The European Commission proposed the so-called “Fit-for-55” package, a series of legislative proposals to deliver the EU’s increased climate target of 55% emissions reduction by 2030. The package includes a higher renewables target and new rules to support the expansion of renewables. It also further strengthens the Emissions Trading System to drive the electrification of the whole energy system.
The Fit-for-55 package comprises changes to over 10 pieces of legislation, including the Renewable Energy Directive, the Energy Tax Directive, the Alternative Fuels Infrastructure Directive, and the EU Emissions Trading System, among others.
Crucially, the European Commission proposed to raise the EU’s renewable energy target from 32% to 40% by 2030.
The revision of the EU Renewable Energy Directive included improvements on cross-border renewable energy projects, the planning of offshore wind per sea basin, the consideration for combining offshore wind with interconnectors across borders, and the facilitation of corporate Power Purchase Agreements (PPAs).
The entire legislative package must go through negotiations between the European Commission, Member States, and the European Parliament during 2022 and possibly 2023.