THE CONSTITUTION OF RENEWABLE ENERGY: THE EU RED III REGULATION

21st-century energy policies are a field of transformation, redefining not only the sustainability of economic production but also environmental balance, strategic autonomy, and social well-being. For the European Union (EU), energy is no longer a mere economic input but the core element of an integrated climate, industrial, and digitalization strategy. The most important regulation shaping the legal foundations of this transformation is the Renewable Energy Directive (EU) 2023/2413, also known as RED III, adopted in 2023 and entering into force on November 20, 2023. This directive is a revision of the 2018 RED II and provides a holistic framework aimed at fundamentally transforming the EU’s energy system.

In this respect, RED III is not merely an energy regulation, but a policy document that can be described as the “constitution of renewable energy.” RED III was prepared based on Article 194 of the Treaty on the Functioning of the European Union. This article includes issues such as energy supply security, energy efficiency, energy market integration, and the promotion of renewable resources within the EU’s jurisdiction. While not directly applicable in member states, the Directive requires all countries to adapt their national legislation to it within a certain period. This aims both to create a holistic energy vision within the Union and to ensure harmonization between national energy systems. This national transition process, expected to be completed by May 21, 2025, is directly linked to the EU’s goal of a climate-neutral economy.

One of the key factors that accelerated the emergence of RED III was the energy crisis that shook Europe in 2022. Natural gas supply disruptions and energy price fluctuations following the Russo-Ukrainian war painfully exposed the EU’s dependence on fossil fuels. This crisis led the EU to rapidly implement the “REPowerEU” and “Fit for 55” plans. Thus, increasing renewable energy investments has become a strategic imperative. RED III has been shaped as the legal basis for these policies. In this respect, the directive is not only an environmental document but also the backbone of Europe’s energy security strategy.

RED III mandates increasing the share of renewable energy sources in the total energy mix to at least 42.5% across the EU by 2030; it also encourages reaching 45% as an “optional target.” This target encompasses electricity generation, as well as transportation, industry, and heating and cooling. Thus, renewable energy becomes not just a component of the energy system but also its mainstream. The directive specifically envisions the rapid increase in the use of renewable energy in industry and transportation. A 29% target has been set for the renewable energy share in transportation, while a reduction in greenhouse gas intensity of at least 14.5% has been envisaged. In the industrial sector, the goal is to provide at least 42% of energy consumption from renewable sources. These binding targets are fully compatible with the EU’s 55% emissions reduction target set by the 2030 climate law.

The Directive also introduces a new governance model for energy management. Member states’ performance is monitored annually by the Commission through National Energy and Climate Plans (NECPs). This system creates a mechanism that fosters both competition and solidarity among countries. In line with the EU’s energy union goal, all nations are expected to follow a common decarbonization roadmap. In terms of governance, harmonizing RED III with other regulations such as the Energy Efficiency Directive (2023/1791) and the Emission Trading System Reform (2023/959) transforms energy policy into a holistic “climate governance” system.

When examining the technical and economic dimensions of RED III, innovative mechanisms are introduced in every area, from electricity generation and heating and cooling to transportation fuels and industrial processes. In the electricity sector, permitting processes have been significantly simplified, and single-center digital application systems, known as “one-stop shops,” have been made mandatory for investors. This has reduced bureaucratic delays for renewable energy projects. Furthermore, member countries can expedite environmental assessment processes in certain geographic areas by designating them as “go-to areas.” This regulation signals a modern management model that balances environmental protection principles with investment speed.

The traceability of green certificates in electricity generation is guaranteed by the “Guarantees of Origin” system. Consumers can verify the source of the electricity they use and make informed choices to reduce their carbon footprint. This system also works in integration with carbon markets and green financing mechanisms.

RED III’s provisions for the heating and cooling sector address the energy return It strengthens an often-neglected area in the overall economy. Approximately half of the EU’s total energy consumption comes from this sector. Therefore, the directive mandates an annual increase in renewable energy use in heating and cooling systems by at least 1.1%. It specifically calls for the expansion of sources such as geothermal, biomass, and solar thermal energy. In this context, it is strategically important for member states to decarbonize their district heating infrastructures and work in collaboration with local authorities.

The transport sector is of particular importance in RED III. The EU aims to expand renewable fuels instead of fossil fuel-dependent road and maritime transport. To this end, alternatives such as biofuels and advanced biomethane, as well as green hydrogen and renewable-based synthetic fuels called RFNBOs (Renewable Fuels of Non-Biological Origin), have been highlighted. These regulations are implemented in parallel with sectoral regulations such as FuelEU Maritime and ReFuelEU Aviation. Thus, the EU advances its carbon neutrality target across all subsectors of transport under a common framework. RED III lies at the heart of the industrial energy transition. Since a significant portion of the energy used in industry comes from fossil fuels, the transition to renewable energy in this area is not only a climate goal but also a matter of strategic competitiveness. The EU mandates that the majority of electricity, heating, and hydrogen used in industrial processes come from renewable sources. The Directive specifically encourages the use of renewable hydrogen in industry. The goal is for at least 42% of the hydrogen supplied to industry to be of renewable origin by 2030. The “well-to-gate” methodology has been adopted for calculating hydrogen’s carbon footprint. This method ensures standardization by measuring emissions at all stages, from production to consumption.

