The EU’s energy policy aims to ensure a sustainable, competitive, and secure energy supply. The policy has developed significantly since the EEA Agreement entered into force in 1994, and the EU’s regulatory framework for the internal energy market has over time increased in scope and level of detail.
The regulatory framework affects Norwegian stakeholders directly through the EEA Agreement, but also indirectly through its effects on the European energy market - our most important export market for oil, gas, and electricity. Norwegian energy producers need stable and predictable framework conditions. It is therefore of great importance to follow the development of new directives, regulations, and decisions in the energy field within the EU.
When the EEA Agreement was negotiated in the early 1990s, nine legal acts (regulations and directives) had been adopted in the energy field and were incorporated into the EEA Agreement. Today, the EEA Agreement includes more than 80 legal acts in the energy field.
Several legal acts are under consideration for incorporation into the EEA Agreement. The EU’s energy regulations are amended and updated in light of the energy situation and energy policy objectives. It is therefore important to follow regulatory developments in the EU closely.
The EU’s energy policy extends more broadly than what is covered by the EEA Agreement. The Treaty of Lisbon of 2009 introduced a separate provision on energy. Article 194 sets out objectives related to the functioning of the energy market, security of supply, energy efficiency, renewable energy, and infrastructure. At the same time, it establishes that the Member States have the right to decide for themselves on resource utilisation and the energy mix.
The EU's Energy Union
In 2015, the EU launched the consept Energy Union as a political framework for the objectives and instruments of the EU’s common energy policy. The Energy Union covers five dimensions: security of supply, the internal energy market, energy efficiency, decarbonisation, as well as research, innovation, and development.
The EU’s energy policy is under continuous development. In 2018–2019 a legislative package known as the Clean Energy for All Europeans Package was introduced. It consisted of revisions to the Renewable Energy Directive, the Energy Performance of Buildings Directive, the Energy Efficiency Directive, and the market framework, the latter often referred to as the fourth energy market package.
The market framework consists of the Electricity Market Directive, the Electricity Regulation, the ACER Regulation, and a regulation on risk preparedness in the electricity sector. In addition to the seven legal acts mentioned above, the Clean Energy package includes a new Governance Regulation. This regulation establishes a system for planning and reporting in the fields of energy and climate.
In 2021, the EU enacted into law the goal of reducing its own greenhouse gas emissions by at least 55 per cent by 2030 compared with 1990 levels. Later the same year, the European Commission presented a number of proposals intended to help the EU reach that target. The package was called Fit for 55. This package provided for revisions to the Renewable Energy Directive, the Energy Efficiency Directive, and the Energy Performance of Buildings Directive. It also proposed new rules to reduce methane emissions, as well as rules to facilitate hydrogen and decarbonised gas.
Following Russia’s invasion of Ukraine in 2022, the level of ambition was increased further. The Commission proposed an even higher renewables target, new measures for faster licensing procedures, as well as other measures. These proposals formed part of the REPowerEU package from 2022, which was incorporated into several of the legislative proposals from the Fit for 55 package.
In 2025, the EU adopted new climate targets for 2040. The EU’s net emissions are to be reduced by 90 per cent by 2040 compared with 1990 levels.
Incorporation of Energy Regulations into the EEA Agreement
The EEA Agreement makes the EFTA countries Norway, Iceland, and Liechtenstein part of the EU’s internal market. The internal market is based on common rules. When the EU adopts new rules related to the internal market, we are therefore obliged to incorporate the legislation into the EEA Agreement on an ongoing basis.
The EEA Agreement gives Norwegian stakeholders a home market comprising more than 450 million inhabitants. Norway, Iceland, and Liechtenstein may send national experts to work in the Commission and have a formal right to participate in policymaking at an early stage. As in the EU, the EEA countries retain full sovereignty over their own natural resources.
EU energy rules are incorporated into Annex IV to the EEA Agreement. This includes the market framework for electricity and gas from the third energy market package, the CCS Directive, the Licensing Directive as well as other legal acts.
The Renewable Energy Directive, the Energy Performance of Buildings Directive, and the Energy Efficiency Directive from the Clean Energy package were incorporated into the EEA Agreement in July 2025. In addition, much of the regulatory framework in the EEA Agreement consists of rules on sustainable product design, or ecodesign, and energy labelling of products such as appliances and electronic displays.
Common Rules
When directives and regulations are incorporated into the EEA Agreement, there is a certain degree of latitude for EEA adaptations to the individual legal acts. A number of such adaptations were made when the EU’s third energy market package was incorporated into the EEA Agreement. In general, proposals for necessary adaptations are developed in cooperation between the three EEA/EFTA countries, Norway, Iceland, and Liechtenstein, and discussed with the EU side.
