Council agrees on mechanism to limit excessive gas prices

EU energy ministers reached a political agreement on a Council regulation that sets a market correction mechanism to protect citizens and the economy against excessively high prices.

The regulation aims to limit episodes of excessive gas prices in the EU that do not reflect world market prices, while ensuring security of energy supply and the stability of financial markets.

Ministers formally adopted a Council regulation on enhancing solidarity through better coordination of gas purchases, exchanges of gas across borders and reliable price benchmarks. The content of this regulation was agreed in the Energy Council on 24 November 2022.

Ministers reached a political agreement on a Council regulation laying down a temporary framework to accelerate the deployment of renewable energy. Most of the content of this regulation was agreed in the Energy Council on 24 November 2022. Ministers today added a provision to fast track and simplify the roll out of grids.

EU energy ministers reached a general approach on a proposal on methane emissions reduction in the energy sector.

The general approach would require the oil, gas and coal sectors to measure, report and verify methane emissions. It would propose strict rules to detect and repair methane leaks and to limit venting and flaring to narrow cases.

This proposal is part of the second batch of proposals under the ‘Fit for 55’ package that aims to align EU climate and energy laws with the European Climate Law’s 2030 emission reduction targets.

First high-level roundtable on joint gas purchasing

REPowerEU energy

The Council adopted a general approach on the proposal for a REPowerEU directive that brings targeted amendments to EU legislation on renewable energy. Member states will design dedicated ‘go-to areas’ for renewables with shortened and simplified permitting processes in areas with lower environmental risks.

The Council confirmed the target of the share of energy from renewable sources in the Union’s gross final consumption of energy, of at least 40% in 2030, as in its general approach on the renewable energy directive adopted in June 2022.

This proposal is part of the second batch of proposals under the ‘Fit for 55’ package that aims to align EU climate and energy laws with the European Climate Law’s 2030 targets.

Gas package

The presidency presented a progress report on the gas package, which includes a proposal for a directive and a proposal for a regulation on common internal market rules for renewable and natural gases and hydrogen.

The proposals seek to facilitate the penetration of renewable and low-carbon gases into the energy system, enabling a shift away from natural gas and to allow for these new gases to play their role towards the goal of EU climate neutrality in 2050.

The Council took note of the progress report.

Refilling gas storage for next winter

Other business

Under any other business, the presidency provided information on current legislative proposals, including the revision of the energy efficiency directive and the renewable energy directive, that are currently being negotiated in trilogues between the Council and the European Parliament. The presidency debriefed ministers on the SET Plan Conference and the European Nuclear Energy Forum (ENEF).

The Commission informed ministers about the revision of the electricity market design. The Commission also gave information on recent developments in the field of external energy relations.
Hungary presented information on the Janaf oil pipeline. Luxembourg informed ministers on short-term energy savings potential in data centres.

Sweden presented the work programme of its incoming presidency.