Abstract

The co-legislators of the EU adopted in July 2023 a revised version of the Energy Efficiency Directive, implying that the ‘energy efficiency first’ (EE1) principle is made legally binding for member states, to apply in policy, planning and investment decisions exceeding euro 100 million each and euro 175 million for transport infrastructure projects. The EE1 principle complements two other guiding principles of EU energy and climate policy: cost-effectiveness and consumer protection. This article analyses the policy process and politics leading to the adoption of the EE1 principle as a legal institute in EU energy and climate policy. Policy core and secondary beliefs of four different advocacy coalitions are identified, and explained what are the paths to policy change. Lines of dispute among the coalitions related to (i) the purpose and meaning of energy efficiency policy, (ii) the size of projects covered (all projects or only very large projects) and (iii) which sectors to be covered (the public sector or both the public and private sectors). The adoption of the EE1 principle as a binding provision follows an ‘external shock’ to the political subsystem of energy efficiency, namely the Paris Agreement and the subsequent adoption of an EU climate law strengthening the EU climate targets for 2030 and 2050. In addition, it is a ‘negotiated agreement’ between the Council and the Parliament, undertaken as a deliberative problem-solving exercise rather than bargaining. The deliberative nature of the negotiations opened for ‘policy-oriented learning’ across belief systems in the subsystem.

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