Negotiators for the Council of the EU and the European Parliament on Friday reached a provisional political agreement for an EU energy efficiency target of 11.7% for 2030.

Final energy consumption is the energy consumed by end users while primary energy consumption includes energy used for energy production.

The Swedish Presidency of the Council of the EU and EP negotiators agreed after talks that lasted the whole night to change the Energy Efficiency Directive. The agreement is yet to be confirmed by the Council and the EP for it to become a law.

“Energy efficiency is key for achieving the full decarbonisation of the EU’s economy and independence from Russian fossil fuels,” Energy Commissioner Kadri Simson said.

To achieve targets defined by the agreement, the member-states will have to make major investments in the energy renovation and thermal insulation of millions of buildings.

Under the agreement, member countries will contribute to the accomplishment of the set target through national and energy plans that will define their own savings targets which will not be binding but which the European Commission will be able to correct if they do not contribute to the binding target of 11.7% at the EU level.

The formula for the calculation of national contributions will be indicative, with the possibility of a 2.5% departure, and it will be based, among other things, on energy consumption, GDP per capita, development of renewable energy sources and energy saving possibilities.

EU countries will be required to achieve new savings each year of 1.49% of final energy consumption on average, from 2024 to 2030, up from the current level of 0.8%. They will gradually have to reach 1.9% by the end of 2030.

Member countries will have to renovate each year at least 3% of the total floor area of buildings owned by the public administration.