Unanimous objection due to lack of competency coverage clause
Vienna (PK) – The government parties’ aim to introduce a mandatory green gas quota for gas suppliers has already failed in the National Council due to the lack of a two-thirds majority. Since neither the SPÖ nor the FPÖ gave their consent to the necessary constitutional provisions, they had to be deleted from the so-called Renewable Gas Act. Today is Federal Council now also put on the brakes with regard to the remaining trunk law. The Federal Councilors voted unanimously to send this back to the National Council. Due to the lack of a competency coverage clause, the law could not be implemented as intended, the objection was justified.
However, the Made in Europe bonus for photovoltaic systems and one have passed the Federal Council Amendment to the Waste Management Act. This contains more detailed provisions regarding the one-way deposit for certain beverage containers such as plastic bottles and aluminum cans, which will apply from 2025.
Maria Fischer (SPÖ/St) was sworn in as a new member of the Federal Council: She has taken over the mandate from Elisabeth Grossmann, who has moved to the European Parliament.
Green gas quota should make it easier to phase out Russian gas and protect the climate
With the unanimous objection to this Renewable Gas Act the Federal Council followed a corresponding recommendation from its Economic Committee, which it had made based on a proposal from the coalition parties. The entrustment of E-Control as a regulatory authority is no longer covered by constitutional law due to the removal of the constitutional provisions and therefore cannot come into force in this form, according to the reasons for the objection, among other things.
The aim of the Renewable Gas Act is to reduce Austria’s dependence on fossil natural gas through renewable gas produced domestically and thus also to improve security of supply. In this sense, it contains a target path for gradually increasing the green gas quota, although some changes were made in the plenary session of the National Council compared to the original draft. On the initiative of the ÖVP and the Greens, not only was the target quota of renewable gas for 2030 reduced from 7.5 terawatt hours (TWh) to 6.5 TWh, but also the compensation amount provided if the quota was not met. The law also sets maximum limits for the use of grain and corn as fuel to produce biogas. From 2035, this type of biogas should no longer be counted towards the green gas quota.
SPÖ fears cost increases for households
However, the SPÖ considers the improvements made to be insufficient. Federal Councilor Bettina Lancaster (SPÖ/Upper Austria) claimed that her party shared the goals of the law, but the path chosen was the wrong one. In your opinion, it would make more sense to introduce a market premium model – similar to the one used to promote green electricity. The quota regulation could lead to “excess profits” being produced on the one hand and, on the other hand, high costs for consumers and small businesses, she warned. Lancaster signaled his approval of the proposed legal objection. It makes no sense to “push through” a truncated law, she explained.
ÖVP and Greens: Law would bring many advantages
In contrast, Adi Gross (Greens/V) expects only minor cost increases “if at all” through mandatory biogas quotas. Biogas is currently more expensive than gas from Russia, he admitted, but it is available regionally and has numerous other advantages. This means that there is no waste left, but rather valuable fertilizer. He is convinced that the most expensive thing is to remain dependent on fossil gas. Ultimately, price increases and enormous price fluctuations are to be expected. According to him, numerous subsidies are also planned to reduce the costs “for the ramp-up”.
In general, Gross emphasized that the present law would not only be a central building block for phasing out Russian gas, but would also contribute to greater security of supply, planning security and climate protection. Unlike the Green Electricity Act, gas suppliers would have to actively strive to procure green gas. He also sees a great opportunity for agriculture and the food processing industry. A lot of work had been invested in the law and long discussions had been held with everyone affected, explained Gross, and in this sense he regretted that there was ultimately no consensus with the SPÖ.
The Lower Austrian ÖVP Federal Councilor Viktoria Hutter accused the SPÖ of stoking fears of an increase in gas prices and food waste without any appropriate basis. The FPÖ, in turn, is probably concerned with supporting its “Russian friends,” she suspects. According to Hutter, in view of climate change, it would be important to replace fossil natural gas with biogas. It also makes sense that money does not flow abroad. The Federal Councilor also expects a biogas quota to strengthen domestic agriculture.
FPÖ sees too much ideology and too little “common sense”
There is “too much ideology and too little economics and common sense” in the law, said Michael Bernard (FPÖ/NÖ), justifying the Freedom Party’s rejection of the Renewable Gas Act. He also spoke of a “very unimaginative” funding model with excessive funding. Like the SPÖ, he would consider a market premium model to be more appropriate. Those who are unable to obtain or produce renewable gas would be punished. Bernard also fears that existing facilities will have to be dismantled. His Tyrolean parliamentary group colleague Christoph Steiner expressed the suspicion that Environment Minister Leonore Gewessler wanted to deliberately increase the price of gas for ideological reasons, and overall sees a “botch” in the approach.
NEOS would have supported mandatory biogas quotas
The NEOS had approved the proposed law, even if the quota regulation was not the best solution, emphasized Manuela-Anna Sumah-Vospernik (NEOS/W). In her opinion, an auction model could have been considered. The Federal Councilor claimed that the law would reduce dependence on Russian gas. She also referred to the aspect of security of supply and the reduction of CO2 emissions. She also viewed the fact that cost reductions in production should have been passed on to consumers as positive.
Gewessler hopes for consensus in the second attempt
Environment Minister Leonore Gewessler said it was regrettable that it had not been possible to get the law “over the finish line”. With the amendment proposal in the National Council, they had “twisted some key screws” in order to get the opposition to agree, she emphasized. The SPÖ has been accommodated on many points, such as an accelerated phase-out of the use of corn and grain in biogas production. However, there are some existing systems on which jobs and local added value depend, Gewessler pointed out. The exit must be achieved without bankruptcies or jeopardizing jobs. New plants are only allowed to recycle waste materials anyway.
The minister also defended the quota regulation: Unlike the market premium model, the gas suppliers would be held responsible and the costs would “not be passed on to many people”. She emphasized that she had not yet given up hope that a broad majority could be found for the law in the second attempt.
As a result of the Federal Council’s objection, the National Council now has the opportunity to revise the law or make a decision to persist. The latter is rather unlikely, however, since the objection was initiated by the ÖVP and the Greens. If the National Council does not address the objection before the elections on September 29th, the original legislative resolution will be invalid, meaning the law will never come into force.
“Made in Europe” bonus for photovoltaic systems
The amendment to the Renewable Energy Expansion Act received broad approval in the Federal Council. It allows Environment Minister Leonore Gewessler to issue a regulation – in agreement with the Economics Minister – to set a surcharge of 20% on investment subsidies for larger photovoltaic systems and electricity storage systems. The prerequisite for this is that the system contains technical components of European origin. Only the NEOS voted against the law. (Continuation of the Federal Council) gs
NOTE: Meetings of the National Council and the Federal Council can also be followed via live stream and are available as video-on-demand in the Parliament’s media library available.
Questions & Contact:
Press service of the Parliamentary Directorate
Parliamentary correspondence
Tel. +43 1 40110/2272
press service@parlament.gv.at
http://www.parlament.gv.at
www.facebook.com/OeParl
www.twitter.com/oeparl