New proposals for more energy efficiency, increased carbon removals and a framework to decarbonize the gas market

The proposals offer concrete rules for the following areas:

• Boosting renovation and decarbonisation of buildings
• Removing, recycling and sustainably storing carbon
• A new EU framework to decarbonise gas markets, promote hydrogen and reduce methane emissions

“Almost exactly two years ago, President von der Leyen announced the European Green Deal and our commitment to climate neutrality. Today, we are turning that strategy into concrete rules for some of the last remaining areas of the energy sector – including some of the most difficult,” said Commissioner Kadri Simson presenting the proposals.

A new EU framework to decarbonise gas markets, promote hydrogen and reduce methane emissions

The European Union needs to decarbonise the energy it consumes to reduce greenhouse gas emissions by at least 55% by 2030 and become climate-neutral by 2050.

The proposals presented by the European Commission on 15 December create the conditions for a shift from fossil natural gas to renewable and low-carbon gases, in particular biomethane and hydrogen, and strengthen the resilience of the gas system. One of the main aims is to establish a market for hydrogen, create the right environment for investment, and enable the development of dedicated infrastructure, including for trade with third countries. A new governance structure will be created to promote a dedicated hydrogen infrastructure, cross-border coordination and interconnector network construction, and elaborate on specific technical rules.

The new rules will make it easier for renewable and low-carbon gases to access the existing gas grid, by removing tariffs for cross-border interconnections and lowering tariffs at injection points.

In order to avoid locking Europe in with fossil natural gas and to make more space for clean gases in the European gas market, the Commission proposes that long-term contracts for unabated fossil natural gas should not be extended beyond 2049.  

Another priority of the package is consumer empowerment and protection. Consumers should be able to choose renewable and low carbon gases over fossil fuels.

As promised in the Communication and Toolbox on Energy Prices of 13 October, and as requested by Member States, the Commission proposed to improve the resilience of the gas system and strengthen the existing security of supply provisions. In case of shortages, no household in Europe will be left alone.

With a first-ever EU legislative proposal on methane emissions reduction in the energy sector, the Commission will require the oil, gas and coal sectors to measure, report and verify methane emissions, and proposes strict rules to detect and repair methane leaks and to limit venting and flaring. It also puts forward global monitoring tools ensuring transparency of methane emissions from imports of oil, gas and coal into the EU, which will allow the Commission to consider further actions in the future.

With respect to the methane emissions of the EU's energy imports, the Commission proposes a two-step approach. First, importers of fossil fuels will be required to submit information about how their suppliers perform measurement, reporting and verification of their emissions and how they mitigate those emissions. The Commission will establish two transparency tools that will show the performance and reduction efforts of countries and energy companies across the globe in curbing their methane emissions.

As a second step, to tackle effectively emissions of imported fossil fuels along the supply chain to Europe, the Commission will engage in a diplomatic dialogue with international partners and review the methane regulation by 2025 with a view to introducing more stringent measures on fossil fuels imports once all data is available.

Boosting renovation and decarbonisation of buildings

This proposal will facilitate the renovation of homes, schools, hospitals, offices and other buildings across Europe to reduce greenhouse gas emissions and energy bills, improving quality of life for millions of Europeans. The revision of the energy performance of buildings directive translates the Commission's Renovation Wave Strategy into concrete legislative action.

The Commission proposes that as of 2030, all new buildings must be zero-emission.

Removing, recycling and sustainably storing carbon

Finally, the Commission adopted on 15 December a Communication on Sustainable Carbon Cycles, setting out how to increase removals of carbon from the atmosphere. To balance out the impacts of our CO2 emissions, the EU will need to drastically reduce its reliance on fossil carbon, upscale carbon farming to store more carbon in nature, and promote industrial solutions to sustainably and verifiably remove and recycle carbon. Removing and storing more carbon, from the atmosphere, oceans and coastal wetlands, is essential to achieve the EU's legally binding commitment to become climate neutral by 2050.

More information

Commission proposes new EU framework to decarbonise gas markets, promote hydrogen and reduce methane emissions (press release by the European Commission, 15/12/2021)

European Green Deal: Commission proposes to boost renovation and decarbonisation of buildings (press release by the European Commission, 15/12/2021)

European Green Deal: Commission proposals to remove, recycle and sustainably store carbon (press release by the European Commission, 15/12/2021)