- The European Commission is considering changes to EU energy laws as part of its efforts to reduce regulatory burdens on industries.
- Key policies under review include the Energy Efficiency Directive and the Renewable Energy Law, which mandate energy consumption audits and renewable energy expansion.
- While industries support deregulation to boost competitiveness, critics argue it could weaken corporate accountability and destabilise the investment environment.
Sources told Reuters that the European Commission plans to change EU energy laws to ease regulatory pressure on struggling industries. This move supports Brussels’ broader push to cut bureaucracy, which businesses argue disadvantages them against competitors in China and the U.S., where deregulation progresses faster.
Five sources revealed that the Commission is now exploring ways to simplify EU energy policies. Last month, it introduced the first wave of “simplification omnibus” proposals to reduce sustainability reporting requirements. Although the discussions remain in the early stages, they could form part of a broader package focusing on small and mid-cap companies, initially set for April but likely postponed until May.
Three sources confirmed that the Commission is currently reviewing the energy efficiency directive. This directive sets binding targets to curb energy use and requires companies to audit their consumption, with larger firms needing plans to manage it effectively.
One source also mentioned that the Commission is considering revising the EU’s renewable energy law. This climate policy mandates countries expand renewable energy use.
The European Commission declined to comment on whether it will include energy laws in the next omnibus package. Industries strongly support cutting regulations, claiming overregulation drains resources and stifles innovation.
However, several investors, left-leaning lawmakers, and campaigners voiced criticism. They argued that the first proposals would undermine corporate accountability and create an unstable investment climate by undoing recently passed laws.