Letter to Energy Ministers on ambitious Energy Union Governance

Climate action

This letter was sent ahead of the High-level Conference on Energy ‘Europe’s Future Electricity Market’

Dear Minister,

Next week you will travel to Tallinn, Estonia to discuss amongst several other issues, the proposed
Regulation for Energy Union Governance.

The proposed centralisation of climate and energy policy planning and reporting obligations is an
opportunity to achieve better policy integration and track progress of implementation. This in turn
can support increased climate ambition and a faster energy transition, if the legislation is done right.

Key questions for the discussions on the Governance regulation is how the ambition of the 2030
targets can be safeguarded, and what measures and mechanisms need to be in place in case there is
a risk of not meeting the EU level targets.

Firstly, CAN Europe believes that national binding targets for renewable energy and energy
efficiency would be the most favourable option to ensure there is no ambition or delivery gap, to
arrive at a fair and balanced regulation, to support the EU and its Member States in achieving its
Energy Union objectives and to provide certainty to investors in your country. With the Paris
Agreement requiring an overhaul of all EU climate and energy policies, it is not only legitimate, but
also necessary for the Council to re-consider and revise upwards the position that was agreed by the
European Council in 2014.

The rapid process that the EU underwent to ratify the Paris Agreement is an excellent example that
the EU institutions and its leaders can push for new initiatives and rapid decision-making when
needed. We therefore call on you to support national binding targets, or if no agreement is found
now, to at least support a safeguard in the Governance regulation that allows binding national
targets to be introduced at a later stage.

Secondly, CAN Europe welcomes that the proposed regulation contains a requirement for Member
States to follow, for the deployment of renewable energy and energy efficiency, linear trajectories
between 2021-2030. These national linear trajectories are a necessity for Member States and the EU
as a whole to know if they are on track to meet the 2030 targets and to take action in due time in
case there is a gap. Furthermore, it is clear that the EU will have to do more than currently planned if
it is to live up to its commitments to the Paris Agreement.

Lastly, CAN Europe further suggests that the Governance regulation should be linked to the EU
budget by establishing conditionalities which incentivise higher climate and clean energy ambitions.
This provision is crucial to align investments needed for achieving the specific targets with financing
commitments. Such targeted use of EU funds will thus increase the European added value of EU
financial support on national level. It will also provide for long-term planning and investment
certainty which private investors seek. We therefore call on you to support a stronger link to the EU
budget within the Governance framework.

We hope these thoughts are useful for your assessment of the critical issues concerning the
Governance regulation and for your discussions during the upcoming informal Energy Council.

Your sincerely,

Wendel Trio,
Director, Climate Action Network Europe