An agreement has been reached between the European Parliament, the European Commission and the European Council on what will be the energy transition of the Old Continent over the next ten years and on the regulations that will govern it. This is a compromise reached between European governments, representatives of European institutions and part of civil society within the framework of the "Clean energy for all Europeans" package, presented in November 2016. The agreement means that two of the eight regulatory proposals contained in the package have been favourably received by legislators. The bar is now being raised, despite the previous plan providing for only 27 per cent of energy from renewables. The new proposed target is to reach a binding share of 32 per cent renewable energy by 2030, with a review clause in 2023. This means that one third of total energy demand will need to come from renewable sources, including transport.

The new regulatory framework follows the historic 20-20-20 package and comes after the new package of measures on energy efficiency was approved on 14 May. According to Commissioner for Climate Action and Energy Miguel Arias Cañete, this is "a true triumph of our efforts to unlock the true potential of Europe's clean energy transition. The new European agreement will help us meet the targets of the Paris Agreement and will translate into more jobs, lower energy costs for consumers and fewer energy imports."

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Greater freedom for European citizens to produce and consume energy from renewables

One of the key points of the new agreement, as explained by Greenpeace, is that it "guarantees European citizens, local authorities, small business owners and cooperatives the right to produce, consume, store and sell self-generated renewable energy, without being subject to tax penalties or excessive bureaucratic burdens." This is what happened, for example, in Spain, with the so-called "solar tax", which requires facilities producing for self-consumption in excess of 10 kW to pay additional taxes. But the agreement should prevent European governments from introducing regulations that operate retroactively on tax relief and incentives, as happened in Italy and in the United Kingdom.

What is more, for the first time Europe recognises the active role of citizens and energy communities in the energy transition, effectively opening the door to self-consumption. According to a 2016 report drawn up by the environmental research institute Ce Delft on behalf of Greenpeace, the European Renewable Energies Federation (Eref), Friends of the Earth Europe and REScoop.eu, half of European Union citizens could produce their own electricity independently and from renewable sources by 2050, thereby meeting 45 per cent of EU energy demand.

"This agreement recognises for the first time the right of citizens to participate in the energy revolution in Europe and breaks down some major barriers that are holding back the fight against climate change," says Sebastian Mang, Greenpeace EU energy adviser, in a statement. "All of this gives people and communities greater control over the energy they use, enabling them to participate in the growth of renewables and to challenge the energy giants across the continent."

More renewables in transport with the European agreement

The agreement sets the target of 14 per cent renewables for the transport sector as well, and 3.5 per cent for second-generation biofuels — that is, those not derived from food crops — following the decision to phase out the use of palm oil for biofuel production by 2030. A further step towards reducing CO2 emissions by at least 40 per cent by 2030, and towards compliance with the Paris Agreement on climate.