This Week in Energy — Brussels (#22, 2026)
Italian €23bn renewables scheme approved; T-MED launches €25bn Mediterranean energy pact; ETS2 market stability reserve revised; Battery Booster Facility established;
June 07, 2026 to June 13, 2026
Italian €23bn renewables scheme approved; T-MED launches €25bn Mediterranean energy pact; ETS2 market stability reserve revised; Battery Booster Facility established;
📋 In This Week's Newsletter
• 🇪🇺 European Commission
• ⚖️ EU Legislation
• 🤝 EU Council
• ✒️ EP Committee Work
• 📚 What We're Reading This Week
European Commission
Commission approves €23 billion Italian State aid scheme for renewable electricity
The European Commission approved a €23 billion Italian State aid scheme to support electricity production from renewable energy sources under the Clean Industrial Deal State Aid Framework (CISAF), adopted 25 June 2025. The measure will boost construction of installations for onshore wind, solar, hydropower, and sewage gas, adding 37.15 GW to Italy's RES capacity. Aid will be delivered via two-way contracts for difference (CfDs) for a 20-year duration, with competitive bidding for projects above 1 MW and Net Zero Industry Act criteria applied. The scheme expects to increase Italy's renewable energy share to 39.4% of gross final energy consumption by 2030 and reduce dependency on energy imports. The Commission found the scheme necessary and proportionate under CISAF and Article 107(3)(c) TFEU.
EU launches €25 billion Mediterranean Pact for renewables and clean tech
The European Commission, during European Sustainable Energy Week, launched the Trans-Mediterranean Renewable Energy and Clean Tech Cooperation (T-MED) initiative under the Pact for the Mediterranean. Commissioners Dubravka Šuica and Dan Jørgensen announced T-MED aims to mobilise up to €25 billion by 2035, with €5 billion in guarantee capacity available through the European Fund for Sustainable Development Plus. The initiative targets development of 15 GW new renewable capacity, regulatory reforms, and infrastructure upgrades across the Mediterranean, supporting decarbonisation and energy security. Calls for investor and promoter participation are open through August, and the first T-MED Investment Platform meeting is scheduled for October 2026.
EU Legislation (Official Journal)
Commission Decision (EU) 2026/1283: Battery Booster Facility established
Commission Decision (EU) 2026/1283 of 9 June 2026 set up the Battery Booster Facility, allocating €1.5 billion from the Innovation Fund to support electric vehicle battery cell manufacturing in ramp-up phase. Projects must be located in the EEA, demonstrate technical and financial maturity, and comply with Net Zero Industry Act Regulation (EU) 2024/1735 provisions. Loans are capped at €500 million per recipient or 60% of eligible costs, and must adhere to environmental standards under Regulation (EU) 2020/852. Selection is by open call, prioritising commercialisation speed and European economic contribution.
Council Implementing Decision (EU) 2026/1295: Sweden authorised reduced excise duty on fuels
On 4 June 2026, the Council authorised Sweden to apply excise duty rates on gas oil and unleaded petrol up to 2.4 SEK/litre below Directive 2003/96/EC minimums, due to energy price shocks from Middle East geopolitical instability. The derogation applies from 1 July to 30 November 2026 and is intended as a time-limited relief for households and businesses, following European Council conclusions and Commission review.
EU Council
ECOFIN agrees position on strengthening CBAM
The Economic and Financial Affairs Council (ECOFIN) agreed its position on the Commission proposal to strengthen the carbon border adjustment mechanism ahead of negotiations with the European Parliament.
EP Committee Work
ENVI Committee draft report: Market Stability Reserve for ETS2
The ENVI Committee issued a draft report (rapporteur: Pierfrancesco Maran) amending Decision (EU) 2015/1814 to cease invalidation of allowances in the market stability reserve for the new emissions trading system for road transport and buildings (ETS2). The draft proposes changes to strengthen the intervention mechanism and preserve reserve capacity for post-2030 use.
ITRE Committee draft opinion: Simplified testing requirements for motor vehicles
The ITRE Committee published a draft opinion (rapporteur: Giorgio Gori) on the proposal to amend Regulations (EC) No 561/2006, (EU) 2018/858, (EU) 2019/2144, and (EU) 2024/1257. The objective is simplification of technical requirements and testing procedures for motor vehicles, with repeal of earlier directives, contributing to regulatory coherence for automotive industry stakeholders.
What We're Reading This Week
- Video. World's first large-scale hydrogen engine starts generating electricity: A groundbreaking hydrogen engine has begun producing power at scale, marking a major step toward cleaner electricity generation.
- World's first large-scale hydrogen engine starts generating electricity: A groundbreaking hydrogen engine project begins commercial power generation, marking a major step toward cleaner energy solutions.
- (S+) Our Warming Climate: A Pilot Project in Norway Raises Doubts about CCS Sustainability: A Norwegian pilot project highlights concerns over the long-term effectiveness and viability of carbon capture and storage solutions.
- Despite official EU ban, imports of Russian Arctic LNG still surging: European imports of Russian Arctic liquefied natural gas continue to rise, undermining efforts to enforce EU energy sanctions.
- UN climate talks kicks off in Bonn - but visa delays shut out NGOs: Visa processing issues prevent many NGOs from attending Bonn UN climate talks, raising concerns about inclusivity and transparency.
