BETA


2021/0424(COD) Gas and hydrogen markets regulation

Progress: Awaiting Council's 1st reading position

RoleCommitteeRapporteurShadows
Lead ITRE BUZEK Jerzy (icon: EPP EPP) TOIA Patrizia (icon: S&D S&D), GROŠELJ Klemen (icon: Renew Renew), TOUSSAINT Marie (icon: Verts/ALE Verts/ALE), BORCHIA Paolo (icon: ID ID), KRASNODĘBSKI Zdzisław (icon: ECR ECR), PEREIRA Sandra (icon: GUE/NGL GUE/NGL)
Committee Opinion BUDG
Committee Opinion ECON
Committee Opinion ENVI
Committee Opinion IMCO
Committee Opinion AGRI LINS Norbert (icon: EPP EPP)
Committee Recast Technique Opinion JURI AUBRY Manon (icon: GUE/NGL GUE/NGL)
Lead committee dossier:
Legal Basis:
RoP 110, TFEU 194-p2

Events

2024/04/11
   EP - Debate in Parliament
2024/04/11
   EP - Decision by Parliament, 1st reading
Details

The European Parliament adopted by 447 votes to 90, with 54 abstentions, a legislative resolution on the proposal for a regulation of the European Parliament and of the Council on the internal markets for renewable and natural gases and for hydrogen (recast).

The position adopted by the European Parliament at first reading under the ordinary legislative procedure is as follows:

Subject matter

The proposed Regulation aims to:

- facilitate the penetration of renewable gas and low-carbon gas and hydrogen into the energy system , enabling a shift away from fossil gas, and to allow renewable gas and low-carbon gas and hydrogen to play an important role in achieving the Union’s 2030 climate objectives and climate-neutrality by 2050;

- set up a regulatory framework which enables and incentivises all market participants to shift away from fossil gas and plan their activities to avoid lock-in effects and aims to ensure a gradual and timely phase-out of fossil gas, in particular, in all relevant industrial sectors and for heating purposes.

Upscaling of renewable gas and low-carbon gas in coal and carbon-intensive regions

The Commission should support and encourage the penetration of renewable gas and low-carbon gas, in particular hydrogen and biomethane, into the Union energy system, in particular in coal and carbon-intensive regions, with the aim of increasing the share of renewable gas in particular in industrial processes, district heating and energy storage and thereby accelerate the phase out of solid fossil fuels in industrial and district heating sectors. The Commission should also support the conversion of fossil fuels to renewable and low-carbon hydrogen and biomethane, as well as the creation of a hydrogen-ready workforce.

Third party access services for transmission system operators

Member States should exceptionally be able to take proportionate measures to limit temporarily up-front bidding for capacity by any single network user at entry points and at LNG terminals for deliveries from Russia and Belarus , where necessary to protect their essential security interests and those of the Union, taking into account also the need to ensure security of supply in the Union.

Taking into account the need to ensure the security of supply of the Union, measures taken by Member States may aim to diversify natural gas supplies with a view to phasing out dependence on Russian natural gas, where it can be demonstrated that such measures are necessary to protect their essential security interests and those of the Union.

Mechanism for demand aggregation and the joint purchasing of natural gas

The Commission should establish a mechanism for voluntary demand aggregation and the joint purchasing of natural gas. It is an important instrument to organise the diversification of natural gas supplies and phasing out of the dependency on Russian natural gas in many Member States.

The mechanism for demand aggregation and the joint purchasing of natural gas established under this Regulation should include a number of steps, starting with natural gas undertakings or undertakings consuming natural gas established in the Union being enabled to aggregate their natural gas demand through a service provider , contracted by the Commission.

Participation in the mechanism for demand aggregation and the joint purchasing of natural gas should be open to natural gas undertakings and undertakings consuming natural gas established in the Union on a non-discriminatory basis. Such undertakings should be precluded from participating as suppliers, producers and purchasers, if they are subject to Union restrictive measures , consisting of a prohibition to make available or transfer funds or economic resources or to provide financing or financial assistance to them directly or indirectly, or of an asset freeze.

Natural gas undertakings and undertakings consuming natural gas participating in demand aggregation may, on a transparent basis, coordinate elements of the conditions of the purchase contract or use joint purchase contracts in order to achieve better conditions with their suppliers, provided that they comply with Union law, including Union competition law.

In order to protect the essential security interests of the Union or of a Member State, in the interests of safeguarding security of supply, and to allow the effective and swift phase out of natural gas dependence, natural gas supplies originating in, and LNG supplies from LNG facilities located in, the Russian Federation or Belarus should not be offered through the mechanism for demand aggregation and the joint purchasing of natural gas until 31 December 2025 . From 1 January 2026, the Commission should be able to decide to temporarily exclude natural gas supplies originating in, or LNG supplies from LNG facilities located in, the Russian Federation or Belarus for periods of up to one year, which may be renewed if justified, where that is necessary to protect the essential security interests or security of supply of the Union or of a Member State.

Mechanism to support the market development of hydrogen

The Commission may establish a mechanism to support the market development of hydrogen to be implemented under the activities of the European Hydrogen Bank. That voluntary mechanism may be in place until 31 December 2029 .

The Commission may enter into a contract with the service provider concerned, applying by analogy the same procedure as for the demand aggregation and joint purchasing mechanism for natural gas. Participation in the mechanism to support the market development of hydrogen should be open to hydrogen undertakings and undertakings consuming hydrogen established in the Union on a non-discriminatory basis. These undertakings will be excluded from participation as suppliers and buyers if they are subject to EU restrictive measures.

Prior to the expiry of the mechanism to support the market development of hydrogen and not later than 31 December 2029, the Commission should submit a report to the European Parliament and to the Council assessing the performance of that mechanism and, in particular, its contribution to the development of the hydrogen market in the Union. On the basis of such an assessment, the Commission should be able to submit a legislative proposal to develop a mechanism for voluntary demand aggregation and the joint purchasing of hydrogen.

