WHAT IS IT

The Energy Community’s climate and governance activities rest on two major legal pillars:

• the Governance Regulation, which sets the rules for integrated mid- and long-term energy and climate planning as well as regular progress monitoring; and
• the framework for carbon pricing through the ETS Directive and the related acts on monitoring, reporting, verification, and accreditation (MRVA).

WHY IT MATTERS

Establishing a stable and predictable regulatory path towards a decarbonised energy sector is key to ensuring a just transition and advancing alignment with EU climate and energy policies, thereby supporting the EU accession process. The aging, fossil-intensive generation fleet in some Contracting Parties will require significant investment and structural changes in the currently heavily regulated domestic markets, including reform of energy subsidies.  

By defining 2030 targets and the policies and measures needed to reach them, both citizens and businesses can better anticipate future costs and plan adaptation actions. To channel investment into technologies that meet both energy and climate goals, a clear carbon price is essential—one that reflects the true costs of different technological solutions. For effective implementation, Contracting Parties must also establish mechanisms for collecting reliable climate and energy data, both at the national level and directly from emitters.