EU Parliament Approves Sweeping Energy Market Reforms to Accelerate Clean Transition and Bolster Security
The European Parliament has given its approval to a sweeping overhaul of EU gas and electricity market rules. This comprehensive reform package is designed to accelerate the bloc’s clean energy transition while bolstering energy security and consumer protection measures. A key provision allows individual member states to restrict imports of Russian natural gas, building on forthcoming restrictions targeting excessively methane-leaking upstream supplies.
The newly adopted legislation aims to promote biomethane production from organic waste in line with the EU’s 2030 target of 35 billion cubic meters per year. It also facilitates the development of a dedicated hydrogen distribution network. These measures are intended to decarbonize Europe’s energy system, particularly emission-intensive industries that cannot readily electrify.
Moreover, the reforms incentivize the production of ‘low-carbon’ gases, including fossil-based fuels coupled with carbon capture and storage technology. The European Commission has one year to establish criteria defining qualifying low-carbon gaseous products.
With cross-party backing following a December deal with governments, MEPs backed provisions to protect vulnerable consumers from price volatility akin to the 2022 energy crisis while enhancing long-term energy security.