Union-level integrated network planning

To facilitate energy system integration, harness synergies and support overall system efficiency, the ENNOH, the ENTSO for Electricity and the ENTSO for Gas should cooperate closely in Union-level integrated network planning. That cooperation should cover the preparation of the joint scenarios for electricity, hydrogen and natural gas . During the transitional period until 1 January 2027, the ENTSO for Gas should develop the 2026 Union-wide network development plan for hydrogen. To that end the ENTSO for Gas should fully involve hydrogen transmission network operators and the ENNOH as soon as the ENNOH is established. The 2026 Union-wide network development plan for hydrogen should consist of two separate chapters, one for hydrogen and one for natural gas. The ENNOH should develop the 2028 Union-wide network development plan for hydrogen in line with the Union-level integrated network planning.

Documents
2024/01/23
   EP - Approval in committee of the text agreed at 1st reading interinstitutional negotiations
Documents
2023/12/20
   CSL - Coreper letter confirming interinstitutional agreement
2023/12/20
   EP - Text agreed during interinstitutional negotiations
Documents
2023/03/15
   EP - Committee decision to enter into interinstitutional negotiations confirmed by plenary (Rule 71)
2023/03/13
   EP - Committee decision to enter into interinstitutional negotiations announced in plenary (Rule 71)
2023/02/16
   EP - Committee report tabled for plenary, 1st reading
Details

The Committee on Industry, Research and Energy adopted the report by Jerzy BUZEK (EPP, PL) on the proposal for a regulation of the European Parliament and of the Council on the internal markets for renewable and natural gases and for hydrogen (recast).

As a reminder, in line with the REpowerEU targets, by the end of 2030, Member States should ensure collectively at least 35 billion cubic meters of sustainable biomethane. This would be produced and injected into the natural gas system, annually, with the aim of replacing 20% of Russian natural gas imports with a sustainable, cheaper and locally produced alternative.

The committee responsible recommended that the European Parliament's position adopted at first reading under the ordinary legislative procedure should amend the proposal as follows:

Subject matter and scope

This Regulation:

- sets non-discriminatory rules for access conditions to natural gas and hydrogen systems taking into account the special characteristics of national and regional markets with a view to ensuring the proper functioning of the internal market in gas as well as to contribute to the long-term flexibility of the electricity system;

- encourages preventive measures reducing fossil gas demand through the implementation of the energy efficiency first principle leading to energy savings, increased direct electrification as part of a fully integrated energy system, and increased use of renewable sources of energy, and contributes to the prudent and rational use of natural resources and the achievement of the Union’s climate and energy targets; and

- facilitates the emergence of a well-functioning and transparent wholesale market with a high level of security of supply in gas and provides mechanisms to harmonise the network access rules for cross-border exchanges in gas.

Diversification of gas supplies obligation

To safeguard the security of energy supply and the essential security interests of the Union in line with the objectives of the REPowerEU Plan, the committee suggested that Member States should diversify their gas supplies and ensure that imports of natural gas as well as of renewable gas and low-carbon gas through pipelines and LNG terminals do not originate from the Russian Federation.

Upscaling of renewable gas and low-carbon gas in coal and carbon-intensive regions

The Commission should support and provide incentives to encourage the penetration of renewable gas and low-carbon gas, in particular hydrogen and biomethane, into the Union energy system, in particular in coal and carbon-intensive regions.

Mainstreaming biomethane in the gas system

According to Members, in order to support the sustainable production of biomethane to safeguard the security of gas supply in the Union and decrease dependence on fossil natural gas imports, Member States should, by 31 December 2030, ensure collectively that at least 35 bcm of sustainable biomethane that complies with Directive (EU) 2018/2001 is produced and injected into the natural gas system at the level of the transmission system operators or of the distribution system operators.

Enhanced purchasing scheme

Members proposed strengthening the joint gas purchasing scheme and making all gas contracts in the EU more transparent.

Tariff discounts

The report suggested that regulatory authorities should assess whether to offer support to lower grid connection costs and fees for renewable gas and low-carbon gas production facilities.

Management mechanism

The revised Regulation should ensure that excessive movements in prices within a trading day are prevented. The intra-day volatility management mechanism should be based on the observed market price at regular intervals. Price limits should be set up by trading venues taking into account the specificities of each relevant energy-related commodity derivative, the liquidity profile of the market for such derivative and its volatility profile.

ENTSOG

Members proposed to reform the European Network of Transmission System Operators for Gas (ENTSOG) to also cover Hydrogen Network Operators. The new ENTSOG&H would therefore also be responsible for the EU ten-year network development plan for gas and hydrogen networks. The development plan should include the modelling of the integrated network, scenario development, a European supply adequacy outlook, a climate impact assessment and an assessment of the resilience of the system.

Documents
2023/02/09
   EP - Vote in committee, 1st reading
2023/02/09
   EP - Committee decision to open interinstitutional negotiations with report adopted in committee
2023/02/02
   EP - Specific opinion
Documents
2022/12/20
   EP - Opinion on the recast technique
Documents
2022/10/12
   CofR - Committee of the Regions: opinion
Documents
2022/08/08
   IE_HOUSES-OF-OIREACHTAS - Contribution
Documents
2022/07/14
   EP - Amendments tabled in committee
Documents
2022/07/14
   EP - Amendments tabled in committee
Documents
2022/06/22
   EP - Committee draft report
Documents
2022/06/03
   EP - Specific opinion
Documents
2022/05/18
   ESC - Economic and Social Committee: opinion, report
Documents
2022/02/17
   EP - Committee referral announced in Parliament, 1st reading
2022/02/16
   EP - BUZEK Jerzy (EPP) appointed as rapporteur in ITRE
2022/02/02
   EP - LINS Norbert (EPP) appointed as rapporteur in AGRI
2021/12/15
   EC - Document attached to the procedure
Documents
2021/12/15
   EC - Document attached to the procedure
Documents
2021/12/15
   EC - Document attached to the procedure
2021/12/15
   EC - Document attached to the procedure
2021/12/15
   EC - Document attached to the procedure
2021/12/15
   EC - Legislative proposal published
Details

PURPOSE: to present an ambitious transition of the gas sector towards low-carbon and renewable gases by revising the internal markets for renewable and natural gases and for hydrogen.

PROPOSED ACT: Regulation of the European Parliament and of the Council.

