Croatia, Hungary, Portugal to face EU sanctions for not promoting renewables


The European Commission has decided to refer Croatia, Hungary, and Portugal to the CJEU for not supporting enough renewable energy development. The commission is requesting the imposition of financial sanctions on the three member states for failing to turn the EU Renewable Energy Directive into national legislation.

Member states were required to incorporate the EU directives into national law by June 30, 2021. In May 2022, the commission said it sent reasoned opinions to Croatia, Germany, Hungary, Portugal, and Romania for failing to provide it with “clear and precise information in relation to which national provisions transpose each provision of the directive.”

It also sent provisions to Cyprus, Greece, Ireland, and Luxembourg for having “only partially notified” national measures. The commission gave each country two months to comply with the transposition obligation.

“To date, Croatia, Hungary, and Portugal are the only three member states who have failed to notify any correlation table or explanatory document specifying where they have transposed each provision of the Directive. Therefore, the Commission is referring these member states to the Court of Justice of the European Union,” the European Commission said in a statement.

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According to EU law, the European Commission can refer member states to the CJEU and request financial sanctions if they fail to comply with the reasoned opinion within the stipulated deadline.

The Renewable Energy Directive, adopted in 2018, provides a legal framework for the development of renewable energy in electricity, heating, cooling, and transport over the current decade. It sets an EU-level binding target for 2030 of at least 32% renewable energy and includes measures to ensure support for renewable energy is cost-effective. It also calls for simplified administrative procedures for renewable energy projects.

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