The Council of the European Union voted on 25 July 2023 to adopt the final text of the recast of the Energy Efficiency Directive. This was the last step in the decision-making process and is the right time to consider the implications of the latest changes in the EU legislation.

What will EU Member States need to do to meet their new energy savings obligations under the Energy Efficiency Directive (EED)?

1. More ambitious energy efficiency policies.
2. Target action amongst households in energy poverty.
3. Stop supporting fossil fuel combustion technologies like gas boilers.

And how will the Fit for 55 package affect Member State implementation?

1. Most new legislation complements the EED; energy efficiency helps to meet higher climate change and renewable energy targets, and lowers the price of Emissions Trading Scheme (ETS) allowances.
2. More ambitious eco design and new vehicle CO2 standards reduce some of the additional energy savings available to national policy.
3. Some new legislation has both effects. The ETS increases energy prices, simultaneously supporting previously uneconomic energy efficiency actions and driving autonomous energy efficiency improvements amongst the most cost-effective actions.

This report, part of the ENSMOV Plus project, gives a bird’s eye view of all the changes that affect the implementation of the EED energy savings obligation. More to come on this topic from once the EPBD is negotiated.