ROLE OF THE EUROPEAN PARLIAMENT: the European Parliament decides in accordance with the ordinary legislative procedure and on an equal footing with the Council.

BACKGROUND: the European Green Deal puts the EU on a path to climate neutrality by 2050, which requires significantly higher shares of renewable energy sources in an integrated energy system. Currently, natural gas represents 95% of the gaseous fuels consumed in the EU and accounts for 25% of the EU’s total energy consumption. While the share of natural gas will decrease progressively, biomethane, synthetic methane and hydrogen are expected to become more relevant. However, these alternatives to natural gas face a number of regulatory barriers and are not covered by current energy security arrangements.

The present initiative, as well as the proposed directive on common rules for the internal markets in renewable and natural gases and in hydrogen, aim to revise existing EU legislation and create a new framework for an internal hydrogen market to achieve a cost efficient clean hydrogen economy.

CONTENT: this proposed Regulation sets non-discriminatory rules for access conditions to natural gas and hydrogen systems taking into account the special characteristics of national and regional markets with a view to ensuring the proper functioning of the internal market in gases. It facilitates the emergence of a well-functioning and transparent wholesale market with a high level of security of supply in gases and provides mechanisms to harmonise the network access rules for cross-border exchanges in gases.

Objectives

The revised proposal includes objectives such as the setting of harmonised principles for tariffs, or the methodologies underlying their calculation, for access to the natural gas network, the establishment of third-party access services and harmonised principles for capacity-allocation and congestion-management, the determination of transparency requirements, balancing rules and imbalance charges, and the facilitation of capacity trading.

Customer engagement

For new gases to play a full role in the energy transition, the retail market rules should empower customers to make renewable and low carbon choices. Moreover, to be able to make sustainable energy choices, customers need sufficient information on their energy consumption and origin, as well as efficient tools to participate in the market. With this in mind, the proposal lays down the rights for the consumer such as basic contractual rights, switching rights and fees, and rules on comparison tools, active customers, and citizen energy communities. It also contains provisions on billing, smart and conventional metering, and data management.

It also contains provisions on single points of contact, right to out-of-court dispute settlement, vulnerable customers, and retail markets.

Hydrogen infrastructure and hydrogen markets

The current regulatory framework for gaseous energy carriers does not address the deployment of hydrogen as an independent energy carrier via dedicated hydrogen networks. The creation of a regulatory framework at EU-level for dedicated hydrogen networks and markets would foster the integration and interconnection of national hydrogen markets and networks. Barriers also exist for the development of a cost-effective, cross-border hydrogen infrastructure and competitive hydrogen market, a prerequisite for the uptake of hydrogen production and consumption. The present proposal seeks to address all of these deficiencies.

Renewable and low-carbon gases in the existing gas infrastructure and markets

The new rules intend to facilitate the access of renewable and low-carbon gases to the existing gas grid, by removing tariffs for cross-border interconnections and lowering tariffs at injection points. They also create a certification system for low-carbon gases. This will ensure a level playing field in assessing the full greenhouse gas emissions footprint of different gases and allow Member States to effectively compare and consider them in their energy mix.

Network planning

The proposal foresees that the national network development plans should be based on a joint scenario for electricity, gas and hydrogen. It should be aligned with National Energy and Climate Plans, as well as EU-wide ten-year network development plan. Gas network operators have to include information on infrastructure that can be decommissioned or repurposed, and there will be separate hydrogen network development reporting to ensure that the construction of the hydrogen system is based on a realistic demand projection.

Security of supply and storage

To contribute to a timely response to energy crises at EU level, this proposal includes specific measures to improve cooperation and resilience, notably to ensure a more effective and coordinated use storage and operational solidarity arrangements. The measures are targeted to reinforce the resilience of the EU energy system against future shocks in a timely manner.

The measures proposed require Member States to explicitly make storages part of their security of supply risks assessments at regional level . The proposal also enables voluntary joint procurement by Member States to have strategic stocks, in line with the EU competition rules.

Measures were also introduced to improve the transparency and access to storages, address cybersecurity risks of gas and facilitate bilateral solidarity arrangements between Member States in case of crisis.

A new governance structure, called the ‘ European Network of Network Operators for Hydrogen ’ (ENNOH) will be created to promote the development of dedicated hydrogen infrastructure, cross-border coordination and the construction of an interconnection network.

2021/07/01
   EP - AUBRY Manon (GUE/NGL) appointed as rapporteur in JURI

Documents

  • Debate in Parliament: Debate in Parliament
  • Decision by Parliament, 1st reading: T9-0282/2024
  • Approval in committee of the text agreed at 1st reading interinstitutional negotiations: PE757.969
  • Coreper letter confirming interinstitutional agreement: GEDA/A/(2024)000012
  • Text agreed during interinstitutional negotiations: PE757.969
  • Committee report tabled for plenary, 1st reading: A9-0032/2023
  • Specific opinion: PE742.388
  • Opinion on the recast technique: PE740.527
  • Committee of the Regions: opinion: CDR1522/2022
  • Contribution: COM(2021)0804
  • Amendments tabled in committee: PE735.482
  • Amendments tabled in committee: PE735.483
  • Committee draft report: PE734.108
  • Specific opinion: PE719.661
  • Economic and Social Committee: opinion, report: CES6401/2021
  • Document attached to the procedure: SEC(2021)0431
  • Document attached to the procedure: SWD(2021)0455
  • Document attached to the procedure: EUR-Lex
  • Document attached to the procedure: SWD(2021)0456
  • Document attached to the procedure: EUR-Lex
  • Document attached to the procedure: SWD(2021)0457
  • Document attached to the procedure: EUR-Lex
  • Document attached to the procedure: SWD(2021)0458
  • Legislative proposal published: COM(2021)0804
  • Legislative proposal published: EUR-Lex
  • Document attached to the procedure: SEC(2021)0431
  • Document attached to the procedure: SWD(2021)0455
  • Document attached to the procedure: EUR-Lex SWD(2021)0456
  • Document attached to the procedure: EUR-Lex SWD(2021)0457
  • Document attached to the procedure: EUR-Lex SWD(2021)0458
  • Economic and Social Committee: opinion, report: CES6401/2021
  • Specific opinion: PE719.661
  • Committee draft report: PE734.108
  • Amendments tabled in committee: PE735.482
  • Amendments tabled in committee: PE735.483
  • Committee of the Regions: opinion: CDR1522/2022
  • Opinion on the recast technique: PE740.527
  • Specific opinion: PE742.388
  • Coreper letter confirming interinstitutional agreement: GEDA/A/(2024)000012
  • Text agreed during interinstitutional negotiations: PE757.969
  • Contribution: COM(2021)0804

