Governance of the Energy Union and Climate Action

To help the EU reach its 2030 climate and energy targets, the Regulation on the Governance of the Energy Union sets common rules for planning, reporting and monitoring. The Regulation also ensures that EU planning and reporting are synchronised with the ambition cycles under the Paris Agreement.

Under the Governance Regulation, EU Member States develop integrated national energy and climate plans (NECPs) based on a common template.

The plans cover the five dimensions of the Energy Union:

1. decarbonisation (greenhouse gas reduction and renewables)
2. energy security
3. energy efficiency
4. internal energy market
5. research, innovation and competitiveness

Member States submitted their 2021-2030 final plans in 2019. The Commission has assessed these both at EU and Member State level.

Member States had to update their NECPs by the end of June 2023 in a draft form. . The Commission has assessed the Member States’ draft updated NECPs and issued recommendations to ensure their ambitions are in line with EU targets for 2030. Member States have to submit their final plans by 30 June 2024.

Member States can adapt national policies and measures at any time, provided such changes are included in the biennial integrated national energy and climate progress reports to the Commission.

Member States are also required to develop national long-term strategies and ensure consistency between these strategies and their national energy and climate plans.

The Governance Regulation establishes procedures to help tracking progress of compliance with the obligations on the levels of GHG emissions and removals established in Union climate legislation such as the Effort Sharing Regulation and the LULUCF Regulation.

It also lays down a monitoring mechanism for greenhouse gas emissions and other climate information as regards adaptation to climate change and support to developing countries, so that the EU will be able to comply with its reporting obligations under the UNFCCC and Paris Agreement. Moreover, the regulation streamlines other important climate reporting required under EU legislation, such as reporting on the Member State use of ETS auctioning revenues.

Implementing Regulation (EU) 2020/1208 sets the templates and establishes the procedure for the reporting obligations that Member States have under the Governance Regulation. The templates were amended in 2024 to reflect the legislative changes introduced by the “Fit for 55” package.

The Commission monitors the progress of the EU as a whole, in particular as part of the annual State of the Energy Union report.

Member States will report on the progress made in implementing their energy and climate policies, including their national energy and climate plans, every two years. They reported for the first time in March 2023.

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