The Governance System of the European Energy Union and Climate Action

Abstract

On 24 December 2018, the Regulation (EU) 2018/1999 on the governance system of the Energy Union and Climate Action entered into force. The Governance Regulation provides the European Union with a new regulatory regime for renewable energies and energy efficiency. It has the function of an ‘Umbrella Regulation’ which aims at the overarching control of energy and climate policies for the period 2021 to 2030. Its target is to implement the climate protection goals of the Paris Agreement. At the same time, it represents a compromise and compensation for the European Union’s lack of competences in the area of energy supply, especially concerning the determination of the energy mix of the Member States. Despite choosing a Regulation (which applies automatically) as the legislative tool, its steering and sanctioning mechanisms are in this respect rather ‘soft’: The Regulation gives the Member States a wide scope of decision-making. Which goals and instruments are established by the Governance Regulation, which scope of decision making remains at the national level, how Germany exercises its decision making powers and how it should be exercised are key questions addressed in this article.