Votes

A9-0032/2023 – Jerzy Buzek – Provisional agreement – Am 2 #

2024/04/11 Outcome: +: 447, -: 90, 0: 54
DE PL IT ES RO FR NL BG CZ BE PT SE AT LT FI EE SK DK LV SI HR LU MT IE EL CY HU
Total
85
48
58
50
18
64
26
13
20
21
21
21
17
10
13
7
13
13
8
6
5
6
4
12
13
3
16
icon: PPE PPE
146

Estonia PPE

For (1)

1

Denmark PPE

For (1)

1

Slovenia PPE

3

Croatia PPE

For (1)

1

Luxembourg PPE

2

Malta PPE

For (1)

1

Cyprus PPE

For (1)

1

Hungary PPE

Against (1)

1
icon: S&D S&D
116

Bulgaria S&D

2

Czechia S&D

For (1)

1

Belgium S&D

2

Lithuania S&D

2

Estonia S&D

2

Slovakia S&D

For (1)

1

Denmark S&D

2

Latvia S&D

2

Slovenia S&D

For (1)

1

Luxembourg S&D

For (1)

1

Greece S&D

1

Cyprus S&D

1
icon: Renew Renew
90

Poland Renew

1
3

Austria Renew

For (1)

1

Lithuania Renew

1

Finland Renew

2

Estonia Renew

3

Slovakia Renew

3

Latvia Renew

For (1)

1

Slovenia Renew

2

Luxembourg Renew

2

Ireland Renew

2

Greece Renew

1

Hungary Renew

2
icon: ECR ECR
61

Germany ECR

1

France ECR

For (1)

1

Netherlands ECR

Against (2)

Abstain (1)

5

Bulgaria ECR

2

Sweden ECR

Against (1)

3

Lithuania ECR

1

Finland ECR

Abstain (1)

2

Slovakia ECR

Against (1)

1

Latvia ECR

For (1)

1

Croatia ECR

1
icon: Verts/ALE Verts/ALE
61

Poland Verts/ALE

Abstain (1)

1

Italy Verts/ALE

Against (1)

Abstain (1)

2

Spain Verts/ALE

3

Netherlands Verts/ALE

2

Czechia Verts/ALE

3

Belgium Verts/ALE

Abstain (1)

3

Portugal Verts/ALE

Abstain (1)

1

Sweden Verts/ALE

3

Austria Verts/ALE

Abstain (2)

2

Lithuania Verts/ALE

For (1)

Abstain (1)

2

Finland Verts/ALE

3

Denmark Verts/ALE

2

Luxembourg Verts/ALE

Abstain (1)

1

Ireland Verts/ALE

Against (1)

1

Greece Verts/ALE

Abstain (1)

1
icon: ID ID
50

Czechia ID

Against (1)

1

Austria ID

Against (2)

2

Estonia ID

For (1)

1

Denmark ID

Against (1)

1
icon: NI NI
35

Germany NI

For (1)

Against (1)

2

Romania NI

For (1)

1

Netherlands NI

Against (1)

1

Belgium NI

For (1)

1

Latvia NI

Against (1)

1
icon: The Left The Left
32

Netherlands The Left

Against (1)

1

Czechia The Left

Against (1)

1

Belgium The Left

Against (1)

1

Sweden The Left

Against (1)

1

Finland The Left

Against (1)

1

Denmark The Left

Against (1)

1

Ireland The Left

For (1)

4

Greece The Left

1

Cyprus The Left

Against (1)

1
AmendmentsDossier
554 2021/0424(COD)
2022/07/15 ITRE 554 amendments...
source: 735.483

History

(these mark the time of scraping, not the official date of the change)

