Infringement procedures for the renewable energy directive and the CSRD

The European Commission published on 26 September 2024 that in its regular package of infringement decisions, it pursues legal action against Member States for failing to comply with their obligations under EU law. These decisions, covering various sectors and EU policy areas, aim to ensure the proper application of EU law for the benefit of citizens and businesses. The provisions of the revised Renewable Energy Directive (RED) and the Corporate Sustainability Reporting Directive (CSRD) have not been properly transposed by a wide range of Member States.

The European Commission stated that it decided to open infringement procedures against 26 Member States (including Hungary) for failing to fully transpose into national law the provisions of the RED. The RED entered into force in November 2023 and certain provisions had to be transposed by 1 July 2024. These provisions include measures to simplify and accelerate permitting procedures both for renewable energy projects and for the necessary infrastructure projects to integrate the additional renewable energy into the electricity system. They also include clear time limits for permit-granting procedures targeted to specific technologies or types of projects, the strengthening of the role of the single contact point for applications and the presumption that renewable energy projects and the related grid infrastructure are of overriding public interest.

The European Commission also decided to open infringement procedures against 17 Member States for failing to notify their national measures fully transposing the provisions of the directives as amended by the CSRD. The CSRD requires large companies and listed companies (excluding micro-undertakings) to disclose information on the social and environmental risks they face, and on how their activities impact people and the environment. The new sustainability reporting rules imposed by the CSRD apply from financial years beginning on or after 1 January 2024. The European Commission highlighted that in the absence of transposition of these provisions, it will not be possible to achieve the necessary level of harmonisation of sustainability reporting in the EU and investors will not be in a position to take into account the sustainability performance of companies when making investment decisions. The 17 Member States have not yet notified full transposition of the provisions of the CSRD, for which the deadline expired on 6 July 2024.

The European Commission drew attention to the fact that the concerned Member States have two months to respond and complete their transposition. In the absence of a satisfactory response, the Commission may decide to issue a reasoned opinion.