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📰 PKEE Regulatory Monitoring 01–07 December 2025 – Now Available! We invite you to explore the latest edition of PKEE’s Regulatory Monitoring, featuring key EU and national energy policy developments from the past week. This edition includes ⤵️ 📘 PKEE Position on the Review of EU Taxonomy Delegated Acts PKEE submitted to the European Commission its position as part of the consultation on the review of the Climate Delegated Act (CDA) and Environmental Delegated Act (EDA) under the EU Taxonomy Regulation. Key recommendations include: ensuring access to financing for transition projects by assessing investments, not entire companies; maintaining realistic GHG emission thresholds and avoiding technically unfeasible tightening; aligning fuel-switch requirements with the actual availability of biomethane and clean hydrogen; and clarifying reporting rules, including the auditor’s role. PKEE stresses that only proportionate and technically viable criteria will allow the Taxonomy to fully support investment opportunities for decarbonisation and become an effective tool in financing the energy transition. ⚛️ PKEE Position on SMRs PKEE took part in the European Commission’s consultation on the future deployment and development of small modular reactors (SMRs) in the EU. PKEE welcomes the Commission’s plan to adopt an SMR strategy, highlighting the role of nuclear energy in the energy transition. PKEE notes that a coordinated EU approach may help remove investment barriers, support R&D and build a European supply chain. Recommendations include simplifying procedures, ensuring access to financing and consistently recognising nuclear energy in the EU Taxonomy. 💱 PKEE Input on the Power Exchange Obligation PKEE participated in the public consultation on the draft act amending the Energy Law and the Renewable Energy Sources Act (UD284), addressing several proposed solutions, especially those related to the power exchange obligation. PKEE calls, among others, for excluding intra-group transactions and respecting acquired rights. 🌬️ PKEE Comments on Repowering PKEE submitted comments on the draft regulation of the Council of Ministers amending the regulation on projects likely to have significant environmental impact. PKEE’s proposals aim to streamline the repowering process for onshore wind farms. 🤖 PGE Meeting in the European Parliament on the Role of AI in Energy On 3 December, a meeting organised by PGE took place in the European Parliament, featuring PGE’s Vice President and PKEE representative Marcin Laskowski. The debate focused on the impact of AI and digitalisation on the energy sector. Participants – representatives of EU institutions, public administration and the tech and energy industries – highlighted that the digital and energy transitions are now inseparable, and that the deployment of AI in energy must enhance system efficiency and security, including critical infrastructure protection. Key barriers identified in consultations for the Commission’s 2026 action plan include: lack of coordination, limited access to high-quality data, rising energy demand from digital technologies, and cybersecurity risks. 🛢️ EU Agreement on a Full Ban of Russian Gas Imports In the night of 2–3 December, EU institutions reached an agreement on a regulation introducing a full ban on imports of Russian gas: LNG from the end of 2026 and pipeline gas from autumn 2027 (previously planned for 2028). The compromise includes a 4-week “suspension clause” allowing temporary reversal of the ban in emergency situations. A catalogue of penalties was also agreed: EUR 40 million, 3.5% of annual turnover, or 300% of the value of the transaction. 🔌 EU Grids Package – Expected Amendments to TEN-E and RED According to a leaked draft of the EU Grids Package, the Commission will on 10 December present a set of legislative measures aimed at accelerating grid investments and shortening connection times for new renewable installations. The Commission warns that without additional action, 45% of cross-border capacity needs (41 GW) will remain unmet by 2030, and unused renewable energy may reach 310 TWh by 2040. The package will propose amendments to the TEN-E Regulation and permitting rules under the Renewable Energy Directive (RED), aimed at simplifying and speeding up procedures. Energy Commissioner Dan Jørgensen told POLITICO the package will increase grid integration and support energy-transition goals. 🛡️ EU Calls for Stronger NATO Involvement in Protecting Energy Infrastructure According to a document from the Danish EU Council Presidency, revealed by POLITICO, the energy transition may create new vulnerabilities that Russia could exploit. The letter to EU ambassadors stresses that phasing out traditional infrastructure – fuel stations, refineries, pipelines – is reshaping supply chains on which armed forces also depend. The Presidency calls for deeper EU–NATO coordination on energy security and for stronger NATO involvement in the green transition to enhance the Union’s energy independence. The document also highlights growing risks of cyber and physical attacks on pipelines, cables, ports and electricity grids, stressing the need for reinforced protection across all stages – from planning to operation. The initiative will be discussed by EU energy ministers on 15 December. ⚠️ EU Energy Ministers to Discuss Security of Supply A working document published on 3 December shows that EU energy ministers will discuss security of supply and competitiveness during a working lunch at the Energy Council on 15 December. The debate precedes the Commission’s upcoming proposal (early 2026) to update the EU energy security framework. The Danish Presidency highlights challenges arising from Russia’s war against Ukraine, climate-change impacts and the transformation of the energy system. The document asks how the EU can ensure security of supply and maintain competitiveness amid new geopolitical threats. The session will be introduced by IEA Executive Director Fatih Birol. 🎯 2040 Climate Framework – The Commission Announces a New Approach The European Commission indicates that the regulatory framework for the 2040 climate target will not simply replicate the models used for the 2020 and 2030 goals. At POLITICO’s Sustainable Future Summit, Yvon Slingenberg (DG CLIMA) said the Commission is preparing a comprehensive regulatory package assuming the Council and Parliament formally adopt the new target on 9 December. The first component will be a revision of the EU ETS (by mid-2026) to ensure predictability for industry. Slingenberg stressed that 2030 objectives and mechanisms will remain unchanged to preserve regulatory stability. The Commission aims to strike a balance between predictability and flexibility, including broader options for low-carbon technologies, while ensuring accountability and a “fair contribution” from all Member States. 📉 European Commission: ETS Continues to Reduce Emissions The latest Commission report shows that the EU Emissions Trading System (ETS) continues to reduce emissions in the power and energy-intensive industrial sectors. Power and heat generation emissions fell by 10.7% in 2024 year-on-year due to a higher share of renewables and nuclear, and reduced coal and gas use. Industrial emissions decreased modestly by 0.8%, indicating the need for accelerated decarbonisation efforts. Overall, ETS-covered emissions are now 50% lower than in 2005, consistent with the trajectory toward the –62% target for 2030. The system generated EUR 38.8 billion in 2024, mainly supporting Member States’ climate measures. 👷‍♂️ IEA: Europe’s Energy Workforce Is Aging According to the IEA’s latest report, Europe faces rapid aging of its energy workforce – the share of workers aged 55+ increased from 17% to 20% between 2015 and 2024, while younger workers remain at around 7%. Europe is also losing ground in global employment across sectors key to the transition, including bioenergy and critical minerals (approx. 3% global share). The report highlights China’s dominance in strategic industries – accounting for 60% of the global solar workforce compared to 10% in Europe. The wind sector also recorded a decline (–4% YoY offshore). Nuclear remains stable but stagnant, while the heat-pump sector is expected to regain momentum due to EU 2030 targets.