docs/15
date
2024-04-11T00:00:00
docs
url: https://www.europarl.europa.eu/doceo/document/TA-9-2024-0282_EN.html title: T9-0282/2024
type
Text adopted by Parliament, 1st reading/single reading
body
EP
events/9/summary
  • The European Parliament adopted by 447 votes to 90, with 54 abstentions, a legislative resolution on the proposal for a regulation of the European Parliament and of the Council on the internal markets for renewable and natural gases and for hydrogen (recast).
  • The position adopted by the European Parliament at first reading under the ordinary legislative procedure is as follows:
  • Subject matter
  • The proposed Regulation aims to:
  • - facilitate the penetration of renewable gas and low-carbon gas and hydrogen into the energy system , enabling a shift away from fossil gas, and to allow renewable gas and low-carbon gas and hydrogen to play an important role in achieving the Union’s 2030 climate objectives and climate-neutrality by 2050;
  • - set up a regulatory framework which enables and incentivises all market participants to shift away from fossil gas and plan their activities to avoid lock-in effects and aims to ensure a gradual and timely phase-out of fossil gas, in particular, in all relevant industrial sectors and for heating purposes.
  • Upscaling of renewable gas and low-carbon gas in coal and carbon-intensive regions
  • The Commission should support and encourage the penetration of renewable gas and low-carbon gas, in particular hydrogen and biomethane, into the Union energy system, in particular in coal and carbon-intensive regions, with the aim of increasing the share of renewable gas in particular in industrial processes, district heating and energy storage and thereby accelerate the phase out of solid fossil fuels in industrial and district heating sectors. The Commission should also support the conversion of fossil fuels to renewable and low-carbon hydrogen and biomethane, as well as the creation of a hydrogen-ready workforce.
  • Third party access services for transmission system operators
  • Member States should exceptionally be able to take proportionate measures to limit temporarily up-front bidding for capacity by any single network user at entry points and at LNG terminals for deliveries from Russia and Belarus , where necessary to protect their essential security interests and those of the Union, taking into account also the need to ensure security of supply in the Union.
  • Taking into account the need to ensure the security of supply of the Union, measures taken by Member States may aim to diversify natural gas supplies with a view to phasing out dependence on Russian natural gas, where it can be demonstrated that such measures are necessary to protect their essential security interests and those of the Union.
  • Mechanism for demand aggregation and the joint purchasing of natural gas
  • The Commission should establish a mechanism for voluntary demand aggregation and the joint purchasing of natural gas. It is an important instrument to organise the diversification of natural gas supplies and phasing out of the dependency on Russian natural gas in many Member States.
  • The mechanism for demand aggregation and the joint purchasing of natural gas established under this Regulation should include a number of steps, starting with natural gas undertakings or undertakings consuming natural gas established in the Union being enabled to aggregate their natural gas demand through a service provider , contracted by the Commission.
  • Participation in the mechanism for demand aggregation and the joint purchasing of natural gas should be open to natural gas undertakings and undertakings consuming natural gas established in the Union on a non-discriminatory basis. Such undertakings should be precluded from participating as suppliers, producers and purchasers, if they are subject to Union restrictive measures , consisting of a prohibition to make available or transfer funds or economic resources or to provide financing or financial assistance to them directly or indirectly, or of an asset freeze.
  • Natural gas undertakings and undertakings consuming natural gas participating in demand aggregation may, on a transparent basis, coordinate elements of the conditions of the purchase contract or use joint purchase contracts in order to achieve better conditions with their suppliers, provided that they comply with Union law, including Union competition law.
  • In order to protect the essential security interests of the Union or of a Member State, in the interests of safeguarding security of supply, and to allow the effective and swift phase out of natural gas dependence, natural gas supplies originating in, and LNG supplies from LNG facilities located in, the Russian Federation or Belarus should not be offered through the mechanism for demand aggregation and the joint purchasing of natural gas until 31 December 2025 . From 1 January 2026, the Commission should be able to decide to temporarily exclude natural gas supplies originating in, or LNG supplies from LNG facilities located in, the Russian Federation or Belarus for periods of up to one year, which may be renewed if justified, where that is necessary to protect the essential security interests or security of supply of the Union or of a Member State.
  • Mechanism to support the market development of hydrogen
  • The Commission may establish a mechanism to support the market development of hydrogen to be implemented under the activities of the European Hydrogen Bank. That voluntary mechanism may be in place until 31 December 2029 .
  • The Commission may enter into a contract with the service provider concerned, applying by analogy the same procedure as for the demand aggregation and joint purchasing mechanism for natural gas. Participation in the mechanism to support the market development of hydrogen should be open to hydrogen undertakings and undertakings consuming hydrogen established in the Union on a non-discriminatory basis. These undertakings will be excluded from participation as suppliers and buyers if they are subject to EU restrictive measures.
  • Prior to the expiry of the mechanism to support the market development of hydrogen and not later than 31 December 2029, the Commission should submit a report to the European Parliament and to the Council assessing the performance of that mechanism and, in particular, its contribution to the development of the hydrogen market in the Union. On the basis of such an assessment, the Commission should be able to submit a legislative proposal to develop a mechanism for voluntary demand aggregation and the joint purchasing of hydrogen.
  • Union-level integrated network planning
  • To facilitate energy system integration, harness synergies and support overall system efficiency, the ENNOH, the ENTSO for Electricity and the ENTSO for Gas should cooperate closely in Union-level integrated network planning. That cooperation should cover the preparation of the joint scenarios for electricity, hydrogen and natural gas . During the transitional period until 1 January 2027, the ENTSO for Gas should develop the 2026 Union-wide network development plan for hydrogen. To that end the ENTSO for Gas should fully involve hydrogen transmission network operators and the ENNOH as soon as the ENNOH is established. The 2026 Union-wide network development plan for hydrogen should consist of two separate chapters, one for hydrogen and one for natural gas. The ENNOH should develop the 2028 Union-wide network development plan for hydrogen in line with the Union-level integrated network planning.
