EU adopts directive raising renewable energy share to 42.5% by 2030

The EU Council adopted a revised Renewable Energy Directive targeting a 42.5% renewable share of energy consumption by 2030, with sector sub-targets and faster permitting. The binding framework shapes export and supply-chain expectations for Indian firms serving European markets.

The Council approved the new Renewable Energy Directive, aiming to raise the renewable energy share in the EU's overall energy consumption to 42.5% by 2030, with an additional indicative 2.5% to reach a 45% target. It sets sector sub-targets: transport requires either a binding 14.5% reduction in greenhouse gas intensity or at least 29% renewables in final energy consumption by 2030; industry must increase renewable energy use by 1.6% annually, with 42% of hydrogen from non-biological renewable fuels by 2030 and 60% by 2035.

Member states, transport, industry, buildings and heating-and-cooling sectors are directly affected by binding and sub-sector targets. Buildings, heating and cooling have an indicative 49% renewable energy target by 2030. The directive expedites permit procedures for renewable projects in designated acceleration areas, treating renewable deployment as overriding public interest, and strengthens bioenergy sustainability criteria. It forms part of the EU's 'Fit for 55' package, amending the prior directive that set a 32% renewable target binding since June 2021.

Indian exporters, renewable developers and green-hydrogen producers serving EU markets should monitor the directive's binding renewable and hydrogen sub-targets, which shape demand for clean inputs and renewable fuels of non-biological origin. The directive has been formally adopted, with member states given 18 months to transpose it into national legislation; the changes become legally binding 18 months after entry into force. Indian firms can assess opportunities in industrial renewable hydrogen as the EU mandates 42% by 2030 and 60% by 2035.

Key figure — Renewable energy target: 42.5% of EU energy consumption by 2030 (with indicative 45%)