The Renewable Energy Directive (RED) is the legislative framework established by the European Union (EU) to promote the production and use of energy from renewable sources. Originally adopted in 2009, and updated through RED II (2018) and RED III (2023), the directive sets binding targets for renewable energy shares in the EU’s energy mix and defines the sustainability criteria for renewable fuels and technologies.
As a cornerstone of the EU’s climate and energy policy, RED plays a key role in supporting the transition toward carbon neutrality by 2050, as laid out in the European Green Deal and REPowerEU plan.
Purpose and objectives
The main goals of the Renewable Energy Directive are to:
- Increase the share of renewables in electricity, heating and cooling, and transport sectors.
- Promote innovation and investment in clean energy technologies.
- Ensure the environmental sustainability of bioenergy and renewable fuels.
- Support energy independence and diversification of the EU energy supply.
- Enable a fully integrated, decentralized, and flexible renewable energy system across Member States.
Evolution of the Directive
- RED I (2009) – Directive 2009/28/EC
- Set a 20% renewable energy target by 2020 across the EU.
- Introduced national binding targets for each Member State.
- Promoted the use of biofuels in transport and established initial sustainability criteria.
- RED II (2018) – Directive (EU) 2018/2001
- Updated the EU target to 32% renewable energy by 2030.
- Strengthened sustainability criteria for bioenergy and introduced rules for advanced biofuels.
- Introduced definitions for Renewable Fuels of Non-Biological Origin (RFNBOs) and Recycled Carbon Fuels (RCFs).
- Enabled cross-border cooperation and simplified permitting for renewable energy projects.
- RED III (2023) – Revised under the Fit for 55 package
- Increased the binding EU target to 42.5% renewables by 2030, with an aspirational goal of 45%.
- Introduced sub-targets for transport (e.g., 14.5% GHG reduction or 29% renewable share).
- Set minimum shares for renewable hydrogen and industrial use.
- Streamlined approval processes through accelerated permitting zones for renewables.
Sustainability and GHG criteria
To ensure that renewable energy deployment contributes meaningfully to climate goals, RED includes stringent sustainability and lifecycle GHG savings criteria, particularly for:
- Biofuels and biogas used in transport,
- Biomass for electricity and heating,
- RFNBOs such as green hydrogen and e-fuels.
Fuels must achieve minimum GHG savings compared to fossil alternatives and comply with land use, biodiversity, and feedstock sourcing standards. Only certified fuels are eligible to count toward RED targets or receive financial support.
Role in transport decarbonization
RED is the legal basis for setting renewable energy obligations in transport, including:
- Advanced biofuels made from non-food feedstocks (Annex IX Part A),
- RFNBOs, including e-kerosene, e-methanol, and hydrogen-based fuels,
- Recycled Carbon Fuels (RCFs) from non-renewable waste streams.
The directive supports national and EU-level mandates such as ReFuelEU Aviation and FuelEU Maritime, creating market demand for low-carbon and renewable transport fuels.
Implementation and monitoring
Each Member State must develop and submit National Energy and Climate Plans (NECPs) outlining how they will contribute to EU-wide targets and comply with RED obligations. The European Commission monitors progress and may propose corrective measures if targets are not met.
RED also interfaces with:
- EU Emissions Trading System (EU ETS)
- Carbon Border Adjustment Mechanism (CBAM)
- Sustainable Finance Taxonomy
- EU Hydrogen Strategy and REPowerEU
The Renewable Energy Directive is more than a policy it is a driving force for systemic transformation. By aligning sustainability, market signals, and national efforts, RED provides the legal backbone for Europe’s leadership in the global energy transition.
