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1. In accordance with the energy efficiency first principle, Member States shall ensure that energy efficiency solutions, including demand-side resources and system flexibilities, are assessed in planning, policy and major investment decisions of a value of more than EUR 100 000 000 each or EUR 175 000 000 for transport infrastructure projects, relating to the following sectors:

(a) energy systems; and (b) non-energy sectors, where those sectors have an impact on energy consumption and energy efficiency such as buildings, transport, water, information and communications technology (ICT), agriculture and financial sectors.

2. By 11 October 2027, the Commission shall carry out an assessment of the thresholds set out in paragraph 1, with the aim of downward revision, taking into account possible developments in the economy and in the energy market. The Commission shall, by 11 October 2028, submit a report to the European Parliament and to the Council, followed, where appropriate, by legislative proposals.

3. In applying this Article, Member States are encouraged to take into account Commission Recommendation (EU) 2021/1749 .

4. Member States shall ensure that the competent authorities monitor the application of the energy efficiency first principle, including, where appropriate, sector integration and cross-sectoral impacts, where policy, planning and investment decisions are subject to approval and monitoring requirements.

5. In applying the energy efficiency first principle, Member States shall:

(a) promote and, where cost-benefit analyses are required, ensure the application of, and make publicly available, cost-benefit methodologies that allow proper assessment of the wider benefits of energy efficiency solutions where appropriate, taking into account the entire life cycle and long-term perspective, system and cost efficiency, security of supply and quantification from the societal, health, economic and climate neutrality perspectives, sustainability and circular economy principles in transition to climate neutrality;

(b) address the impact on energy poverty;

(c) identify an entity or entities responsible for monitoring the application of the energy efficiency first principle and the impacts of regulatory frameworks, including financial regulations, planning, policy and the major investment decisions referred to in paragraph 1 on energy consumption, energy efficiency and energy systems;

(d) report to the Commission, as part of their integrated national energy and climate progress reports submitted pursuant to Article 17 of Regulation (EU) 2018/1999, on how the energy efficiency first principle was taken into account in the national and, where applicable, regional and local planning, policy and major investment decisions related to the national and regional energy systems including at least the following:

(i) an assessment of the application and benefits of the energy efficiency first principle in energy systems, in particular in relation to energy consumption;

(ii) a list of actions taken to remove any unnecessary regulatory or non-regulatory barriers to the implementation of the energy efficiency first principle and of demand-side solutions, including through the identification of national legislation and measures that are contrary to the energy efficiency first principle.

6. By 11 April 2024, the Commission shall adopt guidelines providing a common general framework including supervision, the monitoring and reporting procedure, which Member States may use to design the cost-benefit methodologies referred to in paragraph 5, point (a), for the purpose of comparability, while leaving the possibility for Member States to adapt to national and local circumstances.