The purpose of the EEA Agreement is to establish a uniform and homogeneous economic area of cooperation, with equal conditions of competition and compliance with the same rules. A precondition for this is that work on implementing EEA-relevant legislation in the EFTA countries is carried out effectively. Another aspect of the EEA Agreement is that Norway must comply with the EU’s rules on state aid and competition. This requires good dialogue with the EFTA Surveillance Authority, ESA.
EEA cooperation is based on what was originally a cooperation agreement between the EU’s predecessor, the EC, and EFTA, the European Free Trade Association. The EEA Agreement establishes an institutional framework with two parallel pillars. One pillar represents the EU side and the other the EFTA side. The two pillars cooperate through common EEA bodies. This two-pillar structure reflects the fact that the EEA Agreement is an intergovernmental agreement, in which both parties, namely the EU and the EEA/EFTA states, must approve the incorporation of new legislation into the Agreement.
When the EEA Agreement was signed on 2 May 1992, EFTA consisted of seven Member States and the EC of twelve. When the agreement entered into force on 1 January 1994, Austria, Sweden, and Finland had in the meantime become members of the EU. The EU had therefore expanded to 15 states, while EFTA had been reduced to four: Norway, Iceland, Switzerland, and Liechtenstein, which acceded to the EEA Agreement on 1 May 1995. Switzerland is not a member of the EEA, but has its own bilateral agreements with the EU in a number of sectors.
The EFTA Secretariat continuously reviews legislative proposals drawn up in the EU. Proposals considered to fall within the scope of the EEA Agreement are sent to the EFTA states for assessment.
In Norway, the Instructions for Official Studies and Reports set the framework for the further processing of legislative proposals from the Commission. In cases where a proposal may have significant implications for Norway, it must be circulated for consultation by the responsible ministry.
An EEA memorandum must be prepared for all legal acts under consideration for incorporation into the EEA Agreement. The responsible ministry assesses whether the legal act is EEA-relevant. Affected ministries must be involved, and important EEA matters must be considered by the Government. If the legislative proposal is expected to have significant beneficial or cost effects, a socioeconomic analysis must be carried out.
EU law differs from EEA law in that EU bodies can make majority decisions that become binding for all member states (supranationalism). Under the EEA Agreement, directives and regulations must be incorporated through separate decisions of the EEA Joint Committee in order to apply in the EEA area. Furthermore, they must be implemented in national law. In connection with the process, it may be necessary to make specific adaptations, known as EEA adaptations. Both the EFTA countries and the EU must agree to such adaptations. This follows from Article 93 of the EEA Agreement. Once an EEA Joint Committee decision has been adopted, the legislation becomes part of the cooperation under the EEA Agreement and is binding on the EFTA countries.
Pursuant to Article 26, second paragraph, of the Norwegian Constitution, the Parliament - Storting - must consent to the conclusion of international agreements of particularly great importance, as well as agreements that require legislative amendment or other decision by the Storting. A decision by the EEA Joint Committee to incorporate legislation into the EEA Agreement may be an example of such an agreement. In that case, a constitutional reservation is entered in the EEA Joint Committee decision, which means that it will not enter into force until the Storting has given its consent. See Article 103 of the EEA Agreement. In such cases, a proposition for consent must be prepared and submitted to the Storting. During the process, it may also be appropriate to inform the Storting, through its European Consultative Committee, about processes relating to EU legislation intended to be incorporated into the EEA Agreement.
Norwegian law must be brought into conformity with the EU legislation and the EEA Joint Committee decision. The necessary regulatory amendments must be identified, and a consultation paper must be prepared. Any legislative and regulatory amendments must then be adopted.
Research
The EEA Agreement has given Norwegian stakeholders opportunities to participate in several research and cooperation programmes. This includes Norway’s participation in the research cooperation programme Horizon Europe.
Participation in Decision-Making
The EEA Agreement gives Norway the right to participate in the decision-making process at an early stage. Our experts take part when new legislation and new initiatives are discussed in expert groups under the European Commission. The Norwegian Energy Regulatory Authority, RME, participates in the Agency for the Cooperation of Energy Regulators, ACER.
Organisation of Norway's Energy Cooperation with the EU
Norway has close cooperation with the EU in the energy field and participates in the EU’s internal energy market through the EEA Agreement. The Ministry is in close contact with the European Commission, including a dedicated energy dialogue between the Norwegian minister of energy and the EU’s commissioner for energy.
Norwegian energy producers need stable and predictable framework conditions. It is therefore of great importance to follow the development of new directives, regulations, and decisions in the energy field within the EU.
- Read more about the organisation of Norway’s energy cooperation with the EU here: Norway’s energy cooperation with the EU – regjeringen.no.
- Read more about Norway’s cooperation with the EU here: https://www.regjeringen.no/no/tema/europapolitikk/id1151/Europe – regjeringen.no.