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On 1 July 2020, Germany assumed the six-month presidency of the Council of the European Union (EU). In this time, Germany chaired the meetings of the Council and its preparatory committees and working parties and represented the Council in its dealings with other EU bodies and vis-à-vis third countries and international organisations.

It was anything but a normal half-year, because Germany’s Presidency of the Council of the EU was dominated by the challenges created by the COVID-19 pandemic. The focus was therefore not least on handling the health, economic and societal impact of the pandemic across Europe under the motto 'Together for Europe’s recovery'. The priorities set by the Economic Affairs Ministry in the fields of competitiveness, cohesion, trade, digital affairs and energy are set out in the Ministry’s work programme.

In the field of energy, the European Council is responsible, among other things, for working with the European Parliament to create legal provisions, for example on the functioning of the energy markets that safeguard energy security and promote energy efficiency as well as new and renewable sources of energy.

Germany's Presidency has set plenty of things in motion

Despite the restrictions resulting from the pandemic, a lot has been achieved, not least in the field of energy. The German Presidency saw a further maturing of the 'Green Deal' and the start of its roll-out. The Green Deal is one of the most important projects of the new European Commission, and aims to make Europe the first climate-neutral continent by 2050. Germany worked to ensure that the Green Deal can help Europe to become more innovative, competitive and sustainable as it emerges from the crisis. 'Germany is pursuing a forward-looking energy policy that provides a clear framework for cross-border offshore projects and explicit incentives to develop hydrogen technologies,' said Minister Altmaier at the outset of the Presidency.

Germany therefore wanted to support the adoption of Council conclusions which take account of the Offshore Renewable Energy Strategy presented by the European Commission. At the heart of the Council conclusions adopted on 11 December 2020 is a framework to promote the implementation of joint projects, especially in the field of offshore energy. It contains joint calls by the EU Member States for better EU rules governing cross-border projects. The main focus is on guidelines for a fair sharing of costs and benefits between the Member States, greater coordination of offshore spatial and grid planning whilst observing national competence, strengthening EU financing instruments, and appropriate EU electricity market rules.

Council conclusions for the development of hydrogen markets and their policy framework

Another priority of the German Presidency was the development of European and global markets and infrastructures for hydrogen. Council conclusions in this regard were also adopted under the German Presidency on 11 December 2020. They form the basis for the development of appropriate markets, structures and a suitable regulatory framework. This was the first time the Council had taken a united position on this issue.

The Council conclusions were prepared by a high-level conference on hydrogen in October at which experts from politics and business discussed the issue in detail (read more about this here). Minister Altmaier summarised the range of views at a press conference on the following day: 'Everyone agreed that hydrogen, and green hydrogen in particular, can play a key role when it comes to maintaining the competitiveness of industry and making progress on climate policy in all areas of daily life.'

The Council conclusions on offshore energy and hydrogen, which were adopted unanimously by the Member States, provide an important stimulus for the future development of European energy policy and also help to promote key forward-looking technologies on the road to climate neutrality.

EU's 2030 climate target raised to 55% less carbon emissions than in 1990

There was also a lot to discuss during the last video conference of the EU energy ministers under the German Presidency, held on 14 December 2020: a further substantive focus of the German Presidency was on the EU’s medium-term and long-term energy and climate targets and the question of how to reach them. A few days before the video conference in December, the European Council had decided to raise the EU climate target for 2030 and to emit at least 55% less greenhouse gases by 2030 than in 1990. For this reason, the agenda of the energy ministers included the Commission’s Strategy on Energy System Integration. The Commission has announced comprehensive proposals for the energy sector in order to implement the strategy and to attain the EU’s 2030 climate target of 55%.

Economic Affairs Minister Peter Altmaier had this to say: 'I welcome the decision by the European Council to raise the European climate target for 2030 to 55%. This interim target is important on our way to making Europe a climate-neutral continent by 2050. Clear, long-term targets now give us a unique opportunity to promote and to reconcile climate action and economic development.' However, Minister Altmaier added, this also means that we need to step up our efforts significantly in all sectors. Energy efficiency is to become more of a focus in the field of energy policy. He said that the use of renewables-based electricity in all sectors needs to be advanced more quickly, and the manufacture and use of renewable and low-carbon forms of energy (and hydrogen in particular) needs to be encouraged.

The conclusions of the European Council regarding the 55% target now need to be implemented in all areas. The EU’s energy ministers made a start on this through the outcome of their online discussions on 14 December 2020.

Presidency of the Council of the EU: Portugal and Slovenia set to take over

Every six months, the presidency of the Council rotates between the 27 member states. Taking over from Germany, Portugal and Slovenia will hold the presidency in the first and second halves of 2021 respectively. The three countries formed a trio in order to make progress on energy policy in Europe and to increase continuity in policy-making through close cooperation. Their eighteen-month Trio Presidency focuses on the areas set out in the 'Trio Programme'.