docs/15
date
2024-04-11T00:00:00
docs
url: https://www.europarl.europa.eu/doceo/document/TA-9-2024-0282_EN.html title: T9-0282/2024
type
Text adopted by Parliament, 1st reading/single reading
body
EP
events/9/summary
  • The European Parliament adopted by 447 votes to 90, with 54 abstentions, a legislative resolution on the proposal for a regulation of the European Parliament and of the Council on the internal markets for renewable and natural gases and for hydrogen (recast).
  • The position adopted by the European Parliament at first reading under the ordinary legislative procedure is as follows:
  • Subject matter
  • The proposed Regulation aims to:
  • - facilitate the penetration of renewable gas and low-carbon gas and hydrogen into the energy system , enabling a shift away from fossil gas, and to allow renewable gas and low-carbon gas and hydrogen to play an important role in achieving the Union’s 2030 climate objectives and climate-neutrality by 2050;
  • - set up a regulatory framework which enables and incentivises all market participants to shift away from fossil gas and plan their activities to avoid lock-in effects and aims to ensure a gradual and timely phase-out of fossil gas, in particular, in all relevant industrial sectors and for heating purposes.
  • Upscaling of renewable gas and low-carbon gas in coal and carbon-intensive regions
  • The Commission should support and encourage the penetration of renewable gas and low-carbon gas, in particular hydrogen and biomethane, into the Union energy system, in particular in coal and carbon-intensive regions, with the aim of increasing the share of renewable gas in particular in industrial processes, district heating and energy storage and thereby accelerate the phase out of solid fossil fuels in industrial and district heating sectors. The Commission should also support the conversion of fossil fuels to renewable and low-carbon hydrogen and biomethane, as well as the creation of a hydrogen-ready workforce.
  • Third party access services for transmission system operators
  • Member States should exceptionally be able to take proportionate measures to limit temporarily up-front bidding for capacity by any single network user at entry points and at LNG terminals for deliveries from Russia and Belarus , where necessary to protect their essential security interests and those of the Union, taking into account also the need to ensure security of supply in the Union.
  • Taking into account the need to ensure the security of supply of the Union, measures taken by Member States may aim to diversify natural gas supplies with a view to phasing out dependence on Russian natural gas, where it can be demonstrated that such measures are necessary to protect their essential security interests and those of the Union.
  • Mechanism for demand aggregation and the joint purchasing of natural gas
  • The Commission should establish a mechanism for voluntary demand aggregation and the joint purchasing of natural gas. It is an important instrument to organise the diversification of natural gas supplies and phasing out of the dependency on Russian natural gas in many Member States.
  • The mechanism for demand aggregation and the joint purchasing of natural gas established under this Regulation should include a number of steps, starting with natural gas undertakings or undertakings consuming natural gas established in the Union being enabled to aggregate their natural gas demand through a service provider , contracted by the Commission.
  • Participation in the mechanism for demand aggregation and the joint purchasing of natural gas should be open to natural gas undertakings and undertakings consuming natural gas established in the Union on a non-discriminatory basis. Such undertakings should be precluded from participating as suppliers, producers and purchasers, if they are subject to Union restrictive measures , consisting of a prohibition to make available or transfer funds or economic resources or to provide financing or financial assistance to them directly or indirectly, or of an asset freeze.
  • Natural gas undertakings and undertakings consuming natural gas participating in demand aggregation may, on a transparent basis, coordinate elements of the conditions of the purchase contract or use joint purchase contracts in order to achieve better conditions with their suppliers, provided that they comply with Union law, including Union competition law.
  • In order to protect the essential security interests of the Union or of a Member State, in the interests of safeguarding security of supply, and to allow the effective and swift phase out of natural gas dependence, natural gas supplies originating in, and LNG supplies from LNG facilities located in, the Russian Federation or Belarus should not be offered through the mechanism for demand aggregation and the joint purchasing of natural gas until 31 December 2025 . From 1 January 2026, the Commission should be able to decide to temporarily exclude natural gas supplies originating in, or LNG supplies from LNG facilities located in, the Russian Federation or Belarus for periods of up to one year, which may be renewed if justified, where that is necessary to protect the essential security interests or security of supply of the Union or of a Member State.
  • Mechanism to support the market development of hydrogen
  • The Commission may establish a mechanism to support the market development of hydrogen to be implemented under the activities of the European Hydrogen Bank. That voluntary mechanism may be in place until 31 December 2029 .
  • The Commission may enter into a contract with the service provider concerned, applying by analogy the same procedure as for the demand aggregation and joint purchasing mechanism for natural gas. Participation in the mechanism to support the market development of hydrogen should be open to hydrogen undertakings and undertakings consuming hydrogen established in the Union on a non-discriminatory basis. These undertakings will be excluded from participation as suppliers and buyers if they are subject to EU restrictive measures.
  • Prior to the expiry of the mechanism to support the market development of hydrogen and not later than 31 December 2029, the Commission should submit a report to the European Parliament and to the Council assessing the performance of that mechanism and, in particular, its contribution to the development of the hydrogen market in the Union. On the basis of such an assessment, the Commission should be able to submit a legislative proposal to develop a mechanism for voluntary demand aggregation and the joint purchasing of hydrogen.
  • Union-level integrated network planning