Renewable hydrogen is also considered a strategic tool to reduce Europe’s external energy dependency. In this context, the Commission supports production partnerships in Africa and the Middle East and is creating new supply chains called “Green Hydrogen Corridors.” Turkey, due to its geographical location, is an important strategic partner in the eastern leg of these corridors. In terms of economic impact, RED III reduces the EU’s dependence on energy imports while simultaneously creating new employment opportunities. According to the European Commission’s impact analysis, direct employment in the renewable energy sector will reach 3.5 million by 2030. The reduction in fossil fuel imports has the potential to reduce the annual foreign trade deficit of €140 billion. However, it is also clear that the transformation process will entail high investment costs in the short term. Investments in battery storage, grid infrastructure, and green hydrogen, in particular, require significant capital. However, in the long run, these investments will help stabilize energy prices and strengthen supply security.

The social impacts of RED III should not be overlooked. Temporary increases in energy prices can put pressure on low-income households. Therefore, the EU aims to equitably share the costs of the energy transition through the Social Climate Fund. This mechanism stands out as a critical complementary policy for reducing energy poverty and strengthening social acceptance.

For Turkey, RED III is not only an adaptation obligation but also a strategic opportunity. Turkey currently generates approximately 55% of its electricity from renewable sources. However, participation in integrated carbon and energy markets with the EU requires regulatory alignment. Turkey’s YEKA (Renewable Energy Resource Area) model is highly similar to the “go-to area” approach in RED III. This could facilitate administrative alignment. Furthermore, increasing the use of green hydrogen in industry would reduce Turkey’s risk of carbon leakage in the EU market. Turkey’s 2024 Hydrogen Strategy is highly aligned with RED III, but carbon accounting and certification systems need to be brought to EU standards. Furthermore, the YEK-G guarantee system, which entered into force in Turkey in 2021, shares a similar logic with the EU’s “Guarantees of Origin” model; however, establishing a mutual recognition mechanism is crucial.

RED III’s strengths include offering a holistic energy vision, streamlining administrative processes, creating an investor-friendly environment, and being fully aligned with climate goals. However, certain challenges also exist.

Differences in infrastructure, financing, and technological capacity among member states could slow down implementation. Furthermore, external dependence on critical raw materials (e.g., battery minerals, photovoltaic cell components) poses a sustainability risk. From a social perspective, the equitable distribution of transformation costs and the support of low-income groups are crucial. Protection is also among the issues that require attention.

In conclusion, RED III is the most ambitious and comprehensive transformation document in the European Union’s energy history. This regulation places renewable energy beyond being merely an element of environmental policies, and at the center of industrial competitiveness, energy security, and social justice. If the 2030 targets are achieved, the share of renewable resources in Europe’s energy system will surpass fossil fuels for the first time. For EU candidate countries like Turkey, RED III is both a compliance obligation and a green transformation opportunity. This process will accelerate Turkey’s integration into EU energy markets, strengthen export competitiveness, and support its vision of sustainable development.

In conclusion, RED III is not just an energy directive; it is a vision document shaping Europe’s future. By addressing energy alongside climate policy, economic prosperity, and digital transformation, this regulation defines the new paradigm of energy governance on a global scale. Therefore, it is rightly referred to as the “Constitution of Renewable Energy” in European academic and political circles.

Sources

• European Commission (2023a). Directive (EU) 2023/2413 on the promotion of the use of energy from renewable sources (RED III). EUR-Lex.
• European Parliament (2023). Renewable Energy Directive III – Legislative Briefing. Brussels.
• European Council (2022). REPowerEU Plan. Official Journal of the European Union.
• Energy Community Secretariat (2023). Implementation Status of the Renewable Energy Directive. Vienna.
• European Environmental Agency (2024). Renewable Energy in Europe: Progress Report. Copenhagen.
• International Energy Agency (2024). Critical Minerals and the Energy Transition. Paris.
• EUR-Lex (2023). Directive (EU) 2023/2413 – Legal Text and Recitals.
• European Commission (2023b). Impact Assessment Report on RED III Implementation. Brussels.
• S&P Global Commodity Insights (2023). EU Adopts Renewable Energy Directive Targeting 42.5% Share in 2030.
• Climate Action Network Europe (2023). Revision of the Renewable Energy Directive: Opportunities and Challenges.
• European Hydrogen Observatory (2024). Hydrogen Market Development and RED III Compliance.