Mr. Max Muenchmeyer:

I will briefly point to two features of the energy union governance regulation which, as we speak, is in inter-institutional trilateral negotiations in Brussels. The outcome of those will be important.

On renewable energy targets, the governance regulation specifies sectoral trajectories for heating and cooling, electricity and the transport sector will have to be included in the plans. It specifically mentions sectoral targets as an option in greenhouse gas reductions and energy efficiency. Once those sectoral targets are set, if set within the energy and climate plans, the Commission will then hold Ireland to those targets and they would have to be included in the periodic reports to the Commission.

The issue of fines was raised. Ireland is likely to miss its binding renewable energy target under the 2020 renewable energy directive. If we see fines as a penalty payment that is imposed by the European Court of Justice following an action pursuant to Article 258 of the Treaty on the Functioning of the European Union, they are quite an unlikely option. The average time in environmental cases for a fine to be handed down by the European Court of Justice is about four years. It is interesting to note, and is connected to the ongoing trilateral negotiations, that the Commission proposal sets the 2020 target as a binding baseline share. Article 27 of the proposed governance regulation specifies that if a state does not maintain that baseline, under the Commission proposal, it would be required to contribute to a financing platform administered by the Commission. Those funds would then be used for investment in renewable energy projects throughout Europe, which means the fines will be invested in renewable energy in any case. The way in which the contribution will be calculated will be up to the Commission but the projects may be in Ireland.