  • To facilitate energy system integration, harness synergies and support overall system efficiency, the ENNOH, the ENTSO for Electricity and the ENTSO for Gas should cooperate closely in Union-level integrated network planning. That cooperation should cover the preparation of the joint scenarios for electricity, hydrogen and natural gas . During the transitional period until 1 January 2027, the ENTSO for Gas should develop the 2026 Union-wide network development plan for hydrogen. To that end the ENTSO for Gas should fully involve hydrogen transmission network operators and the ENNOH as soon as the ENNOH is established. The 2026 Union-wide network development plan for hydrogen should consist of two separate chapters, one for hydrogen and one for natural gas. The ENNOH should develop the 2028 Union-wide network development plan for hydrogen in line with the Union-level integrated network planning.
docs/15
date
2024-04-11T00:00:00
docs
url: https://www.europarl.europa.eu/doceo/document/TA-9-2024-0282_EN.html title: T9-0282/2024
type
Text adopted by Parliament, 1st reading/single reading
body
EP
events/8
date
2024-04-11T00:00:00
type
Debate in Parliament
body
EP
docs
url: https://www.europarl.europa.eu/doceo/document/CRE-9-2024-04-11-TOC_EN.html title: Debate in Parliament
events/9
date
2024-04-11T00:00:00
type
Decision by Parliament, 1st reading
body
EP
docs
url: https://www.europarl.europa.eu/doceo/document/TA-9-2024-0282_EN.html title: T9-0282/2024
forecasts
  • date: 2024-04-10T00:00:00 title: Indicative plenary sitting date
procedure/stage_reached
Old
Awaiting Parliament's position in 1st reading
New
Awaiting Council's 1st reading position
docs/15
date
2024-04-11T00:00:00
docs
url: https://www.europarl.europa.eu/doceo/document/TA-9-2024-0282_EN.html title: T9-0282/2024
type
Text adopted by Parliament, 1st reading/single reading
body
EP
events/8
date
2024-04-11T00:00:00
type
Debate in Parliament
body
EP
docs
url: https://www.europarl.europa.eu/doceo/document/CRE-9-2024-04-11-TOC_EN.html title: Debate in Parliament
events/9
date
2024-04-11T00:00:00
type
Decision by Parliament, 1st reading
body
EP
docs
url: https://www.europarl.europa.eu/doceo/document/TA-9-2024-0282_EN.html title: T9-0282/2024
forecasts
  • date: 2024-04-10T00:00:00 title: Indicative plenary sitting date
procedure/stage_reached
Old
Awaiting Parliament's position in 1st reading
New
Awaiting Council's 1st reading position
events/8
date
2024-04-11T00:00:00
type
Debate in Parliament
body
EP
docs
url: https://www.europarl.europa.eu/doceo/document/CRE-9-2024-04-11-TOC_EN.html title: Debate in Parliament
forecasts
  • date: 2024-04-10T00:00:00 title: Indicative plenary sitting date
events/8
date
2024-04-11T00:00:00
type
Debate in Parliament
body
EP
forecasts
  • date: 2024-04-10T00:00:00 title: Indicative plenary sitting date
events/8
date
2024-04-11T00:00:00
type
Debate in Parliament
body
EP
forecasts/0
date
2024-04-11T00:00:00
title
Vote scheduled
forecasts/0
date
2024-04-10T00:00:00
title
Indicative plenary sitting date
forecasts/0/date
Old
2024-04-22T00:00:00
New
2024-04-10T00:00:00
docs/14
date
2023-12-20T00:00:00
docs
url: https://www.europarl.europa.eu/RegData/commissions/itre/inag/2023/12-20/ITRE_AG(2023)757969_EN.docx title: PE757.969
type
Text agreed during interinstitutional negotiations
body
EP
events/7/docs
  • url: https://www.europarl.europa.eu/RegData/commissions/itre/inag/2023/12-20/ITRE_AG(2023)757969_EN.docx title: PE757.969
forecasts/0/date
Old
2024-04-10T00:00:00
New
2024-04-22T00:00:00
events/7
date
2024-01-23T00:00:00
type
Approval in committee of the text agreed at 1st reading interinstitutional negotiations
body
EP
docs/13
date
2023-12-20T00:00:00
docs
title: GEDA/A/(2024)000012
type
Coreper letter confirming interinstitutional agreement
body
CSL
forecasts
  • date: 2024-04-10T00:00:00 title: Indicative plenary sitting date
docs/13/date
Old
2022-08-07T00:00:00
New
2022-08-08T00:00:00
docs/13/date
Old
2022-08-08T00:00:00
New
2022-08-07T00:00:00
docs/13/date
Old
2022-08-07T00:00:00
New
2022-08-08T00:00:00
docs/13/date
Old
2022-08-08T00:00:00
New
2022-08-07T00:00:00
docs/13/date
Old
2022-08-07T00:00:00
New
2022-08-08T00:00:00
docs/13/date
Old
2022-08-08T00:00:00
New
2022-08-07T00:00:00
docs/13/date
Old
2022-08-07T00:00:00
New
2022-08-08T00:00:00
events/6
date
2023-03-15T00:00:00
type
Committee decision to enter into interinstitutional negotiations confirmed by plenary (Rule 71)
body
EP
events/5
date
2023-03-13T00:00:00
type
Committee decision to enter into interinstitutional negotiations announced in plenary (Rule 71)
body
EP
docs/13
date
2023-02-16T00:00:00
docs
url: https://www.europarl.europa.eu/doceo/document/A-9-2023-0032_EN.html title: A9-0032/2023
type
Committee report tabled for plenary, 1st reading/single reading
body
EP
events/4/summary
  • The Committee on Industry, Research and Energy adopted the report by Jerzy BUZEK (EPP, PL) on the proposal for a regulation of the European Parliament and of the Council on the internal markets for renewable and natural gases and for hydrogen (recast).
  • As a reminder, in line with the REpowerEU targets, by the end of 2030, Member States should ensure collectively at least 35 billion cubic meters of sustainable biomethane. This would be produced and injected into the natural gas system, annually, with the aim of replacing 20% of Russian natural gas imports with a sustainable, cheaper and locally produced alternative.
  • The committee responsible recommended that the European Parliament's position adopted at first reading under the ordinary legislative procedure should amend the proposal as follows:
  • Subject matter and scope
  • This Regulation:
  • - sets non-discriminatory rules for access conditions to natural gas and hydrogen systems taking into account the special characteristics of national and regional markets with a view to ensuring the proper functioning of the internal market in gas as well as to contribute to the long-term flexibility of the electricity system;
  • - encourages preventive measures reducing fossil gas demand through the implementation of the energy efficiency first principle leading to energy savings, increased direct electrification as part of a fully integrated energy system, and increased use of renewable sources of energy, and contributes to the prudent and rational use of natural resources and the achievement of the Union’s climate and energy targets; and
  • - facilitates the emergence of a well-functioning and transparent wholesale market with a high level of security of supply in gas and provides mechanisms to harmonise the network access rules for cross-border exchanges in gas.
  • Diversification of gas supplies obligation
  • To safeguard the security of energy supply and the essential security interests of the Union in line with the objectives of the REPowerEU Plan, the committee suggested that Member States should diversify their gas supplies and ensure that imports of natural gas as well as of renewable gas and low-carbon gas through pipelines and LNG terminals do not originate from the Russian Federation.
  • Upscaling of renewable gas and low-carbon gas in coal and carbon-intensive regions
