The European Green Deal in the context of energy development and energy efficiency

Lecture content:

1. General characteristics of the European Green Deal
2. Stages of development
3. Main instruments of the Green Deal
4. Fit for 55 program
5. Revised Energy Efficiency Directive (EED)
6. Development of the energy system within Fit for 55
7. CBAM (Carbon Import Adjustment Mechanism)
8. Conclusion
9. Active links (NPAs, standards, resources)
10. Glossary
11. Self-test questions

1. General characteristics of the European Green Deal

The European Green Deal is a strategic initiative of the European Union aimed at achieving climate neutrality in Europe by 2050. It was presented by the European Commission in December 2019 as a response to global challenges: climate change, environmental pollution and depletion of natural resources.

The main reasons for adopting this agreement are as follows:

• the need to reduce greenhouse gas emissions;
• the transition to a sustainable economy with zero net CO₂ emissions;
• increasing energy efficiency and developing renewable energy sources;
• ensuring the competitiveness of European enterprises in the context of global decarbonization.

The Green Deal is the main political and economic policy of the European Union – an association of 27 countries. It is important to understand that in the EU, the factor of preventing climate change is a powerful socio-political demand. Citizens of the European Union countries are aware of the importance and relevance of the problem of climate change.

2. Development stages

2019 – adoption of the Green Deal.
The Green Deal was presented by the President of the European Commission, Ursula von der Leyen, in 2019 as a result of her first 100 days in office. It is a development strategy taking into account the factors of preventing climate change, which was ratified by all member states of the European Union in the form of large-scale packages of commitments, mandatory for implementation by governments.

Its implementation has become the subject of constant interaction and dialogue between all EU member states. The component packages of the Green Deal are the result of complex negotiations, because the EU political system is complicated by an international superstructure. Democratic processes take place in parallel both at the level of national political systems and at the international level. This is a continuous process of dialogue, discussions and consensus-building. Therefore, the significance of the figures and documents included in the Green Deal program packages is extremely significant.

For Ukraine, which strives for political and economic integration into the EU, the Green Deal should become a leading guideline. The global goal of humanity is to limit the increase in the average temperature on the planet to 1.5 °C. Anthropogenic factors – emissions of CO₂ and other greenhouse gases – are considered the main factor in negative climate transformation.

2020 – a plan to reduce emissions by 55% by 2030.
In 2020, the Green Deal plan was adopted, which provides for a 55% reduction in greenhouse gas emissions by 2030.

2021 – launch of the Fit for 55 program.
In 2021, the Fit for 55 program was launched, which includes a set of legislative initiatives to meet climate goals.

2022–2023 – review of strategies in connection with the energy crisis.
Following Russia’s full-scale invasion of Ukraine, the EU revised the Green Deal strategies, focusing on energy security and reducing dependence on Russian energy sources.

3. Main instruments of the Green Deal

The goal of the Green Deal is to make Europe the first climate-neutral continent by 2050. This means that the continent should become neutral in terms of emissions and impact on the planet’s climate.

The set of legal documents that form the basis of the Green Deal is constantly being revised towards stricter requirements and criteria. Thus, the goals for the development of renewable energy were updated and the Energy Efficiency Directive was strengthened.

A particular challenge for Ukraine is the decarbonization of transport. The European automotive industry is currently losing competition to the Chinese one, and this is primarily due to the development of electromobility. One of the key components of the Green Deal is the termination of the production and sale of cars with internal combustion engines and a complete transition to electric vehicles by 2050.

The Green Deal includes several fundamental instruments:

• European Climate Law – sets the goal of achieving climate neutrality by 2050.
• Just Transition Fund – financial support for regions dependent on the coal and oil industries.
• RePowerEU Program – a response to the energy crisis and reducing dependence on Russian natural gas.
• Energy transformation of transport – a gradual transition from internal combustion engines toelectric cars.

To become a world leader in the fight against climate change, the EU must implement the following tasks:

• reduce dependence on fossil fuels (complete phase-out by 2050);
• develop renewable energy;
• increase energy efficiency;
• introduce innovative “green” technologies;
• prepare the economy and society for climate transformation.

4. Fit for 55 program

Fit for 55 contains a set of reforms and new rules covering energy, transport, industry, taxation and environmental protection.

Main directions:

• reform of the ETS (emissions trading system);
• development of renewable energy and energy efficiency;
• CBAM – carbon import adjustment mechanism;
• electromobility;
• creation of the Social Climate Fund;
• preservation of forests, soils and biodiversity.

