 

The coordinated action of the EU and the Member States allows for cost-efficient achievement of the 
agreed targets, economies of scale for suppliers, workers and goods, as well as better functioning of 
the  internal  energy  market  by  contributing  to  the  removal  of  regulatory,  technical  and  non-
regulatory measures for energy efficiency improvements in the operation of energy networks; and to 
the better functioning of energy services markets. 

(c)  What are the benefits in replacing different national policies and rules with a more 

homogenous policy approach? 

Energy  efficiency  policies  are  a  crucial  mechanism  to  reduce  greenhouse  gas  emissions  and  other 
environmental issues  like air pollution. The EU’s energy and climate  targets  for 2030 are collective 

6 

 
 
targets.  In  this  regard,  coordinated  EU  policies  have  a  better  chance  of  transforming  the  EU  to  a 
climate  neutral  continent  by  2050.  A  common  approach  is  the  most  effective  way  to  ensure  the 
fulfilment of international commitments. 
Concrete  actions  to  reduce  energy  consumption  need  to  be  carried  out  at  Member  States’  level. 
Nevertheless,  an  effective  framework  for  those  actions  is  needed  at  EU  level.  A  coordinated  and 
harmonised approach at the EU level will enable and enhance Member States´ actions, and ensure 
the  four  freedoms.  A  common  EU  approach  will  help,  for  example,  to  create  larger  markets  for 
European suppliers, workers and goods, and ensure that the same obligations and rules apply. This 
will protect and boost competition. A common approach at EU level will allow consumers to enjoy 
the  same  basic  rights  and  to  receive  comparable  and  recognisable  information  across  the  EU.  A 
common EU approach to energy efficiency will enable addressing specific common challenges such as 
the  need  to  alleviate  energy  poverty.  An  EU-level  framework  will  also  provide  more  investor 
certainty. 

(d)  Do the benefits of EU-level action outweigh the loss of competence of the Member States 
and the local and regional authorities (beyond the costs and benefits of acting at national, 
regional and local levels)? 

Yes, as presented in the Impact Assessment accompanying the initiative (section 3 and for each 
measure in section 6.3). 

(e)  Will there be improved legal clarity for those having to implement the legislation? 

The proposal for a recast of the Directive combines a codification and an amendment of the Energy 
Efficiency  Directive,  which  has  been  also  amended  previously  in  2018.  The  recasting  technique 
contributes to simplifying Union legislation by allowing the adoption of a single legislative text which 
simultaneously  makes  the  desired  amendment,  codifies  that  amendment  and  previous  ones  the 
unchanged  provisions  of  the  earlier  act,  and  repeals  that  act  and  previous  amending  acts.  The 
purpose  is  thus  simplifying  and  clarifying  the  law  of  the  Union  so  as  to  make  it  clearer  and  more 
accessible  to  businesses  and  citizens,  thus  giving  them  new  opportunities  and  the  chance  to  make 
use of the specific rights it gives them.  

[the amended requirements on energy audits give better clarity to enterprises as those requirements 
would  apply  on  basis  of  energy  consumption  rather  the  size  of  an  enterprise  (in  line  with  SME 
definition  (previously)),  which  created  a  lot  complexity  in  terms  of  identifying  large  enterprises 
subject to the energy audit requirement.  

3.  Proportionality: How the EU should act 

3.1  Does the explanatory memorandum (and any impact assessment) accompanying the 

Commission’s proposal contain an adequate justification regarding the proportionality of the 
proposal and a statement allowing appraisal of the compliance of the proposal with the 
principle of proportionality? 

Based  on  the  accompanying  Impact  Assessment  and 
in  accordance  with  the  principle  of 
proportionality, overall the proposed modifications do not  go beyond what  is necessary to achieve 
the objectives to reach the higher energy efficiency ambition in view of the increased climate target 
for 2030.  
As  regards  the  energy  efficiency  targets,  the  amendments  are  proportional  to  the  required  EU 
ambition  in  line  with  the  increased  climate  target  of  at  least  55%  GHG  emissions  reduction  as 
proposed  by  the  Climate  Target  Plan.  Several  amendments  set  specific  targets  and  obligations  for 
public administrations to achieve energy savings in certain areas – public sector and energy poverty, 

