EU Parliament backs 42.5% renewable energy target by 2030

The European Parliament voted 470-120 to require renewables to make up 42.5% of EU energy consumption by 2030, nearly doubling the 2021 share of about 22%. The strengthened targets and faster permitting set an ambitious benchmark relevant to India's own renewable expansion and green hydrogen ambitions.

European Parliament legislators voted 470-120 to require renewable energy to make up 42.5% of EU energy consumption by 2030, with member states urged to collectively strive for 45%. This nearly doubles the roughly 22% renewable share in 2021 and raises the prior 32% target, surpassing the 40% goal in the "Fit for 55" roadmap. The 45% ambition was added in May 2022 under the REPowerEU Plan, introduced in response to the Russian invasion of Ukraine to cut dependence on Russian fossil fuels.

The legislation affects energy producers, building, transport, industry, and hydrogen sectors through sector-specific targets: at least 49% renewable energy in buildings by 2030, a 14.5% reduction in transport emissions, an annual 1.6% increase in industrial renewable use, and a mandate that 42% of industrial hydrogen come from renewable fuels of non-biological origin by 2030, rising to 60% by 2035. At least 5% of newly installed renewable capacity by 2030 must be innovative renewable energy technology.

The proposal awaits formal approval by the EU Council following the March 2023 preliminary agreement. Developers should note faster permitting: approvals in "renewables go-to areas" should take under 12 months, and other regions should not exceed 12 months. Industry, building owners, transport operators, and hydrogen producers can monitor the binding sector targets and timelines, including the rising renewable hydrogen mandates through 2035, as the EU accelerates deployment to meet its strengthened 2030 renewable energy objectives.

Key figure — Renewable energy target: 42.5% of EU consumption by 2030