  • The Commission should support and provide incentives to encourage the penetration of renewable gas and low-carbon gas, in particular hydrogen and biomethane, into the Union energy system, in particular in coal and carbon-intensive regions.
  • Mainstreaming biomethane in the gas system
  • According to Members, in order to support the sustainable production of biomethane to safeguard the security of gas supply in the Union and decrease dependence on fossil natural gas imports, Member States should, by 31 December 2030, ensure collectively that at least 35 bcm of sustainable biomethane that complies with Directive (EU) 2018/2001 is produced and injected into the natural gas system at the level of the transmission system operators or of the distribution system operators.
  • Enhanced purchasing scheme
  • Members proposed strengthening the joint gas purchasing scheme and making all gas contracts in the EU more transparent.
  • Tariff discounts
  • The report suggested that regulatory authorities should assess whether to offer support to lower grid connection costs and fees for renewable gas and low-carbon gas production facilities.
  • Management mechanism
  • The revised Regulation should ensure that excessive movements in prices within a trading day are prevented. The intra-day volatility management mechanism should be based on the observed market price at regular intervals. Price limits should be set up by trading venues taking into account the specificities of each relevant energy-related commodity derivative, the liquidity profile of the market for such derivative and its volatility profile.
  • ENTSOG
  • Members proposed to reform the European Network of Transmission System Operators for Gas (ENTSOG) to also cover Hydrogen Network Operators. The new ENTSOG&H would therefore also be responsible for the EU ten-year network development plan for gas and hydrogen networks. The development plan should include the modelling of the integrated network, scenario development, a European supply adequacy outlook, a climate impact assessment and an assessment of the resilience of the system.
docs/5
date
2022-04-29T00:00:00
docs
url: http://www.europarl.europa.eu/RegData/docs_autres_institutions/parlements_nationaux/com/2021/0804/CZ_SENATE_AVIS-COM(2021)0804_EN.pdf title: PE731.660
type
Reasoned opinion
body
CZ_SENATE
docs/6
date
2022-04-29T00:00:00
docs
url: http://www.europarl.europa.eu/RegData/docs_autres_institutions/parlements_nationaux/com/2021/0804/CZ_CHAMBER_AVIS-COM(2021)0804_EN.pdf title: PE731.669
type
Reasoned opinion
body
CZ_CHAMBER
docs/15
date
2023-02-16T00:00:00
docs
url: https://www.europarl.europa.eu/doceo/document/A-9-2023-0032_EN.html title: A9-0032/2023
type
Committee report tabled for plenary, 1st reading/single reading
body
EP
events/4/docs
  • url: https://www.europarl.europa.eu/doceo/document/A-9-2023-0032_EN.html title: A9-0032/2023
procedure/Legislative priorities/0
title
Joint Declaration on EU legislative priorities for 2023 and 2024
url
https://oeil.secure.europarl.europa.eu/oeil/popups/thematicnote.do?id=41380&l=en
procedure/Legislative priorities/1
title
Joint Declaration on EU legislative priorities for 2023 and 2024
url
https://oeil.secure.europarl.europa.eu/oeil/popups/thematicnote.do?id=41380&l=en
procedure/Legislative priorities/1/title
Old
Joint Declaration on EU legislative priorities for 2023 and 2024
New
Joint Declaration 2023-24
procedure/Legislative priorities/0
title
Joint Declaration on EU legislative priorities for 2023 and 2024
url
https://oeil.secure.europarl.europa.eu/oeil/popups/thematicnote.do?id=41380&l=en
events/4
date
2023-02-16T00:00:00
type
Committee report tabled for plenary, 1st reading
body
EP
procedure/stage_reached
Old
Awaiting committee decision
New
Awaiting Parliament's position in 1st reading
events/3
date
2023-02-09T00:00:00
type
Committee decision to open interinstitutional negotiations with report adopted in committee
body
EP
events/2
date
2023-02-09T00:00:00
type
Vote in committee, 1st reading
body
EP
docs/14/docs/0/url
https://www.europarl.europa.eu/doceo/document/JURI-AL-742388_EN.html
docs/14
date
2023-02-02T00:00:00
docs
title: PE742.388
committee
JURI
type
Specific opinion
body
EP
docs/13
date
2022-12-20T00:00:00
docs
url: https://www.europarl.europa.eu/doceo/document/JURI-CM-740527_EN.html title: PE740.527
type
Opinion on the recast technique
body
EP
docs/0
date
2021-12-15T00:00:00
docs
summary
type
Legislative proposal
body
EC
docs/13
date
2022-08-08T00:00:00
docs
url: https://connectfolx.europarl.europa.eu/connefof/app/exp/COM(2021)0804 title: COM(2021)0804
type
Contribution
body
IE_HOUSES-OF-OIREACHTAS
docs/13/date
Old
2022-08-08T00:00:00
New
2022-08-07T00:00:00
docs/14
date
2022-08-08T00:00:00
docs
url: https://connectfolx.europarl.europa.eu/connefof/app/exp/COM(2021)0804 title: COM(2021)0804
type
Contribution
body
IE_HOUSES-OF-OIREACHTAS
events/0
date
2021-12-15T00:00:00
type
Legislative proposal published
body
EC
docs
summary
docs/0
date
2021-12-15T00:00:00
docs
summary
type
Legislative proposal
body
EC
docs/13
date
2022-08-07T00:00:00
docs
url: https://connectfolx.europarl.europa.eu/connefof/app/exp/COM(2021)0804 title: COM(2021)0804
type
Contribution
body
IE_HOUSES-OF-OIREACHTAS
docs/14
date
2022-08-07T00:00:00
docs
url: https://connectfolx.europarl.europa.eu/connefof/app/exp/COM(2021)0804 title: COM(2021)0804
type
Contribution
body
IE_HOUSES-OF-OIREACHTAS
docs/14/date
Old
2022-08-07T00:00:00
New
2022-08-08T00:00:00
events/0
date
2021-12-15T00:00:00
type
Legislative proposal published
body
EC
docs
summary
docs/12
date
2022-10-12T00:00:00
docs
url: https://dmsearch.cor.europa.eu/search/public?k=(documenttype:AC)(documentnumber:1522)(documentyear:2022)(documentlanguage:EN) title: CDR1522/2022
type
Committee of the Regions: opinion
body
CofR
docs/12
date
2022-08-07T00:00:00
docs
url: https://connectfolx.europarl.europa.eu/connefof/app/exp/COM(2021)0804 title: COM(2021)0804
type
Contribution
body
IE_HOUSES-OF-OIREACHTAS
docs/7
date
2022-05-18T00:00:00
docs
url: https://dmsearch.eesc.europa.eu/search/public?k=(documenttype:AC)(documentnumber:6401)(documentyear:2021)(documentlanguage:EN) title: CES6401/2021
type
Economic and Social Committee: opinion, report
body
ESC
docs/9/docs/0/url
https://www.europarl.europa.eu/doceo/document/ITRE-AM-735482_EN.html
docs/0
date
2021-12-15T00:00:00
docs
summary
type
Legislative proposal
body
EC
events/0
date
2021-12-15T00:00:00
type
Legislative proposal published
body
EC
docs
summary
docs/0
date
2021-12-15T00:00:00
docs
summary
type
Legislative proposal
body
EC
events/0
date
2021-12-15T00:00:00
type
Legislative proposal published
body
EC
docs
summary
links
Research document
docs/0
date
2021-12-15T00:00:00
docs
summary
type
Legislative proposal
body
EC
docs/10
date
2022-07-14T00:00:00
docs
title: PE735.483
type
Amendments tabled in committee
body
EP
docs/10/docs/0/url
https://www.europarl.europa.eu/doceo/document/ITRE-AM-735483_EN.html
docs/11
date
2022-07-14T00:00:00
docs
title: PE735.483
type
Amendments tabled in committee
body
EP
events/0
date
2021-12-15T00:00:00
type
Legislative proposal published
body
EC
docs
summary
docs/0
date
2021-12-15T00:00:00
docs
summary