Approval of EU renewables law delayed as France ‘plays hardball’ on nuclear

Formal approval of the EU’s renewable energy directive has been postponed following a last-minute objection by Paris, which wants further “guarantees” on low-carbon hydrogen derived from nuclear power.

The renewable energy directive (RED) was in the process of formal approval on Wednesday (17 May) after EU countries and the European Parliament reached a tentative political agreement on 30 March.

The agreement came after months of tense negotiations as France, backed by Eastern EU countries, sought recognition for “low-carbon hydrogen” produced from nuclear energy to be deducted from the bloc’s renewable energy goals.

That aspect of the deal was enshrined in article 22b of the directive, which lays out clean hydrogen objectives to decarbonise Europe’s industry.

It took several weeks for legal experts to finalise the text, and ambassadors from the 27 EU member states were planning to work towards formally rubber-stamping it on Wednesday.

But the item was removed from the agenda at the last minute, according to Sweden, which holds the EU’s six-month rotating presidency of the Council and is in charge of approval procedures.

The Swedish Presidency declined to comment on the reasons for the delay but it seems there was potentially not enough support to pass the law, with several diplomats contacted by EURACTIV blaming France.

One EU diplomat accused Paris of “playing hardball” for concessions.

“The law has been taken hostage by very narrow national interests,” said a second diplomat, who spoke on condition of anonymity.

French sources confirmed on Wednesday that the delay was related to concerns about nuclear energy and its status in the renewables directive.

“France defended throughout the negotiations the technological neutrality of the text, so that nuclear and renewables are not placed in competition” against each other, said a French source close to the file.

The political compromise on article 22b “is a victory for the consideration of nuclear power at European level” because it “allows EU member states with a significant share of low-carbon hydrogen to limit the required share of renewable hydrogen,” the French source told EURACTIV.

“This is why France wishes to clarify the modifications made by Belgium and the Netherlands to the implementation of hydrogen objectives,” the French source continued.

Paris also wishes more broadly to “obtain guarantees on the means implemented at European level to achieve the targets” of the renewables directive so that Europe can “build a decarbonisation plan that holds water”.

The French concerns over hydrogen come in addition to worries expressed by central and eastern European countries, who believe the law is too ambitious.

Countries like Czechia, Slovakia and Bulgaria are considering not supporting the final compromise text agreed on 30 March in “trilogue” talks involving the European Commission, the European Parliament and the Council.

“As the development of negotiations shows, the outcome of trialogues on the renewable energy directive […] are faced with serious doubts by a large group of member states,” according to a third EU diplomat.

The saga has created confusion in Brussels over how to resolve the impasse.

“It’s a mess,” a fourth EU diplomat commented to EURACTIV, with another describing it as being discussed “in corridors, not meetings”.

France in discussion with Swedish EU Presidency

It is not entirely clear what Paris is seeking to obtain from the delay, although French sources say it is related to the role of nuclear in “the implementation of hydrogen objectives” agreed under the directive.

“We are currently in discussion with the Presidency, our partners and with the Commission to take into account these elements which should benefit all European industry,” said the French source close to the file.

“The objective is to conclude the text very quickly, under the Swedish Presidency, with these adjustments,” the source said.

However, some suggest France is using the delay as a way to win more support for nuclear.

“The Presidency’s decision to postpone [the renewables directive] appears to be linked to the reservations of some ‘nuclearist’ states led by France, which would have sought greater recognition of low-carbon energy of nuclear origin in the RED,” a fifth diplomat told EURACTIV.

German precedent

At this stage of the legislative process, when the text is already agreed upon by EU country representatives and the European Parliament, it is generally accepted that it will not be reopened and is simply a deal to be rubber-stamped.

The delay brings unwelcome reminders of the kerfuffle that emerged during final agreements on the CO2 standards for cars legislation, with some concerned that this reinforces a precedent of big EU countries throwing their weight around to get concessions.

Such a move from France could be seen as another example of contempt for EU democracy, one diplomat commented. “It’s not a good day for democracy or small and medium countries,” another told EURACTIV.

“The fear is that this could create further issues for approving legislation in future,” the diplomat added.

ReFuel EU caught in the cross-fire

The postponement of the deal on the EU’s renewable energy directive has consequences for another piece of legislation related to green aviation fuels, called ReFuelEU.

A final agreement on the ReFuelEU regulation was also delayed as member states, including Germany, made it clear that their support for the file was reliant on the renewables law passing.

EU diplomatic sources said related climate files should be seen as a larger package, meaning ReFuelEU should not be passed in isolation. While other green laws have already been passed, RefuelEU is closely linked to the renewables directive.

A push by member states, led by France, to include low-carbon synthetic fuels in ReFuelEU proved a major stumbling block during negotiations on the green jet fuel regulation, leading to a collapse of talks in December.

However, clarifications reached under the renewables law agreement on the use of hydrogen derived from nuclear electricity saw talks resume, leading to an agreement on 25 April. Under the deal, synthetic low-carbon aviation fuels produced with nuclear energy will be permissible as a sustainable aviation fuel.

Laurent Donceel, acting managing director of airline trade association A4E, told EURACTIV that the decision to postpone ReFuelEU was “regrettable” and should have been avoided.

“The ongoing France-Germany stand-off, this time around the role of nuclear in the Renewable Energy Directive, is now torpedoing the EU sustainable aviation fuels,” he said.

“It certainly shouldn’t force negotiators back to the table,” he added.

If a solution is found to the renewables law impasse, the sustainable jet fuel file would likely be adopted too. The Swedish Presidency says that talks are ongoing, but it is yet to be seen how it moves forwards in trying to pass the law.

Source:?euractiv.com