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which will be overall proportionate. Regarding the [energy savings obligation for the] public sector, 
public bodies are defined in the Public Procurement Directive 2014/24/EU (contracting authorities). 
[Member States would need to establish a database with public bodies, including their annual energy 
consumption. The proposed energy consumption reduction obligation leaves significant flexibility to 
Member States as to where and how energy savings could be achieved. Given the cost-benefits that 
would  accrue  from  implementing  savings  measures,  this  effort  is  considered  effective  and  not 
excessive. ] 
The  Proposal  also  considers  the  Energy  Efficiency  Directive´s  aim  to  address  distributional  impacts 
from a possible extension of the ETS. Setting definitions and obligations notably in relation to heating 
and  cooling  would  be  proportionate  to  the  additional  energy  savings  and  synergies  with  the other 
instruments  that  could  be  achieved  in  this  sector.  Proportionality  of  additional  monitoring  and 
reporting requirements depend on the balance between increased cost and savings achieved due to 
a better understanding of the impacts of relevant measures. 
The level of constraint imposed is thus proportionate to the objective. 

3.2 Based on the answers to the questions below and information available from any impact 
assessment, the explanatory memorandum or other sources, is the proposed action an 
appropriate way to achieve the intended objectives? 

(a)  Is the initiative limited to those aspects that Member States cannot achieve satisfactorily on 

their own, and where the Union can do better? 

Yes.  The  problem  to  be  tackled  is  not  limited  to  individual  Member  States  but  is  Union-wide. 
Strengthening the efforts  to achieve  higher Union’s energy efficiency targets, to ultimately achieve 
climate neutrality, cannot be achieved by action at national level alone. The measures proposed are a 
mix of Union level measures and action at Member State level which is considered proportionate and 
cost-effective. The individual situations of Member States have been taken into account to the extent 
possible. The costs are commensurate with the objectives. 

(b)  Is the form of Union action (choice of instrument) justified, as simple as possible, and 

coherent with the satisfactory achievement of, and ensuring compliance with the objectives 
pursued (e.g. choice between regulation, (framework) directive, recommendation, or 
alternative regulatory methods such as co-legislation, etc.)? 

The instrument chosen is a Directive that has to be implemented by the Member States. A Directive 
is the appropriate instrument and it is consistent with the objectives pursued, as it clearly defines the 
EU objectives to be reached, while leaving sufficient flexibility to Member States to implement it in 
the way that suits their particular national circumstances.  

The proposal for  a recast of the Directive combines a codification and an amendment of the Energy 
Efficiency  Directive,  which  has  been  amended  previously  in  2018.  The  recasting  technique 
contributes to simplifying Union legislation by allowing the adoption of a single legislative text which 
simultaneously  makes  the  desired  amendment,  codifies  that  amendment  and  previous  ones  the 
unchanged  provisions  of  the  earlier  act,  and  repeals  that  act  and  previous  amending  acts.  The 
purpose  is  thus  simplifying  and  clarifying  the  law  of  the  Union  so  as  to  make  it  clearer  and  more 
accessible to citizens, thus giving them new opportunities and the chance to make use of the specific 
rights it gives them.  

(c)  Does the Union action leave as much scope for national decision as possible while achieving 
satisfactorily the objectives set? (e.g. is it possible to limit the European action to minimum 
standards or use a less stringent policy instrument og approach?) 

8 

 
 
Although Member States are left as much freedom as possible, some measures are enhanced, given 
the critical importance of reducing energy consumption in order to reduce GHG emissions and tackle 
the climate change emergency,. 

(d)  Does the initiative create financial or administrative cost for the Union, national 

governments, regional or local authorities, economic operators or citizens? Are these costs 
commensurate with the objective to be achieved? 

The impacts related to the costs of the initiative have been analysed where appropriate and possible 
(section 6 of the Impact Assessment). More detail is provided in Annex D and a summary of the costs 
and benefits is shown in Annex C (section xx The analysis shows that the costs are commensurate 
with the objectives. 

(e)  While respecting the Union law, have special circumstances applying in individual Member 

States been taken into account? 

As indicated above, the proposal takes into account the Member States’ national circumstances. This 
is  in  particular  evident  in  relation  to  national  indicative  contributions  to  achieve  the  EU  energy 
efficiency target. Member States will be able to set their national contributions on basis of formula 
considering objective criteria relevant to ensure fairness and balances approach in terms of efforts to 
achieve the EU target collectively across the Union.   

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