With 535 votes in favour, 63 against and 53 abstentions, Parliament approved in plenary the agreement reached with the Council in December 2022. Under the agreement, member states that request additional funding based on their amended national recovery and resilience plans must include REPowerEU measures for energy saving, clean energy production, and diversification of energy supplies.

Increasing energy independence and combating energy poverty

The new rules will apply retrospectively to measures from 1 February 2022, with only a few exceptions. These measures will help combat energy poverty by providing support to vulnerable households, small and medium-sized enterprises, and micro-enterprises.

Cross-border measures, transparency, and climate goals

During negotiations, Parliament convinced EU countries to allocate at least 30% of REPowerEU expenditure to cross-border measures aimed at addressing bottlenecks in electricity transmission, distribution, and storage, as well as increasing cross-border electricity flows, even if provided by only one EU country.

The new rules also provide for the disclosure of information on the 100 final recipients of the highest funding. These rules will apply to the entire recovery and resilience plan package.

The REPowerEU measures included in national plans will be subject to the "do no significant harm" principle. However, for now, this will not apply to measures aimed at addressing the most urgent EU energy supply security issues, where the potential environmental harm is minimal and they do not jeopardise the EU's climate goals.

Funding

Parliament's negotiators managed to secure that, of the additional €20 billion in grants proposed by the Commission, €8 billion will be obtained through the front-loading of the auctioning of national emission allowances under the EU Emissions Trading System, while €12 billion will come from the Innovation Fund. Furthermore, revenue generated from the auctioning of emission allowances cannot be used for investments in fossil fuels.

Quotes

Rapporteur Siegfried Mureșan (EPP, Romania) said during the Parliament debate: "The REPowerEU plan will help us ensure affordable energy prices for citizens and businesses. It will allow us to secure energy supply and end our dependence on Russian fossil fuels. For REPowerEU to provide genuine EU added value, member states should allocate at least 30% of REPowerEU funds to cross-border projects."

Rapporteur Eider Gardiazabal Rubial (S&D, Spain) added: "The plan we have prepared will mitigate the impact of the war on the economy while promoting the green transition. An additional €20 billion will be allocated to fight energy poverty, green the energy sector, and improve our energy storage capacity. We have agreed to only very limited deviations from the 'do no significant harm' principle, as we are committed to fighting climate change and not weakening the EU's climate goals. We have also introduced greater transparency and prioritised cross-border projects."

Rapporteur Dragoș Pîslaru (Renew Europe, Romania) concluded: "We address fear with ambitious plans. This has been a difficult year for citizens, and we need sustainable solutions now, not later. Ask your governments what measures they plan to include in their national plans. We will insulate people's homes, retrain the workforce for new green jobs, and help businesses. We are also setting clear requirements in the RePowerEU programme to identify the largest recipients of EU funds. We will watch carefully and with interest how governments use these funds."

Next steps

The Recovery and Resilience Facility is a one-off emergency instrument that remains in force until 31 August 2026. The new regulation on the inclusion of REPowerEU measures in national recovery plans will enter into force on the day following its publication in the Official Journal of the European Union.