A 40 percent proportion of funds to be raised at carbon emission rights auctions will be used to finance the implementation of energy efficiency policies demanded by an EU directive, according to an energy ministry plan.

As for the larger 60 percent share to be raised at the carbon rights auctions, the energy ministry has informed RAE, the Regulatory Authority for Energy, of its plan to legislate injecting this amount into the renewable enery sources (RES) special account.

In doing so, the energy ministry plans to avoid increasing a RES sector-supporting ETMEAR surcharge imposed on electricity bills and decrease it instead.

The energy efficiency plan demanded by the EU directive, to be supported by the 40 percent share of carbon emission rights auction revenues, has already been legislated and must be implemented.

A new agency will be established for the energy efficiency initiative as the majority of funds injected into the country’s green account end up being redirected to the state to help service national debt payments.

The EU energy efficiency directive includes demands such as upgrading three percent of public buildings per year to eco-friendly standards. Public buildings that do not meet environmental standards set in 2013 are all subject to the directive’s demands.