In May 2022, the Commission presented its proposal regarding REPowerEU. The purpose of the plan, which is based on the "Fit for 55" parcel , is to change Europe’s energy system by eliminating the EU’s dependency on Russian fossil fuels as well as to tackle the climate crisis. The European Parliament and the Council have now adopted their positions in order to incorporate the plan into the national recovery and resilience plans.
The proposed measures for the plan include, inter alia, collective procurement of gas, liquefied natural gas and hydrogen gas through the EU’s energy platform for those Member States which want to participate, faster permitting for renewable energy and increased production of biomethane. In a previous article, Vinge has explained the measures within the REPowerEU plan which the Commission proposed in the spring of this year.
The existing regulation governing the recovery and resilience facility (Recovery and Resilience Facility – the “RRF Regulation”) constitutes the core of the implementation of the REPowerEU plan since the Recovery and Resilience Facility will finance large parts of the plan. Accordingly, the Commission has presented proposals regarding amendments to the RRF Regulation which entail that the member states will include so-called “REPowerEU Chapters” in their recovery and resilience plans (“RRP”) within the scope of NextGenerationEU. Both the European Parliament and the Council have now adopted their respective positions regarding the amendments which the Commission has proposed to the RRF Regulation.
On 10 November 2022, the European Parliament agreed that REPowerEU measures shall be included in the national recovery plans in order to support independence from Russian fossil fuels and expedite the green transformation. Primarily, the Parliament proposes the following amendments to the Commission’s proposals:
Link to the Parliament’s position.
On 4 October 2022, the Council agreed on how to finance REPowerEU, and also the financial sources which shall be utilised for the additional EUR 20 billion in order to support the grant for the RRF’s budget, as has been proposed by the Commission. The Council’s main amendment proposals are set out below:
Link to the Council’s position.
Now that both the European Parliament and the Council have adopted their positions, negotiations will be commenced between the Parliament, the Council and the Commission, within the so-called trilogy. The purpose is to reach an agreement as soon as possible.
The REPowerEU plan is extensive and has been met with both positive and negative reactions. Among other things, it is maintained that if the energy transition can be accelerated correctly, the plan can lead to economic benefits for the whole of Europe, make enterprises more competitive and decrease the emissions of greenhouse gases. However, certain concerns have also been expressed regarding the redistribution of sources in order to finance the REPowerEU plan, which may result in insufficient financing for other areas. The financing of the plan is of course a core issue, and it remains to be seen which financial sources will ultimately be used. The Parliament and the Council have adopted positions which differ, both inter se as well as in relation to the Commission’s original proposals.