Expected results by 2030:

• reduction of greenhouse gas emissions by 55%;
• increase in the share of renewable energy to at least 42.5%;
• increasing the level of energy efficiency by at least 11.7% (compared to the 2020 baseline);
• increasing the competitiveness of “green” technologies in the EU;
• reducing dependence on energy imports.

Priority for the development of renewable energy:

• reducing CO₂ emissions;
• reducing dependence on fossil fuels;
• increasing the level of EU energy security.

A major reform of the EU energy system:

One of the central tasks is increasing energy efficiency.

The main initiatives of Fit for 55 in this area:

• Revised EED Directive – setting new ambitious targets;
• Energy efficiency of buildings – new requirements for the modernization of the construction sector;
• Industry – reducing energy consumption, introducing standards and incentives for increasing efficiency;
• Energy systems – digitalization, development of “smart” grids and innovative management technologies.

5. Revised Energy Efficiency Directive (EED)

The revision of the Energy Efficiency Directive within the framework of Fit for 55 made it more ambitious and mandatory for all EU Member States. The document expanded the scope of legal regulation, strengthened requirements, and raised target indicators.

New EED targets:

• reduce total energy consumption by 11.7% by 2030 (compared to the projected level);
• annual reduction of final energy consumption by 1.5%;
• mandatory energy efficiency measures for public institutions – annual reduction of energy consumption by 1.9%;
• development of national energy efficiency plans with specific targets for each country.

Building sector (over 40% of total energy consumption in the EU):

• mandatory thermal modernization – renew 3% of public buildings every year;
• ban on new construction with fossil fuels fuel – from 2028, all new buildings must use exclusively RES;
• increasing the energy efficiency class – achieving the minimum level of “E” by 2030 and “D” by 2033;
• introducing “smart” energy management systems – automated lighting, heating, intelligent sensors.

Industrial sector:

• mandatory energy audits for large enterprises every 4 years;
• industrial decarbonization – introducing new technologies;
• secondary heat use – mandatory use of residual heat in factories and data centers;
• increasing the share of RES – by 2030 49% of energy, consumed by industry must come from renewable sources.

Ukraine in the context of EED

In Ukraine, the following are in effect:

• National Energy Efficiency Plan until 2030;
• Energy and Climate Action Plan, which takes into account European guidelines.

6. Development of the energy system within the framework of Fit for 55

To reduce energy losses and increase the sustainability of the energy system, the Fit for 55 program provides for a number of key measures:

• development of “smart” grids – integration of renewable energy and decentralized generation, digitalization of energy, implementation of demand management systems;
• stimulation of energy saving in everyday life – consumers will be able to receive favorable tariffs for electricity use during off-peak hours;
• development of energy storage technologies – construction of new battery systems to stabilize electricity grids;
• reduction of losses in networks – modernization of old power transmission lines and transition to digital monitoring technologies.

7. CBAM (CBAM) – Carbon Import Adjustment Mechanism

CBAM is a carbon border adjustment mechanism that imposes an additional levy on goods with high CO₂ emissions imported into the EU.

Main objective:

• to prevent “carbon leakage” when companies move production to countries with less stringent environmental standards.

How CBAM works:

• importers in the EU are required to purchase certificates that reflect the amount of CO₂ emissions generated during the production of goods;
• if the exporting country has its own emissions pricing system comparable to the European one, CBAM may not apply.

Implementation stages:

• 2023–2025. – transition period: companies only report on emissions;
• from 2026. – full implementation of the mechanism.

8. Conclusion

The European Green Deal is not an idealistic declaration, but the main political and economic course of the EU. Its impact on the development and future of Ukraine cannot be overestimated, because integration into the European climate and energy space is a key task of our state.

Active links

• European Green Deal: https://commission.europa.eu/strategy-and-policy/priorities-2019-2024/european-green-deal_en
• Fit for 55: https://ec.europa.eu/commission/presscorner/detail/en/ip_23_4754
• European Climate Law: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32021R1119
• RePowerEU – EU plan to reduce dependence on Russian energy sources: https://commission.europa.eu/topics/energy/repowereu_en
• Carbon Border Adjustment Mechanism (CBAM): https://taxation-customs.ec.europa.eu/carbon-border-adjustment-mechanism_en
• Directive (EU) 2023/1791 on energy efficiency: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32023L1791
• National Energy and Climate Plans (NECPs): https://energy.ec.europa.eu/strategy/energy-union_en#national-energy-and-climate-plans