Energy Efficency Directive (EED)

The Energy Efficiency Directive (EED) is an EU-wide initiative aimed at improving energy efficiency across all sectors of society. The recast 2023 EED strengthens previous measures and sets targets for improving energy efficiency across the EU. Through promoting the more efficient use of energy, it supports the transition to a climate neutral Europe, reduces carbon emissions and lowers energy bills for citizens and businesses.

The 2023 Recast Energy Efficiency Directive (EED) is a core component of the European Union's "Fit for 55" package, aimed at advancing the EU's climate and energy objectives through enhanced energy efficiency measures. The recast EED was approved via Qualified Majority Voting (QMV) and formally came into force in October 2023. The transposition deadline for the majority of the EED is October 2025.

The Enhanced SME Test is a policy assessment tool designed to ensure that the interests and capacities of small and medium-sized enterprises (SMEs) are adequately considered during the development of new polices, legislation (primary or secondary), and regulatory compliance requirements. Due to its potential effects on SMEs, the EED was subject to an Enhanced SME Test, which was conducted by the Department of Climate, Energy and the Environment (DCEE).

The Department of Climate, Energy and the Environment (DCEE) conducted a consultation process with the representative bodies of SMEs in Ireland for the purposes of the Enhanced SME Test for the EED. The EED SME Test Report, available below, sets out the stakeholder feedback received on aspects of the implementation of the EED, and steps taken by DCEE to mitigate any negative outcomes for SMEs.

Due to the complexity and size of the EED, the consultation under the SME test was completed directly with the representative bodies of SMEs in Ireland.